[Senate Report 106-257]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 487
106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-257

======================================================================



 
 THE TECHNICAL ASSISTANCE, TRADE PROMOTION, AND ANTI-CORRUPTION ACT OF 
                                  2000

                                _______
                                

                 April 7, 2000.--Ordered to be printed

                                _______
                                

          Mr. Helms, from the Committee on Foreign Relations,
                        submitted the following

                              R E P O R T

                         [To accompany S. 2382]

    The Committee on Foreign Relations, having had under 
consideration an original bill to authorize appropriations for 
technical assistance for fiscal year 2001, to promote trade and 
anti-corruption measures, and for other purposes, reports 
favorably thereon and recommends that the bill do pass.

                                CONTENTS

                                                                   Page

  I. Committee Action.................................................1
 II. Summary of Funds.................................................4
III. Section-by-Section Analysis......................................4
 IV. Cost Estimate...................................................56
  V. Evaluation of Regulatory Impact.................................64
 VI. Changes in Existing Law.........................................65

                          I. Committee Action

    The Committee on Foreign Relations held ten hearings in 
1999 and early 2000 on various elements of the Technical 
Assistance, Trade Promotion, and Anti-Corruption Act of 2000.
    On February 8, 2000, the Committee received testimony from 
Secretary of State Madeleine Albright on the Administration's 
fiscal year 2001 foreign affairs budget request.
    On February 10, 2000, the Committee received testimony from 
Agency for International Development Administrator, Brady 
Anderson, on the Administration's fiscal year 2001 foreign 
assistance budget request.
    On May 11, 1999, the Committee received testimony on U.S. 
sanctions policy from Dan Glickman, Secretary of Agriculture, 
William Reinsch, Under Secretary of Commerce for Export 
Administration, Gary Hall, President of the Kansas Farm Bureau, 
Max Thornsberry, President of the Missouri Cattlemen Beef 
Association, Mike Yost, President of the American Soybean 
Association, and Robert W. Kohlmeyer, President of World 
Perspective. On July 1, 1999, the Committee held another 
hearing on sanctions where Stuart E. Eizenstat, Under Secretary 
of State for Economic, Business and Agriculture Affairs 
testified. On July 21, 1999, the Committee received testimony 
from Senators Lugar, Dodd, Hagel, and Ashcroft on various 
legislative initiatives addressing sanctions reform.
    On February 24, 2000 the Subcommittee on African Affairs 
held a hearing on the HIV/AIDS crisis in Africa. The following 
people offered testimony at that hearing: Senators Kerry, 
Boxer, Durbin, Smith, Surgeon General David Satcher, Director 
of National AIDS Policy, Sandra Thurman, Jeffrey Sachs, 
Director of the Harvard Institute for International 
Development, Harvey E. Bale, Jr., Director of the General 
International Federation of Pharmaceutical Manufactures, Peter 
Lurie, Deputy Director of Public Citizens Health Research 
Group, Father Angelo S'Agostino, Director of Nyumbani Orphanage 
and Franklin Graham, President of Samaritan's Purse.
    On February 29, 2000, the Committee received testimony from 
Treasury Secretary Larry Summers and former Secretary of State 
and Secretary of the Treasury, George Shultz, on the 
Administration's fiscal year 2001 budget request for 
international financial institutions and its proposal to 
forgive debt for poor countries.
    On April 20, 1999, the Committee received testimony from 
Secretary of State Madeleine Albright on the war in Kosovo. On 
July 29, 1999, the Subcommittee on Europe held a hearing on the 
prospects for democracy in Yugoslavia. Testimony was received 
from the following people: Robert S. Gelbard, Special 
Representative of the President and the Secretary of State for 
Implementation of the Dayton Peace Accords, James W. Pardew, 
Jr., Deputy Special Advisor to the President and the Secretary 
of State for Kosovo and Implementation of the Dayton Peace 
Accords, Sonja Biserko, Chairman of the Helsinki Commission for 
Human Rights in Serbia, Father Irinej Dobrijevic, Executive 
Director of External Affairs of the Serbian Orthodox Church, 
John Fox, Director of the Washington Office of the Open Society 
Institute, and James Hooper, Executive Director of the Balkan 
Action Council. On October 6, 1999, the Committee received 
testimony from Zbigniew Brzezinski, former National Security 
Advisor, Ambassador William Taft IV, former Ambassador to the 
North Atlantic Treaty Organization, and Eliot Cohen, Director 
of Strategic Studies at Johns Hopkins University's Paul H. 
Nitze School of Advanced International Studies (SAIS) on the 
conduct of the NATO air campaign in Yugoslavia.
    The Committee considered the Technical Assistance, Trade 
Promotion, and Anti-Corruption Act on March 23, 2000.

    During Committee consideration of the bill, the following 
recorded votes were taken:

          An amendment by Senator Lugar regarding sanctions. 
        The amendment was defeated by a vote of 8-10. Ayes: 
        Lugar, Hagel, Smith, Grams, Thomas, Frist, Chafee, and 
        Dodd. Nays: Helms, Brownback, Ashcroft, Biden, 
        Sarbanes, Kerry, Feingold, Wellstone, Boxer, and 
        Torricelli.

          An amendment by Senator Dodd striking the provision 
        abolishing the Inter-American Foundation in Title II of 
        the Chairman's mark. The amendment was approved by a 
        vote of 10-8. Ayes: Lugar, Brownback, Biden, Sarbanes, 
        Dodd, Kerry, Feingold, Wellstone, Boxer, and 
        Torricelli. Nays: Helms, Hagel, Smith, Grams, Thomas, 
        Ashcroft, Frist, and Chafee.

          An amendment by Senator Sarbanes to delete Section 
        774 of the Chairman's mark. The amendment was defeated 
        by a vote of 9-9. Ayes: Chafee, Biden, Sarbanes, Dodd, 
        Kerry, Feingold, Wellstone, Boxer, and Torricelli. 
        Nays: Helms, Lugar, Hagel, Smith, Grams, Brownback, 
        Thomas, Ashcroft, and Frist.

          An amendment by Senator Brownback regarding 
        nonmilitary education and anticorruption assistance. 
        The amendment was approved by a vote of 11-7. Ayes: 
        Helms, Lugar, Hagel, Smith, Grams, Brownback, Thomas, 
        Ashcroft, Frist, Dodd, and Wellstone. Nays: Chafee, 
        Biden, Sarbanes, Kerry, Feingold, Boxer, and 
        Torricelli.

    During Committee consideration of the bill, the following 
amendments were agreed to by voice vote:

          A managers' amendment which included an initiative by 
        Senators Frist, Kerry, Gordon Smith, Boxer, and 
        Feingold regarding HIV/AIDS in Africa funding; the text 
        of Senator Boxer and Senator Gordon Smith's S. 1497, 
        International Tuberculosis Control Act of 1999; a 
        provision sponsored by Senator Feingold regarding 
        Development Fund for Africa funding; a provision 
        sponsored by Senator Helms and Senator Biden which 
        authorizes a provision usually carried in the Foreign 
        Operations appropriations bill regarding disbursal of 
        assistance to Israel; a provision sponsored by Senators 
        Helms and Biden which codifies the U.S./Israel 
        agreement with respect to Israel's Economic Support 
        Fund phase out; a provision sponsored by Senators Helms 
        and Biden which authorizes a provision usually carried 
        in the Foreign Operations appropriations bill which 
        allows Israel to purchase equipment in Israel using a 
        portion of the FMF funds; a provision sponsored by 
        Senator Biden regarding Africa Crisis Response 
        Initiative training; an amendment sponsored by Senator 
        Biden to section 804 regarding police training; and 
        various agreed upon technical corrections.

          An amendment by Senator Ashcroft which is the same as 
        the text of S. 2106 regarding biotechnology and 
        international development.

    The Committee voted to report the bill favorably by voice 
vote.

                          II. Summary of Funds


             SUMMARY OF FUNDS IN THE TECHNICAL ASSISTANCE, TRADE PROMOTION,  AND ANTI-CORRUPTION ACT
----------------------------------------------------------------------------------------------------------------
                                                                   FY 2000          FY 2001        FY 2001 SFRC
                                                                   Estimate         Request            Mark
----------------------------------------------------------------------------------------------------------------
AIDS Initiative \1\..........................................  \2\ $200,000,00  \2\ $259,000,00     $300,000,000
                                                                             0                0
HIPC Trust Fund..............................................  \3\ 210,000,000      150,000,000  \4\ 600,000,000
Serbia Democracy Act.........................................       25,000,000       41,500,000       50,000,000
Microenterprise Assistance...................................      135,000,000      135,000,000  \5\ 150,000,000
Defense & Security Assistance
  IMET.......................................................   \6\ 49,810,000       55,000,000       65,000,000
  FMF........................................................  \6\ 4,788,944,0    3,538,200,000    3,627,000,000
                                                                            00
  Nonproliferation & Export Control  Assistance..............      124,780,000      110,000,000      129,000,000
  Antiterrorism..............................................       38,000,000   \7\ 72,000,000   \7\ 73,000,000
----------------------------------------------------------------------------------------------------------------
    Total Authorization of  Appropriations...................    5,561,534,000    4,353,700,000    4,994,000,000
----------------------------------------------------------------------------------------------------------------
\1\ USAID figures only.
\2\ Funding from all USAID accounts.
\3\ Not enacted. Pending in supplemental appropriations request.
\4\ These funds are authorized for FY 2000-2003. The Administration has requested $600 million for the HIPC
  Trust Fund in FY 2000 supplemental, FY 2001, and FY 2002 advance appropriation proposals.
\5\ Includes appropriated funds and local currencies.
\6\ Amounts are post-rescission. FMF for FY2000 also includes a one-time-only $1.8 billion Wye River/Middle East
  Peace supplemental appropriation.
\7\ Includes antiterrorism and terrorism interdiction program assistance.


                    III. Section-by-Section Analysis

       TITLE I--PROMOTING TRADE AND PROTECTING UNITED STATES JOBS

                 Subtitle A--Private Sector Development

Sec. 101. Private Sector Enterprise Funds
    Section 101 adds a new section 601A to the Foreign 
Assistance Act of 1961 (FAA) authorizing the establishment of 
enterprise funds to support private sector growth using the 
model of the SEED Act. Similar legislation was recommended in 
the 104th Congress by the Committee in S. 961 and passed by the 
House (H.R. 1561). Currently, the Foreign Assistance Act of 
1961 (FAA) and the SEED Act authorize the President to create 
enterprise funds in the former Soviet Union and Eastern Europe, 
and the Committee notes that the general authorities of the FAA 
have been used to establish an enterprise fund in South Africa. 
The Committee supports this innovative approach to foreign 
assistance through which enterprise funds--publically funded 
but privately managed--promote the development of private 
sectors in eligible countries and the creation of joint 
ventures between U.S. and host country entrepreneurs. In 
addition to authorizing the creation of enterprise funds, this 
provision also ensures that Congress will be aware, in advance, 
of how the assets of closed out funds are to be distributed.
    Subsection (a) of the new section 601A authorizes the 
President to support existing or establish new enterprise 
funds, outside Eastern Europe and the former Soviet Union, in 
furtherance of development assistance goals under the FAA, that 
help develop the private sector and promote policies and 
practices in eligible countries important to creating a 
positive environment within which businesses operate. Given the 
importance of fostering the expansion of the private sector in 
developing and transitioning nations, funds may be made 
available to enterprise funds notwithstanding any provision of 
law, with the exception of sections 620A (relating to 
terrorism) and 490 (concerning counter narcotics).
    Subsection (b) makes any country eligible for having an 
enterprise fund created under the terms and conditions as those 
established in Poland and Hungary. Enterprise funds for SEED 
countries and independent states of the former Soviet Union, 
however, must continue to use the authorities under the SEED 
Act and section 498B of the FAA.
    Subsection (c) establishes the Polish and Hungarian 
enterprise funds as models for the operations of other 
enterprise funds, including the legal status of officers, 
members, and employees. Subsection (d) exempts a newly created 
enterprise fund from publishing an annual report by January 31 
of each year for the first 12 months after it becomes eligible 
to receive funds. After the exemptions for the first year, the 
enterprise fund would have to file annual reports pursuant to 
section 201(p) of the SEED Act.
    Subsection (e) requires the President to send the Committee 
and the House International Relations Committee in advance a 
plan for how the assets of an enterprise fund that is scheduled 
for liquidation or dissolution will be distributed. This is 
nearly identical to text enacted as Section 572 of the Foreign 
Operations Appropriations, FY 2000.
    Subsection (f) permits funding for enterprise funds to come 
from development assistance accounts and from the Economic 
Support Fund, in addition to amounts otherwise available.

        Subtitle B--Protection of United States Jobs and Exports

Sec. 111. Prohibition on Bilateral Assistance for Foreign Exports of 
        Certain Commodities
    This section amends the Foreign Assistance Act of 1961 
(FAA) to ensure that no U.S. bilateral assistance will help 
recipient countries establish or expand production of export 
commodities that are currently in surplus on world markets if 
such aid would result in substantial injury to American 
producers. Section 111 also prohibits the furnishing of 
development assistance for certain activities in connection 
with the growth or production in a foreign country of an 
agricultural commodity for export that would compete with a 
similar commodity grown or produced in the United States for 
export. Similar language has been enacted annually in Foreign 
Operations Appropriation acts for many years. These legislative 
provision appropriately belong in permanent authorizing law. 
The Committee, however, does not intend by including these 
provisions as part of the FAA, to alter the longstanding 
interpretation and application of these provisions.
Sec. 112. Opposition to Multilateral Assistance for Certain Surplus 
        Commodities
    Section 112, which amends the International Financial 
Institutions Act, is similar in intent to Section 111, 
protecting U.S. producers from injury due to assistance that 
might be provided by multilateral development banks and the 
IMF. It requires the Treasury Secretary to direct U.S. 
Executive Directors at each international financial institution 
to oppose aid related to the production of commodities or 
minerals for export if they are in surplus on world markets and 
would significantly hurt American producers of competing 
commodities. Similar legislation was first enacted in 1986 and 
has been attached routinely to annual Foreign Operations 
Appropriations bills. Like Section 111, it is a provision that 
belongs in permanent statute. It is the Committee's intent, 
however, not to change longstanding interpretation and 
application of this language.
Sec. 113. Prohibition on Assistance for Activities Likely to Cause a 
        Loss of United States Jobs
    This section is intended to ensure that no U.S. assistance 
will provide financial incentives to U.S. firms to induce them 
to relocate outside the United States if the result would be a 
loss of jobs for Americans employed by the such enterprises. 
Programs managed by the Overseas Private Investment Corporation 
are exempt from this restriction. Section 113 further blocks 
aid that would contribute to the violation of internationally 
recognized workers rights, although this condition would not 
apply to assistance for the informal sector, micro and small-
scale enterprise, and smallholder agriculture. Congress has 
enacted a nearly identical provision in annual Foreign 
Operations Appropriations since 1993. This section would 
incorporate this legislative restriction as permanent text of 
the Foreign Assistance Act of 1961.
Sec. 114. Purchase of American-Made Equipment and Products
    Section 114 provides a clear statement of the Congressional 
intent that U.S. foreign aid funds, to the maximum extent 
possible, should be used to purchase American-made products and 
services. Subsections (a) and (b) express the Congressional 
view that aid programs authorized under this Act, the Foreign 
Assistance Act (FAA) and the Arms Export Control Act (AECA) 
should utilize U.S. resources as much as possible, and that 
agricultural commodities, equipment, and products purchased 
with funds provided under these three laws, to the greatest 
extent practicable, should be American-made. Subsection (c) 
requires the head of agencies that utilize funds authorized 
under this Act, the FAA, and the AECA, to the maximum extent 
possible, to inform contractors of Congressional views 
regarding the purchase of American-made goods with aid dollars. 
Congress has annually approved similar language in Foreign 
Operations Appropriations bills since 1994, text that would now 
be incorporated into authorization legislation. This provision 
is similar to the basic requirements contained in Section 604 
of the FAA to use American-made products. To the extent that 
agencies utilizing FAA funds provide notice under that section 
of the priority for procurement from the United States, the 
Committee would view the requirements of this amendment as 
having been satisfied.

       Subtitle C--Trade Sanctions Reform and Export Enhancement

    Subtitle C establishes U.S. policy with respect to the 
imposition of unilateral sanctions restricting the export of, 
or provision of assistance relating to agricultural commodities 
or agricultural programs, or the export of, or provision of 
assistance relating to medicine or medical devices. It further 
creates mechanisms for direct Congressional involvement in the 
decision to impose or lift such sanctions
    This subtitle, the Trade Sanctions Reform and Export 
Enhancement Act of 2000, is intended to exempt agricultural and 
medical products from unilateral embargoes maintained by the 
United States for foreign policy or national security reasons 
unless Congress specifically approves the imposition of 
agricultural and medical product sanctions. The subtitle does 
not apply to embargoes imposed in the context of a multilateral 
regime where the other member countries of that regime are 
imposing substantially similar measures. Because food and 
medicine satisfy basic and essential human needs, humanitarian 
considerations justify their exemption from unilateral trade 
sanctions. Further, the economic damage to U.S. suppliers of 
such goods, weighed against the general ineffectiveness of 
agricultural and medical product sanctions, when the countries 
subject to such embargoes simply turn to other sources, 
indicate that these two sectors should be exempt.
    The legislation is similar to S. 425 and S. 1771 introduced 
earlier in the 106th Congress as the Food and Medicine for the 
World Act of 1999. In August, 1999, Senator Ashcroft introduced 
a revised version of the Food and Medicine for the World Act as 
amendments 1507 and 1516 to S. 1233, the Agriculture FY 2000 
Appropriations bill. A motion to table amendment 1507 was 
rejected by a 70-28 vote of the Senate; both amendments were 
adopted by voice vote (they were identical). However, this 
amendment was eventually removed in the conference version of 
S. 1233. Senator Ashcroft reintroduced the Act as S. 1771, the 
text of which is substantially similar to subtitle C, in 
October, 1999.
Sec. 121. Short Title
    This section cites Subtitle C as the ``Trade Sanctions 
Reform and Export Enhancement Act of 2000.''
Sec. 122. Definitions
    Section 122 defines a number of terms used in Subtitle C, 
including those for agricultural commodity, agricultural 
program, joint resolution, medical device, medicine, unilateral 
agricultural sanction, and unilateral medical sanction.
Sec. 123. Restriction
    This section prohibits the President from imposing a new 
unilateral agricultural sanction or new unilateral medical 
sanction against a foreign nation or entity, unless (1) the 
President notifies Congress at least 60 days in advance 
regarding what activity would be restricted and what actions 
prompted and justified the proposed sanction, and (2) a joint 
resolution is enacted into law approving the President's 
report. These requirements apply, notwithstanding any other 
provision of law, except for the provisions of Section 124 and 
Section 125 of this Act. For sanctions that exist on the date 
of enactment of this Act, the President must immediately 
terminate unilateral agricultural or unilateral medical 
sanctions, except those that involve programs administered 
under Section 416 of the Agricultural Act of 1949 (concerning 
donations and other transfers of surplus American agricultural 
commodities), the Export Credit Guarantee Program (G.S.M.-102) 
or the Intermediate Export Credit Guarantee Program (G.S.M.-
103) (programs promoting the export of American agricultural 
commodities), and the dairy export incentive program (Section 
153 of the Food Security Act of 1985).
Sec. 124. Exceptions
    This section sets out two types of circumstances under 
which Section 123 restrictions would not apply to an authority 
or requirement to impose (or continue to impose) a sanction 
against a foreign country or entity. The first would be in 
cases where the United States had declared war, where the use 
of American forces had been authorized, or where U.S. troops 
were either already engaged or on the verge of becoming 
involved in hostilities. The second exception concerns the 
types of items withheld. Sanctions that restrict or prohibit 
agricultural commodities, medicines, or medical devices that 
are controlled on the U.S. Munitions List or under any control 
list established by the Export Administration Act of 1979 or 
any successor statute, or those used in the development of 
chemical and biological weapons or weapons of mass destruction 
would not fall under the provisions of Section 123.
Sec. 125. Countries Supporting International Terrorism
    Section 125 creates an additional exception to the 
requirement for Congressional notification and authorization of 
the imposition of new sanctions or the lifting of existing 
sanctions. For any country that has been determined to be 
supporting international terrorism pursuant to Section 620A of 
the Foreign Assistance Act of 1961, aid prohibitions, including 
those for export aid, loans, and loan guarantees, remain in 
effect. This section, however, also remains subject to the 
conditions of Section 127 which permit limited transfers to 
terrorist states of agricultural commodities and medicine.
Sec. 126. Termination of Sanctions
    This section establishes a two-year sunset provision for 
each new unilateral agricultural or medical sanction imposed 
under Section 123. These sanctions terminate at least by the 
end of the second year, unless the President notifies Congress 
at least 60 days in advance that the sanctions should continue 
for another period of up to two years and Congress approves a 
continuance through enactment of a joint resolution.
Sec. 127. State Sponsors of International Terrorism
    This section permits the exports of agricultural 
commodities, medicine, and medical devices to the government of 
a country that is determined to have provided support for acts 
of international terrorism, as determined under Section 620A of 
the Foreign Assistance Act of 1961, but only under one-year 
U.S. Government licenses that are fully completed within a 12-
month period and that are not financed with U.S. direct 
financing or loan guarantees. For items used for food, licenses 
will be general licenses. For other items (e.g. medicine and 
medical devices), the type of license, general or specific, 
will remain at the discretion of the appropriate Federal 
executive department or agency.
    The Executive Branch must report to Congress quarterly 
concerning the activity during the previous quarter under 
licenses issued under the authority of this section. In 
addition, Federal agencies every two years will submit to the 
appropriate committees a report on the operation of the 
licensing system, based in part on the views of U.S. business 
and agricultural enterprises offered in a designated 30 day 
comment period.
Sec. 128. Congressional Priority Procedures
    Section 128 sets out the procedures under which the House 
and Senate will consider a Presidential recommendation to 
impose or continue to impose unilateral agricultural and 
unilateral medical sanctions. In general, these procedures 
provide assurances to the President that Congress will act on a 
recommendation in a timely fashion. Subsection (b) stipulates 
that a joint resolution authorizing the sanction shall be 
referred to the House International Relations and Senate 
Foreign Relations Committees. Subsection (c) provides that the 
Committees shall be discharged from further consideration of 
the joint resolution if they have not reported the measure 
within 30 session days of Congress, and that the joint 
resolution will be placed on the calendar of the appropriate 
House. Subsection (d) sets out floor debate procedures for a 
joint resolution on an expedited schedule. A motion to proceed 
with consideration of a joint resolution would not be subject 
to amendment or other motions that might delay action on the 
President's recommendation. Debate must conclude after 10 
hours, followed immediately by a vote. Subsections (e) and (f) 
describe procedures for consideration of a joint resolution 
that has passed one House and has been received in the other 
body, and for a joint resolution approved in both the House and 
Senate.
Sec. 129. Effective Date
    This section states that for all matters other than those 
concerning existing sanctions, the provisions of this subtitle 
are effective on the date of enactment of this Act. For 
unilateral agricultural and medical sanctions that are in 
effect when this Act becomes law, this subtitle will not apply 
for 180 days.

                     TITLE II--ECONOMIC ASSISTANCE

             Subtitle A--Development Assistance Authorities

Sec. 201. Development Assistance Policy
    This section amends the Foreign Assistance Act of 1961 
explicitly to recognize the interrelationship between the 
achievement of economic reforms and the development of 
effective institutions of democratic governance. This statement 
of policy makes clear the importance to the development process 
of democratic and economic institutions which strengthen the 
capacity of people to hold their governments accountable and 
create economic opportunity.
Sec. 202. Contingencies
    Section 202 of the bill amends section 451 of the Foreign 
Assistance Act of 1961. The amendment increases the amount of 
foreign assistance funds the President may use to meet 
unanticipated contingencies from $25 million to $50 million. 
This authority has fluctuated between these two levels over the 
past 5 years, with the higher level being requested by the 
President in his budget request for FY 2001.
Sec. 203. Waiver of Restrictions for Narcotics-Related Economic 
        Assistance
    This section permits narcotics-related assistance to be 
provided notwithstanding most provisions of law that would 
otherwise make a country ineligible to receive assistance. The 
exercise of this authority is subject to the prior notification 
requirement of section 634A of the Foreign Assistance Act. 
Similar language has been contained in prior acts dealing with 
efforts to eradicate illicit drug crop production and halt the 
international traffic in illicit drugs.
Sec. 204. Working Capital Fund
    Section 204 of the bill authorizes the U.S. Agency for 
International Development to establish a working capital fund 
into which the Agency would deposit reimbursements for services 
provided by USAID to other U.S. Government agencies. The 
establishment of the Fund would enable USAID to participate 
fully in the interagency International Cooperative 
Administrative Support Services program. This authority is 
requested by the President in his FY 2001 budget.
Sec. 205. Certifications Regarding Adherence to Population Planning 
        Assistance Laws
    This section adds new certification requirements regarding 
the practices of organizations receiving U.S. population 
assistance and imposes penalties for organizations that violate 
U.S. law concerning the use of foreign assistance funds for 
abortion and involuntary sterilization. Section 104(f) of the 
Foreign Assistance Act of 1961--current law since 1973--
prohibits the use of population aid funds to perform abortions, 
involuntary sterilizations, or related biomedical research as a 
means of family planning. This section would add a new 
Subsection (g) requiring the Administrator of the U.S. Agency 
for International Development (USAID) to certify each year 
prior to disbursing population assistance to any organization, 
that such organization has not violated the prohibitions of 
Subsection (f) during the previous year, and that the 
organization has internal accounting mechanisms that would 
ensure that U.S. population aid funds would not be used in 
violation of Subsection (f) restrictions. In addition, if the 
USAID Administrator found that an organization has violated the 
abortion and involuntary sterilization prohibitions of 
Subsection (f), the organization would be barred from receiving 
assistance of any kind under the the Foreign Assistance Act of 
1961 for ten years.
Sec. 206. Funding of Certain Environmental Assistance Activities of 
        USAID
    Section 206 authorizes that at least $60,200,000 of total 
fiscal year 2001 funds authorized to be appropriated for 
development assistance be used for activities of the type 
carried out by USAID's Global Environment Center. Out of the 
$60,200,000 authorization, at least $2,500,000 shall be 
available for water and coastal resources activities. This 
authorization is not intended to be an authorization for all 
USAID environmental activities, but to indicate support for 
those programs of the sort carried out by the Global 
Environment Center.
Sec. 207. Funding of Certain Assistance Activities in East Timor
    This section authorizes $25,000,000 of total fiscal year 
2001 funds authorized to be appropriated for development 
assistance to allow East Timor to restore and expand the coffee 
sector, enable indigenous civil society organizations to 
participate in relief and reconstruction projects, support 
community-led reconstruction, development, and employment 
activities, promote media outlets, and demobilize and 
reintegrate the militia.
Sec. 208. Availability of ESF Assistance for Certain Assistance 
        Activities for the Horn of Africa
    Section 208 amends the Horn of Africa Recovery and Food 
Security Act (P.L. 102-214) to permit developmental assistance 
from the Economic Support Fund (ESF) to be provided for 
Ethiopia, Sudan, and Somalia through private and voluntary 
organizations, notwithstanding provisions of law that would 
otherwise limit such assistance. Under current law, only funds 
from Development Assistance accounts can be used for these 
countries to provide development-type aid. The amendment to the 
Horn of Africa Recovery and Food Security Act expands the 
source of funds for developmental programs to include the ESF 
account.
Sec. 209. Allocation of Assistance for Sub-Saharan Africa
    This section requires that sub-Saharan Africa receive in 
FY2001 the same proportion of total U.S. development assistance 
as the region received in FY2000 as a proportion of total 
development aid. Development assistance is defined as including 
funds provided under chapter 1 (general development aid), 
chapter 10 (Development Fund for Africa), and chapter 11 
(assistance to the Independent States of the former Soviet 
Union), of Part I of the Foreign Assistance Act of 1961.
    The Committee recognizes that the countries of Sub-Saharan 
Africa require particular focus and attention, and that U.S. 
assistance programs must in some instances be tailored to meet 
the specific development needs of that region. As USAID sets 
forth its priorities for programs in Africa, high priority 
should continue to be given to higher education and 
professional training as reflected in the Advanced Training for 
Leadership Skills Program (ATLAS). Alumni of this program and 
its predecessor, the African Graduate Fellowship Program, 
occupy a variety of key leadership positions in the areas of 
government, academia, business and civil society in Africa. The 
Committee urges USAID to consider carefully before making any 
changes in this program.
Sec. 210. Nonmilitary Education and Anti-corruption Assistance
    Section 210 of the bill amends the Foreign Assistance Act 
of 1961 to allow the use of economic assistance funds for 
nonmilitary education programs and for anti-corruption 
programs, notwithstanding provisions of law that would 
otherwise restrict the eligibility of foreign countries to 
receive assistance. The authority of this section, however, 
does not provide for the provision of assistance for any 
country ineligible to receive assistance because it has been 
designated as a state sponsor of terrorism or because it has 
been designated as a major drug producing or drug transit 
country and not certified by the President to receive 
assistance. Noting the continued corruption in the NIS and its 
negative impact on the development of democracy and free market 
economies, the Committee recommends that the Administration 
fund programs that foster a culture of lawfulness in those 
countries. The National Strategy Information Center should be 
provided with $300,000 to develop and implement curricula for 
grade schools in the NIS based on its pilot program in Mexico, 
as well as similar work done in Hong Kong and Italy.

             Subtitle B--International Disaster Assistance

Sec. 211. Authority to Provide Reconstruction Assistance
    Section 211 amends section 491 of the Foreign Assistance 
Act of 1961 to allow international disaster assistance to be 
used for reconstruction efforts following natural or manmade 
disasters, in addition to relief and rehabilitation assistance 
to address disasters. This authority has been included for a 
number of years in annual appropriations acts and the 
Committee's intent is simply to conform permanent law to this 
practice.
Sec. 212. Processing of Applications for Transportation of Humanitarian 
        Assistance Abroad by the Department of Defense
    Under current law--10 U.S.C. 402--the Secretary of Defense 
is authorized to transport anywhere in the world, without 
charge on a space available basis, humanitarian assistance 
furnished by nongovernmental organizations. Section 212 
requires that the USAID Administrator grant priority to 
applications concerning disaster relief assistance that seek 
transportation under the authority of section 402 of title 10. 
Section 212 further directs the USAID Administrator to assist 
nongovernmental organizations in the application process.

                      Subtitle C--Sudan Peace Act

    Subtitle C incorporates provisions nearly identical to S. 
1453--the Sudan Peace Act--that passed the Senate on November 
19, 1999. The purpose of the Act is to facilitate famine relief 
activities in Sudan and promote a comprehensive solution to the 
war in that country.
Sec. 221. Short Title
    Section 221 identifies the title of subtitle C as the 
``Sudan Peace Act.''
Sec. 222. Findings
    This section sets out 15 Congressional findings, including 
those regarding the opportunity for an internationally 
sponsored peace effort and the need to strengthen humanitarian 
relief operations. Other findings touch on the need for U.S. 
leadership, activities of the Government of Sudan in areas 
outside their full control that impede the peace process and 
disrupt the ability of the population to sustain itself, the 
stated intention of the Government of Sudan to use oil sale 
proceeds to accelerate the war against areas outside its 
control, and the ineffectiveness of current food and other 
emergency relief efforts. The Congress believes that the United 
States should seek the multilateralization of sanctions linked 
to peace against the Government of Sudan, support the creation 
of a viable democratic civil society and people-to-people 
reconciliation efforts in areas of Sudan outside government 
control, strengthen humanitarian assistance programs, solicit 
cooperation among U.S. trading partners and within multilateral 
organizations, and pursue all possible avenues to end 
hostilities between Ethiopia and Eritrea so that those two 
countries can resume efforts to facilitate a comprehensive 
solution to the war in Sudan.
Sec. 223. Definitions
    Section 223 defines the terms, Government of Sudan, IGAD, 
and OLS.
Sec. 224. Condemnation of Slavery, Other Human Rights Abuses, and New 
        Tactics by the Government of Sudan
    This section expresses Congressional condemnation of human 
rights violations on all sides of the war in Sudan, the 
government's support and tolerance for slave trading, and the 
government's increasing use of raiding and slaving parties to 
create food shortages and destroy the societies, culture, and 
economies of the Dinka, Nuer, and Nuba peoples.
Sec. 225. Support for the IGAD Peace Process
    Section 225 expresses the sense of Congress supporting U.S. 
efforts to reinvigorate the Inter-Governmental Authority on 
Development (IGAD)-sponsored peace process, calling on IGAD 
member states, the European Union, the Organization of African 
Unity, and Egypt to support peace efforts, and urging Kenya to 
assume a leadership role in peace process implementation. It 
also states the Congressional view that peace efforts are best 
made through the Declaration of Principles reached in Nairobi 
on July 20, 1994, and that the President should not create a 
parallel or competing diplomatic process. Section 225 further 
gives the Secretary of State clear authority to commit all 
necessary diplomatic efforts toward reinvigorating the IGAD 
peace process and any settlement planning that would be carried 
out by the National Democratic Alliance and IGAD Partners' 
Forum.
Sec. 226. Increased Pressure on Combatants
    This section calls on the President to sponsor several 
initiatives, primarily through the United Nations, to bring 
additional pressure against combatants in the war in Sudan and 
affect several issues. Actions include sponsorship of a U.N. 
Security Council resolution to investigate slavery practices in 
Sudan and recommend measures to eliminate slavery and 
sponsorship of resolutions in the U.N. General Assembly and the 
U.N. conference on human rights in Geneva in 2000 to condemn 
human rights practices of the Government of Sudan. Section 226 
further calls on the President to press for implementation of 
the U.N. Special Rapporteur for Sudan recommendations 
concerning human rights monitors in areas of conflict and for 
UNICEF and other relief organizations to keep a list of 
individuals who have been abducted or held in bondage or 
servitude in Sudan. Finally, the President should condemn the 
Government of Sudan following the use of aerial bombardment of 
its people.
Sec. 227. Reporting Requirement
    Section 227 requires the President to report quarterly, 
beginning three months after enactment of the Act, on various 
issues relating to Sudan's oil exploration and construction and 
the extent to which any of it was financed by U.S. citizens, 
air attacks, areas denied to relief organizations, and the 
status of the IGAD-sponsored or other peace process 
initiatives.
Sec. 228. Reform of Operation Lifeline Sudan (OLS)
    The U.N.-coordinated OLS effort began in 1989 providing 
food to people in southern Sudan facing famine and starvation. 
In early 1998, the Government of Sudan denied OLS access to 
much of the Bahr el Ghazal employing food as a weapon of the 
war. Section 228 expresses the Congressional view that the 
President should work with the U.N. Security Council, the 
European Union and its members, and other appropriate parties 
to reform OLS and to terminate the Government of Sudan's veto 
power over OLS air transport relief flights.
Sec. 229. Continued Use of Non-OLS Organizations for Relief Efforts
    Section 229 acknowledges Administration progress and 
encourages further efforts to utilize non-OLS relief agencies 
to distribute U.S. humanitarian contributions to southern 
Sudan. The President must report to Congress within 90 days of 
enactment of the Act on the extent to which he has been able to 
increase delivery of U.S. assistance through non-OLS entities.
Sec. 230. Contingency Plan for Any Ban on Air Transport Relief Flights
    This section requires the President to develop a plan to 
deliver U.S. Government and privately donated humanitarian 
assistance to all affected areas of Sudan outside U.N. 
auspices. This contingency strategy could be utilized in the 
event of a total or partial ban by the Government of Sudan on 
OLS relief flights. Within 60 days of enactment of this Act, 
the President must send Congress a classified report regarding 
the costs and startup time required to implement the 
contingency plan if a total ban on air transport of relief 
supplies has been imposed by the Government of Sudan. Section 
230 further authorizes the President, notwithstanding any other 
provision of law, to reprogram up to 100 percent of funds 
available for OLS operations in order to implement the 
contingency plan developed pursuant to this section.
Sec. 231. New Authority for USAID's Sudan Transition Assistance for 
        Rehabilitation (STAR) Program
    Section 231 authorizes a new and expanded STAR program to 
help build civil and economic institutions in areas devastated 
by the war. In moving away from the provision of only disaster 
relief to broader development assistance activities, the STAR 
program will help create sustainable administrative and social 
institutions in areas outside the control of the government.
    Subsection (a) expresses Congress' support for 
Administration efforts to make U.S. assistance to people living 
outside the control of the Government of Sudan more diversified 
and effective. The Congress, in particular, is supportive of 
STAR program and its long-term focus on democracy promotion, 
rule of law, indigenous institutional capacity development, 
self-reliance, and people-to-people reconciliation activities.
    Subsection (b) authorizes $16,000,000 for a three-year 
period beginning on October 1, 2000, for development of a 
viable civil authority and civil, and commercial institutions 
in Sudan. These funds would be drawn from resources made 
available generally for development assistance under chapter 1 
of part I of the Foreign Assistance Act of 1961.
    Subsection (c) extends to the President special authorities 
to implement other programs for emergency relief, economic 
self-sufficiency, civil authority, education, rule of law, 
judicial, and legal frameworks, people-to-people 
reconciliation, or any other activity supporting peace efforts.
    Subsection (d) expresses Congress' view that the President 
should draw upon the U.S. Agency for International 
Development's Office of Transition Initiatives to pursue 
programs outlined under this section.
    Subsection (e) states the sense of Congress regarding the 
importance of education, especially secondary educational 
opportunities, and the development of rule of law as 
particularly critical factors in the future development of 
Sudan. The Committee is aware of the important role played by 
the Rumbek Secondary School in educating the current generation 
of leaders in southern Sudan, and believes that priority should 
be given to rebuilding and supporting the secondary school in 
Rumbek.
    Subsection (f) expresses Congress' intent that U.S. aid 
programs include the involvement and cooperation of indigenous 
groups in areas outside the control of the government in 
northern, southern, and eastern parts of Sudan.
Sec. 232. Assessment and Planning for Nuba Mountains and Other Areas 
        Subject to Bans on Air Transport Relief Flights
    Section 232 urges the President to assess the humanitarian 
needs of those living in the Nuba Mountains, Red Sea Hills, and 
Blue Nile regions of Sudan, and respond with appropriate 
assistance. These regions are heavily contested by combatants 
and civilians are not receiving relief supplies through OLS due 
to restrictions imposed by the Government of Sudan. The 
President should report to Congress annually regarding efforts 
made under this section.
Sec. 233. Options or Plans for Nonlethal Assistance for National 
        Democratic Alliance Participants
    Currently, most relief programs offer food and other 
assistance only to civilian populations, not to combatants. 
This has led to food diversion by rebel forces and severe 
disruption of normal food distribution systems. This section 
requires the President to send the Appropriations Committees, 
within 90 days of enactment of the Act, a report outlining 
possible options for the provision of nonlethal assistance by 
the United States to participants of the National Democratic 
Alliance. Within 30 days of submitting the report, the 
President should begin consultations with the Committees 
concerning findings raised in the report.

 Subtitle D--Assistance to Countries with Large Populations Having HIV/
                                  AIDS

Sec. 241. Definitions
    This section defines five terms used in this subtitle: 
AIDS, Association (International Development Association), Bank 
(World Bank), HIV, and HIV/AIDS (an individual having HIV but 
not AIDS, or an individual having HIV and AIDS).
Sec. 242. Findings and Purposes
    Section 242 sets out a number of Congressional findings 
concerning the global AIDS epidemic and identifies two main 
purposes of this subtitle. World Bank data show that over 90 
percent of people with HIV/AIDS live in the developing world. 
Nearly two-thirds of adults and children suffering from HIV/
AIDS live in sub-Saharan Africa, while another 24 percent live 
in Asia. Already, nearly 4.5 million children under the age of 
15 have been infected with HIV, and of these 3 million have 
died of AIDS. This situation threatens to reverse years of 
progress of child survival in developing nations. The World 
Bank calls AIDS the ``foremost and fastest-growing threat to 
development'' in Africa, and has declared its new HIV/AIDS in 
Africa initiative its top priority for the region. The 
discovery of a relatively simple and inexpensive treatment--
nevirapine (NVP)--to interrupt the transmission of HIV from an 
infected mother to an unborn or newly born child presents an 
extraordinary opportunity for the U.S. Government to partner 
with governments in the developing world to fight the mother-
to-child transmission of HIV, known as ``vertical 
transmission.'' If the current infection growth rates continue, 
the number of AIDS orphans may triple during the next 10 years, 
posing substantial economic, social, and political 
consequences. An expansive mother-to-child antiretroviral drug 
strategy can be a significant force for social change and play 
a critical role in confronting the HIV/AIDS epidemic in the 
developing world. The U.N. estimates that an additional 400 to 
800 children are infected with HIV each day through breast 
feeding in many African countries. According to the 
Congressional testimony by U.N. Ambassador Richard Holbrooke, 
the single most important step in preventing the transmission 
of the HIV virus in Africa is to provide HIV-positive pregnant 
women and nursing mothers with practical alternatives to breast 
feeding. The Committee expects USAID to address this issue and 
to coordinate with relevant U.N. agencies to prevent the 
transmission of HIV through breast feeding.
    Subsection (b) states two purposes of the subtitle: (1) to 
prevent human suffering; and (2) to ensure economic 
development, stability, and national security in developing 
nations by advancing research to better understand the causes 
of HIV/AIDS and help in the development of an AIDS vaccine.
Sec. 243. Additional Assistance Authorities to Combat HIV and AIDS
    Section 243 amends the Foreign Assistance Act of 1961 (FAA) 
by adding additional authorities for USAID to engage in HIV/
AIDS activities.
    Specifically, subsection (a) directs USAID to coordinate 
with UNAIDS, UNICEF, WHO, local governments, and other 
organizations to create strategies to prevent HIV vertical 
transmission and implement intervention programs, and to 
continue programs for voluntary counseling and testing, the 
distribution of antiretroviral drugs and replacement feeding. 
The Committee expects USAID to pursue comprehensive, 
coordinated efforts to fight HIV and AIDS, making such efforts 
a priority of U.S. foreign assistance. USAID assistance should 
focus on primary prevention and education, voluntary testing 
and counseling, the provision of medications preventing the 
transmission of HIV and AIDS from mother to child, and care for 
those living with HIV and AIDS.
    The provision authorizes the appropriation of $300 million, 
in addition to funds otherwise available to implement the 
programs under this subsection. At least 65 percent of these 
funds are authorized for U.S. and foreign nongovernmental 
organizations, including private and voluntary organizations, 
for-profit organizations, religious affiliated organizations, 
educational organizations, and research facilities. Not less 
than 20 percent of these funds are authorized for programs that 
are part of a multidonor strategy to support and educate 
orphans in Africa, including AIDS orphans. Vertical 
transmission prevention activities are authorized to receive 
not less than 8.3 percent of the $300 million authorization. 
Finally, no more than 7 percent of the $300 million may be used 
to administer programs carried out under this subsection. The 
authorizations in Section 243 reflect the importance the 
Committee places on nongovernmental organizations which play a 
vital role to combat HIV/AIDS and the Committee's belief that 
particular emphasis must be placed on the care and education of 
children orphaned by AIDS. However, the Committee also expects 
USAID to continue to support efforts of responsible 
governments, in Africa and elsewhere, to provide leadership and 
develop programs to reduce the incidences of AIDS in their 
countries. Ultimately the HIV/AIDS problem cannot be addressed 
without the involvement and cooperation of governments who 
understand the breadth of the problem and the urgent need to 
address it.
    Subsection (b) amends section 496 of the FAA (dealing with 
the Development Fund for Africa) by inserting the authority to 
waive any restrictions on aid to countries for the provision of 
assistance for training and training facilities in sub-Saharan 
Africa, for doctors and other health care providers.
Sec. 244. Voluntary Contribution to Global Alliance for Vaccines and 
        Immunizations and International AIDS Vaccine Initiative
    This section amends section 302 of the FAA authorizing $50 
million in fiscal year 2001 for a U.S. contribution to the 
Global Alliance for Vaccines and Immunizations (GAVI), and $10 
million for the International AIDS Vaccine Initiative. The 
President must further report at the end of fiscal year 2001 on 
the effectiveness of GAVI and the International AIDS Vaccine 
Initiative in meeting several goals.
Sec. 245. Multilateral Lifesaving Vaccine Purchase Fund
    This section urges the President to begin negotiations with 
foreign governments and other interested institutions and 
parties to establish an international vaccine purchase fund 
that could buy and distribute in developing nations vaccines 
for malaria, tuberculosis, HIV, and any infectious disease that 
causes more than 1 million deaths worldwide each year. Such a 
fund could be an important market incentive for private sector 
vaccine research. The President is to report annually to 
Congress regarding the status of negotiations to establish the 
fund, and if established, recommendations for further 
activities.
Sec. 246. World Bank Trust Fund for AIDS Prevention and Eradication
    Section 246 directs the Treasury Secretary to enter into 
negotiations with the World Bank or the International 
Development Association (IDA), member governments, and others 
to create a trust fund that would receive contributions and 
distribute the resources for AIDS programs in countries 
eligible to borrow from IDA. The trust fund would be 
administered by either the World Bank or IDA. Subsection (b) 
authorizes the appropriation of $100 million in fiscal year 
2001 for a U.S. contribution to the trust fund, money that 
would be in addition to other amounts for multilateral or 
bilateral AIDS programs. The Secretary of the Treasury must 
also report annually to the Senate Foreign Relations and 
Banking Committees and the House International Relations and 
Banking Committees on the goals, activities, and effectiveness 
of the trust fund in reducing the spread of AIDS worldwide.
Sec. 247. Negotiations for the Creation of a World Bank Trust Fund for 
        Education of Orphans in Sub-Saharan Africa
    This section requires the Secretary of the Treasury to 
begin negotiations with the World Bank or the International 
Development Association (IDA), member governments, and others 
to create a trust fund that would support primary and secondary 
education programs for orphans in sub-Saharan Africa. 
Subsection (b) authorizes the appropriation of $50 million in 
fiscal year 2001 for a U.S. contribution to the trust fund.
Sec. 248. Coordinated Donor Strategy for Support and Education of 
        Orphans in Sub-Saharan Africa
    This section amends the Foreign Assistance Act of 1961 by 
inserting a new section 131 addressing orphans in Africa. It 
requires the President to coordinate a multidonor strategy to 
support and educate AIDS orphans, and the families, 
communities, and institutions most impacted by the HIV/AIDS 
epidemic in sub-Saharan Africa. A waiver is provided so that 
any U.S. assistance extended under this section can be made 
notwithstanding any other provision of law that would otherwise 
restrict the aid.
Sec. 249. African Crisis Response Initiative and HIV/AIDS Training
    Section 249 addresses the problem of soldiers in African 
militaries who are infected with HIV/AIDS and who may spread 
the disease where civil unrest and war arise. This provision 
requires that U.S. education and classroom training courses for 
African militaries under the African Crisis Response Initiative 
include military-based education on the prevention of the 
spread of HIV/AIDS.

             Subtitle E--International Tuberculosis Control

Sec. 251. Short Title
    This section designates this subtitle as the International 
Tuberculosis Control Act of 2000.
Sec. 252. Findings
    Tuberculosis, which has been largely controlled in the U.S. 
and elsewhere in the western world, has re-emerged as a growing 
cause of adult mortality in developing nations. The World Bank 
estimates that about 1.86 million people died of tuberculosis-
related illnesses in 1998 and that one-third of the world's 
population is infected with tuberculosis. Due to the relative 
ease with which it is transmitted, tuberculosis poses a serious 
public health threat to the United States and other areas where 
the disease had been brought under control. Nearly 40 percent 
of U.S. tuberculosis cases are associated with foreign-born 
individuals, leading to the conclusion that it will remain a 
problem for the United States until it is controlled abroad. 
Although the means to control tuberculosis exist, several 
obstacles stand in the way of effective control of the disease: 
lengthy screening, detecting, and treating processes; limited 
funds and trained personnel, the need for unique country-
specific interventions; and the risks posed by bad tuberculosis 
programs. Therefore, a well designed and coordinated global 
effort could make a significant contribution in combating this 
growing public health problem.
Sec. 253. Assistance for Tuberculosis Prevention, Treatment, Control, 
        and Elimination
    This section amends the Foreign Assistance Act of 1961 by 
adding new language stating Congressional expectation that 
USAID will coordinate with various health organizations to 
develop and implement a comprehensive tuberculosis control 
program. Congress further anticipates that USAID will establish 
as goals, to be achieved by December 31, 2010, the detection of 
70 percent of infectious tuberculosis cases, and the cure of at 
least 85 percent of such cases, in countries where the Agency 
has established programs. Included is the authorization of $60 
million in fiscal year 2001 to carry out the purposes of this 
subtitle.

   Subtitle F--Global Opportunities for Biotechnology in Agriculture

Sec. 261. Short Title
    This section names this subtitle as Advancing the Global 
Opportunities for Biotechnology in Agriculture Act of 2000.
Sec. 262. Findings
    Section 262 contains findings that conclude that 
biotechnology in the agriculture sector can result in enhanced 
crop yields that will help to feed the world's growing 
population, especially in developing countries. Biotechnology 
raises the prospect of foods that are more nutritional in 
content and pest and disease resistant. Ensuring that the 
benefits of biotechnology in the agriculture sector are shared 
globally should be an integral part of the United States 
foreign assistance program.
Sec. 263. International Educational Programs
    This section authorizes $6 million of development 
assistance funds for programs designed to educate government 
officials in developing countries regarding the use of 
biotechnology in the agriculture sector and the regulatory 
procedures used in the United States with respect to that 
technology. In addition, USAID is to carry out a technical 
exchange program which brings foreign officials to the United 
States for the purpose of educating them about the 
biotechnology in the agriculture sector and the regulatory 
process for biotechnology products in the United States. 
Further, USAID is to send technical experts in the field to 
foreign countries to provide similar information.
Sec. 264. Development of Expertise in Biotechnology in the United 
        States Agency for International Development
    This section directs USAID to establish a group of experts 
within the agency, which should draw on the expertise of other 
relevant Federal agencies.
Sec. 265. Coordinated Federal Strategy
    Section 265 requires the President to establish an 
interagency process involving all relevant Federal agencies, to 
coordinate efforts and to generate support for the acceptance 
of agricultural biotechnology.
Sec. 266. Sense of the Congress
    This section expresses the view of Congress that the 
Secretary of State should work with U.S. embassies to develop 
support from foreign governments for the approval of science-
based trading regimes in multilateral forums and organizations.
Sec. 267. Definitions
    Section 267 defines terms used in this subtitle.

              TITLE III--PEACE CORPS OF THE UNITED STATES

Sec. 301. Redesignation of Peace Corps as Peace Corps of the United 
        States
    This section amends the Peace Corps Act by renaming the 
Peace Corps as the ``Peace Corps of the United States.'' The 
provision further provides that any existing reference in law 
to the Peace Corps will be considered to be a reference to the 
Peace Corps of the United States.

   TITLE IV--STRENGTHENING ANTICORRUPTION MEASURES AND ACCOUNTABILITY

Sec. 401. Debt Relief Under the Heavily Indebted Poor Countries (HIPC) 
        Initiative
    This section provides authorization, as requested by the 
Administration, for full U.S. participation in the HIPC Trust 
Fund. The HIPC Initiative was established in 1996 and reformed 
and expanded in 1999, to provide debt relief to the world's 
poorest and most heavily indebted nations. Last year, the 
President asked Congress to appropriate funds for both 
multilateral (through the HIPC Trust Fund) and bilateral debt 
relief, and to authorize U.S. support for the IMF to draw on 
resources in a reserve account and to engage in an off-market 
revaluation of its gold holdings in order to raise the 
necessary resources for the Fund to extend debt relief under 
HIPC terms. In the Consolidated Appropriations Act for Fiscal 
Year 2000, Congress approved bilateral debt relief 
appropriations and authorized U.S. backing for the IMF 
proposals. Congress, however limited to 9/14ths the amount of 
the interest earnings raised through the investment of the IMF 
gold transactions that could be applied to HIPC debt relief and 
denied funding for the HIPC Trust Fund. The Administration has 
asked Congress this year to authorize these two remaining 
matters.
    Subsection (a) repeals the 9/14th limitation enacted in 
1999 as part of a new Section 62 of the Bretton Woods Agreement 
Act. This action will permit the U.S. Executive Director to the 
IMF to support the IMF use of the remaining 5/14ths of interest 
earnings derived from the investment of profits from the off-
market sale of IMF gold for HIPC debt relief.
    Subsection (b) authorizes $600 million for the period of 
fiscal year 2000 through 2003 for U.S. contributions to the 
HIPC Trust Fund.
    Subsection (c) requires the Secretary of the Treasury to 
certify to Congress within 30 days of enactment of the Act that 
several requirements concerning the International Bank for 
Reconstruction and Development (IBRD) and the IMF have been 
satisfied. Both the Bank and Fund must have given the 
Comptroller General access to Bank and Fund information and 
documents allowing the GAO to audit and monitor Bank 
operations. The Treasury Secretary must also certify that the 
IBRD is implementing a number of policies to:

          (1) suspend loans if funds are diverted for 
        unintended purposes;
          (2) ensure that Bank loans do not displace private 
        sector financing;
          (3) disburse loans (other than project loans) based 
        on prior reforms or incrementally upon implementation 
        of specific reforms instituted after the initial loan 
        disbursement;
          (4) minimize the number of projects that would 
        displace people involuntarily, or that would have a 
        negative impact on a people or culture of the area into 
        which the displaced population is moved;
          (5) promote open markets and trade liberalization in 
        goods and services;
          (6) concentrate Bank financing on economic and social 
        programs and projects rather than short-term liquidity 
        financing; and
          (7) establish qualitative and quantitative indicators 
        to measure progress toward country graduation from 
        concessionary financing, together with an estimated 
        timetable of which countries might graduate during the 
        next 15 years. The intent is to indicate a category of 
        borrowers who will not even be able to graduate in 15 
        years.

    The Treasury Secretary must further certify that the IMF is 
also implementing policies to:

          (1) suspend financing if funds are diverted for 
        unintended purposes;
          (2) ensure that IMF financing normally serves as a 
        catalyst for, and does not displace private sector 
        financing;
          (3) disburse financing based on prior reforms or 
        incrementally upon implementation of specific reforms 
        instituted after the initial disbursement;
          (4) promote open markets and trade liberalization in 
        goods and services;
          (5) concentrate IMF financing primarily on short-term 
        balance of payments financing; and
          (6) to use, in conjunction with the IBRD, qualitative 
        and quantitative indicators to measure progress toward 
        country graduation from concessionary financing, 
        together with an estimated timetable of which countries 
        might graduate during the next 15 years. The intent is 
        to indicate a category of borrowers who will not even 
        be able to graduate in 15 years.

    In the event that the Treasury Secretary is unable to 
certify that all of the these requirements have been satisfied, 
the Secretary must report to the Committees within 30 days of 
enactment of this Act on the progress, if any, the IBRD and IMF 
have made in granting access to the Comptroller General or in 
implementing the required policies. If the Comptroller General 
is subsequently denied access to Bank or Fund information and 
documents after the Treasury Secretary has either certified or 
reported to Congress regarding the requirements of this 
subsection, or 30 days after enactment of this Act, whichever 
is earlier, the Comptroller General must report this situation 
to the Committees and the Secretary.
    The Committee is concerned that many governments receiving 
assistance from the International Monetary Fund and the World 
Bank are mistreating foreign investors and tolerate corruption 
to such an extent that it distorts economic development. These 
actions undermine many of the objectives that IMF and World 
Bank lending are designed to promote. Consequently, the 
Committee recommends that the Administration urge both the IMF 
and the World Bank to make it clear to recipient governments 
that future assistance will be jeopardized if they do not act 
in a timely manner to resolve trade and investment disputes and 
to reduce, and eventually eliminate, corruption.
Sec. 402. Strengthening Procedures for Monitoring Use of Funds by 
        Multilateral Development Banks
    The purpose of this section is to strengthen U.S. policy 
and influence at the multilateral development banks (MDB) to 
improve MDB procedures and management controls over how funds 
are utilized by borrowers. The intent is to ensure that MDB 
loans are used for their intended purposes and comply with 
conditions set out in the loans. The Treasury Secretary, when 
requested, must make available to appropriate Congressional 
committees Bank information regarding MDB compliance with these 
conditions. The material may be submitted on a confidential 
basis if necessary. If the Secretary cannot obtain the 
necessary information within 30 days of a Congressional 
request, he must report to the Committees within another 30 
days why the material cannot be acquired. Within six months of 
the enactment of this Act, the Treasury Secretary must report 
to the appropriate Congressional committees with an evaluation 
of the extent to which MDBs are achieving the goals set out in 
this section. The report will specifically address progress 
made by each multilateral development bank in improving 
monitoring and auditing operations in order to curtail bribery 
and corruption, developing priorities for allocating anti-
corruption aid, implementing country-specific anti-corruption 
programs, identifying and disciplining employees suspected of 
corrupt activities, and harmonizing procurement practices among 
all such banks.
Sec. 403. Reports on Policies, Operations, and Management of 
        International Financial Institutions
    This section creates four new reporting requirements and 
amends an existing requirement regarding various aspects of 
multilateral development bank (MDB) operations that are to be 
transmitted to appropriate Congressional committees. Subsection 
(a) requires the Comptroller General to submit an annual report 
regarding the sufficiency of audits of the financial operations 
of each MDB conducted by persons or entities outside the bank.
    Subsection (b) calls for an annual report from the Treasury 
Secretary addressing how borrowing countries have improved 
governance and anti-corruption standards, and how projects 
funded by the World Bank's International Development 
Association (IDA) contribute to the eventual graduation of a 
representative sample of borrowing nations from reliance on IDA 
financing.
    Subsection (c) amends Section 1705 of the International 
Financial Institutions Act by adding to an existing annual 
report regarding the IMF a requirement for a discussion of the 
progress made by the Fund in adopting and implementing the 
policies outlined in Section 401(c).
    Subsection (d) requires from the Treasury Secretary a 
report within 90 days of enactment of this Act concerning the 
history of debt relief programs led by, or coordinated with 
international financial institutions (IFIs). In particular, the 
report must address how poor countries and the poorest segments 
of their population have benefitted from debt relief, and 
whether debt relief has contributed to a country graduating 
from reliance on concessionary financing and international 
development assistance.
    Subsection (e) calls for the Comptroller General to prepare 
within six months of enactment of this Act a report listing the 
salaries, benefits, and operating expense account of each IFI 
for the previous fiscal year.
Sec. 404. Repeal of Bilateral Funding for International Financial 
        Institutions
    This section repeals Sec. 209(d) of the Foreign Assistance 
Act of 1961 (FAA). Enacted in 1971, Sec. 209(d) authorizes the 
President to transfer bilateral economic aid funds provided 
under part I of the FAA to the World Bank, the Asian 
Development Bank, and other MDBs to enable these organizations 
to make loans to foreign countries. Prior to 1971, Sec. 205 of 
the FAA, until repealed in 1971, had permitted the transfer of 
10 percent of bilateral economic aid to MDBs. These transfer 
authorities, however, have not been operative since 1970. 
Beginning with the Foreign Assistance Appropriations Act, 1970, 
Congress annually has included a provision prohibiting the use 
of bilateral economic assistance for transfer to MDBs under the 
provisions of first, Sec. 205 of the FAA, and from 1971 on, 
under Sec. 209(d). In short, Sec. 405 repeals an authority that 
has been blocked by Congress for 30 years.
Sec. 405. Definitions
    This section defines seven terms used in this title: 
appropriate Congressional committees, Bank, Comptroller 
General, Fund, international financial institutions (IFIs), 
multilateral development banks (MDBs), and Secretary. 
Appropriate Congressional committees include the Senate Foreign 
Relations and Appropriations Committees, and the House 
International Relations and Appropriations Committees. The Bank 
refers to the World Bank's International Bank for 
Reconstruction and Development (IBRD), while IFIs include the 
IMF and multilateral development banks. The term MDBs refers to 
the three major facilities of the World Bank, and the regional 
banks operating in Asia, Latin America, Africa, Eastern Europe, 
the Middle East, and North America. The Secretary refers to the 
Secretary of the Treasury.

                  TITLE V--SERBIA DEMOCRATIZATION ACT

    The Committee on Foreign Relations believes that the 
prospects for democratic change in Yugoslavia have improved 
dramatically since the end of the NATO air campaign against 
Serbia on June 10, 1999. After eight years of conflict, war, 
destruction, economic hardship and massive human rights 
abuses--with Slobodan Milosevic at the helm--there is renewed 
hope that Serbian citizens will finally rid their country of 
the source of instability and chaos.
    Since first exploiting rising Serbian nationalism in the 
1980s to gain power and influence, Milosevic has engaged in 
undemocratic methods to maintain his firm grip on Serbian 
political life. Despite positive signs that Serbian citizens 
may have finally tired of Milosevic, of his tactic of 
manipulating conflict into bloody warfare, and of his 
undemocratic means of governing, he has faced difficult times 
in the past and always managed to emerge on top, often stronger 
than ever. The end of the war in Kosovo, however, offers the 
United States and its allies an opportunity to affect 
positively the future direction of Serbia.
    Serbia's defeat in that war may convince those individuals 
who once viewed Milosevic as the savior of the Serbian nation 
that he is, in fact, responsible for the massive destruction 
and degradation of their country. The Serbian public can not 
ignore the Kosovo Serbs who have fled the province for Serbia 
proper or the disenchantment of many Yugoslav army reservists 
over the manner in which they were ordered to conduct the war. 
Further, the NATO bombing damaged Serbian infrastructure and 
exacerbated the existing economic crisis. American journalists 
have reported a widespread feeling of anger and disgust within 
Serbia that is directed at Milosevic himself for what he has 
brought on.
    Evidence of this dissatisfaction can be seen in the anti-
Milosevic demonstrations that occurred in cities throughout 
Serbia in the summer and fall of 1999. A number of town 
councils controlled by opposition parties, including that of 
Novi Sad, Serbia's second largest city, passed resolutions 
calling for Milosevic to resign. Student leaders are becoming 
more engaged in the anti-Milosevic campaign. Army reservists 
launched protests in the Serbian cities of Nis, Vranje, and 
Krusevac, primarily over the issue of unpaid wages, but there 
is hope that their frustrations may be channeled into anti-
Milosevic activity. On June 28, 1999, the leader of the Serbian 
Orthodox Church, Patriarch Pavle, called for the resignation of 
Milosevic for the good of the Serbian people, and the leader of 
the Church in Kosovo, Bishop Artemije, repeatedly spoke out 
against Milosevic's actions in that province.
    The war in Kosovo also highlighted the differences between 
Serbia and Montenegro, Serbia's junior partner in the so-called 
Federal Republic of Yugoslavia. (Serbia and Montenegro have 
asserted the formation of a joint independent state--the 
Federal Republic of Yugoslavia [FRY]--but the entity has not 
been formally recognized by the United States.) Montenegro's 
President Milo Djukanovic is seen as the only political leader 
in the FRY who has successfully withstood a challenge from 
Milosevic. In the face of extreme pressure, Djukanovic managed 
to maintain stability in Montenegro during the war, forestall 
Yugoslav army attacks against Montenegro, and retain his ties 
to the United States and the West. The functioning, democratic, 
multi-ethnic governing coalition in Montenegro, which is the 
beneficiary of American political and financial support, serves 
as a model to Serbs as to the benefits their country could 
enjoy in the post-Milosevic period.
    The Committee notes that the United States and Western 
Europe missed an opportunity to encourage democratic change in 
Serbia in the winter of 1996-1997, when a coalition of 
opposition parties won municipal elections in 14 of Serbia's 17 
largest cities. After Milosevic nullified the election results, 
tens of thousands of Serbian citizens took to the streets in 
massive and sustained demonstrations, demanding that the 
election results be recognized. Milosevic ultimately was forced 
to do so, but the opposition coalition disintegrated soon 
thereafter as a result of infighting and competing personal 
ambition. The United States did little to foster cooperation 
among the leaders of the opposition parties during that time, 
and Milosevic emerged even stronger.
    There are approximately 6,900 American soldiers 
participating in the NATO-led Stabilization Force in Bosnia, 
and 5,600 American soldiers participating in the NATO-led 
Kosovo Force in Kosovo. The Committee believes that the United 
States will be forced to continue to send U.S. armed forces to 
participate in peacekeeping missions in the Balkans until we 
address the underlying cause of the problem in the region--
Slobodan Milosevic. The Serbia Democratization Act provides 
substantial assistance to forces within Serbia who seek the 
removal of Milosevic and the development of a government in 
Serbia that is based on democratic principles and the rule of 
law, and that respects internationally recognized human rights.
    The Committee wishes to make clear that it has no quarrel 
with the people of Serbia, but that the problem is with its 
leadership.
    Senators Helms, Lugar, Gordon Smith, Lieberman, Lautenberg, 
Hagel, Edwards, DeWine, McCain, Hatch, Voinovich, Coverdell, 
and Biden sponsored the Serbia Democratization Act (S. 720) 
which was introduced in the Senate on March 25, 1999. The 
Committee unanimously approved by voice vote the Serbia 
Democratization Act with an amendment at a business meeting on 
July 28, 1999. On November 4, 1999, the Senate unanimously 
approved the Serbia Democratization Act.
    The Committee held four hearings in 1999 on the situation 
in the former Yugoslavia. Both Administration and private 
sector witnesses appeared at these hearings, which are 
described earlier in the report.
Sec. 501. Short Title
    This section names the title as the ``Serbia 
Democratization Act of 2000''.
Sec. 502. Definitions
    Definitions of four terms used in the title are included.

           Subtitle A--Support for the Democratic Opposition

Sec. 511. Findings and Policy
Sec. 512. Assistance to Promote Democracy and Civil Society in 
        Yugoslavia
Sec. 513. Authority for Radio and Television Broadcasting
    The Committee urges the Administration to support actively 
the democratic opposition in Yugoslavia to develop a legitimate 
and viable alternative to the Milosevic regime. To promote and 
strengthen institutions of democratic government and the growth 
of an independent civil society in Yugoslavia, including ethnic 
tolerance and respect for human rights, this section authorizes 
$50 million in U.S. assistance for Fiscal Year 2001.
    In particular, the Committee notes that providing support 
to the independent media is critical. During the war in Kosovo, 
the Milosevic regime passed and implemented a law strictly 
limiting freedom of the press and intimidated independent media 
from operating within the country. After the war in Kosovo 
began, the Broadcasting Board of Governors acted quickly to 
enhance Voice of America and Radio Free Europe broadcasts into 
Serbia, as well as to establish a ring of transmitters around 
the country so that the Serbian people would have access to 
accurate news accounts of the war. Yet, the Committee notes 
that VOA and RFE services should not preclude the United States 
from assisting the indigenous media to develop the capacity to 
serve more effectively as alternative news sources to the 
state-controlled media.
    Along with independent media, the Committee urges the 
Administration to focus its assistance on the development of 
democratic political parties, the rule of law, non-governmental 
organizations, local governance, and a free market economy.
    The Committee expects that non-governmental organizations 
with a history of working in political party development, media 
training, judicial reform and other similar activities will be 
most effective in providing the assistance authorized in the 
bill. Opportunities may exist for other non-traditional 
providers of assistance (including international organizations) 
to manage programs that further the goals of the title. The 
Committee expects, however, that United States assistance to 
the democratic opposition will not be funneled through the 
United Nations or any of its affiliated organizations.
    Section 512(b) of the bill states that the President should 
take all necessary steps to ensure that no funds or other 
assistance is provided to the Government of Yugoslavia or the 
Government of Serbia, except for the purposes permitted under 
the title. The Committee recognizes that a situation may arise 
in which the Administration believes it consistent with the 
goals of the title to provide assistance to a Ministry of the 
Serbian or Yugoslav Government that it thinks is working to 
bring about democratic change in Serbia. Yet, the Committee 
notes that providing such assistance may be misconstrued by the 
Serbian people as indicative of United States support of the 
current regime (particularly given the virtual monopoly of the 
state-controlled media). The Committee urges the Administration 
to provide funds or other assistance to governmental entities 
only when it is certain that those entities are actively 
supportive of the goals of the title and only when it is 
certain that Milosevic will be unable to benefit, either 
directly or indirectly, from doing so. The Committee believes 
that as long as the Milosevic government remains in power, it 
is unlikely that the United States will find instances in which 
providing assistance to governmental entities will further the 
purposes of the title.
    The Committee discourages any member of the Administration 
from meeting, negotiating, engaging in discussions, or 
otherwise interacting with Slobodan Milosevic. As an indicted 
war criminal, he should be treated as a pariah. For too long 
the United States treated Milosevic as our partner for peace in 
the region and failed to cultivate relationships with 
opposition leaders. Milosevic used his relationship with the 
United States to bolster his personal authority and represented 
meetings with U.S. officials as proof that the United States 
supported his regime. The only topics of conversation the 
Committee envisions as appropriate between United States 
officials and Milosevic concern his ceding power to democratic 
forces in Yugoslavia or surrendering himself to the 
International Criminal Tribunal for the former Yugoslavia at 
The Hague.
    To reward the positive developments in Montenegro, section 
512(c) allows the provision of assistance to that republic as 
long as the government of Montenegro is committed to democratic 
principles and the rule of law, and respects human rights. If 
undemocratic elements were to take over governing functions in 
Montenegro, the Committee would expect the Administration 
immediately to stop dispensing all U.S. assistance to that 
republic.
    As noted earlier, the Committee is pleased with the 
response of the Broadcasting Board of Governors (BBG) to 
counteract the Milosevic regime's propaganda during the war in 
Kosovo. The Committee urges the BBG to continue to further the 
open communication of ideas and information in both the Serbo-
Croatian and Albanian languages.

      Subtitle B--Assistance to the Victims of Serbian Oppression

Sec. 521. Findings
Sec. 522. Sense of Congress
Sec. 523. Assistance
    The Committee expresses its horror at the atrocities that 
took place in Kosovo beginning with the first assault by 
Serbian Interior Ministry troops in February 1998. Though it is 
likely that the exact number of innocent civilians killed 
during the course of the conflict will never be known, reports 
of mass graves, the discovery of bodies of the elderly, women, 
and children, as well as first hand accounts of atrocities from 
Kosovar Albanian refugees provide the impetus for the United 
States to give assistance to those who survived the brutal 
attacks and ethnic cleansing.
    This subtitle authorizes assistance for relief, 
rehabilitation, and reconstruction in Kosovo and for refugees 
and persons displaced by the conflict. The Committee notes, 
however, that it expects our European allies to provide the 
bulk of reconstruction assistance to Kosovo, given the 
disproportionately large financial burden that the United 
States bore during the air campaign against Serbia. 
Reconstruction projects that the Committee deems appropriate 
under this section include such small-scale projects as 
winterizing housing in Kosovo. Although many Kosovar Albanian 
refugees made their way from Albania and Macedonia to other 
countries in Europe, the Committee does not intend for United 
States assistance for refugees to be provided to countries such 
as Germany, France, or Russia.

                  Subtitle C--``Outer Wall'' Sanctions

Sec. 531. ``Outer Wall'' Sanctions
Sec. 532. International Financial Institutions Not In Compliance with 
        ``Outer Wall'' Sanctions
    For several years the Administration has maintained the 
policy of upholding the so-called ``outer wall'' of sanctions 
against Yugoslavia until that country fulfilled five 
conditions. The sanctions are: no United States support for 
economic assistance for Yugoslavia from any of the 
international financial institutions; no United States support 
for the inclusion of Yugoslavia in international organizations 
such as the United Nations and the Organization for Security 
and Cooperation in Europe; and no restoration of full U.S. 
diplomatic relations with Yugoslavia. The conditions required 
to be met prior to any relief from the outer wall are: 
agreement on a lasting settlement on Kosovo; full compliance 
with the Dayton Accords that ended the war in Bosnia; 
implementation of internal democratic reform; settlement of the 
succession issues with the other republics that emerged from 
the break-up of the Socialist Federal Republic of Yugoslavia; 
and cooperation with the International Criminal Tribunal for 
the former Yugoslavia.
    During the negotiations at Wright-Patterson Air Force Base 
in Dayton, Ohio that led to the end of the war in Bosnia, 
Milosevic made clear the importance to Serbia of sanctions 
relief. Then-Assistant Secretary of State for European and 
Canadian Affairs Richard Holbrooke described the sanctions as 
the Administration's main bargaining chip with Milosevic. As a 
result of Milosevic's signing of the Dayton Accords on behalf 
of the Bosnian Serbs, the Administration immediately lifted 
almost all of the sanctions that were aimed against Serbia at 
the time.
    The outer wall of sanctions has had an impact on the 
Serbian economy, and their effect has been magnified as a 
result of the need to repair infrastructure damage caused by 
the NATO air campaign. Although the subtitle allows the 
President to relax the outer wall of sanctions once he 
certifies that the Government of Yugoslavia has made 
significant progress in meeting the stated conditions, the 
Committee expects the Administration to use a rigorous standard 
when defining significant progress.
    The Committee notes that such a certification will be 
virtually impossible as long as Milosevic remains in power. The 
U.S. should do nothing that could potentially prolong his 
regime, and maintaining the outer wall sanctions, particularly 
the denial of loans, grants, and other assistance from the 
international financial institutions, is critical to 
accelerating his removal from the political scene. In 
particular, the Committee expects U.S. representatives to the 
international financial institutions to work actively to 
prevent any assistance from those institutions from going to 
Serbia or Yugoslavia.
    If any of the international financial institutions proceed 
with any such assistance to Serbia or Yugoslavia over the 
objection of the United States, the Committee urges the 
Administration to withhold from payment of the U.S. share of 
any replenishment of that institution an amount equal to that 
of the loan or assistance granted.

             Subtitle D--Other Measures Against Yugoslavia

Sec. 541. Blocking Assets in the United States
    Section 541 blocks all assets in the United States of, or 
in the name of, the Government of Yugoslavia or the Government 
of Serbia and forbids the exportation to Serbia of any U.S. 
goods, technology, or services. The Committee acknowledges that 
in certain instances, the Secretary of the Treasury, in 
conjunction with the Secretary of State, may license specific 
transactions on a case-by-case basis if they determine that 
doing so will contribute to furthering the purposes of the 
subtitle (which codifies specific measures against Yugoslavia). 
The Committee expects the criteria for licensing will rarely be 
met, except in the case of providing assistance to the 
democratic opposition in Serbia.
    This section also requires the Secretary of the Treasury to 
take all actions necessary to carry out the blocking of Serbian 
and Yugoslav assets and to fulfill his responsibilities to 
enforce the Executive Orders issued in response to the Kosovo 
conflict (13088 of June 9, 1998 and 13121 of April 30, 1999). 
The Committee notes that these Executive Orders should continue 
to be fully enforced until the Milosevic regime is replaced by 
a democratic government.
Sec. 542. Suspension of Entry into the United States
    With regard to Section 542, the Committee notes that the 
visa ban imposed by the European Union against several hundred 
high ranking Serbian government officials, business cronies of 
the regime, and Milosevic family members has been highly 
effective at highlighting to these persons that their 
participation in or association with the Milosevic government 
has personal consequences. The Committee encourages the 
President to use the authority granted to him by Section 212 
(f) of the Immigration and Nationality Act to deny entry into 
the United States not just to the senior leadership of the 
Serbian and Yugoslav government, as this section requires, but 
also to a much broader category of individuals affiliated with, 
or supportive of, the Milosevic regime.
    Though the senior leadership of the Montenegrin government 
is exempted from this provision, if the Milosevic government 
were to act against that republic and install its loyalists in 
positions of political power, the Committee recommends that the 
President determine that the entry of those individuals to the 
United States would be detrimental to the interests of the U.S. 
and, under the authority of Section 212 (f) of the Immigration 
and Nationality Act, deny them entry as well.
Sec. 543. Prohibition on Strategic Exports to Yugoslavia
    Section 543 forbids the Serbian or Yugoslav military, 
police, prison system, or national security agencies from 
gaining access to United States computers, computer software, 
or similar goods or technology. Those institutions have proven 
to be repressive and anti-democratic and should not have access 
to any technology that would benefit them in any way.
Sec. 544. Prohibition on Loans and Investment
    Section 544 prohibits any loans, credit guarantees, 
insurance, financing, or other similar assistance to be 
extended by the United States government to the Government of 
Yugoslavia or the Government of Serbia. The Committee expects 
the Administration to withhold all U.S. financial support from 
Serbia with the exception of the assistance authorized under 
this title and humanitarian aid.
    This section also prohibits any United States national from 
making or approving any loan or other extension of credit to 
the Government of Yugoslavia or the Government of Serbia, or to 
any entity owned or controlled by either government.
    The Committee recognizes Serbia's need for foreign 
investment given the backward state of its economy and the 
destruction caused by the NATO bombing. The ban on U.S. 
government and private loans and investment is not designed to 
punish the Serbian people, but to highlight the fact that the 
removal of Milosevic from power will have a substantial, 
positive impact on the Serbian economy as a whole, as well as 
on the lives of individual Serbs.
Sec. 545. Prohibition of Military-to-Military Cooperation
    Section 545 prevents the United States from providing any 
assistance, including defense articles or services, to the 
armed forces of the Government of Yugoslavia or the Government 
of Serbia. For the purposes of the section, the Committee 
intends the prohibition also to apply to the Interior Ministry 
police forces. The Committee also expects any cooperation 
between the U.S. armed forces and the Yugoslav or Serbian armed 
forces to be strictly limited to that delineated in the 
Military-Technical Agreement that ended the war in Kosovo, i.e. 
verification of Serbian and Yugoslav compliance with the 
provisions in the Agreement.
Sec. 546. Multilateral Sanctions
    The Committee recognizes that the effect of the measures 
imposed against Yugoslavia will be greater if other countries 
take similar actions. Section 546 urges the President to seek 
to coordinate a comprehensive strategy with other countries to 
further the purposes of the title and to encourage other 
countries to impose similar measures against Yugoslavia. Their 
decision whether or not to do so, however, should not affect 
the Administration's commitment to maintain or enforce the 
sanctions currently in place or those imposed by this title.
Sec. 547. Exemptions
    Given Kosovo's de facto status as an international 
protectorate, Section 547 exempts the province from being 
subject to the restrictions against Yugoslavia that are imposed 
in the bill. Similarly, the restrictions do not apply to 
Montenegro as long as the government of Montenegro is committed 
to democratic principles and the rule of law, and respects 
human rights. If undemocratic elements were to take over 
governing functions in Montenegro, the Committee expects the 
Administration to apply this title's restrictions equally to 
that republic. The Committee considers the restrictions to be 
Sections 531 and 532 in Subtitle C and Sections 541 through 545 
in Subtitle D.
Sec. 548. Waiver; Termination of Measures Against Yugoslavia
    Section 548 allows the President to waive the measures 
against Yugoslavia for successive one-year periods if he 
determines that it is important to the United States national 
interest or that significant progress has been made in 
Yugoslavia in establishing a government based on democratic 
principles and the rule of law, and that respects 
internationally recognized human rights. The Committee notes 
that progress in establishing such a government should be 
interpreted rigorously, and it expects the Administration to 
exercise its right to use this waiver only when it is clear and 
demonstrable that the use of the waiver will assist the 
establishment of a democratic government in Yugoslavia. 
Further, the Committee expects that if the Administration 
chooses to invoke the waiver, it does so with regard to 
specific measures in the title, not to all the measures in the 
bill in one broad waiver. The Committee also expects a detailed 
justification for exercising the waiver option, including how 
using the waiver for each particular section will contribute to 
the goals of the title.
    Invoking the waiver without the 15-day advance 
Congressional notification specified in the bill should be done 
only in exceptional, emergency situations. The Committee 
anticipates that such a situation will arise rarely, if ever.
    The Committee notes that the termination of the 
restrictions imposed by this title should occur only in a post-
Milosevic environment in which the governments of Yugoslavia 
and Serbia are committed fully and irreversibly to democracy 
and the rule of law, and respect for human rights.
Sec. 549. Statutory Construction
    With regard to Section 549, the Committee does not intend 
for the people of Yugoslavia to be denied access to 
humanitarian assistance, including food and medicine, as a 
result of the measures against Yugoslavia in the title. The 
Committee acknowledges that providing such assistance may be 
subject to approval by the appropriate federal agencies. The 
Committee does not consider humanitarian assistance to include 
assistance for any reconstruction in Serbia, however basic. The 
Committee emphasizes that in no case should the United States 
allow the export of any agricultural commodity or medicine that 
could contribute to the development of a chemical or biological 
weapon.

                  Subtitle E--Miscellaneous Provisions

Sec. 551. The International Criminal Tribunal for the former Yugoslavia
    The Committee is distressed at the lack of cooperation 
given by Yugoslavia to the International Criminal Tribunal for 
the former Yugoslavia (ICTY). Yugoslav officials have 
consistently rejected the jurisdiction of the Tribunal over 
events in Kosovo, and prior to the end of the war, actively 
impeded the Tribunal from investigating alleged war crimes 
committed there.
    In light of the Tribunal's May 24, 1999, indictment of 
Milosevic for crimes against humanity, the Committee urges the 
United States to support fully the investigation of Milosevic 
and to provide all appropriate information to the Office of the 
Prosecutor of the ICTY that the U.S. intelligence community 
collects or has collected to support that investigation. The 
Committee considers all information that directly or indirectly 
relates to the investigation to be appropriate and urges the 
Administration to transfer as much information as possible, 
taking into account the need adequately to protect intelligence 
sources and methods.
    This section requires the Administration to submit a report 
to Congress, in classified form if necessary, once every 180 
days that describes the information that was provided to the 
Office of the Prosecutor of the ICTY during that time period. 
The Committee is interested in a detailed list of the 
information that was provided to the ICTY, but emphasizes that 
it does not intend the report to compromise in any way 
intelligence sources and methods.
Sec. 552. Sense of Congress with Respect to Ethnic Hungarians in 
        Vojvodina
    Given Milosevic's pattern of fomenting ethnic conflict to 
maintain his personal power, the Committee is greatly concerned 
about the well-being of the ethnic Hungarian population in the 
northern Serbian province of Vojvodina. This population has 
been subject to restrictions of freedom similar to those 
endured by the ethnic Albanians in Kosovo, and more recently 
has suffered harassment, intimidation, and direct threats from 
the government. Milosevic's vulnerability at this time may lead 
him to embark on an armed attack against the Vojvodina 
Hungarians to divert attention from protests against his 
government and to further consolidate his power.
    This section urges the President to condemn publicly 
Belgrade's intimidation and harassment of the ethnic Hungarians 
in Vojvodina and encourages the Administration to monitor 
closely the situation in that province. In calling upon U.S. 
allies to pay substantial attention to establishing guarantees 
for the ethnic Hungarians and other minorities in Vojvodina and 
to consult with elected leaders in the province about self-
administration, the Committee notes that it expects any 
discussions about the status of Vojvodina to take into 
consideration the wishes of the whole population of the 
province. Ethnic Hungarians and other minorities in Vojvodina 
must have the ability to participate in all discussions about 
local governance. The Committee notes that in accordance with 
the Helsinki Final Act, the Committee does not endorse the 
secession of Vojvodina from Yugoslavia. The Committee expects 
that the establishment of a functioning democratic system of 
government in Belgrade will also benefit ethnic minorities in 
Vojvodina.
Sec. 553. Ownership and Use of Diplomatic and Consular Properties
    After the dissolution of the Socialist Federal Republic of 
Yugoslavia (SFRY), representatives from Serbia-Montenegro 
effectively took over five SFRY diplomatic properties in 
Washington, D.C. and two SFRY diplomatic properties in New 
York, N.Y. Representatives of the other successor states 
(Bosnia and Herzegovina, Croatia, the Former Yugoslav Republic 
of Macedonia, and Slovenia) were denied access to such property 
and have received no financial compensation for their share of 
ownership. In March and June 1999, the United States government 
assumed custody of these properties and currently the 
Department of State controls access to them. Because Serbia has 
blocked progress on the resolution of successor state issues, 
however, the ownership and future use of these properties has 
not been settled. If Serbia continues to refuse to engage in 
good faith negotiations on the status of these properties, the 
Committee urges the President to take steps to return those 
properties to the possession of the other successor states in 
accordance with international law.
Sec. 554. Transition Assistance
    The Committee notes that once the Milosevic government has 
been replaced by one that is committed to democracy and the 
rule of law, and that respects human rights, the United States 
should provide substantial assistance to help Yugoslavia make 
the transformation to a democratic country. Nearly a decade of 
warfare has placed Yugoslavia even further behind other 
countries in Central and Eastern Europe that also emerged from 
communism and centrally planned economic systems.
    Section 554 authorizes transition assistance to Yugoslavia 
once the President determines that Yugoslavia is committed to 
democracy and the rule of law, and respects human rights. The 
Committee expects that such assistance will be provided only 
when the Administration is confident that the post-Milosevic 
leaders of Yugoslavia are on an irreversible course toward a 
democratic, free market system.
    Section 554 also requires the Administration to prepare a 
detailed plan for providing and distributing the transition 
assistance and to submit the plan to the Congress within 120 
days of enactment of the legislation. The Committee notes that 
the preparation of the plan offers the Administration the 
opportunity to devise a comprehensive strategy for how the 
United States will respond to the emergence of a democratic 
government in Yugoslavia and will facilitate prompt action when 
such an event does occur. The Committee expects the plan to 
have a specific dollar figure associated with it and to address 
sectors and projects in Serbia that the financial assistance 
will immediately benefit, including by facilitating foreign 
investment. The Committee further notes that publicizing the 
plan to the people of Yugoslavia can make clear to them the 
benefits of pressing for a democratic government and can be 
helpful in encouraging them to work toward that end. The Voice 
of America and Radio Free Europe should immediately publicize 
the plan in its South Slavic broadcasts, and the Administration 
should work to ensure that independent media outlets working in 
and around Serbia are familiar with its details.

                  TITLE VI--MICROENTERPRISE ASSISTANCE

    This title is based largely on S. 1463, the Microenterprise 
for Self-Reliance Act of 1999, introduced on July 29, 1999. 
Despite the enormous growth of the world's economy, over a 
billion people in dozens of countries subsist on less than one 
dollar per day. The benefits of economic growth have eluded 
approximately one-fifth of the world's population, leaving 
tremendous poverty in developing countries around the world. 
Accordingly, one of the greatest challenges facing the 
international development community has been finding ways to 
extend economic opportunities to these individuals.
    Since the 1970s, microenterprise development programs have 
been one of the most successful ways to support the end of 
poverty in the developing world. Unlike other assistance 
programs, microenterprise lending programs reach the poorest of 
the poor with credit that is repaid by individual borrowers 
with interest. Microlending programs have demonstrated that if 
structured correctly, poverty lending programs can help lift 
the poorest members of society out of poverty, while repaying 
loans. In fact, the client repayment rate of these programs has 
been between 95-98%.
    The objective of this title is to ensure the future success 
of international microenterprise grant and loan programs 
administered worldwide by the U.S. Agency for International 
Development (USAID). These programs foster self-sufficiency 
rather than financial dependence.
Sec. 601. Short Title
    This section provides the short title for the act will be 
``Microenterprise for Self-Reliance Act of 2000''.
Sec. 602. Findings and Declarations of Policy
    This section contains 18 findings on the demand for 
microenterprise credits, the success with past programs and the 
need for their expansion in the developing world.
Sec. 603. Purposes
    This section sets forth five main purposes of the Act, each 
aimed at bringing microenterprise development to the forefront 
of the U.S. assistance effort. The continuation and expansion 
of commitments made by USAID in its 1994 and 1997 
Microenterprise Initiatives are provided for, as are increases 
in the amount of assistance devoted to financial services and 
complimentary business development services reaching the 
poorest sector in developing countries, particularly women.
Sec. 604. Microenterprise Development Grant Assistance
    This section adds a new section 132 to the Foreign 
Assistance Act of 1961 to authorize appropriations for grants 
and govern the use of all microenterprise resources.
    Subsection (b)(1) of section 132 authorizes the President 
to provide grant assistance for programs to increase the 
availability of credit and other business development services 
to microenterprises. Subsection (b)(2) stipulates that this 
assistance be provided through organizations that have a 
capacity to develop and implement microenterprise development 
programs.
    This section also targets half of all microenterprise 
resources to support programs that directly serve the poorest 
of the poor. These programs are identified as those that 
provide credit and other financial services to entrepreneurs 
who are very poor, with loans defined by the following loan 
proxies: $1,000 or less in the Europe and Eurasia region, $400 
or less in the Latin America region, and $300 or less in the 
rest of the world (in 1995 U.S. dollars).
    Subsection (d) of the new section 131 authorizes 
$150,000,000 for fiscal year 2001 to carry out these 
initiatives. Such funds are to include local currencies, are to 
be drawn from Part I (including chapter 4 of Part II) of the 
Foreign Assistance Act of 1961 and from the SEED Act of 1989, 
relating to aid to East European nations.
Sec. 605. Micro- and Small Enterprise Development Credits
    This section amends section 108 of the Foreign Assistance 
Act of 1961 to authorize the President to provide assistance to 
increase the availability of credit to micro- and small 
enterprises to ensure the stable growth of developing 
countries. This assistance includes loans and guarantees to 
credit institutions, as well as training programs for both 
lenders and microentrepreneurs.
Sec. 606. Microfinance Loan Facility
    This section adds a new section 133 to the Foreign 
Assistance Act of 1961 authorizing the establishment within 
USAID of a United States Microfinance Loan Facility to pool and 
manage the risk from natural disasters, war or civil conflict, 
national financial crisis, or short-term financial movements 
that threaten the long-term development of U.S.-supported 
microfinance institutions. The USAID Administrator is 
authorized to make loans or loan guarantees, drawing from 
resources of the Facility, to such institutions in order to 
prevent bankruptcy caused by the risks noted above. During 
fiscal year 2001, Congress must be advised 15 days in advance 
of making available funds from the Facility.
    Subsection (c)(3) gives the USAID Administrator the 
authority to issue credit assistance on such terms and 
conditions, including fees, as the Administrator may determine. 
The principal amount of loans or loan guarantees in any fiscal 
year with respect to a single event is limited to $30,000,000.
    Subsection (d) authorizes $5,000,000 for fiscal year 2001 
for the subsidy cost of the loans and for administrative 
expenses. These funds are to be drawn from those available 
under Part I of the Foreign Assistance Act of 1961.
Sec. 607. Report Relating to Future Development of Microenterprise 
        Institutions
    This section is intended to lay a foundation for the future 
development of the microfinance sector. Subsection (a) requires 
the President to prepare and transmit to Congress a report on 
the most cost-effective methods and measurements for increasing 
the access of poor people to credit, other financial services, 
and related training. In particular, the Administration should 
develop a comprehensive strategy to advance the global 
microenterprise strategy in a way that maintains market 
principles while assuring the very poor, particularly women, 
obtain access to financial services.
Sec. 608. United States Agency for International Development as Global 
        Leader and Coordinator of Bilateral and Multilateral 
        Microenterprise Assistance Activities
    This section contains findings and a sense of the Congress 
that the development of the microfinance sector should be 
included in multilateral discussions and institutions such as 
the International Fund for Agricultural Development (IFAD) and 
the United Nations Development Program (UNDP). In addition, the 
Secretary of the Treasury should instruct each U.S. Executive 
Director of the Multilateral Banks (MDBs) to advocate the 
development of a coherent and coordinated strategy to support 
the microenterprise sector.
Sec. 609. Definitions
    Section 609 contains definitions of terms used in this 
title.

               TITLE VII--DEFENSE AND SECURITY ASSISTANCE

                         Purposes of Title VII

    The Committee notes that, during the past 10 years, the 
pool of money available for security assistance to United 
States allies and partners has decreased dramatically. At the 
same time, the number of countries with which the United States 
needs to engage, whether to combat proliferation or terrorism 
or to bolster regional security, has steadily increased. For 
instance, three countries of the former Warsaw Pact are now 
NATO members and receive both Foreign Military Financing and 
International Military Education and Training from the United 
States. Other countries which were once part of the Soviet 
Union itself are now free and independent, and enjoy important 
security relationships with the United States. An even larger 
number of countries, now free from the Soviet orbit, are also 
free to pursue closer military relationships with the United 
States. Thus, for instance, this title makes Mongolia eligible 
for Department of Defense expenditures relating to excess 
defense articles for the first time in history.
    The Committee is concerned that a steadily increasing 
number of countries are pursuing a relationship with the United 
States which is funded by a steadily decreasing amount of 
money. Additionally, 98 percent of the Foreign Military 
Financing (FMF) account is currently committed to just three 
countries as a result of various peace accord commitments. Even 
if the President's budget request is fully funded, only 
$183,200,000 in FMF would actually be available for the United 
States to build security ties to the rest of the world. This 
title seeks to arrest and reverse this decline. Section 701 
authorizes an increase of $89,000,000 in grant Foreign Military 
Financing over the President's budget request, and will bring 
the total amount of truly ``discretionary'' FMF spending to 
$272,200,000. Even so, this will not return security assistance 
to 1990 spending levels.
    Similarly, Section 721 fully funds the International 
Military Education and Training program to maximum course 
capacity. Section 731 consolidates all nonproliferation 
funding, except for assistance to the International Atomic 
Energy Agency, under a single funding line. In so doing, it 
will protect nonproliferation assistance from numerous foreign 
aid restrictions that govern the current appropriations 
process. This title fully funds the President's request and 
authorizes funding for one additional, Committee-mandated 
nonproliferation and export control initiative in Malta and 
funds the International Science and Technology Centers (ISTC) 
program at maximum capacity. This title will strengthen the 
hand of the newly-created Nonproliferation Bureau of the 
Department of State in shaping a coherent U.S. nonproliferation 
and export control policy. Likewise, the President's 
antiterrorism funding request is fully authorized, and the 
Committee has applied additional resources to ensure that the 
fledgling Terrorist Interdiction Program is funded in fiscal 
year 2001 at the same level as in fiscal year 2000.
    In total, this title authorizes $3,894,000,000 in security 
assistance funding. This is an increase of $119,000,000 over 
both fiscal year 2000 levels and the President's budget request 
for fiscal year 2001. Title VII is the only portion of the bill 
which contains authorization numbers.
    The Committee notes that, from a Congressional budgetary 
scoring standpoint, the Navy anticipates that Section 791 
(which authorizes ship transfers) will generate up to 
$420,000,000 in revenue to the United States Treasury. 
Likewise, Section 776 authorizes the sale of aging defense 
articles to Israel, and therefore may recoup a modest amount of 
money to the Treasury. Finally, if Section 772 is properly 
implemented by the Department of Defense and the Department of 
State, it will result in a decrease in transfers of aging 
defense articles on a grant basis in favor of the sale of those 
items at reduced prices. The revenue that would be generated by 
such a change in U.S. policy and practice, while impossible to 
estimate at this time, could be substantial.

              Subtitle A--Military and Related Assistance

             Chapter 1--Foreign Military Financing Program

Sec. 701. Authorization of Appropriations
    Section 701 authorizes $3,627,000,000 for fiscal year 2001 
for the Foreign Military Financing (FMF) Program. The 
administration request for fiscal year 2001 for FMF (grants and 
loans) is $3,538,200,000. The actual level of FMF funding for 
fiscal year 2000 is $3,420,000,000.

                      Chapter 2--Other Assistance

Sec. 711. Defense Drawdown Special Authorities
    Section 711 increases the special drawdown authorities of 
defense articles and services from defense stocks, and for 
military education and training, to assist foreign countries 
from $100 million to $150 million.
    Current law grants the President the authority to draw down 
from existing stocks within the Department of Defense to assist 
in emergencies or when he determines it is in the national 
interest. This section expands the authority by making 
nonproliferation and antiterrorism activities eligible for the 
special drawdown authorities relating to defense articles and 
services, and to military education and training, to assist 
foreign countries. The increase in financial authority is meant 
to allow for incorporation of nonproliferation and 
antiterrorism objectives without sacrificing the President's 
flexibility to respond to unforeseen emergencies and foreign 
policy objectives relating to combating international 
narcotics, international disaster assistance, and migration and 
refugee assistance.
Sec. 712. Increased Transport Authority
    Section 712 raises the space available weight limitation 
that is imposed on the transportation of excess defense 
articles (EDA) from 25,000 pounds to 50,000 pounds.
    Currently, a variety of limitations are imposed on the use 
of Department of Defense funds to transfer excess defense 
articles to foreign nations and international organizations. 
Moreover, even when such an expenditure is authorized, free 
transportation of EDA may only be provided on a space available 
basis if it is in the U.S. national interest to do so, the 
recipient nation is a developing nation which receives less 
than $10,000,000 in FMF and IMET, and the weight of the items 
to be transferred does not exceed 25,000 pounds.
    In limiting the weight of defense articles to no more than 
25,000 pounds, current law will preclude the transportation of 
a large number of United States Coast Guard ``self-righting'' 
patrol craft which have recently been declared excess but which 
weigh approximately 33,000 pounds. Over the next four years, 
more than 50 of these vessels will be eligible for transfer to 
foreign nations under the EDA program. However, the current 
weight limitation will preclude shipment of the vessel on a 
space available basis to foreign countries. This, in turn, will 
increase the cost of transfer of the defense article to would-
be recipients, and likely would cause many nations to decline 
U.S. offers of these vessels. As a result, the United States 
Coast Guard could incur unnecessary expenses due to delays in 
finding foreign recipients of the craft, and possibly be forced 
to demilitarize vessels for whom a foreign customer could not 
be secured. Raising the weight limit to 50,000 pounds will 
obviate this problem.

       Subtitle B--International Military Education and Training

Sec. 721. Authorization of Appropriations
    Section 721 authorizes $65,000,000 to carry out 
international military education and training (IMET) of 
military and related civilian personnel of foreign countries. 
The administration request for fiscal year 2001 for IMET is 
$55,000,000. The actual level of FMF funding for fiscal year 
2000 is $50,000,000,000. IMET is provided on a grant basis to 
students from allied and friendly nations, and is designed to 
expose foreign students to the U.S. professional military 
establishment and the American way of life, including the U.S. 
regard for democratic values, respect for individual and human 
rights and belief in the rule of law. Section 721 authorizes 
funding of the IMET program at its maximum capacity. Funding 
beyond this level cannot be absorbed due to limitations in 
number of courses and classes.
Sec. 722. Additional Requirements Relating to International Military 
        Education and Training
    Section 722 amends Chapter 5 of part II of the Foreign 
Assistance Act of 1961, relating to International Military 
Education and Training (IMET), by adding two new requirements. 
First, selection of foreign personnel for the IMET program will 
be done in consultation with United States defense attaches, 
who are uniquely positioned to recommend candidates. The 
Committee is concerned to note that defense attaches are, on 
occasion, excluded from this process. By mandating 
consultation, the Committee intends to secure the complete 
involvement of defense attaches in nominating individuals for 
the IMET program. Naturally, selection of foreign personnel, 
and overall management of the IMET program, remain the 
responsibility of the Department of State.
    Section 722 also requires that the Secretary of Defense 
develop and maintain a database containing records on each 
foreign military or defense ministry civilian participant in 
education and training activities conducted under this chapter 
after December 31, 2000. This record shall include the type of 
instruction received, the dates of such instruction, whether it 
was completed successfully, and, to the extent practicable, a 
record of the person's subsequent military or defense ministry 
career and current position and location. The Committee expects 
that the record of a person's subsequent career will include 
positions held, reports of exceptional successes or failures in 
those positions, and any credible reports of involvement in 
criminal activity or human rights abuses. The Committee 
believes that such a database will improve the effectiveness of 
foreign military education and training activities by enabling 
the Department of Defense to better determine: what follow-up 
training may be most appropriate for previously trained 
personnel; which courses are most effective in improving the 
performance of foreign military personnel; and where personnel 
are located in foreign defense establishments who, by virtue of 
their prior training, are most likely to understand U.S. modes 
of operation and share U.S. standards of military 
professionalism.

       Subtitle C--Nonproliferation and Export Control Assistance

Sec. 731. Nonproliferation and Export Control Assistance
    Every major category of U.S. foreign assistance, except for 
nonproliferation and export control assistance, is governed 
under multiple sections, or entire chapters, of the Foreign 
Assistance Act of 1961 (FAA). The FAA contains chapters 
authorizing international narcotics control, military 
assistance, peacekeeping operations, antiterrorism assistance, 
IMET, development assistance, and funding for international 
organizations, to name a few.
    Although the President has declared a state of national 
emergency to combat the proliferation of weapons of mass 
destruction and associated delivery systems, the FAA does not 
contain a specific chapter to authorize and direct such a 
clearly important form of U.S. foreign aid. Funding for the 
nonproliferation and export control activities of the 
Department of State derives from a variety of disparate 
authorizations passed at various times. As a result, this 
category of funding does not enjoy the same status as other 
types of foreign assistance. Appropriation of funds for 
nonproliferation and export control activities is cobbled 
together annually by the Appropriations Committee under a 
catch-all account that also includes demining and contributions 
to certain international organizations. Thus the Department of 
State is invariably forced to make ``trade-offs'' between 
nonproliferation and export control funding and funding for 
other activities. Finally, other nonproliferation and export 
control funding is contained within the amounts appropriated 
for the ``newly independent'' states of the former Soviet 
Union, and is thus subject to restrictions if the President 
cannot certify that Russia is not proliferating technology to 
Iran (which he has, to date, been unable to do).
    By adding a new chapter to Part II of the FAA, the 
Committee intends U.S. nonproliferation and export control 
assistance to be given equal stature with other authorized 
activities. The Committee expects the Department of State, in 
the future, to consolidate all of its nonproliferation funding, 
except for funding for the International Atomic Energy Agency 
(which is governed by a separate authorization under the FAA), 
into a single, integrated request to be authorized under 
Chapter 9 of the FAA. The Committee further expects that the 
Nonproliferation Bureau of the Department of State will be 
given authority over the use of funds authorized by this 
chapter.
    The new chapter to the FAA incorporates existing 
authorities under Sections 503 and 504 of the FREEDOM Support 
Act (which are the principal extant authorities for 
nonproliferation and export control activities). The new 
sections 581 and 582 carry forward those authorities, but also 
emphasize the need for programs to bolster the indigenous 
capabilities of foreign countries to monitor and interdict 
proliferation shipments. Section 583 directs the President to 
ensure that sufficient funds are allocated to the transit 
interdiction effort. To this end, the section contains 
authority for the Secretary of State to establish a list of 
countries that should be given priority in U.S. transit 
interdiction funding. The Committee suggests that the initial 
designation of the transit country list include those countries 
mentioned in the fiscal year 1999 Congressional presentation 
document as ``key global transit points'' (e.g. the countries 
of Central Asia and the Caucasus), the Baltics, Central and 
Eastern Europe, Singapore, Hong Kong, Taiwan, Cyprus, Malta, 
Jordan, and the UAE).
    Section 584, which will be part of the new chapter of the 
FAA, makes clear that two of the same limitations which apply 
to antiterrorism assistance also apply to nonproliferation and 
export control assistance. Section 584 permits the use of 
unrelated accounts to furnish services and commodities 
consistent with, and in furtherance of, Chapter 9 of the FAA. 
However, it requires that the foreign nation receiving such 
services or commodities pay in advance for the item or service, 
and that the reimbursement be credited to the account from 
which the service or commodity is furnished or subsidized. 
Foreign Military Financing may not be used to make such 
payments. Section 584 also makes clear that Chapter 9 does not 
apply to information exchange activities conducted under other 
authorities of law.
    Section 585 authorizes $129,000,000 for activities 
conducted pursuant to Chapter 9 of the FAA. This amount 
captures several activities currently appropriated within the 
Nonproliferation, Anti-Terrorism, Demining, and Related 
Programs Account, and the FREEDOM Support Act Assistance for 
the New Independent States (NIS) of the Former Soviet Union. 
The covered programs, at the administration's requested levels 
of funding for FY2001, are: $15,000,000 for the 
Nonproliferation and Disarmament Fund; $14,000,000 for Export 
Control Assistance; $45,000,000 for the Science Centers; and 
$36,000,000 in NIS export control and border assistance 
funding. The administration request for fiscal year 2001 thus 
totals $110,000,000 for all Chapter 9 authorized activities.
    The Committee's increase of $19,000,000 above the 
administration's requested levels is intended to support two 
Committee initiatives contained in sections 733 and 734. 
Specifically, this increase supports funding of the 
International Science and Technology Centers at maximum 
capacity (which requires an additional $14,000,000); and 
establishment of a static cargo x-ray facility in Malta as the 
first of the transit interdiction programs to be managed under 
the new authorities of the FAA (a $5,000,000 program).
Sec. 732. Nonproliferation and Export Control Training in the United 
        States
    Section 732 authorizes the expenditure of $2,000,000 in 
nonproliferation and export control funding for the training 
and education of personnel from friendly countries in the 
United States. The Department of State already engages in a 
vigorous training program, and funds numerous activities which 
are implemented by Department of Commerce personnel. However, 
much of this training is conducted overseas. The Committee 
urges the Department of State to place emphasis on bringing a 
select group of officials from friendly governments back to the 
United States to engage in an intensive training program which 
draws upon the expertise of all relevant U.S. government 
agencies. This training should focus on those nonproliferation 
and export control activities which would most benefit from 
being conducted in the United States. Finally, the Committee is 
concerned with declining travel and training budgets of U.S. 
government agencies tasked with combating proliferation. The 
Committee hopes this trend will be arrested, but urges the 
Department of State, in the interim, to seek to offset the 
effects of this decline using the funds authorized under this 
section.
Sec. 733. Science and Technology Centers
    Section 733 authorizes $59,000,000 in nonproliferation and 
export control funding for the Department of State's 
international science and technology centers. The 
administration request for fiscal year 2001 is $45,000,000. The 
actual level of funding for fiscal year 2000 is $59,000,000. 
The Committee expects that this not only will fully fund all 
ongoing activities at these centers, but will allow a 
significant expansion in the number of research grants offered 
to Russian scientists formerly employed in the development of 
missiles and chemical and biological warfare programs. However, 
this authorization is contingent upon the Secretary of State 
first certifying to the Congress that intra-executive branch 
agreements are in place which will govern, and coordinate, the 
operation of the centers with all relevant U.S. government 
agencies. The Committee also cautions that Section 1132 of the 
``Admiral James W. Nance and Meg Donovan Foreign Relations 
Authorization Act, Fiscal Years 2000 and 2001'' (P.L. 106-113) 
made clear that no U.S. government assistance may be provided 
to any person who is involved in offensive chemical or 
biological warfare programs.
Sec. 734. Trial Transit Program
    Section 734 authorizes $5,000,000 in nonproliferation and 
export control funding to establish a static cargo x-ray 
facility in Malta, provided that the Government of Malta first 
gives satisfactory assurances that Maltese customs officials 
will engage in random cargo inspections of container traffic 
passing through the Malta Freeport, and will utilize the x-ray 
facility to examine random shipping containers.
    Malta is the ideal location for a trial transit 
interdiction program. The country's location, along one of the 
busiest trade routes in the world, has made it a crucial 
shipping center. The Malta Freeport is ideally situated as a 
redistribution point, linking trade between Europe, Africa, the 
Middle East, and Asia. For instance, direct shipments from the 
Black Sea to Malta take less than 15 days. From various ports 
in Europe, Russia, and Asia, large cargo vessels offload their 
containers into the Freeport. The containers are then stored 
temporarily and are reloaded onto smaller ``feeder'' vessels 
which service ports in North Africa, including Libya.
    The Freeport went into operation in April, 1990. According 
to Maltese Freeport documents, that year alone, 231 vessels 
offloaded 94,500 containers. Since that time, the volume of 
activity at the port has steadily increased. In 1996, the 
number of ships calling at the Freeport reached 1,383. Nearly 
600,000 containers transited the facility that year. For 1999, 
according to a January 10, 2000 article in a Maltese daily 
newspaper, 1,464 container ships utilized the Freeport. At this 
time, estimates of container traffic are not available to the 
Committee, but presumably the number well exceeded half a 
million.
    The steadily rising level of container traffic in the 
Freeport is noteworthy. The volume can be expected to increase 
further if plans to further expand the port's services are 
implemented, thereby making one of the world's largest 
deepwater ports all the more robust.
    The Malta Freeport Act, which establishes the Freeport as a 
legally separate entity from Malta proper, creates specific 
proliferation concerns. Currently the Freeport has its own 
Minister, and customs functions have been conferred upon the 
Freeport Authority which he oversees. Maltese Customs does not 
receive information on transshipments, and may not operate in 
the Freeport without permission. While the Freeport has never 
refused such a request, the fundamental lack of transparency, 
and the inability of Maltese customs to conduct random 
inspections, means that effective export enforcement is 
impossible at this time.
    The Committee is concerned with this situation since Malta 
is undeniably being used as a transit point by various entities 
engaged in weapons proliferation. For instance, in one instance 
of excellent cooperation between the Freeport and Maltese 
Customs officials, a shipment of chemical warfare precursor 
chemicals was seized. Similarly, the United Kingdom recently 
uncovered a massive shipment of missile parts slated for air 
delivery to Libya via Malta. While this latter incident did not 
involve the Freeport, it nevertheless is further evidence that 
various countries are seeking to use Malta as a transit point 
for deliveries of dangerous commodities to North Africa.
    The Committee notes that Maltese-U.S. relations have 
steadily improved over the past several years. The Government 
of Malta has demonstrated a genuine commitment to 
nonproliferation and bolstering its export control capability. 
Therefore the Committee favors initiation of a trial transit 
program with Malta, provided that the Maltese Government takes 
the necessary steps to render this program viable (namely, by 
opening the Freeport to periodic, random inspections by Maltese 
Customs officials). The Committee hopes that this program, if 
successful, might serve as a model for programs in other 
designated transit countries.

                  Subtitle D--Antiterrorism Assistance

Sec. 741. Authorization of Appropriations
    Section 741 authorizes $73,000,000 in antiterrorism 
assistance for fiscal year 2001. The administration request for 
anti-terrorism assistance for fiscal year 2001 is $72,000,000 
(including the request for the Terrorist Interdiction Program 
(TIP)). The actual level of funding for fiscal year 2000, 
including the TIP, is $38,000,000.

         Subtitle E--International Security Assistance Planning

  Chapter 1--Establishment of a National Security Assistance Strategy

Sec. 751. National Security Assistance Strategy
    Section 751 requires the annual preparation of a National 
Security Assistance Strategy (NSAS) to be submitted in 
connection with the annual foreign operations budget request.
    The purpose of the NSAS is to establish a clear and 
coherent multi-year plan, on a country by country basis, 
regarding U.S. security assistance programs. The current 
process utilized by the United States Government is entirely 
insufficient and is run on an ad hoc basis. Seldom is a 
thoroughly researched, thoroughly justified proposal for 
security assistance put forward to the Committee. This, in 
turn, has encouraged parallel Congressional initiatives and 
earmarks which often are put forward with a comparable level of 
foresight and planning. As a result, it seems that the 
Political-Military Affairs Bureau of the Department of State 
does not currently possess sufficient control over the 
allocation of security assistance funds, despite its clear 
mandate to manage these programs (except for nonproliferation 
assistance).
    Currently there is no clearly articulated organizing 
principle for U.S. military assistance. Nor is there a coherent 
set of benchmarks, or measurements, against which the success 
of individual programs with various countries can be measured. 
As a result, military assistance funding proposals are often 
vague and seemingly unjustified. For instance, the most recent 
Congressional presentation documents justify the provision of 
FMF for Southeast Europe as ``contributing to regional 
stability in Southeast Europe by promoting military reform.'' 
No further elaboration is given. It is hardly surprising, in 
light of this sort of justification, that the administration's 
security assistance requests seldom are fully funded by 
Congress.
    The Committee expects the Department of State to transform 
fundamentally the way that the United States conceptualizes 
security assistance. Utilizing a model more akin to the 
Department of Defense's planning process, the Department of 
State is expected to pull together a comprehensive five year 
plan, which will evolve on an annual basis, setting forth a 
specific programmatic objective for each country and explaining 
how the requested funds will accomplish that objective. 
Additional, secondary objectives are to be added as necessary. 
The Committee believes that the plan for each country should be 
developed at the U.S. mission level, and should be coordinated 
by the Department of State with all relevant U.S. government 
agencies with a role in U.S. security assistance programs. The 
bottom-up document that results is then to be coordinated with 
the top-down policy guidance set forth in the National Security 
Strategy of the United States, and by the Secretary of State 
(in coordination with the Secretary of Defense and the Chairman 
of the Joint Chiefs of Staff).
    The Committee expects the resultant document to be a 
comprehensive National Security Assistance Strategy which 
provides a robust, detailed justification for security 
assistance funding that is requested. Rather than the current 
process, which yields unclear and unmeasurable objectives for 
U.S. security assistance programs, it is expected that the NSAS 
process will ensure that the type and amount of assistance 
given a country is determined programmatically. Progress can 
thus be measured by the administration and the Congress. In 
turn, the Committee anticipates that such an initiative, led by 
the Political-Military Affairs Bureau of the Department of 
State, will substantially improve Congressional understanding 
of the administration's initiatives and bolster Congressional 
support for the President's military assistance request.
Sec. 752. Security Assistance Surveys
    Section 752 authorizes the use of $2,000,000 in Foreign 
Military Financing to conduct security assistance surveys in 
foreign countries for the purpose of preparing the National 
Security Assistance Strategy required pursuant to Section 751.

              Chapter 2--Allocations for Certain Countries

Sec. 761. Security Assistance for New NATO Members
    Section 761 authorizes $35,000,000 in grant FMF and 
$7,000,000 in IMET funding for the three new NATO members (e.g. 
the Czech Republic, Hungary, and Poland). The administration 
request for fiscal year 2001 for these three countries is 
$30,300,000 in grant FMF and $5,100,000 in IMET funding. The 
actual level of grant FMF funding for the three for fiscal year 
2000 is $22,000,000. The actual level for IMET funding for 
fiscal year 2000 is $4,570,000.
    Section 761 also directs the President to give priority to 
supporting the objectives set forth by the Senate in its 
resolution of ratification for the protocols adding the three 
new NATO members. Specifically, the Committee expects the 
administration to ensure that FMF and IMET funding is used to 
support the ability of Poland, Hungary, and the Czech Republic 
to fulfill their collective defense requirements under Article 
V of the Washington Treaty. The Committee also expects the 
administration to use the additional funds provided to expand 
U.S. efforts to improve the ability of these countries to 
protect themselves from hostile foreign intelligence services.
Sec. 762. Increased Training Assistance for Greece and Turkey
    Section 762 authorizes $1,000,000 in IMET funding for 
Greece and $2,500,000 in IMET funding for Turkey for fiscal 
year 2001. The administration request for IMET for fiscal year 
2001 is $25,000 for Greece and $1,600,000 for Turkey. The 
actual level of IMET funding for Greece for fiscal year 2000 is 
$25,000. For Turkey, the actual level of IMET funding for 
fiscal year 2000 is $1,500,000.
    The Committee is encouraged by numerous indications of a 
warming in Greek-Turkish relations. This improvement has 
manifested itself in several ways, ranging from Greek agreement 
to Turkish candidacy for membership in the European Union to 
the large number of bilateral agreements that have recently 
been signed during reciprocal visits of foreign ministers 
(including agreements on transportation, tourism, cultural 
heritage, and customs issues). In the interest of bolstering 
this process the Committee authorizes a substantial increase in 
funds for International Military Education and Training (IMET).
    It is the Committee's expectation that the administration 
will use these additional funds to support the process of 
rapprochement between Greece and Turkey. Specifically, the 
Committee urges the administration to ensure that $1,000,000 of 
the additional resources, evenly divided between the two 
countries, is used for joint professional military education of 
Greek and Turkish officers. The Committee notes that this type 
of training will build personal relationships between the 
militaries of these two important NATO allies, and will 
reinforce the process that is already underway.
Sec. 763. Minimum Allocation for Egypt and Israel
    Section 763 authorizes $1,980,000,000 in grant FMF for 
Israel and $1,300,000 in grant FMF for Egypt for fiscal year 
2001. This corresponds to the administration request for fiscal 
year 2001. The actual level of grant FMF funding for fiscal 
year 2000 is $3,120,000 for Israel (including the Wye 
Supplemental) and $1,325,000 for Egypt (including the Wye 
Supplemental). In addition, this section directs that FMF funds 
for Israel for fiscal year 2001 be disbursed not later than 30 
days after enactment of this Act or on October 31, 2000, 
whichever is later. To the extent that Israel makes a request, 
FMF funds shall, as agreed by Israel and the United States, be 
available for advanced weapons systems. Not less than 26.3 
percent of such funds can be used for procurement in Israel of 
defense articles and defense services, including research and 
development. The Committee expects that Israel's annual aid 
package will be provided under the usual terms, including early 
disbursal of both the ESF and FMF, offshore procurement of at 
least 26.3% of its military aid, and that the aid be provided 
in the form of a grant.
Sec. 764. Security Assistance for Certain Countries
    Section 764 provides individual authorizations of grant FMF 
and IMET funding for ten countries. Specific authorizations are 
detailed on the following two charts:

                                        GRANT FOREIGN MILITARY FINANCING
----------------------------------------------------------------------------------------------------------------
                                                                              Administration
                        Country                            Authorized for      Request for     Actual for FY2000
                                                               FY2001             FY2001
----------------------------------------------------------------------------------------------------------------
Estonia................................................     \1\ $6,500,000         $6,350,000         $4,000,000
Latvia.................................................      \1\ 6,500,000          5,350,000          4,000,000
Lithuania..............................................      \1\ 7,500,000          6,500,000          4,400,000
Philippines............................................          5,000,000          2,000,000          1,000,000
Georgia................................................          5,000,000          4,500,000          3,000,000
Malta..................................................          1,000,000  .................  .................
Slovenia...............................................          4,000,000          3,500,000          2,000,000
Slovakia...............................................          8,400,000          8,400,000          2,600,000
Romania................................................         11,000,000         11,000,000          6,000,000
Bulgaria...............................................          8,500,000          8,500,000          4,800,000
----------------------------------------------------------------------------------------------------------------
\1\ Section 764 authorizes an aggregate total of $20,500,000 in grant FMF for the three Baltic countries, but
  does not provide individual authorizations within that total. Thus this is the recommended apportionment.



                                  INTERNATIONAL MILITARY EDUCATION AND TRAINING
----------------------------------------------------------------------------------------------------------------
                                                                              Administration
                        Country                            Authorized for      Request for     Actual for FY2000
                                                               FY2001             FY2001
----------------------------------------------------------------------------------------------------------------
Estonia................................................      \1\$1,250,000           $800,000           $700,000
Latvia.................................................      \1\ 1,250,000            750,000            700,000
Lithuania..............................................      \1\ 1,500,000            750,000            700,000
Philippines............................................          1,500,000          1,400,000          1,400,000
Georgia................................................          1,000,000            475,000            400,000
Malta..................................................          1,000,000            100,000            100,000
Slovenia...............................................          1,000,000            700,000            650,000
Slovakia...............................................          1,000,000            700,000            650,000
Romania................................................          1,500,000          1,300,000          1,100,000
Bulgaria...............................................          1,200,000          1,100,000          1,000,000
----------------------------------------------------------------------------------------------------------------
\1\ As in the case of FMF, Section 764 authorizes an aggregate total of $4,000,000 in IMET for the three Baltic
  countries, but does not provide individual authorizations within that total. Thus this is the recommended
  apportionment.


Sec. 765. Border Security and Territorial Independence
    Section 765 provides an integrated authorization of 
security assistance funds for the GUAM countries (e.g. Georgia, 
Ukraine, Azerbaijan, and Moldova) and Armenia. Specifically, 
Section 765 authorizes a package of $20,000,000 in grant FMF, 
$10,000,000 in nonproliferation and export control assistance, 
$5,000,000 in IMET funding, and $2,000,000 in antiterrorism 
assistance.
    These funds must be expended in accordance with the 
individual requirements of their respective accounts. Thus, for 
instance, the $20,000,000 in grant FMF may only be utilized for 
activities authorized in connection with the FMF program. 
Likewise, nonproliferation and export control funds must be 
spent on the objectives set forth under Chapter 9 of the 
Foreign Assistance Act of 1961. Similar restrictions apply to 
the other authorized forms of security assistance. Thus, as 
assistance to Azerbaijan under this section is still subject to 
section 907 of the FREEDOM Support Act, such assistance may be 
provided only for antiterrorism or nonproliferation and export 
control purposes.
    The funds authorized under Section 765, totaling 
$37,000,000, must be spent for the purpose of assisting the 
GUAM countries and Armenia in strengthening control of their 
borders, and for the purpose of promoting the independence and 
territorial sovereignty of these countries. These funds also 
are specifically authorized, pursuant to Section 499C of the 
Foreign Assistance Act of 1961, for the purpose of enhancing 
the abilities of the national border guards, coast guard, and 
customs officials of the GUAM countries and Armenia to secure 
their borders against narcotics trafficking, proliferation, and 
transnational organized crime.
    Finally, it bears emphasizing that the Committee strongly 
supports the cooperation on political, security, and economic 
matters promoted and facilitated through the GUAM group. The 
United States should promote these endeavors as part of its 
strategy to help these states consolidate their independence 
and strengthen their sovereignty, to help resolve and prevent 
conflicts in their respective regions, and to promote democracy 
and human rights. In addition, the Committee strongly supports 
political, security, and economic cooperation between the 
United States and Armenia.

                      Subtitle F--Other Provisions

Sec. 771. Utilization of Defense Articles and Services
    Section 771 amends Section 502 of the Foreign Assistance 
Act of 1961 to make clear that defense articles and services 
may be furnished by the United States to foreign nations for 
antiterrorism or nonproliferation purposes (in addition to 
other currently authorized purposes).
Sec. 772. Reduction in Valuation of Defense Articles Not Intended For 
        Replacement
    Section 772 amends Section 21(a) of the Arms Export Control 
Act to allow the President to reduce the price that a foreign 
country must pay for a defense article that is to be sold from 
current United States stocks if the President does not intend 
to replace that item. Presumably any such item (i.e. that will 
not be replaced if sold to a foreign country) is either excess 
to the defense needs of the United States or nearing 
obsolescence. However, if the President is to reduce the price 
charged for such items, he must first determine that such a 
price reduction would either serve the national security 
interests of the United States or facilitate the sale of a 
similar or new defense article that is manufactured in the 
United States.
    The Committee favors this modification to the AECA in light 
of the fact that few sales from stocks of excess or obsolete 
items are actually occurring. In contrast, the Committee is 
notified annually that the U.S. Government has donated millions 
of dollars of excess defense articles (EDA) to foreign nations. 
The Defense Security Cooperation Agency has frequently 
justified these numerous transfers of grant EDA by claiming 
that sale of the item is unlikely at ``actual market value'' 
(as currently required under the AECA). It is argued that the 
United States has little chance of reaping financial dividends 
from the sale of aging military equipment, but that the United 
States should at least reap foreign policy benefits by giving 
away such equipment for free. The exact formulation used by the 
Department of Defense in its Congressional notification is that 
``Transferring these excess items under section 516, FAA, is 
preferable to selling it, after taking into account the 
potential proceeds from, and likelihood of, such sale, and the 
comparative foreign policy benefits that may accrue to the 
United States as a result of either a transfer or sale.''
    The Committee is willing to amend the Arms Export Control 
Act to permit the administration to negotiate the sale of such 
excess defense articles. The sale of defense articles, even at 
greatly reduced prices, is preferable in most cases to a simple 
grant transfer. In those cases where the defense article will 
simply be destroyed or demilitarized if it is not transferred 
in a timely fashion to a foreign nation, the Committee agrees 
with use of the 516 authority. In other cases, there may be 
compelling foreign policy reasons for such a transfer. However, 
in general the Committee hopes that the Department of State and 
the Department of Defense will use this new authority to 
negotiate as many sales as possible of excess U.S. defense 
articles that otherwise would be given away on a grant basis.
Sec. 773. Congressional Notification
    Section 773 amends the Arms Export Control Act to ensure 
that the Congress continues to be notified of transfers of U.S. 
Munitions List items to foreign nations. A number of 
initiatives are underway within the administration to improve 
the process by which the United States engages in defense trade 
with key NATO allies. Section 773 amends the relevant sections 
of the Arms Export Control Act, thereby ensuring that these 
provisions, if utilized in the manner contemplated by the 
administration, will not inadvertently sacrifice Congressional 
prerogatives relating to notification of arms sales.
Sec. 774. National Security Exemption
    Section 774 directs that the prohibition contained in 
Section 907 of the FREEDOM Support Act not apply to any 
activity reported pursuant to title V of the National Security 
Act. Generally, activities reported pursuant to the title V of 
the National Security Act of 1947 are not covered by foreign 
policy-related limitations or restrictions on assistance. The 
formulation used in Section 774 corresponds directly with that 
found in many places in U.S. law. For instance, in P.L. 106-
113, (the ``Admiral James W. Nance and Meg Donovan Foreign 
Relations Authorization Act, Fiscal Years 2000 and 2001'') 
Section 1132 prohibits the United States Government from 
providing assistance to any person who is involved in the 
research, development, design, testing, or evaluation of 
chemical or biological weapons for offensive persons. An 
exception to this prohibition is made for any activity being 
conducted in accordance with title V of the National Security 
Act of 1947.
    Section 774 merely extends this customary practice of 
exempting activities reportable under the National Security Act 
of 1947.
Sec. 775. Additions to U.S. War Reserve Stockpiles for Allies
    Pursuant to Section 514 of the Foreign Assistance Act of 
1961, as amended, the Department of Defense can make additions 
to the War Reserve Stockpiles for Allies stockpiles only as 
periodically provided for in legislation. For fiscal year 2000, 
the President requested authority to make additions to 
stockpiles in South Korea ($40,000,000) and Thailand 
($20,000,000). The Committee provided this authority under 
Section 1231 of the ``Admiral James W. Nance and Meg Donovan 
Foreign Relations Authorization Act, Fiscal Years 2000 and 
2001'' (P.L. 106-113).
    For fiscal year 2001 the Department of Defense has asked 
for an additional $50,000,000 authorization for the Korean 
program. Section 775 provides this authority for fiscal year 
2001.
Sec. 776. Transfer of Certain Obsolete or Surplus Defense Articles in 
        the War Reserve Stockpiles for Allies to Israel
    Periodically the Department of Defense requests 
authorization to transfer defense articles out of War Reserve 
Stockpiles to the host country in question. The defense 
articles are either sold to the host nation, or provided in 
exchange for relief from charges associated with storage and 
stockpile maintenance. The Committee provided authority to make 
such transfers to South Korea and Thailand pursuant to Section 
1232 of the ``Admiral James W. Nance and Meg Donovan Foreign 
Relations Authorization Act, Fiscal Years 2000 and 2001'' (P.L. 
106-113).
    Section 776 fulfills the Department of Defense's request 
for authority to engage in transfers to the Government of 
Israel which are similar to those previously authorized for 
South Korea and Thailand.
Sec. 777. Stinger Missiles in the Persian Gulf Region
    Section 777 permits the replacement, on a one-for-one 
basis, of Stinger missiles possessed by Bahrain and Saudi 
Arabia that are nearing the scheduled expiration of their 
shelf-life.
Sec. 778. Export Information
    Section 778 builds upon Subtitle E of Title XII of the 
``Admiral James W. Nance and Meg Donovan Foreign Relations 
Authorization Act, Fiscal Years 2000 and 2001'' (P.L. 106-113), 
which established requirements for the creation of an Internet-
based Automated Export System both to facilitate the filing of 
Shipper's Export Declarations (SEDs), and to provide the United 
States Government with a searchable database of all exports of 
dual-use commodities. The Committee's intent was to establish a 
system that could be used by law enforcement officials and 
other U.S. agencies to identify suspicious acquisition and 
shipment patterns.
    One of the difficulties which threatens to impair the 
effectiveness of the nascent Internet system is the frequent 
failure of various freight forwarding and shipping companies to 
file their SEDs in accordance with current law. Section 778 
increases the applicable penalties from $100 to up to $1,000 
per day, with a maximum fine of $10,000. The Committee urges 
the administration to use these enhanced penalties to ensure 
that the Automated Export System contains the information 
necessary to make it of use to the relevant U.S. government 
agencies.
Sec. 779. Excess Defense Articles for Mongolia
    The Committee supports the furnishing by grant of excess 
defense articles (EDA) and services to Mongolia. Unfortunately, 
given the weak nature of its national economy, which has led to 
difficulty in funding its military budget, Mongolia cannot 
afford the cost of packing, crating, handling, and 
transportation of EDA, even if the EDA itself is provided at no 
cost. Section 779 provides the Department of Defense with the 
authority to absorb the costs of transporting EDA to Mongolia, 
thereby allowing the receipt of much needed equipment. However, 
the Committee intends to continue the practice of requiring 
from the Department of Defense a detailed description of such 
costs in each proposed transfer. Were such costs to grow beyond 
a reasonable level, the Committee's continued support for such 
authorities would be jeopardized.
Sec. 780. Space Cooperation with Russian Persons
    Section 780 amends the Arms Export Control Act, provides 
for increased reporting and certification to Congress, and 
expands the ability of the President to regulate missile-
related cooperation by providing him with the discretionary 
authority to terminate contracts in the event that he 
determines that a violation of the MTCR sanctions law (Section 
73(a)(1) of the Arms Export Control Act) has occurred.
    Currently, Chapter 7 of the Arms Export Control Act imposes 
mandatory sanctions on proliferating entities. However, those 
sanctions apply only to prospective licenses and contracts. The 
authority does not exist, within Chapter 7, to terminate an 
existing license in the event that an individual has been 
discovered to have proliferated missile technology subsequent 
to the granting of the license. This deficiency became apparent 
in discussions with the administration regarding the proposed 
co-production arrangement between Lockheed Martin and a Russian 
rocket-engine firm, NPO Energomash. Concerns had arisen 
regarding Energomash due to reports that UNSCOM had determined 
that the Russian firm may have been seeking to violate the U.N. 
sanctions and embargo on Iraq and work with the Iraqi missile 
program. Similarly, press accounts and testimony before 
Congress have suggested that Energomash-designed engines are 
present in Iran, although those engines could have come from a 
multiplicity of sources.
    Despite these concerns, the Administration elected to 
proceed with Congressional notification of the co-production 
arrangement, as it will help ensure U.S. military satellite 
launch capabilities. In responding to Committee inquiries 
regarding the Administration response should the aforementioned 
transfers be shown to have occurred (thus subjecting Energomash 
to MTCR sanctions), the Assistant Secretary of State for 
Political-Military Affairs noted that the provisions of Section 
42 of the AECA (which is a general authority to suspend, 
terminate, or amend U.S. Government authorization for defense 
transfers) would need to be employed in this case since no 
specific retroactive termination authority exists within the 
actual sanctions law. Section 780 provides that missing 
authority to the President, should he choose to utilize it. It 
is important to underscore that this authority is completely 
discretionary.
    Section 780 also requires the President to make an annual 
certification to the Committee that various Russian space and 
missile entities doing business with the United States are not 
suspected of contributing to Iran's MTCR-class ballistic 
missile program at any time since January 1, 2000. These 
certifications must be made annually for the first five years 
of a license between a U.S. firm and a Russian entity. However, 
there is no penalty in the event that a certification cannot be 
made (presumably because suspicion has arisen). The MTCR 
sanctions law only operates in the event that the President 
makes a formal determination that a transfer, or a conspiracy 
to transfer, occurred. In short, the certification required 
under Section 780 does not go beyond the annual report that the 
President is required to submit to Congress under the Iran 
Nonproliferation Act of 2000. It is nevertheless useful because 
it will ensure that the Department of State continues to focus 
on Russian entities doing business with the United States. This 
provision is also intended to encourage U.S. companies working 
with Russian space entities to maintain pressure on their 
counterparts not to proliferate technology to Iran.
    Finally, Section 780 rectifies an unintended reporting 
loophole in the Arms Export Control Act that resulted from 
amendments to integrate the Arms Control and Disarmament Agency 
within the Department of State and a subsequent decision by the 
Department of State on licensing technical exchanges and 
brokering services under Section 36 of the AECA. Specifically, 
for MTCR-related transfers governed under Section 36(b) and (c) 
which fall below the Congressional notification threshold, the 
administration currently must nevertheless submit a report to 
the Committee explaining the consistency of such a transfer 
with U.S. MTCR policy. However, MTCR-related licenses covered 
by Section 36(d) which fall below the notification threshold 
are not captured fully by this reporting requirement. Section 
780 rectifies this problem, and ensures that MTCR-related 
transfers of both Category I and Category II components and 
systems are covered under the reporting requirement.
Sec. 781. Assistance for Israel
    Section 781 sets into place the phase out of annual U.S. 
Economic Support Funds to Israel. Beginning in FY 1999, the 
United States and Israel agreed to a plan whereby Israel's 
annual economic assistance would be reduced in equal increments 
of 10 percent (equivalent to $120,000,000 per annum), resulting 
in the ultimate phase out of the ESF program. In order to 
ensure Israel's continued security in the face of the loss of 
annual economic support, Israel requested and the United States 
agreed to, an annual increase in Foreign Military Finance equal 
to half the reduced ESF amount (or $60,000,000).
    By FY 2008, the authorities of this section will result in 
an aggregate annual reduction in authorized foreign assistance 
of $600,000,000. Calculations made in this section are not 
intended to factor in rescissions or supplemental 
appropriations, and are intended to work from the original 
baseline figure from FY 1999 of $1.2 billion in ESF.

                 Subtitle G--Transfers of Naval Vessels

Sec. 791. Authority to Transfer Naval Vessels to Certain Foreign 
        Countries
    Section 791 provides authority to the President to transfer 
seventeen naval vessels to Australia, Brazil, Chile, Egypt, 
Greece, and Turkey. These naval vessels either displace in 
excess of 3,000 tons, or are less than 20 years of age. 
Therefore statutory approval for the transfers is required 
under 10 U.S.C. 7307(a).
    The four KIDD class ships, proposed to be transferred to 
the Government of Australia, were originally approved by 
Congress for transfer to Greece in fiscal year 1999 ship 
transfer legislation. However the Government of Greece did not 
accept the offer and thus subsequent authorization for 
Australia has been requested. Two KNOX class frigates are 
proposed in this section to be transferred to Greece on a grant 
basis.
    The two PERRY class frigates proposed for transfer to 
Turkey under lease/sale authority were approved by Congress to 
be transferred to Turkey by sale in the fiscal year 2000 ship 
transfer legislation. Because of Turkish financial 
uncertainties caused by recent natural disasters, however, this 
proposal, which is in addition to the sale authority previously 
granted, is needed to give Turkey some flexibility in 
determining the most appropriate means to acquire the ships.
Sec. 792. Inapplicability of Aggregate Annual Limitation on Value of 
        Transferred Excess Defense Articles
    Section 792 ensures that the value of naval vessels 
authorized for transfer by grant by this Act will not be 
included in determining the aggregate value of transferred 
excess defense articles.
Sec. 793. Costs of Transfers
    Section 793 provides that all costs are to be borne by the 
foreign recipients, including fleet turnover costs, 
maintenance, repairs, and training.
Sec. 794. Conditions Relating to Combined Lease-Sale Transfers
    Section 794 authorizes the transfer of high value ships on 
a combined lease-sale basis under Section 61 and 21 of the Arms 
Export Control Act (22 U.S.C. 2796 and 2761 respectively).
Sec. 795. Funding of Certain Costs of Transfers
    Section 795 provides authorization for the appropriation of 
funds that may be necessary for the costs of the combined 
lease-sale transfers in order to satisfy the requirements of 2 
U.S.C. 661c. These funds are authorized to be appropriated into 
the Defense Vessels Transfer Program Account, which was 
established in the fiscal year 1999 ship transfer legislation.
Sec. 796. Expiration of Authority
    Section 796 provides that the transfers authorized by this 
Act must be executed within two years of the date of enactment. 
This allows a reasonable opportunity for agreement on terms and 
for execution of the transfer.

                         Subtitle H--Definition

Sec. 797. Definition
    This section defines, for the purpose of this title, 
appropriate committees of Congress, as the Senate Foreign 
Relations Committee and the House International Relations 
Committee.

          TITLE VIII--SPECIAL AUTHORITIES AND OTHER PROVISIONS


Sec. 801. Prohibition on Assistance to Foreign Governments that Export 
        Lethal Military Equipment to Countries Supporting International 
        Terrorism
    This section broadens existing restrictions in permanent 
law on U.S. aid to governments that export lethal military 
equipment to terrorist nations. Currently, section 620H of the 
Foreign Assistance Act of 1961 (FAA) prohibits all assistance 
authorized under that Act to governments that export such 
equipment to countries the Secretary of State has determined to 
be supporting international terrorism. Section 801 amends 
section 620H to also prohibit assistance authorized under the 
Arms Export Control Act. This amendment would make section 620H 
more consistent with provisions included in Foreign Operations 
Appropriations bills since 1994 that ban all assistance, 
including that authorized by the FAA and the Arms Export 
Control Act, funded under the annual spending bill to 
governments that transfer lethal military goods to terrorist 
states.
Sec. 802. Effective Program Oversight
    Section 802 amends section 635 of the Foreign Assistance 
Act of 1961 to authorize the U.S. Agency for International 
Development to use economic assistance funds to provide program 
and management oversight for activities conducted in countries 
where the agency has no direct-hire U.S. government employee 
presence. Enactment of this authority will ensure that there is 
proper management and oversight of U.S. taxpayer funds being 
spent for countries where there is no USAID direct-hire 
presence.
Sec. 803. Termination of Expenses
    Section 803 rewrites section 617 of the Foreign Assistance 
Act of 1961. This section, which is largely based on the 
current section 617, provides authority to conduct an orderly 
wind-up of programs following the termination of assistance to 
a country. The section clarifies existing wind-up authorities 
as they pertain to the expenditure of previously appropriated 
funds and with respect to guarantees, and makes these wind-up 
authorities available to programs implemented under the Arms 
Export Control Act, as well. The language contained in section 
803 reflects the current application of section 617 to economic 
assistance programs that are being terminated.
Sec. 804. Administration of Justice
    Section 804 amends section 534 of the Foreign Assistance 
Act of 1961 (FAA) making the Administration of Justice 
authorities contained in that section available worldwide, 
instead of only in Latin America and the Caribbean. This 
section also repeals the sunset provision contained in section 
534(e) of the FAA.
Sec. 805. Change from Semiannual to Annual Reporting of Environmental 
        Impacts of MDB Assistance Proposals
    This section amends the International Financial 
Institutions Act to require USAID to submit an annual report 
identifying proposals for multilateral development bank funding 
that are likely to have an adverse impact on the environment. 
Currently this report is required semiannually.
Sec. 806. Sense of the Senate on Environmental Contamination and Health 
        Effects emanating from the Former United States Military 
        Facilities in the Philippines.
    Section 806 states the Senate view that the Secretary of 
State, together with the Defense Secretary, should work with 
the Government of the Philippines and appropriate 
nongovernmental organizations to identify environmental 
contamination and health effects emanating from U.S. military 
facilities in the Philippines after American forces departed in 
1992. The Senate further believes that the United States should 
work with the Government of the Philippines to resolve problems 
associated with the environmental contamination and health 
issues.
Sec. 807. Repeal of Obsolete Provisions
    Section 807 repeals parts or all of 37 obsolete foreign aid 
laws dating back as far as the 1950s. Most of these repeals 
have been proposed, with bipartisan support, in previous bills 
reported by the Committee but not enacted. Many were 
recommended for repeal by the Executive branch in its 1994 
foreign assistance re-write legislation, the Peace, Prosperity, 
and Democracy Act.

                           IV. Cost Estimate

    In accordance with rule XXVI, paragraph 11(a) of the 
Standing Rules of the Senate, the committee provides the 
following estimate of the cost of this legislation prepared by 
the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, April 6, 2000.
Hon. Jesse Helms,
Chairman,
Committee on Foreign Relations,
U.S. Senate,
Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for the Technical 
Assistance, Trade Promotion, and Anti-Corruption Act of 2000.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Joseph C. 
Whitehill.
            Sincerely,
                                        Steven M. Lieberman
                                     (for Dan L. Crippen, Director)
    Enclosure.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

Summary
    CBO estimates that the Technical Assistance, Trade 
Promotion, and Anti-Corruption Act of 2000 would authorize 
appropriations of $7.3 billion over the 2000-2005 period for 
economic and security assistance programs. (About $5.2 billion 
of the total would be for appropriations in 2001.) Assuming the 
appropriation of the authorized amounts, CBO estimates that 
implementing the bill would cost about $6.4 billion over the 
2000-2005 period.
    In addition to affecting discretionary spending, the bill 
would amend laws governing sales of military equipment that 
would lower offsetting receipts (a form of direct spending) by 
about $45 million a year. The bill also would affect 
governmental receipts (i.e., revenues), but by less than 
$500,000 a year. Because it would affect direct spending and 
receipts, the bill would be subject to pay-as-you-go 
procedures.
    The bill would authorize $3.9 billion for foreign military 
financing and other security assistance programs in 2001. It 
would authorize $600 million over the 2000-2003 period for a 
contribution to a trust fund to pay for a portion of the cost 
of reducing the debts of highly indebted poor countries (HIPC) 
by multilateral development banks. The bill would authorize 
$150 million for contributions to new trust funds within the 
World Bank to help developing countries fight HIV/AIDS and to 
educate orphans in sub-Saharan Africa. It would authorize $420 
million for bilateral and multilateral programs to fight 
infectious diseases and additional amounts for other programs. 
It would authorize the transfer of 17 naval vessels to foreign 
countries, authorize new assistance programs, reform procedures 
for imposing bilateral trade sanctions, and otherwise address 
foreign policy.
    The Technical Assistance, Trade Promotion, and Anti-
Corruption Act of 2000 would impose private-sector and 
intergovernmental mandates, as defined in the Unfunded Mandates 
Reform Act (UMRA). CBO estimates that the costs of those 
mandates would not exceed the thresholds established in UMRA 
($109 million in 2000 for private-sector mandates and $55 
million in 2000 for intergovernmental mandates, adjusted 
annually for inflation).
Estimated Cost to the Federal Government
    The estimated budgetary impact of the bill is shown in 
Table 1. The costs of this legislation fall within budget 
functions 150 (international affairs) and 050 (national 
defense).

 Table 1.--Estimated Budgetary Effects of the Technical Assistance, Trade Promotion, and Anti-Corruption Act of
                                                      2000
----------------------------------------------------------------------------------------------------------------
                                                             By fiscal year, in millions of dollars
                                               -----------------------------------------------------------------
                                                   2000       2001       2002       2003       2004       2005
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Budget Authority \1\......................      5,388          0          0          0          0          0
    Estimated Outlays.........................      3,587      2,830      1,314        587         56         33


Proposed Changes:
    Estimated Authorization Level.............        210      5,222        698        450        450        250
    Estimated Outlays.........................         53      2,435      1,470      1,442        569        423

Spending Under the Bill:
    Estimated Authorization Level \1\.........      5,598      5,222        698        450        450        250
    Estimated Outlays.........................      3,639      5,264      2,784      2,028        625        457

                                           CHANGES IN DIRECT SPENDING

Estimated Budget Authority....................          0         45         45         45         45         45
Estimated Outlays.............................          0         45         45         45         45         45

                                               CHANGES IN REVENUES

Estimated Revenues............................          0      (\2\)      (\2\)      (\2\)      (\2\)      (\2\)
----------------------------------------------------------------------------------------------------------------
\1\ The 2000 level is the amount appropriated for that year for economic and security assistance programs.
\2\ Less than $500,000.

Basis of Estimate
    The bill would affect spending subject to appropriation, 
direct spending, and revenues. For purposes of this estimate, 
CBO assumes appropriation of most of the authorized amounts by 
October 1, 2000. We assume that some of the funds for the HIPC 
trust fund would be provided by June 1, 2000, and that 
additional amounts for HIPC and other programs would be 
provided as needed over the 2002-2005 period. We also assume 
that outlays would follow historical patterns for the affected 
programs, or for similar programs in the case of new 
activities.
Spending Subject to Appropriation
    In some instances, the bill would authorize appropriations 
or earmark amounts for 2001 and other years. Those amounts are 
shown in Table 2. In other instances, the bill would provide 
changes in areas where no program level authorization currently 
exists. While section 10 of Public Law 91-672 requires that 
appropriations for foreign assistance be authorized by law, 
that provision is routinely waived by foreign operations 
appropriation acts. For the purpose of the estimate, changes in 
authorizations are shown in Table 3 relative to the funding 
level for 2000.
    Authorization of Program Levels.--The bill would authorize 
appropriations for program levels in several areas and earmark 
amounts in other areas.
    Foreign Military Financing. The bill would authorize the 
appropriation of $3,627 million for foreign military financing 
(FMF) in 2001. Within that amount, the bill would earmark 
$1,980 million for Israel and require the disbursement of the 
funds within 30 days of their appropriation or October 31, 
2000, whichever is the later. Requiring early disbursement 
would shift outlays of $550 million into 2001 from 2002.
    Contributions to the HIPC Trust Fund. The bill would 
authorize the appropriation of $600 million over the 2000-2003 
period for a contribution to a HIPC trust fund. That trust fund 
would be managed by the World Bank to compensate the various 
multilateral development banks for a portion of the cost of 
reducing their loans to certain countries under a proposal 
announced in June 1999, at a summit in Cologne, Germany.
    CBO assumes that the contribution under the bill would be 
funded over a three-year period with the first installment in a 
fiscal year 2000 supplemental as requested by the President. We 
also assume that the contribution would be provided as a letter 
of credit issued to the HIPC trust fund at the time a country 
and its creditors agree upon a plan for debt relief and poverty 
reduction and that the outlay would occur when the country 
satisfies all conditions in the plan. Thus, outlays would be 
spread over the next five years.
    Other World Bank Trust Funds. The bill would authorize the 
Secretary of the Treasury to negotiate with the World Bank and 
other donor countries to create two new trust funds within the 
bank. The first trust fund would provide grants to countries 
eligible to borrow from the bank to help them deal with the 
HIV/AIDS epidemic. The second trust fund would support primary 
and secondary education programs for orphans in sub-Saharan 
Africa. The bill would authorize the appropriation in 2001 of 
$100 million for a contribution to the HIV/AIDS fund and $50 
million for a contribution to the sub-Saharan Africa fund.

Table 2.--Authorizations of Program Levels in the Technical Assistance, Trade Promotion, and Anti-Corruption Act
                                                     of 2000
----------------------------------------------------------------------------------------------------------------
                                                              By fiscal year in millions of dollars
                                               -----------------------------------------------------------------
                                                   2000       2001       2002       2003       2004       2005
----------------------------------------------------------------------------------------------------------------
Foreign Military Financing:
    Authorization Level.......................          0      3,627          0          0          0          0
    Estimated Outlays.........................          0      2,030        716        834         27          7

Contributions to the HIPC Trust Fund:
    Estimated Authorization Level.............        210        150        240          0          0          0
    Estimated Outlays.........................         53        111        186        147         92         12

Other World Bank Trust Funds:
    Authorization Level.......................          0        150          0          0          0          0
    Estimated Outlays.........................          0          0          9         38         38         30

Reconstruction Assistance:
    Estimated Authorization Level.............          0        200        200        200        200        200
    Estimated Outlays.........................          0         14         76        126        156        172

Transition Assistance to Yugoslavia:
    Estimated Authorization Level.............          0          0        200        200        200          0
    Estimated Outlays.........................          0          0         50        120        157        127

Enterprise Funds:
    Estimated Authorization Level.............          0         50         50         50         50         50
    Estimated Outlays.........................          0          4         19         32         39         43

Naval Vessel Transaction Fund:
    Estimated Authorization Level.............          0         60          0          0          0          0
    Estimated Outlays.........................          0          0          0          0          0          0

Other Authorized Programs:
    Authorization Level.......................          0        737          0          0          0          0
    Estimated Outlays.........................          0        258        282         96         38         20

Other Earmarked Programs:
    Authorization Level.......................          0        248          8          0          0          0
    Estimated Outlays.........................          0         18        132         49         21         12

Total:
    Estimated Authorization Level.............        210      5,222        698        450        450        250
    Estimated Outlays.........................         53      2,435      1,470      1,442        569        423
----------------------------------------------------------------------------------------------------------------


       Table 3.--Changes in Authorizations of Appropriations as Compared to the 2000 Appropriations Levels
----------------------------------------------------------------------------------------------------------------
                                                                   By fiscal year, in millions of dollars
                                                          ------------------------------------------------------
                                                              2001       2002       2003       2004       2005
----------------------------------------------------------------------------------------------------------------
Future Funding for Israel:
  Economic Support Fund for Israel:
    Estimated Authorization Level........................       -109       -229       -349       -469       -589
    Estimated Outlays....................................       -109       -229       -349       -469       -589

Foreign Military Financing for Israel:
    Estimated Authorization Level........................   \1\ (60)        120        180        240        300
    Estimated Outlays....................................   \1\ (60)        120        180        240        300

Special Drawdown Authority:
    Estimated Authorization Level........................         50         50         50         50         50
    Estimated Outlays....................................         38         47         49         49         50

Total Changes from 2000:
    Estimated Authorization Level........................        -59        -59       -119       -179       -239
    Estimated Outlays....................................        -71        -62       -120       -180       -239
----------------------------------------------------------------------------------------------------------------
\1\ The amount for 2001 is included in the authorized amounts shown in Table 2 and is not added into the total
  for this table.


    Based on experience with other facilities operated by 
multilateral development banks, CBO estimates that it will take 
the bank and donor community more than one year to organize the 
operations of the trust fund and to begin making grants. CBO 
assumes that project selection and subsequent grants would 
augment lending by the bank, thus limiting administrative 
overhead. We also assume that the appropriated amounts would be 
provided to the trust fund as a letter of credit that would be 
drawn upon as needed to finance the grants, thus spreading 
outlays over a number of years. Using those assumptions, CBO 
estimates that approximately 75 percent of the authorized 
amounts would be disbursed over the next five years. CBO also 
estimates that the costs of negotiations and reporting 
requirements would be negligible.
    Reconstruction Assistance. The bill would authorize the use 
of disaster assistance funds for reconstruction in general and 
for Kosovo in particular. The cost of reconstruction from 
natural or man-made disasters is usually many multiples of the 
cost of immediate relief. CBO assumes that funding for disaster 
assistance would double to finance reconstruction, an increase 
of $200 million per year in new funding. CBO estimates that the 
resulting spending would increase by $544 million over the next 
five years.
    Transition Assistance to Yugoslavia. The bill would 
authorize the President to provide assistance to Yugoslavia 
should he determine that the country is committed to democratic 
principles and the rule of law, and respects internationally 
recognized human rights. Countries in Eastern Europe and 
Eurasia have undertaken dramatic changes in the last decade, 
and the United States has supported their transition with large 
multiyear assistance programs. Assuming that Yugoslavia will 
undergo a similar transition in 2002, CBO estimates that 
spending would increase by $454 million over the next five 
years.
    Enterprise Funds. The bill would authorize the President to 
use development assistance or the economic support fund to 
support private-sector enterprise funds outside Eastern Europe 
and the new independent states of the former Soviet Union. The 
President has used existing authority to support enterprise 
funds in those two regions over the past decade. Those funds 
range in size from $30 million to $260 million with the typical 
capitalization of $50 million. CBO estimates that the new 
enterprise funds would increase spending by $137 million over 
the next five years assuming one new enterprise fund a year 
with a grant of $50 million each.
    Naval Vessel Transaction Fund. The bill would authorize the 
transfer of 17 naval vessels to foreign countries. The bill 
would authorize the sale of eight vessels by installments to be 
paid over a number of years. The other nine would be given 
away.
    CBO estimates the transfers would not affect outlays 
because it does not expect any of the eight authorized sales to 
take place under the bill and because there would be no forgone 
receipts from giving away the other nine vessels. If the 
government did sell the eight ships in installments of more 
than 90 days, such sales would meet the definition of direct 
loans subject to the requirements of the Federal Credit Reform 
Act of 1990 and would require an appropriation for the cost of 
the subsidy, which the bill would authorize in such sums as 
would be necessary. CBO estimates that the subsidy 
authorization would amount to about $60 million based on 
information from the Department of Defense and military 
attaches that the asking price for the eight ships would be 
approximately $260 million dollars. Because CBO expects that 
the countries would prefer that their ships be produced 
locally, we expect that the sales of those eight ships and 
consequent outlays and offsetting receipts would not occur. 
That is, we estimate no outlays from the $60 million 
authorization, and no collections of sales receipts.
    Other Authorized Programs. The bill would also authorize 
appropriations for four sets of programs as follows:

   $420 million to fight infectious diseases--$360 
        million for bilateral assistance to fight HIV/AIDS and 
        tuberculosis, $50 million for a contribution to the 
        Global Alliance for Vaccine Initiative, and $10 million 
        for a contribution to the International AIDS Vaccine 
        Initiative;
   $202 million for nonproliferation and antiterrorism 
        assistance;
   $65 million for international military education and 
        training; and
   $50 million to promote democracy in Yugoslavia.

Based on historical spending patterns for similar programs, CBO 
estimates that appropriation of the authorized amounts would 
increase outlays by $694 million over the next five years.
    Other Earmarked Programs. The bill would earmark funds not 
otherwise authorized for various programs:

   $150 million increase for microenterprise grants;
   $60 million for certain environmental programs;
   $25 million for East Timor;
   $16 million for transition assistance to Sudan over 
        a two-year period; and
   $5 million for a new microfinance loan facility.

The earmarks would increase spending by $232 million over the 
next five years, assuming appropriation of the authorized 
amounts.
    Changes in Authorizations Of Appropriations.--In addition 
to authorizing program levels, the bill contains provisions 
that would lead to changes in future spending, assuming the 
appropriations of the necessary funds, but for which no amounts 
are authorized or earmarked. In Table 3, those implicit changes 
to future funding levels are shown relative to the funding 
level for 2000. Because these changes relate to programs not 
currently authorized and not authorized in this bill, the net 
change in outlays shown in Table 3--totaling -$672 million over 
the 2001-2005 period--are not included in either Table 1 or 
Table 2.
    Future Funding for Israel. The bill contains provisions 
that would combine to lower future aid to Israel. One provision 
would gradually eliminate grants to Israel from the economic 
support fund by reducing the authorization of future 
appropriations by $120 million a year through 2008. (In 2001, 
the reduction would amount to $11 million less or $109 million 
because of the across-the-board cut required by Public Law 106-
113.) Another provision would authorize that future FMF funding 
for Israel be increased by $60 million each year over the same 
period.
    Special Drawdown Authority. The bill would raise by $50 
million per year the limit on the President's authority to draw 
upon the resources of the Department of Defense (DoD) for 
various needs, including international emergencies. It would 
add antiterrorism and nonproliferation assistance to the 
purposes for which the special authority could be used. Other 
provisions of the bill would authorize the use of DoD's 
resources to transport excess defense articles to Mongolia and 
would double the tonnage limit on excess defense articles that 
DoD may ship on a space available basis. Assuming the 
appropriation of the necessary funds, CBO estimates that the 
provisions could increase spending by $233 million over the 
next five years.
Direct Spending
    CBO estimates that the bill would lower offsetting receipts 
for the Department of Defense by $225 million over the next 
five years and would have other insignificant effects on direct 
spending.
    Discounted Sales of Defense Equipment.--Section 772 would 
authorize the President to sell defense articles not intended 
to be replaced at reduced prices if it would facilitate the 
sale of new defense articles or if it served the national 
interest. Under current law, the President can sell excess 
defense articles at a market-determined price or give the items 
away. Not all defense articles covered by this provision are 
considered excess to U.S. defense needs; however, section 772 
would apply in either case. CBO estimates that if the new 
authority would be used to lower prices by 5 percent to 10 
percent, offsetting receipts to DoD would fall by $40 million 
per year.
    Stockpiles Transfers.--The bill would permit the Secretary 
of Defense to augment defense appropriations over the next five 
years by exchanging items in the War Reserve Stockpile for 
Allies with Israel for cash, services, waiver of charges, and 
other items of value. Under current law, DoD has the authority 
to sell defense items from stock, but the cash proceeds from 
sales are returned to the Treasury. CBO expects that under the 
bill DoD would barter with Israel instead of selling items to 
it. CBO estimates that if the bill were enacted forgone sales 
would total about $5 million a year based on information from 
DoD.
    Financing the Cost of the HIPC Trust Fund.--Public Law 106-
113 authorized the U.S. Executive Director of the International 
Monetary Fund (IMF) to vote for the Fund's plan to revalue a 
portion of its gold holdings and to transfer resources held in 
a special reserve account to a trust fund to be used for debt 
relief. That law permits the IMF to use only 9/14 of such 
earnings for debt relief. The bill would strike that 
restriction, but CBO does not expect that change to have a 
budgetary impact.
    The revaluation and transactions with member countries will 
lower the IMF's net income by an estimated $120 million a year. 
Lower income for the IMF could affect the U.S. budget if the 
IMF should lower the rate of interest that it pays on the U.S. 
reserve position in the Fund. Based on information from the 
Treasury Department, CBO assumes the United States would oppose 
reducing the rate of remuneration.
    Trade Sanctions Reform and Export Enhancement.--The bill 
would exempt medicine, medical devices, and commercial sales of 
agricultural commodities from current and future unilateral 
economic sanctions imposed by the United States on a foreign 
country or entity, unless the Congress enacts a joint 
resolution approving a report by the President describing and 
justifying the proposed sanctions. Current sanctions would 
continue, however, on sales of agricultural commodities 
supported with certain federal export subsidies or financing. 
The bill would require that any such unilateral sanction 
terminate two years after its effective date unless the 
Congress approves an extension.
    The bill could affect direct spending if unilateral 
agricultural sanctions are imposed less frequently or are of 
shorter duration than under current law. CBO has no basis for 
predicting the likelihood, duration, or market effects of 
future sanctions, or the likelihood of future Congressional 
action to approve or disapprove of such sanctions. But the bill 
would not affect most federally supported sales of agricultural 
commodities, and thus, CBO estimates that enacting this 
provision would probably have no significant budgetary impact.
    Other Direct Spending Provisions.--The bill contains other 
provisions that would directly affect spending; however, CBO 
estimates that their budgetary impact would not be significant.
    Section 802 would provide the authority to deobligate funds 
and reobligate them for the purpose of an orderly closure of 
programs that are forced to terminate under provisions of the 
Foreign Assistance Act. The authority would include the 
international military education and training and foreign 
military financing programs. The bill would provide authority 
to make an equitable settlement of termination claims by 
contractors under certain relatively rare circumstances. CBO 
estimates the new authority would not significantly affect 
spending.
    The bill would create a permanent working capital fund for 
the Agency for International Development. CBO estimates 
spending from the fund would net to zero over time.
Revenues
    Section 778 of the bill would increase the maximum fine for 
failure to file information or reports with the Secretary of 
the Treasury in connection with the export or transportation of 
cargo from $1,000 to $10,000. The bill also would create a 
$10,000 fine for persons who knowingly fail to file, or submit 
false export information through the shipper's export 
declaration or the automated export system. Based on 
information from the U.S. Customs Service, CBO estimates that 
these changes would increase revenues by less than $500,000 
annually.
Pay-As-You-Go Considerations
    The Balanced Budget and Emergency Deficit Control Act sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts. The net changes in outlays and 
governmental receipts that are subject to pay-as-you-go 
procedures are shown in Table 4. (The estimated effects on 
receipts are less than $500,000 a year.) For the purposes of 
enforcing pay-as-you-go procedures, only the effects in the 
current year, the budget year, and the succeeding four years 
are counted.

                                               Table 4.--Estimated Effects on Direct Spending and Receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                          By fiscal year, in millions of dollars
                                                                 ---------------------------------------------------------------------------------------
                                                                   2000    2001    2002    2003    2004    2005    2006    2007    2008    2009    2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays..............................................       0      45      45      45      45      45      45      45      45      45      45
Changes in receipts.............................................       0       0       0       0       0       0       0       0       0       0       0
--------------------------------------------------------------------------------------------------------------------------------------------------------


Estimated Intergovernmental and Private-Sector Impact
    The Technical Assistance, Trade Promotion, and Anti-
Corruption Act of 2000 would impose private-sector and 
intergovernmental mandates, as defined in UMRA. CBO estimates 
that the cost of those mandates would not exceed the thresholds 
established by UMRA ($109 million in 2000 for private-sector 
mandates and $55 million in 2000 for intergovernmental 
mandates, adjusted annually for inflation).
    Section 778 of title VII would increase the cost of an 
existing private-sector mandate on carriers of international 
cargo. Under current law, international carriers are required 
to either submit declaration forms prior to shipment or within 
four days after shipment, provided that they have a $1,000 bond 
on file with the Treasury Department. This bill would increase 
the cost of that mandate by requiring a $10,000 bond for 
carriers that wish to submit forms after departure. According 
to information provided by the Customs Service, most 
international carriers file bonds allowing them to submit late 
declarations. To comply with the mandate under this bill, 
carriers could either file all forms prior to shipment or 
secure a more costly bond. Based on information provided by 
industry sources, CBO estimates that the direct costs of 
complying with the mandate would be minor.
    Section 127 of title I would impose a mandate on exporters 
of agricultural commodities, medicine, and medical devices to 
countries found by the Secretary of State to be providing 
support for acts of international terrorism. The bill would 
require those exporters to apply for one-year licenses and to 
complete contracts within 12 months. Although that provision 
would subject exports to certain countries to more restrictive 
controls, costs to exporters could be offset by that 
provision's easing of export restrictions to other terrorist-
supporting nations. The termination of unilateral agricultural 
and medical sanctions in section 123 could also provide savings 
to exporters of those commodities. Based on information 
provided by government sources, CBO estimates the net costs 
that the bill would impose on such exporters would not be 
significant.
    Title V of the bill contains provisions that would impose 
private-sector and intergovernmental mandates by prohibiting 
certain transactions involving Serbia and the government of 
Yugoslavia. However, based on information provided by the 
Treasury Department about new regulatory authority provided in 
the bill, CBO expects that the provisions would largely 
maintain current policy and thus would have little impact on 
the private sector or on state, local, or tribal governments.
    Estimates prepared by:--Federal Costs: Joseph C. Whitehill 
and Dave Hull. Federal Revenues: Hester Grippando. Impact on 
State, Local, and Tribal Governments: Leo Lex. Impact on the 
Private Sector: Keith Mattrick and Jean Wooster.
    Estimates approved by:--Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                   V. Evaluation of Regulatory Impact

    In accordance with rule XXVI, paragraph 11(b) of the 
Standing Rules of the Senate, the Committee has concluded that 
there is no regulatory impact from this legislation.
                      VI. Changes in Existing Law

    In compliance with paragraph 12 Rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new matter is printed in 
italic, existing law in which no change is proposed is shown in 
roman):

Foreign Assistance Act of 1961

           *       *       *       *       *       *       *


    Sec. 102. Development Assistance Policy.--(a) * * *
    (b)(1) * * *
          (16) * * *
          (17) Economic reform and development of effective 
        institutions of democratic governance are mutually 
        reinforcing. The successful transition of a developing 
        country is dependent upon the quality of its economic 
        and governance institutions. Rule of law, mechanisms of 
        accountability and transparency, security of person, 
        property, and investments, are but a few of the 
        critical governance and economic reforms that underpin 
        the sustainability of broad-based economic growth. 
        Programs in support of such reforms strengthen the 
        capacity of people to hold their governments 
        accountable and to create economic opportunity.

           *       *       *       *       *       *       *

    Sec. 104. Population and Health.--(a) Findings. * * *
    (c) Assistance for Health and Disease Prevention.--(1) * * 
*
  (4)(A) Congress recognizes the growing international dilemma 
of children with the human immunodeficiency virus (HIV) and the 
merits of intervention programs aimed at this problem. Congress 
further recognizes that mother-to-child transmission prevention 
strategies can serve as a major force for change in developing 
regions, and it is, therefore, a major objective of the foreign 
assistance program to control the acquired immune deficiency 
syndrome (AIDS) epidemic.
  (B) The agency primarily responsible for administering this 
part shall--
          (i) coordinate with UNAIDS, UNICEF, WHO, local 
        governments, and other organizations to develop and 
        implement effective strategies to prevent vertical 
        transmission of HIV; and
          (ii) coordinate with those organizations to increase 
        in scale intervention programs and introduce voluntary 
        counseling and testing, antiretroviral drugs, 
        replacement feeding, and other strategies.
  (5)(A) Congress expects the agency primarily responsible for 
administering this part to make the human immunodeficiency 
virus (HIV) and the acquired immune deficiency syndrome (AIDS) 
a priority in the foreign assistance program and to undertake a 
comprehensive, coordinated effort to combat HIV and AIDS.
  (B) Assistance described in subparagraph (A) shall include 
providing--
          (i) primary prevention and education;
          (ii) voluntary testing and counseling;
          (iii) medications to prevent the transmission of HIV 
        and AIDS from mother to child; and
          (iv) care for those living with HIV or AIDS.
  (6)(A) In addition to amounts otherwise available for such 
purpose, there is authorized to be appropriated to the 
President $300,000,000 for fiscal year 2001 to carry out 
paragraphs (4) and (5).
  (B) Of the funds authorized to be appropriated under 
subparagraph (A), not less than 65 percent is authorized to be 
available through United States and foreign nongovernmental 
organizations, including private and voluntary organizations, 
for-profit organizations, religious affiliated organizations, 
educational institutions, and research facilities.
  (C) Of the funds authorized to be appropriated by 
subparagraph (A), not less than 20 percent is authorized to be 
available for programs as part of a multidonor strategy to 
address the support and education of orphans in sub-Saharan 
Africa, including AIDS orphans.
  (D) Of the funds authorized to be appropriated under 
subparagraph (A), not less than 8.3 percent is authorized to be 
available to carry out the prevention strategies for vertical 
transmission referred to in paragraph (4)(A).
  (E) Of the funds authorized to be appropriated by 
subparagraph (A), not more than $21,000,000 may be used for the 
administrative expenses of the agency primarily responsible for 
carrying out this part of this Act in support of activities 
described in paragraphs (4) and (5).
  (F) Funds appropriated under this paragraph are authorized to 
remain available until expended.
  (7)(A) Congress recognizes the growing international problem 
of tuberculosis and the impact its continued existence has on 
those nations that had previously largely controlled the 
disease. Congress further recognizes that the means exist to 
control and treat tuberculosis, and that it is therefore a 
major objective of the foreign assistance program to control 
the disease. To this end, Congress expects the agency primarily 
responsible for administering this part--
          (i) to coordinate with the World Health Organization, 
        the Centers for Disease Control, the National 
        Institutes of Health, and other organizations toward 
        the development and implementation of a comprehensive 
        tuberculosis control program; and
          (ii) to set as a goal the detection of at least 70 
        percent of the cases of infectious tuberculosis, and 
        the cure of at least 85 percent of the cases detected, 
        in those countries in which the agency has established 
        development programs, by December 31, 2010.
  (B) There is authorized to be appropriated to the President, 
$60,000,000 for fiscal year 2001 to be used to carry out this 
paragraph. Funds appropriated under this subparagraph are 
authorized to remain available until expended.

           *       *       *       *       *       *       *

  (g) Treatment of Violations of United States Population 
Planning Assistance Laws.--
          (1) Certification required.--An organization shall be 
        eligible for population planning assistance in a fiscal 
        year if, prior to the initial disbursement of such 
        assistance in that fiscal year to the organization, the 
        AID Administrator determines and certifies to the 
        appropriate congressional committees that the 
        organization--
                  (A) has not used population planning 
                assistance in violation of subsection (f) 
                during the preceding fiscal year; and
                  (B) has adequate internal accounting controls 
                to prevent the use of population planning 
                assistance in violation of subsection (f).
          (2) Suspension of eligibility for assistance under 
        the act.--An organization that the AID Administrator 
        determines has used population planning assistance in 
        violation of subsection (f) shall be ineligible to 
        receive assistance of any kind under this Act for a 
        period of 10 years from the date of the determination.
          (3) Definitions.--In this subsection:
                  (A) AID administrator.--The term ``AID 
                Administrator'' means the Administrator of the 
                United States Agency for International 
                Development.
                  (B) Appropriate congressional committees.--
                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.
                  (C) Organization.--The term ``organization'' 
                means any organization providing population 
                planning assistance and includes any grantee, 
                subgrantee, contractor, or subcontractor of an 
                agency of the United States.
                  (D) Population planning assistance.--The term 
                ``population planning assistance'' means 
                assistance under subsection (b).
    [(g)] (h) Authorizations of Appropriations.--(1) There are 
authorized to be appropriated to the President, in addition to 
funds otherwise available for such purposes--
          (A) $290,000,000 for fiscal year 1986 and 
        $290,000,000 for fiscal year 1987 to carry out 
        subsection (b) of this section; and
          (B) $205,000,000 for fiscal year 1986 and 
        $180,000,000 for fiscal year 1987 to carry out 
        subsection (c) of this section.

           *       *       *       *       *       *       *

    [Sec. 108. Private Sector Revolving Fund.--(a) The Congress 
finds that the development of private enterprise, including 
cooperatives, is a vital factor in the stable growth of 
developing countries and in the development and stability of a 
free, open, and equitable international economic system. It is 
therefore in the best interests of the United States to assist 
the development of the private sector in developing countries 
and to engage the United States private sector in that process. 
In order to promote such private sector development, the 
President is authorized to establish a revolving fund account 
in the United States Treasury. All funds deposited in such 
account shall, notwithstanding any provision in an 
appropriation Act to the contrary, be free from fiscal year 
limitations.
    [(b) Of the funds made available under this chapter in each 
of the fiscal years 1986 and 1987, up to $18,000,000 may be 
deposited in this account. Such funds used in accordance with 
the policies and authorities of this section shall be in 
addition to other funds available for private sector activities 
under other authorities in this Act. Any reflows and income 
arising from activities carried out pursuant to this section, 
including loan repayments and fee income (as provided in 
subsection (e) of this section), shall be deposited into the 
revolving fund and remain available to carry out the purposes 
of this section. All funds in such account may be invested in 
obligations of the United States.
    [(c) (1) The agency primarily responsible for administering 
this part is authorized to use the funds maintained in this 
revolving fund account to furnish assistance in furtherance of 
the policy of subsection (a) on such terms and conditions as it 
may determine. Amounts in the revolving fund account shall be 
available for obligation for assistance under this section only 
to such extent as may be provided in advance in appropriation 
Acts. Assistance may be provided under this section without 
regard to sections 604(a) and 620(r) of this Act.
    [(2) Assistance under this section may be provided only to 
support private sector activities which--
          [(A) are consistent with the United States 
        development assistance policies set forth in section 
        102 of this Act and with the development priorities of 
        the host country;
          [(B) are the types of activities for which assistance 
        may be provided under sections 103 through 106 of this 
        Act;
          [(C) will have a demonstration effect;
          [(D) will be innovative;
          [(E) are financially viable;
          [(F) will maximize the development impact appropriate 
        to the host country, particularly in employment and the 
        use of appropriate technology; and
          [(G) are primarily directed to making available to 
        small business enterprises and cooperatives necessary 
        support and services which are not otherwise generally 
        available.
[In determining whether an enterprise is a small business 
enterprise, the agency primarily responsible for administering 
this part shall take into consideration the enterprise's total 
net fixed assets and number of employees, together with the 
relevant definition utilized by the host country government and 
the International Bank for Reconstruction and Development and 
other international organizations.
    [(3)(A) Not more than $3,000,000 may be made available 
under this section to support any one project.
    [(B) Not more than 50 per centum of the financial support 
for any project may be provided under this section, and a 
substantial portion of the financial support for a project 
assisted under this section must be provided by sources within 
the host country.
    [(C) Not more than 20 per centum of the assets of the 
revolving fund account under this section may be used to 
support projects in any one country.
    [(D) In order to maximize the impact on institution 
building, loans under this section shall be made primarily to 
intermediary entities which provide necessary support and 
services for private sector activities.
    [(E) Loans under this section shall be at or near the 
interest rate otherwise available to the recipient.
    [(d) (1) If at any time the assets of the revolving fund 
account exceeds $100,000,000, the President shall remit the 
amount in excess of $100,000,000 to the United States Treasury.
    [(2) As used in this section, ``assets'' includes amounts 
in the revolving fund account plus the value of investments 
made with amounts from the fund plus the current value of 
outstanding obligations under loans under this section.
    [(3) In addition to the requirement of paragraph (1), at 
the end of any fiscal year, the agency primarily responsible 
for administering this part may determine that amounts in the 
revolving fund are sufficient to permit the remittance to the 
United States Treasury of an amount equal to a portion or the 
total amount of appropriated funds deposited in the revolving 
fund. Any such remittance shall be deemed to be a decrease in 
the appropriated funds in the revolving fund. After remittance 
has been made of an amount equal to the total amount of 
appropriated funds, the revolving fund shall consist and be 
deemed to consist entirely of nonappropriated funds.
    [(e) A fee may be charged, where appropriate, in carrying 
out activities with funds from the revolving fund authorized in 
this section. The amount of any such fee shall be determined by 
the agency primarily responsible for administering this part.
    [(f) In the event the revolving fund is terminated, all 
unobligated money in the fund at the time of such termination 
shall be transferred to and become part of the miscellaneous 
receipts account of the Treasury.
    [(g) As part of its annual congressional presentation 
documents submitted to the Congress, the agency primarily 
responsible for administering this part shall include a 
description of projects proposed to be funded from the 
revolving fund account for that fiscal year. To the extent that 
projects are proposed for funding which are not contained in 
the annual congressional presentation documents, at least 
fifteen days' advance notification shall be provided to the 
Congress in accordance with section 634A of this Act.
    [(h) Not later than December 31 of each year, the President 
shall submit a comprehensive report which details all projects 
funded under this section during the previous fiscal year, all 
reflows to the revolving fund account, a status report on all 
projects currently contained in the fund's portfolio. Such 
reports shall include, but not be limited to, information 
regarding numbers and kinds of beneficiaries reached, amounts 
and kinds of benefits provided by the funded projects to 
targeted populations, and a justification for projects within 
the context of the goals and objectives of the United States 
development assistance program.
    [(i) (1) To carry out the purposes of subsection (a), in 
addition to the other authorities set forth in this section, 
the agency primarily responsible for administering this part is 
authorized to issue guarantees on such terms and conditions as 
it shall determine assuring against losses incurred in 
connection with loans made to projects that meet the criteria 
set forth in subsection (c). The full faith and credit of the 
United States is hereby pledged for the full payment and 
performance of such guarantees.
    [(2) Loans guaranteed under this subsection shall be on 
such terms and conditions as the agency may prescribe, except 
for the following:
          [(A) The agency shall issue guarantees only when it 
        is necessary to alleviate a credit market imperfection.
          [(B) Loans guaranteed shall provide for complete 
        amortization within a period not to exceed ten years 
        or, if the principal purpose of the guaranteed loan is 
        to finance the construction or purchase of a physical 
        asset with a useful life of less than ten years, within 
        a period not to exceed such useful life.
          [(C) No loan guaranteed to any one borrower may 
        exceed 50 percent of the cost of the activity to be 
        financed, or $3,000,000, whichever is less, as 
        determined by the agency.
          [(D) No loan may be guaranteed unless the agency 
        determines that the lender is responsible and that 
        adequate provision is made for servicing the loan on 
        reasonable terms and protecting the financial interest 
        of the United States.
          [(E) The fees earned from the loan guarantees issued 
        under this subsection shall be deposited in the 
        revolving fund account as part of the guarantee reserve 
        established under paragraph (5) of this subsection. 
        Fees shall be assessed at a level such that the fees 
        received, plus the funds from the revolving fund 
        account placed in the guarantee reserve satisfy the 
        requirements of paragraph (5). Fees shall be reviewed 
        every twelve months to ensure that the fees assessed on 
        new loan guarantees are at the required level.
          [(F) Any guarantee shall be conclusive evidence that 
        such guarantee has been properly obtained, and that the 
        underlying loan as contracted qualifies for such 
        guarantee. Except for fraud or material 
        misrepresentation for which the parties seeking payment 
        under such guarantee are responsible, such guarantee 
        shall be presumed to be valid, legal, and enforceable.
          [(G) The agency shall determine that the standards 
        used by the lender for assessing the credit risk of new 
        and existing guaranteed loans are reasonable. The 
        agency shall require that there be a reasonable 
        assurance of repayment before credit assistance is 
        extended.
          [(H) Commitments to guarantee loans may be made by 
        the agency only to the extent that the total loan 
        principal, any part of which is guaranteed, will not 
        exceed the amount specified in annual appropriations 
        Acts.
    [(3) To the extent that fees are not sufficient as 
specified under paragraph (2)(E) to cover expected future 
liabilities, appropriations are authorized to maintain an 
appropriate reserve.
    [(4) The losses guaranteed under this subsection may be in 
dollars or in other currencies. In the case of loans in 
currencies other than dollars, the guarantees issued shall be 
subject to an overall payment limitation expressed in dollars.
    [(5) The agency shall segregate in the revolving fund 
account and hold as a reserve an amount estimated to be 
sufficient to cover the agency's expected net liabilities on 
the loan guarantees outstanding under this subsection; except 
that the amount held in reserve shall not be less than 25 
percent of the principal amount of the agency's outstanding 
contingent liabilities on such guarantees. Any payments made to 
discharge liabilities arising from the loan guarantees shall be 
paid first out of the assets in the revolving fund account and 
next out of other funds made available for this purpose.]

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

  (a) Findings and Policy.--Congress finds and declares that--
          (1) the development of micro- and small enterprises 
        are a vital factor in the stable growth of developing 
        countries and in the development and stability of a 
        free, open, and equitable international economic 
        system; and
          (2) it is, therefore, in the best interests of the 
        United States to assist the development of the 
        enterprises of the poor in developing countries and to 
        engage the United States private sector in that 
        process.
  (b) Program.--To carry out the policy set forth in subsection 
(a), the President is authorized to provide assistance to 
increase the availability of credit to micro- and small 
enterprises lacking full access to credit, including through--
          (1) loans and guarantees to credit institutions for 
        the purpose of expanding the availability of credit to 
        micro- and small enterprises;
          (2) training programs for lenders in order to enable 
        them to better meet the credit needs of 
        microentrepreneurs; and
          (3) training programs for microentrepreneurs in order 
        to enable them to make better use of credit and to 
        better manage their enterprises.
  (c) Eligibility Criteria.--The Administrator of the United 
States Agency for International Development shall establish 
criteria for determining which entities described in subsection 
(b) are eligible to carry out activities, with respect to 
micro- and small enterprises, assisted under this section. Such 
criteria may include the following:
          (1) The extent to which the recipients of credit from 
        the entity do not have access to the local formal 
        financial sector.
          (2) The extent to which the recipients of credit from 
        the entity are among the poorest people in the country.
          (3) The extent to which the entity is oriented toward 
        working directly with poor women.
          (4) The extent to which the entity recovers its cost 
        of lending.
          (5) The extent to which the entity implements a plan 
        to become financially sustainable.
  (d) Additional Requirement.--Assistance provided under this 
section may only be used to support micro- and small enterprise 
programs and may not be used to support programs not directly 
related to the purposes described in subsection (b).
  (e) Authorized Uses of Funds.--
          (1) In general.--Amounts made available to carry out 
        this section may be used for, among other things--
                  (A) the subsidy cost, as defined in section 
                502(5) of the Federal Credit Reform Act of 
                1990, for activities under this section; and
                  (B) the cost of administration expenses in 
                carrying out credit activities under this 
                section.
          (2) Default and procurement provisions.--
                  (A) Default provision.--The provisions of 
                section 620(q), or any comparable provision of 
                law, shall not be construed to prohibit 
                assistance to a country in the event that a 
                private sector recipient of assistance 
                furnished under this section is in default in 
                its payment to the United States for the period 
                specified in such section.
                  (B) Procurement provision.--Assistance may be 
                provided under this section without regard to 
                section 604(a).
          (3) Rule of construction.--Amounts authorized to be 
        appropriated under this subsection are in addition to 
        amounts otherwise available to carry out this section.

           *       *       *       *       *       *       *


SEC. 130. ASSISTANCE FOR VICTIMS OF TORTURE.

           *       *       *       *       *       *       *


SEC. 131. COORDINATED DONOR STRATEGY FOR SUPPORT AND EDUCATION OF 
                    ORPHANS IN SUB-SAHARAN AFRICA.

  (a) Statement of Policy.--It is in the national interest of 
the United States to assist in mitigating the burden that will 
be placed on sub-Saharan African social, economic, and 
political institutions as these institutions struggle with the 
consequences of a dramatically increasing AIDS orphan 
population, many of whom are themselves infected by HIV/AIDS. 
Effectively addressing that burden and its consequences in sub-
Saharan Africa will require a coordinated multidonor strategy.
  (b) Development of Strategy.--The President shall coordinate 
the development of a multidonor strategy to provide for the 
support and education of AIDS orphans and the families, 
communities, and institutions most affected by the HIV/AIDS 
epidemic in sub-Saharan Africa.
  (c) Authority.--Assistance made available under this section 
may be made available notwithstanding any other provision of 
law.
  (d) Definition.--In this section, the term ``HIV/AIDS'' 
means, with respect to an individual, an individual who is 
infected with--
          (1) the human immunodeficiency virus (HIV); or
          (2) HIV and the acquired immune deficiency virus 
        (AIDS).

SEC. 132. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.

  (a) Findings and Policy.--Congress finds and declares that--
          (1) the development of microenterprise is a vital 
        factor in the stable growth of developing countries and 
        in the development of free, open, and equitable 
        international economic systems;
          (2) it is therefore in the best interest of the 
        United States to assist the development of 
        microenterprises in developing countries; and
          (3) the support of microenterprise can be served by 
        programs providing credit, savings, training, technical 
        assistance, and business development services.
  (b) Authorization.--
          (1) In general.--In carrying out this part, the 
        President is authorized to provide grant assistance for 
        programs to increase the availability of credit and 
        other services to microenterprises lacking full access 
        to capital training, technical assistance, and business 
        development services through--
                  (A) grants to microfinance institutions for 
                the purpose of expanding the availability of 
                credit, savings, and other financial services 
                to microentrepreneurs;
                  (B) grants to microenterprise development 
                institutions for the purpose of training, 
                technical assistance, and business development 
                services for microenterprises to enable them to 
                make better use of credit, to better manage 
                their enterprises, and to increase their income 
                and build their assets;
                  (C) capacity building for microenterprise 
                development institutions in order to enable 
                them to better meet the credit and training 
                needs of microentrepreneurs; and
                  (D) policy and regulatory programs at the 
                country level that improve the environment for 
                microentrepreneurs and microenterprise 
                development institutions that serve the poor 
                and very poor.
          (2) Implementation.--Assistance authorized under 
        paragraph (1) shall be provided through organizations 
        that have a capacity to develop and implement 
        microenterprise programs, including particularly--
                  (A) United States and indigenous private and 
                voluntary organizations;
                  (B) United States and indigenous credit 
                unions and cooperative organizations; or
                  (C) other indigenous governmental and 
                nongovernmental organizations.
          (3) Targeted assistance.--In carrying out sustainable 
        poverty-focused programs under paragraph (1), 50 
        percent of all microenterprise resources shall be 
        targeted to very poor enterpreneurs, defined as those 
        living in the bottom 50 percent below the poverty line 
        as established by the national government of the 
        country. Specifically, such resources shall be used 
        for--
                  (A) direct support of programs under this 
                subsection through practitioner institutions 
                that--
                          (i) provide credit and other 
                        financial services to entrepreneurs who 
                        are very poor, with loans in 1995 
                        United States dollars of--
                                  (I) $1,000 or less in the 
                                Europe and Eurasia region;
                                  (II) $400 or less in the 
                                Latin America region; and
                                  (III) $300 or less in the 
                                rest of the world; and
                          (ii) can cover their costs in a 
                        reasonable time period; or
                  (B) demand-driven business development 
                programs that achieve reasonable cost recovery 
                that are provided to clients holding poverty 
                loans (as defined by the regional poverty loan 
                limitations in subparagraph (A)(i)) whether 
                they are provided by microfinance institutions 
                or by specialized business development services 
                providers.
          (4) Support for central mechanisms.--The President 
        should continue support for central mechanisms and 
        missions that--
                  (A) provide technical support for field 
                missions;
                  (B) strengthen the institutional development 
                of the intermediary organizations described in 
                paragraph (2);
                  (C) share information relating to the 
                provision of assistance authorized under 
                paragraph (1) between such field missions and 
                intermediary organizations; and
                  (D) support the development of nonprofit 
                global microfinance networks, including credit 
                union systems, that--
                          (i) are able to deliver very small 
                        loans through a vast grassroots 
                        infrastructure based on market 
                        principles; and
                          (ii) act as wholesale intermediaries 
                        providing a range of services to 
                        microfinance retail institutions, 
                        including financing, technical 
                        assistance, capacity building and 
                        safety and soundness accreditation.
          (5) Limitation.--Assistance provided under this 
        subsection may only be used to support microenterprise 
        programs and may not be used to support programs not 
        directly related to the purposes described in paragraph 
        (1).
          (6) Definition.--In this subsection, the term 
        ``business development services'' means support for the 
        growth of microenterprises through training, technical 
        assistance, marketing assistance, improved production 
        technologies, and other services.
  (c) Monitoring System.--In order to maximize the sustainable 
development impact of the assistance authorized under 
subsection (a)(1), the Administrator of the United States 
Agency for International Development shall establish a 
monitoring system that--
          (1) establishes performance goals for such assistance 
        and expresses such goals in an objective and 
        quantifiable form, to the extent feasible;
          (2) establishes performance indicators to be used in 
        measuring or assessing the achievement of the goals and 
        objectives of such assistance;
          (3) provides a basis for recommendations for 
        adjustments to such assistance to enhance the 
        sustainable development impact of such assistance, 
        particularly the impact of such assistance on the very 
        poor, particularly poor women; and
          (4) provides a basis for recommendations for 
        adjustments to measures for reaching the poorest of the 
        poor, including proposed legislation containing 
        amendments to improve paragraph (3).
  (d) Level of Assistance.--Of the funds made available under 
this part and the Support for East European Democracy (SEED) 
Act of 1989, including local currencies, there are authorized 
to be available $135,000,000 during fiscal year 2001, and 
$150,000,000 during fiscal year 2002, to carry out the 
provisions of this section.

SEC. 133. UNITED STATES MICROFINANCE LOAN FACILITY.

  (a) Establishment.--The Administrator is authorized to 
establish a United States Microfinance Loan Facility (in this 
section referred to as the ``Facility'') to pool and manage the 
risk from natural disasters, war or civil conflict, national 
financial crisis, or short-term financial movements that 
threaten the long-term development of United States-supported 
microfinance institutions.
  (b) Disbursements.--
          (1) In general.--The Administrator shall make 
        disbursements from the Facility to United States-
        supported microfinance institutions to prevent the 
        bankruptcy of such institutions caused by--
                  (A) natural disasters;
                  (B) national wars or civil conflict; or
                  (C) national financial crisis or other short-
                term financial movements that threaten the 
                long-term development of United States-
                supported microfinance institutions.
          (2) Form of assistance.--Assistance under this 
        section shall be in the form of loans or loan 
        guarantees for microfinance institutions that 
        demonstrate the capacity to resume self-sustained 
        operations within a reasonable time period.
          (3) Congressional notification procedures.--During 
        each of the fiscal years 2001 and 2002, funds may not 
        be made available from the Facility until 15 days after 
        notification of the proposed availability of the funds 
        has been provided to the congressional committees 
        specified in section 634A in accordance with the 
        procedures applicable to reprogramming notifications 
        under that section.
  (c) General Provisions.--
          (1) Policy provisions.--In providing the credit 
        assistance authorized by this section, the 
        Administrator should apply, as appropriate, the policy 
        provisions in this part that are applicable to 
        development assistance activities.
          (2) Default and procurement provisions.--
                  (A) Default provision.--The provisions of 
                section 620(q), or any comparable provision of 
                law, shall not be construed to prohibit 
                assistance to a country in the event that a 
                private sector recipient of assistance 
                furnished under this section is in default in 
                its payment to the United States for the period 
                specified in such section.
                  (B) Procurement provision.--Assistance may be 
                provided under this section without regard to 
                section 604(a).
          (3) Terms and conditions of credit assistance.--
                  (A) In general.--Credit assistance provided 
                under this section shall be offered on such 
                terms and conditions, including fees charged, 
                as the Administrator may determine.
                  (B) Limitation on principal amount of 
                financing.--The principal amount of loans made 
                or guaranteed under this section in any fiscal 
                year, with respect to any single borrower, may 
                not exceed $30,000,000.
                  (C) Exception.--No payment may be made under 
                any guarantee issued under this section for any 
                loss arising out of fraud or misrepresentation 
                for which the party seeking payment is 
                responsible.
          (4) Full faith and credit.--All guarantees issued 
        under this section shall constitute obligations, in 
        accordance with the terms of such guarantees, of the 
        United States of America, and the full faith and credit 
        of the United States of America is hereby pledged for 
        the full payment and performance of such obligations to 
        the extent of the guarantee.
  (d) Funding.--
          (1) Allocation of funds.--
                  (A) In general.--Of the amounts made 
                available to carry out this part for each of 
                the fiscal years 2000 and 2001, up to 
                $5,000,000 may be made available for--
                          (i) the subsidy cost, as defined in 
                        section 502(5) of the Federal Credit 
                        Reform Act of 1990, to carry out this 
                        section; and
                          (ii) subject to subparagraph (B), the 
                        cost of administrative expenses to 
                        carry out this section.
                  (B) Limitation on administrative expenses.--
                Of the amount made available under subparagraph 
                (A) to carry out this section for a fiscal 
                year, not more than $500,000 may be made 
                available for administrative expenses under 
                subparagraph (A)(ii).
          (2) Relation to other funding.--Amounts made 
        available under paragraph (1) are in addition to 
        amounts available under any other provision of law to 
        carry out this section.
  (e) Definitions.--In this section:
          (1) Administrator.--The term ``Administrator'' means 
        the Administrator of the agency primarily responsible 
        for administering this part.
          (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the 
        Committee on Foreign Relations of the Senate and the 
        Committee on International Relations of the House of 
        Representatives.
          (3) United states-supported microfinance 
        institution.--The term ``United States-supported 
        microfinance institution'' means a financial 
        intermediary that has received finds made available 
        under this Act for fiscal year 1980 or any subsequent 
        fiscal year.

           *       *       *       *       *       *       *

    Sec. 209. Multilateral and Regional Programs.--(a) * * *
    [(d) In furtherance of the provisions of subsection (a) of 
this section, any funds appropriated under this part I may be 
transferred by the President to the International Development 
Association, the International Bank for Reconstruction and 
Development, the International Finance Corporation, the Asian 
Development Bank or other multilateral lending institutions and 
multilateral organizations in which the United States 
participates for the purpose of providing funds to enable any 
such institution or organization to make loans to foreign 
countries.]

           *       *       *       *       *       *       *

    Sec. 302. Authorization.--(a) * * *
    [(j)  In addition to amounts otherwise available under this 
section for such purposes, there are authorized to be 
appropriated to the President $3,000,000 for fiscal year 1989 
to be available only for United States contributions to 
multilateral and regional drug abuse control programs. Of the 
amount authorized to be appropriated by this subsection--
          [(1) $2,000,000 shall be for a United States 
        contribution to the United Nations Fund for Drug Abuse 
        Control;
          [(2) $600,000 shall be for the Organization of 
        American States (OAS) Inter-American Drug Abuse Control 
        Commission (CICAD) Legal Development Project, except 
        that the proportion which such amount bears to the 
        total amount of contributions to this specific project 
        may not exceed the proportion which the United States 
        contribution to the budget of the Organization of 
        American States for that fiscal year bears to the total 
        contributions to the budget of the Organization of 
        American States for that fiscal year; and
          [(3) $400,000 shall be for the Organization of 
        American States (OAS) Inter-American Drug Abuse Control 
        Commission (CICAD) Law Enforcement Training Project, 
        except that the proportion which such amount bears to 
        the total amount of contributions to this specific 
        project may not exceed the proportion which the United 
        States contribution to the budget of the Organization 
        of American States for that fiscal year bears to the 
        total contributions to the budget of the Organization 
        of American States for that fiscal year.]
  (j) In addition to amounts otherwise available under this 
section, there is authorized to be appropriated to the 
President $50,000,000 for fiscal year 2001 to be available only 
for United States contributions to the Global Alliance for 
Vaccines and Immunizations.
  (k) In addition to amounts otherwise available under this 
section, there is authorized to be appropriated to the 
President $10,000,000 for fiscal year 2001 to be available only 
for United States contributions to the International AIDS 
Vaccine Initiative.

           *       *       *       *       *       *       *

    Sec. 451. Contingencies.--(a)  (1) Notwithstanding any 
other provision of law, the President is authorized to use  
funds made available to carry out any provision of this Act 
(other than the provisions of chapter 1 of this part) in order 
to provide, for any unanticipated contingencies, assistance 
authorized by this part in accordance with the provisions 
applicable to the furnishing of such assistance, except that 
the authority of this subsection may not be used to authorize 
the use of more than [$25,000,000] $50,000,000 during any 
fiscal year.

           *       *       *       *       *       *       *

    Sec. 482. Authorization.--(a)(1) * * *
  (h) Provision of Narcotics-Related Assistance.--Narcotics-
related assistance under this part (other than this chapter) 
may be provided notwithstanding any provision of law that 
restricts assistance to foreign countries (other than section 
490(e) or section 502B), if at least 15 days before obligating 
funds for such assistance, the President notifies the 
appropriate congressional committees in accordance with the 
procedures applicable to reprogramming notifications under 
section 634A.

           *       *       *       *       *       *       *

    Sec. 491. Policy and General Authority.--(a) The Congress, 
recognizing that prompt United States assistance to alleviate 
human suffering caused by natural and manmade disasters is an 
important expression of the humanitarian concern and tradition 
of the people of the United States, affirms the willingness of 
the United States to provide assistance [for the relief and 
rehabilitation of people and countries affected by such 
disasters] for the relief, rehabilitation, and reconstruction 
of countries affected by such disasters, including the relief 
of people in such countries.
    (b) Subject to the limitations in section 492, and 
notwithstanding any other provision of this or any other Act, 
the President is authorized to furnish assistance to any 
foreign country, international organization, or private 
voluntary organization, on such terms and conditions as he may 
determine, for international disaster relief [and 
rehabilitation] , rehabilitation, and reconstruction, including 
assistance relating to disaster preparedness, and to the 
prediction of, and contingency planning for, natural disasters 
abroad.
    (c) In carrying out the provisions of this section the 
President shall insure that the assistance provided by the 
United States shall, to the greatest extent possible, reach 
those most in need of relief [and rehabilitation] , 
rehabilitation, and reconstruction as a result of natural and 
manmade disasters.

           *       *       *       *       *       *       *


                CHAPTER 10--DEVELOPMENT FUND FOR AFRICA

  Sec. 496. Long-Term Development Assistance for Sub-Saharan 
Africa.--(a) * * *

           *       *       *       *       *       *       *

  (i) Critical Sectoral Priorities.-- * * *
          (1) Agricultural production and natural resources.--

           *       *       *       *       *       *       *

          (2) Health.--Improving health conditions, with 
        special emphasis on meeting the health needs of mothers 
        and children (including displaced children) through the 
        establishment of primary health care systems that give 
        priority to preventive health and that will be 
        ultimately self-sustaining. In addition, providing 
        training and training facilities, in sub-Saharan 
        Africa, for doctors and other health care providers, 
        notwithstanding any provision of law that restricts 
        assistance to foreign countries.
    Sec. 502. Utilization of Defense Articles and Services.--
Defense articles and defense services to any country shall be 
furnished solely for internal security (including for 
antiterrorism and nonproliferation purposes), for legitimate 
self-defense, to permit the recipient country to participate in 
regional or collective arrangements or measures consistent with 
the Charter of the United Nations, or otherwise to permit the 
recipient country to participate in collective measures 
requested by the United Nations for the purpose of maintaining 
or restoring international peace and security, or for the 
purpose of assisting foreign military forces in less developed 
friendly countries (or the voluntary efforts of personnel of 
the Armed Forces of the United States in such countries) to 
construct public works and to engage in other activities 
helpful to the economic and social development of such friendly 
countries. It is the sense of the Congress that such foreign 
military forces should not be maintained or established solely 
for civic action activities and that such civic action 
activities not significantly detract from the capability of the 
military forces to perform their military missions and be 
coordinated with and form part of the total economic and social 
development effort.

           *       *       *       *       *       *       *

    Sec. 506. Special Authority.--(a)(1) If the President 
determines and reports to the Congress in accordance with 
section 652 of this Act that--
          (A) an unforeseen emergency exists which requires 
        immediate military assistance to a foreign country or 
        international organization; and
          (B) the emergency requirement cannot be met under the 
        authority of the Arms Export Control Act or any other 
        law except this section;
he may direct, for the purposes of this part, the drawdown of 
defense articles from the stocks of the Department of Defense, 
defense services of the Department of Defense, and military 
education and training, of an aggregate value of not to exceed 
[$100,000,000] $150,000,000 in any fiscal year.
    (2)(A) If the President determines and reports to the 
Congress in accordance with section 652 of this Act that it is 
in the national interest of the United States to draw down 
articles and services from the inventory and resources of any 
agency of the United States Government and military education 
and training from the Department of Defense, the President may 
direct the drawdown of such articles, services, and military 
education and training--
          (i) for the purposes and under the authorities of--
                  (I) chapter 8 of part I (relating to 
                international narcotics control assistance);
                  (II) chapter 9 of part I (relating to 
                international disaster assistance); [or]
                  [(III) the Migration and Refugee Assistance 
                Act of 1962; or]
                  (III) chapter 8 of part II (relating to 
                antiterrorism assistance);
                  (IV) chapter 9 of part II (relating to 
                nonproliferation assistance); or
                  (V) the Migration and Refugee Assistance Act 
                of 1962; or

           *       *       *       *       *       *       *

    Sec. 514. Stockpiling of Defense Articles for Foreign 
Countries.--(a) * * *
    (b)(1) * * *
    [(2)(A) The value of such additions to stockpiles of 
defense articles in foreign countries shall not exceed 
$60,000,000 for fiscal year 2000.
    [(B) Of the amount specified in subparagraph (A), not more 
than $40,000,000 may be made available for stockpiles in the 
Republic of Korea and not more than $20,000,000 may be made 
available for stockpiles in Thailand.]
    (2)(A) The value of such additions to stockpiles of defense 
articles in foreign countries shall not exceed $50,000,000 for 
fiscal year 2001.
    (B) Of the amount specified in subparagraph (A) for fiscal 
year 2001, not more than $50,000,000 may be made available for 
stockpiles in the Republic of Korea.

           *       *       *       *       *       *       *

    Sec. 534. Administration of Justice.--(a) The President may 
furnish assistance under this chapter to countries and 
organizations, including national and regional institutions, 
[in order to strengthen the administration of justice in 
countries in Latin America and the Caribbean] in order to 
support or strengthen the administration of justice.

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *


SEC. 547. CONSULTATION REQUIREMENT.

  The selection of foreign personnel for training under this 
chapter shall be made in consultation with the United States 
defense attache to the relevant country.

SEC. 548. RECORDS REGARDING FOREIGN PARTICIPANTS.

  In order to contribute most effectively to the development of 
military professionalism in foreign countries, the Secretary of 
Defense shall develop and maintain a database containing 
records on each foreign military or defense ministry civilian 
participant in education and training activities conducted 
under this chapter after December 31, 2000. This record shall 
include the type of instruction received, the dates of such 
instruction, whether such instruction was completed 
successfully, and, to the extent practicable, a record of the 
person's subsequent military or defense ministry career and 
current position and location.

           *       *       *       *       *       *       *

    Sec. 574. Authorizations of Appropriations.--(a) There are 
authorized to be appropriated to the President to carry out 
this chapter [$9,840,000 for the fiscal year 1986 and 
$14,680,000 for the fiscal year 1987] $73,000,000 for the 
fiscal year 2001.

           *       *       *       *       *       *       *


       CHAPTER 9--NONPROLIFERATION AND EXPORT CONTROL ASSISTANCE

SEC. 581. GENERAL AUTHORITY.

  Notwithstanding any other provision of law that restricts 
assistance to foreign countries (other than sections 502B and 
620A of this Act), the President is authorized to furnish, on 
such terms and conditions as the President may determine, 
assistance to foreign countries in order to enhance the ability 
of such countries to halt the proliferation of nuclear, 
chemical, and biological weapons, and advanced conventional 
weaponry. Such assistance may include training services and the 
provision of equipment and other commodities related to the 
detection, deterrence, monitoring, interdiction, and prevention 
or countering of proliferation, the establishment of effective 
nonproliferation laws and regulations, and the apprehension of 
those individuals involved in acts of proliferation of such 
weapons.

SEC. 582. PURPOSES.

  Activities conducted under this chapter shall be designed--
          (1) to enhance the nonproliferation and export 
        control capabilities of friendly countries by providing 
        training and equipment to detect, deter, monitor, 
        interdict, and counter proliferation;
          (2) to strengthen the bilateral ties of the United 
        States with friendly governments by offering concrete 
        assistance in this area of vital national security 
        interest; and
          (3) to accomplish the activities and objectives set 
        forth in sections 503 and 504 of the FREEDOM Support 
        Act (Public Law 502-511).

SEC. 583. TRANSIT INTERDICTION.

  (a) Allocation of Funds.--In providing assistance under this 
chapter, the President should ensure that not less than one-
quarter of the total of such assistance is expended for the 
purpose of enhancing the capabilities of friendly countries to 
detect and interdict proliferation-related shipments of cargo 
that originate from, and are destined for, other countries.
  (b) Priority to Certain Countries.--Priority shall be given 
in the apportionment of the assistance described under 
subsection (a) to any friendly country that has been determined 
by the Secretary of State to be a country frequently transited 
by proliferation-related shipments of cargo.

SEC. 584. LIMITATIONS.

  The limitations contained in section 573 (a) and (d) of this 
Act shall apply to this chapter.

SEC. 585. AUTHORIZATION OF APPROPRIATIONS.

  (a) Authorization of Appropriations.--There is authorized to 
be appropriated to the President to carry out this chapter 
$129,000,000 for the fiscal year 2001.
  (b) Availability of Funds.--Funds made available under 
subsection (a) may be used notwithstanding any other provision 
of law and shall remain available until expended.

                                PART III


                     Chapter 1--General Provisions


SEC. 601. * * *

           *       *       *       *       *       *       *


SEC. 601A. PRIVATE SECTOR ENTERPRISE FUNDS.

  (a) Authority.--
          (1) Eligible enterprise funds.--The President may 
        provide funds and support to Enterprise Funds 
        designated in accordance with subsection (b) that are 
        or have been established in furtherance of chapter 1 of 
        part I of this Act for the purposes of promoting--
                  (A) development of the private sectors of 
                eligible countries, including small businesses, 
                the agricultural sector, and joint ventures 
                with United States and host country 
                participants; and
                  (B) policies and practices conducive to 
                private sector development in eligible 
                countries;
        on the same basis as funds and support may be provided 
        with respect to Enterprise Funds for Poland and Hungary 
        under the Support for East European Democracy (SEED) 
        Act of 1989 (22 U.S.C. 5401 et seq.).
          (2) Supersedes other laws.--Funds may be made 
        available under this section notwithstanding any other 
        provision of law, except sections 620A and 490 of this 
        Act.
  (b) Countries Eligible for Enterprise Funds.--
          (1) Designation of eligible recipients.--Except as 
        provided in paragraph (2), the President is authorized 
        to designate a private, nonprofit organization as 
        eligible to receive funds and support pursuant to this 
        section with respect to any country in the same manner 
        and with the same limitations as set forth in section 
        201(d) of the Support for East European Democracy 
        (SEED) Act of 1989 (22 U.S.C. 5421(d)).
          (2) Ineligible countries.--The authority of paragraph 
        (1) shall not apply to any country with respect to 
        which the President is authorized to designate an 
        enterprise fund under section 498B(c) of this Act or 
        section 201 of the Support for East European Democracy 
        (SEED) Act of 1989 (22 U.S.C. 5421).
  (c) Treatment Equivalent to Enterprise Funds for Poland and 
Hungary.--Except as otherwise specifically provided in this 
section, the provisions contained in section 201 of the Support 
for East European Democracy (SEED) Act of 1989 (22 U.S.C. 5421) 
(excluding the authorizations of appropriations provided in 
subsection (b) of that section) shall apply to any Enterprise 
Fund that receives funds and support under this section. The 
officers, members, or employees of an Enterprise Fund that 
receives funds and support under this section shall enjoy the 
same status under law that is applicable to officers, members, 
or employees of the Enterprise Funds for Poland and Hungary 
under section 201 of the Support for East European Democracy 
(SEED) Act of 1989 (22 U.S.C. 5421).
  (d) Reporting Requirement.--Notwithstanding any other 
provision of this section, the requirement of section 201(p) of 
the Support for East European Democracy (SEED) Act of 1989 (22 
U.S.C. 5421(p)) that an Enterprise Fund shall be required to 
publish an annual report not later than January 31 of each year 
shall not apply with respect to an Enterprise Fund that 
receives funds and support under this section for the first 12 
months after it is designated as eligible to receive such funds 
and support.
  (e) Enterprise Fund Restrictions.--Prior to the distribution 
of any assets resulting from any liquidation, dissolution, or 
winding up of an Enterprise Fund, in whole or in part, the 
President shall submit to the Committee on Foreign Relations of 
the Senate and the Committee on International Relations of the 
House of Representatives a plan for the distribution of the 
assets of the Enterprise Fund.
  (f) Use of Other Foreign Assistance Funds.--In addition to 
amounts otherwise available for such purposes, amounts made 
available for a fiscal year to carry out chapter 1 of part I of 
this Act (relating to development assistance) and to carry out 
chapter 4 of part II of this Act (relating to the economic 
support fund) shall be available for such fiscal year to carry 
out this section.

           *       *       *       *       *       *       *

    [Sec. 617. Termination of Assistance.--Assistance under any 
provision of this Act may, unless sooner terminated by the 
President, be terminated by concurrent resolution. Funds made 
available under this Act shall remain available for a period 
not to exceed eight months from the date of termination of 
assistance under this Act for the necessary expenses of winding 
up programs related thereto. In order to ensure the 
effectiveness of assistance under this Act, such expenses for 
orderly termination of programs may include the obligation and 
expenditure of funds to complete the training or studies 
outside their countries of origin of students whose course of 
study or training program began before assistance was 
terminated. Such expenses for orderly termination of programs 
under the Arms Export Control Act may include the obligation 
and expenditure of funds to complete the training or studies 
outside the countries of origin of students whose course of 
study or training program began before assistance was 
terminated, as long as the origin country's termination was not 
a result of activities beyond default of financial 
responsibilities.]
    Sec. 617. Termination Expenses.--(a) In General.--Funds 
made available under this Act and the Arms Export Control Act, 
may remain available for obligation for a period not to exceed 
8 months from the date of any termination of assistance under 
such Acts for the necessary expenses of winding up programs 
related to such termination and may remain available until 
expended. Funds obligated under the authority of such Acts 
prior to the effective date of the termination of assistance 
may remain available for expenditure for the necessary expenses 
of winding up programs related to such termination 
notwithstanding any provision of law restricting the 
expenditure of funds. In order to ensure the effectiveness of 
such assistance, such expenses for orderly termination of 
programs may include the obligation and expenditure of funds to 
complete the training or studies outside their countries of 
origin of students whose course of study or training program 
began before assistance was terminated.
  (b) Liability to Contractors.--For the purpose of making an 
equitable settlement of termination claims under extraordinary 
contractual relief standards, the President is authorized to 
adopt as a contract or other obligation of the United States 
Government, and assume (in whole or in part) any liabilities 
arising thereunder, any contract with a United States or third-
country contractor that had been funded with assistance under 
such Acts prior to the termination of assistance.
  (c) Termination Expenses.--Amounts certified as having been 
obligated for assistance subsequently terminated by the 
President, or pursuant to any provision of law, shall continue 
to remain available and may be reobligated to meet any 
necessary expenses arising from the termination of such 
assistance.
  (d) Guaranty Programs.--Provisions of this or any other Act 
requiring the termination of assistance under this or any other 
Act shall not be construed to require the termination of 
guarantee commitments that were entered into prior to the 
effective date of the termination of assistance.
  (e) Relation to Other Provisions.--Unless specifically made 
inapplicable by another provision of law, the provisions of 
this section shall be applicable to the termination of 
assistance pursuant to any provision of law.

           *       *       *       *       *       *       *


SEC. 620H. PROHIBITION ON ASSISTANCE TO COUNTRIES THAT PROVIDE MILITARY 
                    EQUIPMENT TO TERRORIST STATES.

    (a) Prohibition.--
          (1) In general.--The President shall withhold 
        assistance under this Act and the Arms Export Control 
        Act to the government of any country that provides 
        lethal military equipment to a country the government 
        of which the Secretary of State has determined is a 
        terrorist government for the purposes of section 6(j) 
        of the Export Administration Act of 1979 (50 U.S.C. 
        App. 2405(j)), or 620A of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2371).

           *       *       *       *       *       *       *


SEC. 620I. * * *

           *       *       *       *       *       *       *


SEC. 620J. PROHIBITION ON BILATERAL ASSISTANCE FOR FOREIGN EXPORTS OF 
                    CERTAIN COMMODITIES.

  (a) Prohibition Relating to Surplus Commodities.--No 
assistance shall be furnished under this Act, including title 
IV of chapter 2 of part I of this Act (relating to the Overseas 
Private Investment Corporation), to finance any loan, any 
assistance, or any other financial commitments for the purpose 
of establishing or expanding production of any commodity for 
export by any country other than the United States, if the 
commodity is likely to be in surplus on world markets at the 
time the resulting productive capacity is expected to become 
operative and if the assistance will cause substantial injury 
to United States producers of the same, similar, or competing 
commodity.
  (b) Prohibition Relating to Agricultural Commodities.--No 
assistance shall be furnished under chapter 1 of part I 
(relating to development assistance) for any testing or 
breeding feasibility study, variety improvement or 
introduction, consultancy, publication, conference, or training 
in connection with the growth or production in a foreign 
country of an agricultural commodity for export which would 
compete with a similar commodity grown or produced in the 
United States, except that this subsection shall not prohibit--
          (1) activities designed to increase food security in 
        developing countries where such activities will not 
        have a significant impact in the export of agricultural 
        commodities of the United States; or
          (2) research activities intended primarily to benefit 
        American producers.

SEC. 620K. PROHIBITION ON ASSISTANCE FOR ACTIVITIES LIKELY TO CAUSE A 
                    LOSS OF UNITED STATES JOBS.

  No assistance under this Act other than title IV of chapter 2 
of part I may be used to provide--
          (1) any financial incentive to a business enterprise 
        currently located in the United States for the purpose 
        of inducing such an enterprise to relocate outside the 
        United States if such incentive or inducement is likely 
        to reduce the number of employees of such business 
        enterprise in the United States because United States 
        production is being replaced by such enterprise outside 
        the United States;
          (2) assistance for the purpose of establishing or 
        developing in a foreign country any export processing 
        zone or designated area in which the tax, tariff, 
        labor, environment, and safety laws of that country do 
        not apply, in part or in whole, to activities carried 
        out within that zone or area, unless the President 
        determines and certifies that such assistance is not 
        likely to cause a loss of jobs within the United 
        States; or
          (3) assistance for any project or activity that 
        contributes to the violation of internationally 
        recognized workers rights, as defined in section 
        502(a)(4) of the Trade Act of 1974, of workers in the 
        recipient country, including any designated zone or 
        area in that country, except that, in recognition that 
        the application of this paragraph should be 
        commensurate with the level of development of the 
        recipient country and sector, the provisions of this 
        paragraph shall not preclude assistance for the 
        informal sector in such country, micro and small-scale 
        enterprise, and smallholder agriculture.

           *       *       *       *       *       *       *

    Sec. 635. General Authorities.--(a) * * *
  (l)(1) There is established a working capital fund (in this 
subsection referred to as the ``fund'') for the United States 
Agency for International Development (in this subsection 
referred to as the ``Agency'') which shall be available without 
fiscal year limitation for the expenses of personal and 
nonpersonal services, equipment, and supplies for--
          (A) international cooperative administrative support 
        services; and
          (B) rebates from the use of United States Government 
        credit cards.
  (2) The capital of the fund shall consist of--
          (A) the fair and reasonable value of such supplies, 
        equipment, and other assets pertaining to the functions 
        of the fund as the Administrator determines, and
          (B) any appropriations made available for the purpose 
        of providing capital,
minus related liabilities.
  (3) The fund shall be reimbursed or credited with advance 
payments for services, equipment, or supplies provided from the 
fund from applicable appropriations and funds of the Agency, 
other Federal agencies and other sources authorized by section 
607 at rates that will recover total expenses of operation, 
including accrual of annual leave and depreciation. Receipts 
from the disposal of, or payments for the loss or damage to, 
property held in the fund, rebates, reimbursements, refunds and 
other credits applicable to the operation of the fund may be 
deposited in the fund.
  (4) At the close of each fiscal year the Administrator of the 
Agency shall transfer out of the fund to the miscellaneous 
receipts account of the Treasury of the United States such 
amounts as the Administrator determines to be in excess of the 
needs of the fund.
  (5) The fund may be charged with the current value of 
supplies and equipment returned to the working capital of the 
fund by a post, activity, or agency, and the proceeds shall be 
credited to current applicable appropriations.
    (m) The Administrator of the agency primarily responsible 
for administering part I may use funds made available under 
that part to provide program and management oversight for 
activities that are funded under that part and that are 
conducted in countries in which the agency does not have a 
field mission or office.

           *       *       *       *       *       *       *

    Sec. 638. Exclusions.--(a) * * *
    (b) * * *
    (c) Notwithstanding any provision of law that restricts 
assistance to a foreign country (other than section 490(e) or 
section 620A), funds made available to carry out the provisions 
of part I of this Act may be furnished for assistance for 
nonmilitary education programs and for anticorruption programs.

           *       *       *       *       *       *       *


                      The Arms Control Export Act

    Sec. 21. Sales From Stocks.--(a)(1) The President may sell 
defense articles and defense services from the stocks of the 
Department of Defense and the Coast Guard to any eligible 
country or international organization if such country or 
international organization agrees to pay in United States 
dollars--
          (A)  in the case of a defense article not intended to 
        be replaced at the time such agreement is entered into, 
        not less than the actual value thereof, except as 
        provided in paragraph (3);
          (B) in the case of a defense article intended to be 
        replaced at the time such agreement is entered into, 
        the estimated cost of replacement of such article, 
        including the contract or production costs less any 
        depreciation in the value of such article; or
          (C) in the case of the sale of a defense service, the 
        full cost to the United States Government of furnishing 
        such service, except that in the case of training sold 
        to a purchaser who is concurrently receiving assistance 
        under chapter 5 of part II of the Foreign Assistance 
        Act of 1961 or to any high-income foreign country (as 
        described in that chapter), only those additional costs 
        that are incurred by the United States Government in 
        furnishing such assistance.
    (2) For purposes of subparagraph (A) of paragraph (1), the 
actual value of a naval vessel of 3,000 tons or less and 20 
years or more of age shall be considered to be not less than 
the greater of the scrap value or fair value (including 
conversion costs) of such vessel, as determined by the 
Secretary of Defense.
    (3) The President may reduce the price required to be paid 
under paragraph (1)(A) for the sale of a defense article if 
such sale would--
          (A) facilitate the sale of a similar or related new 
        defense article that is manufactured in the United 
        States; or
          (B) serve the national security interests of the 
        United States.

           *       *       *       *       *       *       *

    Sec. 27. Authority of President to Enter into Cooperative 
Projects with Friendly Foreign Countries.--(a) * * *

           *       *       *       *       *       *       *

    [(g) In the case of a cooperative project with a North 
Atlantic Treaty Organization country, section 36(b) of this Act 
shall not apply to sales made under section 21 or 22 of this 
Act and to production and exports made pursuant to cooperative 
projects under this section, and section 36(c) of this Act 
shall not apply to the issuance of licenses or other approvals 
under section 38 of this Act, if such sales are made, such 
production and exports ensue, or such licenses or approvals are 
issued, as part of a cooperative project.]
    [(h)] (g) The authority under this section is in addition 
to the authority under sections 21 and 22 of this Act and under 
any other provision of law.
    [(i)] (h)(1) With the approval of the Secretary of State 
and the Secretary of Defense, a cooperative agreement which was 
entered into by the United States before the effective date of 
the amendment to this section made by the International 
Security and Development Cooperation Act of 1985 and which 
meets the requirements of this section as so amended may be 
treated on and after such date as having been made under this 
section as so amended.
    (2) Notwithstanding the amendment made to this section made 
by the International Security and Development Cooperation Act 
of 1985, projects entered into under the authority of this 
section before the effective date of that amendment may be 
carried through to conclusion in accordance with the terms of 
this section as in effect immediately before the effective date 
of that amendment.
    [(j)] (i) (1) The President may enter into a cooperative 
project agreement with any friendly foreign country not a 
member of the North Atlantic Treaty Organization under the same 
general terms and conditions as the President is authorized to 
enter into such an agreement with one or more member countries 
of the North Atlantic Treaty Organization if the President 
determines that the cooperative project agreement with such 
country would be in the foreign policy or national security 
interests of the United States.

           *       *       *       *       *       *       *

    Sec. 38. Control of Arms Exports and Imports.--(a)(1) * * *
    (b)(1) * * *
    (2) Except as otherwise specifically provided in 
regulations issued under subsection (a)(1) of this section and 
in effect on January 1, 2000, no defense articles or defense 
services designated by the President under subsection (a)(1) 
may be exported or imported without a license for such export 
or import, issued in accordance with this Act and regulations 
issued under this Act, except that no license shall be required 
for exports or imports made by or for an agency of the United 
States Government (A) for official use by a department or 
agency of the United States Government, or (B) for carrying out 
any foreign assistance or sales program authorized by law and 
subject to the control of the President by other means.

           *       *       *       *       *       *       *


   CHAPTER 7--CONTROL OF MISSILES AND MISSILE EQUIPMENT OR TECHNOLOGY

    Sec. 71. Licensing.--
    (a) Establishment of List of Controlled Items.-- * * *
    (d) Exports to Space Launch Vehicle Programs.--[Within 15 
days after the issuance of a license for the export of items 
valued at less than $14,000,000 that are controlled under this 
Act pursuant to United States obligations under the Missile 
Technology Control Regime and intended to support the design, 
development, or production of a space launch vehicle system 
listed in Category I of the MTCR Annex,] Within 15 days after 
the issuance of a license (including any brokering license) for 
the export of items valued at less than $50,000,000 that are 
controlled under this Act pursuant to United States obligations 
under the Missile Technology Control Regime or are goods or 
services that are intended to support the design, utilization, 
development, or production of a space launch vehicle system 
listed in Category I or II of the MTCR Annex, the Secretary 
shall transmit to the Congress a report describing the licensed 
export and rationale for approving such export, including the 
consistency of such export with United States missile 
nonproliferation policy. The requirement contained in the 
preceding sentence shall not apply to licenses for exports to 
countries that were members of the MTCR as of April 17, 1987.

           *       *       *       *       *       *       *


                          The Peace Corps Act


      TITLE I--THE [PEACE CORPS] PEACE CORPS OF THE UNITED STATES

    Section 1. Short Title. This Act may be cited as the 
``[Peace Corps] Peace Corps of the United States Act''.
    Sec. 2. Declaration of Purpose. (a) The Congress of the 
United States declares that it is the policy of the United 
States and the purpose of this Act to promote world peace and 
friendship through a [Peace Corps] Peace Corps of the United 
States, which shall make available to interested countries and 
areas men and women of the United States qualified for service 
abroad and willing to serve, under conditions of hardship if 
necessary, to help the peoples of such countries and areas in 
meeting their needs for trained manpower, particularly in 
meeting the basic needs of those living in the poorest areas of 
such countries, and to help , promote a better understanding of 
the American people on the part of the peoples served and a 
better understanding of other peoples on the part of the 
American people.
    (b) The Congress declares that it is the policy of the 
United States and a purpose of the [Peace Corps] Peace Corps of 
the United States to maintain, to the maximum extent 
appropriate and consistent with programmatic and fiscal 
considerations, a volunteer corps of at least 10,000 
individuals.
    Sec. 2A. [Peace Corps] Peace Corps of the United States as 
an Independent Agency. Effective on the date of the enactment 
of the International Security and Development Cooperation Act 
of 1981, the [Peace Corps] Peace Corps of the United States 
shall be an independent agency within the executive branch and 
shall not be an agency within the ACTION Agency, the successor 
to the ACTION Agency, or any other department or agency of the 
United States.
    Sec. 3. Authorization. (a) * * *

           *       *       *       *       *       *       *

    (g) In recognition of the fact that women in developing 
countries play a significant role in economic production, 
family support, and the overall development process, the [Peace 
Corps] Peace Corps of the United States shall be administered 
so as to give particular attention to those programs, projects, 
and activities which tend to integrate women into the national 
economics of developing countries, thus improving their status 
and assisting the total development effort.
    (h) In recognition of the fact that there are over 
400,000,000 disabled people in the world, 95 percent of whom 
are among the poorest of the poor, the [Peace Corps] Peace 
Corps of the United States shall be administered so as to give 
particular attention to programs, projects, and activities 
which tend to integrate disabled people into the national 
economies of developing countries, thus improving their status 
and assisting the total development effort.
    Sec. 4. Director of the [Peace Corps] Peace Corps of the 
United States and Delegation of Functions.-- (a) The President 
may appoint, by and with the advice and consent of the Senate, 
a Director of the [Peace Corps] Peace Corps of the United 
States and a Deputy Director of the Peace Corps.
    (b) The President may exercise any functions vested in him 
by this Act through the Director of the Peace Corps. The 
Director of the [Peace Corps] Peace Corps of the United States 
may promulgate such rules and regulations as he may deem 
necessary or appropriate to carry out such functions, and may 
delegate to any of his subordinates authority to perform any of 
such functions.
    (c)(1) Nothing contained in this Act shall be construed to 
infringe upon the powers or functions of the Secretary of 
State.
    (2) The President shall prescribe appropriate procedures to 
assure coordination of [Peace Corps] Peace Corps of the United 
States activities with other activities of the United States 
Government in each country, under the leadership of the chief 
of the United States diplomatic mission.
    (3) * * *
    (4) The Director of the [Peace Corps] Peace Corps of the 
United States may prescribe such regulations as may be 
necessary to assure that no individual performing service for 
the [Peace Corps] Peace Corps of the United States under any 
authority contained in this Act shall engage in any activity 
determined by the Director to be detrimental to the best 
interest of the United States.
    (d) Except with the approval of the Secretary of State, the 
[Peace Corps] Peace Corps of the United States shall not be 
assigned to perform services which could more usefully be 
performed by other available agencies of the United States 
Government in the country concerned.
    Sec. 5. [Peace Corps] Peace Corps of the United States 
Volunteers.  (a) The President may enroll in the [Peace Corps] 
Peace Corps of the United States for service abroad qualified 
citizens and nationals of the United States (referred to in 
this Act as ``volunteers''). The terms and conditions of the 
enrollment, training, compensation, hours of work, benefits, 
leave, termination, and all other terms and conditions of the 
service of volunteers shall be exclusively those set forth in 
this Act and those consistent therewith which the President may 
prescribe; and, except as provided in this Act, volunteers 
shall not be deemed officers or employees or otherwise in the 
service or employment of, or holding office under, the United 
States for any purpose. In carrying out this subsection there 
shall be no discrimination against any person on account of 
race, sex, creed, or color.

           *       *       *       *       *       *       *

    (g) The President may detail or assign volunteers or 
otherwise make them available to any entity referred to in 
paragraph (1) of section 10(a) on such terms and conditions as 
he may determine: Provided, That not to exceed two hundred 
volunteers may be assigned to carry out secretarial or clerical 
duties on the staffs of the [Peace Corps] Peace Corps of the 
United States representatives abroad: Provided, however, That 
any volunteer so detailed or assigned shall continue to be 
entitled to the allowances, benefits and privileges of 
volunteers authorized under or pursuant to this Act.

           *       *       *       *       *       *       *

    (j) Upon enrollment in the [Peace Corps] Peace Corps of the 
United States , every volunteer shall take the oath prescribed 
for persons appointed to any office of honor or profit by 
section 3331 of title 5, United States Code.

           *       *       *       *       *       *       *

    Sec. 6. [Peace Corps] Peace Corps of the United States 
Volunteer Leaders The President may enroll in the [Peace Corps] 
Peace Corps of the United States qualified citizens or 
nationals of the United States whose services are required for 
supervisory or other special duties or responsibilities in 
connection with programs under this Act (referred to in this 
Act as ``volunteer leaders''). The ratio of the total number of 
volunteer leaders to the total number of volunteers in service 
at any one time shall not exceed one to twenty-five. Except as 
otherwise provided in this Act, all of the provisions of this 
Act applicable to volunteers shall be applicable to volunteer 
leaders, and the term ``volunteers'' shall include ``volunteer 
leaders'': Provided, however, That--

           *       *       *       *       *       *       *

    Sec. 7. [Peace Corps] Peace Corps of the United States 
Employees (a)(1) For the purpose of performing functions under 
this Act outside the United States, the President may employ or 
assign persons, or authorize the employment or assignment of 
officers or employees of agencies of the United States 
Government which are not authorized to utilize the Foreign 
Service personnel system, who shall receive compensation at any 
of the rates established under section 402 or 403 of the 
Foreign Service Act of 1980, together with allowances and 
benefits thereunder; and persons so employed or assigned shall 
be entitled, except to the extent that the President may 
specify otherwise in cases in which the period of the 
employment or assignment exceeds thirty months, to the same 
benefits as are provided by section 310 of that Act for persons 
appointed to the Foreign Service Reserve.

           *       *       *       *       *       *       *

    (5) Except as provided in paragraph (6), the Director of 
the [Peace Corps] Peace Corps of the United States may make 
appointments or assignments of United States citizens under 
paragraph (2) for periods of more than five years only in the 
case of individuals whose performance as employees of the 
[Peace Corps] Peace Corps of the United States has been 
exceptional and only in order to achieve one or more of the 
following purposes:
          (A) * * *
          (D) To promote the continuity of functions in 
        administering the [Peace Corps] Peace Corps of the 
        United States.
At no time may the number of appointments or assignments of 
United States citizens in effect under paragraph (2) for 
periods in excess of five years exceed fifteen percent of the 
total of all appointments and assignments of United States 
citizens then in effect under paragraph (2).
    (6) Notwithstanding the limitation set forth in paragraph 
(2)(A) on the length of an appointment or assignment under 
paragraph (2) and notwithstanding the limitations set forth in 
paragraph (5) on the circumstances under such an appointment or 
assignment may exceed five years, the Director of the [Peace 
Corps] Peace Corps of the United States, under special 
circumstances, may personally approve an extension of an 
appointment or assignment under paragraph (2) for not more than 
one year on an individual basis.

           *       *       *       *       *       *       *

    (c) In each country or area in which volunteers serve 
abroad, the President may appoint an employee or a volunteer as 
a [Peace Corps] Peace Corps of the United States representative 
to have direction of other employees of the [Peace Corps] Peace 
Corps of the United States abroad and to oversee the activities 
carried on under this Act in such country or area. Unless a 
representative is a volunteer, the compensation, allowances and 
benefits, and other terms and conditions of service of each 
such representative, shall be the same as those of a person 
appointed or assigned pursuant to paragraph (1) or (2) of 
subsection (a) of this section, except that any such 
representative may, notwithstanding any provision of law, be 
removed by the President in his discretion.

           *       *       *       *       *       *       *

    Sec. 9. Participation of Foreign Nationals. In order to 
provide for assistance by foreign nationals in the training of 
volunteers, and to permit effective implementation of [Peace 
Corps] Peace Corps of the United States projects with due 
regard for the desirability of cost-sharing arrangements, where 
appropriate, the President may make provision for 
transportation, housing, subsistence, or per diem in lieu 
thereof, and health care or health and accident insurance for 
foreign nationals engaged in activities authorized by this Act 
while they are away from their homes, without regard to the 
provisions of any other law: Provided, however, That per diem 
in lieu of subsistence furnished to such persons shall not be 
at rates higher than those prescribed by the Secretary of State 
pursuant to section 12 of Public Law 84-855 (70 Stat. 890). 
Such persons, and persons coming to the United States under 
contract pursuant to section 10(a)(5), may be admitted to the 
United States, if otherwise qualified, as nonimmigrants under 
section 101(a)(15) of the Immigration and Nationality Act (8 
U.S.C. 1101(a)(15)) for such time and under such conditions as 
may be prescribed by regulations promulgated by the Secretary 
of State and the Attorney General. A person admitted under this 
section who fails to maintain the status under which he was 
admitted or who fails to depart from the United States at the 
expiration of the time for which he was admitted, or who 
engages in activities of a political nature detrimental to the 
interests of the United States, or in activities not consistent 
with the security of the United States, shall, upon the warrant 
of the Attorney General, be taken into custody and promptly 
removed pursuant to chapter 4 of title II of the Immigration 
and Nationality Act proceedings under this section shall be 
summary and the findings of the Attorney General as to matters 
of fact shall be conclusive.
    Sec. 10. General Powers and Authorities. (a) * * *

           *       *       *       *       *       *       *

          (4) accept in the name of the [Peace Corps] Peace 
        Corps of the United States and employ or transfer in 
        furtherance of the purposes of this Act (A) voluntary 
        services notwithstanding the provisions of section 1342 
        of title 31, United States Code, and (B) any money or 
        property (real, personal or mixed, tangible or 
        intangible) received by gift, devise, bequest, or 
        otherwise; and

           *       *       *       *       *       *       *

    (b) Notwithstanding any other provision of law, whenever 
the President determines that it will further the purposes of 
this Act, the President, under such regulations as he may 
prescribe, may settle and pay, in an amount not exceeding 
$20,000, any claim against the United States, for loss of or 
damage to real or personal property (including loss of 
occupancy or use thereof) belonging to, or for personal injury 
or death of, any person not a citizen or resident of the United 
States, where such claim arises abroad out of the act or 
omission of any [Peace Corps] Peace Corps of the United States 
employee or out of the act or omission of any volunteer, but 
only if such claim is presented in writing within one year 
after it accrues. Any amount paid in settlement of any claim 
under this subsection shall be accepted by the claimant in full 
satisfaction thereof and shall bar any further action or 
proceeding thereon.

           *       *       *       *       *       *       *

    (e) The President may allocate or transfer to any agency of 
the United States Government any funds available for carrying 
out the purposes of this Act including any advance received by 
the United States from any country or international 
organization under authority of this Act, but not to exceed 20 
per centum in the aggregate of such funds may be allocated or 
transferred to agencies other than the [Peace Corps] Peace 
Corps of the United States. Such funds shall be available for 
obligation and expenditure for the purposes of this Act in 
accordance with authority granted in this Act or under 
authority governing the activities of the agencies of the 
United States Government to which such funds are allocated or 
transferred.

           *       *       *       *       *       *       *

    (i) The Director of the [Peace Corps] Peace Corps of the 
United States shall have the same authority as is available to 
the Secretary of State under section 26(a) of the State 
Department Basic Authorities Act of 1956. For purposes of this 
subsection, the reference in such section 26(a) to a principal 
officer of the Foreign Service shall be deemed to be a 
reference to a [Peace Corps] Peace Corps of the United States 
representative and the reference in such section to a member of 
the Foreign Service shall be deemed to be a reference to a 
person employed, appointed, or assigned under this Act.
    (j) The provisions of section 30 of the State Department 
Basic Authorities Act of 1956 shall apply to volunteers and 
persons employed, appointed, or assigned under this Act, and to 
individuals employed under personal services contracts to 
furnish medical services abroad pursuant to subsection (a)(5) 
of this section. For purposes of this subsection, references to 
the Secretary in subsection (b) of such section shall be deemed 
to be references to the Director of the [Peace Corps] Peace 
Corps of the United States, references to the Secretary in 
subsection (f) of such section shall be deemed to be references 
to the President, and the reference in subsection (g) of such 
section to a principal representative of the United States 
shall be deemed to be a reference to a [Peace Corps] Peace 
Corps of the United States representative.
    Sec. 11. Reports. The President shall transmit to the 
Congress, at least once in each fiscal year, a report on 
operations under this Act. Each report shall contain 
information describing efforts undertaken to improve 
coordination of activities of the [Peace Corps] Peace Corps of 
the United States with activities of international voluntary 
service organizations, such as the United Nations volunteer 
program, and of host country voluntary service organizations, 
including--
          (1) a description of the purpose and scope of any 
        development project which the [Peace Corps] Peace Corps 
        of the United States undertook during the preceding 
        fiscal year as a joint venture with any such 
        international or host country voluntary service 
        organizations; and
          (2) recommendations for improving coordination of 
        development projects between the [Peace Corps] Peace 
        Corps of the United States and any such international 
        or host country voluntary service organizations.
    The President shall also include in the report a 
description of any plans to carry out the policy set forth in 
section 2(b) of this Act.
    Sec. 12. [Peace Corps] Peace Corps of the United States 
National Advisory Council. (a) Establishment.--A [Peace Corps] 
Peace Corps of the United States National Advisory Council 
(hereinafter in this section referred to as the ``Council'') 
shall be established in accordance with the provisions of this 
section.
    (b) Functions.--(1) The Council shall advise and consult 
with the President and the Director of the [Peace Corps] Peace 
Corps of the United States with regard to policies and programs 
designed to further the purposes of this Act and shall, as the 
Council considers appropriate, periodically report to the 
Congress with regard to the [Peace Corps] Peace Corps of the 
United States.
    (2) Members of the Council shall (subject to subsection 
(d)(1)) conduct on-site inspections, and make examinations, of 
the activities of the [Peace Corps] Peace Corps of the United 
States in the United States and in other countries in order 
to--
          (A) evaluate the accomplishments of the [Peace Corps] 
        Peace Corps of the United States;
          (B) assess the potential capabilities and the future 
        role of the [Peace Corps] Peace Corps of the United 
        States;
          (C) make recommendations to the President, the 
        Director of the Peace Corps, and, as the Council 
        considers appropriate, the Congress, for the purpose of 
        guiding the future direction of the [Peace Corps] Peace 
        Corps of the United States and of helping to ensure 
        that the purposes and programs of the [Peace Corps] 
        Peace Corps of the United States are carried out in 
        ways that are economical, efficient, responsive to 
        changing needs in developing countries and to changing 
        relationships among people, and in accordance with law; 
        and

           *       *       *       *       *       *       *

    (c) Membership.--(1) * * *
    (2)(A) The Council shall consist of fifteen voting members 
who shall be appointed by the President, by and with the advice 
and consent of the Senate. At least seven of such members shall 
be former [Peace Corps] Peace Corps of the United States 
volunteers, and not more than eight of such members shall be 
members of the same political party.

           *       *       *       *       *       *       *

    (3) In addition to the voting members of the Council, the 
Secretary of State and the Administrator of the Agency for 
International Development, or their designees, and the Director 
and Deputy Director of the [Peace Corps] Peace Corps of the 
United States, shall be non-voting members, ex officio, of the 
Council.
    (d) Compensation.--(1) * * *
          (A) * * *
          (B) while away from his or her home or regular place 
        of business on necessary travel, as determined by the 
        Director of the [Peace Corps] Peace Corps of the United 
        States, in the actual performance of duties as a 
        Council member, shall be paid per diem, travel, and 
        transportation expenses in the same manner as is 
        provided under subchapter I of chapter 57 of title 5, 
        United States Code

           *       *       *       *       *       *       *

    (h) Meetings, Bylaws, and Regulations.--(1) The Council 
shall hold a regular meeting during each calendar quarter and 
shall meet at the call of the President, the Director of the 
[Peace Corps] Peace Corps of the United States, the Council's 
Chair, or one-fourth of its members.
    (2) The Council shall prescribe such bylaws and regulations 
as it considers necessary to carry out its functions. Such 
bylaws and regulations shall include procedures for fixing the 
time and place of meetings, giving or waiving of notice of 
meetings, and keeping of minutes of meetings.
    (i) Reports to the President and the Director.--Not later 
than January 1, 1988, and not later than January 1 of each 
second year thereafter, the Council shall submit to the 
President and the Director of the [Peace Corps] Peace Corps of 
the United States a report on its views on the programs and 
activities of the [Peace Corps] Peace Corps of the United 
States. Each report shall contain a summary of the advice and 
recommendations provided by the Council to the President and 
the Director during the period covered by the report and such 
recommendations (including recommendations for administrative 
or legislative action) as the Council considers appropriate to 
make to the Congress. Within ninety days after receiving each 
such report, the President shall submit to the Congress a copy 
of the report, together with any comments concerning the report 
that the President or the Director considers appropriate.
    (j) Administrative Assistance.--The Director of the [Peace 
Corps] Peace Corps of the United States shall make available to 
the Council such personnel, administrative support services, 
and technical assistance as are necessary to carry out its 
functions effectively.

           *       *       *       *       *       *       *

    Sec. 15. Utilization of Funds. (a) * * *
          (4) purchase and hire of passenger motor vehicles: 
        Provided, That, except as may otherwise be provided in 
        an appropriation or other Act, passenger motor vehicles 
        for administrative purposes abroad may be purchased for 
        replacement only, and such vehicles may be exchanged or 
        sold and replaced by an equal number of such vehicles, 
        and the cost, including exchange allowance, of each 
        such replacement shall not exceed the applicable cost 
        limitation described in section 636(a)(5) of the 
        Foreign Assistance Act of 1961 in the case of an 
        automobile for any [Peace Corps] Peace Corps of the 
        United States country representative appointed under 
        section 7(c): Provided further, That the provisions of 
        section 1343 of Title 31, United States Code, shall not 
        apply to the purchase of vehicles for the 
        transportation, maintenance, or direct support of 
        volunteers overseas: Provided further, That passenger 
        motor vehicles may be purchased for use in the United 
        States only as may be specifically provided in an 
        appropriation or other Act;

           *       *       *       *       *       *       *

          (7) expenditures (not to exceed $20,000  in any 
        fiscal year except as may be otherwise provided in 
        appropriation or other Act) not otherwise authorized by 
        law to meet unforeseen emergencies or contingencies 
        arising in the [Peace Corps] Peace Corps of the United 
        States: Provided, That a certificate of the amount only 
        of each such expenditure and that such expenditure was 
        necessary to meet an unforeseen emergency or 
        contingency, made by the Director of the [Peace Corps] 
        Peace Corps of the United States or his designee, shall 
        be deemed a sufficient voucher for the amount therein 
        specified;

           *       *       *       *       *       *       *

          (13)  the transportation of [Peace Corps] Peace Corps 
        of the United States employees, [Peace Corps] Peace 
        Corps of the United States volunteers, dependents of 
        such employees and volunteers, and accompanying 
        baggage, by a foreign air carrier when the 
        transportation is between two places outside the United 
        States without regard to section 40118 of title 49, 
        United States Code.
    Sec. 16. Foreign Currency Fluctuations Account. (a) 
Establishment.--(1) There is established in the Treasury of the 
United States an account to be known as the ``Foreign Currency 
Fluctuations, [Peace Corps] Peace Corps of the United States, 
Account''. The account shall be used for the purpose of 
providing funds to pay expenses for operations of the [Peace 
Corps] Peace Corps of the United States outside the United 
States which, as a result of fluctuations in currency exchange 
rates, exceed the amount appropriated for such expenses.
    (2) Funds in the account may be transferred, upon the 
certification of the Director of the [Peace Corps] Peace Corps 
of the United States (or the Director's designee) that the 
transfer is necessary for the purpose specified in paragraph 
(1), to the account containing funds appropriated for the 
expenses of the Peace Corps.
    (b) Use of Funds in the Account.--Funds transferred under 
subsection (a) shall be merged with, and be available for the 
same time period, as the appropriation to which they are 
applied. Notwithstanding any provision of law limiting the 
amount of funds the [Peace Corps] Peace Corps of the United 
States may obligate in any fiscal year, such amount shall be 
increased to the extent necessary to reflect fluctuations in 
exchange rates from those used in preparing the budget 
submission.
    (c) Exchange Rates Applicable to Obligations.--An 
obligation of the [Peace Corps] Peace Corps of the United 
States payable in the currency of a foreign country may be 
recorded as an obligation based upon exchange rates used in 
preparing a budget submission. A change reflecting fluctuations 
in exchange rates may be recorded as a disbursement is made.
    (d) Transfers Back to Account.--Funds transferred from the 
Foreign Currency Fluctuations, [Peace Corps] Peace Corps of the 
United States, Account may be transferred back to that 
account--

           *       *       *       *       *       *       *

    (f) Transfers to the Account From Regular Appropriations.--
(1) At the end of the fiscal year or other period for which 
appropriations for the expenses of the [Peace Corps] Peace 
Corps of the United States are made available, unobligated 
balances of such appropriation may be transferred into the 
Foreign Currency Fluctuations, [Peace Corps] Peace Corps of the 
United States, Account, to be merged with, and to be available 
for the same period and purposes as, that account.

           *       *       *       *       *       *       *

    (g) Authorization of Appropriations.--There are authorized 
to be appropriated to the Foreign Currency Fluctuations, [Peace 
Corps] Peace Corps of the United States, Account for each 
fiscal year such sums as may be necessary to maintain a balance 
of $5,000,000 in such account at the beginning of such fiscal 
year.
    (h) Reports.--Each year the Director of the [Peace Corps] 
Peace Corps of the United States shall submit to the Committee 
on Foreign Affairs  and the Committee on Appropriations of the 
House of Representatives, and to the Committee on Foreign 
Relations and the Committee on Appropriations of the Senate, a 
report on funds transferred under this section.

           *       *       *       *       *       *       *

    Sec. 19. Exclusive Right to Seal and Name. (a) The 
President may adopt, alter and use an official seal or emblem 
of the [Peace Corps] Peace Corps of the United States of such 
design as he shall determine which shall be judicially noticed.
    (b)(1) The use of the official seal or emblem and the use 
of the name ``[Peace Corps] Peace Corps of the United States'' 
shall be restricted exclusively to designate programs 
authorized under this Act.
    (2) Whoever, whether an individual, partnership, 
corporation, or association, uses the seal for which provision 
is made in this section, of any sign, insignia, or symbol in 
colorable imitation thereof, or the words ``[Peace Corps] Peace 
Corps of the United States'' or any combination of these or 
other words or characters, in colorable imitation thereof, 
other than to designate programs authorized under this Act, 
shall be fined not more than $500 or imprisoned not more than 
six months, or both. A violation of this subsection may be 
enjoined at the suit of the Attorney General, United States 
attorneys, or other persons duly authorized to represent the 
United States.

           *       *       *       *       *       *       *

    Sec. 23. Universal Military Training and Service Act. 
Notwithstanding the provisions of any other law or regulation, 
service in the [Peace Corps] Peace Corps of the United States 
as a volunteer shall not in any way exempt such volunteer from 
the performance of any obligations or duties under the 
provisions of the Universal Military Training and Service Act.

           *       *       *       *       *       *       *


         TITLE III--ENCOURAGEMENT OF VOLUNTARY SERVICE PROGRAMS

    Sec. 301. (a) * * *
    (b)(1) Activities carried out by the President in 
furtherance of the purposes of clauses (1) and (2) of 
subsection (a) shall be limited to--
          (A) furnishing technical assistance, materials, 
        tools, supplies, and training appropriate to the 
        support of volunteer programs in such countries or 
        areas; and
          (B) conducting demonstration projects in such 
        countries or areas.
None of the funds made available to carry out the purposes of 
clauses (1) and (2) of subsection (a) may be used to pay the 
administrative costs of any program or project, other than a 
demonstration project, or to assist any program or project of a 
paramilitary or military nature. Funds allocated for activities 
set forth in this paragraph should be kept to a minimum so that 
such allocation will not be detrimental to other [Peace Corps] 
Peace Corps of the United States programs and activities.
    (2)  Not more than 2 per centum of the amount appropriated 
to the [Peace Corps] Peace Corps of the United States for a 
fiscal year may be used in such fiscal year to carry out the 
provisions of clause (3) of subsection (a) of this section. 
Such funds may be contributed to educational institutions, 
private voluntary organizations, international organizations, 
and foreign governments or agencies thereof, to pay a fair and 
proportionate share of the costs of encouraging the development 
of, and participation in, international voluntary programs and 
activities.
    (c) Such activities shall not compromise the national 
character of the [Peace Corps] Peace Corps of the United 
States.

           *       *       *       *       *       *       *


Support for East European Democracy (SEED) Act

           *       *       *       *       *       *       *


    Sec. 202. (a) Purposes.

           *       *       *       *       *       *       *

    (d) Designation of Enterprise Funds.--
          (1) Designation.--The President is authorized to 
        designate two private, nonprofit organizations as 
        eligible to receive funds and support pursuant to this 
        section upon determining that such organizations have 
        been established for the purposes specified in 
        subsection (a) of this section. For purposes of this 
        chapter, the organizations so designated shall be 
        referred to as the Polish-American Enterprise Fund and 
        the Hungarian-American Enterprise Fund (hereinafter in 
        this section referred to as the ``Enterprise Funds'').
          (2) Consultation with congress.--The President shall 
        consult with the [leadership of each House of Congress] 
        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. before 
        designating an organization pursuant to paragraph (1).

           *       *       *       *       *       *       *


             The International Financial Institutions Act

           *       *       *       *       *       *       *



                        TITLE XIII--THE ENVIRONMENT

           *       *       *       *       *       *       *


    Sec. 1303. (a) * * *
    (c) Based on the information obtained during the evaluation 
referred to in subsection (a) and other available information, 
the Administrator of the Agency for International Development, 
in consultation with the Secretary of the Treasury and the 
Secretary of State, shall identify those assistance proposals 
likely to have adverse impacts on the environment, natural 
resources, public health, or indigenous peoples. The proposals 
so identified shall be transmitted to the Committee on 
Appropriations and the Committee on Banking, Finance and Urban 
Affairs of the House of Representatives and the Committee on 
Appropriations and the Committee on Foreign Relations of the 
Senate, not later than June 30 [and December 31] of each year 
following the date of enactment of this title.

           *       *       *       *       *       *       *


SEC. 1705. ANNUAL REPORT AND TESTIMONY ON THE STATE OF THE 
                    INTERNATIONAL FINANCIAL SYSTEM, IMF REFORM, AND 
                    COMPLIANCE WITH IMF AGREEMENTS.

    (a) Reports.--Not later than October 1 of each year, the 
Secretary of the Treasury shall submit to the Committee on 
Banking and Financial Services of the House of Representatives 
and the Committee on Foreign Relations of the Senate a written 
report on (1) the progress (if any) made by the United States 
Executive Director at the International Monetary Fund in 
influencing the International Monetary Fund to adopt the 
policies and reform its internal procedures in the manner 
described in section 262o-2 of this title (2) the progress made 
by the International Monetary Fund in adopting and implementing 
the policies described in section 401(c)(1)(C) of the Technical 
Assistance, Trade Promotion, and Anti-Corruption Act of 2000.

           *       *       *       *       *       *       *


                    TITLE XVIII--EXPORT ENHANCEMENT

           *       *       *       *       *       *       *



SEC. 1803. COMMERCIAL SERVICE OFFICERS AND MULTILATERAL DEVELOPMENT 
                    BANK PROCUREMENT.

    (a) * * *

           *       *       *       *       *       *       *


SEC. 1804. OPPOSITION TO ASSISTANCE BY INTERNATIONAL FINANCIAL 
                    INSTITUTIONS FOR SURPLUS COMMODITIES.

  The Secretary of the Treasury shall instruct the United 
States Executive Directors of the International Bank for 
Reconstruction and Development, the International Development 
Association, the International Finance Corporation, the Inter-
American Development Bank, the International Monetary Fund, the 
Asian Development Bank, the Inter-American Investment 
Corporation, the North American Development Bank, the European 
Bank for Reconstruction and Development, the African 
Development Bank, and the African Development Fund to use the 
voice and vote of the United States to oppose any assistance by 
these institutions, using funds appropriated pursuant to law, 
for the production or extraction of any commodity or mineral 
for export, if it is in surplus on world markets and if the 
assistance will cause substantial injury to United States 
producers of the same, similar, or competing commodity.

           *       *       *       *       *       *       *


The Horn of Africa Recovery and Food Security Act

           *       *       *       *       *       *       *


    Sec. 6. Horn of Africa Food Security and Recovery Strategy. 
(a) * * *

           *       *       *       *       *       *       *

    (h) Developmental Assistance Authorities.--Developmental 
assistance to carry out this section shall be provided pursuant 
to the authorities of chapter 1 of part I (relating to 
development [assistance) and] assistance) chapter 10 of part I 
(relating to the Development Fund for Africa) of the, and 
chapter 4 of part II (relating to economic support fund 
assistance) Foreign Assistance Act of 1961.

           *       *       *       *       *       *       *


                   The Bretton Woods Agreements Act

           *       *       *       *       *       *       *



SEC. 62. APPROVAL OF CONTRIBUTIONS FOR DEBT REDUCTIONS FOR THE POOREST 
                    COUNTRIES.

    For the purpose of mobilizing the resources of the Fund in 
order to help reduce poverty and improve the lives of residents 
of poor countries and, in particular, to allow those poor 
countries with unsustainable debt burdens to receive deeper, 
broader, and faster debt relief, without allowing gold to reach 
the open market or otherwise adversely affecting the market 
price of gold, the Secretary of the Treasury is authorized to 
instruct the United States Executive Director of the Fund to 
vote--
          (1) to approve an arrangement whereby the Fund--
                  (A) sells a quantity of its gold at 
                prevailing market prices to a member or members 
                in nonpublic transactions sufficient to 
                generate 2.226 billion Special Drawing Rights 
                in profits on such sales;
                  (B) immediately after, and in conjunction 
                with each such sale, accepts payment by such 
                member or members of such gold to satisfy 
                existing repurchase obligations of such member 
                or members so that the Fund retains ownership 
                of the gold at the conclusion of such payment; 
                and
                  (C) uses the earnings on the investment of 
                the profits of such sales through a separate 
                subaccount, only for the purpose of providing 
                debt relief from the Fund under the modified 
                Heavily Indebted Poor Countries (HIPC) 
                Initiative (as defined in section 1623 of the 
                International Financial Institutions Act); and
                  [(D) shall not use more than 9/14 of the 
                earnings on the investment of the profits of 
                such sales; and]
          (2) to support a decision that shall terminate the 
        Special Contingency Account 2 (SCA-2) of the Fund so 
        that the funds in the SCA-2 shall be made available to 
        the poorest countries. Any funds attributable to the 
        United States participation in SCA-2 shall be used only 
        for debt relief from the Fund under the modified HIPC 
        Initiative.

                         13 United States Code

           *       *       *       *       *       *       *



  CHAPTER 9. COLLECTION AND PUBLICATION OF FOREIGN COMMERCE AND TRADE 
STATISTICS

           *       *       *       *       *       *       *



SEC. 304. FILING EXPORT INFORMATION, DELAYED FILINGS, PENALTIES FOR 
                    FAILURE TO FILE.

    (a) The information of reports in connection with the 
exportation or transportation of cargo required to be filed by 
carriers with the Secretary of the Treasury under any rule, 
regulation, or order issued pursuant to this chapter may be 
filed after the departure of such carrier from the port or 
place of exportation or transportation, whether such departing 
carrier is destined directly to a foreign port or place or to a 
noncontiguous area, or proceeds by way of other ports or places 
of the United States, provided that a bond in an approved form 
in [the penal sum of $1,000] a penal sum of $10,000 is filed 
with the Secretary of the Treasury. The Secretary of Commerce 
may, by a rule, regulation, or order issued in conformity 
herewith, prescribe a maximum period after such departure 
during which the required information or reports may be filed. 
In the event any such information or report is not filed within 
such prescribed period, [a penalty not to exceed $100 for each 
day's delinquency beyond the prescribed period, but not more 
than $1,000] a penalty not to exceed $1,000 for each day's 
delinquency beyond the prescribed period but not more than 
$10,000, shall be exacted. Civil suit may be instituted in the 
name of the United States against the principal and surety for 
the recovery of any penalties that may accrue and be exacted in 
accordance with the terms of the bond.
    (b) The Secretary may remit or mitigate any penalty 
incurred for violations of this section and regulations issued 
pursuant thereto if, in his opinion, they were incurred without 
willful negligence or fraud, or other circumstances justify a 
remission or mitigation.

[SEC. 305. VIOLATIONS, PENALTIES.

    [Any person, including the owners or operators of carriers, 
violating the provisions of this chapter, or any rule, 
regulation, or order issued thereunder, except as provided in 
section 304 above, shall be liable to a penalty not to exceed 
$1,000 in addition to any other penalty imposed by law. The 
amount of any such penalty shall be payable into the Treasury 
of the United States and shall be recoverable in a civil suit 
in the name of the United States.]

SEC. 305. PENALTIES FOR UNLAWFUL EXPORT INFORMATION ACTIVITIES.

  (a) Any person who knowingly fails to file or knowingly 
submits false or misleading export information through the 
Shipper's Export Declaration (SED) (or any successor document) 
or the Automated Export System (AES) shall be subject to a fine 
not to exceed $10,000, or imprisoned for not more than 5 years, 
or both.
  (b) Any person who knowingly reports any information on or 
uses the SED or the AES to further any illegal activity shall 
be subject to a fine not to exceed $10,000, or imprisoned for 
not more than 5 years, or both.
  (c) Any person violating the provisions of this chapter or 
any rule, regulation, or order issued thereunder, except as 
provided in section 304, shall be subject to a penalty not to 
exceed $10,000 in addition to any other penalty imposed by law. 
The amount of any such penalty shall be payable into the 
Treasury of the United States and shall be recoverable in a 
civil suit in the name of the United States.
  (d) The Secretary may remit or mitigate any penalties imposed 
under subsection (c) if, in the Secretary's opinion--
          (1) they were incurred without willful negligence or 
        fraud; or
          (2) other circumstances exist that justify a 
        remission or mitigation.

                     Repeal of Obsolete Provisions

                              ----------                              


                  The Jobs Through Exports Act of 1992

           TITLE I--OVERSEAS PRIVATE INVESTMENT CORPORATION

           *       *       *       *       *       *       *


                TITLE II--TRADE AND DEVELOPMENT AGENCY

           *       *       *       *       *       *       *


              [TITLE III--AID, TRADE, AND COMPETITIVENESS

[SEC. 301. SHORT TITLE.

    [This title may be cited as the ``Aid, Trade, and 
Competitiveness Act of 1992''.

[SEC. 302. CAPITAL PROJECTS OFFICE WITHIN THE AGENCY FOR INTERNATIONAL 
                    DEVELOPMENT.

    [(a) Establishment of Office. The Administrator of AID 
shall establish a capital projects office to carry out the 
purposes described in subsection (b).
    [(b) Purposes of Office. The purposes referred to in 
subsection (a) are--
          [(1) to develop an AID program that would focus 
        solely on developmentally sound capital projects, 
        taking into consideration development needs of the host 
        country and the export opportunities for the United 
        States; and
          [(2) to consider specifically opportunities for 
        United States high-technology firms, including small- 
        and medium-sized firms, in supporting capital projects 
        for developing countries and for countries making the 
        transition from nonmarket to market economies.
    [(c) Activities of AID. The Administrator of AID (acting 
through the capital projects office), in coordination with the 
appropriate members of the Trade Promotion Coordination 
Committee--
          [(1) shall support capital projects in developing 
        countries and in countries making the transition from 
        nonmarket to market economies;
          [(2) shall periodically review infrastructure needs 
        in developing countries and countries making the 
        transition from nonmarket to market economies and shall 
        explore opportunities for United States firms in the 
        development of new capital projects in these countries, 
        keeping both United States firms and the Congress 
        informed of these reviews;
          [(3) shall ensure that each capital project for which 
        AID provides funding is developmentally sound, as 
        determined under the criteria developed by the 
        Development Assistance Committee of the Organization 
        for Economic Cooperation and Development;
          [(4) shall coordinate its activities with other AID 
        offices, and work with AID country missions, in 
        developing capital projects that provide opportunities 
        for United States firms consistent with AID's primary 
        mission to help developing countries with traditional 
        development projects;
          [(5) shall coordinate, where appropriate, funds 
        available to AID for tied-aid purposes; and
          [(6) shall play a special role in helping to meet the 
        infrastructure needs of countries making the transition 
        from nonmarket to market economies by meeting the 
        challenge of infrastructure assistance provided by 
        foreign governments to those countries, including by 
        undertaking a comprehensive study of the infrastructure 
        needs of the various countries making the transition 
        from nonmarket to market economies--
                  [(A) to identify those sectors in the 
                economies of these countries that are most in 
                need of rebuilding, and
                  [(B) to identify the state of technology in 
                these countries and the opportunity for United 
                States high technology firms to help develop a 
                technological infrastructure in these 
                countries, including an assessment of export 
                opportunities for United States high technology 
                companies.
    [The results of the study conducted pursuant to paragraph 
(6) shall be reported to the appropriate congressional 
committees within 12 months after the date of the enactment of 
this Act.

[SEC. 303. CAPITAL PROJECTS FOR POVERTY ALLEVIATION AND ENVIRONMENTAL 
                    SAFETY AND SUSTAINABILITY.

    [(a) Purposes. The Administrator of AID shall develop a 
program, in accordance with subsection (b), that focuses on 
developmentally sound capital projects for basic infrastructure 
that will measurably alleviate the worst manifestations of 
poverty or directly promote environmental safety and 
sustainability at the community level, taking into 
consideration development needs of the host country and export 
opportunities for services and goods from the United States.
    [(b) Activities of AID. In order to carry out subsection 
(a), the Administrator of AID shall, working with AID technical 
support staff, regional bureau staff, and country missions, 
identify and provide funding for capital projects to alleviate 
the worst manifestations of poverty or to promote environmental 
safety and sustainability at the community level in countries 
receiving assistance under part I of the Foreign Assistance Act 
of 1961. Such projects may include basic sanitation systems, 
basic water supply and treatment, pollution control, and rural 
infrastructure benefiting poor communities or establishing 
environmentally sustainable patterns of rural development. Such 
projects should have measurable positive effects on indicators 
of human and environmental health.

[SEC. 304. COORDINATION.

    [The President shall use the Trade Promotion Coordination 
Committee to coordinate activities under this title with other 
relevant activities of the United States Government.

[SEC. 305. REPORTS TO CONGRESS ON CAPITAL PROJECTS.

    [Not later than May 1, 1993, the President shall submit to 
the Congress a report describing--
          [(1) the extent to which United States Government 
        resources have been expended specifically to support 
        the projects described in this title in developing 
        countries and countries making the transition from 
        nonmarket to market economies;
          [(2) the extent to which the activities of the United 
        States Government have been coordinated pursuant to 
        section 304; and
          [(3) the extent to which United States Government 
        capital projects and tied-aid credit programs have 
        affected United States exports.

[SEC. 306. FUNDING FOR CAPITAL PROJECTS.

    [(a) Funding Level. The Congress strongly urges the 
President to use at least $650,000,000 for fiscal year 1993 and 
at least $700,000,000 for fiscal year 1994 of the total amounts 
made available for assistance under chapter 4 of part II of the 
Foreign Assistance Act of 1961 (relating to the economic 
support fund), assistance under the Support for East European 
Democracy (SEED) Act of 1989, assistance under the Freedom for 
Russia and Emerging Eurasian Democracies and Open Markets 
Support Act of 1992, and assistance under the Multilateral 
Assistance Initiative for the Philippines, for grants for 
developmentally sound capital projects. Such grants may be 
combined with financing offered by private financial entities 
or other entities.
    [(b) Development Assistance Capital Projects. Funds 
appropriated to carry out chapter 1 or chapter 10 of part I of 
the Foreign Assistance Act of 1961 (relating to development 
assistance and the Development Fund for Africa) may not be used 
for capital projects that do not meet the criteria contained in 
section 303 of this Act. This subsection does not apply with 
respect to capital projects for which funds have been obligated 
or expended before the date of the enactment of this Act.

[SEC. 307. REPORT ON THE FEASIBILITY OF AID CREDIT GUARANTEES TO 
                    FINANCE CAPITAL PROJECTS.

    [Not later than May 1, 1993, the President shall submit 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 a report on the feasibility of 
allowing AID to offer credit guarantees for the financing of 
capital projects.

[SEC. 308. DEFINITIONS.

    [For purposes of this title--
          [(1) the term ``AID'' means the Agency for 
        International Development; and
          [(2) the term ``capital project'' means a project 
        involving the construction, expansion, alteration of, 
        or the acquisition of equipment for, a physical 
        facility or physical infrastructure, including related 
        engineering design (concept and detail) and other 
        services, the procurement of equipment (including any 
        related services), and feasibility studies or similar 
        engineering and economic services.]

           [TITLE I--OVERSEAS PRIVATE INVESTMENT CORPORATION

[SECTION 1. SHORT TITLE.

    [This Act may be cited as the ``Overseas Private Investment 
Corporation Amendments Act of 1988''.]

           *       *       *       *       *       *       *


[SEC. 109. SMALL AND MINORITY-OWNED BUSINESSES.

    [(a) Findings.--The Congress finds that--
          [(1) the Overseas Private Investment Corporation has 
        a consistent record of encouraging United States 
        business investment in the world's developing 
        countries;
          [(2) 62 percent of the open projects supported by the 
        Corporation during fiscal year 1987 were located in the 
        poorest of developing countries; and
          [(3) United States small businesses participated in 
        34 percent of the open projects supported by the 
        Corporation during fiscal year 1987.
    [(b) Sense of Congress.--It is the sense of the Congress 
that--
          [(1) the Overseas Private Investment Corporation 
        should continue to encourage United States small 
        businesses to invest in the world's developing 
        countries; and
          [(2) the Corporation should continue to encourage 
        United States small businesses that are minority-owned 
        to invest in the world's developing countries as these 
        businesses are well suited to the economic and social 
        development needs of such countries.]

           *       *       *       *       *       *       *


[SEC. 111. OPIC PROGRAMS IN HAITI.

    [Prohibitions on United States assistance for Haiti during 
fiscal year 1988 shall not be construed to apply with respect 
to the Overseas Private Investment Corporation unless the 
prohibition specifically states that it applies with respect to 
the Overseas Private Investment Corporation.]

              [International Narcotics Control Act of 1988

[SECTION 1. SHORT TITLE.

    [This Act may be cited as the ``Anti-Drug Abuse Act of 
1988''.]

           *       *       *       *       *       *       *


               [TITLE IV--INTERNATIONAL NARCOTICS CONTROL

[SEC. 4702. RESTRICTIONS ON LAUNDERING OF UNITED STATES CURRENCY.

    [(a) Findings.--The Congress finds that international 
currency transactions, especially in United States currency, 
that involve the proceeds of narcotics trafficking fuel trade 
in narcotics in the United States and worldwide and 
consequently are a threat to the national security of the 
United States.
    [(b) Purpose.--The purpose of this section is to provide 
for international negotiations that would expand access to 
information on transactions involving large amounts of United 
States currency wherever those transactions occur worldwide.
    [(c) Negotiations.--(1) The Secretary of the Treasury 
(hereinafter in this section referred to as the ``Secretary'') 
shall enter into negotiations with the appropriate financial 
supervisory agencies and other officials of any foreign country 
the financial institutions of which do business in United 
States currency. Highest priority shall be attached to 
countries whose financial institutions the Secretary 
determines, in consultation with the Attorney General and the 
Director of National Drug Control Policy, may be engaging in 
currency transactions involving the proceeds of international 
narcotics trafficking, particularly United States currency 
derived from drug sales in the United States.
    [(2) The purposes of negotiations under this subsection 
are--
          [(A) to reach one or more international agreements to 
        ensure that foreign banks and other financial 
        institutions maintain adequate records of large United 
        States currency transactions, and
          [(B) to establish a mechanism whereby such records 
        may be made available to United States law enforcement 
        officials.
[In carrying out such negotiations, the Secretary should seek 
to enter into and further cooperative efforts, voluntary 
information exchanges, the use of letters rogatory, and mutual 
legal assistance treaties.
    [(d) Reports.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall submit an interim 
report to the Committee on Banking, Finance and Urban Affairs 
of the House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate on progress in the 
negotiations under subsection (c). Not later than 2 years after 
such enactment, the Secretary shall submit a final report to 
such Committees and the President on the outcome of those 
negotiations and shall identify, in consultation with the 
Attorney General and the Director of National Drug Control 
Policy, countries--
          [(1) with respect to which the Secretary determines 
        there is evidence that the financial institutions in 
        such countries are engaging in currency transactions 
        involving the proceeds of international narcotics 
        trafficking; and
          [(2) which have not reached agreement with United 
        States authorities on a mechanism for exchanging 
        adequate records on international currency transactions 
        in connection with narcotics investigations and 
        proceedings.
    [(e) Authority.--If after receiving the advice of the 
Secretary and in any case at the time of receipt of the 
Secretary's report, the Secretary determines that a foreign 
country--
          [(1) has jurisdiction over financial institutions 
        that are substantially engaging in currency 
        transactions that effect the United States involving 
        the proceeds of international narcotics trafficking;
          [(2) such country has not reached agreement on a 
        mechanism for exchanging adequate records on 
        international currency transactions in connection with 
        narcotics investigations and proceedings; and
          [(3) such country is not negotiating in good faith to 
        reach such an agreement,
[the President shall impose appropriate penalties and 
sanctions, including temporarily or permanently--
          [(1) prohibiting such persons, institutions or other 
        entities in such countries from participating in any 
        United States dollar clearing or wire transfer system; 
        and
          [(2) prohibiting such persons, institutions or 
        entities in such countries from maintaining an account 
        with any bank or other financial institution chartered 
        under the laws of the United States or any State.
[Any penalties or sanctions so imposed may be delayed or waived 
upon certification of the President to the Congress that it is 
in the national interest to do so. Financial institutions in 
such countries that maintain adequate records shall be exempt 
from such penalties and sanctions.
    [(f) Definitions.--For the purposes of this section--
          [(1) The term ``United States currency'' means 
        Federal Reserve Notes and United States coins.
          [(2) The term ``adequate records'' means records of 
        United States' currency transactions in excess of 
        $10,000 including the identification of the person 
        initiating the transaction, the person's business or 
        occupation, and the account or accounts affected by the 
        transaction, or other records of comparable effect.]

      Foreign Operations, Export Financing, and Related Programs 
Appropriations Act of 1988

           *       *       *       *       *       *       *


    Sec. 101. * * *
    (e) * * *

           *       *       *       *       *       *       *


                         ENVIRONMENTAL CONCERNS

    Sec. 537. * * *
    (h) The Administrator of the Agency for International 
Development, in consultation with the Secretaries of Treasury 
and State, shall continue, and work to enhance, the operation 
of the ``early warning system'', by--
          (1) instructing overseas missions of the Agency for 
        International Development and embassies of the United 
        States to analyze the impacts of multilateral 
        Development Bank loans well in advance of a loan's 
        approval. Such reviews shall address the economic 
        viability of the project; adverse impacts on the 
        environment, natural resources, public health, and 
        indigenous peoples; and recommendations as to measures, 
        including alternatives, that could eliminate or 
        mitigate adverse impacts. If not classified under the 
        national security system of classification, such 
        information shall be made available to the public;
          [(2) compiling a list of proposed Multilateral 
        Development Bank loans likely to have adverse impacts 
        on the environment, natural resources, public health, 
        or indigenous peoples. The list shall contain the 
        information identified in paragraph (1), shall be 
        updated in consultation with interested members of the 
        public, and shall be made available to the Committees 
        on Appropriations by April 1, 1988 and semiannually 
        thereafter; and]

           *       *       *       *       *       *       *


                   The Narcotics Control Trade Act

           *       *       *       *       *       *       *


   TITLE VIII--TARIFF TREATMENT OF PRODUCTS OF, AND OTHER SANCTIONS 
 AGAINST, UNCOOPERATIVE MAJOR DRUG PRODUCING OR DRUG-TRANSIT COUNTRIES

SEC. 801. SHORT TITLE.

    This title may be cited as the ``Narcotics Control Trade 
Act''.

           *       *       *       *       *       *       *


SEC. 802. TARIFF TREATMENT OF PRODUCTS OF UNCOOPERATIVE MAJOR DRUG 
                    PRODUCING OR DRUG-TRANSIT COUNTRIES.

    (a) Required Action by President. * * *
  [(e) For each calendar year, the Secretary of State, after 
consultation with the appropriate committees of the Congress, 
shall establish numerical standards and other guidelines for 
determining which countries will be considered to be major 
drug-transit countries under section 805(3)(A) and (B).]

           *       *       *       *       *       *       *


[SEC. 804. PROGRESS REPORTS.

    [The President shall include as a part of the annual report 
required under section 489 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2291h) an evaluation of progress that each 
major drug producing country and each major drug-transit 
country has made during the reporting period in achieving the 
objectives set forth in section 802(b).]

Foreign Assistance and Related Programs Appropriations Act, 1987

           *       *       *       *       *       *       *


    Sec. 539. (a) * * *

           *       *       *       *       *       *       *

    (g) The Administrator for the Agency for International 
Development in conjunction with the Secretaries of Treasury and 
State shall--
          (1) instruct overseas missions of the Agency for 
        International Development and embassies of the United 
        States to analyze the impacts of Multilateral 
        Development Bank projects proposed to be undertaken in 
        the host country well in advance of a project's 
        approval by the relevant institution. Such reviews 
        shall address the economic viability of the project; 
        adverse impacts on the environment, natural resources, 
        and indigenous peoples; and recommendations as to 
        measures, including alternatives, that could eliminate 
        or mitigate adverse impacts. If not classified under 
        the national security system of classification, such 
        information shall be made available to the public;
          [(2) in preparation of reviews required by subsection 
        (g)(1), compile a list of categories of projects likely 
        to have adverse impacts on the environment, natural 
        resources, or indigenous peoples. The list shall be 
        developed in consultation with interested members of 
        the public and made available to the Committee on 
        Appropriations by December 31, 1986 and semiannually 
        thereafter; and]
          (3) study the feasibility of creating a cooperative 
        ``early warning system'' for projects of concern with 
        other interested donors.

           *       *       *       *       *       *       *


               International Narcotics Control Act of 1986

[SECTION. 1. SHORT TITLE.

    [This Act may be cited as the ``Anti-Drug Abuse Act of 
1986''.]

           *       *       *       *       *       *       *


               [TITLE II--INTERNATIONAL NARCOTICS CONTROL

[SEC. 2018. MULTILATERAL DEVELOPMENT BANK ASSISTANCE FOR DRUG 
                    ERADICATION AND CROP SUBSTITUTION PROGRAMS.

    [(a) MDB Assistance for Development and Implementation of 
Drug Eradication Program.--The Secretary of the Treasury shall 
instruct the United States Executive Directors of the 
multilateral development banks to initiate discussions with 
other Directors of their respective banks and to propose that 
all possible assistance be provided to each major illicit drug 
producing country for the development and implementation of a 
drug eradication program, including technical assistance, 
assistance in conducting feasibility studies and economic 
analyses, and assistance for alternate economic activities.
    [(b) Increases in Multilateral Development Bank Lending for 
Crop Substitution Projects.--The Secretary of the Treasury 
shall instruct the United States Executive Directors of the 
multilateral development banks to initiate discussions with 
other Directors of their respective banks and to propose that 
each such bank increase the amount of lending by such bank for 
crop substitution programs which will provide an economic 
alternative for the cultivation or production of illicit 
narcotic drugs or other controlled substances in major illicit 
drug producing countries, to the extent such countries develop 
and maintain adequate drug eradication programs.
    [(c) National Advisory Council Report.--The Secretary of 
the Treasury shall include in the annual report to the Congress 
by the National Advisory Council on International Monetary and 
Financial Policies a detailed accounting of the manner in which 
and the extent to which the provisions of this section have 
been carried out.
    [(d) Definitions.--For purposes of this section--
          [(1) Multilateral development bank.--The term 
        ``multilateral development bank'' means the 
        International Bank for Reconstruction and Development, 
        the International Development Association, the Inter-
        American Development Bank, the African Development 
        Bank, and the Asian Development Bank.
          [(2) Major illicit drug producing country.--The term 
        ``major illicit drug producing country'' has the 
        meaning provided in section 481(i)(2) of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 229(i)(2)).
          [(3) Narcotic drug and controlled substance.--The 
        terms ``narcotic drug'' and ``controlled substance'' 
        have the meanings given to such terms in section 102 of 
        the Controlled Substances Act (21 U.S.C. 802).]

                 Special Foreign Assistance Act of 1986

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Special Foreign Assistance 
Act of 1986''.

  TITLE I--PROMOTING IMMUNIZATION AND ORAL REHYDRATION IN DEVELOPING 
                               COUNTRIES

SEC. 101. FINDINGS.

           *       *       *       *       *       *       *


                 TITLE II--PROMOTING DEMOCRACY IN HAITI

[SEC. 201. FINDINGS CONCERNING HAITI.

    [The Congress finds that--
          [(1) the establishment of an interim government in 
        Haiti committed to a restoration of democracy provides 
        Haiti with an opportunity to build the political, 
        social, and economic institutions necessary to promote 
        Haiti's development, to provide a better future for the 
        people of Haiti, and to provide the framework for more 
        effective mutual cooperation with the United States, 
        Haiti's neighbor in the Caribbean, and the other 
        nations of the Hemisphere;
          [(2) the magnitude of the political, economic, and 
        social tasks facing the people of Haiti will make the 
        achievement of a better future a difficult task which 
        will require a determined and sustained effort by the 
        Haitian people over a long period of time and will 
        require significant external assistance from the United 
        States and other donors; and
          [(3) it is in the interest of the United States to 
        provide appropriate support for the development of 
        Haiti, a close neighbor which is one of the world's 
        poorest nations and which is committed to the 
        establishment of a democratic government.

[SEC. 202. ECONOMIC ASSISTANCE FOR HAITI.

    [(a) Earmarking of Funds.--Not less than $108,000,000 of 
the aggregate amounts available for fiscal year 1987 to carry 
out sections 103 through 106 of the Foreign Assistance Act of 
1961 (relating to development assistance), chapter 4 of part II 
of that Act (relating to the Economic Support Fund), and titles 
I and II of the Agricultural Trade Development and Assistance 
Act of 1954 (relating to the Food for Peace Program) shall be 
available only for Haiti.
    [(b) Use of Development Assistance.--Assistance under 
sections 103 through 106 of the Foreign Assistance Act of 1961 
which is provided for Haiti pursuant to subsection (a) shall be 
used to support a transition to democracy in Haiti, emphasizing 
foreign investment, job creation (especially in the private 
sector), rural development, health care and sanitation, small-
scale irrigation, reforestation and land conservation, and 
literacy education. Such assistance should reflect the need to 
distribute development assistance resources more equitably 
among the various regions in Haiti in order to support 
sustainable development in all of Haiti.
    [(c) Requirement for Segregated Account for Economic 
Support Assistance Funds Paid to Government of Haiti.--Funds 
under chapter 4 of part II of the Foreign Assistance Act of 
1961 which are made available for Haiti pursuant to subsection 
(a) may be paid to the Government of Haiti only if the 
Government of Haiti will maintain those funds in a separate 
account and not commingle them with other funds.
    [(d) Conditions on Economic Support and Development 
Assistance.--Funds may be obligated for assistance for Haiti 
under sections 103 through 106 of chapter 4 of part II of the 
Foreign Assistance Act of 1961 pursuant to subsection (a) only 
if the President determines that the interim Government of 
Haiti--
          [(1) is improving the human rights situation in 
        Haiti;
          [(2) is implementing its timetable for completion of 
        a new constitution that promotes genuine democratic 
        reforms and guarantees the fundamental principles of 
        democracy;
          [(3) is establishing a framework for free and open 
        elections leading to a democratically-elected civilian 
        government, which would include free and functioning 
        political parties and associations, free labor unions, 
        and freedom of the press;
          [(4) is cooperating fully in implementing United 
        States development, food, and other economic assistance 
        programs in Haiti (including programs for prior fiscal 
        years);
          [(5) is maintaining a system of fiscal accountability 
        to ensure that all resources allocated to the 
        development of Haiti are used in the most effective and 
        efficient manner;
          [(6) is continuing its investigation of alleged human 
        rights abuses and corruption by the Duvalier government 
        and is prosecuting, in accordance with due process, 
        those responsible for human rights abuses and 
        corruption;
          [(7) is maintaining a free and independent judiciary 
        system;
          [(8) is continuing to cooperate with the United 
        States in halting illegal emigration to the United 
        States from Haiti; and
          [(9) is encouraging private sector development. ]

           *       *       *       *       *       *       *

    [(f) Additional Assistance for Economic Development in 
Haiti.--In order to assist economic development in Haiti, a 
Foreign Commercial Service officer should be assigned to the 
United States Embassy in Haiti.

[SEC. 203. MILITARY TRAINING AND OTHER NONLETHAL ASSISTANCE FOR HAITI.

    [(a) Authorization of Assistance.--Up to $4,000,000 of the 
aggregate amounts available for fiscal year 1987 to carry out 
chapter 2 of part II of the Foreign Assistance Act of 1961 
(relating to grant military assistance), chapter 5 of part II 
of that Act (relating to international military education and 
training), and the Arms Export Control Act (relating to FMS 
assistance) may be made available for Haiti for education, 
training, and other nonlethal assistance (such as 
transportation equipment, communications equipment, and 
uniforms).
    [(b) Conditions on Military Assistance.--Funds made 
available pursuant to subsection (a) may be obligated only if 
the President certifies to the Congress the following:
          [(1) The Government of Haiti has submitted a formal 
        request to the United States specifying a comprehensive 
        plan for the reform and reorganization of the mission, 
        command, and control structures of the Haitian armed 
        forces consistent with a transition to democracy, the 
        rule of law, constitutional government, and an elected 
        civilian government. Such a plan should include a 
        publicly announced commitment by the armed forces of 
        Haiti to abide by international human rights standards 
        and adoption of a code of conduct to assure adherence 
        to these standards.
          [(2) The Government of Haiti is making substantial 
        efforts--
                  [(A) to prevent the involvement of the 
                Haitian armed forces in human rights abuses and 
                corruption by removing from those forces and 
                prosecuting, in accordance with due process, 
                those military personnel responsible for the 
                human rights abuses and corruption;
                  [(B) to ensure that freedom of speech and 
                assembly are respected;
                  [(C) to conduct investigations into the 
                killings of unarmed civilians in Gonaives, 
                Martissant, and Fort Dimanche, to prosecute, in 
                accordance with due process, those responsible 
                for those killings, and to prevent any similar 
                occurrences in the future;
                  [(D) to provide education and training to the 
                Haitian armed forces with respect to 
                internationally recognized human rights and the 
                civil and political rights essential to 
                democracy, in order to enable those forces to 
                function consistent with those rights; and
                  [(E) to take steps to implement the policy of 
                the Government of Haiti requiring former 
                members of the Volunteers for National Security 
                (VSN) to turn in their weapons and to take the 
                necessary actions to enforce this requirement.]

           *       *       *       *       *       *       *

    [(d) Notification to Congress.--Funds made available 
pursuant to subsection (a) may be obligated only if the 
Committee on Appropriations and the Committee on Foreign 
Affairs of the House of Representatives and the Committee on 
Appropriations and the Committee on Foreign Relations of the 
Senate are notified fifteen days in advance.
    [(e) Relation to Existing Provision.--Assistance under 
subsection (a) may be provided notwithstanding the limitations 
contained in section 705(e) of the International Security and 
Development Cooperation Act of 1985 and is in addition to the 
assistance allowed under that section.]

           *       *       *       *       *       *       *


     International Security and Development Cooperation Act of 1985

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the 
``International Security and Development Cooperation Act of 
1985''.

           *       *       *       *       *       *       *


      TITLE I--MILITARY ASSISTANCE AND SALES AND RELATED PROGRAMS

[SEC. 101. FOREIGN MILITARY SALES CREDITS.

    [(a) * * *
    [(b) * * *
    [(c) FMS Financing for Israel.--(1) Of the total amount of 
credits extended under section 23 of the Arms Export Control 
Act, not less than $1,800,000,000 for fiscal year 1986 and not 
less than $1,800,000,000 for fiscal year 1987 shall be 
available only for Israel.
    [(2) Israel shall be released from its contractual 
liability to repay the United States Government with respect to 
the credits provided pursuant to paragraph (1).
    [(3) If the Government of Israel requests that funds be 
used for such purposes--
                  [(A) up to $150,000,000 of the amount of 
                credits made available for Israel pursuant to 
                paragraph (1) for each of the fiscal years 1986 
                and 1987 shall be available for research and 
                development in the United States for the Lavi 
                program, and
                  [(B) not less than $250,000,000 of the amount 
                of credits made available for Israel pursuant 
                to paragraph (1) for each of the fiscal years 
                1986 and 1987 shall be available for the 
                procurement in Israel of defense articles and 
                defense services (including research and 
                development) for the Lavi program.
    [(d) FMS Financing for Egypt.--(1) Of the total amount of 
credits extended under section 23 of the Arms Export Control 
Act, not less than $1,300,000,000 for fiscal year 1986 and not 
less than $1,300,000,000 for fiscal year 1987 shall be 
available only for Egypt.
    [(2) Egypt shall be released from its contractual liability 
to repay the United States Government with respect to the 
credits extended pursuant to paragraph (1).
    [(e) FMS Financing for Greece.--(1) Of the total amount of 
credits extended under section 23 of the Arms Export Control 
Act, $500,000,000 for each of the fiscal years 1986 and 1987 
shall be available only for Greece.
    [(2) For each of the fiscal years 1986 and 1987, of the 
total amount of credits extended for Greece under section 23 of 
the Arms Export Control Act, Greece shall receive the same 
proportion of credits extended at concessional rates of 
interest as the proportion of credits extended at concessional 
rates of interest which Turkey receives out of the total amount 
of credits extended for Turkey under that section, and the 
average annual rate of interest on the credits extended for 
Greece at concessional rates of interest shall be comparable to 
the average annual rate of interest on the credits extended for 
Turkey at concessional rates of interest. Credits extended for 
Greece for each of the fiscal years 1986 and 1987 at 
concessional rates of interest shall not be counted toward any 
ceiling established by law on concessional financing under the 
Arms Export Control Act.
    [(f) FMS Financing and MAP for Turkey.--For each of the 
fiscal years 1986 and 1987, the aggregate total of financing 
under the Arms Export Control Act and assistance under chapter 
2 of part II of the Foreign Assistance Act of 1961 provided for 
Turkey may not exceed $714,280,000. Of this amount, up to 
$215,000,000 may be used for assistance under chapter 2 of part 
II of the Foreign Assistance Act of 1961, with the 
understanding that the United States Government is acting with 
urgency and determination to oppose any actions aimed at 
effecting a permanent bifurcation of Cyprus.]

           *       *       *       *       *       *       *


[SEC. 106. GUARANTY RESERVE FUND.

    [(a) Report on Replenishment.--For the purpose of providing 
recommendations for improving the security interests of the 
United States and the friends and allies of the United States, 
the President shall prepare and transmit to the Congress within 
90 days after the date of enactment of this Act a report which 
sets forth the history of United States foreign military sales 
financing under the Foreign Assistance Act of 1961 and the Arms 
Export Control Act. Such report shall include recommendations 
on replenishing the Guaranty Reserve Fund under section 24 of 
the Arms Export Control Act and recommendations on other 
matters agreed to in consultation with the chairman and ranking 
minority member of the Committee on Foreign Relations of the 
Senate and of the Committee on Foreign Affairs of the House of 
Representatives.]

           *       *       *       *       *       *       *


[SEC. 129. CONVENTIONAL ARMS TRANSFERS.

    [(a) Negotiations.--At the earliest possible date, the 
President should, in consultation with United States allies, 
initiate discussions with the Soviet Union and France aimed at 
beginning multilateral negotiations to limit and control the 
transfer of conventional arms to less developed countries.
    [(b) Report.--Within one year after the date of enactment 
of this Act, the President shall submit to the Speaker of the 
House of Representatives and the chairman of the Committee on 
Foreign Relations of the Senate a report which specifies steps 
being taken to fulfill the requirements of subsection (a) and 
which examines and analyzes United States policies concerning 
the export of conventional arms, especially sophisticated 
weapons, and possible approaches to developing multilateral 
limitations on conventional arms sales. This report shall 
examine and analyze--
          [(1) the lessons of earlier efforts to negotiate 
        restraints on the export of conventional arms;
          [(2) the evolution of supplier practices and 
        policies;
          [(3) the evolution of recipient country attitudes 
        regarding conventional arms transfers;
          [(4) the effect upon regional stability and security 
        of conventional arms transfer by the United States and 
        its allies and the Soviet Union and its allies;
          [(5) the relationship between arms imports and the 
        external debt of recipient countries, the allocation of 
        their internal resources, and their economic well-
        being;
          [(6) the relationship between arms exports by Western 
        European countries and the needs of those countries to 
        support their domestic military procurement programs;
          [(7) the prospects for engaging the Soviet Union in 
        serious discussions concerning arms transfers, both 
        globally and as they relate to regional security 
        problems;
          [(8) possible measures by the United States and 
        Western European suppliers to control levels of 
        sophisticated weapons sales, both regionally and 
        globally; and
          [(9) the timing and phasing of international 
        conventional arms control negotiations.

[SEC. 130. FOREIGN MILITARY SALES FOR JORDAN.

    [(a) Middle East Peace.--The foreign military sales 
financing authorized by this Act for Jordan is provided and 
increased in the recognition of progress Jordan has made in the 
search for a just and lasting peace in the Middle East, to 
encourage further progress, in recognition of the continuing 
defense needs of Jordan, and in the expectation that Jordan 
will enter into direct negotiations with Israel based on United 
Nations Security Council Resolutions 242 and 338 in order to 
resolve the state of war between those two countries.
    [(b) Sense of Congress.--It is the sense of the Congress 
that no foreign military sales financing authorized by this Act 
may be used to finance the procurement by Jordan of United 
States advanced aircraft, new air defense weapons systems, or 
other new advanced military weapons systems, and no 
notification may be made pursuant to section 36(b) of the Arms 
Export Control Act with respect to a proposed sale to Jordan of 
United States advanced aircraft, new air defense systems, or 
other new advanced military weapons systems, unless Jordan is 
publicly committed to the recognition of Israel and to 
negotiate promptly and directly with Israel under the basic 
tenets of United Nations Security Council Resolutions 242 and 
338.
    [(c) Certification.--Any notification made pursuant to 
section 36(b) of the Arms Export Control Act with respect to a 
proposed sale to Jordan of United States advanced aircraft, new 
air defense systems, or other new advanced military weapons, 
shall be accompanied by a Presidential certification of 
Jordan's public commitment to the recognition of Israel and to 
negotiate promptly and directly with Israel under the basic 
tenets of United Nations Security Council Resolutions 242 and 
338.]

           *       *       *       *       *       *       *


                  [TITLE II--ECONOMIC SUPPORT FUND]

           *       *       *       *       *       *       *


[SEC. 202. ASSISTANCE FOR THE MIDDLE EAST.

    [(a) Israel.--(1) Of the amounts authorized to be 
appropriated to carry out chapter 4 of part II of the Foreign 
Assistance Act of 1961, not less than $1,200,000,000 for fiscal 
year 1986 and not less than $1,200,000,000 for fiscal year 1987 
shall be available only for Israel.
    [(2) The total amounts of funds allocated for Israel under 
that chapter for fiscal year 1986 and fiscal year 1987 shall be 
made available as a cash transfer on a grant basis. Such 
transfer shall be made on an expedited basis in the first 30 
days of the respective fiscal year. In exercising the authority 
of this paragraph, the President shall ensure that the level of 
cash transfer made to Israel does not cause an adverse impact 
on the total level of nonmilitary exports from the United 
States to Israel.
    [(b) Egypt.--(1) Of the amounts authorized to be 
appropriated to carry out chapter 4 of part II of the Foreign 
Assistance Act of 1961, not less than $815,000,000 for fiscal 
year 1986 and not less than $815,000,000 for fiscal year 1987 
shall be available only for Egypt.
    [(2) All of the funds made available to Egypt under that 
chapter for the fiscal years 1986 and 1987 shall be provided on 
a grant basis.
    [(3) Up to $115,000,000 of the amounts provided for Egypt 
for each of the fiscal years 1986 and 1987 pursuant to 
paragraph (1) may be provided as a cash transfer with the 
understanding that Egypt will undertake economic reforms or 
development activities which are additional to those which 
would be undertaken in the absence of the cash transfer.
    [(c) Cooperative Scientific and Technological Projects.--It 
is the sense of the Congress that, in order to continue to 
build the structure of peace in the Middle East, the United 
States should finance, and where appropriate participate in, 
cooperative projects of a scientific and technological nature 
involving Israel and Egypt and other Middle East countries 
wishing to participate. These cooperative projects should 
include projects in the fields of agriculture, health, energy, 
the environment, education, water resources, and the social 
sciences.

[SEC. 203. ASSISTANCE FOR CYPRUS.

    [(a) Earmarks.--Of the amounts authorized to be 
appropriated to carry out chapter 4 of part II of the Foreign 
Assistance Act of 1961, not less than $15,000,000 for fiscal 
year 1986 and not less than $15,000,000 for fiscal year 1987 
shall be available only for Cyprus.
    [(b) Cyprus Peace and Reconstruction Fund.--It is the sense 
of the Congress that, at the appropriate time, $250,000,000 
should be authorized to be appropriated to provide assistance 
for Cyprus under chapter 4 of part II of the Foreign Assistance 
Act of 1961 if the President certifies to the Congress that an 
agreement has been concluded by the Greek and Turkish Cypriots 
which is supported by Greece and Turkey and which achieves 
substantial progress toward settlement of the Cyprus dispute. 
Such an agreement should include an agreement on Varosha/
Famagusta, foreign troop levels in the Republic of Cyprus, the 
disposition of the international airport on Cyprus, or other 
significant steps which are evidence of substantial progress 
toward an overall settlement of the Cyprus dispute.

[SEC. 204. ASSISTANCE FOR PORTUGAL.

    [Of the amounts authorized to be appropriated to carry out 
chapter 4 of part II of the Foreign Assistance Act of 1961, 
$80,000,000 for fiscal year 1986 and $80,000,000 for fiscal 
year 1987 shall be available only for Portugal.

[SEC. 205. ACQUISITION OF AGRICULTURAL COMMODITIES UNDER COMMODITY 
                    IMPORT PROGRAMS.

    [The President shall use not less than 18 percent of the 
funds which are authorized to be appropriated to carry out 
chapter 4 of part II of the Foreign Assistance Act of 1961 for 
each of the fiscal years 1986 and 1987, and which are made 
available for commodity import programs, for the purchase of 
agricultural commodities of United States-origin.

[SEC. 206. TIED AID CREDIT PROGRAM.

    [Of the amounts authorized to be appropriated to carry out 
chapter 4 of part II of the Foreign Assistance Act of 1961 
which are allocated for Commodity Import Programs--
          [(1) not less than $50,000,000 for fiscal year 1986, 
        and
          [(2) an aggregate of not less than $100,000,000 for 
        both fiscal years 1986 and 1987,
[shall be deposited in the fund authorized by subsection (c)(2) 
of section 645 of the Trade and Development Enhancement Act of 
1983 (12 U.S.C. 635r) and shall be used by the Agency for 
International Development in carrying out the program of tied 
aid credits for United States exports which is provided for in 
that section. Funds that have not been obligated pursuant to 
the tied aid credit program by the end of the third quarter of 
the fiscal year for which they were appropriated may be used 
for other purposes under chapter 4 of part II of the Foreign 
Assistance Act of 1961 if the Administrator of the Agency for 
International Development certifies to the Congress that (A) no 
trade credit application acceptable and timely under the Trade 
and Development Enhancement Act of 1983 is pending, or (B) 
those funds are not needed for that program because other 
countries are not engaging in predatory financing practices in 
order to compete with United States exports.

[SEC. 207. RESTRICTION ON USE OF FUNDS FOR NUCLEAR FACILITIES.

    [Funds authorized to be appropriated to carry out chapter 4 
of part II of the Foreign Assistance Act of 1961 for fiscal 
year 1986 or fiscal year 1987 may not be used to finance the 
construction of, the operation or maintenance of, or the 
supplying of fuel for, any nuclear facility in a foreign 
country unless the President certifies to the Congress that 
such country is a party to the Treaty on the Non-Proliferation 
of Nuclear Weapons or the Treaty for the Prohibition of Nuclear 
Weapons in Latin America (the ``Treaty of Tlatelolco''), 
cooperates fully with the International Atomic Energy Agency, 
and pursues nonproliferation policies consistent with those of 
the United States.

[SEC. 208. FISCAL YEAR 1985 SUPPLEMENTAL AUTHORIZATION.

    [(a) Authorization.--In addition to the amount appropriated 
for such purpose by Public Law 98-473, there are authorized to 
be appropriated $2,008,000,000 for fiscal year 1985 to carry 
out the purposes of chapter 4 of part II of the Foreign 
Assistance Act of 1961. Of this amount, $1,500,000,000 shall be 
available only for Israel, $500,000,000 shall be available only 
for Egypt, and $8,000,000 shall be available only for the 
Middle East Regional Program. Amounts appropriated pursuant to 
this section are authorized to remain available until September 
30, 1986.
    [(b) Effective Date.--This section shall take effect on the 
date of enactment of this Act.

                  [TITLE III--DEVELOPMENT ASSISTANCE]

           *       *       *       *       *       *       *


[SEC. 305. PROMOTION OF IMMUNIZATION AND ORAL REHYDRATION.

    [(a) * * *
    [(b) Annual Reports.--Each annual report required by 
section 634 of the Foreign Assistance Act of 1961 shall 
describe the progress achieved during the preceding fiscal year 
in carrying out section 104(c)(3) of such Act.]

           *       *       *       *       *       *       *


[SEC. 311. USE OF PRIVATE AND VOLUNTARY ORGANIZATIONS, COOPERATIVES, 
                    AND THE PRIVATE SECTOR.

    [(a) Study.--The Administrator of the Agency for 
International Development shall undertake a comprehensive study 
of additional ways to provide development assistance through 
nongovernmental organizations, including United States and 
indigenous private and voluntary organizations, cooperatives, 
the business community, and other private entities. Such study 
shall include--
          [(1) an analysis of the percentage of development 
        assistance allocated to governmental and 
        nongovernmental programs;
          [(2) an analysis of structural impediments, within 
        both the United States and foreign governments, to 
        additional use of nongovernmental programs; and
          [(3) an analysis of the comparative economic benefits 
        of governmental and nongovernmental programs.
    [(b) Report.--The Administrator shall report the results of 
this study to the Congress no later than September 30, 1986.]

           *       *       *       *       *       *       *


[SEC. 315. MINORITY SET-ASIDE.

    [Except to the extent that the Administrator of the Agency 
for International Development determines otherwise, not less 
than 10 percent of the aggregate of the funds made available 
for each of the fiscal years 1986 and 1987 to carry out chapter 
1 of part I of the Foreign Assistance Act of 1961 shall be made 
available only for activities of economically and socially 
disadvantaged enterprises (within the meaning of section 
133(c)(5) of the International Development and Food Assistance 
Act of 1977), historically black colleges and universities, and 
private and voluntary organizations which are controlled by 
individuals who are black Americans, Hispanic Americans, or 
Native Americans, or who are economically and socially 
disadvantaged (within the meaning of section 133(c)(5) (B) and 
(C) of the International Development and Food Assistance Act of 
1977). For purposes of this section, economically and socially 
disadvantaged individuals shall be deemed to include women.

             [TITLE IV--OTHER FOREIGN ASSISTANCE PROGRAMS]

           *       *       *       *       *       *       *


[SEC. 402. VOLUNTARY CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS AND 
                    PROGRAMS.

    [(a) * * *
    [(b) Fiscal Year 1985 Contribution to United Nations 
Environment Program.--Notwithstanding section 614 of the 
Foreign Assistance Act of 1961 or any other provision of law, 
$10,000,000 of the funds appropriated for the fiscal year 1985 
to carry out chapter 3 of part I of such Act shall be available 
only for the United Nations Environment Program. This 
subsection shall take effect on the date of enactment of this 
Act.]

           *       *       *       *       *       *       *


     TITLE V--INTERNATIONAL TERRORISM AND FOREIGN AIRPORT SECURITY

[Part A--International Terrorism Generally]

           *       *       *       *       *       *       *


[SEC. 502. COORDINATION OF ALL UNITED STATES TERRORISM-RELATED 
                    ASSISTANCE TO FOREIGN COUNTRIES.

    [(a) Coordination.--The Secretary of State shall be 
responsible for coordinating all assistance related to 
international terrorism which is provided by the United States 
Government.
    [(b) Reports.--Not later than February 1 each year, the 
Secretary of State, in consultation with appropriate United 
States Government agencies, shall report to the appropriate 
committees of the Congress on the assistance related to 
international terrorism which was provided by the United States 
Government during the preceding fiscal year. Such reports may 
be provided on a classified basis to the extent necessary, and 
shall specify the amount and nature of the assistance provided.
    [(c) Rule of Construction.--Nothing contained in this 
section shall be construed to limit or impair the authority or 
responsibility of any other Federal agency with respect to law 
enforcement, domestic security operations, or intelligence 
activities as defined in Executive Order 12333.

[SEC. 503. PROHIBITION ON ASSISTANCE TO COUNTRIES SUPPORTING 
                    INTERNATIONAL TERRORISM.]

           *       *       *       *       *       *       *


[SEC. 506. INTERNATIONAL ANTI-TERRORISM COMMITTEE.

    [The Congress calls upon the President to seek the 
establishment of an international committee, to be known as the 
International Anti-Terrorism Committee, consisting of 
representatives of the member countries of the North Atlantic 
Treaty Organization, Japan, and such other countries as may be 
invited and may choose to participate. The purpose of the 
Committee should be to focus the attention and secure the 
cooperation of the governments and the public of the 
participating countries and of other countries on the problems 
and responses to international terrorism, by serving as a forum 
at both the political and law enforcement levels.

[SEC. 507. INTERNATIONAL TERRORISM CONTROL TREATY.

    [It is the sense of the Congress that the President should 
establish a process by which democratic and open societies of 
the world, which are those most plagued by terrorism, negotiate 
a viable treaty to effectively prevent and respond to terrorist 
attacks. Such a treaty should incorporate an operative 
definition of terrorism, and should establish effective close 
intelligence-sharing, joint counterterrorist training, and 
uniform laws on asylum, extradition, and swift punishment for 
perpetrators of terrorism. Parties to such a treaty should 
include, but not be limited to, those democratic nations who 
are most victimized by terrorism.

[SEC. 508. STATE TERRORISM.

    [It is sense of the Congress that all civilized nations 
should firmly condemn the increasing use of terrorism by 
certain states as an official instrument for promoting their 
policy goals, as evidenced by such examples as the brutal 
assassination of Major Arthur D. Nicholson, Junior, by a member 
of the Soviet armed forces.]

           *       *       *       *       *       *       *


[SEC. 558. HIJACKING OF TWA FLIGHT 847 AND OTHER ACTS OF TERRORISM.

    [The Congress joins with all Americans in celebrating the 
release of the hostages taken from Trans World Airlines flight 
847. It is the sense of the Congress that--
          [(1) purser Uli Derickson, pilot John Testrake, co-
        pilot Philip Maresca, flight engineer Benjamin 
        Zimmermann, and the rest of the crew of Trans World 
        Airlines flight 847 displayed extraordinary valor and 
        heroism during the hostages' ordeal and therefore 
        should be commended;
          [(2) the hijackers who murdered United States Navy 
        Petty Officer Stethem should be immediately brought to 
        justice;
          [(3) all diplomatic means should continue to be 
        employed to obtain the release of the 7 United States 
        citizens previously kidnapped and still held in 
        Lebanon;
          [(4) acts of international terrorism should be 
        universally condemned; and
          [(5) the Secretary of State should be supported in 
        his efforts to gain international cooperation to 
        prevent future acts of terrorism.

[SEC. 559. EFFECTIVE DATE.

    [This part shall take effect on the date of enactment of 
this Act.

              [TITLE VI--INTERNATIONAL NARCOTICS CONTROL]

           *       *       *       *       *       *       *


[SEC. 607. PROCUREMENT OF WEAPONS TO DEFEND AIRCRAFT INVOLVED IN 
                    NARCOTICS CONTROL EFFORTS.

    [Of the funds available to carry out chapter 2 of part II 
of the Foreign Assistance Act of 1961 (relating to grant 
military assistance), $1,000,000 for each of the fiscal years 
1986 and 1987 shall be made available to arm, for defensive 
purposes, aircraft used in narcotic control eradication or 
interdiction efforts. The Committee on Foreign Affairs of the 
House of Representatives and the Committee on Foreign Relations 
of the Senate shall be notified of the use of any such funds 
for that purpose at least 15 days in advance in accordance with 
the reprogramming procedures applicable under section 634A of 
the Foreign Assistance Act of 1961.]

           *       *       *       *       *       *       *


[SEC. 610. ASSISTANCE FOR JAMAICA.

    [In allocating assistance for Jamaica for fiscal year 1986 
under chapter 4 of part II of the Foreign Assistance Act of 
1961 (relating to the economic support fund), the President 
shall give major consideration to whether the Government of 
Jamaica has prepared, presented, and committed itself to a 
comprehensive plan or strategy for the control and reduction of 
illicit cultivation, production, processing, transportation, 
and distribution of marijuana within a specifically stated 
period of time.

[SEC. 611. ASSISTANCE FOR BOLIVIA.

    [Assistance may be provided to Bolivia for fiscal years 
1986 and 1987 under chapter 2 (relating to grant military 
assistance), chapter 4 (relating to the economic support fund), 
and chapter 5 (relating to international military education and 
training) of part II of the Foreign Assistance Act of 1961, and 
under chapter 2 of the Arms Export Control Act (relating to 
foreign military sales financing), only under the following 
conditions:
          [(1) For fiscal year 1986--
                  [(A) up to 50 percent of the aggregate amount 
                of such assistance allocated for Bolivia may be 
                provided at any time after the President 
                certifies to the Congress that the Government 
                of Bolivia has enacted legislation that will 
                establish its legal coca requirements, provide 
                for the licensing of the number of hectares 
                necessary to produce the legal requirement, and 
                make unlicensed coca production illegal; and
                  [(B) the remaining amount of such assistance 
                may be provided at any time following a 
                certification pursuant to subparagraph (A) if 
                the President certifies to the Congress that 
                the Government of Bolivia has achieved the 
                eradication targets for the calendar year 1985 
                contained in its 1983 narcotics agreements with 
                the United States.
          [(2) For fiscal year 1987, such assistance may not be 
        provided unless the President certifies to the Congress 
        that the Government of Bolivia has developed a plan to 
        eliminate illicit narcotics production countrywide and 
        is prepared to enter into an agreement with the United 
        States to implement that plan. If that certification is 
        made, then--
                  [(A) up to 50 percent of the aggregate amount 
                of such assistance allocated for Bolivia may be 
                provided at any time after the President 
                certifies to the Congress that Bolivia has 
                engaged in narcotics interdiction operations 
                which have significantly disrupted the illicit 
                coca industry in Bolivia or has cooperated with 
                the United States in such operations; and
                  [(B) the remaining amount of such assistance 
                may be provided at any time after the President 
                certifies to the Congress that Bolivia has 
                either met in calendar year 1986 the 
                eradication targets for the calendar year 1985 
                contained in its 1983 narcotics agreements with 
                the United States or has entered into an 
                agreement of cooperation with the United States 
                for implementing that plan for 1987 and beyond 
                (including numerical eradication targets) and 
                is making substantial progress toward the 
                plan's objectives, including substantial 
                eradication of illicit coca crops and effective 
                use of United States assistance.
        [In the certification required by subparagraph (B), the 
        President shall explain why the terms of the 1983 
        agreement provided unattainable and the reasons why a 
        new agreement was necessary.

[SEC. 612. ASSISTANCE TO PERU.

    [(a) Conditions on Assistance.--United States assistance 
(as defined by section 481(i)(4) of the Foreign Assistance Act 
of 1961) may be provided for Peru--
          [(1) for fiscal year 1986, only if the President 
        reports to the Congress that the Government of Peru has 
        demonstrated substantial progress in developing a plan 
        that will establish its legal coca requirements, 
        license the number of hectares necessary to produce the 
        legal requirement, and eliminate illicit and unlicensed 
        coca production; and
          [(2) for fiscal year 1987, only if the President 
        reports to the Congress that the Government of Peru has 
        developed such a plan and is implementing it.
    [(b) Upper Huallaga Valley Project.--Funds authorized to be 
appropriated for fiscal year 1987 to carry out chapter 1 of 
part I of the Foreign Assistance Act of 1961 (relating to 
development assistance) may be made available for the project 
of the Agency for International Development in the Upper 
Huallaga Valley of Peru only if the Administrator of that 
Agency, after consultation with the Congress, determines that a 
comprehensive review of that project has been completed which 
establishes the effectiveness of that project in reducing and 
eradicating coca leaf production, distribution, and marketing 
in the Upper Huallaga Valley. The assistance for Peru described 
in this subsection may be provided only if the report required 
by subsection (a)(2) has been submitted to the Congress.

[SEC. 613. REALLOCATION OF FUNDS IF CONDITIONS NOT MET.

    [If any of the assistance described in section 611 is not 
provided for Bolivia because the conditions specified in that 
section are not met, or if any of the assistance described in 
section 612(a) is not provided for Peru because the conditions 
specified in that section are not met, the President shall 
reprogram such assistance in order to provide additional 
assistance to countries which have taken significant steps to 
halt illicit drug production or trafficking.]

           *       *       *       *       *       *       *


[SEC. 615. LATIN AMERICAN REGIONAL NARCOTICS CONTROL ORGANIZATION.

    [(a) Feasibility Study.--The Secretary of State, with the 
assistance of the National Drug Enforcement Policy Board, shall 
conduct a study of the feasibility of establishing a regional 
organization in Latin America which would combat narcotics 
production and trafficking through regional information-sharing 
and a regional enforcement unit.
    [(b) Report.--No later than six months after the date of 
enactment of this Act, a report on the advisability of 
encouraging the establishment of such an organization shall be 
submitted to the Committee on Foreign Affairs and the Committee 
on the Judiciary of the House of Representatives and the 
Committee on Foreign Relations and the Committee on the 
Judiciary of the Senate.

[SEC. 616. GREATER EFFORT BY UNITED STATES ARMED FORCES TO SUPPORT 
                    NARCOTICS CONTROL EFFORTS ABROAD.

    [No later than 60 days after the date of enactment of this 
Act, the President shall report to the Congress on why the 
United States Armed Forces should not exert greater effort in 
facilitating and supporting interception of narcotics 
traffickers, and in gathering narcotics-related intelligence, 
outside the United States.

[SEC. 617. CUBAN DRUG TRAFFICKING.

    [(a) Findings.--The Congress finds that--
          [(1) the subject of the flow, use, and control of 
        narcotic and psychotropic substances is a matter of 
        great international importance;
          [(2) the problem of drug abuse and drug trafficking 
        continues to worsen throughout most parts of the world;
          [(3) the concerns of the governments of many 
        countries have become manifest in several bilateral and 
        multilateral narcotics control projects;
          [(4) United Nations agencies monitor and apply 
        controls on the flow and use of drugs and coordinate 
        multilateral efforts to control production, 
        trafficking, and abuse of drugs;
          [(5) the United Nations Fund for Drug Abuse Control 
        funds narcotics projects throughout the world and has 
        been a vehicle since 1971 for multilateral 
        implementation of narcotics control and reduction 
        programs;
          [(6) the International Narcotics Control Board is 
        charged with monitoring compliance with the Single 
        Convention on Narcotic Drugs, 1961, and the Convention 
        on Psychotropic Substances, and Cuba is a party to both 
        Conventions;
          [(7) the United Nations Commission on Narcotic Drugs 
        is responsible for formulating policies, coordinating 
        activities, supervising the implementation of 
        international conventions, and making recommendations 
        to governments for international drug control;
          [(8) the promotion of drug abuse and participation in 
        drug trafficking is universally considered egregious 
        criminal behavior wherever it occurs, whether it occurs 
        locally, nationally, or internationally;
          [(9) a Federal grand jury of the United States has 
        indicted four prominent Cuban officials on charges of 
        conspiring to smuggle drugs into the United States;
          [(10) United States Government officials have 
        testified at several congressional hearings that the 
        Government of Cuba is facilitating the flow of illicit 
        drugs into the United States in order to obtain hard 
        currency, support guerrilla/terrorist activities, and 
        undermine United States society; and
          [(11) such alleged conduct on the part of the 
        Government of Cuba would be injurious to the world 
        community and counter to the general principle of 
        international law that no country has the right to use 
        or permit the use of its territory in such a manner as 
        to injure another country or persons therein.
    [(b) Recommended Actions.--It is the sense of the Congress 
that the President should--
          [(1) acting through the Permanent Representative of 
        the United States to the United Nations, take such 
        steps as may be necessary to place the question of the 
        involvement by the Government of Cuba in illicit drug 
        trafficking on the agenda of the United Nations;
          [(2) acting through the Representative of the United 
        States to the Organization of American States, request 
        the Organization of American States to consider this 
        question as soon as possible; and
          [(3) request other appropriate international 
        organizations and international forums to consider this 
        question.
    [(c) Report.--The President shall report to the Congress on 
the actions taken pursuant to this section.]

           *       *       *       *       *       *       *


[SEC. 619. DRUG TRAFFICKING AND THE PROBLEM OF TOTAL CONFIDENTIALITY OF 
                    CERTAIN FOREIGN BANK ACCOUNTS.

    [(a) Findings.--The Congress finds that--
          [(1) several banks in Latin America and the Caribbean 
        are used by narcotics traffickers as depositories for 
        money obtained in providing illicit drugs to the United 
        States and other countries of the region;
          [(2) offshore banks which provide total 
        confidentiality provide a service which materially 
        assists the operations of illicit drug traffickers; and
          [(3) cooperation in gaining access to the bank 
        accounts of such narcotics traffickers would materially 
        assist United States authorities in controlling the 
        activities of such traffickers.
    [(b) Policy.--The Congress--
          [(1) requests the President to negotiate treaties or 
        appropriate international agreements with all countries 
        providing confidential banking services (giving high 
        priority to countries in the Caribbean region) to 
        provide disclosure to the United States Government of 
        information contained in official records, and in 
        records of bank accounts, concerning persons under 
        investigation for violations of United States law, in 
        particular those regarding international drug 
        trafficking;
          [(2) directs the President to include reports on the 
        results of such efforts in the annual International 
        Narcotics Control Strategy Report; and
          [(3) reaffirms its intention to obtain maximum 
        cooperation on the part of all governments for the 
        purpose of halting international drug trafficking, and 
        constantly to evaluate the cooperation of those 
        governments receiving assistance from the United 
        States.

                    [TITLE VII--WESTERN HEMISPHERE]

           *       *       *       *       *       *       *


[SEC. 702. EL SALVADOR.

    [(a) Support for El Salvador.--(1) The Congress finds 
that--
          [(A) a free and democratic El Salvador is in the 
        security interest of the United States;
          [(B) Jose Napoleon Duarte was elected President of El 
        Salvador in 1984 in the most democratic election held 
        in El Salvador in many years;
          [(C) political violence in El Salvador has declined 
        dramatically under President Duarte's leadership;
          [(D) President Duarte's policies of respect for human 
        rights, political pluralism, dialogue and 
        reconciliation with the Salvadoran guerrilla force, 
        legal and social reform and effective defense against 
        the violent overthrow of the Salvadoran government are 
        deserving of praise from all who believe in a 
        democratic form of government;
          [(E) the March 31, 1985, legislation and municipal 
        elections were successfully carried out, with 64 
        percent of the electorate defying guerrilla attacks to 
        vote;
          [(F) the victory of President Duarte's Christian 
        Democratic Party reaffirms the support for these 
        policies by his fellow citizens, the essential test of 
        any government or movement;
          [(G) in spite of the state of siege technically in 
        effect due to the insurgent threat, observance of free 
        speech, free press, and free assembly are widely 
        enjoyed in El Salvador and permit public airing of 
        opposing political views;
          [(H) President Duarte is firmly committed to judicial 
        reform and prosecution of cases involving ``death 
        squads'';
          [(I) President Duarte's leadership and popular 
        support has notably weakened the popular support given 
        the guerrillas, as evidenced by the high levels of 
        voter participation in the free elections held in El 
        Salvador since 1982, the reduction in territory in 
        which the guerrillas can freely operate, their 
        inability to mount frontal military attacks, and their 
        resort to economic sabotage, ambushes, political 
        assassination, and urban terrorism with blatant 
        disregard for basic human rights; and
          [(J) President Duarte has succeeded in reversing the 
        decline in his country's economy which, though still 
        weak, has better prospects than in recent years.
    [(2) Therefore, it is the sense of the Congress that--
          [(A) President Duarte is to be congratulated for his 
        outstanding leadership under difficult circumstances 
        and for his efforts to foster democratic government and 
        institutions in his country, and he is encouraged to 
        continue his efforts to promote political pluralism, 
        democratic institutions, and respect for human rights 
        in his country; and
          [(B) the armed services of El Salvador are to be 
        congratulated for their improved performance and 
        professionalism in defending Salvadoran citizens and 
        their democratically elected government from attack by 
        armed insurgents, and especially for their role in 
        helping to protect and uphold the electoral process.
    [(3) The Congress reaffirms the importance of continued 
support for democratic principles and institutions and respect 
for human rights by the various sectors of Salvadoran society, 
which is a major factor in United States support for El 
Salvador.
    [(b) Objectives.--The Congress expects that--
          [(1) the Government of El Salvador will be willing to 
        pursue a dialogue with the armed opposition forces and 
        their political representatives for the purposes of 
        achieving an equitable political settlement of the 
        conflict, including free and fair elections;
          [(2) the elected civilian government will be in 
        control of the Salvadoran military and security forces, 
        and those forces will comply with applicable rules of 
        international law and with Presidential directives 
        pertaining to the protection of civilians during combat 
        operations, including Presidential directive C111-03-
        984 (relating to aerial fire support);
          [(3) the Government of El Salvador will make 
        demonstrated progress, during the period covered by 
        each report pursuant to subsection (c), in ending the 
        activities of the death squads;
          [(4) the Government of El Salvador will make 
        demonstrated progress, during the period covered by 
        each report pursuant to subsection (c), in establishing 
        an effective judicial system; and
          [(5) the Government of El Salvador will make 
        demonstrated progress, during the period covered by 
        each report pursuant to subsection (c), in implementing 
        the land reform program.
    [(c) Reports.--On October 1, 1985, April 1, 1986, October 
1, 1986, and April 1, 1987, the President shall report to the 
Speaker of the House of Representatives and the chairman of the 
Committee on Foreign Relations of the Senate on the extent to 
which the objectives described in subsection (b) are being met. 
With respect to the objective described in paragraph (4) of 
that subsection, each report shall discuss whether the 
commission proposed by the President of El Salvador to 
investigate human rights cases has been established, funded, 
and given sufficient investigative powers; whether the evidence 
that commission collects may be used in the Salvadoran judicial 
process; whether that commission has issued a comprehensive 
report with regard to its investigation of all Americans 
murdered in El Salvador; and whether those responsible for the 
Las Hojas massacre are being prosecuted.
    [(d) Aircraft for Aerial Warfare.--(1) The authorities of 
part II of the Foreign Assistance Act of 1961 and the Arms 
Export Control Act may not be used to make available to El 
Salvador any helicopters or other aircraft, and licenses may 
not be issued under section 38 of the Arms Export Control Act 
for the export to El Salvador of any such aircraft, unless the 
Committee on Foreign Affairs of the House of Representatives 
and the Committee on Foreign Relations of the Senate are 
notified at least 15 days in advance in accordance with the 
procedures applicable to reprogramming notifications under 
section 634A of the Foreign Assistance Act of 1961.
    [(2) Paragraph (1) shall take effect on the date of 
enactment of this Act and shall remain in effect until October 
1, 1987.
    [(e) Special Account for Local Currencies.--(1) All local 
currencies, which are generated with the funds provided to El 
Salvador for balance-of-payments support for fiscal years 1986 
and 1987 under chapter 4 of part II of the Foreign Assistance 
Act of 1961 (relating to the economic support fund), shall be 
deposited in accordance with section 609 of that Act in a 
special account established by the Government of El Salvador.
    [(2) Local currencies deposited pursuant to paragraph (1) 
shall be used for projects assisting agrarian reform and the 
agricultural sector (and particular emphasis shall be placed on 
projects for these purposes); judicial reform, employment 
generation; health, education, and other social services; 
infrastructure repair; and credits and other support for the 
private sector (principally for small and medium sized 
businesses).
    [(3) For purposes of subsection--
          [(A) the term ``agrarian reform'' means projects 
        assisting or enhancing the abilities of agencies, 
        cooperatives, and farms to implement land reform 
        decrees in El Salvador, notwithstanding section 620(g) 
        of the Foreign Assistance Act of 1961; and
          [(B) the term ``judicial reform'' means projects 
        assisting or enhancing the abilities of agencies of the 
        Salvadoran Government to investigate and prosecute 
        politically motivated violence.
    [(f) Development Assistance.--Of the amounts available to 
carry out chapter 1 of part I of the Foreign Assistance Act of 
1961, $79,600,000 for fiscal year 1986 and $79,600,000 for 
fiscal year 1987 shall be available only for El Salvador.
    [(g) Suspension of Assistance if a Military Coup Occurs.--
All assistance authorized by this Act which is allocated for El 
Salvador shall be suspended if the elected President of that 
country is deposed by military coup or decree.

[SEC. 703. ASSISTANCE FOR GUATEMALA.

    [(a) Conditions on Military Assistance and Sales.--For 
fiscal years 1986 and 1987, assistance may be provided for 
Guatemala under chapter 2 of part II of the Foreign Assistance 
Act of 1961 (relating to grant military assistance) and sales 
may be made and financing may be provided for Guatemala under 
the Arms Export Control Act (relating to foreign military 
sales) only if the President makes the following certifications 
to the Congress:
          [(1) For fiscal year 1986, an elected civilian 
        government is in power in Guatemala and has submitted a 
        formal written request to the United States for the 
        assistance, sales, or financing to be provided.
          [(2) For both fiscal years 1986 and 1987, the 
        Government of Guatemala made demonstrated progress 
        during the preceding year--
                  [(A) in achieving control over its military 
                and security forces,
                  [(B) toward eliminating kidnapings and 
                disappearances, forced recruitment into the 
                civil defense patrols, and other abuses by such 
                forces of internationally recognized human 
                rights, and
                  [(C) in respecting the internationally 
                recognized human rights of its indigenous 
                Indian population.
    [(b) Construction Equipment and Mobile Medical Facilities 
and Related Training.--If the conditions specified in 
subsection (a) are met, Guatemala may be provided with the 
following for fiscal years 1986 and 1987 (in addition to such 
other assistance, sales, or financing as may be provided for 
Guatemala):
          [(1) Sales of construction equipment and mobile 
        medical facilities to assist in development programs 
        that will directly assist the poor in Guatemala.
          [(2) Sales of training, to be provided outside of 
        Guatemala, which is related to the sales described in 
        paragraph (1).
          [(3) A total for both fiscal years 1986 and 1987 of 
        no more than $10,000,000 in credits under the Arms 
        Export Control Act for sales described in paragraphs 
        (1) and (2).
[Such sales and credits shall be provided only to enable the 
military forces of Guatemala to obtain equipment and training 
for civilian engineering and construction projects and mobile 
medical teams, which would not be used in the rural 
resettlement program.
    [(c) Prohibition on Furnishing Weapons.--Funds authorized 
to be appropriated by title I of this Act may not be used for 
the procurement by Guatemala of any weapons or ammunition.
    [(d) Suspension of Assistance if a Military Coup Occurs.--
All assistance authorized by this Act which is allocated for 
Guatemala shall be suspended if the elected civilian government 
of that country is deposed by military coup or decree.
    [(e) Rural Resettlement Program.--Assistance provided for 
Guatemala for the fiscal year 1986 and fiscal year 1987 under 
chapter 1 of part I (relating to development assistance) or 
under chapter 4 of part II (relating to the economic support 
fund) of the Foreign Assistance Act of 1961--
          [(1) may not be provided to the Government of 
        Guatemala for use in its rural resettlement program; 
        and
          [(2) shall be provided through private and voluntary 
        organizations to the maximum extent possible.
    [(f) Invitation for ICRC To Visit Guatemala.--The Congress 
calls upon the President to urge the Government of Guatemala to 
allow the International Committee of the Red Cross--
          [(1) to conduct an unimpeded visit to Guatemala in 
        order to investigate humanitarian needs in that country 
        and to report on human rights abuses in that country; 
        and
          [(2) to investigate the possibilities of its 
        providing humanitarian services in that country.
    [(g) Relations Between Belize and Guatemala.--It is the 
sense of the Congress that the United States should use its 
good offices and influence to encourage the Government of 
Guatemala to recognize the independence of Belize and to enter 
into a mutual nonaggression treaty with Belize.
    [(h) Human Rights Groups in Guatemala.--(1) The Congress 
finds that--
          [(A) the Group for Mutual Support was formed in 1984 
        to protest the disappearances of Guatemalan civilians;
          [(B) the Group for Mutual Support has carried out its 
        work in a peaceful, non-ideological manner, and is the 
        only indigenous human rights group operating in 
        Guatemala; and
          [(C) two of the Group's six steering committee 
        members, Hector Gomez and Maria Rosario Godyo de 
        Cuevas, were recently killed.
    [(2) It is the sense of the Congress that--
          [(A) human rights groups in Guatemala, particularly 
        the Group for Mutual Support, should be allowed to 
        carry out their work against human rights abuses with 
        the full cooperation, protection, and support of the 
        Government of Guatemala; and
          [(B) whether the Government of Guatemala allows human 
        rights groups, including the Group for Mutual Support, 
        to carry out their work should be taken into account by 
        the United States in determining whether there is human 
        rights progress in Guatemala.

[SEC. 704. REFUGEES IN HONDURAS.

    [Funds authorized to be appropriated by this Act and funds 
authorized to be appropriated for the ``Migration and Refugee 
Assistance'' account for fiscal years 1986 and 1987--
          [(1) which are to be used for refugee assistance or 
        other assistance for Nicaraguan Indian refugees in 
        Honduras shall be channeled, to the maximum extent 
        possible, through the United Nations High Commissioner 
        for Refugees, the International Committee of the Red 
        Cross, the Intergovernmental Committee for Migration, 
        or other established and recognized international 
        refugee relief organizations; and
          [(2) may not be used to facilitate the involuntary 
        repatriation of Salvadoran refugees who are in 
        Honduras.

[SEC. 705. PROMOTING THE DEVELOPMENT OF THE HAITIAN PEOPLE AND 
                    PROVIDING FOR ORDERLY EMIGRATION FROM HAITI.

    [(a) Use of PVOs.--To the maximum extent practicable, 
assistance for Haiti under chapter 1 of part I (relating to 
development assistance) and under chapter 4 of part II 
(relating to the economic support fund) of the Foreign 
Assistance Act of 1961 should be provided through private and 
voluntary organizations.
    [(b) Conditions on Assistance.--Funds available for fiscal 
year 1986 and for fiscal year 1987 to carry out chapter 1 of 
part I (relating to development assistance), chapter 4 of part 
II (relating to the economic support fund), or chapter 5 of 
part II (relating to international military education and 
training) of the Foreign Assistance Act of 1961 may be 
obligated for Haiti only if the President determines that the 
Government of Haiti--
          [(1) is continuing to cooperate with the United 
        States in halting illegal emigration to the United 
        States from Haiti;
          [(2) is cooperating fully in implementing United 
        States development, food, and other economic assistance 
        programs in Haiti (including programs for prior fiscal 
        years); and
          [(3) is making progress toward improving the human 
        rights situation in Haiti and progress toward 
        implementing political reforms which are essential to 
        the development of democracy in Haiti, such as progress 
        toward the establishment of political parties, free 
        elections, free labor unions, and freedom of the press.
    [(c) * * * [Repealed--1998]
    [(d) Assistance in Halting Illegal Emigration From Haiti.--
Notwithstanding the limitations of section 660 of the Foreign 
Assistance Act of 1961 (relating to police training), funds 
made available under such Act may be used for programs with 
Haiti, which shall be consistent with prevailing United States 
refugee policies, to assist in halting significant illegal 
emigration from Haiti to the United States.
    [(e) Limitation on MAP and FMS Financing.--Assistance may 
not be provided for Haiti for fiscal year 1986 or fiscal year 
1987 under chapter 2 of part II of the Foreign Assistance Act 
of 1961 (relating to grant military assistance) or under the 
Arms Export Control Act (relating to foreign military sales 
financing), except for necessary transportation, maintenance, 
communications, and related articles and services to enable the 
continuation of migrant and narcotics interdiction operations.
    [(f) Literacy and Other Education Programs.--Of the amounts 
authorized to be appropriated to carry out chapter 1 of part I 
of the Foreign Assistance Act of 1961 (relating to development 
assistance) which are allocated for Haiti, $1,000,000 for 
fiscal year 1986 and $1,000,000 for fiscal year 1987 shall be 
available only for literacy and other education programs in 
Haiti.

[SEC. 706. MILITARY ASSISTANCE FOR PARAGUAY.

    [For the fiscal years 1986 and 1987, none of the funds 
authorized to be appropriated to carry out chapter 2 of part II 
of the Foreign Assistance Act of 1961 (relating to grant 
military assistance) or to carry out the Arms Export Control 
Act (relating to foreign military sales financing) may be used 
for assistance for Paraguay unless the President certifies to 
the Congress that the Government of Paraguay has ended the 
practice of torture and abuse of individuals held in detention 
by its military and security forces and has instituted 
procedures to ensure that those arrested promptly charged and 
brought to trial.

[SEC. 707. ASSISTANCE FOR PERU.

    [(a) Human Rights Training in IMET Programs.--Respect for 
internationally recognized human rights shall be an important 
component of the training provided for Peru under chapter 5 of 
part II of the Foreign Assistance Act of 1961 for fiscal year 
1986 and for fiscal year 1987.
    [(b) Strengthening the Peruvian Judicial System.--Of the 
amount authorized to be appropriated by this Act to carry out 
chapter 4 of part II of the Foreign Assistance Act of 1961 
(relating to the economic support fund), $1,000,000 for fiscal 
year 1986 and $1,000,000 for fiscal year 1987 shall be used to 
strengthen the judicial system in Peru under section 534 of the 
Foreign Assistance Act of 1961 (relating to administration of 
justice).]

           *       *       *       *       *       *       *


[SEC. 709. COMPREHENSIVE REPORTS ON ASSISTANCE FOR LATIN AMERICA AND 
                    THE CARIBBEAN.

    [(a) Requirement for Comprehensive Accounting of 
Assistance.--In the annual reports required by section 634 of 
the Foreign Assistance Act of 1961, the President shall provide 
to the Congress a full, complete, and detailed accounting of 
all assistance provided during the fiscal years 1986 and 1987 
for Latin America and the Caribbean under the Foreign 
Assistance Act of 1961 and the Arms Export Control Act.
    [(b) Information To Be Included.--The report provided 
pursuant to subsection (a) shall include for each fiscal year, 
among other things, the following with respect to each 
authorization account:
          [(1) The specific projects and other activities 
        carried out in each country.
          [(2) The number of persons from each country who were 
        provided with training, and the types of training 
        provided.
          [(3) The defense articles and defense services 
        provided for each country.
          [(4) The types of goods and commodities provided to 
        each country for economic stabilization purposes under 
        chapter 4 of part II of the Foreign Assistance Act of 
        1961 (relating to the economic support fund), and a 
        copy of each agreement for the furnishing of any 
        assistance under that chapter.
          [(5) The amounts of local currency generated by 
        United States assistance to each country, the uses of 
        those currencies, and the total amount of those 
        currencies still available for use as of the time of 
        the report.
          [(6) A report on any transfers or reprogrammings of 
        funds, and a description of how transferred or 
        reprogrammed funds modified the amounts requested for 
        each account.
          [(7) A report on the funds which have been obligated 
        but remain unexpended for each country in each account.
          [(8) An analysis of the amount of funds and programs 
        provided through nongovernmental as contrasted to 
        governmental channels.

[SEC. 710. USE OF PRIVATE AND VOLUNTARY ORGANIZATIONS.

    [To the maximum extent practicable, assistance under 
chapter 1 of part I (relating to development assistance) and 
chapter 4 of part II (relating to the economic support fund) of 
the Foreign Assistance Act of 1961 for countries in Latin 
America and the Caribbean should be provided through private 
and voluntary organizations which have a proven record of 
development assistance efforts overseas.]

           *       *       *       *       *       *       *


[SEC. 713. USE OF EMPLOYEE STOCK OWNERSHIP PLANS IN DEVELOPMENT 
                    EFFORTS.

    [(a) Findings.--The Congress declares that--
          [(1) employee stock ownership plans in industrial, 
        farming, banking, and other enterprises in Central 
        America and the Caribbean can be an important component 
        in achieving United States goals in Central America and 
        the Caribbean; and
          [(2) employee stock ownership plans should be used as 
        an instrument in financing growth and transfers of 
        equity in the region, in reorganizing state-owned 
        enterprises into viable employee-owned businesses, in 
        expanding political and economic pluralism, and in 
        strengthening democratic institutions in the region.
    [(b) Plan for Expanded Use of ESOPs.--The President is 
urged to develop a plan for the expanded use of employee stock 
ownership plans in development efforts of the United States in 
Central America and the Caribbean, with an emphasis on policy 
and infra-structural changes needed to encourage voluntary 
employee stock ownership initiatives by multinational 
corporations and other private sector enterprises which have 
investments, are considering making new investments, or are 
interested in management contracts and joint ventures in the 
region.
    [(c) Task Force.--To assist in this effort, there is 
established a Presidential Task Force on Project Economic 
Justice (hereafter in this section referred to as the ``Task 
Force''), which shall consist of individuals appointed by the 
President who are distinguished leaders of the private sector 
of the United States, including significant representation of 
union representatives of workers in successful companies with 
employee stock ownership plans and of nationally recognized 
experts in all phases of design, implementation, and operation 
of employee stock ownership plans. The President shall 
designate one of the members of the Task Force to serve as 
Chairman. The Chairman of the Task Force shall appoint a 
volunteer fund-raising committee, and all the expenses of the 
Task Force shall be paid without the use of public funds.
    [(d) Report.--Not later than December 31, 1985, the Task 
Force shall prepare and transmit to the President and the 
Congress a report on the expanded use of employee stock 
ownership plans in the development efforts of the United States 
in Central America and the Caribbean, including specific 
recommendations on strategies for using employee stock 
ownership plans as a means of accelerating the rate of private 
sector capital formation in Central America and the Caribbean 
that is systematically linked to expanding ownership and 
profit-sharing opportunities for all employees.

[SEC. 714. INTERNATIONAL ADVISORY COMMISSION FOR THE CARIBBEAN REGION.

    [(a) Findings.--The Congress finds that--
          [(1) many of the social, agricultural, educational, 
        and economic problems which confront nations in the 
        Caribbean Region result primarily from social and 
        economic injustice and inadequate economic and 
        agricultural development;
          [(2) such problems are not addressed sufficiently by 
        current United States policies toward that region;
          [(3) the development of the Caribbean Region is of 
        vital importance to the economic and strategic 
        interests of the United States and its allies; and
          [(4) for purposes of defining development plans, 
        providing an international forum for Caribbean Region 
        development issues, and providing expert advice to 
        donor-aid countries, an international commission is 
        needed as the prime institution for promoting economic 
        cooperation and development in the Caribbean Region.
    [(b) Invitations to Participate in Commission.--
          [(1) Invitation to caribbean countries.--The 
        President may invite the countries which comprise the 
        Caribbean Region to participate with the United States 
        in a commission to be known as the International 
        Advisory Commission for the Caribbean Region (hereafter 
        in this section referred to as the ``Commission'').
          [(2) Invitation to certain other countries.--The 
        President may also invite the Netherlands, the United 
        Kingdom, France, Canada, the Commonwealth of Puerto 
        Rico, and the Virgin Islands to participate in the 
        Commission.
    [(c) Functions of Commission.--It is the sense of the 
Congress that the Commission should--
          [(1) examine social, agricultural, educational, and 
        economic issues which affect the Caribbean Region; and
          [(2) consult with leaders of the countries in the 
        Caribbean Region and with representatives from public 
        and private organizations involved in matters related 
        to the Caribbean Region in order to evaluate the 
        problems and needs of such countries.
    [(d) Funding for Organizational Meeting of Commission.--Of 
the funds authorized to be appropriated to carry out section 
106 of the Foreign Assistance Act of 1961 (relating to 
development assistance for energy, private and voluntary 
organizations, and selected development activities), up to a 
total of $100,000 for fiscal years 1986 and 1987 may be made 
available to--
          [(1) pay reasonable administrative expenses 
        associated with the organizational meeting of the 
        Commission; and
          [(2) pay reasonable travel and lodging expenses 
        incurred by commissioners from other participant 
        governments incident to their attendance at the 
        organizational meeting of the Commission.
    [(e) Request to Congress Relating to United States 
Participation in the Commission.--The President should provide 
cost estimates and request authorization from the Congress in 
order to provide for the participation of the United States in 
the Commission (other than United States participation 
associated with the organizational meeting).
    [(f) Appointment of United States Representative and 
Observers.--Upon the creation of the Commission--
          [(1) the President should consider appointing one 
        individual as the United States representative to the 
        Commission;
          [(2) the Speaker of the House of Representatives 
        should consider appointing two Members of the House, 
        one from each major political party, as observers at 
        the Commission; and
          [(3) the majority leader of the Senate should 
        consider appointing two Members of the Senate, one from 
        each major political party, as observers at the 
        Commission.

           *       *       *       *       *       *       *


[SEC. 716. RURAL ELECTRIFICATION.

    [It is the sense of the Congress that funds appropriated 
for the fiscal years 1986 and 1987 under section 103(a)(2) of 
the Foreign Assistance Act of 1961 (relating to development 
assistance for agriculture, rural development, and nutrition) 
should be used for a comprehensive rural electrification 
program in Central America in order to establish conditions of 
stability and a foundation for economic development.

[SEC. 717. FACILITATING INTERNATIONAL COMMERCE THROUGH MEXICO.

    [(a) Finding.--Recognizing that increased levels of 
balanced international trade are an essential component in an 
economic development program for the region and that the United 
States has traditionally been the most important trading 
partner for each of the nations of Latin America, it is the 
sense of the Congress that current procedures and laws of the 
Government of Mexico, and practices of its officials, 
constitute a significant impediment to the transit of vehicles 
carrying the commodities of international trade through Mexican 
territory.
    [(b) Negotiations and Cooperative Steps Concerning 
Transit.--As the Government of Mexico has played a valuable 
role in assisting and encouraging the economic and political 
development of the region, and in offering advice to the United 
States as to constructive policies this nation might pursue 
with respect to peace and prosperity in the area, the Secretary 
of State, acting independently or with representatives of other 
Latin America nations, shall initiate negotiations with the 
Government of Mexico aimed at eliminating or reducing those 
impediments to international trade. The agenda for such 
negotiations should include discussions to encourage the 
Government of Mexico to accede to existing international custom 
conventions on international in-transit shipments. Such actions 
are to be taken in concert with the institution by the United 
States, and the nations of the region where the transiting 
shipments originate, of appropriate and cooperative steps to 
make sealed-truck, no-inspection transit administratively 
acceptable to the Government of Mexico and other transited 
countries. Similar bilateral or multilateral negotiations by 
the Secretary of State with nations respecting the same 
international customs conventions is also encouraged.
    [(c) Report.--The Secretary of State shall report the 
status of these negotiations to Congress by January 1, 1986.

[SEC. 718. CONDEMNING HUMAN RIGHTS VIOLATIONS AND THE SUBVERSION OF 
                    OTHER GOVERNMENTS BY THE GOVERNMENT OF CUBA.

    [(a) Condemnation of Certain Action by the Government of 
Cuba.--The Congress condemns--
          [(1) the consistent pattern of gross violations of 
        internationally recognized human rights by the Cuban 
        Government, including--
                  [(A) cruel, inhumane, and degrading treatment 
                and punishment of prisoners;
                  [(B) the suppression of free speech, press, 
                and assembly; and
                  [(C) restrictions on religious activity and 
                the freedom to emigrate; and
          [(2) the provision by the Cuban government of 
        material aid and personnel support for the purposes of 
        subversion.
    [(b) Call Upon the Government of Cuba.--The Congress calls 
upon the Government of Cuba to restore civil liberties and 
cease in the violation of human rights of the Cuban people and 
cease the subversion of other governments through material and 
personnel support.

[SEC. 719. REPORTS ON FOREIGN DEBT IN LATIN AMERICA.

    [(a) Findings.--The Congress finds that--
          [(1) the foreign debt of Latin American countries has 
        soared from $27,000,000,000 in 1970 to over 
        $350,000,000,000 in 1983;
          [(2) the foreign debt of Latin American countries is 
        a serious obstacle to their economic progress, 
        threatens their stability, and endangers the democratic 
        processes in those nations;
          [(3) the economic and political futures of many of 
        the Latin American countries hang in the balance and 
        depend upon a successful resolution of the foreign debt 
        crisis; and
          [(4) the confidence of the American people in the 
        United States system of banking is also involved in a 
        successful resolution of the foreign debt crisis.
    [(b) Report.--Not later than January 1, 1986, the Secretary 
of State shall prepare and transmit to the Congress a report 
on--
          [(1) the magnitude of the foreign debt crisis in the 
        Western Hemisphere;
          [(2) the impact of the foreign debt crisis on the 
        economies of the countries of Latin America;
          [(3) the degree to which the national security 
        interests of the United States are implicated in this 
        crisis;
          [(4) the steps being taken and the policy being 
        pursued by the United States aimed at dealing with this 
        crisis;
          [(5) the degree to which the foreign debt crisis 
        affects the system of banking in the United States; and
          [(6) the steps being taken and the policy being 
        pursued by the United States Government aimed at 
        dealing with this crisis.

[SEC. 720. ECONOMIC ASSISTANCE FOR URUGUAY.

    [Of the amounts authorized to be appropriated to carry out 
chapter 4 of part II of the Foreign Assistance Act of 1961 
(relating to the economic support fund), $15,000,000 for fiscal 
year 1986 and $15,000,000 for fiscal year 1987 shall be 
available only for Uruguay.

[SEC. 721. CANADIAN EXPORTS TO THE UNITED STATES.

    [(a) Cattle and Hogs.--(1) The Congress finds that--
          [(A) livestock prices have been in decline for some 
        time due to excessive supply partially caused by 
        dramatic increases in importation of live cattle and 
        hogs from Canada, which has increased by 1,000 percent 
        in the last decade in the case of hogs alone;
          [(B) American livestock producers are suffering from 
        the same general economic crisis affecting all of 
        agriculture, and many will face liquidation or 
        foreclosure in the near future; and
          [(C) the disparity between the United States and the 
        Canadian dollar amounts to 32 to 34 percent and results 
        in even further increases in Canadian hogs and cattle 
        being imported into the United States.
    [(2) Therefore, it is the sense of the Congress that the 
President should direct appropriate officials of the executive 
branch, including the United States Trade Representative, the 
Secretary of Agriculture, and the Secretary of Commerce, to 
aggressively pursue discussions with the Canadian Government 
directed toward immediate reduction in the Canadian export of 
cattle and hogs to the United States.
    [(b) Softwood Timber.--(1) The Congress finds that--
          [(A) softwood timber prices have been in decline for 
        some time due to excessive supply partially caused by 
        dramatic increases in importation of processed softwood 
        timber from Canada, which has increased from 18 percent 
        of the United States market in the last two years to 35 
        to 40 percent today;
          [(B) American timber producers are suffering from 
        this economic crisis, and the difficulty in acquiring 
        timber from the National Forest System; and
          [(C) the disparity between the United States and the 
        Canadian dollar amounts to 32 to 34 percent and results 
        in even further increases in processed softwood timber 
        being imported into the United States.
    [(2) Therefore, it is the sense of the Congress that the 
President should direct appropriate officials of the executive 
branch, including the United States Trade Representative, the 
Secretary of Agriculture, and the Secretary of Commerce, to 
aggressively pursue discussions with the Canadian Government 
directed toward immediate reduction in the Canadian export of 
softwood timber to the United States.

[SEC. 722. NICARAGUA.

    [(a) Settlement of the Conflict.--The Congress--
          [(1) strongly supports national reconciliation in 
        Nicaragua and the creation of a framework for 
        negotiating a peaceful settlement to the Nicaraguan 
        conflict; and
          [(2) finds that the United States should, in 
        assisting efforts to reach comprehensive and verifiable 
        final agreements based on the Contadora Document of 
        Objectives, encourage the Government of Nicaragua to 
        pursue a dialogue with the armed opposition forces and 
        their political representatives for the purposes of 
        achieving an equitable political settlement of the 
        conflict, including free and fair elections.
    [(b) United States Concerns About Nicaraguan Foreign and 
Domestic Policies.--The Congress finds and declares the 
following:
          [(1) Despite positive actions by the Congress 
        signaling support for negotiated solutions to conflicts 
        in Central America, there are disturbing trends in 
        Nicaragua's foreign and domestic policies, including--
                  [(A) President Daniel Ortega's April 1985 
                trip to the Soviet Union at a time when the 
                Congress signaled its strong disapproval of 
                increasing Nicaraguan-Soviet ties;
                  [(B) the Sandinista government's close 
                military ties with Cuba, the Soviet Union, and 
                its Warsaw Pact allies; the disappointing and 
                insufficient reduction of the number of Cuban 
                advisors in Nicaragua by only 100 out of an 
                approximately 2,500; and the continuing 
                military buildup that Nicaragua's neighbors 
                consider threatening;
                  [(C) the Sandinista government's curtailment 
                of individual liberties, political expression, 
                freedom of worship, and the independence of the 
                media;
                  [(D) the subordination of military, judicial, 
                and internal security functions to the ruling 
                political party; and
                  [(E) the Sandinista government's efforts to 
                export its influence and ideology.
          [(2) If Nicaragua does not address the concerns 
        described in paragraph (1), the United States has 
        several options to address this challenge to peace and 
        stability in the region, including political, 
        diplomatic, and trade sanctions. In addition, the 
        United States--
                  [(A) should through appropriate regional 
                organizations, such as the Organization of 
                American States, seek to maintain multilateral 
                pressure on Nicaragua to address these 
                concerns; and
                  [(B) should, if called upon to do so, give 
                serious consideration to supporting any 
                sanctions adopted by such an organization.
          [(3) In assessing whether or not progress is being 
        made in addressing these concerns, the Congress will 
        expect prompt and significant initiatives by the 
        Government of Nicaragua such as--
                  [(A) the removal of foreign military advisors 
                from Nicaragua;
                  [(B) the end to Sandinista support for 
                insurgencies in other countries in the region, 
                including the cessation of military supplies to 
                the rebel forces fighting the democratically 
                elected government in El Salvador;
                  [(C) restoration of individual liberties, 
                political expression, freedom of worship, and 
                the independence of the media; and
                  [(D) progress toward international 
                reconciliation and a pluralistic democratic 
                system, including steps to liberalize 
                institutions in order to allow the internal 
                opposition in Nicaragua to become a viable 
                partner in the Nicaraguan political process.
    [(c) Resolution of the Conflict in Nicaragua.--
          [(1) Basis for policy.--The Congress finds that--
                  [(A) the people of Nicaragua are suffering 
                the horrors of a fierce armed conflict that is 
                causing grave hardships and loss of life, has 
                thrown the country into a serious political, 
                social, and economic upheaval, and is of 
                serious concern to the nations of the region 
                and to the United States;
                  [(B) this conflict is fundamentally a 
                continuation of efforts of the Nicaraguan 
                people to attain a representative government at 
                peace with its neighbors, efforts which began 
                under the Somoza regime; and
                  [(C) the United States recognized these noble 
                aspirations of the Nicaraguan people in the 
                June 23, 1979, resolution of the Seventeenth 
                Meeting of Consultation of Ministers of Foreign 
                Affairs of the Organization of American States, 
                which reads as follows:

[``WHEREAS:
    [``The people of Nicaragua are suffering the horrors of a 
fierce armed conflict that is causing grave hardships and loss 
of life, and has thrown the country into a serious political, 
social and economic upheaval;
    [``The inhumane conduct of the dictatorial regime governing 
the country, as evidenced by the report of the Inter-American 
Commission on Human Rights, is the fundamental cause of the 
dramatic situation faced by the Nicaraguan people; and
    [``The spirit of solidarity that guides Hemisphere 
relations places an unavoidable obligation on the American 
countries to exert every effort within their power, to put an 
end to the bloodshed and to avoid the prolongation of this 
conflict which is disrupting the peace of the Hemisphere;
    [``THE SEVENTEENTH MEETING OF CONSULTATION OF MINISTERS OF 
FOREIGN AFFAIRS,
[``DECLARES:
    [``That the solution of the serious problem is exclusively 
within the jurisdiction of the people of Nicaragua.
    [ ``That in the view of the Seventeenth Meeting of 
Consultation of Ministers of Foreign Affairs this solution 
should be arrived at on the basis of the following:
          [``1. Immediate and definitive replacement of the 
        Somoza regime.
          [``2. Installation in Nicaraguan territory of a 
        democratic government, the composition of which should 
        include the principal representative groups which 
        oppose the Somoza regime and which reflects the free 
        will of the people of Nicaragua.
          [``3. Guarantee of the respect for human rights of 
        all Nicaraguans without exception.
          [``4. The holding of free elections as soon as 
        possible, that will lead to the establishment of a 
        truly democratic government that guarantees peace, 
        freedom, and justice.
[``RESOLVES:
          [``1. To urge the member states to take steps that 
        are within their reach to facilitate an enduring and 
        peaceful solution of the Nicaraguan problem on the 
        bases set forth above, scrupulously respecting the 
        principle of nonintervention and abstaining from any 
        action that might be in conflict with the above bases 
        or be incompatible with a peaceful and enduring 
        solution to the problem.
          [``2. To commit their efforts to promote humanitarian 
        assistance to the people of Nicaragua and to contribute 
        to the social and economic recovery of the country.
          [``3. To keep the Seventeenth Meeting of Consultation 
        of Ministers of Foreign Affairs open while the present 
        situation continues.''.

          [(2) The government of nicaragua.--The Congress 
        further finds that--
                  [(A) the Government of National 
                Reconstruction of Nicaragua formally accepted 
                the June 23, 1979, resolution as a basis for 
                resolving the Nicaraguan conflict in its ``Plan 
                to Achieve Peace'' which was submitted to the 
                Organization of American States on July 12, 
                1979;
                  [(B) the June 23 1979, resolution and its 
                acceptance by the Government of National 
                Reconstruction of Nicaragua was the formal 
                basis for the removal of the Somoza regime and 
                the installation of the Government of National 
                Reconstruction;
                  [(C) the Government of National 
                Reconstruction, now known as the Government of 
                Nicaragua and controlled by the Frente 
                Sandinista (the FSLN), has flagrantly violated 
                the provisions of the June 23, 1979, 
                resolution, the rights of the Nicaraguan 
                people, and the security of the nations in the 
                region, in that it--
                          [(i) no longer includes the 
                        democratic members of the Government of 
                        National Reconstruction in the 
                        political process;
                          [(ii) is not a government freely 
                        elected under conditions of freedom of 
                        the press, assembly, and organization, 
                        and is not recognized as freely elected 
                        by its neighbors, Costa Rica, Honduras, 
                        and El Salvador;
                          [(iii) has taken significant steps 
                        towards establishing a totalitarian 
                        Communist dictatorship, including the 
                        formation of FSLN neighborhood watch 
                        committees and the enactment of laws 
                        that violate human rights and grant 
                        undue executive power;
                          [(iv) has committed atrocities 
                        against its citizens as documented in 
                        reports by the Inter-American 
                        Commission on Human Rights of the 
                        Organization of American States;
                          [(v) has aligned itself with the 
                        Soviet Union and Soviet allies, 
                        including the German Democratic 
                        Republic, Bulgaria, Libya, and the 
                        Palestine Liberation Organization;
                          [(vi) has committed and refuses to 
                        cease aggression in the form of armed 
                        subversion against its neighbors in 
                        violation of the Charter of the United 
                        Nations, the Charter of the 
                        Organization of American States, the 
                        Inter-American Treaty of Reciprocal 
                        Assistance, and the 1965 United Nations 
                        General Assembly Declaration on 
                        Intervention; and
                          [(vii) has built up an army beyond 
                        the needs of immediate self-defense, at 
                        the expense of the needs of the 
                        Nicaraguan people and about which the 
                        nations of the region have expressed 
                        deepest concern.
          [(3) The nicaraguan democratic opposition.--The 
        Congress further finds that--
                  [(A) as a result of these violations, the 
                Government of Nicaragua has lost the support of 
                virtually all independent sectors of Nicaraguan 
                society who initially supported the removal of 
                the Somoza regime (including democratic 
                political parties of the left, center, and 
                right; the leadership of the Church; free 
                unions; and the business, farmer, and 
                professional sectors) and who still seek 
                democracy, reject the rule of the Frente 
                Sandinista, and seek the free elections 
                promised in 1979;
                  [(B) the Nicaraguan political opposition has 
                joined with the armed opposition groups in 
                issuing the San Jose Manifesto of March 1, 
                1985, calling for a national dialogue under 
                mediation by the Nicaraguan Bishops Conference 
                to peacefully attain the fulfillment of the 
                Government of Nicaragua's commitments to the 
                Organization of American States, including 
                ``the democratization of Nicaragua, conscious 
                that democracy is the only means to carry out 
                an authentic revolution and secure our national 
                identity and sovereignty'';
                  [(C) on June 12, 1985, in San Salvador, El 
                Salvador, the political and armed opposition 
                groups representing the entire democratic 
                political spectrum of Nicaragua formed the 
                United Nicaraguan Opposition and affirmed their 
                ``historical commitment to achieve for 
                Nicaragua the reconciliation of her children, 
                to establish the foundation for democracy and 
                the moral and material reconstruction of the 
                nation''; and
                  [(D) the United Nicaraguan Opposition further 
                declared its intention to ``give priority at 
                all times to a political solution which will 
                ease the suffering of our people''.
          [(4) Concerns in the region and united states 
        responsibilities.--The Congress further finds that--
                  [(A) Nicaragua's neighbors, Costa Rica, El 
                Salvador, and Honduras, have expressed, 
                individually and through the Contadora process, 
                their belief that their peace and freedom is 
                not safe so long as the Government of Nicaragua 
                excludes from power most of Nicaragua's 
                political leadership and is controlled by a 
                small sectarian party, without regard to the 
                will of the majority of Nicaraguans; and
                  [(B) the United States, given its role in the 
                installation of the current Government of 
                Nicaragua, has a special responsibility 
                regarding the implementation of the commitments 
                made by that Government in 1979, especially to 
                those who fought against Somoza to bring 
                democracy to Nicaragua with United States 
                support.
          [(5) Resolution of the conflict.--The Congress--
                  [(A) condemns the Government of Nicaragua for 
                violating its solemn commitments to the 
                Nicaraguan people, the United States, and the 
                Organization of American States;
                  [(B) affirms that the Government of Nicaragua 
                will be regarded as having achieved political 
                legitimacy when it fulfills its 1979 commitment 
                to the Organization of American States to 
                implement genuinely democratic elections, under 
                the supervision of the Organization of American 
                States, in which all elements of the Nicaraguan 
                resistance can peacefully participate under 
                conditions recognized as necessary for free 
                elections by international bodies;
                  [(C) urges the Government of Nicaragua to 
                enter a national dialogue, as proposed by the 
                Nicaraguan democratic resistance in San Jose, 
                Costa Rica, on March 1, 1985, under mediation 
                by the Nicaraguan Bishops Conference in order 
                to peacefully resolve the current crisis 
                through internationally recognized elections in 
                which all elements of Nicaraguan society can 
                freely participate;
                  [(D) supports the Nicaraguan democratic 
                resistance in its efforts to peacefully resolve 
                the Nicaraguan conflict and to achieve the 
                fulfillment of the Government of Nicaragua's 
                solemn commitments to the Nicaraguan people, 
                the United States, and the Organization of 
                American States;
                  [(E) supports efforts by the Contadora 
                nations, the Organization of American States, 
                and other appropriate regional organizations to 
                maintain multilateral pressure on Nicaragua to 
                fulfill its commitments; and
                  [(F) requests that the Secretary of State 
                transmit the text of this subsection to the 
                Foreign Ministers of the member states of the 
                Organization of American States.
    [(d) Prohibition Relating to Military or Paramilitary 
Operations in Nicaragua.--Notwithstanding any other provision 
of law, no funds authorized to be appropriated or otherwise 
made available by this Act (except the funds authorized to be 
appropriated in this section), by the Foreign Assistance Act of 
1961, or by the Arms Export Control Act shall be used to 
provide assistance of any kind, either directly or indirectly, 
to any person or group engaging in an insurgency or other act 
of rebellion against the Government of Nicaragua. The United 
States shall not enter into any arrangement conditioning, 
expressly or impliedly, the provision of assistance under this 
Act or the purchase of defense articles and services under the 
Arms Export Control Act upon the provision of assistance by a 
recipient to persons or groups engaging in an insurgency or 
other act of rebellion against the Government of Nicaragua.
    [(e) Limitation on Use of Funds Against Nicaragua.--None of 
the funds authorized to be appropriated in this or any other 
Act can be used to fund directly, or indirectly, activities 
against the Government of Nicaragua which have not been 
authorized by, or pursuant to, law and which would place the 
United States in violation of our obligations under the Charter 
of the Organization of American States, to which the United 
States is a signatory, or under international law as defined by 
treaty commitments agreed to, and ratified by, the Government 
of the United States.
    [(f) Food Aid to the Nicaraguan People.--In cooperation 
with Cardinal Miguel Obando y Bravo and private and voluntary 
organizations, the President should explore and promote means 
for providing food aid to the Nicaraguan people through private 
and voluntary organizations and the Catholic Church.
    [(g) Humanitarian Assistance for Nicaraguan Democratic 
Resistance.--(1) Effective upon the date of enactment of this 
Act, there are authorized to be appropriated $27,000,000 for 
humanitarian assistance to the Nicaraguan democratic 
resistance. Such assistance shall be provided to such 
department or agency of the United States as the President 
shall designate, except the Central Intelligence Agency or the 
Department of Defense.
    [(2) The assistance authorized by this subsection is 
authorized to remain available for obligation until March 31, 
1986.
    [(3) One-third of the assistance authorized by this 
subsection shall be available for obligation at any time after 
the appropriation of funds pursuant to such authorization, an 
additional one-third shall be available for obligation upon 
submission of the first report required by subsection (j), and 
the remaining one-third shall be available for obligation upon 
submission of the second such report.
    [(4) The President shall establish appropriate procedures 
to ensure that any humanitarian assistance provided by the 
United States Government to the Nicaraguan democratic 
resistance is used only for the intended purpose and is not 
diverted (through barter, exchange, or any other means) for 
acquisition of weapons systems, ammunition, or other equipment, 
vehicle, or material which can be used to inflict serious 
bodily harm or death.
    [(5) As used in this subsection, the term ``humanitarian 
assistance'' means the provision of food, clothing, medicine, 
and other humanitarian assistance, and it does not include the 
provision of weapons, weapons systems, ammunition, or other 
equipment, vehicles, or material which can be used to inflict 
serious bodily harm or death.
    [(h) Assistance for Implementation of a Contadora 
Agreement.--Effective upon the date of enactment of this Act, 
there are authorized to be appropriated $2,000,000, which are 
authorized to remain available until expended, for payment by 
the Secretary of State for the expenses arising from 
implementation by the Contadora nations (Mexico, Panama, 
Colombia, and Venezuela) of an agreement among the countries of 
Central America based on the Contadora Document of Objectives 
of September 9, 1983, including peacekeeping, verification, and 
monitoring systems.
    [(i) Policies With Respect to Nicaragua.--The President is 
hereby urged and requested--
          [(1) to pursue vigorously the use of diplomatic and 
        economic measures to resolve the conflict in Nicaragua, 
        including simultaneous negotiations--
                  [(A) to implement the Contadora Document of 
                Objectives of September 8, 1983; and
                  [(B) to develop, in close consultation and 
                cooperation with other nations, trade and 
                economic measures to complement such policies 
                of the United States and to encourage the 
                Government of Nicaragua to take the necessary 
                steps to resolve the conflict;
          [(2) to suspend the economic sanctions imposed by the 
        President on May 1, 1985, and the United States 
        military maneuvers in Honduras and off the coast of 
        Nicaragua, if the Government of Nicaragua agrees--
                  [(A) to a cease fire,
                  [(B) to open a dialogue with all elements of 
                the opposition, including the Nicaraguan 
                democratic resistance, and
                  [(C) to suspend the state of emergency in 
                Nicaragua;
          [(3) to call upon the Nicaraguan democratic 
        resistance to remove from their ranks any individuals 
        who have engaged in human rights abuses; and
          [(4) to resume bilateral discussions with the 
        Government of Nicaragua with a view to encouraging--
                  [(A) a church-mediated dialogue between the 
                Government of Nicaragua and all elements of the 
                opposition, including the Nicaraguan democratic 
                resistance, in support of internal 
                reconciliation as called for by the Contadora 
                Document of Objectives; and
                  [(B) a comprehensive, verifiable agreement 
                among the nations of Central America, based on 
                the Contadora Document of Objectives.
    [(j) Reports.--The President shall submit a report to the 
Congress 90 days after the date of enactment of this Act, and 
every 90 days thereafter, on any actions taken to carry out 
subsections (g) and (h). Each such report shall include--
          [(1) a detailed statement of any progress made in 
        reaching a negotiated settlement referred to in 
        subsection (i)(1), including the willingness of the 
        Nicaraguan democratic resistance and the Government of 
        Nicaragua to negotiate a settlement;
          [(2) a detailed accounting of the disbursements made 
        to provide humanitarian assistance with the funds 
        provided pursuant to subsection (g); and
          [(3) a discussion of the alleged human rights 
        violations by the Nicaraguan democratic resistance and 
        the Government of Nicaragua, including a statement of 
        the steps taken by the Nicaraguan democratic resistance 
        to comply with the request referred to in subsection 
        (i)(3).
    [(k) Submission of Request for Additional Assistance for 
the Central America Peace Process.--If the President determines 
at any time after the enactment of this Act that--
          [(1) negotiations based on the Contadora Document of 
        Objectives of September 9, 1983, have produced an 
        agreement, or show promise of producing an agreement, 
        or
          [(2) other trade and economic measures will assist in 
        a resolution of the conflict, or to stabilization in 
        the region,
[the President may submit to the Congress a request for budget 
and other authority to provide additional assistance for the 
furtherance of the Central America peace process.
    [(l) Statement To Be Included.--The President's request 
pursuant to subsection (k) shall include a detailed statement 
as to progress made to resolve the conflict in the region.
    [(m) Consultation With the Congress.--In formulating a 
request pursuant to subsection (k), the President shall consult 
with the Congress.
    [(n) House Procedures.--(1) The provisions of this 
subsection apply, during the 99th Congress, to the 
consideration in the House of Representatives of a joint 
resolution with respect to the request submitted by the 
President pursuant to subsection (k).
    [(2) For purposes of this subsection, the term ``joint 
resolution'' means only a joint resolution introduced within 3 
legislative days after the Congress receives the request 
submitted by the President pursuant to subsection (k)--
          [(A) the matter after the resolving clause of which 
        is as follows: ``That the Congress hereby approves the 
        additional authority and assistance for the Central 
        America peace process that the President requested 
        pursuant to the International Security and Development 
        Cooperation Act of 1985, notwithstanding section 10 of 
        Public Law 91672.'';
          [(B) which does not have a preamble; and
          [(C) the title of which is as follows: ``Joint 
        Resolution relating to Central America pursuant to the 
        International Security and Development Cooperation Act 
        of 1985.''.
    [(3) A joint resolution shall, upon introduction, be 
referred to the appropriate committee or committees of the 
House of Representatives.
    [(4) If all the committees of the House to which a joint 
resolution has been referred have not reported the same joint 
resolution by the end of 15 legislative days after the first 
joint resolution was introduced, any committee which has not 
reported the first joint resolution introduced shall be 
discharged from further consideration of that joint resolution 
and that joint resolution shall be placed on the appropriate 
calendar of the House.
    [(5)(A) At any time after the first joint resolution placed 
on the appropriate calendar has been on that calendar for a 
period of 5 legislative days, it is in order for any Member of 
the House (after consultation with the Speaker as to the most 
appropriate time for the consideration of that joint 
resolution) to move that the House resolve itself into the 
Committee of the Whole House on the State of the Union for the 
consideration of that joint resolution. The motion is highly 
privileged and is in order even though a previous motion to the 
same effect has been disagreed to. All points of order against 
the joint resolution under clauses 2 and 6 of Rule XXI of the 
Rules of the House are waived. If the motion is agreed to, the 
resolution shall remain the unfinished business of the House 
until disposed of. A motion to reconsider the vote by which the 
motion is disagreed to shall not be in order.
    [(B) Debate on the joint resolution shall not exceed ten 
hours, which shall be divided equally between a Member favoring 
and a Member opposing the joint resolution. A motion to limit 
debate is in order at any time in the House or in the Committee 
of the Whole and is not debatable.
    [(C) An amendment to the joint resolution is not in order.
    [(D) At the conclusion of the debate on the joint 
resolution, the Committee of the Whole shall rise and report 
the joint resolution back to the House, and the previous 
question shall be considered as ordered on the joint resolution 
to final passage without intervening motion.
    [(6) As used in this subsection, the term ``legislative 
day'' means a day on which the House is in session.
    [(o) Senate Procedures.--A joint resolution which is 
introduced in the Senate within 3 calendar days after the day 
on which the Congress receives a Presidential request described 
in subsection (k) and which, if enacted, would grant the 
President the authority to take any or all of the actions 
described in subsection (k) shall be considered in accordance 
with procedures contained in paragraphs (3) through (7) of 
section 8066(c) of the Department of Defense Appropriations 
Act, 1985 (as contained in Public Law 98-473), except that--
          [(1) references in such paragraphs to the Committees 
        on Appropriations of the Senate shall be deemed to be 
        references to the appropriate committee or committees 
        of the Senate; and
          [(2) amendments to the joint resolution are in order.
    [(p) * * * [Repealed--1987]
    [(q) Statement To Be Included.--The President's request 
pursuant to subsection (p) shall include a detailed statement 
as to why the negotiations or other measures have failed to 
resolve the conflict in the region.
    [(r) Consultation With the Congress.--In formulating a 
request pursuant to subsection (p), the President shall consult 
with the Congress.
    [(s) * * * [Repealed--1987]
    [(t) * * * [Repealed--1987]
    [(u) Congressional Rulemaking Powers.--Subsections (n), 
(o), (s), and (t) are enacted--
          [(1) as exercises of the rulemaking powers of the 
        House of Representatives and Senate, and as such they 
        are deemed a part of the Rules of the House and the 
        Rules of the Senate, respectively, but applicable only 
        with respect to the procedure to be followed in the 
        House and the Senate in the case of joint resolutions 
        under this section, and they supersede other rules only 
        to the extent that they are inconsistent with such 
        rules; and
          [(2) with full recognition of the constitutional 
        right of the House and the Senate to change their rules 
        at any time, in the same manner, and to the same extent 
        as in the case of any other rule in the House or 
        Senate, and of the right of the Committee on Rules of 
        the House of Representatives to report a resolution for 
        the consideration of any measure.

                          [TITLE VIII--AFRICA

[SEC. 801. BALANCE-OF-PAYMENTS SUPPORT FOR COUNTRIES IN AFRICA.

    [(a) ESF Commodity Import and Sector Programs.--Agreements 
with countries in Africa which provide for the use of funds 
made available to carry out chapter 4 of part II of the Foreign 
Assistance Act of 1961 for the fiscal years 1986 and 1987 to 
finance imports by those countries (under commodity import 
programs or sector programs) shall require that those imports 
be used to meet long-term development needs in those countries 
in accordance with the following criteria:
          [(1) Spare parts and other imports shall be allocated 
        on the basis of evaluations, by the agency primarily 
        responsible for administering part I of that Act, of 
        the ability of likely recipients to use such spare 
        parts and imports in a maximally productive, employment 
        generating, and cost effective way.
          [(2) Imports shall be coordinated with investments in 
        accordance with the recipient country's plans for 
        promoting economic development. The agency primarily 
        responsible for administering part I of that Act shall 
        assess such plans to determine whether they will 
        effectively promote economic development.
          [(3) Emphasis shall be placed on imports for 
        agricultural activities which will expand agricultural 
        production, particularly activities which expand 
        production for export or production to reduce reliance 
        on imported agricultural products.
          [(4) Emphasis shall also be placed on a distribution 
        of imports having a broad development impact in terms 
        of economic sectors and geographic regions.
          [(5) In order to maximize the likelihood that the 
        imports financed by the United States under such 
        chapter are in addition to imports which would 
        otherwise occur, consideration shall be given to 
        historical patterns of foreign exchange uses.
          [(6)(A) Seventy-five percent of the foreign 
        currencies generated by the sale of such imports by the 
        government of the country shall be deposited in a 
        special account established by that government and, 
        except as provided in subparagraph (B), shall be 
        available only for use in accordance with the agreement 
        for economic development activities which are 
        consistent with the policy directions of section 102 of 
        the Foreign Assistance Act of 1961 and which are the 
        types of activities for which assistance may be 
        provided under sections 103 through 106 of that Act.
          [(7) The agreement shall require that the government 
        of the country make available to the United States 
        Government such portion of the amount deposited in the 
        special account as may be determined by the President 
        to be necessary for requirements of the United States 
        Government.
    [(b) Annual Evaluations.--The agency primarily responsible 
for administering part I of the Foreign Assistance Act of 1961 
shall conduct annual evaluations of the extent to which the 
criteria set forth in this subsection have been met.

[SEC. 802. ECONOMIC SUPPORT ASSISTANCE FOR SOUTHERN AFRICA.

    [(a) Funds for Southern Africa Regional Programs.--Of the 
amounts authorized to be appropriated to carry out chapter 4 of 
part II of the Foreign Assistance Act of 1961, not less than 
$30,000,000 for fiscal year 1986 and not less than $30,000,000 
for fiscal year 1987 shall be available only for regional 
programs in southern Africa. Not less than 50 percent of each 
of these amounts shall be allocated to assist sector projects 
supported by the Southern Africa Development Coordination 
Conference (SADCC) to enhance the economic development of the 
nine member states forming this important regional institution, 
especially in the following sectors: transportation, 
agriculture research and training, manpower development, and 
institutional support for the SADCC secretariat.
    [(b) Studies Relating to Southern Africa Regional 
Programs.--(1) The administrator of the agency primarily 
responsible for administering part I of the Foreign Assistance 
Act of 1961 shall conduct a study which evaluates--
          [(A) the assistance which that agency provides to the 
        Southern Africa Development Coordination Conference and 
        other African regional institutions and economic 
        development organizations, and
          [(B) ways to improve such assistance.
    [(2) The administrator shall also conduct a study which 
assesses what type of bureaucratic mechanism within that agency 
might be established to coordinate assistance to all African 
regional institutions.
    [(3) The administrator shall submit the results of the 
studies conducted pursuant to this subsection to the Congress 
within 3 months after the date of enactment of this Act.

[SEC. 803. POLICY TOWARD SOUTH AFRICAN ``HOMELANDS''.

    [(a) Findings.--The Congress finds that--
          [(1) the sanctity of the family, individual liberty, 
        maximum freedom of choice, ownership of private 
        property, and equal treatment of all citizens, 
        regardless of race, are principles which are fully 
        supported by the American people;
          [(2) the forced relocation of blacks by the 
        Government of the Republic of South Africa to 
        designated ``homelands'' divides families, as families 
        are required to remain in the ``homelands'' while 
        fathers seek work in the so-called ``white areas'';
          [(3) the forced removal of persons living in so-
        called ``black spots'' in ``white'' rural areas in 
        South Africa denies them the fundamental right to live 
        and to farm on land they have legally occupied for 
        years, and subjects them to arbitrary arrest and 
        detention when they seek these rights;
          [(4) compared to ``white'' South Africa, the 
        designated ``homelands'', which are meant to 
        accommodate the largest South African population group 
        on a fraction of South African territory and were 
        established without the consent of the vast majority of 
        the governed, are characterized by high rates of infant 
        mortality, unemployment, and malnutrition and by a 
        severe shortage of medical services;
          [(5) the policy of the Government of the Republic of 
        South Africa denies blacks their rightful claim to full 
        South African citizenship; and
          [(6) the recent violence in South Africa must be seen 
        as an inevitable result of the denial of the full 
        rights of citizenship.
    [(b) Statement of Policy.--It is the sense of the Congress 
that--
          [(1) the policy of separate development and the 
        forced relocation of the people of the Republic of 
        South Africa are inconsistent with fundamental American 
        values and internationally recognized principles of 
        human rights;
          [(2) the Government of the United States should 
        continue to regard as citizens of South Africa all 
        persons born within the internationally recognized 
        boundaries of the Republic of South Africa, and not 
        differentiate among these citizens on the basis of the 
        South African Government's claim to have granted 
        independence to various ``homelands'';
          [(3) at such times that any ``homeland'' official 
        applies for a visa for travel to the United States, 
        such visa should not be granted unless that official 
        holds a passport which is recognized as valid by the 
        Government of the United States; and
          [(4) the Government of the United States should urge 
        that the forced relocation of South African citizens be 
        discontinued and that policies be adopted for all South 
        Africa's citizens which protect the sanctity of the 
        family, individual liberty, maximum freedom of choice, 
        ownership of private property, and equal treatment of 
        all citizens, regardless of race.

[SEC. 804. ASSISTANCE FOR ZAIRE.

    [(a) Economic Support Assistance.--Funds allocated for 
assistance for Zaire under chapter 4 of part II of the Foreign 
Assistance Act of 1961 for each of the fiscal years 1986 and 
1987 shall be used only for assistance which is provided in 
accordance with the provisions applicable to assistance under 
chapter 1 of part I of the Foreign Assistance Act of 1961. Such 
assistance shall be provided, to the maximum extent 
practicable, through private and voluntary organizations.
    [(b) Military Assistance.--For each of the fiscal years 
1986 and 1987--
          [(1) the value of assistance provided under chapter 2 
        of part II of the Foreign Assistance Act of 1961 for 
        Zaire may not exceed $7,000,000; and
          [(2) financing may not be provided under the Arms 
        Export Control Act of Zaire.

[SEC. 805. ASSISTANCE FOR TUNISIA.

    [(a) Policy Concerning Security Assistance.--The United 
States provides security assistance to Tunisia in recognition 
of the traditional friendship between the United States and 
Tunisia and our common interests in the region. The provision 
of such assistance is also based on the expectation that 
political stability and development in Tunisia will be best 
advanced through continued growth of democratic institutions.
    [(b) Earmarking of MAP and ESF.--For each of the fiscal 
years 1986 and 1987--
          [(1) not less than $15,000,000 of the amounts 
        authorized to be appropriated to carry out chapter 2 of 
        part II of the Foreign Assistance Act of 1961, and
          [(2) not less than $20,000,000 of the amounts 
        authorized to be appropriated to carry out chapter 4 of 
        part II of that Act,
[shall be available only for Tunisia.

[SEC. 806. POLITICAL SETTLEMENT IN SUDAN.

    [(a) Findings.--The Congress finds that--
          [(1) friendship and mutual interests bind the United 
        States and Sudan; and
          [(2) the peace, security, and economic development of 
        Sudan depend in large part on addressing the problems 
        associated with the traditional north- south division 
        in that country through political rather than military 
        means.
    [(b) United States Policy.--It is, therefore, the policy of 
the United States that the provision of security assistance to 
Sudan shall be based on the expectation that the Government of 
Sudan will make progress toward reaching a political settlement 
with all parties to the conflict in the south of Sudan.

[SEC. 807. ELECTIONS IN LIBERIA.

    [In recognition of the special relationship that the United 
States has with Liberia and of the wide variety of interests 
that the United States has in Liberia, security assistance for 
Liberia for fiscal years 1986 and 1987 is based on the 
expectation of a successful completion of free and fair 
elections, on a multiparty basis, in October 1985 as proposed 
by the Government of Liberia and on a return to full civilian, 
constitutional rule as a consequence of those elections.

[SEC. 808. WESTERN SAHARA.

    [(a) United States Policy.--The policy of the United States 
shall be to support a negotiated political solution to the 
conflict in the Western Sahara taking into account the 
principle of self-determination as outlined in the 1981 Nairobi 
resolution and to encourage all parties to the conflict to 
reach a peaceful internationally recognized settlement. As part 
of this policy, the United States should carefully consider 
each type of military assistance it furnishes to any of the 
parties to the conflict and should seek to insure that the 
furnishing of such military assistance is consistent with 
United States policy which seeks a negotiated settlement.
    [(b) Further Statement of Policy.--It is the further policy 
of the United States to support Morocco's legitimate defense 
needs and to discourage aggression by any country in North 
Africa against another.]

           *       *       *       *       *       *       *


[SEC. 812. FAILURE OF THE ETHIOPIAN GOVERNMENT TO RESPONSIBLY 
                    AMELIORATE FAMINE CONDITIONS. * * * [REPEALED--
                    1991]

[SEC. 813. ASSISTANCE FOR THE PEOPLE'S REPUBLIC OF MOZAMBIQUE.

    [(a) Economic Assistance.--The funds authorized to be 
appropriated for fiscal years 1986 and 1987 to carry out 
chapter 1 of part I (relating to development assistance) and 
chapter 4 of part II (relating to the economic support fund) of 
the Foreign Assistance Act of 1961 that are allocated for 
bilateral assistance to the People's Republic of Mozambique 
shall be used solely for assistance to the private sector of 
the economy of Mozambique to the maximum extent practicable. To 
the maximum extent practicable, such funds shall be channeled 
to non-governmental entities in Mozambique.
    [(b) Military Assistance.--(1) None of the funds authorized 
to be appropriated for fiscal year 1986 or fiscal year 1987 to 
carry out chapter 2 of part II (relating to grant military 
assistance) or chapter 5 of part II (relating to international 
military education and training) of the Foreign Assistance Act 
of 1961 shall be used to provide assistance to the People's 
Republic of Mozambique unless the President makes the 
certification described in paragraph (2) before providing any 
such assistance for that fiscal year.
    [(2) The certification required by paragraph (1) is a 
certification by the President to the Speaker of the House of 
Representatives and to the chairman of the Committee on Foreign 
Relations of the Senate that the Government of the People's 
Republic of Mozambique--
          [(A) is making a concerted and significant effort to 
        comply with internationally recognized human rights;
          [(B) is making continued progress in implementing 
        essential economic and political reforms, including the 
        restoration of private property and respect for the 
        right to engage in free enterprise in all sectors of 
        the economy;
          [(C) has implemented a plan by September 30, 1986, to 
        reduce the number of foreign military personnel to no 
        more than 55; and
          [(D)(i) in the case of a certification with respect 
        to assistance for fiscal year 1986, is committed to 
        holding free elections at a date no later than 
        September 30, 1986, and to that end has demonstrated 
        its good faith efforts to begin discussions with all 
        major political factions in Mozambique which have 
        declared their willingness to find and implement an 
        equitable political solution to the conflict, with such 
        solution to involve a commitment to--
                  [(I) the electoral process with 
                internationally recognized observers; and
                  [(II) the elimination of all restrictions on 
                the formation and activities of opposition 
                political parties; and
          [(ii) in the case of a certification with respect to 
        assistance for fiscal year 1987, held free elections by 
        September 30, 1986.]

                             TITLE IX--ASIA

[SEC. 901. THE PHILIPPINES.

    [(a) Democracy in the Philippines.--It is the sense of the 
Congress that the United States should encourage the 
revitalization of democracy in the Philippines. To that end, 
the Congress affirms its intention to grant future aid to the 
Philippines according to the determination of the Congress that 
United States security interests are enhanced and sufficient 
progress is made by the Government of the Philippines in--
          [(1) guaranteeing free, fair, and honest elections in 
        1986 and 1987, or sooner should any such elections 
        occur;
          [(2) ensuring the full, fair, and open prosecution of 
        those responsible for the murder of Benigno Aquino, 
        including those involved in the cover-up;
          [(3) ensuring freedom of speech and freedom of the 
        press, and unrestricted access to the media on the part 
        of all candidates for public office in the local and 
        provincial elections of 1986 and the Presidential 
        election of 1987;
          [(4) establishing the writ of habeas corpus and the 
        termination of the Presidential Detention Action and 
        all other forms of detention without charge or trial;
          [(5) releasing all individuals detained or imprisoned 
        for peaceful political activities;
          [(6) making substantial progress in terminating 
        extrajudicial killings by the Philippine military and 
        security forces and the prosecution of those 
        responsible for such killings in the past;
          [(7) implementing structural economic reforms and a 
        strengthening of the private sector, including 
        elimination of corruption and monopolies; and
          [(8) enhancing the professional capability of the 
        Philippine armed forces and security forces (including 
        the Philippine Constabulary and the Civilian House 
        Defense Forces).
    [(b) Primary Purpose of United States Assistance.--The 
Congress finds and declares that the primary purpose of United 
States assistance to the Philippines should be to maintain and 
foster friendly relations between the people of the Philippines 
and the people of the United States and to encourage the 
restoration of internal security, both of which goals can be 
best served by the achievement of an open and stable democracy.
    [(c) Congressional Oversight.--The Congress, in determining 
future aid levels for the Philippines, will take into account 
not only our military bases agreement with that country, but 
also the extent to which the objectives and goals specified in 
subsections (a) and (b) have been implemented. The Congress may 
defer assistance for the Philippines under both chapter 2 of 
part II of the Foreign Assistance Act of 1961 and the Arms 
Export Control Act if--
          [(1) significant progress is not achieved with 
        respect to the objectives and goals specified in 
        subsections (a) and (b), or
          [(2) the Congress finds that such assistance is used 
        to violate the internationally recognized human rights 
        of the Filipino people.
    [(d) * * * [Repealed--1986]
    [(e) Nonlethal Assistance.--Assistance provided for the 
Philippines for fiscal year 1986 under the Arms Export Control 
Act or under chapter 2, of part II of the Foreign Assistance 
Act of 1961 shall be nonlethal in character.]

           *       *       *       *       *       *       *


[SEC. 903. DISADVANTAGED CHILDREN IN ASIA.

    [(a) * * *
    [(b) Additional Steps To Help Amerasian Children.--The 
Congress finds that Amerasian children are currently the object 
of discrimination in the countries in Asia where they now 
reside. Therefore, the President shall report to the Congress 
on the quality of life of these children and on what additional 
steps, such as facilitating adoptions, the United States could 
take to enhance the lives of these children.

[SEC. 904. ASSISTANCE FOR AFGHANISTAN.

    [(a) Authorization.--The President may make available funds 
authorized to be appropriated to carry out chapter 4 of part II 
of the Foreign Assistance Act of 1961 (relating to the economic 
support fund) for the provision of food, medicine, or other 
humanitarian assistance to the Afghan people, notwithstanding 
any other provision of law.
    [(b) Earmarking of Funds.--Each fiscal year, not less than 
$15,000,000 of the aggregate amount of funds available to carry 
out chapter 4 of part II of the Foreign Assistance Act of 1961 
shall be available only for humanitarian assistance to the 
Afghan people pursuant to subsection (a) of this section.
    [(c) Effective Dates.--This section shall take effect on 
the date of enactment of this Act, except that subsection (b) 
shall not apply to fiscal year 1985.

[SEC. 905. ASSISTANCE FOR THE CAMBODIAN PEOPLE.

    [The President may make available to the noncommunist 
resistance forces in Cambodia up to $5,000,000 for fiscal year 
1986, and up to $5,000,000 for fiscal year 1987, of the funds 
authorized to be appropriated to carry out chapter 2 (relating 
to grant military assistance) or chapter 4 (relating to the 
economic support fund) of part II of the Foreign Assistance Act 
of 1961, notwithstanding any other provision of law.]

           *       *       *       *       *       *       *


[SEC. 907. POLITICAL SETTLEMENT IN SRI LANKA.

    [(a) Findings.--The Congress finds that--
          [(1) the Government and people of Sri Lanka and the 
        Government and people of the United States share a 
        common devotion to independence, democracy, and human 
        rights;
          [(2) the United States is concerned over the armed 
        clashes between the security forces of the Government 
        of Sri Lanka and some Sri Lankans who seek through 
        violent means, including terrorist attacks, to divide 
        that nation;
          [(3) there have been acts of terrorism committed 
        against members of the Sri Lankan security forces, as 
        well as against civilians, and there have been human 
        rights abuses by members of the security forces against 
        civilians, particularly Tamils, despite the efforts of 
        the Government, which the Congress believes must be 
        intensified, to put an end to those abuses;
          [(4) the differences and grievances in Sri Lanka 
        cannot be resolved through the use of force; and
          [(5) the United States is a proud participant through 
        its economic assistance programs in Sri Lanka's highly 
        regarded development efforts and looks forward to 
        enhanced cooperation and assistance in the context of a 
        political settlement in Sri Lanka leading to the kind 
        of peaceful climate in which additional aid could be 
        effectively utilized.
    [(b) Political Settlement.--It is, therefore, the sense of 
the Congress that--
          [(1) all parties in Sri Lanka, from all communities 
        in and out of government, should renew their efforts to 
        achieve a joint political settlement which meets the 
        legitimate concerns of all the people of Sri Lanka, 
        while preserving the territorial integrity of Sri 
        Lanka; and
          [(2) all parties outside Sri Lanka should do nothing 
        which would impede progress toward such a settlement.

[SEC. 908. UNITED STATES POLICY TOWARD THE REPUBLIC OF KOREA.

    [(a) Findings.--The Congress finds that--
          [(1) the Government of the Republic of Korea has 
        taken several significant and encouraging steps in 
        liberalizing the political system in that country;
          [(2) among the steps which have facilitated a more 
        democratic environment are the release of hundreds of 
        student demonstrators, the lifting of a political ban 
        on more than 300 opposition leaders, and the holding of 
        a vigorously contested election for the National 
        Assembly in which the opposition made substantial 
        gains;
          [(3) despite these steps, the people of the Republic 
        of Korea, who have become increasingly better educated 
        and prosperous as a result of Korea's extraordinarily 
        rapid economic development, have the desire and the 
        capability to participate more fully and effectively in 
        the government of their own country; and
          [(4) while internationally recognized human rights 
        are clearly respected much more in the Republic of 
        Korea than in the Democratic People's Republic of 
        Korea, continued progress toward democratization in the 
        south is in the interests of both the Republic of Korea 
        and the United States, inasmuch as long-term political 
        stability cannot be assured in the absence of further 
        progress towards democratic government.
    [(b) United States Policy.--It is the policy of the United 
States to provide assistance to the Republic of Korea in order 
to help that country defend itself against external aggression. 
It is the hope of the United States that the continuing close 
relations between our two countries, including such assistance, 
will encourage the establishment of a genuinely democratic 
system in the Republic of Korea, in which internationally 
recognized human rights, including freedom of the press, 
freedom of association, and freedom of assembly are observed.

              [TITLE X--FOOD AND AGRICULTURAL ASSISTANCE]

           *       *       *       *       *       *       *


[SEC. 1008. LONG-TERM AGRICULTURAL COMMODITY AGREEMENTS WITH FOOD 
                    DEFICIT COUNTRIES.

    [As part of the United States foreign assistance program, 
the President should explore the possibility of concluding 
long-term agricultural commodity agreements to help stabilize 
and increase the flow of concessional and commercial foodstuffs 
with food deficit countries. The President shall prepare and 
transmit to the Congress a report on his efforts to achieve 
such long-term agreements by June 1, 1986.

                        [TITLE XI--PEACE CORPS]

           *       *       *       *       *       *       *


[SEC. 1103. LIMITATION ON LENGTH OF PEACE CORPS EMPLOYMENT. * * *

[SEC. 1104. PEACE CORPS NATIONAL ADVISORY COUNCIL.]

           *       *       *       *       *       *       *


[TITLE XII--MISCELLANEOUS PROVISIONS RELATING TO FOREIGN ASSISTANCE]

           *       *       *       *       *       *       *


[SEC. 1205. REPORTS ON ECONOMIC CONDITIONS IN CERTAIN COUNTRIES.

    [(a) External Debt Burden of Certain Countries Receiving 
United States Assistance.--The Congress finds that the 
Governments of Egypt, Israel, Turkey, and Portugal each have an 
enormous external debt burden which may be made more difficult 
by virtue of financing provided for those governments under 
various United States assistance programs.
    [(b) Annual Reports on Economic Conditions.--In order to 
assist the Congress in examining United States assistance for 
those countries, the President shall report to the Speaker of 
the House of Representatives and to the chairman of the 
Committee on Foreign Relations of the Senate, not later than 
January 15 of each year, regarding economic conditions 
prevailing in Egypt, Israel, Turkey, and Portugal which may 
affect their respective ability to meet their international 
debt obligations and to stabilize their economies.

[SEC. 1206. EGYPTIAN-ISRAELI RELATIONS.

    [The Congress notes the recent effort of Egypt to move the 
peace process forward. However, the Congress continues to be 
concerned about the less than normal relations between Egypt 
and Israel. It is the sense of the Congress that all United 
States foreign assistance to Egypt is provided in the 
expectation that the Egyptian Government will continue in its 
efforts to bring peace to the region and that it will continue 
to support and fulfill the provisions of the Camp David Accords 
and the Egyptian-Israeli Peace Treaty.]

           *       *       *       *       *       *       *


[SEC. 1210. REPORT ON UNITED STATES ASSISTANCE TO COAL EXPORTING 
                    NATIONS.

    [Not later then 30 days after the date of enactment of this 
Act, the President shall submit to the appropriate committees 
of the Congress a report describing the status and terms of, 
and containing all other pertinent information relating to, any 
United States Government assistance which is provided to 
foreign nations that produce or export coal for the purpose of 
financing or assisting in the development of coal production, 
transportation, export, or other coal-related activities or 
operations.]

           *       *       *       *       *       *       *


                  TITLE XIII--MISCELLANEOUS PROVISIONS

[SEC. 1301. EFFECTIVE DATE.

    [Except as otherwise provided in this Act, this Act shall 
take effect on October 1, 1985.]

           *       *       *       *       *       *       *


 The Jordan Supplemental Economic Assistance Authorization Act of 1985

[TITLE IV--AUTHORIZATION OF ECONOMIC SUPPORT FUND ASSISTANCE FOR JORDAN

                              [short title

    [Sec. 401. This title may be cited as the ``Jordan 
Supplemental Economic Assistance Authorization Act of 1985''.

                         [economic support fund

    [Sec. 402. (a)(1) In addition to funds otherwise available 
for such purposes for such fiscal year, there are authorized to 
be appropriated to the President to carry out chapter 4 of part 
II of the Foreign Assistance Act of 1961, $250,000,000 for the 
fiscal year 1985, which amount shall be available only for 
Jordan.
    [(2) Of the funds authorized to be appropriated by 
paragraph (1)--
          [(A) for the fiscal year 1985, $50,000,000 shall be 
        available only for commodity import programs and 
        $30,000,000 shall be available only for project 
        assistance;
          [(B) for the fiscal year 1986, $50,000,000 shall be 
        available only for commodity import programs and 
        $30,000,000 shall be available only for project 
        assistance; and
          [(C) for the fiscal year 1987, $60,000,000 shall be 
        available only for commodity import programs and 
        $30,000,000 shall be available only for project 
        assistance.
    [(b) Amounts appropriated to carry out this section are 
authorized to remain available until September 30, 1987.

                                [policy

    [Sec. 403. (a) Sense of Congress.--It is the sense of 
Congress that no foreign military sales financing authorized by 
this Act may be used to finance the procurement by Jordan of 
United States advanced aircraft, new air defense weapons 
systems, or other new advanced military weapons systems, and no 
notification may be made pursuant to section 36(b) of the Arms 
Export Control Act with respect to a proposed sale to Jordan of 
United States advanced aircraft, new air defense systems, or 
other new advanced military weapons systems, unless Jordan is 
publicly committed to the recognition of Israel and to 
negotiate promptly and directly with Israel under the basic 
tenets of United Nations Security Council Resolutions 242 and 
338.
    [(b) Certification.--Any notification made pursuant to 
section 36(b) of the Arms Export Control Act with respect to a 
proposed sale to Jordan of United States advanced aircraft, new 
air defense systems or other new advanced military weapons, 
must be accompanied by a Presidential certification of Jordan's 
public commitment to the recognition of Israel and to negotiate 
promptly and directly with Israel under the basic tenets of 
United Nations Security Council Resolutions 242 and 338.]

             African Famine Relief and Recovery Act of 1985

[SECTION 1. SHORT TITLE.

    [This Act may be cited as the ``African Famine Relief and 
Recovery Act of 1985''.]

           *       *       *       *       *       *       *


[SEC. 3. MIGRATION AND REFUGEE ASSISTANCE.

    [(a) Authorization of Appropriations.--In addition to 
amounts otherwise available for such purpose, there are 
authorized to be appropriated to the Department of State for 
``Migration and Refugee Assistance'' for the fiscal year 1985, 
$37,500,000 for assisting refugees and displaced persons in 
Africa.
    [(b) Use of Funds.--
          [(1) Projects for immediate development needs.--Up to 
        54 percent of the funds authorized to be appropriated 
        by this section may be made available to the United 
        Nations Office of Emergency Operations in Africa for 
        projects such as those proposed at the second 
        International Conference on Assistance to Refugees in 
        Africa (ICARA II) to address the immediate development 
        needs created by refugees and displaced persons in 
        Africa.
          [(2) Emergency relief and recovery efforts.--The 
        remaining funds authorized to be appropriated by this 
        section shall be used by the Bureau for Refugee 
        Programs of the Department of State for emergency 
        relief and recovery efforts in Africa.

[SEC. 4. DEPARTMENT OF DEFENSE ASSISTANCE.

    [(a) Special Rule on Reimbursement.--If the Department of 
Defense furnishes goods or services for African supplemental 
famine assistance activities, the Department of Defense shall 
be reimbursed for not more than the costs which it incurs in 
providing those goods or services. These costs do not include 
military pay and allowances, amortization and depreciation, and 
fixed facility costs.
    [(b) Definition of African Supplemental Famine Assistance 
Activities.--For purposes of this section, the term ``African 
supplemental famine assistance activities'' means the provision 
of the following fiscal year 1985 supplemental assistance for 
Africa:
          [(1) Famine assistance pursuant to section 2 of this 
        Act.
          [(2) Migration and refugee assistance pursuant to 
        section 3 of this Act.
          [(3) Assistance pursuant to supplemental 
        appropriations for title II of the Agricultural Trade 
        Development and Assistance Act of 1954 (7 U.S.C. 1721-
        1726).
          [(4) Assistance with funds appropriated during fiscal 
        year 1985 for the Emergency Refugee and Migration 
        Assistance Fund (22 U.S.C. 2601(c)).

[SEC. 5. GENERAL PROVISIONS RELATING TO ASSISTANCE.

    [(a) Countries To Be Assisted.--Amounts authorized to be 
appropriated by this Act shall be available only for assistance 
in those countries in Africa which have suffered during 
calendar years 1984 and 1985 from exceptional food supply 
problems due to drought and other calamities.
    [(b) ``Hickenlooper Amendment''.--Assistance may be 
provided with funds authorized to be appropriated by this Act 
without regard to section 620(e)(1) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2370(e)(1)).
    [(c) Ensuring That Assistance Reaches Intended 
Recipients.--The President shall ensure that adequate 
procedures have been established so that assistance pursuant to 
this Act is provided to the famine victims for whom it is 
intended.

[SEC. 6. REPORTS ON AFRICAN FAMINE ASSISTANCE.

    [(a) Report on United States Contribution to Meet Emergency 
Needs.--
          [(1) Requirement for report.--Not later than June 30, 
        1985, the President shall report to the Congress with 
        respect to the United States contribution to meet 
        emergency needs, including food needs, for African 
        famine assistance.
          [(2) Information to be included in report.--The 
        report required by this subsection shall describe--
                  [(A) the emergency needs, including food 
                needs, for African famine assistance that are 
                identified by the President's Interagency Task 
                Force on the African Food Emergency, private 
                and voluntary organizations active in famine 
                relief, the United Nations Office for Emergency 
                Operations in Africa, the United Nations Food 
                and Agriculture Organization, the World Food 
                Program, and such other organizations as the 
                President considers appropriate; and
                  [(B) the projected fiscal year 1985 
                contribution by the United States Government to 
                meet an appropriate share of those needs 
                referred to in subparagraph (A).
    [(b) Report on Assistance Provided Pursuant to This Act.--
          [(1) Requirement for report.--Not later than 
        September 30, 1985, the President shall report to the 
        Congress on the assistance provided pursuant to this 
        Act.
          [(2) Information to be included in report.--
                  [(A) Use of funds.--The report pursuant to 
                this subsection shall describe the uses, by the 
                Agency for International Development and by the 
                Department of State, of the funds authorized to 
                be appropriated by this Act, including--
                          [(i) a description of each project or 
                        program supported with any of those 
                        funds, and the amount allocated to it;
                          [(ii) the identity of each private 
                        and voluntary organization or 
                        international organization receiving 
                        any of those funds, and the amount of 
                        funds each received;
                          [(iii) the amount of those funds used 
                        for assistance to each country;
                          [(iv) the amount of those funds, if 
                        any, which will not have been obligated 
                        as of September 30, 1985; and
                          [(v) a list of any projects or 
                        programs supported with those funds 
                        which are not expected to be completed 
                        as of December 31, 1985.]

 The International Security and Development Assistance Authorizations 
                              Act of 1983

    [Sec. 101. (a) * * *
    [(b)(1) * * *
    [(2) Section 101(b)(2) of this joint resolution may be 
cited as the ``International Security and Development 
Assistance Authorizations Act of 1983''.

                   [authorizations of appropriations

    [There is authorized to be appropriated to the President 
$1,315,000,000 for the fiscal year 1984 to carry out section 23 
of the Arms Export Control Act. The total principal amount of 
loans guaranteed under section 24(a) of the Arms Export Control 
Act shall not exceed $4,446,500,000 for the fiscal year 1984.
    [There are authorized to be appropriated for the fiscal 
year 1984 the following amounts to carry out the following 
provisions of the Foreign Assistance Act of 1961:
          [(1) $725,213,000 to carry out section 103.
          [(2) $244,600,000 to carry out section 104(b).
          [(3) $133,400,000 to carry out section 104(c).
          [(4) $121,477,000 to carry out section 105.
          [(5) $160,000,000 to carry out section 106.
          [(6) $103,000,000 to carry out section 121.
          [(7) $30,000,000 to carry out section 214.
          [(8) $266,214,000 to carry out chapter 3 of part I.
          [(9) $47,000,000 to carry out section 481.
          [(10) $25,000,000 to carry out section 491.
          [(11) $3,074,000,000 to carry out chapter 4 of part 
        II.
          [(12) $639,700,000 to carry out section 503.
          [(13) $56,452,000 to carry out chapter 5 of part II.
          [(14) $46,200,000 to carry out chapter 6 of part II.
          [(15) $22,000,000 to carry out section 661.
          [(16) $370,000,000 to carry out section 667.
    [There is authorized to be appropriated to the President to 
carry out the African Development Foundation Act $3,000,000 for 
the fiscal year 1984.
    [There is authorized to be appropriated to carry out the 
Peace Corps Act $116,000,000 of the fiscal year 1984.
    [Section 10 of Public Law 91-672 and section 15(a) of the 
State Department Basic Authorities Act of 1956 shall not apply 
with respect to funds appropriated for ``Migration and Refugee 
Assistance'' or for the Inter-American Foundation by the joint 
resolution of October 1, 1983 (Public Law 98-107), as amended 
by this joint resolution.

[assistance for israel and egypt]

           *       *       *       *       *       *       *


           [conditions on military assistance for el salvador

    [Not more than 70 percent of the amount available for the 
fiscal year 1984 for military assistance for El Salvador under 
chapters 2 and 5 of part II of the Foreign Assistance Act of 
1961 and under the Arms Export Control Act may be expended 
until--
          [(1) Salvadoran authorities have substantially 
        concluded all investigative actions in the case of the 
        National Guardsmen charged with murder in the deaths of 
        the four United States churchwomen in December 1980 
        that were set forth in communications from the 
        Department of State (including the letters dated July 8 
        and September 23, 1983); and
          [(2) Salvadoran authorities have brought the accused 
        to trial and have obtained a verdict.
    Not more than 90 percent of the amount made available for 
the fiscal year 1984 for military assistance for El Salvador 
under chapters 2 and 5 of part II of the Foreign Assistance Act 
of 1961 and under the Arms Export Control Act may be expended 
until the President has determined and certified to the 
Congress that--
          [(1) the Government of El Salvador has not taken any 
        action which would alter, suspend, or terminate the 
        land reform program for phase I or phase III 
        promulgated under Decree 154 (dated March 5, 1980) or 
        Decree 207 (dated April 28, 1980) in a manner 
        detrimental to the rights of the beneficiaries or the 
        potential beneficiaries under those decrees; and
          [(2) the Government of El Salvador continues to make 
        documented progress on implementing the land reform 
        program.

                          [minority set-aside

    [Except to the extent that the Administrator of the Agency 
for International Development determines otherwise, not less 
than 10 percent of the aggregate of the funds made available 
for the fiscal year 1984 to carry out chapter 1 of part I of 
the Foreign Assistance Act of 1961 shall be made available only 
for activities of economically and socially disadvantaged 
enterprises (within the meaning of section 133(c)(5) of the 
International Development and Food Assistance Act of 1977), 
historically Black colleges and universities, and private and 
voluntary organizations which are controlled by individuals who 
are Black Americans, Hispanic Americans, or Native Americans, 
or who are economically and socially disadvantaged (within the 
meaning of section 133(c)(5) (B) and (C) of the International 
Development and Food Assistance Act of 1977). For purposes of 
this section, economically and socially disadvantaged 
individuals shall be deemed to include women.

                       [minority resource center

    [None of the funds authorized to be appropriated for the 
fiscal year 1984 to carry out the Foreign Assistance Act of 
1961 may be used to eliminate the Minority Resource Center as a 
separate and distinct entity within the Agency for 
International Development, including implementation of a 
consolidation of the Minority Resource Center with the Office 
of Small and Disadvantaged Business Utilization under section 
133(c)(8) of the International Development and Food Assistance 
Act of 1977.

  [promoting the development of the haitian people and providing for 
                     orderly emigration from haiti

    [It is the sense of the Congress that for the fiscal year 
1984 up to $24,000,000 of the funds available to carry out 
chapter 1 of part I of the Foreign Assistance Act of 1961, and 
up to $10,000,000 of the funds available to carry out chapter 4 
of part II of such Act, should be made available for 
development assistance for Haiti, subject to the limitation 
contained in the third paragraph of this heading.
    [To the maximum extent practicable, assistance for Haiti 
under chapter 1 of part I and under chapter 4 of part II of the 
Foreign Assistance Act of 1961 should be provided through 
private and voluntary organizations.
    [Funds available for fiscal year 1984 to carry out chapter 
1 of part I or chapter 2, 4, or 5 of part II of the Foreign 
Assistance Act of 1961 may be obligated for Haiti, and credits 
may be extended and guarantees may be issued under the Arms 
Export Control Act for Haiti, only if the President determines 
that the Government of Haiti--
          [(1) is continuing to cooperate with the United 
        States in halting illegal emigration to the United 
        States from Haiti;
          [(2) is cooperating fully in implementing United 
        States development, food, and other economic assistance 
        programs in Haiti (including programs for prior fiscal 
        years); and
          [(3) is making a concerted and significant effort to 
        improve the human rights situation in Haiti by 
        implementing the political reforms which are essential 
        to the development of democracy in Haiti, including the 
        establishment of political parties, free elections, and 
        freedom of the press.
    [Six months after the date of enactment of this section, 
the President shall report to the Congress on the extent to 
which the actions of the Government of Haiti are consistent 
with each numbered provision contained in the third paragraph 
of this heading.
    [Notwithstanding the limitations of section 660 of the 
Foreign Assistance Act of 1961, funds made available under such 
Act for the fiscal year 1984 may be used for programs with 
Haiti, which shall be consistent with prevailing United States 
refugee policies, to assist in halting significant illegal 
emigration from Haiti to the United States.

                     [private sector revolving fund

    [The amendment contained in section 407 of H.R. 2992, as 
reported by the Committee on Foreign Affairs of the House of 
Representatives on May 17, 1983, is hereby enacted.

                   [antiterrorism assistance program

    [The amendments contained in title II of H.R. 2992, as 
reported by the Committee on Foreign Affairs of the House of 
Representatives on May 17, 1983, are hereby enacted, except 
that, for purposes of such enactment, section 575 of the 
Foreign Assistance Act of 1961 shall read as follows:
    [``Sec. 575. Appropriations.--There is authorized to be 
appropriated to the President to carry out this chapter 
$5,000,000 for the fiscal year 1984. Amounts appropriated under 
this section are authorized to remain available until 
expended.''.]

           *       *       *       *       *       *       *


              The Lebanon Emergency Assistance Act of 1983

                              [short title

    [Section 1. This Act may be cited as the ``Lebanon 
Emergency Assistance Act of 1983''.

                         [economic support fund

    [Sec. 2. (a) It is hereby determined that the national 
interests of the United States would be served by the 
authorization and appropriation of additional funds for 
economic assistance for Lebanon in order to promote the 
economic and political stability of that country and to support 
the international effort to strengthen a sovereign and 
independent Lebanon.
    [(b) Accordingly, in addition to amounts otherwise 
authorized to be appropriated for the fiscal year 1983 to carry 
out the provisions of chapter 4 of part II of the Foreign 
Assistance Act of 1961, there are authorized to be appropriated 
$150,000,000 to carry out such provisions with respect to 
Lebanon.
    [(c) Amounts authorized by this section may be appropriated 
in an appropriation Act for any fiscal year (including a 
continuing resolution) and shall continue to be available 
beyond the fiscal year notwithstanding any provision of that 
appropriation Act to the contrary.

                  [military sales and related programs

    [Sec. 3. (a) In order to support the rebuilding of the 
armed forces of Lebanon, the Congress finds that the national 
security interests of the United States would be served by the 
authorization and appropriation of additional funds to provide 
training for the Lebanese armed forces and by the authorization 
of additional foreign military sales guaranties to finance 
procurements by Lebanon of defense articles and defense 
services for its security requirements.
    [(b) In addition to amounts otherwise made available for 
the fiscal year 1983 to carry out the provisions of chapter 5 
of part II of the Foreign Assistance Act of 1961, there are 
authorized to be appropriated for the fiscal year 1983 
$1,000,000 to carry out such provisions with respect to 
Lebanon.
    [(c) In addition to amounts otherwise made available for 
the fiscal year 1983 for loan guaranties under section 24(a) of 
the Arms Export Control Act, $100,000,000 of loan principal are 
authorized to be so guaranteed during such fiscal year for 
Lebanon.

                 [united states armed forces in lebanon

    [Sec. 4. (a) The President shall obtain statutory 
authorization from the Congress with respect to any substantial 
expansion in the number or role in Lebanon of United States 
Armed Forces, including any introduction of United States Armed 
Forces into Lebanon in conjunction with agreements providing 
for the withdrawal of all foreign troops from Lebanon and for 
the creation of a new multinational peace-keeping force in 
Lebanon.
    (b) Nothing in this section is intended to modify, limit, 
or suspend any of the standards and procedures prescribed by 
the War Powers Resolution of 1973.]

   The International Security and Development Cooperation Act of 1981

                              short title

    Section 1. This Act may be cited as the ``International 
Security and Development Cooperation Act of 1981''.

             [TITLE I--MILITARY SALES AND RELATED PROGRAMS]

           *       *       *       *       *       *       *


                   [special defense acquisition fund

    [Sec. 108. (a) * * *
    [(b) Section 138 of title 10, United States Code, is 
amended by adding immediately following subsection (f) the 
following new subsection:
    [``(g) The size of the Special Defense Acquisition Fund 
established pursuant to chapter 5 of the Arms Export Control 
Act may not exceed $300,000,000 in fiscal year 1982, may not 
exceed $600,000,000 in fiscal year 1983, and may not exceed 
$900,000,000 in fiscal year 1984 or any fiscal year 
thereafter.''.]

           *       *       *       *       *       *       *


                   [TITLE II--ECONOMIC SUPPORT FUND]

           *       *       *       *       *       *       *


  [acquisition of agricultural commodities and related products under 
                       commodity import programs

    [Sec. 203. The Congress directs the President to allocate 
at least 15 percent of the funds which are made available each 
fiscal year under this title for commodity import programs for 
use in financing the purchase of agricultural commodities and 
agricultural related products which are of United States-
origin.

                   [TITLE III--DEVELOPMENT ASSISTANCE

             [agriculture, rural development, and nutrition

    [Sec. 301. (a) * * *
    [(b)(1) It is the sense of the Congress that the United 
States should strongly support the efforts of developing 
countries to improve infant feeding practices, in particular 
through the promotion of breast feeding. As a demonstration of 
that support, the President is authorized to use up to 
$5,000,000 of the funds made available for the fiscal year 1982 
to carry out the purposes of sections 103 and 104(c) of the 
Foreign Assistance Act of 1961 in order to assist developing 
countries establish or improve programs to encourage improved 
infant feeding practices. In carrying out this paragraph, the 
Agency for International Development should provide funds for 
necessary research to obtain better information on the precise 
nature and magnitude of problems relating to infant feeding 
practices, including the use of infant formula, in developing 
countries.
    [(2) The President shall, as part of the congressional 
presentation documentation for the fiscal years 1983 and 1984, 
include information relevant to the implementation of this 
subsection, including--
          [(A) a description of actions taken by the Agency for 
        International Development to promote breast feeding and 
        to improve supplemental infant feeding practices in 
        developing countries through funds made available in 
        this subsection and through its regular programs in the 
        fields of health, nutrition, and population activities;
          [(B) a summary of the results of studies authorized 
        by this subsection on the nature and magnitude of 
        problems in developing countries related to infant 
        feeding practices; and
          [(C) a summary of reports by member countries of the 
        World Health Organization on their actions to implement 
        the International Code of Marketing of Breast Milk 
        Substitutes.]

           *       *       *       *       *       *       *


                  [TITLE IV--FOOD FOR PEACE PROGRAMS]

           *       *       *       *       *       *       *


 [self-help measures to increase agricultural production; verification 
                        of self-help provisions

    [Sec. 403. (a) * * *
    [(b) * * *
    [(c) The amendments made by this section shall not be 
effective if the Agriculture and Food Act of 1981 is enacted 
(either before or after the enactment of this Act) and contains 
the same amendments.]

           *       *       *       *       *       *       *


                  [TITLE V--OTHER ASSISTANCE PROGRAMS]

           *       *       *       *       *       *       *


                    [international narcotics control

    [Sec. 502. (a)(1) * * *
    [(2) Assistance provided from funds appropriated, before 
the enactment of this Act, to carry out section 481 of the 
Foreign Assistance Act of 1961 may be made available for 
purposes prohibited by subsection (d) of such section as in 
effect immediately before the enactment of this subsection.
    [(3) Funds appropriated for the fiscal year 1980 to carry 
out section 481 of the Foreign Assistance Act of 1961 which 
were obligated for assistance for the Republic of Colombia may 
be used for purposes other than those set forth in section 
482(a)(2) of that Act as in effect immediately before the 
enactment of the International Security and Development 
Cooperation Act of 1980.
    [(4) Paragraphs (2) and (3) of this subsection shall apply 
only to the extent provided in advance in an appropriations 
Act. For such purpose, the funds described in those paragraphs 
are authorized to be made available for the purposes specified 
in those paragraphs.]

           *       *       *       *       *       *       *


                         [TITLE VI--PEACE CORPS

[establishment as an independent agency]

           *       *       *       *       *       *       *


 [restoration of certain authorities formerly contained in the foreign 
                              service act

    [Sec. 604. (a) * * *
    [(b) * * *
    [(c) * * *

           *       *       *       *       *       *       *


                  [TITLE VII--MISCELLANEOUS PROVISIONS]

           *       *       *       *       *       *       *


                           [inspector general

    [Sec. 705. * * *

           *       *       *       *       *       *       *


         [emergency humanitarian help for the people of poland

    [Sec. 708. (a) The people of Poland, with whom the people 
of the United States have a longstanding friendship, now face 
serious domestic food shortages which will be worsened by 
large-scale loss of their livestock this winter if feed 
supplies do not arrive quickly. Therefore, the President is 
urged, for urgent humanitarian reasons, to use existing 
authorities promptly in order to provide to the people of 
Poland, under as favorable terms as possible, feed grains from 
Commodity Credit Corporation stocks or other appropriate 
commodities.
    [(b) For the longer term, the President is encouraged to 
pursue discussions with other Western countries about a 
multilateral effort to help the people of Poland achieve self-
sustaining economic recovery in the years ahead.
    [(c) * * *]

           *       *       *       *       *       *       *


                  [findings regarding global security

    [Sec. 710. (a) The Congress finds that the security of the 
United States and other countries is increasingly affected by a 
broad range of global problems including shortages or potential 
shortages of food, oil, water, wood, and other basic mineral 
and natural resources; desperate poverty; sickness; population 
pressures; environmental deterioration, including soil erosion 
and water pollution; and large-scale and destabilizing refugee 
problems.
    [(b) The Congress finds that hunger, disease, and extreme 
poverty are among the most critical of these global problems. 
As ever greater numbers of people perceive the disparity 
between their own continuing deprivation and the prosperity of 
others, and judge their predicament to be neither just nor 
inevitable, it becomes increasingly likely that there will be 
unrest and violence with consequent disruption of the flow of 
essential materials, adverse effects on the world economy, 
decreased likelihood of cooperative efforts toward meeting the 
other critical problems threatening national and global 
security, and increased likelihood of confrontation between 
nations which possess nuclear arms.
    [(c) Therefore, the Congress finds that the Nation's 
understanding of global and national security must be broad 
enough to include the problems cited in this section, and that 
adequate protection of the security of the United States 
requires effective action on these global problems, and in 
particular on the problems of hunger, disease, and extreme 
poverty.

                     [world food security reserves

    [Sec. 711. (a) The Congress finds that--
          [(1) the Congress recently passed and the President 
        signed into law an Act which provides for establishment 
        of a United States food security reserve of up to four 
        million metric tons of wheat to be used for emergency 
        food assistance;
          [(2) the food import needs of developing countries 
        will increase over the next ten years; and
          [(3) other grain exporting countries could take 
        additional steps to assure continuity of food 
        assistance during food crisis years.
    [(b) The President shall encourage other grain exporting 
countries to establish their own food security reserves or take 
other measures that complement the United States food security 
reserve.
    [(c) The President shall report to the Speaker of the House 
of Representatives and the Committee on Foreign Relations of 
the Senate within one year after the enactment of this Act on 
the actions he has taken and the response of other countries to 
these proposals.

       [findings and declaration of policy regarding world hunger

    [Sec. 712. The Congress, affirming the value of human life, 
finds and declares that the elimination of hunger and its 
causes is of fundamental moral significance and, further, that 
it is in the political, economic, and security interests of the 
United States. Therefore, the Congress declares that the 
elimination of hunger and its causes shall be a primary 
objective of United States relations with the developing 
countries.

         [reaffirmation of support for human rights provisions

    [Sec. 713. (a) The Congress reaffirms its support for the 
various statutory provisions which have been enacted in order 
to promote internationally recognized human rights.
    [(b) It is the sense of the Congress that a strong 
commitment to the defense of human rights should continue to be 
a central feature of United States foreign policy.]

           *       *       *       *       *       *       *


                                [lebanon

    [Sec. 715. It is the sense of the Congress that the 
Government of the United States should continue to support 
diplomatic efforts to resolve the current crisis in Lebanon, 
and to pursue a comprehensive and coordinated policy in Lebanon 
guided by the following principles:
          [(1) maintenance of an effective cease-fire 
        throughout Lebanon;
          [(2) resolution of the issue of the Syrian missiles 
        deployed in Lebanon;
          [(3) freedom, security, and opportunity for the 
        Christian and all other Lebanese communities, including 
        the Moslem, Druze, Armenian, and Jewish communities in 
        Lebanon;
          [(4) reaffirmation of the historic United States-
        Lebanon relationship and strengthening the longstanding 
        commitment of the United States to the independence, 
        sovereignty, and territorial integrity of Lebanon, 
        without partition, free from terrorism and violence, 
        and free to determine its future without Soviet or 
        other outside interference;
          [(5) generous international support for relief, 
        rehabilitation, and humanitarian assistance for 
        Lebanon, particularly for those Lebanese citizens who 
        have suffered from the terrorism and violence of recent 
        events;
          [(6) restoration of Lebanon's sovereignty free from 
        outside domination or occupation; and
          [(7) support for a free and open national election.

                   [use of chemical and toxin weapons

    [Sec. 716. (a) The Congress condemns the use of, and the 
provision for use of, chemical agents and toxin weapons against 
the peoples of Laos, Kampuchea, or Afghanistan.
    [(b) It is the sense of the Congress that the President 
should, acting through the Permanent Representative of the 
United States to the United Nations and all other appropriate 
diplomatic agents, seek definite measures to bring to an end 
actions by any party or government in using, and providing for 
use, chemical agents or toxin weapons against the peoples of 
Laos, Kampuchea, and Afghanistan, in violation of the spirit 
and the provisions of--
          [(1) the Convention on the Prohibition of the 
        Development, Production and Stockpiling of 
        Bacteriological (Biological) and Toxin Weapons and on 
        Their Destruction (done at Washington, London, and 
        Moscow on April 10, 1972);
          [(2) the Protocol for the Prohibition of the Use in 
        War of Asphyxiating, Poisonous or Other Gases, and of 
        Bacteriological Methods of Warfare (signed at Geneva on 
        June 17, 1925); and
          [(3) customary international law.
    [(c) It is further the sense of Congress that the President 
should--
          [(1) allocate the highest possible priority to the 
        development of further evidence clarifying the nature 
        and origins of the chemical agents and toxin weapons 
        being used against the peoples of Laos, Kampuchea, and 
        Afghanistan; and
          [(2) vigorously seek a satisfactory explanation from 
        the Government of the Soviet Union regarding the strong 
        circumstantial and presumptive evidence of its role in 
        the use, or provision for use, of such weapons.
    [(d) The Congress reiterates the concern expressed in House 
Resolution 644 (96th Congress), adopted by the House of 
Representatives on May 19, 1980, regarding the outbreak of 
pulmonary anthrax near Sverdlosk on April 3, 1979, and 
expresses its disappointment that the Soviet Union has failed 
adequately to respond to requests for data explaining this 
incident as provided in the Convention on the Prohibition of 
the Development, Production and Stockpiling of Bacteriological 
(Biological) and Toxin Weapons and on Their Destruction.
    [(e) It is further the sense of Congress that the 
negotiation of a treaty prohibiting the development, 
production, and stockpiling of chemical weapons, with reliable 
verification provisions, should be given a high priority by the 
United States Government and by all foreign governments.

              [financial obligations to the united nations

    [Sec. 717. (a) The Congress finds and declares that--
          [(1) the financing of the United Nations is the 
        collective responsibility of all member nations;
          [(2) the International Court of Justice has 
        determined that the expenses of the United Nations 
        incurred in its peacekeeping operations are properly 
        included as a part of the regular expenses of the 
        United Nations; and
          [(3) peacekeeping operations are vital to the mission 
        of the United Nations and must be adequately financed 
        if such operations are to continue.
    [(b) It is the sense of the Congress that the President, 
acting through the Permanent Representative of the United 
States to the United Nations, should undertake appropriate 
diplomatic initiatives to ensure that members of the United 
Nations make payments of all their outstanding financial 
obligations to the United Nations, including their assessments 
with respect to the peacekeeping operations of the United 
Nations.

   [condemnation of libya for its support of international terrorist 
                               movements

    [Sec. 718. (a) The Congress condemns the Libyan Government 
for its support of international terrorist movements, its 
efforts to obstruct positive movement toward the peaceful 
resolution of problems in the Middle East region, and its 
actions to destabilize and control governments of neighboring 
states in Africa.
    [(b) The Congress believes that the President should 
conduct an immediate review of concrete steps the United States 
could take, individually and in concert with its allies, to 
bring economic and political pressure on Libya to cease such 
activities, and should submit a report on that review to the 
Congress within one hundred and eighty days after the date of 
enactment of this Act. Such a review should include the 
possibility of tariffs on or prohibitions against the import of 
crude oil from Libya.

    [united states citizens acting in the service of international 
                               terrorism

    [Sec. 719. (a) It is the sense of the Congress that the 
spread of international terrorism poses a grave and growing 
danger for world peace and for the national security of the 
United States. As a part of its vigorous opposition to the 
activities of international terrorist leaders and the increase 
of international terrorism, the United States should take all 
steps necessary to ensure that no United States citizen is 
acting in the service of terrorism or of the proponents of 
terrorism.
    [(b) Not later than six months after the enactment of this 
Act, the President shall submit to the Speaker of the House of 
Representatives and the chairman of the Committee on Foreign 
Relations of the Senate a report which includes--
          [(1) a description of all legislation, currently in 
        force, and of all administrative remedies, presently 
        available, which can be employed to prevent the 
        involvement, service, or participation by United States 
        citizens in activities in support of international 
        terrorism or terrorist leaders;
          [(2) an assessment of the adequacy of such 
        legislation and remedies, and of the enforcement 
        resources available to carry out such measures, to 
        prevent the involvement, service, or participation by 
        United States citizens in activities in support of 
        international terrorism or terrorist leaders; and
          [(3) a description of available legislative and 
        administrative alternatives, together with an 
        assessment of their potential impact and effectiveness, 
        which could be enacted or employed to put an end to the 
        participation of United States citizens in activities 
        in support of international terrorism or terrorist 
        leaders.

                         [nonaligned countries

    [Sec. 720. (a) In considering whether to provide 
assistance, make sales, extend credits, or guarantee loans 
under the provisions of the Foreign Assistance Act of 1961, as 
amended, or the Arms Export Control Act, to any country 
represented at the Meeting of Ministers of Foreign Affairs and 
Heads of Delegations of the Non-Aligned Countries to the 36th 
General Session of the General Assembly of the United Nations 
on September 25 and 28, 1981, the President shall take into 
account whether such country has dissociated itself from the 
communique issued following the meeting.
    [(b) Within thirty days after the date of enactment of this 
section, the President shall submit a report to the Speaker of 
the House of Representatives and the Committee on Foreign 
Relations of the Senate on the countries which have dissociated 
themselves from the nonaligned countries communique and on 
their methods of dissociation.

  [promoting the development of the haitian people and providing for 
                     orderly emigration from haiti

    [Sec. 721. (a)(1) It is the sense of the Congress that up 
to $15,000,000 of the funds available for the fiscal year 1982 
to carry out chapter 1 of part I of the Foreign Assistance Act 
of 1961 should be made available for development assistance for 
Haiti, subject to the limitation in subsection (b) of this 
section.
    [(2) To the maximum extent practicable, assistance for 
Haiti for the fiscal year 1982 under chapter 1 of part I of the 
Foreign Assistance Act of 1961 should be provided through 
private and voluntary organizations.
    [(b) Funds available for the fiscal year 1982 to carry out 
chapter 1 of part I or chapter 2 or chapter 5 of part II of the 
Foreign Assistance Act of 1961 may be expended for Haiti, and 
credits and guarantees extended for the fiscal year 1982 under 
the Arms Export Control Act may be approved for use for Haiti, 
only if the President determines that the Government of Haiti--
          [(1) is cooperating with the United States in halting 
        illegal emigration from Haiti:
          [(2) is not aiding, abetting, or otherwise supporting 
        illegal emigration from Haiti;
          [(3) has provided assurances that it will cooperate 
        fully in implementing United States development 
        assistance programs in Haiti (including programs for 
        prior fiscal years); and
          [(4) is not engaged in a consistent pattern of gross 
        violations of internationally recognized human rights.
    [(c) Six months after the date of enactment of this Act, 
the President shall prepare and transmit to the Congress a 
report on the extent to which the actions of the Government of 
Haiti are consistent with paragraphs (1), (2), (3), and (4) of 
subsection (b) of this section.
    [(d) Notwithstanding the limitations of section 660 of the 
Foreign Assistance Act of 1961, funds made available under such 
Act for the fiscal year 1982 and for the fiscal year 1983 may 
be used for programs with Haiti to assist in halting 
significant illegal emigration from Haiti to the United States.

             [comprehensive analysis of foreign assistance

    [Sec. 722. (a) It is the sense of Congress that at a time 
when major retrenchments and reappraisals are being made in 
domestic programs, it is also logical that, while maintaining 
past international commitments, the magnitude and direction of 
future foreign assistance programs should also be reviewed. As 
part of such a review process, the President is requested to 
provide a comprehensive report to the Congress on his approach 
to foreign assistance. Such report shall include an analysis 
and recommendations on the following issues:
          [(1) the relationship between foreign assistance and 
        defense expenditures as means of conducting foreign 
        policy;
          [(2) the appropriate mix between military and 
        economic assistance;
          [(3) the strengths and weaknesses, and appropriate 
        mix, of bilateral and multilateral assistance programs;
          [(4) the relevance of the basic human needs approach 
        to current aid policy;
          [(5) the performance of other aid donors, and the 
        benefits they derive from their programs;
          [(6) criteria for determining the appropriate size 
        and composition of country programs;
          [(7) the appropriateness of the current mix of grants 
        and loans, and the possibility of combining them with 
        new or existing guarantee, insurance, and export credit 
        programs;
          [(8) specific means to more actively engage the 
        private sector in assistance programs; and
          [(9) the usefulness of current functional categories 
        in constructing the development assistance budget.
    [(b) The Congress requests that the President provide to 
the Congress a preliminary report by March 31, 1982, and a 
final report by June 30, 1982, with respect to the issues 
referred to in subsection (a).

          [external debt burdens of egypt, israel, and turkey

    [Sec. 723. The Congress finds that the Governments of 
Egypt, Israel, and Turkey each have an enormous external debt 
burden which may be made more difficult by virtue of financing 
provided for those governments under various United States 
assistance programs. In order to assist the Congress in 
examining United States assistance for these countries, the 
President shall report to the Speaker of the House of 
Representatives and to the chairman of the Committee on Foreign 
Relations of the Senate, not later than one hundred and twenty 
days after the date of enactment of this Act and not later than 
one year after the date of enactment of this Act, regarding 
economic conditions prevailing in Egypt, Israel, and Turkey 
which may affect their respective ability to meet their 
international debt obligations and to stabilize their 
economies. These reports shall also analyze the impact on 
Egypt's economy of Arab sanctions against Egypt.

                               [nicaragua

    [Sec. 724. (a) In furnishing assistance under this Act to 
the Government of Nicaragua, the President shall take into 
account the extent to which that Government has engaged in 
violations of internationally recognized human rights 
(including the right to organize and operate labor unions free 
from political oppression, the right to freedom of the press, 
and the right to freedom of religion) and shall encourage the 
Government of Nicaragua to respect those rights.
    [(b) In furnishing assistance under this Act to the 
Government of Nicaragua, the President shall take into account 
the extent to which that Government has fulfilled its pledge of 
July 1979 to the member states of the Organization of American 
States--
          [(1) to establish full respect for human rights in 
        Nicaragua in accordance with the United Nations 
        Universal Declaration of the Rights and Duties of Man 
        and the Charter on Human Rights of the Organization of 
        American States;
          [(2) to allow the free movement in Nicaragua of the 
        Inter-American Commission on Human Rights; and
          [(3) to establish the framework for free and 
        democratic elections so that the people of Nicaragua 
        may elect their representatives to city councils, to 
        constitutional assembly, and to Nicaragua's highest-
        ranking authorities, with such framework to include, 
        but not be limited to, the full and complete 
        opportunity for political activity of the Nicaraguan 
        people.
    [(c) Assistance to the Government of Nicaragua under this 
Act shall be terminated if the President determines and reports 
to the Congress that the Government of Nicaragua cooperates 
with or harbors any international terrorist organization or is 
aiding, abetting, or supporting acts of violence or terrorism 
in other countries, or that Soviet, Cuban, or other foreign 
combat military forces are stationed or situated within the 
borders of Nicaragua and the presence of such forces 
constitutes a threat to the national security of the United 
States or to any Latin American ally of the United States.
    [(d) Any agreement between the United States and the 
Government of Nicaragua regarding the use of funds appropriated 
to carry out this Act, which are to be made available in the 
form of loans, shall specifically require that to the maximum 
extent possible such loan funds, and any local currency 
generated in conjunction therewith, shall be used for 
assistance to the private sector. Local currency loan programs 
in Nicaragua shall be monitored and audited in accordance with 
section 624(g) of the Foreign Assistance Act of 1961.
    [(e) For each six-month period in which any funds are 
expended under this Act for Nicaragua, the President shall 
submit to the Speaker of the House of Representatives, and the 
chairman of the Committee on Foreign Relations of the Senate, a 
report accounting fully and in itemized detail for the amounts 
obligated and actually expended in Nicaragua.]

           *       *       *       *       *       *       *


  [repeal of limitations on assistance, sales, and sales credits for 
                                 chile

    [Sec. 726. (a) Section 406 of the International Security 
Assistance and Arms Export Control Act of 1976 (22 U.S.C. 2370 
note) is repealed.
    [(b) Notwithstanding any other provision of law--
          [(1) no assistance may be furnished under chapter 2, 
        4, 5, or 6 of part II of the Foreign Assistance Act of 
        1961 to Chile;
          [(2) no sale of defense articles or services may be 
        made under the Arms Export Control Act to Chile:
          [(3) no credits (including participation in credits) 
        may be extended and no loan may be guaranteed under the 
        Arms Export Control Act with respect to Chile; and
          [(4) no export licenses may be issued under section 
        38 of the Arms Export Control Act to or for the 
        Government of Chile;
[unless and until the President submits to the Speaker of the 
House of Representatives and the chairman of the Committee on 
Foreign Relations of the Senate a detailed report certifying--
                  [(A) that the Government of Chile has made 
                significant progress in complying with 
                internationally recognized principles of human 
                rights;
                  [(B) that the provision of such assistance, 
                articles or services is in the national 
                interest of the United States; and
                  [(C) that the Government of Chile is not 
                aiding or abetting international terrorism and 
                has taken appropriate steps to cooperate to 
                bring to justice by all legal means available 
                in the United States or Chile those indicted by 
                a United States grand jury in connection with 
                the murders of Orlando Letelier and Ronni 
                Moffitt.
    [(c) The prohibition contained in subsection (b) does not 
prohibit the sale, or the licensing for export, of cartridge 
actuated devices, propellant actuated devices, components, 
parts, tools, technical manuals, time compliance to technical 
orders (TCTOs), or TCTO retrofits for aircraft of the F-5E/F, 
A/T-37, or C-130E/H type owned by the Chilean Air Force, so 
long as the items are provided only for purposes of enhancing 
the safety of the aircraft crew.

                      [assistance for el salvador

    [Sec. 727. (a) It is the sense of the Congress that 
assistance furnished to the Government of El Salvador, both 
economic and military, should be used to encourage--
          [(1) full observance of internationally recognized 
        human rights in accordance with sections 116 and 502B 
        of the Foreign Assistance Act of 1961;
          [(2) full respect for all other fundamental human 
        rights, including the right of freedom of speech and of 
        the press, the right to organize and operate free labor 
        unions, and the right to freedom of religion;
          [(3) continued progress in implementing essential 
        economic and political reforms, including land reform 
        and support for the private sector;
          [(4) a complete and timely investigation of the 
        deaths of all United States citizens killed in El 
        Salvador since October 1979;
          [(5) an end to extremist violence and the 
        establishment of a unified command and control of all 
        government security forces in this effort;
          [(6) free, fair, and open elections at the earliest 
        date; and
          [(7) increased professional capability of the 
        Salvadoran Armed Forces in order to establish a 
        peaceful and secure environment in which economic 
        development and reform and the democratic processes can 
        be fully implemented, thereby permitting a phased 
        withdrawal of United States military training and 
        advisory personnel at the earliest possible date.
    [(b) It is the sense of the Congress that the United States 
economic assistance to El Salvador should put emphasis on 
revitalizing the private sector and supporting the free market 
system. The Congress recognizes that the lack of foreign 
exchange to buy imported raw materials and intermediate goods 
is a major impediment to the ability of the Salvadoran economy 
to provide jobs. The Congress also recognizes that the funds 
budgeted for economic assistance are only a fraction of the 
foreign exchange needed, and United States economic aid should 
be used, wherever possible, to stimulate private sector 
lending. Therefore, the Congress urges the President to set 
aside a portion of the economic support funds to provide 
guarantees to private United States banks willing to give 
credits to the Salvadoran private sector.

     [restrictions on military assistance and sales to el salvador

    [Sec. 728. (a)(1) The Congress finds that peaceful and 
democratic development in Central America is in the interest of 
the United States and of the community of American States 
generally, that the recent civil strife in El Salvador has 
caused great human suffering and disruption to the economy of 
that country, and that substantial assistance to El Salvador is 
necessary to help alleviate that suffering and to promote 
economic recovery within a peaceful and democratic process. 
Moreover, the Congress recognizes that the efforts of the 
Government of El Salvador to achieve these goals are affected 
by the activities of forces beyond its control.
    [(2) Taking note of the substantial progress made by the 
Government of El Salvador in land and banking reforms, the 
Congress declares it should be the policy of the United States 
to encourage and support the Government of El Salvador in the 
implementation of these reforms.
    [(3) The United States also welcomes the continuing efforts 
of President Duarte and his supporters in the Government of El 
Salvador to establish greater control over the activities of 
members of the armed forces and government security forces. The 
Congress finds that it is in the interest of the United States 
to cooperate with the Duarte government in putting an end to 
violence in El Salvador by extremist elements among both the 
insurgents and the security forces, and in establishing a 
unified command and control of all government forces.
    [(4) The United States supports the holding of free, fair, 
and open elections in El Salvador at the earliest date. The 
Congress notes the progress being made by the Duarte government 
in this area, as evidenced by the appointment of an electoral 
commission.
    [(b) In fiscal years 1982 and 1983, funds may be obligated 
for assistance for El Salvador under chapter 2 or 5 of part II 
of the Foreign Assistance Act of 1961, letters of offer may be 
issued and credits and guarantees may be extended for El 
Salvador under the Arms Export Control Act, and members of the 
Armed Forces may be assigned or detailed to El Salvador to 
carry out functions under the Foreign Assistance Act of 1961 or 
the Arms Export Control Act, only if not later than thirty days 
after the date of enactment of this Act and every one hundred 
and eighty days thereafter, the President makes a certification 
in accordance with subsection (d).
    [(c) If the President does not make such a certification at 
any of the specified times then the President shall 
immediately--
          [(1) suspend all expenditures of funds and other 
        deliveries of assistance for El Salvador which were 
        obligated under chapters 2 and 5 of part II of the 
        Foreign Assistance Act of 1961 after the date of 
        enactment of this Act;
          [(2) withhold all approvals for use of credits and 
        guarantees for El Salvador which were extended under 
        the Arms Export Control Act after the date of enactment 
        of this Act;
          [(3) suspend all deliveries of defense articles, 
        defense services, and design and construction services 
        to El Salvador which were sold under the Arms Export 
        Control Act after the date of enactment of this Act; 
        and
          [(4) order the prompt withdrawal from El Salvador of 
        all members of the Armed Forces performing defense 
        services, conducting international military education 
        and training activities, or performing management 
        functions under section 515 of the Foreign Assistance 
        Act of 1961.
[Any suspension of assistance pursuant to paragraphs (1) 
through (4) of this subsection shall remain in effect during 
fiscal year 1982 and during fiscal year 1983 until such time as 
the President makes a certification in accordance with 
subsection (d).
    [(d) The certification required by subsection (b) is a 
certification by the President to the Speaker of the House of 
Representatives and to the chairman of the Committee on Foreign 
Relations of the Senate of a determination that the Government 
of El Salvador--
          [(1) is making a concerted and significant effort to 
        comply with internationally recognized human rights;
          [(2) is achieving substantial control over all 
        elements of its own armed forces, so as to bring to an 
        end the indiscriminate torture and murder of Salvadoran 
        citizens by these forces:
          [(3) is making continued progress in implementing 
        essential economic and political reforms, including the 
        land reform program;
          [(4) is committed to the holding of free elections at 
        an early date and to that end has demonstrated its good 
        faith efforts to begin discussions with all major 
        political factions in El Salvador which have declared 
        their willingness to find and implement an equitable 
        political solution to the conflict, with such solution 
        to involve a commitment to--
                  [(A) a renouncement of further military or 
                paramilitary activity; and
                  [(B) the electoral process with 
                internationally recognized observers.
[Each such certification shall discuss fully and completely the 
justification for making each of the determinations required by 
paragraphs (1) through (4).
    [(e) On making the first certification under subsection (b) 
of this section, the President shall also certify to the 
Speaker of the House of Representatives and the chairman of the 
Committee on Foreign Relations of the Senate that he has 
determined that the Government of El Salvador has made good 
faith efforts both to investigate the murders of the six United 
States citizens in El Salvador in December 1980 and January 
1981 and to bring to justice those responsible for those 
murders. The second certification required under this section 
may be made only if it includes a determination by the 
President that the Government of El Salvador (1) has made good 
faith efforts since the first such certification was made to 
investigate the murders of those six United States citizens and 
to bring to justice those responsible for those murders, and 
(2) has taken all reasonable steps to investigate the 
disappearance of journalist John Sullivan in El Salvador in 
January 1981. The fourth certification required under this 
section may be made only if it includes a determination by the 
President that, since the third such certification was made, 
the Government of El Salvador (1) has made good faith efforts 
both to investigate the murders of the seven United States 
citizens in El Salvador in December 1980 and January 1981 and 
to bring to justice all those responsible for those murders, 
and (2) has taken all reasonable steps to investigate the 
killing of Michael Kline in El Salvador in October 1982.

             [reporting requirement relating to el salvador

    [Sec. 729. (a) Not later than ninety days after the date of 
enactment of this section, the President shall prepare and 
transmit to the Speaker of the House of Representatives and to 
the chairman of the Committee on Foreign Relations of the 
Senate a report setting forth--
          [(1) the viewpoints of all major parties to the 
        conflict in El Salvador and of the influential actors 
        in the Salvadoran political system regarding the 
        potential for and interest in negotiations, elections, 
        and a settlement of the conflict; and
          [(2) the views of democratic Latin American nations, 
        Canada, the Organization of American States, and 
        European allies of the United States regarding a 
        negotiated settlement to such conflict.
    [(b) It is the sense of the Congress that the President 
shall, as soon as possible, send a special envoy or use other 
appropriate means to consult with and gather information from 
appropriate representatives of the parties to the Salvadoran 
conflict, democratic governments of Latin America, Canada, and 
European allies of the United States regarding the attainment 
of a negotiated settlement in El Salvador.

                  [restrictions on aid to el salvador

    [Sec. 730. None of the funds authorized to be appropriated 
by this Act may be made available for the provision of 
assistance to El Salvador for the purpose of planning for 
compensation, or for the purpose of compensation, for the 
confiscation, nationalization, acquisition, or expropriation of 
any agricultural or banking enterprise, or of the properties or 
stock shares which may be pertaining thereto.

                        [el salvadoran refugees

    [Sec. 731. It is the sense of the Congress that the 
administration should continue to review, on a case-by-case 
basis, petitions for extended voluntary departure made by 
citizens of El Salvador who claim that they are subject to 
persecution in their homeland, and should take full account of 
the civil strife in El Salvador in making decisions on such 
petitions.]

           *       *       *       *       *       *       *


                                [repeals

    [Sec. 734. (a) * * *
    [(b) * * *
    [(c) Except as otherwise explicitly provided by their 
terms, amendments to the Foreign Assistance Act of 1961 and the 
Arms Export Control Act which are applicable only to a single 
fiscal or calendar year or which require reports or other 
actions on a nonrecurring basis shall be deemed to have expired 
and shall be removed from law upon the expiration of the 
applicable time periods for the fulfillment of the required 
actions.

                     [report on nuclear activities

    [Sec. 735. Beginning with the fiscal year 1983 and for each 
fiscal year thereafter, the President shall prepare and 
transmit to the Congress, as part of the presentation materials 
for foreign assistance programs proposed for the fiscal year, a 
classified report describing the nuclear programs and related 
activities of any country for which a waiver of section 669 or 
670 of the Foreign Assistance Act of 1961 is in effect, 
including an assessment of--
          [(1) the extent and effectiveness of International 
        Atomic Energy Agency safeguards at that country's 
        nuclear facilities; and
          [(2) the capability, actions, and intentions of the 
        government of that country with respect to the 
        manufacture or acquisition of a nuclear explosive 
        device.]

           *       *       *       *       *       *       *


  [prohibitions relating to nuclear transfers and nuclear detonations

    [Sec. 737. (a) The Congress finds that any transfer of a 
nuclear explosive device to a non-nuclear-weapon state or, in 
the case of a non-nuclear-weapon state, any receipt or 
detonation of a nuclear explosive device would cause grave 
damage to bilateral relations between the United States and 
that country.]

     Overseas Private Investment Corporation Amendments Act of 1981

                              [short title

    [Section. 1. This Act may be cited as the ``Overseas 
Private Investment Corporation Amendments Act of 1981''.]

           *       *       *       *       *       *       *


         [issuing authority, direct investment fund and reserve

    [Sec. 5. (a) * * *
    [(b)(1) * * *
    [(2) The authority of the Overseas Private Investment 
Corporation to enter into contracts under section 234(a) of the 
Foreign Assistance Act of 1961 shall be effective for any 
fiscal year beginning after September 30, 1981, only to such 
extent or in such amounts as are provided in appropriation 
Acts.]

           *       *       *       *       *       *       *


                                [reports

    [Sec. 9. (a) * * *
    [(b) The Overseas Private Investment Corporation shall 
prepare and submit to the Congress, not later than June 30, 
1982, a report on methods for estimating the probability that 
particular investments or types of investments will nor will 
not be made if insurance or other support by the Corporation is 
not provided. The report should review methods of taking into 
consideration the availability of insurance in the private 
sector as well as the self-insurance capabilities of investors. 
The report shall include recommendations on how the Corporation 
can incorporate consideration of such estimates when deciding 
which investments to support, particularly if not all 
applications of eligible investors can be approved. The report 
shall be based on studies conducted by persons who are not 
officers or employees of the Corporation as well as on studies 
conducted by the Corporation.]

           *       *       *       *       *       *       *


   The International Security and Development Cooperation Act of 1980

                              short title

    Section 1. This Act may be cited as the ``International 
Security and Development Cooperation Act of 1980''.

      TITLE I--MILITARY AND RELATED ASSISTANCE AND SALES PROGRAMS

           *       *       *       *       *       *       *


       foreign military sales authorization and aggregate ceiling

    [Sec. 106. (a) * * *
    [(b) * * *
    [(c) * * *
    [(d) The principal amount of the loans guaranteed under 
section 24(a) of such Act for the fiscal year 1981 with respect 
to Egypt, the Sudan, Greece, and Turkey shall be repaid, and 
with respect to Somalia may be repaid, in not less than twenty 
years, following a grace period of ten years on repayment of 
principal.]

           *       *       *       *       *       *       *


            [prohibition on military assistance to nicaragua

    [Sec. 119. None of the funds authorized to be appropriated 
by this title shall be made available for any aid or assistance 
to Nicaragua.]

                   [TITLE II--ECONOMIC SUPPORT FUND]

           *       *       *       *       *       *       *


               [TITLE III--DEVELOPMENT ASSISTANCE PROGRAMS]

           *       *       *       *       *       *       *


                  [assistance to the eastern caribbean

    [Sec. 313. (a) The Congress urges the President to use up 
to $7,000,000 for the fiscal year 1981 for bilateral 
development assistance for the countries of the eastern 
Caribbean.

                   [assistance for equatorial guinea

    [Sec. 314. The President is urged to provide up to 
$3,000,000 of the funds authorized to be appropriated for the 
fiscal year 1981 by this title for assistance to Equatorial 
Guinea if he deems that conditions in that country warrant such 
assistance.]

           *       *       *       *       *       *       *


                [reduction of postharvest losses of food

    [Sec. 317. It is the sense of the Congress that--
          [(1) the President should reaffirm the policy of the 
        United States Government to support the goal 
        established by the United Nations General Assembly of 
        reducing by 50 percent postharvest losses of food in 
        developing countries; and
          [(2) the President, acting through the Agency for 
        International Development, should increase 
        substantially the proportion of funds made available 
        under the Foreign Assistance Act of 1961 for the 
        purpose of assisting, together with other donor 
        countries and with developing countries, in the 
        reduction of postharvest losses of food in developing 
        countries.

                  [TITLE IV--OTHER ASSISTANCE PROGRAMS]

           *       *       *       *       *       *       *


                    [international narcotics control

    [Sec. 402. (a) * * *
    [(b) * * *
    [(c) Notwithstanding the provisions of section 482(a)(2) of 
the Foreign Assistance Act of 1961 as in effect immediately 
prior to the enactment of this Act, funds appropriated for the 
fiscal year 1980 to carry out the purposes of section 481 of 
that Act which were obligated for assistance for Colombia may 
be used for fixed-wing aircraft, communications equipment, and 
such other equipment and operational support, including 
aviation services, as are essential to the Colombian anti-
narcotics enforcement program.]

           *       *       *       *       *       *       *


                              [east timor

    [Sec. 408. It is the sense of the Congress that the 
President should take all appropriate measures to--
          [(1) continue to support and encourage relief 
        operations by the Government of Indonesia and by 
        international relief agencies in East Timor;
          [(2) assist the Government of Indonesia to facilitate 
        the reuniting of families separated because of 
        developments in recent years in East Timor; and
          [(3) encourage the Government of Indonesia to allow 
        access to East Timor by international journalists.]

           *       *       *       *       *       *       *


                        [TITLE VI--PEACE CORPS]

           *       *       *       *       *       *       *


                 [TITLE VII--MISCELLANEOUS PROVISIONS]

           *       *       *       *       *       *       *


       [interagency group on human rights and foreign assistance

    [Sec. 710. It is the sense of the Congress that--
          [(1) the Interagency Group on Human Rights and 
        Foreign Assistance has been an effective mechanism for 
        coordinating and implementing United States human 
        rights policies;
          [(2) the President should consider establishing the 
        Interagency Group on a more permanent basis;
          [(3) the Interagency Group should examine proposals 
        for not only economic assistance but also for security 
        assistance; and
          [(4) the President should report his recommendations 
        for strengthening the Interagency Group to the Congress 
        no later than July 1, 1981.

                       [peace in the middle east

    [Sec. 711. (a) It is the sense of the Congress that all 
parties to the Arab-Israeli conflict need to reaffirm their 
unequivocal commitment to the peace process in order to achieve 
further progress toward a comprehensive settlement, to 
reinforce the principles of the Camp David accords, and to take 
actions to encourage parties not currently involved in the 
peace process to become active participants in peace efforts.
    [(b) It is further the sense of the Congress that to 
further these goals (1) all parties to the conflict should 
accept Israel's unequivocal right to exist within secure and 
recognized borders; (2) the Governments of Israel and Egypt 
should maintain and strengthen their commitment to the process 
of normalization of relations and continue actions to support 
that commitment; (3) the Governments of Israel and Egypt should 
reaffirm their commitment to United Nations Resolution 242 and 
its applicability, in all its aspects, to territories under 
negotiations; and (4) the governments of countries in the 
Middle East should assure that their policies and actions are 
consistent with the objectives of achieving peace and of 
involving other parties in the peace process.

                         [assistance for jordan

    [Sec. 712. It is the sense of the Congress that for Jordan 
to receive any funds authorized to be appropriated by this Act, 
it should be judged by the President that Jordan is acting in 
good faith to achieve peace in the Middle East and that the 
expenditure of such funds for Jordan will serve to further 
peace in the Middle East.

                            [cuban refugees

    [Sec. 715. (a) The Congress finds that--
          [(1) the flow of refugees for political, economic, or 
        other compelling reasons is a growing and world-wide 
        phenomenon;
          [(2) the United States represents freedom of thought 
        and action and economic opportunity and has 
        historically played a major role in providing a home to 
        the refugees of the world;
          [(3) an orderly and lawful refugee process is 
        necessary for the furtherance of United States domestic 
        well-being;
          [(4) continuation of the traditional compassionate 
        and humanitarian policy of the United States regarding 
        entry to its shores of refugees and other victims of 
        oppression is threatened by the precipitate influx of 
        large numbers of Cubans fleeing their country;
          [(5) the United States has sought to negotiate with 
        the Government of Cuba to establish a lawful, safe, and 
        orderly process by which Cubans may be allowed to leave 
        their country; and
          [(6) the Cuban refugee crisis is a problem of 
        international concern and other nations should 
        contribute to its resolution.
    [(b)(1) The Congress urges the President to take the 
necessary steps to encourage and secure greater international 
cooperation with respect to the large number of Cuban natives 
who have recently fled or are attempting to flee Cuba. Such 
steps should include seeking the agreement of other countries 
to admit some of those persons into their respective countries 
and to contribute funds and other assistance for the 
resettlement of those persons.
    [(2) In order to encourage countries throughout the world 
which are recipients of United States bilateral and 
multilateral assistance to permit and to help finance the 
resettlement of Cuban and other refugees within their borders, 
the President shall, to the maximum extent feasible, attempt to 
channel such assistance to countries which have demonstrated a 
willingness to provide assistance to Cuban and other refugees.
    [(c) It is the sense of the Congress that, in carrying out 
subsection (b)(1), the President should seek the discussion, in 
an appropriate international forum such as the United Nations 
or the Organization of American States, of the situation 
involving the flight of large numbers of Cuban natives from 
Cuba, of the resettlement of Cuban refugees, and of means by 
which a more orderly process may be established to handle 
future crises of a similar nature.

            [incarceration and deportation of certain cubans

    [Sec. 716. The Congress finds that the United States 
Government has already incarcerated recently arrived Cubans who 
are admitted criminals, are security threats, or have incited 
civil disturbances in Federal processing facilities. The 
Congress urges the Executive branch, consistent with United 
States law, to seek the deportation of such individuals.

  [prohibition on assistance to the governments of cuba, vietnam, and 
                                cambodia

    [Sec. 717. None of the funds authorized to be appropriated 
by this Act may be used to provide assistance to the 
Governments of Cuba, Vietnam, or Cambodia. Nothing in this 
section shall be construed to prohibit food assistance or 
humanitarian assistance which is distributed directly to the 
people of Cambodia.

  [cooperation of other governments in the boycott of the 1980 summer 
                        olympic games in moscow

    [Sec. 718. In determining the levels of assistance to be 
provided to a foreign government with funds authorized to be 
appropriated by this Act, the President shall take into account 
the position of that government with respect to the United 
States proposed boycott of the 1980 summer Olympic games in 
Moscow.

                          [elections in uganda

    [Sec. 719. The President shall encourage the holding of 
free, open elections in Uganda and shall, in considering 
assistance for Uganda with funds authorized to be appropriated 
by this Act, take into account whether such elections are 
held.]

         The International Development Cooperation Act of 1979

                              [short title

    [Section 1. This Act may be cited as the ``International 
Development Cooperation Act of 1979''.

                   [TITLE I--DEVELOPMENT ASSISTANCE]

           *       *       *       *       *       *       *


               [international organizations and programs

    [Sec. 114. (a) * * *
    [(b) Notwithstanding any other provision of law, funds 
appropriated for the fiscal year 1979 to meet the annual 
obligations of membership of the United States in the United 
Nations and its specialized agencies may be made available for 
the furnishing of technical assistance by the United Nations 
and its specialized agencies.]

           *       *       *       *       *       *       *

    [Sec. 124. Prohibition on Assistance to Panama * * * 
[Repealed--1981]

         [assistance to latin american and caribbean countries

    [Sec. 125. It is the sense of the Congress that the United 
States should place greater emphasis on public and private 
resources for development programs in Latin America and the 
Caribbean which address problems common to the Western 
Hemisphere. It is further the sense of the Congress that 
provision of such assistance to Latin American and Caribbean 
countries, including transitional developing countries, is 
consistent with the purposes of part I of the Foreign 
Assistance Act of 1961.

          [increased contributions for development assistance

    [Sec. 126. In recognition of the rapidly growing economic 
strength and ability to contribute to international development 
and security efforts of other nations, it is the sense of the 
Congress that the President should take all appropriate steps 
to negotiate with those nations with adequate financial 
resources to provide assistance to increase their contributions 
for development assistance through multilateral programs as 
well as through bilateral efforts.

                       [TITLE II--FOOD FOR PEACE]

           *       *       *       *       *       *       *


                       [TITLE III--PEACE CORPS]

           *       *       *       *       *       *       *


   [TITLE IV--INSTITUTE FOR SCIENTIFIC AND TECHNOLOGICAL COOPERATION

                          [statement of policy

    [Sec. 401. As declared by Congress in the Foreign 
Assistance Act of 1961, a principal objective of the foreign 
policy of the United States is the encouragement and sustained 
support of the people of developing countries in their efforts 
to acquire the knowledge and resources essential to development 
and to build the economic, political, and social institutions 
which will improve the quality of their lives. The Congress 
reaffirms the profound humanitarian and foreign policy concerns 
of the United States in the economic and social progress of the 
developing countries and in the alleviation of the worst 
physical manifestations of poverty in these countries.
    [In furtherance of that objective, the Congress recognizes 
that developing countries require extensive scientific and 
technological capacity in order to deal effectively with their 
development problems, relate to the industrialized nations, and 
constructively participate in the shaping of a stable world 
order.
    [It is therefore in the mutual interest of the United 
States and the developing countries to increase scientific and 
technological cooperation and jointly to support long-term 
research on critical problems that impede development and limit 
the efficient use of the world's human, natural, and capital 
resources.

              [purposes and establishment of the institute

    [Sec. 402. (a) To strengthen the capacity of the people of 
developing countries to solve their development problems 
through scientific and technological innovation, to foster 
research on problems of development, and to facilitate 
scientific and technological cooperation with developing 
countries, the President is authorized to establish an 
Institute for Scientific and Technological Cooperation 
(hereafter in this title referred to as the ``Institute''), 
which shall be subject to the foreign policy guidance of the 
Secretary of State.
    [(b) The Institute shall be guided by the policies set 
forth in sections 101 and 102 of the Foreign Assistance Act of 
1961 and shall direct a substantial share of its resources to 
those objectives.

                      [functions of the institute

    [Sec. 403. (a) In carrying out its purposes, the Institute 
shall--
          [(1) assist developing countries to strengthen their 
        own scientific and technological capacity in order for 
        them to undertake the research and experimentation 
        necessary for development;
          [(2) support research, in the United States and in 
        developing countries, on critical development problems, 
        with emphasis on research relating to technologies 
        which are labor-intensive or which do not generate 
        additional unemployment or underemployment and with 
        emphasis on those problems which are the greatest 
        impediment to improvement in the lives of the majority 
        of the poor;
          [(3) foster the exchange of scientists and other 
        technological experts with developing countries, and 
        other forms of exchange and communication to promote 
        the joint solution of problems of mutual concern to the 
        United States and developing countries;
          [(4) advise and assist other agencies of the United 
        States Government in planning and executing policies 
        and programs of scientific and technological 
        cooperation with developing countries;
          [(5) facilitate the participation of private United 
        States institutions, businesses, and individuals in 
        scientific and technological cooperation with 
        developing countries; and
          [(6) gather, analyze, and disseminate information 
        relevant to the scientific and technological needs of 
        developing countries.
    [(b) In carrying out the functions specified in subsection 
(a), the Institute shall take particular care to review all of 
its programs, projects, and other activities to ensure that 
technologies which are developed, utilized, or promoted are 
assessed with regard to minimizing any new problems and that 
participants in such programs, projects, and activities are 
fully aware of the need for such review with respect to any 
technology-related activities for which they are responsible.
    [(c) For purposes of carrying out the functions of the 
Institute, the President may utilize, in addition to 
authorities conferred by this title, such authority contained 
in the Foreign Assistance Act of 1961, the Foreign Service Act 
of 1980, title V of the Foreign Relations Authorization Act, 
Fiscal Year 1979, and title IV of the International Development 
and Food Assistance Act of 1978, as the President deems 
necessary.
    [(d) The Institute shall carry out its functions in 
consultation and cooperation with the agencies of the United 
States Government, international organizations, and agencies of 
other governments engaged in promoting economic, social, and 
technological development in developing countries.
    [(e) The President shall prescribe appropriate procedures 
to assure coordination of the activities of the Institute with 
other activities of the United States Government in furthering 
the use of science and technology in the cause of development.

                          [general authorities

    [Sec. 404. (a) To carry out the purposes and functions of 
the Institute, the President may--
          [(1) make and perform contracts and other agreements 
        with any individual, institution, corporation, or other 
        body of persons however designated, within or outside 
        the United States, and with governments or government 
        agencies, domestic or foreign;
          [(2) make advances, grants, and loans to any 
        individual, institution, corporation, or other body of 
        persons however designated, within or outside the 
        United States, and to governments or government 
        agencies, domestic or foreign;
          [(3) employ such personnel as necessary and fix their 
        compensation;
          [(4) make provision for compensation, transportation, 
        housing, subsistence (or per diem in lieu thereof), and 
        health care or health and accident insurance for 
        foreign nationals engaged in activities authorized by 
        this title while they are away from their homes, 
        without regard to the provisions of any other law;
          [(5) accept and use money, funds, property, and 
        services of any kind by gift, devise, bequest, grant, 
        or otherwise in furtherance of the purposes of the 
        Institute;
          [(6) acquire by purchase, lease, loan, bequest, or 
        gift and hold and dispose of by sale, lease, loan, or 
        grant, real and personal property of all kinds;
          [(7) prescribe, amend, and repeal such rules and 
        regulations as may be necessary to the conduct of the 
        business of the Institute;
          [(8) utilize information, services, facilities, 
        officers, and employees of any agency of the United 
        States Government;
          [(9) establish a principal office in the United 
        States and such other offices within or outside the 
        United States, as may be necessary;
          [(10) make such expenditures as may be necessary for 
        administering the provisions of this title;
          [(11) adopt, alter, and use an official seal for the 
        Institute, which shall be judicially noticed; and
          [(12) take such other actions as may be necessary and 
        incidental to carrying out the functions of the 
        Institute.
    [(b) Any authority provided by this section involving the 
expenditures of appropriated funds shall be effective for a 
fiscal year only to such extent or in such amounts as are 
provided in appropriation Acts.

                       [director of the institute

    [Sec. 405. (a) There shall be a Director of the Institute 
(hereafter in this title referred to as the ``Director'') who 
shall be the chief executive officer of the Institute. The 
Director shall be appointed by the President, by and with the 
advice and consent of the Senate, and shall receive 
compensation at the rate payable for level III of the Executive 
Schedule under section 5314 of title 5 of the United States 
Code.
    [(b) The President may exercise any authorities conferred 
upon him by this title through the Director or any other agency 
or officer of the United States Government as he shall direct. 
The Director or head of any such agency or any such officer may 
delegate to any of his subordinates authority to perform any of 
such functions.

             [deputy director and other statutory officers

    [Sec. 406. (a) A Deputy Director of the Institute shall be 
appointed by the President, by and with the advice and consent 
of the Senate. The Deputy Director shall receive compensation 
at the rate payable for level IV of the Executive Schedule 
under section 5315 of title 5 of the United States Code.
    [(b) The Deputy Director shall perform such duties and 
exercise such powers as the Director may prescribe.
    [(c) The President may establish up to two additional 
positions in the Institute to be compensated at the rate 
payable for level V of the Executive Schedule under section 
5316 of title 5 of the United States Code.

   [council on international scientific and technological cooperation

    [Sec. 407. (a) In order to further the purposes of the 
Institute, the President is authorized to establish a Council 
on International Scientific and Technological Cooperation 
(hereafter in this title referred to as the ``Council'').
    [(b)(1) The Council shall--
          [(A) advise the Director with respect to the 
        policies, programs, planning, and procedures of the 
        Institute;
          [(B) make recommendations to the Director on the use 
        of the resources available to the Institute; and
          [(C) advise the Director on matters involving the 
        activities of the Institute overseas and appropriate 
        relationship with the private sector, within and 
        outside the United States.
    [(2) The Council shall prepare an annual report setting 
forth the major recommendations made and advice given pursuant 
to paragraph (1) of this subsection.
    [(c) The Director shall seek the advice of the Council 
before making any decision with respect to the selection or 
termination of, or any significant change in, the areas and 
issues in which the Institute conducts its activities, and with 
respect to the transfer of specific programs and projects from 
any other Government agency to the Institute. The Council shall 
have the authority to review all new programs and initiatives 
before their implementation and to make recommendations with 
regard to the approval or disapproval of new programs and 
initiatives having a cost in excess of $500,000 or a duration 
greater than two years.
    [(d) The Council shall consist of up to twenty-five members 
appointed by the President, one of whom the President shall 
designate as Chairman. The members of the Council shall be 
appointed for terms of four years, except that the members 
first appointed shall be appointed for terms of one, two, 
three, or four years, as designated by the President at the 
time of their appointment, so that the terms of approximately 
one-fourth of the members of the Council expire in any year. 
The members of the Council shall be selected from among--
          [(1) citizens of the United States who are widely 
        recognized for their broad knowledge of, or expertise 
        in, science and technology, or their interest in the 
        scientific and technological problems of developing 
        countries;
          [(2) citizens of foreign countries who by their 
        knowledge and expertise are capable of providing advice 
        and guidance to the Institute on the application of 
        science and technology to the problems of developing 
        countries, except that not more than one-third of the 
        membership of the Council shall consist of members who 
        are citizens of foreign countries; and
          [(3) officials of the United States Government, 
        except that not to exceed five members of the Council 
        may be appointed under this paragraph, one of whom 
        shall be the Secretary of State or his designee.
    [(e) Members of the Council who are not officials of the 
United States Government shall be entitled to compensation, not 
to exceed the daily equivalent of the highest rate which may be 
paid to an employee under the General Schedule established by 
section 5332 of title 5 of the United States Code, while in the 
performance of their duties under this title, and to 
reimbursement for expenses and per diem in lieu of subsistence 
while away from their homes or regular places of business in 
the same manner as persons employed intermittently in 
Government service are allowed expenses under section 5703 of 
title 5 of the United States Code. Members of the Council who 
are not officials of the United States Government shall not be 
deemed officers, employees, or otherwise in the service or 
employment of the United States Government for any purpose, 
except that members of the Council who are United States 
citizens shall be deemed Government employees for the purposes 
of sections 202, 203, 205, 207, 208, and 209 of title 18 of the 
United States Code.
    [(f) The Council may appoint from among its members an 
Executive Committee, and such other committees it deems 
necessary, to assist it in exercising its powers and functions. 
The Executive Committee shall consist of seven members, one of 
whom shall be the Chairman of the Council and not more than 
three of whom shall be employees of the United States 
Government. The Executive Committee shall exercise such powers 
and functions as are delegated to it by the Council.

                         [institute fellowships

    [Sec. 408. (a) The President is authorized to award up to 
twenty fellowships annually for periods up to two years, such 
awards to be renewable for an additional period not to exceed 
two years, to individuals who have demonstrated exceptional 
competence and ability in the fields of scientific, 
technological, economic, or social endeavor selected by the 
Institute for concentration. The awards shall be made so as to 
encompass a wide diversity of disciplines and backgrounds, and 
shall be made on the basis of criteria established by the 
President upon the advice of the Council. Up to ten of the 
awards in any year may be made to citizens of countries other 
than the United States. Individuals awarded fellowships shall 
be designated as Institute Fellows.
    [(b) The President may assign Institute Fellows to 
undertake such activities, in the United States or abroad, as 
will further the purposes of the Institute.
    [(c) The amount of the awards made pursuant to this section 
shall be established by the President, but shall not in any 
case exceed the highest rate which may be paid to an employee 
under the General Schedule established by section 5332 of title 
5 of the United States Code. In addition, where appropriate, 
the President may make provisions for transportation, housing 
(when assigned outside country of residence), subsistence (or 
per diem in lieu thereof), and health care or health or 
accident insurance for Institute Fellows and their dependents 
while engaged in activities authorized by this title.
    [(d) Except as provided otherwise in this section, 
Institute Fellows shall not be deemed employees or otherwise in 
the service or employment of the United States Government. 
Institute Fellows shall be considered employees for purposes of 
compensation of injuries under chapter 81 of title 5 of the 
United States Code and the tort claim provisions of chapter 171 
of title 28 of the United States Code. In addition, Institute 
Fellows who are United States citizens shall be considered 
Government employees for purposes of sections 202, 203, 205, 
207, 208, and 209 of title 18 of the United States Code.
    [(e) Alien participants in any program of the Institute, 
including Institute Fellows and their dependents, may be 
admitted to the United States, if otherwise qualified as non-
immigrants under section 101(a)(15) of the Immigration and 
Nationality Act, for such time and under such conditions as may 
be prescribed by regulations promulgated by the Secretary of 
State and the Attorney General.

                         [conflict of interest

    [Sec. 409. Members of the Council and Institute Fellows 
shall avoid any action, in their activities with respect to the 
Institute, which might result in, or create the appearance of, 
a conflict of interest, including but not limited to--
          [(1) using their office or position for private gain;
          [(2) giving preferential treatment to any person;
          [(3) making recommendations or decisions relating to 
        any activity authorized by this title in other than an 
        impartial and independent manner;
          [(4) misusing Government property or official 
        information obtained through their office or position 
        which has not been made available to the general 
        public; or
          [(5) affecting adversely the confidence of the public 
        in the integrity of the Institute.

                    [authorization of appropriations

    [Sec. 410. There are authorized to be appropriated to the 
President to carry out this title, in addition to funds 
otherwise available for such purpose, $12,000,000 for the 
fiscal year 1981. Funds appropriated under this section are 
authorized to remain available until expended.
    [Sec. 411. Annual Report * * * [Repealed--1983]

                         [conforming amendments

    [Sec. 412. (a) Section 5314 of title 5 of the United States 
Code, relating to level III of the Executive Schedule, is 
amended by adding at the end thereof the following:
          [``(70) Director, Institute for Scientific and 
        Technological Cooperation.''
    [(b) Section 5315 of title 5 of the United States Code, 
relating to level IV of the Executive Schedule, is amended by 
adding at the end thereof the following:
          [``(128) Deputy Director, Institute for Scientific 
        and Technological Cooperation.''.
    [(c) Section 5316 of title 5 of the United States Code, 
relating to level V of the Executive Schedule, is amended by 
adding at the end thereof the following:
          [``(152) Additional officers, Institute for 
        Scientific and Technological Cooperation (2).''.
    [Sec. 413. Establishment in International Development 
Cooperation Agency * * * [Repealed--1998]

                       [expiration of authorities

    [Sec. 414. The authorities contained in this title shall 
expire on September 30, 1984.

                   [TITLE V--MISCELLANEOUS PROVISIONS

  [earmarking for lebanon of unobligated balances in the middle east 
                       special requirements fund

    [Sec. 501. Of the funds continued available for the fiscal 
year 1979 for the Middle East Special Requirements Fund by 
section 103 of the Foreign Assistance and Related Programs 
Appropriations Act, 1979, which are unobligated on the date of 
enactment of this Act, $5,000,000 shall be available only for 
Lebanon and may hereafter be continued available only for such 
country.

                     [military assistance to sudan

    [Sec. 502. In addition to the amount authorized to be 
appropriated for grant military assistance for the fiscal year 
1980 by section 504(a)(1) of the Foreign Assistance Act of 
1961, there is authorized to be appropriated to carry out the 
purposes of chapter 2 of part II of that Act for the fiscal 
year 1980 $1,700,000. Not more than $1,700,000 of the funds 
available to carry out that chapter for the fiscal year 1980 
may be allocated and made available for assistance for Sudan. 
For purposes of the last sentence of section 504(a)(1) and for 
purposes of section 515(b)(1) of the Foreign Assistance Act of 
1961, this section shall be deemed to be part of such section 
504(a)(1).]

           *       *       *       *       *       *       *


                  [nonproliferation of nuclear weapons

    [Sec. 507. (a) In accordance with the Nuclear Non-
Proliferation Act of 1978, the Congress strongly urges all 
nations which are not parties to the Treaty on Non-
Proliferation of Nuclear Weapons to become parties to that 
treaty.

                   [refugee crisis in southeast asia

    [Sec. 509. (a)(1) The refugee crisis in Indochina is 
unfolding as one of the great human tragedies of our time.
    [(2) At least seven hundred and fifty thousand human beings 
have fled Vietnam, Kampuchea, and Laos since the spring of 
1975.
    [(3) Approximately three hundred thousand human beings 
currently remain in refugee camps throughout Southeast Asia.
    [Sec. 510. Section 5924(4)(B) of title 5, United States 
Code, is amended by striking out ``one annual trip each way for 
each dependent of an employee of the Department of State or the 
United States Information Agency, or'' and inserting in lieu 
thereof ``(i) in the case of dependents traveling to obtain 
secondary education, one annual trip, or in the case of 
dependents traveling to obtain undergraduate college education, 
two annual trips, each way for each dependent of an employee of 
the Department of State, of the International Communication 
Agency, or of the Agency for International Development, or 
(ii)''.]

           *       *       *       *       *       *       *


                            [effective dates

    [Sec. 512. (a) Except as provided in subsection (b) of this 
section and in section 503(b), this Act shall take effect on 
October 1, 1979.
    [(b) Sections 114(b), 123, 501, and 509 of this Act shall 
take effect on the date of enactment of this Act.]

           The International Security Assistance Act of 1979

                              [short title

    [Section 1. This Act may be cited as the ``International 
Security Assistance Act of 1979''.]

           *       *       *       *       *       *       *


[authorization and aggregate ceiling for foreign military sales credits

    [Sec. 17. (a) * * *
    [(b) Of the principal amount of loans guaranteed for the 
fiscal year 1980 under section 24 of the Arms Export Control 
Act--
          [(1) with respect to Turkey, not to exceed 
        $50,000,000,
          [(2) with respect to Greece, not to exceed 
        $42,000,000, and
          [(3) with respect to Sudan, not to exceed 
        $25,000,000,
[shall be repaid in not less than 20 years, following a grace 
period of 10 years on repayment of principal.]

           *       *       *       *       *       *       *


[national disclosure policy for sensitive weapons technology]

           *       *       *       *       *       *       *


     [transfer of war reserve materiel and other property to taiwan

    [Sec. 23. (a) Notwithstanding any other provision of law, 
during the calendar year 1980 the President is authorized to 
transfer to Taiwan under such terms and conditions as he may 
deem appropriate, such United States war reserve materiel that 
was located on Taiwan on January 1, 1979, as he may determine.
    [(b) Notwithstanding any other provision of law, during the 
calendar years 1979 and 1980 the President is authorized to 
transfer to Taiwan, under such terms and conditions as he may 
deem appropriate, such rights of the United States in property 
(other than war reserve materiel) that was located on Taiwan on 
January 1, 1979, as he may determine.

                      [ammunition sold to thailand

    [Sec. 24. The Royal Thai Government shall be released from 
its contractual obligation to pay to the United States 
Government such amount as is due on or before October 30, 1979, 
as a condition precedent under the letter of offer accepted by 
the Royal Thai Government on April 12, 1977, to the transfer of 
title to the last increment of United States ammunition stocks 
sold to the Royal Thai Government under such letter of offer 
pursuant to the Memorandum of Agreement of March 22, 1977, 
relating to the storage of ammunition in Thailand.]

           *       *       *       *       *       *       *


                             [shaba airlift

    [Sec. 26. Notwithstanding any other provision of law, the 
President is authorized to make available the services of the 
Department of Defense for the purpose of facilitating the 
removal from Zaire of those foreign armed forces which were 
transported to Zaire by the United States at the time of the 
crisis in Shaba Province in 1978.

        [fiscal year 1979 supplemental authorization for turkey

    [Sec. 27. (a) It is hereby determined that the national 
interests of the United States would be served by the 
furnishing of additional economic support fund assistance to 
Turkey in order to promote the economic and political stability 
of that country, and to strengthen its ability to fulfill its 
responsibilities as a member of the North Atlantic Treaty 
Organization.
    [(b) In furtherance of subsection (a) of this section, and 
in addition to amounts otherwise available for such purposes, 
there are authorized to be appropriated to the President to 
carry out the purposes of chapter 4 of part II of the Foreign 
Assistance Act of 1961 $100,000,000 for the fiscal year 1979, 
which amount shall be available only for Turkey.
    [(c) Amounts appropriated under this section may be made 
available until expended.
    [(d) Notwithstanding any assistance authorized for Turkey 
under this Act, it remains the policy of the United States that 
all foreign troops in Cyprus, except those stationed in Cyprus 
under the auspices of the United Nations, should be withdrawn 
from Cyprus.
    [(e) It is the sense of the Congress that the recent 
announcement by the leaders of the Greek Cypriots and the 
Turkish Cypriots to resume intercommunal negotiations is an 
encouraging recognition by the parties that the human rights 
and fundamental freedoms of all the citizens of the Republic of 
Cyprus will be respected. The Congress urges all parties to the 
negotiations to demonstrate good faith in the negotiations and 
to move promptly toward a full, just, and lasting settlement.]

       The Special International Security Assistance Act of 1979

                              [short title

    [Section 1. This Act may be cited as the ``Special 
International Security Assistance Act of 1979''.

                   [statement of policy and findings

    [Sec. 2. (a) It is the policy of the United States to 
support the peace treaty concluded between the Government of 
Egypt and the Government of Israel on March 26, 1979. This 
treaty is a significant step toward a full and comprehensive 
peace in the Middle East. The Congress urges the President to 
continue to exert every effort to bring about a comprehensive 
peace and to seek an end by all parties to the violence which 
could jeopardize this peace.
    [(b) The peace treaty between Egypt and Israel having been 
ratified, the Congress finds that the national interests of the 
United States are served--
          [(1) by authorizing the President to construct air 
        bases in Israel to replace the Israeli air bases on the 
        Sinai peninsula that are to be evacuated;
          [(2) by authorizing additional funds to finance 
        procurements by Egypt and Israel through the fiscal 
        year 1982 of defense articles and defense services for 
        their respective security requirements; and
          [(3) by authorizing additional funds for economic 
        assistance for Egypt in order to promote the economic 
        stability and development of that country and to 
        support the peace process in the Middle East.
    [(c) The authorities contained in this Act to implement 
certain arrangements in support of the peace treaty between 
Egypt and Israel do not signify approval by the Congress of any 
other agreement, understanding, or commitment made by the 
executive branch.

                  [construction of air bases in israel

    [Sec. 3. * * *

 [supplemental authorization of foreign military sales loan guaranties 
                          for egypt and israel

    [Sec. 4. (a) The Congress finds that the legitimate defense 
interests of Israel and Egypt require a one time extraordinary 
assistance package due to Israel's phased withdrawal from the 
Sinai and Egypt's shift from reliance on Soviet weaponry. The 
authorizations contained in this section do not, however, 
constitute Congressional approval of the sale of any particular 
weapons system to either country. These sales will be reviewed 
under the normal procedures set forth in section 36(b) of the 
Arms Export Control Act.
    [(b) In addition to amounts authorized to be appropriated 
for the fiscal year 1979 by section 31(a) of the Arms Export 
Control Act, there is authorized to be appropriated to the 
President to carry out that Act $370,000,000 for the fiscal 
year 1979.
    [(c) Funds made available pursuant to subsection (b) of 
this section may be used only for guaranties for Egypt and 
Israel pursuant to section 24(a) of the Arms Export Control 
Act. The principal amount of loans guaranteed with such funds 
may not exceed $3,700,000,000 of which $2,200,000,000 shall be 
available only for Israel and $1,500,000,000 shall be available 
only for Egypt. The principal amount of such guaranteed loans 
shall be in addition to the aggregate ceiling authorized for 
the fiscal year 1979 by section 31(b) of the Arms Export 
Control Act.
    [(d) Loans guaranteed with funds made available pursuant to 
subsection (b) of this section shall be on terms calling for 
repayment within a period of not less than thirty years, 
including an initial grace period of ten years on repayment of 
principal.
    [(e)(1) The Congress finds that the Governments of Israel 
and Egypt each have an enormous external debt burden which may 
be made more difficult by virtue of the financing authorized by 
this section. The Congress further finds that, as a consequence 
of the impact of the debt burdens incurred by Israel and Egypt 
under such financing, it may become necessary in future years 
to modify the terms of the loans guaranteed with funds made 
available pursuant to this section.

       [supplemental authorization of economic support for egypt

    [Sec. 5. There is authorized to be appropriated to the 
President to carry out chapter 4 of part II of the Foreign 
Assistance Act of 1961, $300,000,000 for the fiscal year 1979 
for Egypt, in addition to amounts otherwise authorized to be 
appropriated for such chapter for the fiscal year 1979. The 
amounts appropriated pursuant to this section may be made 
available until expended.

      [transfer of facilities of the sinai field mission to egypt

    [Sec. 6. The President is authorized to transfer to Egypt, 
on such terms and conditions as he may determine, such of the 
facilities and related property of the United States Sinai 
Field Mission as he may determine, upon the termination of the 
activities of the Sinai Field Mission in accordance with the 
terms of the peace treaty between Egypt and Israel.

 [contributions by other countries to support peace in the middle east

    [Sec. 7. (a) It is the sense of the Congress that other 
countries should give favorable consideration to providing 
support for the implementation of the peace treaty between 
Egypt and Israel. Therefore, the Congress requests that the 
President consult with other countries in order to (1) promote 
and develop an agreement for the establishment of a peace 
development fund whose purpose would be to underwrite the costs 
of implementing a Middle East peace, and (2) encourage 
investments in Israel and Egypt and other countries in the 
region should they join in Middle East peace agreements.

 [planning for trilateral scientific and technological cooperation by 
                  egypt, israel, and the united states

    [Sec. 8. (a) It is the sense of the Congress that, in order 
to continue to build the structure of peace in the Middle East, 
the United States should be prepared to participate, at an 
appropriate time, in trilateral cooperative projects of a 
scientific and technological nature involving Egypt, Israel, 
and the United States.
    [(b) Therefore, the President shall develop a plan to guide 
the participation of both United States Government agencies and 
private institutions in such projects. This plan shall 
identify--
          [(1) potential projects in a variety of areas 
        appropriate for scientific and technological 
        cooperation by the three countries, including 
        agriculture, health, energy, the environment, 
        education, and water resources;
          [(2) the resources which are available or which would 
        be needed to implement such projects; and
          [(3) the means by which such projects would be 
        implemented.

                 [non-proliferation of nuclear weapons

    [Sec. 10. In accordance with the Nuclear Non-Proliferation 
Act of 1978, the Congress strongly encourages all countries in 
the Middle East which are not parties to the Treaty on the Non-
Proliferation of Nuclear Weapons to become parties to that 
Treaty.

     The International Development and Food Assistance Act of 1978

                              short title

    Section 1. This Act may be cited as the ``International 
Development and Food Assistance Act of 1978''.

                   [TITLE I--DEVELOPMENT ASSISTANCE]

           *       *       *       *       *       *       *


               [international organizations and programs

    [Sec. 117.--(a) * * *
    [(b)(1) * * *

           *       *       *       *       *       *       *

    [(c) * * *
    [(d) * * *
    [(e) In addition to amounts otherwise available for such 
purpose, there are authorized to be appropriated to the 
President not to exceed $1,000,000 for contributions to the 
World Assembly on Aging to be convened under the auspices of 
the United Nations, except that the amount so contributed may 
not exceed 25 percent of the expenditures of such Assembly. 
Amounts appropriated under this subsection are authorized to 
remain available until expended.]

           *       *       *       *       *       *       *


                   [locust plagues control in africa

    [Sec. 120. In order to assist in attempts to control locust 
plagues in Africa, especially in the Horn of Africa, there is 
authorized to be appropriated to the President, in addition to 
amounts otherwise authorized for disaster relief purposes, 
$2,000,000, which amount is authorized to remain available 
until expended.]

           *       *       *       *       *       *       *


                    [african development foundation

    [Sec. 122. (a) The Congress declares that the United States 
should place higher priority on the formulation and 
implementation of policies and programs to enable the people of 
African nations to develop their potential, fulfill their 
aspirations, and enjoy better, more productive lives. In 
furtherance of these objectives, the Congress finds that 
additional support is needed for community-based self-help 
activities in Africa and that an African Development 
Foundation, organized to further the purposes set forth in 
section 123 of the Foreign Assistance Act of 1961, can 
complement current United States development programs in 
Africa.]

           *       *       *       *       *       *       *


                      [TITLE II--FOOD FOR PEACE]

           *       *       *       *       *       *       *


[TITLE III--COORDINATION AND ADMINISTRATION OF THE DEVELOPMENT-RELATED 
               PROGRAMS AND POLICIES OF THE UNITED STATES

                       [declaration of objectives

    [Sec. 301. The Congress declares that the United States 
Government should place higher priority, in the formulation and 
implementation of governmental policies, on efforts to help 
meet the legitimate needs of poor countries for improving the 
quality of the lives of their populations. The Congress also 
declares that greater effectiveness and efficiency of United 
States assistance to such countries can be achieved through 
improved coordination and administrative consolidation.

                     [implementation of objectives

    [Sec. 302. In furtherance of the objectives set forth in 
section 301 the Congress directs the President to institute a 
strengthened system of coordination of all United States 
economic policies which impact on the developing countries of 
the world, including but not limited to policies concerning 
international trade, commodity agreements, investment, debt, 
international financial institutions, international and 
multilateral development agencies and programs, and 
concessional and grant food assistance, in addition to policies 
concerning United States bilateral economic development 
assistance.

                  [TITLE IV--UNIFIED PERSONNEL SYSTEM

              [establishment of a unified personnel system

    [Sec. 401. (a) Not later than May 1, 1979, the President 
shall submit to the Congress, and publish in the Federal 
Register, regulations establishing a unified personnel system 
for all employees of the agency primarily responsible for 
administering part I of the Foreign Assistance Act of 1961. In 
preparing such regulations, the President shall keep the 
appropriate committees of the Congress fully and currently 
informed, and shall consult with them on a regular basis, 
concerning the nature of the unified personnel system to be 
established.
    [(b) The regulations submitted to the Congress pursuant to 
subsection (a)--
          [(1) may not become effective until after the end of 
        the 90-day period beginning on the date of such 
        submission in order to provide the appropriate 
        committees of the Congress an opportunity to review 
        them; and
          [(2) shall not become effective then if, during such 
        90-day period, either House of Congress adopts a 
        resolution stating in substance that it disapproves the 
        personnel system proposed to be established by the 
        regulations.
    [(c) Regulations which take effect pursuant to this section 
shall have the force and effect of law and shall apply with 
respect to the personnel of the agency primarily responsible 
for administering part I of the Foreign Assistance Act of 1961, 
notwithstanding any inconsistent provision of law unless that 
provision of law specifically states that it supersedes 
regulations issued under this section.]

           *       *       *       *       *       *       *


                   TITLE VI--MISCELLANEOUS PROVISIONS

                      [reduction of authorization

    [Sec. 601. The total funds authorized to be appropriated in 
this Act (excluding funds authorized to be appropriated to 
carry out section 214 of the Foreign Assistance Act of 1961) 
shall be reduced by 5 percent.

       [prohibition on assistance to vietnam, cambodia, and cuba

    [Sec. 602. Notwithstanding any other provision of law or of 
this Act, funds authorized to be appropriated in this Act shall 
not be used for any form of aid, either by monetary payment or 
by the sale or transfer of any goods of any nature, to the 
Socialist Republic of Vietnam, Cambodia, or Cuba.]

           *       *       *       *       *       *       *

    [(b) Section 4 of the Foreign Disaster Assistance Act of 
1974 is repealed.

                         [miscellaneous repeals

    [Sec. 604. Sections 302(d), 302(e), 302(f), 302(g), 302(h), 
304, 494A, 495A, 618, 619, 637(a), 649, 651, 655, 656, 658, and 
665, and chapters 6 and 7 of part I, of the Foreign Assistance 
Act of 1961 are repealed.

                            [effective date

    [Sec. 605. The amendments made by this Act shall take 
effect on October 1, 1978.]

           The International Security Assistance Act of 1978

                              [short title

    [Section 1. This Act may be cited as the ``International 
Security Assistance Act of 1978''.]

           *       *       *       *       *       *       *


       [united states policy regarding the eastern mediterranean

    [Sec. 13. (a) Section 620(x) of the Foreign Assistance Act 
of 1961 shall be of no further force and effect upon the 
President's determination and certification to the Congress 
that the resumption of full military cooperation with Turkey is 
in the national interest of the United States and in the 
interest of the North Atlantic Treaty Organization and that the 
Government of Turkey is acting in good faith to achieve a just 
and peaceful settlement of the Cyprus problem, the early 
peaceable return of refugees to their homes and properties, and 
continued removal of Turkish military troops from Cyprus in the 
context of a solution to the Cyprus problem, and the early 
serious resumption of inter-communal talks aimed at a just, 
negotiated settlement.]

           *       *       *       *       *       *       *


[special security assistance program for the modernization of the armed 
                    forces of the republic of korea

    [Sec. 23. (a)(1) The President is authorized until December 
31, 1982--
          [(A) to transfer, without reimbursement, to the 
        Republic of Korea, only in conjunction with the 
        withdrawal of the 2d Infantry Division and support 
        forces from Korea, such United States Government-owned 
        defense articles as he may determine which are located 
        in Korea in the custody of units of the United States 
        Army scheduled to depart from Korea; and
          [(B) to furnish to the Republic of Korea, without 
        reimbursement, defense services (including technical 
        and operational training) in Korea directly related to 
        the United States Government-owned defense articles 
        transferred to the Republic of Korea under this 
        subsection.
    [(2) Any transfer under the authority of this section shall 
be made in accordance with all the terms and conditions of the 
Foreign Assistance Act of 1961 applicable to the furnishing of 
defense articles and defense services under chapter 2 of part 
II of that Act, except that no funds heretofore or hereafter 
appropriated under that Act shall be available to reimburse any 
agency of the United States Government for any such transfer or 
related services.
    [(b) In order that transfers of defense articles under 
subsection (a) will not cause significant adverse impact on the 
readiness of the Armed Forces of the United States, the 
President is authorized, in lieu of such transfers, to transfer 
additional defense articles from the stocks of the Department 
of Defense, wherever located, to the Republic of Korea to 
compensate for the military capability of defense articles 
withdrawn from Korea in any case where he determines that--
          [(1) the transfer of specific defense articles 
        located in Korea would have a significant adverse 
        impact on the readiness of the United States Armed 
        Forces;
          [(2) the defense capability provided by those defense 
        articles is needed by the Armed Forces of the Republic 
        of Korea in order to maintain the military balance on 
        the Korean peninsula; and
          [(3) a comparable defense capability could be 
        provided by less advance defense articles in the stocks 
        of the Department of Defense which could be transferred 
        without significant adverse impact on the readiness of 
        the United States Armed Forces.
[The President shall report to the Congress each determination 
made under this subsection prior to the transfer of the defense 
articles described in such determination.
    [(c) The President shall transmit to the Congress, together 
with the presentation materials for security assistance 
programs proposed for each fiscal year through and including 
the fiscal year 1983, a report describing the types, 
quantities, and value of defense articles furnished or intended 
to be furnished to the Republic of Korea under this section.]

           *       *       *       *       *       *       *

    [(e)(1) It is the sense of the Congress that further 
withdrawal of ground forces of the United States from the 
Republic of Korea may seriously risk upsetting the military 
balance in that region and requires full advance consultation 
with the Congress.]

           *       *       *       *       *       *       *


         [united states-republic of china mutual defense treaty

    [Sec. 26. (a) The Congress finds that--
          [(1) the continued security and stability of East 
        Asia is a matter of major strategic interest to the 
        United States;
          [(2) the United States and the Republic of China have 
        for a period of twenty-four years been linked together 
        by the Mutual Defense Treaty of 1954;
          [(3) the Republic of China has during that twenty-
        four-year period faithfully and continually carried out 
        its duties and obligations under that treaty; and
          [(4) it is the responsibility of the Senate to give 
        its advice and consent to treaties entered into by the 
        United States.
    [(b) It is the sense of the Congress that there should be 
prior consultation between the Congress and the executive 
branch on any proposed policy changes affecting the 
continuation in force of the Mutual Defense Treaty of 1954.]

           *       *       *       *       *       *       *


                 [negotiations between israel and egypt

    [Sec. 28. (a) The Congress finds that--
          [(1) a lasting settlement of the Arab-Israel conflict 
        is vital to United States national interests as well as 
        to the interests of the countries of the region;
          [(2) support for a strong and secure Israel and the 
        maintenance for this purpose of Israel's effective 
        defense capabilities as essential to peace remains a 
        fundamental tenet of United States foreign policy;
          [(3) direct, face-to-face negotiations between Israel 
        and Egypt without preconditions is a historic opening 
        for peace, and the support of such negotiations by 
        other moderate Arab countries, can best promote a peace 
        settlement based on mutual concessions and 
        accommodations;
          [(4) the establishment of secure, recognized, and 
        defensible borders between Israel and its neighbors 
        will discourage hostilities; and
          [(5) full, normalized relations between Israel and 
        its Arab neighbors, including trade, travel, tourism, 
        communications, and diplomatic relations are vital for 
        peace.
    [(b) It is the sense of the Congress that the Government of 
the United States should continue to promote direct 
negotiations between Israel and Egypt and to encourage other 
Arab countries to enter into negotiations leading to peace 
treaties with Israel.
    [(c) It is further the sense of the Congress that the 
United States should be responsive to Israel's economic needs 
and defense requirements, including the provision of additional 
advanced aircraft, in order to maintain Israel's defense 
capability which is essential to peace.]

           *       *       *       *       *       *       *


                           [savings provision

    [Sec. 30. Enactment of this Act shall not affect the 
authorizations of appropriations and limitations of authority 
applicable to the fiscal year 1978 which are contained in 
provisions of law amended by this Act (other than sections 31 
(a), (b), and (d) of the Arms Export Control Act).]

     The International Development and Food Assistance Act of 1977

                              short title

    Section 1. This Act may be cited as the ``International 
Development and Food Assistance Act of 1977.''

            TITLE I--INTERNATIONAL DEVELOPMENT ASSISTANCE

           *       *       *       *       *       *       *


                 [inspector general, foreign assistance

    [Sec. 124. (a)(1) * * *
    [(b) Section 5315 of title 5, United States Code, is 
amended by repealing paragraphs (52) and (53).
    [(c) The amendments made by this section shall take effect 
on July 1, 1978.]

           *       *       *       *       *       *       *


              [future united states development assistance

    [Sec. 131. It is the sense of the Congress that the United 
States should increase substantially its assistance for self-
help development among the world's poorest people. Such 
assistance should be provided in accordance with the general 
policies and principles of chapter 1 of part I of the Foreign 
Assistance Act of 1961, with particular emphasis on encouraging 
and supporting more equitable patterns of economic growth, 
especially in the poorest countries, and should be coordinated 
with similar expanded efforts by international organizations, 
donor nations, and the recipient countries themselves.]

                       [TITLE II--FOOD FOR PEACE]

           *       *       *       *       *       *       *


                            [effective date

    [Sec. 215. The provisions of this title shall become 
effective October 1, 1977.]

           The International Security Assistance Act of 1977

                              [short title

    Section 1. This Act may be cited as the ``International 
Security Assistance Act of 1977''.]

           *       *       *       *       *       *       *


           [security supporting assistance program for egypt

    [Sec. 9. It is the sense of the Congress that the security 
supporting assistance program for Egypt plays an important role 
in the Middle East peace effort and that the Executive branch 
should concentrate its efforts in order to make the program a 
success.]

           *       *       *       *       *       *       *


            [fiscal year 1977 authorizations and limitations

    [Sec. 21. Authorizations of appropriations and limitations 
of authority applicable to the fiscal year 1977 contained in 
provisions of law amended by this Act shall not be affected by 
enactment of this Act.]

           *       *       *       *       *       *       *


                     [study of technology transfers

    [Sec. 24. (a) The President shall conduct a comprehensive 
study of the policies and practices of the United States 
Government with respect to the national security and military 
implications of international transfers of technology in order 
to determine whether such policies and practices should be 
changed. Such study shall examine--
          [(1) the nature of technology transfer;
          [(2) the effect of technology transfers on United 
        States technological superiority;
          [(3) the rationale for transfers of technology from 
        the United States to foreign countries;
          [(4) the benefits and risks of such transfers;
          [(5) trends in technology transfers by the United 
        States and other countries;
          [(6) the need for controls on transfers of 
        technology, including controls on the use of 
        transferred technology, the effectiveness of existing 
        end-use controls, and possible unilateral sanctions if 
        end-use restrictions are violated;
          [(7) the effectiveness of existing organizational 
        arrangements in the Executive branch in regulating 
        technology transfers from the United States;
          [(8) the adequacy of existing legislation and 
        regulations with respect to transfers of technology 
        from the United States; and
          [(9) the possibilities for international agreements 
        with respect to transfers of technology.
    [(b) In conducting the study required by subsection (a), 
the President shall utilize the resources and expertise of the 
Arms Control and Disarmament Agency, the Department of State, 
the Department of Defense, the Department of Commerce, the 
National Science Foundation, the Office of Science and 
Technology Policy, and such other entities within the Executive 
branch as he deems necessary.]

           *       *       *       *       *       *       *


        [policy statement on united states arms sales to israel

    [Sec. 26. In accordance with the historic special 
relationship between the United States and Israel and previous 
agreements and continuing understandings, the Congress joins 
with the President in reaffirming that a policy of restraint in 
United States arms transfers, including arms sales ceilings, 
shall not impair Israel's deterrent strength or undermine the 
military balance in the Middle East.

           [review of arms sales controls on non-lethal items

    [Sec. 27. The President shall undertake a review of all 
regulations relating to arms control for the purpose of 
defining and categorizing lethal and non-lethal products and 
establishing the appropriate level of control for each 
category.

                           [republic of korea

    [Sec. 28. (a)(1) It is the sense of the Congress that the 
President should take all effective measures to assure that the 
Republic of Korea is cooperating fully with the investigation 
(including any resulting prosecutions) being conducted by the 
Department of Justice with respect to allegations of improper 
activity in the United States by agents of the Republic of 
Korea.]

           *       *       *       *       *       *       *

    [(b) It is the further sense of the Congress that the 
President should take all effective measures to assure that the 
Republic of Korea is cooperating fully with the investigations 
being conducted by committees of Congress.

                          [piaster conversion

    [Sec. 29. No provision of law shall be construed to prevent 
payment of claims of former and present Vietnamese employees of 
the Agency for International Development, who presently reside 
in the United States, for the conversion of Vietnamese piasters 
to dollars because such conversion cannot take place in the 
territory of the former Republic of Vietnam or because the 
official with whom such piasters were deposited was not a 
United States disbursing officer.]

 The International Security Assistance and Arms Export Control Act of 
1976

           *       *       *       *       *       *       *


             [international military education and training

    [Sec. 106. (a) * * *
    [(b) * * *
    [(c) Except as may be expressly provided to the contrary in 
this Act, all determinations, authorizations, regulations, 
orders, contracts, agreements, and other actions issued, 
undertaken, or entered into under authority of any provision of 
law amended or repealed by this section shall continue in full 
force and effect until modified, revoked, or superseded by 
appropriate authority.
    [(d) Funds made available pursuant to other provisions of 
law for foreign military educational and training activities 
shall remain available for obligation and expenditure for their 
original purposes in accordance with the provisions of law 
originally applicable to those purposes or in accordance with 
the provisions of law currently applicable to those purposes.]

           *       *       *       *       *       *       *


            [control of military forces in the indian ocean

    [Sec. 407. (a) It is the sense of Congress that the 
President should undertake to enter into negotiations with the 
Soviet Union intended to achieve an agreement limiting the 
deployment of naval, air, and land forces of the Soviet Union 
and the United States in the Indian Ocean and littoral 
countries. Such negotiations should be convened as soon as 
possible and should consider, among other things, limitations 
with respect to--
          [(1) the establishment or use of facilities for 
        naval, air, or land forces in the Indian Ocean and 
        littoral countries;
          [(2) the number of naval vessels which may be 
        deployed in the Indian Ocean, or the number of 
        ``shipdays'' allowed therein; and
          [(3) the type and number of military forces and 
        facilities allowed therein.]

           *       *       *       *       *       *       *


              [united states citizens imprisoned in mexico

    [Sec. 408. (a) The Congress, while sharing the concern of 
the President over the urgent need for international 
cooperation to restrict traffic in dangerous drugs, is 
convinced that such efforts must be consistent with respect for 
fundamental human rights. The Congress, therefore, calls upon 
the President to take steps to insure that United States 
efforts to secure stringent international law enforcement 
measures are combined with efforts to secure fair and humane 
treatment for citizens of all countries.
    [(b) The Congress requests that the President communicate 
directly to the President and Government of the Republic of 
Mexico, a nation with which we have friendly and cooperative 
relations, the continuing desire of the United States for such 
relations between our two countries and the concern of the 
United States over treatment of United States citizens arrested 
in Mexico.]

           *       *       *       *       *       *       *


                   [emergency food needs of portugal

    [Sec. 409. It is the sense of the Congress that the 
President should undertake immediately an evaluation of the 
emergency food needs of Portugal. It is further the sense of 
the Congress that the President should take timely action to 
alleviate such emergency by providing Portugal with food 
commodities under the provisions of pertinent statutes.

                           [strife in lebanon

    [Sec. 410. It is the sense of the Congress that the 
situation in Lebanon, a nation traditionally friendly to the 
United States, poses a danger to peace in the Middle East. The 
Congress deplores the armed civil strife and continuing erosion 
of national institutions which threaten to destroy the 
political and economic fabric of Lebanon with such tragic 
impact on all its people. The Congress views with grave concern 
any outside efforts to exploit the current strife with the 
purpose of transforming Lebanon into a radical state in 
confrontation with Israel. The Congress requests that the 
President use his good offices to secure an end to the civil 
strife and national discord in Lebanon and to preserve the 
traditional friendly attitude of Lebanon toward the United 
States.]

           *       *       *       *       *       *       *


                                 [korea

    [Sec. 412. The Congress views with distress the erosion of 
important civil liberties in the Republic of Korea and requests 
that the President communicate this concern in forceful terms 
to the Government of the Republic of Korea within sixty days 
after enactment.

                    [repeal of indochina assistance

    [Sec. 413. (a) Part V of the Foreign Assistance Act of 1961 
and sections 34, 35, 36, 37, 38, 39, and 40 of the Foreign 
Assistance Act of 1974 are repealed. All determinations, 
authorizations, regulations, orders, contracts, agreements, and 
other actions issued, undertaken, or entered into under 
authority of any provision of law repealed by this section 
shall continue in full force and effect until modified, 
revoked, or superseded by appropriate authority.
    [(b) Subject to the availability of appropriations 
therefore, the President is authorized to adopt as a contract 
of the United States Government, and assume any liabilities 
arising thereunder (in whole or in part), any contract which 
had been funded or approved for funding by the Agency for 
International Development prior to June 30, 1975, for financing 
with funds made available under the Foreign Assistance Act of 
1961 or the Foreign Assistance Act of 1974, or any equitable 
claim based upon a letter of intent issued prior to April 30, 
1975, in which the Agency had expressed its intention to 
finance a transaction subject to the availability of funds, 
between the former Governments of Vietnam or Cambodia 
(including any of their agencies) or the Government of Laos (or 
any of its agencies) and any person and to apply with respect 
to any such contract the authorities of the Foreign Assistance 
Act of 1961.
    [(c) Funds made available for the purposes of part V of the 
Foreign Assistance Act of 1961 and of section 36 of the Foreign 
Assistance Act of 1974 (including amounts certified pursuant to 
section 1311 of the Supplemental Appropriation Act, 1955 (31 
U.S.C. 200), as having been obligated against appropriations 
heretofore made) are authorized to be appropriated, and 
thereafter, to remain available until expended, to meet 
necessary expenses arising from the actions authorized by 
subsection (b) of this section and such funds are authorized to 
remain available until expended to meet necessary expenses 
arising from the termination of assistance programs authorized 
by such part and such section 36, which expenses may include 
but need not be limited to the settlement of claims and 
associated personnel costs]

           *       *       *       *       *       *       *


                    [interim quarter authorizations

    [Sec. 506. (a) Any authorization of appropriations in this 
Act, or in any amendment to any other law made by this Act, for 
the fiscal year 1976, shall be deemed to include an additional 
authorization of appropriations for the period beginning July 
1, 1976, and ending September 30, 1976, in amounts which equal 
one-fourth of any amount authorized for the fiscal year 1976 
and in accordance with the authorities applicable to operations 
and activities authorized under this Act or such other law, 
unless appropriations for the same purpose are specifically 
authorized in a law hereinafter enacted.
    [(b) The aggregate total of credits, including 
participations in credits, extended pursuant to the Arms Export 
Control Act and of the principal amount of loans guaranteed 
pursuant to section 24(a) of such Act during the period 
beginning July 1, 1976, and ending September 30, 1976, may not 
exceed an amount equal to one-fourth of the amount authorized 
by section 31(b) of such Act to be extended and guaranteed for 
the fiscal year 1976.]

           *       *       *       *       *       *       *


                  TITLE VI--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *


                  [procurements from small businesses

    [Sec. 602. In order to encourage procurements from small 
business concerns under chapter 4 of the Foreign Assistance Act 
of 1961, the Administrator of the Agency for International 
Development shall report to the Congress every six months on 
the extent to which small businesses have participated in 
procurements under such chapter and on what efforts the Agency 
has made to foster such procurements from small business 
concerns. The Small Business Administration shall lend all 
available assistance to the Agency for the purpose of carrying 
out this section.]

           *       *       *       *       *       *       *


                           [use of personnel

    [Sec. 605. (a) Nothing in this Act is intended to authorize 
any additional military or civilian personnel for the 
Department of Defense for the purposes of this Act, the Foreign 
Assistance Act of 1961, or the Arms Export Control Act. 
Personnel levels authorized in statutes authorizing 
appropriations for military and civilian personnel of the 
Department of Defense shall be controlling over all military 
and civilian personnel of the Department of Defense assigned to 
carry out functions under the Arms Export Control Act and the 
Foreign Assistance Act of 1961.]

           *       *       *       *       *       *       *


                    [extortion and illegal payments

    [Sec. 607. Within 60 days after receiving information which 
substantiates that officials of a foreign country receiving 
international security assistance have (1) received illegal or 
otherwise improper payments from a United States corporation in 
return for a contract to purchase defense articles or services 
from such corporation, or (2) extorted, or attempted to extort, 
money or other things of value in return for actions by 
officials of that country that permit a United States citizen 
or corporation to conduct business in that country, the 
President shall submit to Congress a report outlining the 
circumstances of such payment or extortion. The report shall 
contain a recommendation from the President as to whether the 
United States should continue a security assistance program for 
that country.]

The International Development and Food Assistance Act of 1975

           *       *       *       *       *       *       *


                   [limitation on assistance to chile

    [Sec. 320. Notwithstanding any other provision of law, the 
total amount of economic assistance (including but not limited 
to housing guaranties and sales under title I of the 
Agricultural Trade Development and Assistance Act of 1954) that 
may be made available to Chile may not exceed $90,000,000 
during the fiscal year 1976.

               [settlement of debt owed the united states

    [Sec. 321. No debt owed to the United States by any foreign 
country with respect to the payment of any loan made under any 
program funded under this Act may be settled in an amount less 
than the full amount of such debt unless the Congress by 
concurrent resolution approves of such settlement.

[participation by other countries in providing assistance to israel or 
                                 egypt

    [Sec. 322. It is the sense of the Senate that the President 
should attempt to negotiate an equitable share of participation 
by the countries of Western Europe, Japan, and the United 
Nations in providing assistance to Israel or Egypt.]

The Foreign Assistance Act of 1974

           *       *       *       *       *       *       *


                     [repayment of loans in default

    [Sec. 56. It is the sense of the Congress that any country 
receiving assistance under the Foreign Assistance Act of 1961 
which is in default, at least 90 days prior to the date of 
enactment of this Act, of any payment of principal or interest 
due on any loan or credit received from the United States shall 
promptly pay all such principal and interest. It is further the 
sense of the Congress that the President shall promptly enter 
into negotiations with each such country to help effectuate the 
payment of such principal and interest, or to effectuate the 
transfer by such country to the United States of goods, 
services, concessions, or actions beneficial to the United 
States, in lieu of the payment of such principal and interest.]

             The Emergency Security Assistance Act of 1973

    [Sec. 2. In addition to such amounts as may be otherwise 
authorized to be appropriated to the President for security 
assistance for the fiscal year 1974, there are hereby 
authorized to be appropriated to the President not to exceed 
$2,200,000,000 for emergency military assistance or foreign 
military sales credits, or for both as the President may 
determine, for Israel, of which sum amounts in excess of 
$1,500,000,000 may be used pursuant to this section or section 
4 of this Act only if the President (1) determines it to be 
important to our national interest that Israel receive 
assistance hereunder exceeding $1,500,000,000, and (2) reports 
to Congress each such determination (if more than one) at least 
twenty days prior to date on which funds are obligated or 
expended under this Act in excess of such $1,500,000,000 
limitation. The twenty- day requirement contained in the 
preceding sentence shall not apply if hostilities are renewed 
in the Middle East. The President shall include in his report 
the amount of funds to be used pursuant to the determination, 
the terms of the additional assistance under section 2 or 
section 4, and the justification for the determination. All 
information contained in the justification shall be public 
information except to the extent that the President concludes 
that publication would be incompatible with the security 
interests of the United States.
    [Sec. 3. Military assistance furnished out of funds 
appropriated under section 2 of this Act shall be furnished in 
accordance with all of the provisions applicable to military 
assistance under the Foreign Assistance Act of 1961 (75 Stat. 
424; Public Law 87-195), as amended. Foreign military sales 
credits extended to Israel out of such funds shall be provided 
on such terms and conditions as the President may determine and 
without regard to the provisions of the Foreign Military Sales 
Act (82 Stat. 1320; Public Law 90-629), as amended.
    [Sec. 4. At any time prior to June 30, 1974, the President 
is hereby authorized, within the limits of funds appropriated 
under section 2 of this Act for Israel, to release Israel from 
its contractual liability to pay for defense articles and 
defense services purchased or financed under the said Foreign 
Military Sales Act or under this Act during the period 
beginning October 6, 1973, and ending June 30, 1974, and such 
funds shall be used to reimburse current applicable 
appropriations, funds, and accounts of the Department of 
Defense for the value of such defense articles and defense 
services.]

           *       *       *       *       *       *       *

    [Sec. 6. Of the funds appropriated pursuant to section 2, 
the President may use such sums as may be necessary from time 
to time for payment by the United States of its share of the 
expenses of the United Nations Emergency Force in the Middle 
East, as apportioned by the United Nations in accordance with 
article 17 of the United Nations Charter.]

                  The Foreign Assistance Act of 1973

           *       *       *       *       *       *       *


                        [asian development bank

    [Sec. 28. Section 17 of the Asian Development Bank Act is 
amended by striking out ``$60,000,000 for fiscal year 1972 and 
$40,000,000 for fiscal year 1973'' and inserting in lieu 
thereof ``$100,000,000''.
    [Sec. 29. * * * [Repealed--1974]

                     [termination of indochina war

    [Sec. 30. No funds authorized or appropriated under this or 
any other law may be expended to finance military or 
paramilitary operations by the United States in or over 
Vietnam, Laos, or Cambodia.

                      [limitation on use of funds

    [Sec. 31. No funds authorized or appropriated under any 
provision of law shall be made available for the purpose of 
financing directly or indirectly any military or paramilitary 
combat operations by foreign forces in Laos, Cambodia, North 
Vietnam, South Vietnam, or Thailand unless (1) such operations 
are conducted by the forces of that government receiving such 
funds within the borders of that country, or (2) specifically 
authorized by law enacted after the date of enactment of this 
Act.

                          [political prisoners

    [Sec. 32. It is the sense of Congress that the President 
should deny any economic or military assistance to the 
government of any foreign country which practices the 
internment or imprisonment of that country's citizens for 
political purposes.

                      [albert schweitzer hospital

    [Sec. 33. There is authorized to be appropriated to the 
President for fiscal year 1974 $1,000,000 to make grants, on 
such terms and conditions as he may specify, to the Albert 
Schweitzer Hospital in Gabon.

          [prisoners of war and individuals missing in action

    [Sec. 34. (a) The Congress declares that--
          [(1) the families of those one thousand three hundred 
        individuals missing in action during the Indochina 
        conflict have suffered extraordinary torment in 
        ascertaining the full and complete information about 
        their loved ones who are formally classified as missing 
        in action;
          [(2) United States involvement in the Indochina 
        conflict has come to a negotiated end with the signing 
        of the Vietnam Agreement in Paris on January 27, 1973, 
        and section 307 of the Second Supplemental 
        Appropriations Act, 1973, requires that ``None of the 
        funds herein appropriated under this Act may be 
        expended to support directly or indirectly combat 
        activities in or over Cambodia, Laos, North Vietnam and 
        South Vietnam or off the shores of Cambodia, Laos, 
        North Vietnam and South Vietnam by United States 
        forces, and after August 15, 1973, no other funds 
        heretofore appropriated under any other Act may be 
        expended for such purpose.'';
          [(3) the question of the return of prisoners of war 
        and accounting for individuals missing in action and 
        dead in Laos is covered by article 18 of the Protocol 
        signed by representatives of the Lao Patriotic Front 
        (Pathet Lao) and the Royal Laotian Government in 
        Vientiane on September 14, 1973 (which implements 
        article 5 of the Agreement signed by the Pathet Lao and 
        that government in Vientiane on February 21, 1973, 
        requiring the release of all prisoners ``regardless of 
        nationality'' captured and held in Laos), and paragraph 
        C of such article 18 provides that, within ``15 to 30 
        days'' from the date of the signing of the Protocol, 
        each side is to report the number of those prisoners 
        and individuals still held, with an indication of their 
        nationality and status, together with a list of names 
        and any who died in captivity; and
          [(4) few of the United States men lost in Laos during 
        the military engagements in Indochina have been 
        returned, and with knowledge about many of these men 
        not yet being fully disclosed, and the North Vietnam 
        cease-fire provisions calling for inspection of crash 
        and grave sites and for other forms of cooperation have 
        not been fully complied with.
    [(b) It is, therefore, the sense of the Congress that--
          [(1) the provisions for the release of prisoners and 
        an accounting of individuals missing and dead, as 
        provided for in article 18 of the Protocol signed on 
        September 14, 1973, by the Pathet Lao and the Royal 
        Laotian Government, be adhered to in spirit and in 
        deed; and
          [(2) the faithful compliance with the spirit of the 
        Laotian Agreement and Protocol on the question of 
        individuals missing in action will encourage all 
        parties in Indochina to cooperate in providing complete 
        information on all nationals of any nation who may be 
        captured or missing at any place in Indochina.

                            [rights in chile

    [Sec. 35. It is the sense of the Congress that (1) the 
President should request the Government of Chile to protect the 
human rights of all individuals, Chilean and foreign, as 
provided in the Universal Declaration of Human Rights, the 
Convention and Protocol Relating the Status of Refugees, and 
other relevant international legal instruments guaranteeing the 
granting of asylum, safe conduct, and the humane treatment or 
release of prisoners; (2) the President should support 
international humanitarian initiatives by the United Nations 
High Commissioner for Refugees and the International Committee 
of the Red Cross to insure the protection and safe conduct and 
resettlement of political refugees, the humane treatment of 
political prisoners, and the full inspection of detention 
facilities under international auspices; (3) the President 
should support and facilitate efforts by voluntary agencies to 
meet emergency relief needs; and (4) the President should 
request of the Inter-American Commission on Human Rights to 
undertake an immediate inquiry into recent events occurring in 
Chile.]

           *       *       *       *       *       *       *


                         [world food shortages

    [Sec. 39. (a) It is the sense of the Congress that the 
United States should participate fully in efforts to alleviate 
current and future food shortages which threaten the world. To 
this end, the President shall--
          [(1) encourage, support, and expedite studies 
        relating to the long-range implications of the world 
        food situation (including studies of national and world 
        production, distribution, and utilization of 
        agricultural commodities and other foodstuffs) and 
        support the organizing of a world food conference under 
        United Nations auspices in 1974;
          [(2) request the member nations of the General 
        Agreement on Tariffs and Trade to explore the means of 
        assuring equitable access by all nations to national 
        markets and mineral and agricultural resources;
          [(3) Consult and cooperate with appropriate 
        international agencies, such as the Food and 
        Agricultural Organization of the United Nations, in 
        determining the need for, the feasibility of, and cost 
        of an equitably-shared basis of, establishing an 
        international system of strategic food reserves; and
          [(4) report his findings and recommendations to the 
        Congress on the implementation of this section no later 
        than December 31, 1974.
    [(b) It is further the sense of the Congress that--
          [(1) in making assessments which would affect or 
        relate to the level of domestic production, the 
        Executive Branch should include in the estimates of 
        overall utilization the expected demands for 
        humanitarian food assistance through such programs as 
        are carried out under the Agricultural Trade 
        Development and Assistance Act of 1954 (Public Law 
        480); and
          [(2) legislation providing increased flexibility for 
        responding to emergency and humanitarian requirements 
        for food assistance should be considered as promptly as 
        possible to the end that the last sentence of section 
        401 of the Agricultural Trade Development and 
        Assistance Act of 1954 (Public Law 480), may be amended 
        by striking the period and inserting in lieu thereof a 
        comma and the following: ``unless the Secretary 
        determines that some part of the exportable supply 
        should be used to carry out the national interest and 
        humanitarian objectives of this Act.''

                        [use of local currencies

    [Sec. 40. Effective July 1, 1974, no amount of any foreign 
currency (including principal and interest from loan 
repayments) which accrues in connection with any sale for 
foreign currency under any provision of law may be used under 
any agreement entered into after the date of the enactment of 
this Act, or any revision or extension entered into after such 
date of any prior or subsequent agreement, to provide any 
assistance to any foreign country to procure equipment, 
materials, facilities, or services for the common defense, 
including internal security unless such agreement is 
specifically authorized by legislation enacted after such 
date.]

                   The Foreign Assistance Act of 1971

                        [food-for-peace program

    [Sec. 2. It is the sense of the Congress that funds to 
administer the food-for-peace program should not be reduced as 
the result of any reduction in the authorizations provided to 
carry out the Foreign Assistance Act of 1961.]

           *       *       *       *       *       *       *

    [Sec. 304. * * *
    [(c) * * *
    [(3) The provisions of this subsection and section 657 of 
such Act, as added by subsection (b) of this Act, shall apply 
with respect to each fiscal year commencing on or after July 1, 
1971.

                  [PART IV--MISCELLANEOUS PROVISIONS]

           *       *       *       *       *       *       *


    [Sec. 403. Paragraph (9) of section 5314 of title 5, United 
States Code, relating to level III of the Executive Schedule, 
is amended by inserting before the period at the end thereof 
the following: ``and an Under Secretary of State for 
Coordinating Security Assistance Programs''.]

           *       *       *       *       *       *       *

    [Sec. 407. (a) It is the purpose of this section to enable 
the Congress generally, and the Committee on Foreign Relations 
of the Senate and the Committee on Foreign Affairs of the House 
of Representatives in particular, to carry out the purposes and 
intent of the Legislative Reorganization Acts of 1946 and 1970, 
with respect to--
          [(1) the analysis, appraisal, and evaluation of the 
        application, administration, and execution of the laws 
        relating to the Department of State and the United 
        States Information Agency and of matters relating to 
        the foreign relations of the United States; and
          [(2) providing periodic authorizations of 
        appropriations for that Department and Agency.]

           *       *       *       *       *       *       *

    [Sec. 410. The Congress strongly urges the President to 
undertake such negotiations as may be necessary to implement 
that portion of the recommendations of the Report of the 
President's Commission for the Observance of the Twenty-fifth 
Anniversary of the United Nations (known as the ``Lodge 
Commission'') which proposes that the portion of the regular 
assessed costs to be paid by the United States to the United 
Nations be reduced so that the United States is assessed in 
each year not more than 25 per centum of such costs assessed 
all members of the United Nations for that year.]

        The Special Foreign Assistance Act of 1971, as amended

           *       *       *       *       *       *       *


    [Sec. 2. There are authorized to be appropriated to the 
President for the fiscal year 1971 not to exceed--
          [(1) $85,000,000 for additional military assistance 
        and $70,000,000 for special economic assistance for 
        Cambodia;
          [(2) $100,000,000 for economic and military 
        assistance programs to replace funds which were 
        transferred by the President for use in Cambodia;
          [(3) $150,000,000 for additional military assistance 
        for the Republic of Korea;
          [(4) $30,000,000 for additional military assistance 
        for Jordan;
          [(5) $3,000,000 for additional military assistance 
        for Indonesia and $10,000,000 to replace funds 
        transferred from other programs for use in Indonesia;
          [(6) $5,000,000 for additional military assistance 
        for Lebanon;
          [(7) $65,000,000 for additional supporting assistance 
        for Vietnam; and
          [(8) $17,000,000 for additional general military 
        assistance to compensate for a shortage in anticipated 
        recovery of funds from past years' programs.
    [Sec. 3. The President is authorized, until June 30, 1972, 
to transfer to the Republic of Korea such defense articles 
located in Korea and belonging to the Armed Forces of the 
United States on July 1, 1970, as he may determine, except that 
no funds heretofore or hereafter appropriated under this Act or 
the Foreign Assistance Act of 1961 shall be available for 
reimbursement to any agency of the United States Government for 
any transfer made pursuant to this section.
    [Sec. 4. Except as otherwise provided in this Act, any 
assistance furnished out of funds appropriated under section 2 
of this Act and any transfer made under section 3 of this Act 
shall be furnished or transferred, as the case may be, in 
accordance with all of the purposes and limitations applicable 
by statute to that type of assistance or transfer under the 
Foreign Assistance Act of 1961 (including the provisions of 
section 652 of such Act, as added by section 8 of this Act).]

           *       *       *       *       *       *       *

    [Sec. 6. (a) * * *
    [(b) Excess foreign currencies held in Pakistan not 
allocated on the date of enactment of this section are 
authorized to be appropriated for a period of one year from 
such date of enactment to help Pakistan withstand the disaster 
which has occurred.
    [Sec. 7. (a) In line with the expressed intention of the 
President of the United States, none of the funds authorized or 
appropriated pursuant to this or any other Act may be used to 
finance the introduction of United States ground combat troops 
into Cambodia, or to provide United States advisers to or for 
military, paramilitary, police, or other security or 
intelligence forces in Cambodia.
    [(b) Military and economic assistance provided by the 
United States to Cambodia and authorized or appropriated 
pursuant to this or any other Act shall not be construed as a 
commitment by the United States to Cambodia for its defense.]

           *       *       *       *       *       *       *


       The Foreign Military Sales Act Amendments, 1971, as amended

           *       *       *       *       *       *       *


    [Sec. 5. It is the sense of Congress that (1) the President 
should continue to press forward urgently with his efforts to 
negotiate with the Soviet Union and other powers a limitation 
on arms shipments to the Middle East, (2) the President should 
be supported in his position that arms will be made available 
and credits provided to Israel and other friendly states, to 
the extent that the President determines such assistance to be 
needed in order to meet threats to the security and 
independence of such states, and (3) if the authorization 
provided in the Foreign Military Sales Act, as amended, should 
prove to be insufficient to effectuate this stated policy, the 
President should promptly submit to the Congress requests for 
an appropriate supplementary authorization and appropriation.
    [Sec. 6. It is the sense of the Congress that--
          [(1) the President should immediately institute a 
        thorough and comprehensive review of the military aid 
        programs of the United States, particularly with 
        respect to the military assistance and sales operations 
        of the Department of Defense, and
          [(2) the President should take such actions as may be 
        appropriate--
                  [(A) to initiate multilateral discussions 
                among the United States, the Union of Soviet 
                Socialist Republics, Great Britain, France, 
                West Germany, Italy and other countries on the 
                control of the worldwide trade in armaments,
                  [(B) to commence a general debate in the 
                United Nations with respect to the control of 
                the conventional arms trade, and
                  [(C) to use the power and prestige of his 
                office to signify the intention of the United 
                States to work actively with all nations to 
                check and control the international sales and 
                distribution of conventional weapons of death 
                and destruction.]

           *       *       *       *       *       *       *

    [Sec. 7. * * *
    [(d) The President shall promptly and fully inform the 
Speaker of the House of Representatives and the Committee on 
Foreign Relations and the Committee on Appropriations of the 
Senate of each decision to furnish on a grant basis to any 
country excess defense articles which are major weapons systems 
to the extent such major weapons system was not included in the 
presentation material previously submitted to the Congress. The 
annual presentation materials for security assistance programs 
shall include a table listing by country the total value of all 
deliveries of excess defense articles, disclosing both the 
aggregate original acquisition cost and the aggregate value at 
the time of delivery.]

           *       *       *       *       *       *       *

    [Sec. 11. For purposes of sections 8 and 9--
          [(1) ``defense article'' and ``excess defense 
        articles'' have the same meanings as given them in 
        section 644 (d) and (g), respectively, of the Foreign 
        Assistance Act of 1961; and
          [(2) ``foreign country'' includes any department, 
        agency, or independent establishment of the foreign 
        country.
    [Sec. 12. The joint resolution entitled ``Joint resolution 
to promote the maintenance of international peace and security 
in Southeast Asia'' approved August 10, 1964 (78 Stat. 384; 
Public Law 88-408), is terminated effective upon the day that 
the second session of the Ninety-first Congress is last 
adjourned.
    [Sec. 13. No funds authorized or appropriated pursuant to 
this or any other law may be used to transport chemical 
munitions from the Island of Okinawa to the United States. Such 
funds as are necessary for the detoxification or destruction of 
the above described chemical munitions are hereby authorized 
and shall be used for the detoxification or destruction of 
chemical munitions only outside the United States. For purposes 
of this section, the term ``United States'' means the several 
States and the District of Columbia.]

                  The Foreign Assistance Act of 1968
  
           *       *       *       *       *       *       *


          [PART V--REAPPRAISAL OF FOREIGN ASSISTANCE PROGRAMS

                         [declaration of policy

    [Sec. 501. The Congress declares that, in view of changing 
world conditions and the continued need to make United States 
foreign assistance programs an effective implement of United 
States foreign policy, there should be a comprehensive review 
and reorganization of all United States foreign assistance 
programs, including economic development and technical 
assistance programs, military assistance and sales programs, 
and programs involving contributions and payments by the United 
States to international lending institutions and other 
international organizations concerned with the development of 
friendly foreign countries and areas.

                     [reappraisal by the president

    [Sec. 502. (a) In furtherance of the policy of this part, 
the President is requested to make a thorough and comprehensive 
reappraisal of United States foreign assistance programs, as 
described in section 501, and to submit to the Congress, on or 
before March 31, 1970, his recommendations for achieving such 
reforms in any reorganization of future foreign assistance 
programs as he determines to be necessary and appropriate in 
the national interest in the light of such reappraisal. The 
President is requested to submit to the Congress, on or before 
July 1, 1969, an interim report presenting any preliminary 
recommendations formulated by him pursuant to this section.
    [(b) It is the sense of the Congress that the reappraisal 
provided for in subsection (a) should include, but not be 
limited to, an analysis and consideration of proposals 
concerning the establishment of a Government corporation or a 
federally chartered private corporation designed to mobilize 
and facilitate the use of United States private capital and 
skills in less developed friendly countries and areas, 
including whether such corporation should be authorized to--
          [(1) utilize Government guarantees and funds as well 
        as private funds;
          [(2) seek, develop, promote, and underwrite new 
        investment projects;
          [(3) assist in transferring skills and technology to 
        less developed friendly countries and areas; and
          [(4) invest in the securities of development 
        financing institutions and assist in the formation and 
        expansion of local capital markets.]

                  The Foreign Assistance Act of 1964

           *       *       *       *       *       *       *


                     [PART V--RELIGIOUS PERSECUTION

    [Sec. 501. It is the sense of the Congress that the United 
States deeply believes in the freedom of religion for all 
people and is opposed to infringement of this freedom anywhere 
in the world. The Congress condemns the persecution of any 
persons because of their religion. It is further the sense of 
Congress that all persons should be permitted the free exercise 
of religion and the pursuit of their culture.]

                   The Latin American Development Act

                          [statement of policy

    [Sec. 1. (a) It is the sense of the Congress that--
          [(1) the historic, economic, political, and 
        geographic relationships among the American Republics 
        are unique and of special significance and, as 
        appropriate, should be so recognized in future 
        legislation;
          [(2) although governmental forms differ among the 
        American Republics, the peoples of all the Americas are 
        dedicated to the creation and maintenance of 
        governments which will promote individual freedom;
          [(3) the interests of the American Republics are so 
        interrelated that sound social and economic progress in 
        each is of importance to all and that lack of it in any 
        American Republic may have serious repercussions in 
        others;
          [(4) for the peoples of Latin America to continue to 
        progress within the framework of our common heritage of 
        democratic ideals, there is a compelling need for the 
        achievement of social and economic advance adequate to 
        meet the legitimate aspirations of the individual 
        citizens of the countries of Latin America for a better 
        way of life;
          [(5) there is a need for a plan of hemispheric 
        development, open to all American Republics which 
        cooperate in such plan, based upon a strong production 
        effort, the expansion of foreign trade, the creation 
        and maintenance of internal financial stability, the 
        growth of free economic and social institutions, and 
        the development of economic cooperation, including all 
        possible steps to establish and maintain equitable 
        rates of exchange and to bring about the progressive 
        elimination of trade barriers;
          [(6) mindful of the advantages which the United 
        States has enjoyed through the existence of a large 
        domestic market with no internal trade barriers, and 
        believing that similar advantages can accrue to all 
        countries, it is the hope of the people of the United 
        States that all American Republics will jointly exert 
        sustained common efforts which will speedily achieve 
        that economic cooperation in the Western Hemisphere 
        which is essential for lasting peace and prosperity; 
        and
          [(7) accordingly, it is declared to be the policy of 
        the people of the United States to sustain and 
        strengthen principles of individual liberty, free 
        institutions, private enterprise, and genuine 
        independence in the Western Hemisphere through 
        cooperation with all American Republics which 
        participate in a joint development program based upon 
        self-help and mutual efforts.
    [(b) In order to carry forward the above policy, the 
Congress hereby--
          [(1) urges the President through our constitutional 
        processes to develop cooperative programs on a 
        bilateral or multilateral basis which will set forth 
        specific plans of action designed to foster economic 
        progress and improvements in the welfare and level of 
        living of all the peoples of the American Republics on 
        the basis of joint aid, mutual effort, and common 
        sacrifice;
          [(2) proposes the development of workable procedures 
        to expand hemispheric trade and to moderate extreme 
        price fluctuations in commodities which are of 
        exceptional importance in the economies of the American 
        Republics, and encourages the development of regional 
        economic cooperation among the American Republics;
          [(3) supports the development of a more accurate and 
        sympathetic understanding among the peoples of the 
        American Republics through a greater interchange of 
        persons, ideas, techniques, and educational, 
        scientific, and cultural achievements;
          [(4) supports the strengthening of free democratic 
        trade unions to raise standards of living through 
        improved management-labor relations;
          [(5) favors the progressive development of common 
        standards with respect to the rights and the 
        responsibilities of private investment with flows 
        across national boundaries within the Western 
        Hemisphere;
          [(6) supports the consolidation of the public 
        institutions and agencies of inter-American 
        cooperation, insofar as feasible, within the structure 
        of the Organization of American States and the 
        strengthening of the personnel resources and authority 
        of the Organization in order that it may play a role of 
        increasing importance in all aspects of hemispheric 
        cooperation; and
          [(7) declares that it is prepared to give careful and 
        sympathetic consideration to programs which the 
        President may develop for the purpose of promoting 
        these policies.

                             [authorization

    [Sec. 2. In order to carry out the purposes of section 1 of 
this Act, there is hereby authorized to be appropriated to the 
President not to exceed $680,000,000, which shall remain 
available until expended, and which the President may use, 
subject to such further legislative provisions as may be 
enacted, in addition to other funds available for such 
purposes, on such terms and conditions as he may specify: 
Provided, That none of the funds made available pursuant to 
this section shall be used to furnish assistance to any country 
in Latin America being subjected to economic or diplomatic 
sanctions by the Organization of American States. The Secretary 
of State shall keep the Committee on Foreign Relations of the 
Senate and the Committee on Foreign Affairs of the House 
currently informed about plans and programs for the utilization 
of such funds.

           [special authorization for chilean reconstruction

    [Sec. 3. There is hereby authorized to be appropriated to 
the President not to exceed $100,000,000, which shall remain 
available until expended, for use, in addition to other funds 
available for such purposes, in the reconstruction and 
rehabilitation of Chile on such terms and conditions as the 
President may specify.

                          [general provisions

    [Sec. 4. (a) Funds appropriated under sections 2 and 3 of 
this Act may be used for assistance under this Act pursuant to 
such provisions applicable to the furnishing of such assistance 
contained in any successor Act to the Mutual Security Act of 
1954, as amended, as the President determines to be necessary 
to carry out the purposes for which such funds are 
appropriated.
    [(b) Of the funds appropriated under section 2 of this Act 
not more than $800,000 shall be available only for assisting in 
transporting to and settling in Latin America selected 
immigrants from that portion of the Ryukyuan Archipelago under 
United States administration.]

                    The Mutual Security Act of 1959

           *       *       *       *       *       *       *


 [Chapter V--International Cooperation in Health; Colombo Plan Council 
for Technical Cooperation]

           *       *       *       *       *       *       *


            [colombo plan council for technical cooperation

    [Sec. 502. To enable the United States to maintain 
membership in the Colombo Plan Council for Technical 
Cooperation, there is hereby authorized to be appropriated from 
time to time to the Department of State such sums as may be 
necessary for the payment by the United States of its share of 
the expenses of the Colombo Plan Council for Technical 
Cooperation.]

                      Mutual Security Act of 1954

           *       *       *       *       *       *       *


    [Sec. 402. * * * [Repealed--1996]

           *       *       *       *       *       *       *

    [Sec. 417. Irish Counterpart.--Pursuant to section 
115(b)(6) of the Economic Cooperation Act of 1948, as amended, 
the disposition within Ireland of the unencumbered balance, in 
the amount of approximately 6,000,000 Irish pounds, of the 
special account of Irish funds established under article IV of 
the Economic Cooperation Agreement between the United States of 
America and Ireland, dated June 28, 1948, for the purposes of--
          [(1) scholarship exchange between the United States 
        and Ireland;
          [(2) other programs and projects (including the 
        establishment of an Agricultural Institute) to improve 
        and develop the agricultural production and marketing 
        potential of Ireland and to increase the production and 
        efficiency of Irish industry; and
          [(3) development programs and projects in aid of the 
        foregoing objectives, is hereby approved, as provided 
        in the agreement between the Government of the United 
        States of America and the Government of Ireland, dated 
        June 17, 1954.]

                                  
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