[Senate Report 108-56]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 116
108th Congress                                                   Report
                                 SENATE
 1st Session                                                     108-56

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



 
                 FOREIGN ASSISTANCE AUTHORIZATION ACT,
                            FISCAL YEAR 2004

                                _______
                                

                  May 29, 2003.--Ordered to be printed

   Filed under authority of the order of the Senate of May 23, 2003.

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 1161]

    The Committee on Foreign Relations, having had under 
consideration an original bill to authorize appropriations for 
foreign assistance programs for fiscal year 2004, reports 
favorably thereon with amendments and recommends that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
  I. Purpose..........................................................1
 II. Committee Action.................................................2
III. Funding for Foreign Operations Programs..........................4
 IV. Section-by-Section Analysis......................................5
  V. Regulatory Impact Statement.....................................34
 VI. Cost Estimate...................................................34
VII. Changes in Existing Law.........................................34

                               I. Purpose

    The Foreign Assistance Authorization Act, Fiscal Year 2004, 
authorizes funding for a majority of United States economic, 
security and humanitarian aid programs. In addition, it revises 
and updates existing authorities to make them consistent with 
current practices. The bill authorizes full United States 
participation in several multilateral development bank 
replenishments, and includes two new initiatives, the 
Radiological Terrorism Threat Reduction Act, and the Global 
Pathogen Surveillance Act.

                          II. Committee Action

    The Committee held a series of public hearings this year 
focused on the issues addressed in this legislation. On 
February 6, Secretary of State Colin Powell testified regarding 
the President's budget request for international affairs. On 
March 18, State Department officials testified on the 
Department's role as coordinator of the non-military war on 
terrorism overseas. The non-proliferation programs of the 
Department were the focus of a hearing on March 19. On March 26 
and April 2, the Committee held two hearings on the role that 
U.S. foreign assistance can play in six regions of the world: 
the Near East, South Asia, East Asia, Eurasia, the Western 
Hemisphere, and Africa. At these two hearings, the Committee 
heard testimony from six regional Assistant Secretaries of 
State and their United States Agency for International 
Development (USAID) counterparts. The Committee also held a 
hearing on the President's proposed Millennium Challenge 
Account on March 4. In other hearings and briefings on such 
issues as the UN Security Council deliberations on Iraq, 
developments on the Korean Peninsula, negotiations with Turkey, 
global hunger, plans for post-conflict Iraq, and the difficult 
task of helping to build a prosperous and stable Afghanistan, 
the Committee has probed issues related to the authorization of 
foreign assistance.
    In these hearings and briefings, the Committee examined how 
the Administration's 2004 budget request will support U.S. 
foreign policy interests. This process was very informative for 
Committee members as they undertook the task of writing a 
foreign assistance authorization bill that carefully examines 
existing programs and addresses emerging needs.
    Since the mid-1980s, Congress has not fulfilled its 
responsibility to pass an Omnibus Foreign Assistance 
Authorization Act. Several discrete measures, such as the 
FREEDOM Support Act, the SEED Act, Security Assistance Acts, 
and other assistance bills have been enacted. But in the 
absence of a comprehensive authorization, much of the 
responsibility for providing guidance for foreign assistance 
policy has fallen to the Appropriations Committees. 
Appropriators have kept our foreign assistance programs going, 
but in many cases, they have had to do so without proper 
authorization. Appropriators have frequently had to waive the 
legal requirement for an authorization bill.
    The Senate Foreign Relations Committee intends that this 
legislation will help reinforce the Committee's role in the 
foreign assistance process. We appreciate the cooperation and 
consultations provided by the State Department, USAID, and the 
Appropriations Committee.
    This legislation authorizes funding levels for most of the 
foreign operations accounts within Function 150 for fiscal year 
2004. The Committee used the request submitted by the President 
last February as a starting point. The executive branch works 
with our embassies around the world to develop its budget 
requests. That information was supplemented by the hearings and 
briefings cited above, as well as discussions associated with 
the State Department authorization bill.
    With this information, the Committee has reported a bill 
that stays within the Budget Resolution's funding levels. The 
Budget Committee reduced the President's requested amount for 
the Function 150 account by $1.15 billion. In response, the 
Chairman of the Senate Foreign Relations Committee proposed an 
amendment to the Budget Resolution that sought to restore this 
cut. That amendment was successful in restoring the amount 
requested by the Administration for the Function 150 account. 
In this effort, the Foreign Relations Committee worked with the 
Budget Committee and within the rules to achieve the final 
funding levels applicable to the Function 150 account. Many 
members of the Committee would like to have more funding 
available. Having worked within the Budget process, however, 
the Committee has complied with the limits set down in the 
Budget Resolution.
    The Committee has made relatively few changes to the 
amounts requested by the President. This bill provides a $70 
million increase to fund activities under the FREEDOM Support 
Act (FSA), a $40 million increase for the Support for Eastern 
European Democracy (SEED) Act, a $15 million increase for 
Development Assistance, a $6 million increase for Peacekeeping 
Operations, and a $100 million increase for the Non-
proliferation, Anti-terrorism, Demining and Related Programs 
(NADR) account.
    On the other side of the ledger, the Committee made a small 
cut in the Andean Counterdrug Initiative. It has been reduced 
from $731 million to $700 million, the amount appropriated in 
the previous fiscal year. In addition, the Committee has 
authorized two new contingency funds at the request of the 
President: the Complex Foreign Crises Fund and the Famine Fund. 
But the Committee has not authorized specific amounts for these 
Funds. The Committee chose to address the President's proposed 
Millennium Challenge Account as a distinct bill, separate from 
the foreign assistance authorization bill.
    At a Committee meeting on March 21, 2003, the Committee 
considered an original bill presented by the Chairman. A number 
of amendments to the bill were adopted, by voice vote:

   An amendment by Senator Boxer expressing the policy 
        of the United States to work toward the participation 
        of women in the reconstruction of Iraq.
   An amendment by Senator Dodd to add restrictions 
        with respect to assistance to Colombia for fiscal year 
        2004.
   An amendment by Senator Dodd to authorize assistance 
        for programs to educate children in Afghanistan and 
        other affected areas about the dangers of landmines and 
        other unexploded ordinances.
   An amendment by Senator Feingold to express the 
        sense of the Congress related to support for peaceful 
        development in Sierra Leone, to require a report on the 
        feasibility of establishing a United States Mission in 
        Sierra Leone, and to authorize funds in support of 
        programs for Sierra Leone.
   An amendment by Senator Feingold to authorize funds 
        to support independent media in Ethiopia.
   An amendment by Senator Feingold expressing the 
        policy of the United States to support accountability 
        for human rights abuses and crimes against humanity in 
        Central Africa; to require a report on the actions 
        taken by the United States to implement this policy; 
        and to authorize funds to support the development of 
        justice and reconciliation mechanisms in the region.
   An amendment by Senator Feingold to: authorize funds 
        for support of the African Contingency Operations 
        Training and Assistance Program (ACOTA); establish 
        eligibility criteria for participation in ACOTA; 
        express the sense of Congress that the Department of 
        State should provide information about ACOTA training 
        to nationals of participating countries; and to express 
        the sense of Congress that the Department of State 
        should provide to Congress a report on the performance 
        and conduct of military units receiving ACOTA 
        assistance.
   An amendment by Senator Feingold to impose a 
        certification condition on certain assistance to the 
        Government of Indonesia or the Indonesian Armed Forces.
   An amendment by Senator Enzi to express the sense of 
        Congress relating to exports of defense items to the 
        United Kingdom.
   An amendment by Senator Enzi to exempt certain 
        transfers of marketing information directly related to 
        the sale of commercial communications satellites and 
        related parts from the licensing requirements of the 
        Arms Export Control Act.

    The following amendment was adopted following a roll-call vote:

   An amendment by Senator Dodd to include certain 
        nations of the Caribbean Region to the list of 
        countries eligible for assistance from the Combat HIV/
        AIDS Globally Fund, adopted by a vote of 11 to 7. Ayes: 
        Senators Hagel, Sununu, Biden, Sarbanes, Dodd, Kerry, 
        Feingold, Boxer, Nelson, Rockefeller, and Corzine. 
        Nays: Senators Lugar, Chaffee, Allen, Enzi, Voinovich, 
        Alexander, and Coleman.

    The Committee ordered the bill reported, as amended, by a 
vote of 19 to 0. Ayes: Senators Lugar, Hagel, Chafee, Allen, 
Brownback, Enzi, Voinovich, Alexander, Coleman, Sununu, Biden, 
Sarbanes, Dodd, Kerry, Feingold, Boxer, Nelson, Rockefeller, 
and Corzine.

              III. Funding for Foreign Operations Programs


                                     funding for foreign operations programs
                                          [in millions of U.S. dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  FY 03     FY 03     FY 03     FY 04     FY 04
                  Foreign Operations Programs                    Reg.\1\    Sup.      Total    Request    Auth.
----------------------------------------------------------------------------------------------------------------
  TOTAL.......................................................    13,403     4,927    18,330    15,434  \2\15,03
                                                                                                               4
================================================================================================================
Child Survival and Health Programs Fund (CSH).................     1,825        90     1,915     1,495     1,495
Development Assistance........................................     1,380        --     1,380     1,345     1,360
International Disaster Assistance.............................       288       144       432       236       236
Transition Initiatives........................................        50        --        50        55        55
USAID Operating Expenses (OE).................................       568        25       593       604       604
USAID Credit Programs.........................................         8        --         8         8         8
USAID Capital Investment Fund.................................        43        --        43       146       146
USAID Inspector General.......................................        33        --        33        35        35
Economic Support Fund (ESF)...................................     2,255     2,422     4,677     2,535     2,535
Support for Eastern European Democracy (SEED).................       522        --       522       435       475
Assistance for the Independent States (FSA/NIS)...............       755        --       755       576       646
Inter-American Foundation.....................................        16        --        16        15        15
African Development Foundation................................        19        --        19        18        18
Millennium Challenge Account..................................        --        --        --     1,300     1,000
International Narcotics Control and Law Enforcement (INCLE)...       196        25       221       285       285
Andean Counterdrug Initiative (ACI)...........................       696        34       730       731       700
Nonproliferation, Anti-Terrorism, Demining (NADR).............       304        28       332       385       485
Treasury Technical Assistance.................................        11        --        11        14        14
International Military Education & Training (IMET)............        80        --        80        92        92
Foreign Military Financing (FMF)..............................     4,046     2,059     6,105     4,414     4,414
Peacekeeping Operations (PKO).................................       114       100       214        95       101
International Organizations & Programs (IO&P) \3\.............       194        --       194       315       315
U.S. Emergency Fund for Complex Foreign Crises................        --        --        --       100        --
Famine Fund...................................................        --        --        --       200       --
----------------------------------------------------------------------------------------------------------------
\1\ Amounts adjusted to reflect a rescission of 0.65%
\2\ The reduction to this account was necessary becuse of increases made to State Department operating accounts
  in S. 925.
\3\ FY 04 amounts include $120 million for UNICEF which was funded in FY03 in the CSH account.

                    IV. Section-by-Section Analysis


                TITLE I--AUTHORIZATION OF APPROPRIATIONS


 SUBTITLE A--DEVELOPMENT ASSISTANCE AND RELATED PROGRAMS AUTHORIZATIONS

Sec. 101. Development Assistance

    This section authorizes the appropriation of $1,360,000,000 
for Development Assistance programs as requested, including 
programs in the agriculture, education, environment sectors, as 
well as the Development Fund for Africa. Although there are 
various separate accounts in the Foreign Assistance Act 
authorizing Development Assistance, funding for those accounts 
has been consolidated into this single account and appropriated 
in this manner in recent years.

Sec. 102. Child Survival and Health Programs Fund

    This section authorizes the appropriation of $1,495,000,000 
for child survival, health, and family planning programs for 
fiscal year 2004, the same amount as proposed by the President. 
This account provides funding for a variety of accounts that 
are separately authorized in the Foreign Assistance Act but 
have been appropriated out of this single account in recent 
years.

Sec. 103. Development Credit Authority

    This section amends the Foreign Assistance Act to provide 
the President authority to provide assistance in the form of 
loans and partial loan guarantees to private lenders in 
developing countries to achieve economic development purposes. 
Authority for this program has been included in appropriations 
acts over the past several years. This section also provides 
that funds available for the purposes of economic assistance 
under the Foreign Assistance Act and for assistance under the 
Support for Eastern European Democracy Act in Fiscal Year 2004 
may be used to provide loans and partial loan guarantees under 
this section. It authorizes the appropriation for 
administrative expenses to carry out this section for Fiscal 
Year 2004.
    This section also authorizes not more than $21,000,000 of 
the funds made available for fiscal year 2004 for economic 
assistance, including assistance for the former Soviet Union 
and Eastern Europe, for loans and loan guarantees in order to 
carry out the economic assistance objectives of the Foreign 
Assistance Act.

Sec. 104. Program to Provide Technical Assistance to Foreign 
        Governments and Foreign Central Banks of Developing or 
        Transitional Countries

    This section authorizes the appropriation of $14,000,000 
for fiscal year 2004 for the Department of the Treasury's 
program to provide technical assistance to foreign governments 
and foreign central banks in developing or transitional 
countries.

Sec. 105. International Organizations and Programs

    This section authorizes the appropriation of $314,500,000 
for fiscal year 2004 for voluntary contributions to 
international organizations and programs. This is the same as 
proposed by the President.

Sec. 106. Continued Availability of Certain Funds Withheld From 
        International Organizations

    This section tracks authority provided in recent 
appropriations acts whereby any funds available in any fiscal 
year to carry out the provisions of this chapter that are 
returned or withheld from international organizations and 
programs as a result of the restrictions of section 307 of the 
Foreign Assistance Act shall remain available for obligation 
until the end of the following fiscal year for which such funds 
were appropriated.

Sec. 107. International Disaster Assistance

    This section authorizes the appropriation of $235,500,000 
for fiscal year 2004 for international disaster assistance, the 
same as requested by the President.

Sec. 108. Transition Initiatives

    This section authorizes the appropriation of $55,000,000, 
as proposed, for fiscal year 2004 for the Transition 
Initiatives Program administered by USAID, including assistance 
to develop, strengthen and preserve democratic institutions and 
processes, revitalize basic infrastructure, and foster the 
peaceful resolution of conflict. Although this program has not 
been specifically authorized in the Foreign Assistance Act, 
funds have been appropriated for this activity since 1994 when 
USAID established the Office of Transition Initiatives.

Sec. 109. Famine Assistance

    This section authorizes the appropriation of such sums as 
may be necessary for fiscal year 2004 for a new Famine Fund, 
requested for the first time for fiscal year 2004. Assistance 
is authorized for famine prevention and relief, including 
mitigation of the effects of famine. The President is to 
provide fifteen-day advance notification to the authorization 
and appropriations committees each time the authority is used.

Sec. 110. Assistance for the Independent States of the Former Soviet 
        Union

    This section authorizes the appropriation of $646,000,000 
for fiscal year 2004 for assistance for the independent states 
of the former Soviet Union under the Freedom Support Act.
    The Committee received a request of $576 million for 
programs in the Freedom Support Act (FSA) account for the Newly 
Independent States of the former Soviet Union for Fiscal Year 
2004. The Committee notes that the Administration's request is 
$184 million below the appropriated level of Fiscal Year 2003. 
The request for this account is substantially lower than 
previous years. The Committee recommends a $70 million increase 
for this account, to total $646 million.
    The Committee believes that the Administration's proposed 
cuts in funding for assistance under the FSA are too steep and, 
if implemented, would seriously harm U.S. interests in 
stability, democracy and market reform in the Newly Independent 
States. The additional funding authorized is primarily intended 
to increase resources available for programs to support 
democratic development, civil society, and market reform in the 
former Soviet states. The Committee also supports using 
additional funds to bolster counternarcotics programs underway 
in Central Asian states bordering Afghanistan which are 
critical to maintaining stability in that region. The Committee 
urges the Administration to ensure that funding for Educational 
and Cultural Exchanges (ECE) Account programs, in the FSA 
countries, which are now funded in the State Department 
Authorization bill, are maintained at fiscal year 2003 levels.
    Since the passage of the FSA, funds have been committed to 
help support non-governmental organizations that focus on 
environmental issues. The environmental impact from the weapons 
of mass destruction and their means of delivery created by the 
former Soviet Union continues to be a major problem. As the 
State Department and USAID work toward a policy of graduation 
for the Newly Independent States from a number of development 
programs, the Committee believes that environmental issues 
should continue to play an important role in the development of 
stable, civil societies.

Sec. 111. Assistance for Eastern Europe and the Baltic States

    This section authorizes the appropriation of $475,000,000 
for fiscal year 2004 for assistance for Eastern Europe and the 
Baltic states, under the Support for East European Democracy 
(SEED) and the Foreign Assistance Act.
    The President requested $435 million for the Support for 
Eastern Europe Democracies (SEED) account for Fiscal Year 2004. 
The Committee notes that this request is $90 million below the 
appropriated level for Fiscal Year 2003, substantially lower 
than previous years. The Committee recommends an increase of 
$40 million, to total $475 million, which the Committee 
believes is vital to assisting Europe's eastern half achieve 
democracy and free market economies.
    The Committee believes that these proposed cuts in funding 
for assistance under the SEED account are too steep and, if 
implemented, would seriously harm U.S. interests in a vitally 
important region still recovering from three Balkan wars in the 
1990s. The additional funding is primarily intended to increase 
resources available for programs to enhance law enforcement to 
combat organized crime in the Balkans and security on the 
ground for U.S. peacekeeping troops in Kosovo and Bosnia, and 
to speed up the stabilization process in the countries of the 
former Yugoslavia and in Albania. The additional funding would 
also be used to assist with market reform programs in European 
Union (EU) candidate countries, Bulgaria and Romania, to 
maximize their potential for successful and timely entry into 
the EU, and to assist them in addressing the challenges of 
organized crime and corruption. The Committee urges the 
Administration to ensure that funding for Educational and 
Cultural Exchanges (ECE) Account programs, in the SEED 
countries, which are now funded in the State Department 
Authorization bill, are maintained at a robust level.

Sec. 112. Operating Expenses of the United States Agency for 
        International Development

    This section authorizes the appropriation of $750,400,000 
for fiscal year 2004 for the operating expenses of the United 
States Agency for International Development, the same amount 
requested. Of this total, $146,300,000 is authorized to be 
appropriated for overseas construction and related costs and 
for enhancement of information technology and related 
investments. In addition, $35,000,000 is authorized to be 
appropriated for operational costs of the Office of Inspector 
General of the Agency.

SUBTITLE B--COUNTERNARCOTICS, SECURITY ASSISTANCE, AND RELATED PROGRAMS 
                             AUTHORIZATIONS

Sec. 121. Complex Foreign Contingencies

    This section amends the Foreign Assistance Act to authorize 
the establishment of a complex foreign contingencies fund. The 
fund can be used to support a range of foreign assistance 
activities including support for peace and humanitarian 
intervention operations to prevent or respond to foreign 
territorial disputes, armed ethnic and civil conflicts that 
pose threats to regional and international peace, and acts of 
ethnic cleansing, mass killing or genocide. The President is 
required to notify the relevant committees of the Congress at 
least 5 days prior to the obligation of funds from the Fund.
    The President currently has the authority under the Foreign 
Assistance Act to provide assistance when crises occur, but 
this authority does not provide funding with which to address 
those crises. Currently, in order to address such events, the 
administration is required to reprogram funds from other 
accounts, most of which have already been cut to a level that 
threatens program efficacy. This fund would permit the 
President, during times of crises, to continue funding at an 
appropriate level those programs that the Committee supports, 
while at the same time having the resources to address 
immediate and unanticipated crises. The Committee expects that 
the Administration will consult extensively with the Committee 
prior to exercising this authority.

Sec. 122. International Narcotics Control and Law Enforcement

    Subsection (a) of this section authorizes the appropriation 
of $985,000,000 for fiscal year 2004 for international 
narcotics control and law enforcement assistance, of which 
$700,000,000 is authorized to be appropriated for the Andean 
Counterdrug Initiative. This is a reduction of $30,500,000 from 
the request.
    Subsection (b) restates current law by permitting funds 
under this section to be provided for assistance to the 
Government of Colombia and used, notwithstanding any other 
provision of law, to support a unified campaign against 
narcotics trafficking and terrorist activities, and to take 
actions to protect human health and welfare in emergency 
circumstances. The provision maintains the current ceiling of 
400 each on the numbers of U.S. civilian and military personnel 
in Colombia and precludes their participation in any combat 
operation in connection with such assistance. It also continues 
conditions on assistance with respect to the Government of 
Colombia's human rights practices, conditions which are 
currently in effect for fiscal year 2003.

Sec. 123. Economic Support Fund

    The Committee has authorized in subsection (a) of this 
section the appropriation of $2,535,000,000 for fiscal year 
2004 for Economic Support Fund (ESF) programs. The Committee 
supports the full request level for Economic Support Funds to 
provide assistance to allies and countries in transition to 
democracy, to support the Middle East peace process, including 
the Administration's efforts to make progress under the Road 
Map, and to finance economic stabilization programs.
    The Committee has, in subsection (b), amended the Security 
Assistance Act of 2000 to authorize ESF assistance to continue 
strong support for Israel's economic and political stability 
and to redress the economic impact of Israel's isolation in the 
volatile Middle East region. The Committee recognizes that the 
Administration continues to phase out U.S. economic assistance 
to Israel and encourages Israel's efforts to increase the role 
of the private sector, promote productive investment, reform 
taxes and promote more efficient use of resources. This 
assistance contributes to Israel's economic growth, enhances 
Israel's ability to repay its debt to the United States and 
opens new investment opportunities for U.S. investment and 
exports.
    The Committee has amended the Security Assistance Act of 
2000 to authorize ESF assistance to continue strong support for 
stability and prosperity in Egypt. The Committee recognizes 
Egypt is a key partner in the region and elements of this 
assistance may be integrated into the Middle East Partnership 
Initiative. This ESF will help reinvigorate economic 
development and foster economic reforms, alleviate poverty, and 
support development of democratic institutions and bolster 
public health services.

Sec. 124. International Military Education and Training

    This section authorizes the appropriation of $91,700,000 
for fiscal year 2004 for International Military Education and 
Training programs, the same as the request.
    The Committee is encouraged by the executive branch's 
careful approach to security assistance for Nigeria, in 
accordance with section 557 of the Foreign Operations Export 
Financing, and Related Programs Appropriations Act of 2003 
(P.L. 108-007). The Committee believes that concrete progress 
on accountability for abuses of civilians reportedly 
perpetrated by the Nigerian military will demonstrate a shared 
commitment to professionalism and respect for basic human 
rights, restoring confidence in the U.S.-Nigerian security 
assistance relationship.

Sec. 125. Peacekeeping Operations

    This section authorizes the appropriation for fiscal year 
2004 of $101,900,000 for voluntary Peacekeeping Operations 
programs. The Committee notes with concern that the budget 
request for fiscal year 2004, in the amount of $94.9 million, 
is 30 percent less than fiscal year 2002 and 18 percent less 
than regular 2003 appropriations. The Committee is concerned 
that such a significant reduction in funding over the last few 
years does not properly reflect any diminution of conflict, 
especially in Sub-Saharan Africa, and has therefore provided an 
additional $6 million above the President's request for this 
account.
    The Committee recognizes the importance placed on support 
for voluntary peacekeeping activities as a critical aspect of 
national security that is responsive and flexible. It supports 
the understanding that well-funded peacekeeping operations can 
also assist in the broader war on terrorism, as terrorist 
organizations often fill the political and social void created 
by conflict. The African continent has seen a sharp reduction 
in the peacekeeping budget from nearly $55 million in fiscal 
year 2002, to $40 million in 2003, to $24 million for 2004. The 
Committee is concerned that after fulfilling the planned 
funding of $15 million for training regional peacekeepers 
through the Africa Contingency Operations Training and 
Assistance (ACOTA) program, there will only be $9 million 
remaining for ongoing crises and potential hotspots across the 
entire continent. The Committee is further concerned that past 
investments in ongoing peacekeeping and conflict resolution 
programs in the Mano River region of West Africa, Cote 
d'Ivoire, Burundi, and in Democratic Republic of the Congo, as 
well as other areas, risk being lost completely. The Committee 
recognizes the particular value of such programming reducing 
the likelihood of expensive international interventions.

Sec. 126. Nonproliferation, Anti-Terrorism, Demining, and Related 
        Assistance

    The budget request for fiscal year 2004 for the NADR 
account totaled $385.2 million, an amount that is $78.8 million 
higher than the original fiscal year 2003 request ($50.8 
million higher including the emergency supplemental). The 
Committee authorizes $485.2 million for fiscal year 2004 for 
the NADR account, an increase of $100.0 million over the amount 
of the budget request. In keeping with appropriations 
legislation over the past several years, this section 
consolidates the authorization of appropriations for 
nonproliferation, anti-terrorism, demining and certain related 
functions into a single account.
    The Committee recommends the authorization for this account 
be allocated as follows:


------------------------------------------------------------------------
                                                                ($ in
                                                              thousands)
------------------------------------------------------------------------
Nonproliferation and Disarmament Fund......................      $45,000
Export Control and Border Security.........................      $45,000
Science Centers and Bioredirection.........................      $69,000
IAEA Voluntary Contribution................................      $50,000
International Monitoring System (CTBT).....................      $19,300
Anti-Terrorism Assistance..................................     $116,400
Terrorist Interdiction Program.............................      $14,000
CT Engagement with Allies..................................       $2,500
Humanitarian Demining Program..............................      $60,000
International Trust Fund for Demining......................      $10,000
Small Arms/Light Weapons Destruction.......................       $4,000
Radiological Terrorism Threat Reduction Act................      $15,000
Global Pathogen Surveillance Act...........................      $35,000
------------------------------------------------------------------------


    The increased authorization level above the President's 
request for this account reflects the Committee's strong 
support for efforts contained in this account: efforts to 
prevent the spread of weapons of mass destruction, their 
materials, and associated knowledge; the need to educate and 
assist other countries in effective export controls and border 
security; the necessity to provide adequate support for the war 
on terrorism; the value of humanitarian demining and small 
arms/light weapons destruction; the urgency of reducing the 
international threat posed by radiological dispersion devices; 
and the importance of enhancing assistance to developing 
countries to better monitor and contain infectious disease 
epidemics.
    The Committee notes that the Department of State has been 
increasing its efforts to work with countries on a regional 
basis to improve their anti-terrorism and border control 
capabilities. The tri-border region of Latin America 
(Argentina, Brazil and Paraguay) is a prime example. The United 
States takes part in annual meetings with these three countries 
and has sent teams to consult with local officials. FY 2002 
supplemental funds provided $1 million for a needs assessment 
in the tri-border area, limited training and enhancements to 
bridge gaps in information sharing about persons suspected of 
involvement in international terrorist groups.
    The Committee urges the Department to follow up these 
efforts, in conjunction with other interested Departments, and 
to pay particular attention to training and related equipment 
for countering terrorist financing, transnational crime 
intelligence sharing, and border security in the tri-border 
area. More broadly, the committee also urges the Department to 
work closely with other U.S. Government agencies, the United 
Nations Counter-Terrorism Committee, and regional groups, such 
as the Organization of American States' CICTE and CICAD, to 
help countries strengthen their counterterrorism capabilities, 
including improving their counterterrorism laws, regulations 
and implementation capabilities.

Sec. 127. Foreign Military Financing Program

    Subsection (a) of this section authorizes the appropriation 
of $4,414,000,000 for fiscal year 2004 for Foreign Military 
Financing programs, as requested.
    Subsection (b) amends the Security Assistance Act of 2000 
to authorize the appropriation for fiscal year 2004 of FMF 
assistance for Israel, to require rapid disbursement of that 
assistance, and to increase the level of offshore procurement 
allowable with FMF funds made available in fiscal year 2004 for 
Israel.
    Subsection (c) amends the Security Assistance Act of 2000 
to authorize FMF assistance for Egypt and continues the 
requirement to disburse FMF assistance for Egypt in an 
interest-bearing account.

            SUBTITLE C--INDEPENDENT AGENCIES AUTHORIZATIONS

    Trade and Development Agency.--Current law provides 
permanent authorization of such sums as may be necessary for 
the Trade and Development Agency. This authorization was 
provided as part of the Export Enhancement Act of 1999, which 
also authorized funding for the Overseas Private Investment 
Corporation. The Committee recommends funding of $65 million 
for the Trade and Development Agency for fiscal year 2004. This 
amount is $5 million above the budget request. The Committee 
recommends that the additional amount be directed to trade 
capacity building assistance. In fiscal year 2003, the Congress 
provided an additional $2.5 million for the Trade and 
Development Agency for trade capacity building assistance. This 
year the United States has initiated negotiations on free trade 
agreements with Australia, Morocco, the Central American 
countries of Costa Rica, El Salvador, Guatemala, Honduras, and 
Nicaragua, and the Southern African Customs Union countries of 
Botswana, Lesotho, Namibia, South Africa, and Swaziland. The 
Administration has recently indicated that it will initiate 
negotiations on a free trade agreement with Bahrain. The 
dramatic increase in the number of free trade agreements that 
the United States is negotiating with developing countries 
necessitates an increase in funding for trade capacity building 
assistance designed to enhance these countries' abilities to 
participate fully in the negotiations and to derive the 
benefits of any resulting agreements.

Sec. 131. Inter-American Foundation

    This section authorizes the appropriation of $15,185,000 
for fiscal year 2004 for the Inter-American Foundation. This is 
identical to the President's request.

Sec. 132. African Development Foundation

    This section authorizes the appropriation of $17,689,000, 
as requested, for fiscal year 2004 for the African Development 
Foundation.

        SUBTITLE D--MULTILATERAL DEVELOPMENT BANK AUTHORIZATIONS

Sec. 141. Contribution to the Seventh Replenishment of The Asian 
        Development Fund

    This section amends the Asian Development Bank Act to 
authorize the United States contribution to the seventh 
replenishment of the Asian Development Fund, the concessional 
lending arm of the Asian Development Bank. It authorizes the 
appropriation without fiscal year limitation and the 
contribution of $412 million for payment by the Secretary of 
the Treasury to the Asian Development Fund to satisfy fully the 
four-year United States commitment to the seventh 
replenishment.

Sec. 142. Contribution to the Thirteenth Replenishment of the 
        International Development Association

    This section amends the International Development 
Association Act (22 U.S.C. 284 et seq.) to authorize the United 
States contribution to the thirteenth replenishment of the 
International Development Association, the concessional lending 
arm of the World Bank. It authorizes the appropriation without 
fiscal year limitation and the contribution of $2.85 billion 
for payment by the Secretary of the Treasury to the 
International Development Association to satisfy fully the 
three-year United States commitment to the thirteenth 
replenishment.
    As part of the agreement establishing the thirteenth 
replenishment of the International Development Association, the 
United States achieved agreement to enhance the institutional 
focus on performance and results measurement. The United States 
developed a performance-based contribution structure under 
which the United States will provide an additional $100 million 
in fiscal year 2004 and an additional $200 million in fiscal 
year 2005 if the International Development Association meets 
certain performance targets.
    Subsection (c) of the amendment contained in this section 
supports the United States efforts to enhance transparency and 
accountability at the multilateral development institutions. 
Paragraph (1) states the policy of the United States that each 
multilateral development institution that has a United States 
Executive Director should adopt certain policies designed to 
enhance transparency and accountability. Paragraph (2) 
establishes an implementation goal for the adoption of these 
policies prior to the conclusion of the thirteenth 
replenishment of the International Development Association on 
June 30, 2005. Paragraph (3) calls on the Secretary of the 
Treasury or his representative to brief the Committee on 
Foreign Relations of the Senate and the Committee on Financial 
Services of the House at their request on the steps taken to 
implement the measures described in this subsection. Paragraph 
(4) calls on the Secretary of the Treasury to publish the 
written statements of the United States Executive Directors in 
board meetings concerning projects on which claims have been 
made to the institution's inspection mechanism or where board 
decisions on inspection mechanism cases are being taken no 
later than sixty calendar days after such meeting. Paragraph 
(4) further calls on the Treasury Department to publish a 
record of all votes and abstentions made by the United States 
Executive Directors on its website each month.

Sec. 143. Contribution to the Ninth Replenishment of the African 
        Development Fund

    This section amends the African Development Fund Act to 
authorize the United States contribution to the ninth 
replenishment of the African Development Fund, the concessional 
lending arm of the African Development Bank. It authorizes the 
appropriation without fiscal year limitation and the 
contribution of $354 million for payment by the Secretary of 
the Treasury to the African Development Fund to satisfy fully 
the three-year United States commitment to the ninth 
replenishment.

      SUBTITLE E--AUTHORIZATION FOR IRAQ RELIEF AND RECONSTRUCTION

Sec. 151. Authorization of Assistance for Relief and Reconstruction 
        Efforts

    The Committee recognizes that the United States and 
Coalition Forces' decisive, quick military success in Iraq, 
with minimal loss of life, was only a first step toward victory 
in Iraq. The Committee strongly supports the Administration's 
efforts to ensure that a new, independent, stable, democratic 
and self-sufficient Iraq emerges from this military success. 
The Committee expects, however, that this effort will take 
years, require more personnel and equipment resources than 
anticipated and will be a difficult and expensive process.
    This section authorizes the $2,475,000,000 appropriated in 
the fiscal year 2003 Emergency Wartime Supplemental 
Appropriations Act for humanitarian assistance in and around 
Iraq and rehabilitation and reconstruction in Iraq for use 
through fiscal year 2004. It also specifies that this 
assistance is authorized for the purposes provided for in the 
Supplemental Appropriations Act. These funds also are 
authorized to be used to reimburse accounts for obligations 
incurred for these purposes prior to the enactment of this Act. 
Finally, the bill contains a statement that it is United States 
policy to work toward the full and active participation of 
women in the reconstruction of Iraq by promoting the 
involvement of women in all levels of Government and decision 
making bodies, the planning and distribution of assistance, and 
job promotion and training programs.

Sec. 152. Reporting and Consultation

    The Committee has expressed concerns about inadequate 
planning and the lack of information provided on the planning 
and execution of Iraq stabilization and reconstruction efforts. 
The Committee expects greater transparency and more regular 
consultations on these issues to ensure the Committee can 
perform its oversight function and inform the American people 
whose continued support is essential for the success of U.S. 
efforts in Iraq.
    This section provides that any requirements in the 
Supplemental Appropriations Act requiring reporting to or 
consultation with the Appropriations Committees with respect to 
funds appropriated to carry out this section shall require the 
same reporting to and consultation with the Senate Foreign 
Relations Committee and the House International Relations 
Committee.

Sec. 153. Special Assistance Authority

    Recognizing the uncertainty of circumstances in Iraq and 
the existing laws that restrict provision of assistance to 
Iraq, the Committee has provided flexibility to carry out Iraq 
relief and reconstruction efforts. This section authorizes the 
President to provide assistance to Iraq notwithstanding any 
other provision of law.

Sec. 154. Inapplicability of Certain Restrictions

    To ensure flexibility for Iraq relief and reconstruction 
efforts, this section authorizes the President to suspend or 
otherwise make inapplicable to Iraq certain restrictions on 
assistance or exports to Iraq, including restrictions under the 
Iraq Sanctions Act, restrictions that apply to countries that 
have supported terrorism, and restrictions on the export of 
non-lethal military equipment. This section also makes 
permanently inapplicable to Iraq provisions of law that require 
the United States to withhold its proportionate share of 
funding for international organization programs for Iraq and 
direct U.S. opposition to loans or assistance to Iraq by 
International Financial Institutions.

Sec. 155. Termination of Authorities

    The Committee believes that the relief and reconstruction 
efforts in Iraq will require a long-term U.S. commitment to 
complete. This section provides that certain authorities 
contained in sections 153 and 154 will expire two years after 
the enactment of this Act. The Supplemental Appropriations Act 
provides the President these same authorities, but provides 
that they will expire no later than September 30, 2004. The 
Committee intends to monitor the relief and reconstruction 
efforts and will authorize funds and extend authorities as 
appropriate.

     TITLE II--AMENDMENTS TO GENERAL FOREIGN ASSISTANCE AUTHORITIES


  SUBTITLE A--FOREIGN ASSISTANCE ACT AMENDMENTS AND RELATED PROVISIONS

Sec. 201. Development Policy

    This section amends the Foreign Assistance Act's Statement 
of Development Assistance Policy to recognize the importance of 
public-private partnerships in maximizing resources available 
for foreign assistance activities.

Sec. 202. Assistance for Nongovernmental Organizations

    This section amends the Foreign Assistance Act to make 
permanent an authority that has been contained for a number of 
years in annual foreign assistance appropriations and which is 
similar to the current section 123(e) of the Foreign Assistance 
Act.
    New subsection (e)(1) states that restrictions on 
assistance to a country are not to be construed to bar 
assistance to that country that is provided through 
nongovernmental organizations using funds provided for 
development assistance, assistance for Eastern Europe and the 
former Soviet Union, and Economic Support Fund assistance.
    New subsection (e)(2) requires notification to the relevant 
Committees 15 days in advance of the obligation of funds 
pursuant to this authority.
    New subsection (e)(3) clarifies that this authority may not 
be used to furnish assistance through nongovernmental 
organizations to the central government of a country. Although 
prohibitions on assistance to the government of a country 
normally would apply to all levels of government in a country, 
this provision makes it clear that for purposes of the 
authority provided in this subsection, assistance through 
nongovernmental organizations could be provided to levels of 
government below the national level.

Sec. 203. Authority for Use of Funds for Unanticipated Contingencies

    This section amends section 451 of the Foreign Assistance 
Act to permit this authority to be applied to the use of 
funding made available to carry out the Arms Export Control 
Act, and to raise the annual ceiling on the use of this 
authority to $50 million.

Sec. 204. Authority to Accept Lethal Excess Property

    This section amends section 482(g) of the Foreign 
Assistance Act to permit the Secretary of State to receive 
lethal excess property from other agencies of the U.S. 
Government for the purpose of providing such property to 
foreign governments. A similar provision has been contained in 
prior appropriations acts. Currently, this authority is limited 
to non-lethal excess property. This section also requires the 
Secretary to notify the Congress before obligating funds to 
obtain excess lethal property under this section.

Sec. 205. Reconstruction Assistance Under International Disaster 
        Assistance Authority

    This section amends section 491 of the Foreign Assistance 
Act to conform the authority of this section to authority 
provided in appropriations acts over a number of years to allow 
funds under this heading to be used for reconstruction 
assistance after natural or man-made disasters.

Sec. 206. Funding Authorities for Assistance for the Independent States 
        of the Former Soviet Union

    This section amends the Foreign Assistance Act to make 
permanent the authorities applicable to provision of assistance 
that are contained in that Act. Appropriations acts since the 
inception of the program for the independent states of the 
former Soviet Union have continued these authorities.

Sec. 207. Waiver of Net Proceeds Resulting From Disposal of United 
        States Defense Articles Provided to a Foreign Country on a 
        Grant Basis

    This section amends section 505(f) of the Foreign 
Assistance Act to broaden the existing authority of the 
President to waive the requirement that net proceeds resulting 
from the disposal of defense articles provided to a foreign 
country on a grant basis be paid to the United States. Existing 
law limits the waiver authority to items delivered before 1985.

Sec. 208. Transfer of Certain Obsolete or Surplus Defense Articles in 
        the War Reserve Stockpiles for Allies to Israel

    This section provides the President authority to transfer 
certain obsolete or surplus defense items to Israel, in 
exchange for concessions of equivalent value to be negotiated 
by the Secretary of Defense with the concurrence of the 
Secretary of State. This section requires advance Congressional 
notification before any transfer is made under this section.

Sec. 209. Additions to United States War Reserve Stockpiles in Israel 
        for Fiscal Year 2004

    This section extends through fiscal year 2004 the 
President's authority to transfer excess items to the 
Department of Defense War Reserve Stockpile in Israel.

Sec. 210. Restrictions on Economic Support Funds for Lebanon

    This section amends section 1224 of the Foreign Relations 
Authorization Act, fiscal year 2003, to permit assistance to 
address the needs of southern Lebanon. The Committee notes that 
such assistance will be provided to non-governmental 
organizations that promote democracy and economic development. 
The Committee specifically notes that, given scarce water 
resources and critical water management issues in the region, 
water projects in southern Lebanon can help defuse Lebanese-
Israeli tensions in the region.

Sec. 211. Administration of Justice

    This section amends section 534 of the Foreign Assistance 
Act to provide for the continuation of the Administration of 
Justice program on a worldwide basis. The program's sunset 
provision and overall funding ceiling have been deleted. The 
amendments made by this section conform the Administration of 
Justice authority to the authority provided for a number of 
years in appropriations acts.

Sec. 212. Demining Programs

    Subsection (a) amends section 551 of the Foreign Assistance 
Act to make it clear that, in accordance with previous 
interpretations of the Peacekeeping program's statutory 
authorities, the Peacekeeping program may include demining 
activities.
    Subsection (b) continues and makes permanent an authority 
contained in prior year appropriations Acts to allow the 
Department of State and USAID to dispose of demining equipment 
on a grant basis in foreign countries.
    Subsection (c) highlights the Committee's concern regarding 
the continuing problems posed to children by mines and 
unexploded ordnance in Afghanistan and other affected areas. It 
authorizes funds to be used to educate children as to the 
hazards posed by mines and unexploded ordnance. The Committee 
is particularly aware of the challenges that demining and 
ordnance disposal pose for the nascent national government and 
ongoing operations in that country. The Committee takes note of 
a new non-governmental organization, ``No Strings,'' which is 
proposing to use theatre and puppetry to provide life-saving 
education about landmines to children in Afghanistan.

Sec. 213. Special Waiver Authority

    This section amends section 614 of the Foreign Assistance 
Act by updating authorities and funding limitations.
    New subsection (a) provides that the authority of section 
614 may be used to waive provisions of law that limit the 
President's ability to authorize assistance, sales, or other 
action (for example, export licenses) under the authority of 
the Foreign Assistance Act, the Arms Export Control Act, and 
any Act authorizing or appropriating foreign assistance funds 
without regard to the provisions of law cited in subsection 
(b). The standards used to allow the provision of both economic 
and military assistance are the same as current law. The 
provision also increases the annual country limitations.
    New subsection (d) lists the provisions of law that may be 
waived. In addition to provisions contained in foreign 
assistance authorization and appropriations acts, provisions of 
law contained in other legislation that limit the provision of 
assistance under those acts may also be waived under the 
authority of this section.
    The requirements for prior consultation with the 
appropriate committees of the Congress and submission of a 
written policy justification before the President may exercise 
the authority contained in section 614 remain unchanged.

Sec. 214. Prohibition of Assistance for Countries in Default

    This section amends section 620(q) of the Foreign 
Assistance Act to make two changes. First, it makes the 
restriction applicable only to aid to governments. Second, it 
amends the period of default (from 6 months to 12 months) that 
results in a cutoff of assistance under the Foreign Assistance 
Act.

Sec. 215. Military Coups

    This section amends the Foreign Assistance Act to prohibit 
assistance to a country if the duly elected head of government 
of such country is deposed by decree or military coup. Similar 
restrictions have been included in appropriations acts since 
1986. Exempted from this restriction is assistance to promote 
democratic elections, and a presidential waiver would permit 
assistance upon a determination that such assistance is 
important to the national security interest of the United 
States.

Sec. 216. Designation of Position for Which Appointee is Nominated

    This section requires the President to designate the 
particular position within the Agency for International 
Development for which any individual is being nominated.

Sec. 217. Exceptions to Requirement for Congressional Notification of 
        Program Changes

    This section amends section 634A(b) of the Foreign 
Assistance Act to conform to provisions contained for a number 
of years in annual foreign assistance appropriations acts. New 
subsection (b)(3) provides an exception to prior notification 
in the case of substantial risk to human health or welfare, but 
continues the requirement to notify no later than 3 days after 
the obligation of funds. New subsection (b)(4) contains a de 
minimis threshold for reprogramming under the Arms Export 
Control Act that has been included for a number of years in 
appropriations acts.

Sec. 218. Commitments for Expenditures of Funds

    This section amends section 635(h) of the Foreign 
Assistance Act to allow contracts or agreements which entail 
the committment or expenditure of funds made available under 
the Foreign Assistance Act to be extended at any time for not 
more than five years. Under current law, this authority is 
limited only to certain accounts.

Sec. 219. Alternative Dispute Resolution

    The amendment to section 635(i) of the Foreign Assistance 
Act expands the current arbitration and claims settlement 
authority for investment guarantee operations to also cover 
claims arising from other activities carried out under the Act, 
which could include claims under contracts, grants, cooperative 
agreements, credit agreements, personal services contracts, and 
other arrangements and agreements. It also adds a specific 
authority for alternative dispute resolution.

Sec. 220. Administrative Authorities

    This section amends and updates certain administrative 
authorities contained in section 636 of the Foreign Assistance 
Act.
    Section 636(a)(3) is amended to permit the hiring of 
personal services contractors for work in the United States. 
The authority already exists under the Act for hiring such 
contractors abroad.
    Section 636(a)(5) is amended to allow the procurement of 
passenger motor vehicles without various restrictions in 
current law, most of which are not possible to administer 
across agencies using this authority.
    Section 636(a)(10) is amended to delete the 10 year 
limitation on leases, thereby providing the ability to obtain 
the most favorable lease terms under long-term leases.
    Section 636(c) is amended to strike the $6 million 
limitation on the acquisition or construction of living and 
office space overseas for U.S. Government personnel.
    Section 636(d) is amended to strike the $2.5 million 
limitation on the provision of assistance for schools for 
dependents of U.S. Government personnel.

Sec. 221. Assistance for Law Enforcement Forces

    This section amends section 660 of the Foreign Assistance 
Act of 1961.
    Paragraph (1) amends subsection (b)(6), consistent with 
current law, to make it clear that the authority of this 
paragraph may be used in cases where instability has occurred 
at the sub-national level.
    Paragraph (1) further amends subsection (b) to add 
exceptions to the prohibition on assistance for law enforcement 
forces. New paragraph (8) permits the provision of assistance 
to combat corruption consistent with the objectives of section 
133 of the Foreign Assistance Act. New paragraph (9) is the 
same as current law but is included as a separate paragraph to 
make it clear that the authority to provide human rights, rule 
of law, and other training is not limited to post-conflict 
situations. New paragraph (10) is an authority related to 
assistance to combat trafficking in persons.
    Paragraph (2) amends section 660 to provide the Secretary 
of State with the authority to waive the limitations of this 
section on a case-by-case basis if the Secretary determines 
that it is important to the national interest to do so. The 
obligation of funds pursuant to such a waiver is subject to 
prior notification of the appropriate congressional committees 
under section 634A of the Foreign Assistance Act.

Sec. 222. Special Debt Relief for the Poorest

    This section amends the Foreign Assistance Act by adding a 
new Part VI. This part authorizes the President to forgive 
certain debts owed by the poorest countries to the United 
States. The exercise of this authority is subject to, among 
other things, the prior appropriation of funds for this purpose 
and prior notification of the appropriate congressional 
committees in accordance with section 634A of the Foreign 
Assistance Act. The authority is very similar to authority 
previously enacted in foreign assistance appropriations acts.

Sec. 223. Congo Basin Forest Partnership

    This section contains findings and expresses the Sense of 
the Congress in support of the Congo Forest Basin Partnership, 
the largest conservation effort currently undertaken by the 
U.S. government in Africa. It affirms U.S. support of the Congo 
Basin Forest Partnership because the forests and wildlife of 
the Congo Basin are of global significance, because the forests 
are a major factor in the social, economic and environmental 
health of Congo Basin countries, and because of the impressive 
structure of cooperation between governments, NGOs and the 
private sector operating in the region. It further identifies 
the Congo Basin Forest Partnership as an initiative that fully 
recognizes the integral and equal nature of economic 
development, social development and environmental protection in 
the quest for sustainable development.
    Funds recommended for use in this section were requested by 
the administration as part of a 3-year effort to capitalize on 
the strong cooperation and momentum of state governments, 
international organizations and non-governmental organizations 
in protecting the continent's essential natural resources while 
also addressing other challenging development issues in the 
region. The Committee expresses support for economic and 
conservation opportunities including improvement of forest 
management and sustainable forest-based livelihoods development 
such as employment through ecotourism, wildlife law 
enforcement, reduced impact logging and park management. The 
Committee specifically identifies as targets those activities 
that are unsustainable and destabilizing to the region, such as 
illegal logging and illegal trade in wildlife.

Sec. 224. Landmine Clearance Programs

    This section provides the Secretary of State authority to 
support public-private partnerships for landmine clearance 
programs through grant or cooperative agreement.
    The Committee commends the State Department's Political-
Military bureau for its attention to this global problem 
through the Bureau's Office of Mine Action Initiatives.

Sec. 225. Middle East Foundation

    The Committee strongly supports the Middle East Partnership 
Initiative announced by the Secretary of State in December 
2002. The Committee seeks to contribute to efforts to bring 
democratic and economic reforms to the Middle East region and 
has authorized the Secretary of State to designate an 
appropriate private, non-profit organization as the Middle East 
Foundation and to provide funding to the Foundation through the 
Middle East Partnership Initiative. The Committee recommends an 
initial funding level of an estimated $15 million for Fiscal 
Year 2004.
    The purposes of this assistance are to support civil 
society, political participation, women's rights, educational 
reform, human rights, independent media, economic reform, the 
rule of law and other democratic development in the Middle East 
through grants, technical assistance, training and other 
measures. The Committee favors the Foundation supporting 
democracy-related activities in countries with struggling 
movements for reform and democracy, including Iran. The 
Secretary may also make a grant to an institution of higher 
education in the Middle East to create a Center for Public 
Policy to permit scholars and professionals from the Middle 
East and other countries, including the United States, to carry 
out research, training programs and other activities to inform 
public policy making in the Middle East and promote broad 
economic, social and political reforms. The Committee considers 
such activities are entirely consistent with the ``Arab Human 
Development Report for 2002.'' The Committee notes this section 
also provides for reporting, financial accountability and 
oversight measures of such a Foundation.
    The Committee expects to work closely with the Department 
of State as such a Foundation establishes operations. The 
Committee recognizes the positive role played by the Asia 
Foundation and Eurasia Foundation in supporting civil society 
development in their respective regions of operations and hopes 
that the Middle East Foundation can play a similar role in the 
Middle East.
    The Committee further expects that, prior to providing any 
funding to the Foundation, the administration will ensure that 
the Foundation has in place a system for vetting potential 
grantees to reduce the risk of funding activities that are 
contrary to the national interests of the United States. This 
section also provides for reporting, financial accountability 
and oversight measures of such a Foundation.

 SUBTITLE B--ARMS EXPORT CONTROL ACT AMENDMENTS AND RELATED PROVISIONS

Sec. 231. Thresholds for Advance Notice to Congress of Sales or 
        Upgrades of Defense Articles, Design and Constructions 
        Services, and Major Defense Equipment

    This section raises the minimum dollar thresholds at which 
sales of certain defense articles, design and construction 
services, and major defense articles (or upgrades of such 
sales) must be reported to the Congress under section 36 of the 
Arms Export Control Act.
    The Committee raised the level of notification thresholds 
from $14 million to $50 million for major defense equipment, 
from $50 million to $100 million for defense articles and 
defense services, and from $200 million to $350 million for 
design and construction.
    This section also allows for notification of additional 
cases (i.e., ones below the new dollar thresholds) ``if the 
President determines it is appropriate.'' The Committee 
understands that the executive branch is prepared to provide 
the Committee informal notice of planned arms transfers above 
existing dollar thresholds and to submit formal notification 
under section 36 of the Arms Export Control Act for certain 
transfers if requested by the Chairman or ranking member. The 
Committee expects that an exchange of letters will be used to 
specify the State Department's commitment in this regard before 
this section is enacted.

Sec. 232. Clarification of Requirement for Advance Notice to Congress 
        of Comprehensive Export Authorizations

    This section requires the President to make certifications 
to the Congress under section 36(c)(1) of the Arms Export 
Control Act before issuing comprehensive authorizations under 
section 126.14 of the International Traffic in Arms Regulations 
(ITAR) for the export of defense articles or defense services 
to an eligible foreign country or foreign partner.

Sec. 233. Exception to Bilateral Agreement Requirement for Transfers of 
        Defense Items Within Australia

    This section provides an exception to the requirements on 
bilateral agreements for country exemptions from International 
Traffic in Arms Regulations contained in section 38(j)(2)(A) of 
the Arms Export Control Act with respect to transfers within 
Australia of certain U.S.-origin defense items.

Sec. 234. Authority to Provide Cataloging Data and Services to Non-NATO 
        Countries

    This section authorizes the President to provide cataloging 
data and services to non-NATO countries on a reciprocal basis. 
Currently, authority exists only to provide such data and 
services to NATO and to NATO-member governments.

Sec. 235. Freedom Support Act Permanent Waiver Authority

    This section provides a permanent annual waiver for the 
requirements of section 502 of the Freedom Support Act (Public 
Law 102-511). Section 1306 of the National Defense 
Authorization Act for fiscal year 2003 (Public Law 107-314) 
provided authorization for an annual waiver only for fiscal 
years 2003 through 2005. This permanent authority to invoke an 
annual waiver would ensure continuity for program planning 
purposes.

Sec. 236. Extension of Pakistan Waivers

    This section extends the authority contained in previous 
legislation (Public Law 107-57) to make inapplicable through 
fiscal year 2004 foreign assistance restrictions relating to 
coups and loan defaults with respect to Pakistan.

Sec. 237. Consolidation of Reports on Non-Proliferation in South Asia

    This section requires that the annual report on 
nonproliferation in South Asia to be submitted by April 1, 
2004, pursuant to section 620F(c) of the Foreign Assistance Act 
of 1961, include a description of the efforts of the United 
States Government to achieve objectives on nuclear and missile 
nonproliferation in the region, as described in section 1601 of 
the Foreign Relations Authorization Act for Fiscal Year 2003, 
the progress made toward achieving such objectives, and the 
likelihood that such objectives will be achieved by September 
30, 2004. This avoids the need for a separate report on those 
efforts, which was required in 2003.

Sec. 238. Haiti Coast Guard

    This section grants eligibility to the Government of Haiti 
for the purchase of defense articles and services for the 
Haitian Coast Guard under the Arms Export Control Act subject 
to existing notification requirements.

Sec. 239. Sense of Congress Relating to Bilateral Agreement on Exports 
        of Defense Items to the United Kingdom

    This section expresses the sense of the Congress that once 
a bilateral agreement with the United Kingdom for an exemption 
from the International Traffic in Arms Regulations [ITAR] for 
certain United States-origin defense items is finalized, the 
United States should approve an appropriately-crafted exception 
to the requirements of section 38 (j) of the Arms Export 
Control Act.

Sec. 240. Marketing Information for Commercial Communication Satellites

    This section provides that under section 38 of the Arms 
Export Control Act a license is not required for sharing 
marketing data for the purposes of a potential sale of a 
commercial communications satellite to a NATO-member country, 
Australia, New Zealand and Japan. Under the definition of 
marketing data contained in the section, an export license 
would still be required for sensitive encryption and source 
code data, detailed design data, engineering analysis, or 
manufacturing know-how. The section further provides that 
nothing in this section exempts commercial communications 
satellites from any of the other licensing requirements under 
the Arms Export Control Act.

         TITLE III--RADIOLOGICAL TERRORISM THREAT REDUCTION ACT

    The Committee is concerned that orphaned, unused, surplus, 
or other radioactive sources pose a major proliferation risk, 
and that the use of such materials by terrorists in a 
radiological dispersion attack could lead to catastrophic 
economic and social damage. The Committee finds that the 
security of these materials should be a priority in United 
States nonproliferation efforts, and that international 
cooperation will be critical to guarantee the success of these 
efforts.
    At a hearing held March 6, 2002, the Committee received 
testimony regarding the terrorist nuclear threat from: Dr. 
Richard A. Meserve, then-Chairman of the Nuclear Regulatory 
Commission; Dr. Donald D. Cobb, Associate Laboratory Director 
for Threat Reduction at the Los Alamos National Laboratory; Dr. 
Harry C. Vantine, Division Leader for Counterterrorism and 
Incident Response at the Lawrence Livermore National 
Laboratory; Dr. Steven E. Koonin, Provost of the California 
Institute of Technology and chairman of the JASON group of 
scientific advisers to the Department of Defense; and Dr. Henry 
C. Kelly, President of the Federation of American Scientists. 
The witnesses warned that there was a real possibility that 
terrorists could obtain radioactive material and then disperse 
it with the intent to cause harm. Although few people, if any, 
would die from a radiological attack, it could force the 
evacuation and destruction of large numbers of buildings in 
order to comply with federal decontamination regulations.
    Radioactive sources must be kept in responsible hands; but 
that is difficult because they are widely used in industry. 
Radioactive sources are indispensable to modern medicine, where 
they are used to treat cancer and to perform diagnostic tests. 
Some cancer treatments implant radioactive material within our 
bodies; other procedures use intense beams from large, highly 
radioactive sources. Both the former Soviet Union and the 
United States also developed power sources using intensely 
radioactive material for use in remote areas and in spacecraft.
    Poorly guarded radioactive materials in the former Soviet 
Union represent a large source of potential ingredients for 
radiological dispersion devices. The United States works with 
the International Atomic Energy Agency (IAEA) to ensure the 
physical protection and accountability of significant 
radioactive sources world-wide, but additional targeted 
programs are needed to secure dangerous radiological sources 
both in the states of the former Soviet Union and elsewhere.
    This title authorizes the Secretary of State to propose 
that the IAEA conclude agreements with up to 8 countries, under 
which each country would provide temporary secure storage for 
orphaned, unused, surplus, or other radioactive material 
sources; to provide assistance for an IAEA program to promote 
the discovery, inventory, and recovery of radioactive sources 
in member nations of the IAEA; to provide substitute non-
nuclear power sources for radioisotope thermal power units 
operated by the Russian Federation and other independent states 
in the former Soviet Union; and to assist foreign countries, or 
to propose that the IAEA assist foreign countries, in the 
development of appropriate national response plans and the 
training of first responders for a possible radiological event.
    The Committee has made funding available for each of these 
initiatives from the funds authorized in this title for fiscal 
year 2004 to be appropriated to the State Department account 
for Nonproliferation, Anti-terrorism, Demining, and Related 
Programs (NADR). All amounts authorized to be appropriated by 
this title are authorized to remain available until expended.
    The Committee is also concerned with the threat posed to 
U.S. missions abroad by terrorist radiological attacks. The 
Secretary is therefore required to submit a report within 180 
days after the enactment of this title (and on an annual basis 
thereafter) detailing the preparations made at U.S. diplomatic 
missions abroad to detect and mitigate such an attack, listing 
improvements for radiological safety and consequence management 
at those missions, and providing a rank-ordered list of the 
missions where such improvements are the most critical. As part 
of this report the Secretary is required to submit a budget 
request to carry out these improvements.

Sec. 304. International Storage Facilities for Radioactive Sources

    Section 304 authorizes the Secretary of State to propose 
that the International Atomic Energy Agency conclude agreements 
with up to 8 countries under which each country would provide 
temporary secure storage for orphaned, unused, surplus, or 
other radioactive sources (other than special nuclear material, 
nuclear fuel, or spent nuclear fuel). The agreements must be 
consistent with the IAEA Code of Conduct on the Safety and 
Security of Radioactive Sources, and shall address the need for 
storage of such radioactive sources in countries or regions of 
the world where convenient access to secure storage of such 
radioactive sources does not exist.
    The Secretary is authorized to make voluntary contributions 
to the IAEA for use by the Department of Nuclear Safety of the 
IAEA to fund the United States share of the costs of activities 
associated with or under the above agreements, and in fiscal 
year 2004 that share may be 100 percent of the costs of such 
activities in that fiscal year. The Secretary is also 
authorized to provide the IAEA and other countries with 
technical assistance to carry out activities under the above 
agreements in a manner that meets the standards of the IAEA 
Code of Conduct on the Safety and Security of Radioactive 
Sources. To carry out this section, $4,000,000 is authorized 
for fiscal year 2004.
    The Committee intends that the Secretary make full use, as 
appropriate, of his authorities, in the Economy Act and 
especially in section 632(b) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2392(b)), to use the services of other 
departments and agencies in implementing this section. Such 
intent applies equally to sections 305-308 of this title. 
Subsection (d) of this section provides that the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) shall 
not apply with respect to any temporary secure storage facility 
constructed outside the United States under an agreement under 
subsection (a). Rather, the construction and operation of such 
a facility shall be governed by any applicable environmental 
laws of the country in which the facility is constructed.

Sec. 305. Discovery, Inventory, and Recovery of Radioactive Sources

    Section 305 authorizes the Secretary of State to provide 
assistance, including through voluntary contributions to the 
IAEA, to support a program of the Division of Radiation and 
Waste Safety of the Department of Nuclear Safety of the IAEA to 
promote the discovery, inventory, and recovery of radioactive 
sources in member nations of the IAEA. The Secretary is also 
authorized to provide the IAEA and other countries with 
technical assistance to carry out the program. To carry out 
this section, $4,000,000 is authorized for fiscal year 2004.

Sec. 306. Radioisotope Thermal Generator Power Units in the Independent 
        States of the Former Soviet Union

    Section 306 authorizes the Secretary of State to assist the 
Government of the Russian Federation to substitute solar (or 
other non-nuclear) power sources for radioisotope thermal power 
units operated by the Russian Federation and other independent 
states of the former Soviet Union in applications such as 
lighthouses in the Arctic, remote weather stations, and for 
providing electricity in remote locations. Any power unit 
utilized as a substitute power unit under this section shall, 
to the maximum extent practicable, be based upon tested 
technologies that have operated for at least one full year in 
the environment where the substitute power unit will be used.
    Subsection (b) of this section requires that the Secretary 
of State consult with the Secretary of Energy to ensure that 
substitute power sources provided under this section are for 
facilities from which the radioisotope thermal generator (RTG) 
power units have been or are being removed. The Department of 
Energy has primary responsibility for assisting the Government 
of the Russian Federation to locate, remove and securely store 
the RTG power units, and the Government of Norway has a program 
to replace RTG power units in the Kola Peninsula region. Close 
consultation with the Department of Energy will help ensure 
that the State Department does not provide non-RTG power units 
for facilities that are not ready for the replacement units or 
that are receiving replacement power units from other sources. 
To carry out this section, $5,000,000 is authorized for fiscal 
year 2004. Not more than 20 percent of those funds may be used 
to replace dangerous radioisotope thermal power facilities in 
countries other than the independent states of the former 
Soviet Union that are similar to the facilities described 
above.

Sec. 307. Foreign First Responders

    Section 307 authorizes the Secretary of State to assist 
foreign countries, or to propose that the IAEA assist foreign 
countries, in the development of appropriate national response 
plans and the training of first responders to: detect, 
identify, and characterize radioactive material; understand the 
hazards posed by radioactive contamination and the risks 
encountered at various dose rates; enter contaminated areas 
safely and speedily; and evacuate persons within a contaminated 
area. Subsection (b) requires the Secretary of State to take 
into account the findings of the threat assessment report 
required by section 308 and the location of any storage 
facilities for radioactive sources under section 304. To carry 
out this section, $2,000,000 is authorized for fiscal year 
2004.

Sec. 308. Threat Assessment Reports

    Section 308 requires the Secretary of State to submit to 
the appropriate congressional committees a report detailing the 
preparations made at United States diplomatic missions abroad 
to detect and mitigate a radiological attack on United States 
missions and other United States facilities under the control 
of the Secretary. This report is to include a rank-ordered list 
of the Secretary's priorities for improving radiological 
security and consequence management at United States missions, 
a rank-ordered list of the missions where such improvement is 
most important, and a proposed budget to carry out those 
improvements. Each report shall be submitted in unclassified 
form, but may include a classified annex. The first report 
required by this section shall be submitted not later than 180 
days after the date of the enactment of this Act. Subsequent 
reports under this section shall be submitted with the annual 
budget justification materials submitted by the Secretary of 
State to Congress for each fiscal year commencing with fiscal 
year 2006.

                 TITLE IV--GLOBAL PATHOGEN SURVEILLANCE

    In January 2001, the National Intelligence Council released 
a National Intelligence Estimate entitled, The Biological 
Warfare Threat. The report not only points to the growing 
biological warfare capabilities of state and non-state actors 
but, more importantly, highlights the similar patterns and 
symptoms of a deliberately initiated disease outbreak and a 
naturally occurring outbreak. Once an outbreak is detected and 
begins to spread, it is very difficult to distinguish between a 
deliberate versus a natural disease outbreak. Furthermore, both 
are potentially devastating to human, animal, and plant life, 
as well as economically costly. Epidemiologists and public 
health experts rely on similar tools to help prevent, detect, 
and contain both intentional and naturally occurring disease 
outbreaks.
    The Committee believes that the threat of bioterrorism 
poses significant challenges not only for the United States, 
but for the entire world. It is difficult to protect our 
nation's health alone in an age of unprecedented air travel and 
international trade, as infectious pathogens are transported 
across borders each day. The recent global outbreak of severe 
acute respiratory syndrome, or SARS, is an unfortunate reminder 
of this vulnerability.
    Infectious disease outbreaks are transnational threats and 
the defense of our homeland is not an isolated activity. Rather 
it requires a comprehensive strategy, including a critical 
international component. Whether intentional or natural, 
infectious diseases do not recognize the boundaries set by 
national borders.
    The Committee held a hearing regarding the threat of 
bioterrorism and the spread of infectious diseases on September 
5, 2001. Witnesses included former Senator Sam Nunn, Dr. Donald 
A. Henderson of Johns Hopkins University (later a scientific 
advisor to the White House and the Department of Health and 
Human Services), and Dr. David L. Heymann, Executive Director 
for Communicable Diseases at the World Health Organization. At 
a March 18, 2002, hearing on the chemical and biological 
weapons threat, Dr. Alan P. Zelicoff, Senior Scientist at 
Sandia National Laboratories, testified on the role of 
syndromic surveillance in bioterrorism prevention.
    Developing nations represent one of the weak links in a 
comprehensive global surveillance and monitoring network. 
Unfortunately, naturally occurring disease outbreaks are most 
likely to occur in these areas where poor sanitary conditions, 
poverty, and a weak medical infrastructure combine to offer 
ideal breeding grounds for pathogens. In addition, some 
developing countries border rogue states or states that offer 
sanctuaries for international terrorist groups, where there is 
documented interest in biological agents.
    The Committee has sought to identify and enhance the 
capability of the international community to detect, identify, 
and contain infectious disease outbreaks, whether the cause of 
those outbreaks is intentional or natural in origin. The 
primary authority for implementation of the bill's provisions 
is vested in the Department of State, but the Committee expects 
that the Department of Health and Human Services will also play 
a critical role, including consultation to the greatest extent 
possible.

Sec. 404. Priority for Certain Countries

    Section 404 requires that priority in allocating assistance 
under the provisions of this bill be given to those eligible 
developing countries that permit personnel from the World 
Health Organization (WHO) and the Centers for Disease Control 
and Prevention (CDC) to investigate infectious disease 
outbreaks on their territory, provide early notification of 
such outbreaks, and share pathogen surveillance data with 
appropriate U.S. governmental entities and international health 
organizations.

Sec. 405. Restriction

    Section 405 restricts access that foreign nationals 
participating in programs authorized under this Act may gain to 
select agents that may be used as, or in, a biological weapon, 
except in a supervised and controlled setting. The Committee 
does not believe that such a restriction will constrain foreign 
nationals from fully participating in various training and 
educational programs under this Act.

Sec. 406. Fellowship Program

    Section 406 authorizes the Secretary of State to award 
fellowships to eligible nationals of developing countries to 
pursue a master of public health degree or advanced public 
health training in epidemiology. The Committee believes that 
carefully chosen programs of this sort should be encouraged as 
they not only impart technical skills utilizing state-of-the-
art technology, but also help cultivate the management and 
organizational skills of future leaders for developing country 
public health programs. The Secretary of State shall require 
the recipient to enter into an agreement under which the 
recipient, upon completing said education or training, will 
return to the recipient's country of nationality or last 
habitual residence (so long as it is an eligible developing 
country) and complete at least four years of employment in a 
public health position in the government or a nongovernmental, 
not-for-profit entity in that country. If the recipient is 
unable to meet these requirements, the recipient will be 
required to reimburse the U.S. government for the value of the 
assistance provided.
    Subsection (e) allows for the participation of United 
States citizens, on a case-by-case basis, if the Secretary 
determines that it is in the national interest of the United 
States to do so. Such participants would be required, upon 
completion of education or training, to complete at least five 
years of employment in a public health position in an eligible 
developing country or an international health organization.

Sec. 407. In-Country Training in Laboratory Techniques and Syndrome 
        Surveillance

    Section 407 supports short-term training courses, outside 
the United States, in laboratory techniques for laboratory 
technicians and public health officials. Such training courses 
offer the opportunity for public health personnel to train in 
their indigenous environment, utilizing the available 
technology. Subsection 407(a) complements the assistance 
authorized in section 408 for the purchase and maintenance of 
public health laboratory equipment. Subsection 407(b) supports 
training in syndrome surveillance techniques. Syndrome 
surveillance systems provide the means for early detection and 
recognition, limit infection and mortality rates, and help to 
more efficiently focus limited public health resources.

Sec. 408. Assistance for the Purchase and Maintenance of Public Health 
        Laboratory Equipment; and Sec. 409. Assistance for Improved 
        Communication of Public Health Information

    Sections 408 and 409 authorize the President to provide 
assistance, subject to the availability of appropriations, to 
eligible developing countries to purchase and maintain: (1) 
public health laboratory equipment necessary for the 
collection, analysis, and identification of pathogens which may 
cause disease outbreaks or be used as biological weapons; and 
(2) communications equipment and information technology, along 
with supporting equipment, necessary to effectively collect, 
analyze, and transmit public health information. The equipment 
should be appropriate for ready use in the intended 
geographical area and compatible with general standards 
established by the WHO and, as appropriate, the CDC to ensure 
interoperability with regional and international networks. 
Recipient countries must provide the resources, infrastructure, 
and other assets required to house, support, maintain, secure, 
and maximize use of this equipment and appropriate technical 
personnel.
    The Committee believes that equipment purchased with 
assistance provided under these sections should be in 
compliance with the Export Administration Act of 1979 and that 
no funds should be made available for the purchase from a 
foreign country of equipment that, if made in the United 
States, would be subject to the Arms Export Control Act.
    The Committee favors standardizing the reporting of public 
health information between and among developing countries and 
international health organizations. Standardized reporting 
requirements will enable information to be more easily 
transmitted and understood. Thus, the President is authorized 
under subsection (e) of section 409 to provide assistance for 
this purpose.

Sec. 410. Assignment of Public Health Personnel to United States 
        Missions and International Organizations

    Section 410 authorizes the heads of executive branch 
departments and agencies to assign public health personnel to 
U.S. diplomatic missions and international health organizations 
when requested. These details, intended to be flexible in 
nature, should be for the purpose of enhancing disease and 
pathogen surveillance efforts in developing countries. The 
Secretary of State must concur with any such detail.

Sec. 411. Expansion of Certain United States Government Laboratories 
        Abroad

    Section 411 authorizes the expansion of the overseas 
laboratories and other related facilities of the Centers for 
Disease Control and the Department of Defense, as appropriate, 
to further the goals of global pathogen surveillance and 
monitoring. This expansion applies to both numbers of personnel 
and the scope of operations. Overseas CDC and DoD facilities, 
working with host governments, play a crucial role in enhancing 
the capability of developing countries to monitor disease 
outbreaks and suspected biological weapons attacks.

Sec. 412. Assistance for Regional Health networks and Expansion of 
        Foreign Epidemiology Training Programs

    Section 412 authorizes the President to provide assistance 
for the purposes of enhancing the surveillance and reporting 
capabilities of the World Health Organization and existing 
regional networks. The President is also authorized to provide 
funding for the development of new regional health networks, as 
a means of continuing to expand the reach of a global 
surveillance network. Additionally, subsection (b) authorizes 
the Secretary of Health and Human Services to establish new 
country or regional Foreign Epidemiology Training Programs in 
eligible developing countries.

Sec. 413. Authorization of Appropriations

    Section 413 authorizes appropriations for carrying out 
provisions of this title for Fiscal Year 2004. The Committee 
has made funding available for this title from the funds 
authorized to be appropriated to the State Department account 
for Nonproliferation, Anti-Terrorism, Demining, and Related 
Programs (NADR). All amounts authorized to be appropriated by 
this title are authorized to remain available until expended. 
The section authorizes $35 million in total. Of this amount, 
$25 million is authorized to carry out sections 406, 407, 408 
and 409; $500,000 to carry out section 410; $2.5 million to 
carry out section 411; and $7 million to carry out section 412. 
All of these authorization levels are subject to the 
availability of appropriations.
    The Committee recognizes that the level of required 
assistance for global pathogen surveillance will be modest in 
comparison to other foreign assistance efforts. Targeted U.S. 
assistance can leverage other international assistance and, 
more importantly, establish benchmarks for public health 
programs in developing countries to strive for in sustaining 
and expanding pathogen surveillance efforts. Global 
surveillance does not command large-scale investments nor does 
it require high-tech equipment. The Committee hopes that U.S. 
allies and partners will contribute a proportionate share in 
funding these types of efforts to develop a comprehensive 
global surveillance network. The absence of authorized funding 
beyond FY 2004 does not indicate the need for a re-
authorization of these programs.

                   TITLE V--MISCELLANEOUS PROVISIONS


     SUBTITLE A--ELIMINATION AND MODIFICATION OF CERTAIN REPORTING 
                              REQUIREMENTS

Sec. 501. Annual Report on Territorial Integrity

    This section repeals an annual report from the 1994 Foreign 
Operations, Export Financing, and Related Programs Act on steps 
taken by the governments of Eurasia concerning violations of 
the territorial integrity or national sovereignty of other 
Eurasian states ``such as those violations included in 
Principle Six of the Helsinki Final Act.''This report is no 
longer necessary because the countries of Eurasia (designated 
in the 1994 Act as ``New Independent States'') have maintained 
their sovereignty and territorial integrity for over a decade.

Sec. 502. Annual Reports on Activities in Colombia

    This section permits the Secretary to satisfy the reporting 
requirements of section 694 of the fiscal year 2003 Foreign 
Relations Authorization Act by consolidating the required 
information with the report required by section 489 of the 
Foreign Assistance Act.

Sec. 503. Annual Report on Foreign Military Training

    This amendment changes the date upon which the report is 
due to the Congress from January 31 to March 1.

Sec. 504. Report on Human Rights in Haiti

    This section combines reports that derive from subsections 
616 (c) (2), (3) and (4) of the Commerce, Justice and State 
Appropriations Act Fiscal Year 1999, as amended, concerning the 
status of the Government of Haiti's investigations and 
prosecution of certain extra judicial and political murders, 
the list of individuals implicated in those murders, and list 
of aliens denied visas as a result of the legislation. The two 
reports had been submitted on the same date but in two separate 
packages, so the timing of the receipt of this information will 
not be affected.

                       SUBTITLE B--OTHER MATTERS

Sec. 511. Certain Claims for Expropriation by the Government of 
        Nicaragua

    This section authorizes the Secretary of State to exclude 
from consideration for the purposes of foreign assistance 
restrictions related to property expropriation certain U.S. 
citizen property claims against the Government of Nicaragua not 
filed within 120 days of a deadline to be set by the Secretary 
of State.

Sec. 512. Amendments to the Arms Control and Disarmament Act

    This section adds the term ``formal commitments'' to the 
elements for which the Verification and Compliance Bureau of 
the Department of State shall provide compliance analysis (arms 
control, nonproliferation, and disarmament agreements) under 
the Arms Control and Disarmament Act. To facilitate faster 
submission of the annual report on objectives and negotiations, 
it separates that report from the annual report on compliance, 
which is required to be prepared in coordination with the 
Director of Central Intelligence. This section also allows the 
annual report on Chemical Weapons Convention compliance, 
required by condition 10 (C) of the resolution of advice and 
consent to U.S. ratification of that Convention, to be 
incorporated in the annual compliance report required by 
section 403 of the Arms Control and Disarmament Act.

Sec. 513. Support for Sierra Leone

    This section contains findings and a sense of Congress that 
there have been significant amounts expended in stabilizing 
Sierra Leone through the United Nations Mission in Sierra Leone 
(UNAMSIL) and Operation Focus Relief, and that this investment 
should be secured through appropriate continued support for the 
country. It also requires a one-time report of the U.S. Agency 
for International Development on the feasibility of opening a 
USAID mission in Sierra Leone and recommends that funding may 
be made available to support education, poverty-reduction and 
anti-corruption efforts in fiscal year 2004.

Sec. 514. Support for Independent Media in Ethiopia

    This section recognizes the need for an independent media 
in Ethiopia and recommends the provision of necessary sums to 
strengthen the capacity of journalists and increase their 
access to printing facilities. The Committee finds it essential 
to maintain principles of democratic participation in all 
states, regardless of their level of support in the global war 
on terrorism.

Sec. 515. Support for Somalia

    This section contains a sense of Congress that the United 
States has a national interest in supporting stability in 
Somalia by working to strengthen state capacity, engaging in 
small-scale human development initiatives, and curtailing 
opportunities for terrorists and international criminals within 
Somalia's borders. It also calls for a one-time report by the 
Secretary of State to outline a multi-year strategy to increase 
access to education and health care services, to support 
effective regulation of Somali remittance companies and to 
assist in the rehabilitation of the Somali livestock sector.
    The Committee continues to be concerned about existing and 
potential terrorist activity and influence in Somalia, and 
supports a policy of engagement with relatively stable and 
responsible actors including Somaliland, in order to provide 
alternative influences and opportunities to the Somali people.

Sec. 516. Support for Central African States

    This section contains specific findings drawn from the 
State Department's Human Rights Report for 2002, and reaffirms 
U.S. policy supporting efforts aimed at accounting for grave 
human rights abuses and crimes against humanity, encouraging 
reconciliation and preventing such crimes in the future. It 
also requires a report from the Secretary of State within 180 
days after enactment on the actions taken pursuant to the above 
policy. This section also authorizes that up to $12 million may 
be made available for fiscal year 2004 to support justice and 
reconciliation mechanisms in the Democratic Republic of the 
Congo, Rwanda, Burundi, and Uganda.
    The Committee is deeply disturbed by ongoing reports of 
gross human rights abuses in Ituri province and the eastern 
portion of the Democratic Republic of the Congo, and believes 
that regional instability will not be resolved until the 
climate of impunity for such abuses is changed. The Committee 
considers that the mounting frequency of reports of atrocities 
perpetrated by local and proxy militias, and the politicization 
and arming of the population, warrant responsive actions in 
order to avert further atrocities.

Sec. 517. Africa Contingency Operations Training and Assistance Program

    This section authorizes the Africa Contingency Operations 
Training and Assistance Program (ACOTA), codifies the criteria 
for eligible countries, and expresses a sense of the Congress 
on local consultations prior to ACOTA implementation and 
monitoring of post-training performance and conduct of military 
units trained. It provides that the full amount requested for 
fiscal year 2004 may be made available for ACOTA training.
    The Committee finds that several years of experience with 
ACOTA and its predecessor, the Africa Crisis Response 
Initiative (ACRI), have confirmed their value.

Sec. 518. Conditions on the Provision of Certain Funds to Indonesia

    This section conditions the release of any funds available 
for Indonesia in fiscal year 2004 under the Foreign Military 
Financing program or the International Military Education and 
Training program (with the exception of funds under the 
expanded IMET program) on the receipt of a certification 
submitted by the President that the Government of Indonesia and 
the Indonesian Armed Forces are taking effective measures to 
conduct an investigation of the attack on United States 
citizens in Indonesia on August 31, 2002 and to criminally 
prosecute the individuals responsible for the attack.

Sec. 519. Assistance to Combat HIV/AIDS in Certain Countries of the 
        Caribbean

    This section's purpose is to include certain nations of the 
Caribbean Region where HIV/AIDS prevalence is second only to 
sub-Saharan Africa, on the list of countries eligible for 
assistance from the Combat HIV/AIDS Globally Fund.

Sec. 520. Repeal of Obsolete Assistance Authority

    This section repeals various authorities that have been 
included in the Foreign Assistance Act over the last twenty 
years in response to one-time crises to provide for the relief 
and rehabilitation of various peoples around the world.

Sec. 521. Technical Corrections

    This section makes technical corrections to several foreign 
assistance laws.

                     V. Regulatory Impact Statement

    In accordance with rule XXVI, paragraph 11(b) of the 
Standing Rules of the Senate, the Committee has concluded that 
section 240 of the bill will slightly lessen the burden for 
producers of commercial communications satellites.

                           VI. Cost Estimate

    Rule XXVI, paragraph 11(a) of the Standing Rules of the 
Senate requires that Committee reports on bills or joint 
resolutions contain a cost estimate for such legislation. The 
provisions of Rule XXVI paragraph 11(a) were not complied with 
because of time constraints. The Chairman will publish the 
Congressional Budget Office estimate of the bill in the 
Congressional Record when it is provided.

                      VII. Changes in Existing Law

    It is the opinion of the Committee that it is necessary to 
dispense with the requirements of Rule 26.12 of the Standing 
Rules of the Senate in order to expedite the business of the 
Senate.

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