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                                                       Calendar No. 132
104th Congress                                                   Report
                                 SENATE

 1st Session                                                     104-99
_______________________________________________________________________


 
                   FOREIGN AID REDUCTION ACT OF 1995

                                _______


    June 23 (legislative day, June 19), 1995.--Ordered to be printed

_______________________________________________________________________


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

                              R E P O R T

                             together with

                     ADDITIONAL AND MINORITY VIEWS

                         [To accompany S. 961]
    The Committee on Foreign Relations having had under 
consideration an original bill to amend the Foreign Assistance 
Act of 1961 and the Arms Export Control Act to authorize 
reduced levels of appropriations for foreign assistance 
programs for fiscal years 1996 and 1997 and for other purposes, 
reports favorably thereon and recommends that the bill do pass.
                                CONTENTS

                                                                   Page
Background and Purposes..........................................     1
Committee Action.................................................     3
Foreign Aid Overview.............................................    11
Section-by-Section Analysis......................................    25
Cost Estimate....................................................    98
Evaluation of Regulatory Impact..................................   101
Additional Views.................................................   102
Minority Views...................................................   110
Changes in Existing Law..........................................   121
                         Background and Purpose

    The Foreign Aid Reduction Act of 1995 will allow the United 
States to maintain its role as the only superpower in the world 
and to further American national interests overseas, while 
recognizing the extreme budget constraints facing our Nation. 
This legislation reduces spending on foreign assistance for 
fiscal years 1996 and 1997 and establishes new directions and 
priorities for foreign aid.
    The goals of this bill are to ensure that: (1) U.S. 
national security interests are protected; (2) export markets 
are increased for U.S. businesses; (3) transnational threats to 
American security, such as narcotics trafficking, terrorism, 
and weapons proliferation, are reduced; (4) private sector 
economic growth and democracy take hold around the globe; (5) 
and the U.S. Government maintains tools to respond effectively 
to urgent international humanitarian crises.
    The Foreign Aid Reduction Act of 1995 reduces foreign aid 
by levels consistent with those the President recently 
recommended to achieve a balanced budget. In an address to the 
Nation on June 14, 1995, the President stated, ``I propose to 
cut spending in discretionary areas other than defense by an 
average of 20 percent, except education.'' This bill is a 
significant reduction in both the fiscal year 1995 appropriated 
level for foreign aid and the fiscal year 1996 budget request 
as submitted by the President. This bill cuts $2.104 billion 
from the fiscal year 1995 enacted level, and $2,994,000,000 
from the President's fiscal year 1996 request, including 
denying the administration's $1.25 billion requested 
authorization for the International Development Agency [IDA] 
and $25 million request for the Enhanced Structural Adjustment 
Facility [ESAF].

                        CUTS FAIRLY DISTRIBUTED

    The Foreign Aid Reduction Act of 1995 cuts foreign aid 
across the board 19 percent below the fiscal year 1995 funding 
levels and 25 percent below the President's fiscal year 1996 
budget request. These reductions have been distributed over 
nearly every account in the bill.
    While the committee places a high priority on security 
assistance programs in the foreign aid budget, these programs 
cannot be immune from funding reductions. Every effort was made 
to preserve this funding, which directly benefits American 
security and assists our friends and allies around the world. 
This bill, however, reduces funding for the Foreign Military 
Financing [FMF] program by $15 million below the current fiscal 
year level and 5 percent below the President's request for 
fiscal year 1996, providing less than $100,000,000 for all 
receipts other than the Camp David countries. The bill reduces 
by 32 percent the Administration request for the International 
Military Education and Training [IMET] program. Funding for the 
Economic Support Fund [ESF] essentially has been maintained at 
the fiscal year 1995 appropriated level. The committee also 
recommends $25 million for nonproliferation and disarmament 
programs, as requested by the administration.
    Recognizing the importance of certain humanitarian 
programs, the committee, has authorized funding at the level 
requested by the administration. The United Nations Children's 
Fund [UNICEF], the Peace Corps, and the Disaster Assistance 
account also have been fully funded at requested levels. The 
committee also has provided full funding for those programs 
which directly benefit Americans or which assist U.S. business. 
Assistance for antiterrorism programs and for the Trade and 
Development Agency is provided at the level requested by the 
President. Antinarcotics assistance is funded at the fiscal 
year 1995 appropriated level.
    The committee is recommending consolidation of several 
existing development and economic assistance programs. The 
committee believes this consolidation is consistent with the 
administration's request for additional flexibility. Under this 
bill, Development Assistance [DA], the Development Fund for 
Africa [DFA], funding for Eastern Europe and the Baltics 
[SEED], and aid for the Newly Independent States [FREEDOM 
Support Act], have been combined into a single funding source. 
This allows the administration unprecedented flexibility in 
meeting the rapidly changing needs of an uncertain world. The 
administration will have expanded latitude to determine which 
regions of the world--indeed which countries and which 
programs--are of greatest significance to U.S. national 
interest. Overall funding for the Development Assistance Fund 
will be 23 percent below current year funding and 27.5 percent 
below the administration's combined requests for these 
programs.
    The committee recommends sharp reductions in multilateral 
programs. Supporters of multilateral aid argue that these 
programs leverage U.S. assistance with that of other donors. 
Leveraged assistance, however, is beneficial only if it is 
directed to friendly nations and allies. Too often, 
multilateral programs carried out through the United Nations 
and international financial institutions have benefited nations 
not supportive of U.S. foreign policy goals. Funding for the 
international organizations and programs [IO&P;] account have 
been cut 47 percent below the fiscal year 1995 appropriated 
level. This account funds more than 2 dozen United Nations 
voluntary programs. The committee does not believe that the 
United States should continue to contribute to many of these 
voluntary U.N. programs in the future. America continues to 
contribute more through its assessed contributions than any 
other nation to the United Nations. The committee has rejected 
the administration's request to fund the third year 
authorization for the International Development Association 
[IDA] and the IMF's Enhanced Structural Adjustment Facility 
[ESAF].
    This bill does not authorize funding for either the Agency 
for International Development's operating expenses [OE] or its 
Inspector General's Office [IG]. Traditionally, both OE and IG 
funding have been authorized as part of the foreign assistance 
legislation. However, the committee this year passed landmark 
legislation to consolidate and streamline the U.S. foreign 
policy apparatus. A key component of this reorganization 
legislation (S. 908) is the abolition of AID and the 
integration of its essential operations into the Department of 
State. For this reason, AID/OE and IG accounts are authorized 
in S. 908.
                            Committee Action

    The Committee on Foreign Relations held a number of 
hearings on the International Affairs budget and on the future 
of U.S. foreign assistance programs. Several of these hearings 
served a dual purpose: To consider legislation to reorganize 
and streamline U.S. foreign affairs agencies and to review U.S. 
bilateral and multilateral foreign aid programs. Hearings on 
these issues are as follows:
    February 14, 1995--the Honorable Warren Christopher, 
Secretary of State, testified on the President's international 
affairs budget request for fiscal year 1996.
    March 23, 1995--the Honorable Lawrence Eagleburger, former 
Secretary of State, partner at Baker, Donelson, Bearman and 
Caldwell; the Honorable Brent Scowcroft, former National 
Security Advisor, current president of the Forum for 
International Policy; the Honorable McGeorge Bundy, former 
Special Assistant for National Security Affairs, scholar-in-
residence, Carnegie Corporation; the Honorable Fred Ikle, 
former Director of the Arms Control and Disarmament Agency, 
Center for Strategic and International Studies; Ms. Julia Taft, 
former Director of the Office of Foreign Disaster Assistance, 
president and CEO of InterAction-American Council for Voluntary 
International Action; and the Honorable Lannon Walker, 
Chairman, Senior Foreign Service Association, testified on the 
implications of reorganizing the United States foreign affairs 
apparatus to include the dismantlement of the Arms Control and 
Disarmament Agency, the Agency for International Development 
and the U.S. Information Agency and folding their functions and 
personnel into a more effective, streamlined Department of 
State.
    March 30, 1995--Ms. Linda F. Powers, vice president, Global 
Finance, ENRON Development Corporation; Dr. John D. Kasarda, 
director, Kenan Institute for Private Enterprise; and Mr. John 
Sewell, president, Overseas Development Council offered 
alternatives to traditional bilateral and multilateral foreign 
aid and to its traditional conduit for funding, the Agency for 
International Development.
    The Subcommittee on International Operations held two 
hearings at which representatives of four Federal agencies 
testified. These hearings focused primarily on efforts by the 
committee to reorganize and streamline U.S. foreign policy 
bureaucracies. Significant attention was paid to the role of 
foreign aid in foreign policy formulation.
    March 30, 1995--the Honorable Richard M. Moose, Under 
Secretary of State for Management; the Honorable John D. Holum, 
Director, Arms Control and Disarmament Agency, the Honorable 
Joseph D. Duffey, Director, U.S. Information Agency; the 
Honorable J. Brian Atwood, Administrator, Agency for 
International Development; and the Honorable Jeffrey E. Garten, 
Under Secretary of Commerce for International Trade testified 
on the administration's position on the implications of 
reorganizing the U.S. foreign affairs agencies. The Honorable 
Robert M. Kimmitt, managing director, Lehman Brothers; Dr. 
William Schneider, Jr., president, International Planning 
Services, Inc.; and Mr. John Rhinelander, partner at Shaw, 
Pittman, Potts and Trowbridge presented their views on the 
reorganization plan.
    May 11, 1995--the Honorable Mitch McConnell, U.S. Senator 
and Chairman, Foreign Operations Subcommittee; the Honorable 
Richard M. Moose, Under Secretary of State for Management; the 
Honorable Michael Nacht, Assistant Director, Strategic and 
Eurasian Affairs Bureau, Arms Control and Disarmament Agency; 
the Honorable Joseph D. Duffey, Director, U.S. Information 
Agency; and the Honorable J. Brian Atwood, Administrator, 
Agency for International Development appeared before the 
committee at their request as a followup to the March 30 
hearing and to testify on the draft committee reorganization 
bill that was to be considered by the committee on May 17, 
1995.
    The Subcommittee on Middle East held one hearing dedicated 
exclusively to oversight of U.S. assistance programs in the 
Middle East:
    May 11, 1995--the Honorable Robert Pelletreau, Assistant 
Secretary of State for Near Eastern Affairs; the Honorable 
Margaret Carpenter, Assistant Administrator of the Agency for 
International Development for Asia and Near East; and the 
Honorable Molly K. Williamson, Deputy Assistant Secretary of 
Defense for Middle East and African Affairs. The committee 
heard from a public panel consisting of Mr. Neal Sher, 
American-Israel Public Affairs Committee; Mr. Richard W. 
Murphy, Council on Foreign Relations; and Mr. James J. Zogby, 
Arab-American Institute.
    On May 23, 1995, and June 7, 1995, the Committee on Foreign 
Relations considered an original committee bill, the ``Foreign 
Aid Reduction Act of 1995,'' which was ordered reported 
favorably to the Senate floor on June 7, 1995. A majority of 
the members were present and voted in the affirmative, 10 to 8, 
to report the bill favorably.

                             Final Passage

    Motion by Senator Lugar (seconded by Senator Brown) to 
report the ``Foreign Aid Reduction Act of 1995'' out of 
committee. The bill would reduce the administration's fiscal 
year 1996 budget request by $2.994 billion and reduce $2.104 
billion from the appropriated level in fiscal year 1995.

------------------------------------------------------------------------
 Name and State    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,           X   ........  Claiborne Pell,  ........        X 
 NC, Chairman.                        RI.                               
Richard G.             X   ........  Joseph R. Biden  ........        X 
 Lugar, IN.                           Jr., DE.                          
Nancy L.               X   ........  Paul S.          ........        X 
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.        X   ........  Christopher J.   ........        X 
                                      Dodd, CT.                         
Paul Coverdell,        X   ........  John F. Kerry,   ........        X 
 GA.                                  MA.                               
Olympia J.             X   ........  Charles S.       ........        X 
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,         X   ........  Russell D.       ........        X 
 TN.                                  Feingold, WI.                     
Craig Thomas,          X   ........  Dianne                 X         X 
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..        X   ........  ...............  ........  ........
John Ashcroft,         X               .............                    
 MO.                                                                    
                --------------------                 -------------------
      Total....  ........  ........  ...............       10         8 
------------------------------------------------------------------------

                Rollcall Votes on Amendments and Motions

    During committee consideration of the bill, the following 
recorded votes were taken:
    Amendment by Senator Brown modifying section 620E of the 
Foreign Assistance Act of 1961 (relating to prohibitions on aid 
to Pakistan).

------------------------------------------------------------------------
 Name and State    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,           X   ........  Claiborne Pell,        X   ........
 NC, Chairman.                        RI.                               
Richard G.             X   ........  Joseph R. Biden  ........        X 
 Lugar, IN.                           Jr., DE.                          
Nancy L.               X   ........  Paul S.          ........        X 
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.        X   ........  Christopher J.         X   ........
                                      Dodd, CT.                         
Paul Coverdell,        X   ........  John F. Kerry,         X   ........
 GA.                                  MA.                               
Olympia J.             X   ........  Charles S.             X   ........
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,         X   ........  Russell D.             X   ........
 TN.                                  Feingold, WI.                     
Craig Thomas,          X   ........  Dianne                 X   ........
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..        X   ........  ...............  ........  ........
                --------------------                 -------------------
John Ashcroft,         X   ........  ...............  ........  ........
 MO.                                                                    
      Total....  ........  ........  ...............       16         2 
------------------------------------------------------------------------

    Amendment by Senator Sarbanes to the Brown motion regarding 
authorization ceiling.

------------------------------------------------------------------------
 Name and State    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,     ........        X   Claiborne Pell,        X   ........
 NC, Chairman.                        RI.                               
Richard G.       ........        X   Joseph R. Biden        X   ........
 Lugar, IN.                           Jr., DE.                          
Nancy L.         ........        X   Paul S.                X   ........
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.  ........        X   Christopher J.         X   ........
                                      Dodd, CT.                         
Paul Coverdell,  ........        X   John F. Kerry,         X   ........
 GA.                                  MA.                               
Olympia J.       ........        X   Charles S.             X   ........
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,   ........        X   Russell D.             X   ........
 TN.                                  Feingold, WI.                     
Craig Thomas,    ........        X   Dianne                 X   ........
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..  ........        X   ...............  ........  ........
John Ashcroft,   ........        X   ...............  ........  ........
 MO.                                                                    
                --------------------                 -------------------
      Total....  ........  ........  ...............        8         9 
------------------------------------------------------------------------

    Motion by Senator Brown that no amendments be offered in 
committee to the Foreign Aid Reduction Act of 1995 which would 
increase the authorization level above Senate Budget 
Committee's funding level.

------------------------------------------------------------------------
 Name and State    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,           X   ........  Claiborne Pell,  ........        X 
 NC, Chairman.                        RI.                               
Richard G.       ........        X   Joseph R. Biden  ........        X 
 Lugar, IN.                           Jr., DE.                          
Nancy L.               X   ........  Paul S.          ........        X 
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.        X   ........  Christopher J.   ........        X 
                                      Dodd, CT.                         
Paul Coverdell,        X   ........  John F. Kerry,   ........        X 
 GA.                                  MA.                               
Olympia J.             X   ........  Charles S.       ........        X 
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,         X   ........  Russell D.             X   ........
 TN.                                  Feingold, WI.                     
Craig Thomas,          X   ........  Dianne           ........        X 
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..        X   ........  ...............  ........  ........
John Ashcroft,         X   ........  ...............  ........  ........
 MO.                                                                    
                --------------------                 -------------------
      Total....  ........  ........  ...............       10         8 
------------------------------------------------------------------------

    Amendment offered by Senator Snowe expressing the Sense of 
Congress that the Russian Federation should be condemned if it 
provides nuclear technology to Iran and that United States 
foreign aid should be terminated.

------------------------------------------------------------------------
 Name and State    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,           X   ........  Claiborne Pell,        X   ........
 NC, Chairman.                        RI.                               
Richard G.             X   ........  Joseph R. Biden        X   ........
 Lugar, IN.                           Jr., DE.                          
Nancy L.               X   ........  Paul S.                X   ........
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.  ........  ........  Christopher J.         X   ........
                                      Dodd, CT.                         
Paul Coverdell,        X   ........  John F. Kerry,         X   ........
 GA.                                  MA.                               
Olympia J.             X   ........  Charles S.             X   ........
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,         X   ........  Russell D.             X   ........
 TN.                                  Feingold, WI.                     
Craig Thomas,          X   ........  Dianne                 X   ........
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..        X   ........  ...............  ........  ........
John Ashcroft,         X   ........  ...............  ........  ........
 MO.                                                                    
                --------------------                 -------------------
      Total....  ........  ........  ...............       17         0 
------------------------------------------------------------------------

    Amendment offered by Senator Kassebaum to delete section 
608 of the bill relating to a prohibition on funding for the 
International Development Association [IDA] for fiscal year 
1997.

------------------------------------------------------------------------
 Name and State    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,     ........        X   Claiborne Pell,        X   ........
 NC, Chairman.                        RI.                               
Richard G.             X   ........  Joseph R. Biden        X   ........
 Lugar, IN.                           Jr., DE.                          
Nancy L.               X   ........  Paul S.                X   ........
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.  ........        X   Christopher J.         X   ........
                                      Dodd, CT.                         
Paul Coverdell,        X   ........  John F. Kerry,         X   ........
 GA.                                  MA.                               
Olympia J.       ........  ........  Charles S.             X   ........
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,         X   ........  Russell D.             X   ........
 TN.                                  Feingold, WI.                     
Craig Thomas,          X   ........  Dianne                 X   ........
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..        X   ........  ...............  ........  ........
John Ashcroft,   ........  ........  ...............  ........  ........
 MO.                                                                    
                --------------------                 -------------------
      Total....  ........  ........  ...............       14         2 
------------------------------------------------------------------------

    Amendment offered by Senator Feingold to provide up to $35 
million for the United Nations Fund for Population Activities 
[UNFPA] unless certain conditions are not met.

------------------------------------------------------------------------
 Name and state    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,     ........        X   Claiborne Pell,        X   ........
 NC, Chairman.                        RI.                               
Richard G.       ........        X   Joseph R. Biden  ........  ........
 Lugar, IN.                           Jr., DE.                          
Nancy L.               X   ........  Paul S.                X   ........
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.        X   ........  Christopher J.         X   ........
                                      Dodd, CT.                         
Paul Coverdell,  ........        X   John F. Kerry,         X   ........
 GA.                                  MA.                               
Olympia J.             X   ........  Charles S.             X   ........
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,   ........        X   Russell D.             X   ........
 TN.                                  Feingold, WI.                     
Craig Thomas,          X   ........  Dianne                 X   ........
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..  ........        X   ...............  ........  ........
John Ashcroft,   ........  ........  ...............  ........  ........
 MO.                                                                    
                --------------------                 -------------------
      Total....  ........  ........  ...............       11         5 
------------------------------------------------------------------------

    Amendment offered by Senators Feinstein and Kassebaum to 
authorize United States participation in the Asian Development 
Bank and to authorize $13.2 million in each of fiscal years 
1996 and 1997 for paid-in capital.

------------------------------------------------------------------------
 Name and State    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,     ........        X   Claiborne Pell,        X   ........
 NC, Chairman.                        RI.                               
Richard G.             X   ........  Joseph R. Biden        X   ........
 Lugar, IN.                           Jr., DE.                          
Nancy L.               X   ........  Paul S.                X   ........
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.  ........        X   Christopher J.         X   ........
                                      Dodd, CT.                         
Paul Coverdell,  ........        X   John F. Kerry,         X   ........
 GA.                                  MA.                               
Olympia J.       ........        X   Charles S.             X   ........
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,   ........        X   Russell D.             X   ........
 TN.                                  Feingold, WI.                     
Craig Thomas,          X   ........  Dianne                 X   ........
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..  ........        X   ...............  ........  ........
John Ashcroft,   ........        X   ...............  ........  ........
 MO.                                                                    
                --------------------                 -------------------
      Total....  ........  ........  ...............       11         7 
------------------------------------------------------------------------

    Amendment offered by Senator Brown expressing the sense of 
Congress that the Republic of China's [Taiwan] membership in 
the World Trade Organization [WTO] should be a priority and 
that the United States should support Taiwan's entry in WTO.

------------------------------------------------------------------------
 Name and State    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,           X   ........  Claiborne Pell,        X   ........
 NC, Chairman.                        RI.                               
Richard G.             X   ........  Joseph R. Biden  ........  ........
 Lugar, IN.                           Jr., DE.                          
Nancy L.               X   ........  Paul S.                X   ........
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.        X   ........  Christopher J.         X   ........
                                      Dodd, CT.                         
Paul Coverdell,        X   ........  John F. Kerry,         X   ........
 GA.                                  MA.                               
Olympia J.             X   ........  Charles S.             X   ........
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,         X   ........  Russell D.             X   ........
 TN.                                  Feingold, WI.                     
Craig Thomas,          X   ........  Dianne                 X   ........
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..        X   ........  ...............  ........  ........
John Ashcroft,         X   ........  ...............  ........  ........
 MO.                                                                    
                --------------------                 -------------------
      Total....  ........  ........  ...............       17         0 
------------------------------------------------------------------------

    Amendment offered by Senators Kerry, Pell, Sarbanes and 
Snowe to authorize an additional $45 million in each of fiscal 
years 1996 and 1997 to the International Organizations and 
Programs account and to strike the prohibition on fiscal year 
1996 funding for 14 United Nations voluntary programs.

------------------------------------------------------------------------
 Name and State    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,     ........        X   Claiborne Pell,        X   ........
 NC, Chairman.                        RI.                               
Richard G.             X   ........  Joseph R. Biden        X   ........
 Lugar, IN.                           Jr., DE.                          
Nancy L.               X   ........  Paul S.                X   ........
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.  ........        X   Christopher J.         X   ........
                                      Dodd, CT.                         
Paul Coverdell,        X   ........  John F. Kerry,         X   ........
 GA.                                  MA.                               
Olympia J.             X   ........  Charles S.             X   ........
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,   ........        X   Russell D.             X   ........
 TN.                                  Feingold, WI.                     
Craig Thomas,    ........        X   Dianne                 X   ........
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..  ........        X   ...............  ........  ........
John Ashcroft,   ........        X   ...............  ........  ........
 MO.                                                                    
                --------------------                 -------------------
      Total....  ........  ........  ...............       12         6 
------------------------------------------------------------------------

    Amendment by Senator Pell to authorize $20 million in each 
of fiscal years 1996 and 1997 for the American Schools and 
Hospitals Abroad (ASHA) program.

------------------------------------------------------------------------
 Name and State    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,     ........        X   Claiborne Pell,        X   ........
 NC, Chairman.                        RI.                               
Richard G.       ........        X   Joseph R. Biden        X   ........
 Lugar, IN.                           Jr., DE.                          
Nancy L.         ........        X   Paul S.                X   ........
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.        X   ........  Christopher J.         X   ........
                                      Dodd, CT.                         
Paul Coverdell,  ........        X   John F. Kerry,         X   ........
 GA.                                  MA.                               
Olympia J.       ........        X   Charles S.             X   ........
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,   ........        X   Russell D.             X   ........
 TN.                                  Feingold, WI.                     
Craig Thomas,    ........        X   Dianne                 X   ........
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..  ........        X   ...............  ........  ........
John Ashcroft,   ........        X   ...............  ........  ........
 MO.                                                                    
                --------------------                 -------------------
      Total....  ........  ........  ...............        9         9 
------------------------------------------------------------------------

    Amendment by Senator Brown to authorize $10 million in 
Economic Support Funds (ESF) in fiscal year 1996 for the 
development of an industrial park on the border in Gaza or the 
West Bank.

------------------------------------------------------------------------
 Name and State    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,     ........        X   Claiborne Pell,        X   ........
 NC, Chairman.                        RI.                               
Richard G.             X   ........  Joseph R. Biden        X   ........
 Lugar, IN.                           Jr., DE.                          
Nancy L.               X   ........  Paul S.                X   ........
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.        X   ........  Christopher J.         X   ........
                                      Dodd, CT.                         
Paul Coverdell,  ........        X   John F. Kerry,         X   ........
 GA.                                  MA.                               
Olympia J.       ........        X   Charles S.             X   ........
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,   ........        X   Russell D.             X   ........
 TN.                                  Feingold, WI.                     
Craig Thomas,    ........        X   Dianne                 X   ........
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..  ........        X   ...............  ........  ........
John Ashcroft,   ........        X   ...............  ........  ........
 MO.                                                                    
                --------------------                 -------------------
      Total....  ........  ........  ...............       11         7 
------------------------------------------------------------------------

    Amendment offered by Senator Brown to authorize $15 in 
Economic Support Funds (ESF) in fiscal year 1996 for the 
International Fund for Ireland.

------------------------------------------------------------------------
 Name and State    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,     ........        X   Claiborne Pell,        X   ........
 NC, Chairman.                        RI.                               
Richard G.             X   ........  Joseph R. Biden        X   ........
 Lugar, IN.                           Jr., DE.                          
Nancy L.               X   ........  Paul S.                X   ........
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.        X   ........  Christopher J.         X   ........
                                      Dodd, CT.                         
Paul Coverdell,        X   ........  John F. Kerry,         X   ........
 GA.                                  MA.                               
Olympia J.             X   ........  Charles S.             X   ........
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,   ........        X   Russell D.             X   ........
 TN.                                  Feingold, WI.                     
Craig Thomas,    ........        X   Dianne                 X   ........
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..  ........        X   ...............  ........  ........
John Ashcroft,         X   ........  ...............  ........  ........
 MO.                                                                    
                --------------------                 -------------------
      Total....  ........  ........  ...............       14         4 
------------------------------------------------------------------------

    Amendment offered by Senator Dodd to allow certain types of 
assistance for Nicaragua.

------------------------------------------------------------------------
 Name and State    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,     ........        X   Claiborne Pell,        X   ........
 NC, Chairman.                        RI.                               
Richard G.             X   ........  Joseph R. Biden        X   ........
 Lugar, IN.                           Jr., DE.                          
Nancy L.               X   ........  Paul S.                X   ........
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.  ........        X   Christopher J.         X   ........
                                      Dodd, CT.                         
Paul Coverdell,  ........        X   John F. Kerry,         X   ........
 GA.                                  MA.                               
Olympia J.       ........        X   Charles S.             X   ........
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,   ........        X   Russell D.             X   ........
 TN.                                  Feingold, WI.                     
Craig Thomas,    ........        X   Dianne                 X   ........
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..  ........        X   ...............  ........  ........
John Ashcroft,   ........        X   ...............  ........  ........
 MO.                                                                    
                --------------------                 -------------------
      Total....  ........  ........  ...............       10         8 
------------------------------------------------------------------------

    Amendment by Senator Feinstein to prohibit U.S. assistance 
to countries that prohibit or restrict the transport or 
delivery of U.S. humanitarian assistance.

------------------------------------------------------------------------
 Name and State    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,           X   ........  Claiborne Pell,        X   ........
 NC, Chairman.                        RI.                               
Richard G.       ........        X   Joseph R. Biden        X   ........
 Lugar, IN.                           Jr., DE.                          
Nancy L.               X   ........  Paul S.                X   ........
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.  ........        X   Christopher J.         X   ........
                                      Dodd, CT.                         
Paul Coverdell,        X   ........  John F. Kerry,         X   ........
 GA.                                  MA.                               
Olympia J.             X   ........  Charles S.             X   ........
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,         X   ........  Russell D.             X   ........
 TN.                                  Feingold, WI.                     
Craig Thomas,          X   ........  Dianne                 X   ........
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..  ........        X   ...............  ........  ........
John Ashcroft,   ........        X   ...............  ........  ........
 MO.                                                                    
                --------------------                 -------------------
      Total....  ........  ........  ...............       14         4 
------------------------------------------------------------------------

    Brown amendment to Sarbanes cargo preference.

------------------------------------------------------------------------
 Name and State    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,           X   ........  Claiborne Pell,  ........        X 
 NC, Chairman.                        RI.                               
Richard G.             X   ........  Joseph R. Biden  ........        X 
 Lugar, IN.                           Jr., DE.                          
Nancy L.               X   ........  Paul S.          ........        X 
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.        X   ........  Christopher J.   ........        X 
                                      Dodd, CT.                         
Paul Coverdell,  ........        X   John F. Kerry,   ........        X 
 GA.                                  MA.                               
Olympia J.       ........        X   Charles S.       ........        X 
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,   ........        X   Russell D.       ........        X 
 TN.                                  Feingold, WI.                     
Craig Thomas,    ........  ........  Dianne           ........        X 
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..        X   ........  ...............  ........  ........
John Ashcroft,         X   ........  ...............  ........  ........
 MO.                                                                    
                --------------------                 -------------------
      Total....  ........  ........  ...............        6        11 
------------------------------------------------------------------------

    Amendment by Senator Feinstein to strike section 167 of the 
bill relating to thresholds for notification to Congress of 
arms sales.

------------------------------------------------------------------------
 Name and State    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,     ........        X   Claiborne Pell,        X   ........
 NC, Chairman.                        RI.                               
Richard G.       ........        X   Joseph R. Biden        X   ........
 Lugar, IN.                           Jr., DE.                          
Nancy L.               X   ........  Paul S.                X   ........
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.  ........        X   Christopher J.         X   ........
                                      Dodd, CT.                         
Paul Coverdell,  ........        X   John F. Kerry,         X   ........
 GA.                                  MA.                               
Olympia J.             X   ........  Charles S.             X   ........
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,   ........        X   Russell D.             X   ........
 TN.                                  Feingold, WI.                     
Craig Thomas,    ........        X   Dianne                 X   ........
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..  ........        X   ...............  ........  ........
John Ashcroft,   ........        X   ...............  ........  ........
 MO.                                                                    
                --------------------                 -------------------
      Total....  ........  ........  ...............       10         8 
------------------------------------------------------------------------

    Sarbanes amendment regarding cargo preference.

------------------------------------------------------------------------
 Name and State    Yeas      Nays     Name and State    Yeas      Nays  
------------------------------------------------------------------------
Jesse Helms,     ........        X   Claiborne Pell,        X   ........
 NC, Chairman.                        RI.                               
Richard G.       ........        X   Joseph R. Biden        X   ........
 Lugar, IN.                           Jr., DE.                          
Nancy L.         ........        X   Paul S.                X   ........
 Kassebaum, KS.                       Sarbanes, MD.                     
Hank Brown, CO.  ........        X   Christopher J.         X   ........
                                      Dodd, CT.                         
Paul Coverdell,  ........        X   John F. Kerry,         X   ........
 GA.                                  MA.                               
Olympia J.             X   ........  Charles S.             X   ........
 Snowe, ME.                           Robb, VA.                         
Fred Thompson,   ........        X   Russell D.             X   ........
 TN.                                  Feingold, WI.                     
Craig Thomas,    ........        X   Dianne                 X   ........
 WY.                                  Feinstein, CA.                    
Rod Grams, MN..  ........        X   ...............  ........  ........
John Ashcroft,   ........        X   ...............  ........  ........
 MO.                                                                    
                --------------------                 -------------------
      Total....  ........  ........  ...............        9         9 
------------------------------------------------------------------------

                   AMENDMENTS AGREED TO BY VOICE VOTE

    During committee consideration of the bill, the following 
amendments were agreed to by voice vote:
    A new section expressing a statement of policy on Africa, 
offered by Senators Feingold and Kassebaum.
    Modify section 315 relating to Private Voluntary 
Organizations, offered by Senator Pell.
    Transfer $108 million in each fiscal year from the 
international narcotics control account into the development 
assistance fund, offered by Senator Kassebaum.
    Authorize foreign military financing [FMF] loans to Greece 
and Turkey in fiscal year 1997, offered by Senator Lugar.
    Sense of Senate regarding Taiwan's participation in the 
United Nations offered by Senator Brown.

                      AMENDMENTS AGREED TO EN BLOC

    During committee consideration of the bill, the following 
amendments were agreed to without objection en bloc:
    A new section expressing the Sense of the Senate on 
continuation of free trade treatment for Gaza and Jericho.
    A new section expressing the Sense of the Senate supporting 
the resolution to the dispute regarding Cyprus.
    A new section expressing the Sense of the Senate on free 
trade area for Taba, Elat and Aqaba.
    Delete section 722 regarding expropriation of American 
property.
    Modify section 506 regarding sanctions against Colombia for 
illegal drugs and trafficking activity.
    Modify section 508 regarding involvement of Mexican 
Government officials in illegal drug trafficking.
    Delete section 703 regarding earmarks.
    Add a new section requiring a report on Russian 
expropriation issues.
    A new section expressing the sense of the Senate on 
countries in transition to a free market economy.
    Add language to section 311 regarding percentage of 
assistance for the Development Fund for Africa.
    Modify section 730 regarding mercenary forces.
    Modify section 320 regarding limitation on waivers.
    Modify section 502 regarding assistance to Nicaragua.
    Modify section 605 regarding assistance to Burma.
    A new section regarding deadlines for evaluation of and 
report on health care services provided to Peace Corps 
volunteers.

                 TECHNICAL AMENDMENTS AGREED TO EN BLOC

    During Committee consideration of the bill, the following 
technical and conforming amendments were agreed to without 
objection en bloc:
    Modify section 162 regarding the standardization of third 
country transfers of defense articles.
    Modify section 302 regarding microenterprises and credit 
reform.
    Modify section 509 regarding antinarcotics activities in 
Burma.
    Modify section 668 regarding transportation expenses for 
humanitarian assistance.
    Modify section 721 regarding national interest 
requirements.
                          Foreign Aid Overview

    On June 7, the Foreign Relations Committee approved the 
``Foreign Aid Reduction Act of 1995,'' which cuts from the 
President's foreign aid budget request $6.23 billion in fiscal 
years 1996 and 1997. On May 17, 1995, the Committee on Foreign 
Relations approved the ``Foreign Relations Revitalization Act 
of 1995'' (S. 908), which is an historic plan to streamline 
U.S. foreign policy institutions and save U.S. taxpayers more 
than $3.5 billion over 5 years. These cuts are necessary to 
achieve the spending reductions allocated for the international 
affairs budget function (150 account) and a balanced Federal 
budget by 2002, as approved by the Senate on May 25, 1995.
    For more than 50 years, Americans have handed out 
$450,000,000,000 in foreign aid (not adjusted for inflation)--
far more than any other nation in the world. The United States 
provided some form of foreign aid to 148 countries in fiscal 
year 1995, and for fiscal year 1996, the administration 
requests providing foreign aid to 145 countries. The Agency for 
International Development [AID] has announced that it is 
closing missions in 22 countries, but many of those countries 
will still receive foreign aid and AID personnel will remain.
    What began as a temporary effort to help rebuild war-torn 
Europe has today become an ``entitlement program'' that shovels 
billions of dollars each year to nearly every developing nation 
on Earth. For example, as part of his budget, the President 
requested a 500 percent increase in ``debt forgiveness,'' above 
fiscal year 1995 to forgive the debt which foreign countries 
owe to the U.S. Government. While the U.S. Government spirals 
deeper into debt, the President's budget proposes to cancel 
debt that other nations are obligated to pay to the United 
States, and provide some of those same countries with 
additional foreign aid grants.
    Since foreign aid has been financed by borrowing, and 
interest payments have also been financed by borrowing, the 
actual cost of foreign aid to the U.S. according to a 
Congressional Research Service study, is nearly $2 trillion 
dollars (not adjusting for inflation). Some of this has been 
recovered in the purchase of U.S. goods and services (primarily 
military hardware) and in repayments of government-to-
government loans. U.S. Government debt stood at 
$4,904,368,578,709.58 when the ``Foreign Aid Reduction Act'' 
was approved by the committee.
    Since the 104th Congress began, an invigorated debate has 
arisen about the need for, and usefulness of, foreign aid. 
Defenders of the 35 years of status quo in foreign aid have 
attempted to justify continuing to spend more than 
$14,000,000,000 annually. Others, however, question whether the 
United States should continue to finance high levels of foreign 
aid in light of the enormous U.S. budget deficit and the lack 
of evidence that development programs actually benefit the 
poorer nations they purport to assist. In fact, this failure in 
foreign aid prompted the Clinton administration's Task Force on 
Foreign Aid Reform (the Wharton report) to state, ``despite 
decades of foreign assistance, most of Africa and parts of 
Latin America, Asia and the Middle East are economically worse 
off today than they were 20 years ago.''

                 foreign aid stifles free market growth

    A nation does not develop a vibrant economy through 
development aid, but by its adoption of an economic system 
which encourages individual initiative through minimal state 
intervention. Development stagnates in countries which fail to 
protect private property, expropriate wealth through high 
levels of taxation, and repress entrepreneurship through 
regulation and policies that favor state enterprises. 
Development aid at best may make a marginal contribution to the 
transformation of statist economies into market-based 
economies. Too often, the U.S. Development Aid Program, acting 
in conjunction with other donors, including the World Bank, 
regional development banks, and the International Monetary 
Fund, have hindered such transitions by subsidizing statist 
economic policies. Further, U.S. bilateral government-to-
government aid programs, many involving large grant cash 
transfers, assisted in propping up regimes which were 
undemocratic and which routinely violated the rights of their 
own citizens.
    The importance of a sound free market economy is evident in 
many of the development success stories, including Taiwan and 
Chile, which started on their road to economic development only 
after their development aid was ended, largely for political 
reasons. Only then, without the development aid subsidy, were 
these countries forced to implement their trying, yet 
ultimately successful, free market policies.
    The most powerful tool to foster economic growth in 
developing nations is the development of the private sector. 
That development assistance should be concentrated on nations 
which promote private sector economic growth was a 
recommendation of the President's Commission on the Management 
of AID Programs (1992). The Committee supports this policy as 
it would supply a desperately needed focus to the development 
assistance program, which has been burdened with an excessive 
number of objectives. It is worth investing resources only in 
those countries supportive of private sector economic growth 
and which welcome the entry of the U.S. private sector in their 
economies.

                     foreign aid fosters dependency

    Many of the countries now being phased out of the U.S. 
Development Aid Program through consolidation of AID missions 
are not ``graduates'' in the traditional sense--that is, these 
are not countries whose development aid has ended due to their 
new-found prosperity. Instead, AID has been justifiably 
eliminating programs in countries which are not good 
``development partners.'' Thus it is possible that with changed 
conditions--that is, a democratically elected government coming 
to power in Zaire--the number of countries receiving 
development aid could once again increase. It is essential, 
however, that there be some degree of pressure for final 
termination of U.S. development aid programs. The U.S. 
Development Aid Program, as well as the international 
development aid community, has lost any sense that its 
assistance efforts are to be transitional.
    Development aid has become a matter of how many dollars can 
be transferred between the governments of the developed and the 
developing world, with the Organization for Economic 
Cooperation and Development [OECD] keeping score and chastising 
``laggard'' countries, for what it has determined to be 
ungenerous official development aid spending levels. This 
phenomenon has never been more clear as in a recent internal 
AID document which in a May 3, 1995, memo states that the 
Assistant Administrator for Management, ``announced that we are 
62 percent through this fiscal year and we have 38 percent of 
the dollar volume of procurement actions completed; we need to 
do $1.9 billion in the next 5 months. So let's get moving.'' 
While AID has attempted to dismiss this memo as the informal 
views of mid-level staff, it is clear that the mentality of the 
bureaucracy and the leadership at AID is to spend as much money 
as quickly as possible. Whether or not this money is spent 
wisely and on projects which benefit U.S. national interests 
appears not to be a concern for AID.
    This traditional approach extracts a cost throughout the 
developing world, including bolstering the debilitating sense 
of entitlement. This is antithetical to the spirit of 
independence that is crucial to successful national 
development. A reaffirmation of the temporary nature of 
development aid through an annual determination of graduation 
dates, as proposed by the committee, will reinterject into 
these programs the sense of transition that accompanied the 
establishment of the development aid program and which has been 
lost over the succeeding 35 years.
    AID recently announced its intent to close a number of 
overseas missions. Currently, AID operates 90 overseas missions 
and the U.S. Government provides some form of assistance to 
nearly every developing country. In fiscal year 1995, the 
United States provided foreign aid to 148 nations; for fiscal 
year 1996, the President has requested aid for 145 countries. 
Lacking a cold war rationale and confronting dramatically 
decreasing financial resources as proposed by this legislation, 
the development aid program simply is spread too thin to be 
effective.
    Eleven countries--almost all in Latin America--have been 
receiving foreign aid since 1946. More than 70 countries have 
been receiving United States foreign aid for more than 35 
years. Most African recipients have been receiving United 
States foreign aid since before, or immediately after, gaining 
their independence from European countries. In most instances 
these nations have only stopped receiving assistance for 
negative reasons--overthrow of government, human rights abuses, 
government-sponsored drug trafficking, failure to pay 
international debt--and very few have actually graduated from 
United States aid. Rather than helping countries gain economic 
independence or democracy, the committee believes that foreign 
aid has often created a destructive cycle of dependency, 
allowing governments to postpone or avoid free market economic 
and democratic reform. The following is a list of countries 
that have received United States foreign aid for 35 years or 
more:

                           CREATING DEPENDENCY                          
------------------------------------------------------------------------
                                                             Total years
             Country                        Years                in     
                                                             dependency 
------------------------------------------------------------------------
Bolivia..........................                 1946-96            51 
Chile............................                 1946-96            51 
Columbia.........................                 1946-96            51 
Costa Rica.......................                 1946-96            51 
Ecuador..........................                 1946-96            51 
El Salvador......................                 1946-96            51 
Guatemala........................                 1946-96            51 
Haiti............................                 1946-96            51 
Honduras.........................                 1946-96            51 
Panama...........................                 1946-96            51 
Peru.............................                 1946-96            51 
Philippines......................                 1946-96            51 
India............................              1946,48-96            50 
Indonesia........................           1946-47,49-96            50 
Mexico...........................           1946-70,72-96            50 
Turkey...........................           1946-75,77-96            50 
Uruguay..........................           1946-87,89-96            50 
Liberia..........................              1946,48-95            49 
Ethiopia.........................           1946-47,51-96            48 
Nicaragua........................           1946-84,88-96            48 
Lebanon..........................              1946,51-96            47 
Thailand.........................              1946,51-96            47 
Israel...........................                 1951-96            46 
Jordan...........................                 1951-96            46 
Morocco..........................                 1952-96            45 
Nepal............................                 1952-96            45 
Dominican Rep....................                 1953-96            44 
Egypt............................     1946,48,51-67,72-96            44 
Tunisia..........................              1952,54-96            44 
Kenya............................                 1954-96            43 
Guyana...........................              1952,55-96            43 
Afghanistan......................           1950-79,85-95            42 
Sierra Leone.....................        1952,55-57,59-96            42 
Sri Lanka........................                 1955-96            42 
Zaire............................              1952,54-95            42 
Belize...........................                 1956-96            41 
Jamaica..........................                 1956-96            41 
Malawi...........................                 1956-96            41 
Somalia..........................           1954-71,75-96            40 
Uganda...........................     1954-56,58-76,79-96            40 
Gambia...........................           1956-58,61-96            39 
Ghana............................              1952,54-96            39 
Portugal.........................        1950-69,72,75-92            39 
Sudan............................              1956,58-95            39 
Tanzania.........................                 1958-96            39 
Benin............................                 1959-96            38 
Guinea...........................                 1959-96            38 
Madagascar.......................                 1959-96            38 
Togo.............................                 1959-96            38 
Zambia...........................     1953-54,60-68,70-96            38 
Cameroon.........................                 1960-96            37 
Gabon............................                 1960-96            37 
Mauritania.......................        1954,60-69,71-96            37 
Mauritius........................     1958-59,61-93,95-96            37 
Burma............................        1947,51-73,77-89            37 
Burkina Faso.....................                 1961-96            36 
Burundi..........................                 1961-96            36 
Cen Africa Rep...................                 1961-96            36 
Lesotho..........................                 1961-96            36 
Mali.............................                 1961-96            36 
Niger............................                 1961-96            36 
Nigeria..........................           1954-76,86-96            36 
Senegal..........................                 1961-96            36 
Seychelles.......................                 1961-96            36 
Swaziland........................                 1961-96            36 
Chad.............................           1961-80,82-96            35 
Rwanda...........................                 1962-96            35 
------------------------------------------------------------------------

             Foreign Aid: Propping Up Undemocratic Regimes

    In its fiscal year 1996 congressional presentation, AID 
attempts to link foreign aid spending to the transition from 
unfree societies to democracy in developing countries. AID 
claims that in the past 15 years, it has maintained programs in 
36 of the 57 nations that made the transition from unfree 
societies to democracy. But, AID also has programs in 54 
countries currently designated ``not free'' by the Freedom 
House publication Freedom Review.
    Supporters of development aid argue that much of the 
development and economic aid provided during the cold war went 
not for true development purposes, but to buy the support of 
dictators in strategically important proxy states. These same 
supporters argue that today's AID development budget, not 
overshadowed by cold war concerns, goes to assist nations most 
in need and which are moving unalterably toward democracy. The 
following list prepared by Freedom House shows otherwise.

                 FISCAL YEAR 1996 FOREIGN AID: NATIONS DESIGNATED ``NOT FREE'' BY FREEDOM REVIEW                
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                  Peace    FMF/IMET/            
             Nation                 DA        ESF     SAI/NIS   PL 480   NARCS    Corps       Mil        Total  
----------------------------------------------------------------------------------------------------------------
Afghanistan....................         0         0         0        0        0        0           0           0
Algeria........................         0         0         0        0        0        0          75          75
Angola.........................         0    10,000         0        0        0        0           0      10,000
Azerbaijan.....................         0         0     9,000        0        0        0           0       9,000
Bahrain........................         0         0         0        0        0        0         100         100
Bhutan.........................         0         0         0        0        0        0           0           0
Bosnia-Herzegovina.............         0         0    80,640        0        0        0         200      80,840
Brunei.........................         0         0         0        0        0        0           0           0
Burma (Myanmar)................         0         0         0        0        0        0           0           0
Burundi........................     4,813         0         0        0        0        0         125       4,938
Cameroon.......................       315         0         0        0        0    1,970         100       2,385
Chad...........................       616         0         0        0        0    1,488         100       2,204
China (P.R.C.).................         0         0         0        0        0      604           0         604
Cote de'Ivoire.................       229         0         0        0        0    1,823         160       2,212
Cuba...........................         0         0         0        0        0        0           0           0
Djibouti.......................       100         0         0        0        0        0         150         250
Egypt..........................         0   815,000         0        0        0        0   1,301,000   2,116,000
Equitorial Guinea..............        25         0         0        0        0        0           0          25
Eritrea........................     9,624         0         0    4,060        0    1,215         250      15,149
Ethiopia.......................    41,087         0         0   66,353        0    1,385         300     109,125
Gambia.........................     1,841         0         0    2,088        0    1,543           0       5,472
Guinea.........................    25,666         0         0        0        0    2,155         175      27,996
Indonesia......................    61,391         0         0    1,863        0        0         600      63,854
Iran...........................         0         0         0        0        0        0           0           0
Iraq...........................         0         0         0        0        0        0           0           0
Kazakhstan.....................         0         0    62,000        0        0    2,089         375      64,464
Kenya..........................    31,620         0         0    6,951        0    2,777         350      41,698
Korea, North...................         0         0         0        0        0        0           0           0
Laos...........................         0         0         0        0    2,000        0           0       2,000
Liberia........................         0         0         0        0        0        0           0           0
Libya..........................         0         0         0        0        0        0           0           0
Maldives.......................         0         0         0        0        0        0          80          80
Mauritania.....................       956         0         0        0        0    1,199           0       2,155
Nigeria........................    26,827         0         0        0        0        0           0      26,827
Oman...........................         0         0         0        0        0        0         110         110
Qatar..........................         0         0         0        0        0        0           0           0
Rwanda.........................     5,451         0         0        0        0        0           0       5,451
Saudi Arabia...................         0         0         0        0        0        0           0           0
Sierra Leone...................       749         0         0        0        0        0         120         869
Somalia........................     5,563         0         0        0        0        0           0       5,563
Sudan..........................         0         0         0        0        0        0           0           0
Swaziland......................       359         0         0        0        0    1,294          80       1,733
Syria..........................         0         0         0        0        0        0           0           0
Tajikistan.....................         0         0     7,000        0        0        0           0       7,000
Tanzania.......................    42,632         0         0        0        0    2,175         175      44,982
Togo...........................       265         0         0        0        0    2,272           0       2,537
Tunisia........................         0         0         0        0        0    1,912         800       2,712
Turkmenistan...................         0         0     4,000        0        0    1,232         225       5,457
United Arab Emirat.............         0         0         0        0        0        0           0           0
Uzbekistan.....................         0         0    11,000        0        0    1,199         225      12,424
Vietnam........................         0         0         0        0        0        0           0           0
Yemen..........................     9,465         0         0        0        0        0           0       9,465
Yugoslavia (Serb/M)............         0         0         0        0        0        0           0           0
Zaire..........................         0         0         0        0        0        0           0           0
                                --------------------------------------------------------------------------------
      Total....................   269,594   825,000   173,640   81,315    2,000   28,332   1,305,875   2,685,756
----------------------------------------------------------------------------------------------------------------

          Dubious Linkage Between Foreign Aid and U.S. Exports

    The Agency for International Development claims that 
foreign aid is a boon for the U.S. private sector. The General 
Accounting Office, however, disagrees. In 1993, GAO called 
``Foreign Assistance: Accuracy of AID Statistics on Dollars 
Flowing Back to the U.S. Economy is Doubtful.'' The report 
showed how AID skews its own statistics to persuade its critics 
that foreign aid is good for U.S. business.
    According to the GAO report, AID's statistics show no link 
between foreign aid and exports; the methodology of AID's 
analysis is faulty; and foreign aid expenditures are not large 
enough to have a significant positive affect on U.S. trade, 
even if there was a legitimate link between foreign aid and 
exports. Specifically, the report stated:

          The accuracy and reliability of AID reflow statistics 
        is doubtful because of significant data limitations and 
        the methodologies used to generate the statistics. AID 
        agrees that reflow statistics cannot be verified.
          AID officials said [its Buy American Reporting System 
        or] BARS statistics are not useful, nor are they being 
        used for management decision-making. The number of 
        additional jobs cannot be readily determined.

    In response to the report, AID claimed that ``while [its] 
direct impact on the U.S. economy is not large, AID's success 
in promoting economic growth significantly affects U.S. exports 
to developing countries.'' But, GAO strongly disagreed. GAO 
stated that AID's analysis ``does not document a direct linkage 
between the U.S. foreign aid program to any specific country 
and increased U.S. exports to that country.''


    Further, even though AID claims that foreign aid benefits 
businesses across the United States, its own figures confirm 
that more money goes from AID to firms in the District of 
Columbia, Virginia, and Maryland than to the other 48 States 
combined. This chart is based on information provided by AID.
    AID is more interested in funding development programs that 
have little if any relationship to promoting U.S. trade or 
promoting free markets and private enterprise. According to the 
Congressional Research Service (CRS), the President's 
$1,300,000,000 fiscal year 1996 budget request for the 
Development Assistance Fund sets aside 69 percent of the funds 
for population control and environment programs. The 
administration proposes an increase of $54 million for 
population control programs and a $24 million increase for 
environment programs. The Administration proposes to cut 
``economic growth activities'' by $87 million. Less than $15 
million is proposed for microenterprise programs, which assist 
small enterprises in developing countries. Further, AID appears 
to have a unique definition of ``economic growth.'' According 
to AID's fiscal year 1996 Congressional Presentation Documents, 
funding for the prevention of ``sexually transmitted diseases'' 
falls under the category of ``economic growth.''


    Finally, many foreign aid recipients are many years away 
from having a viable trade relationship with the United States 
despite decades of assistance. The Agency for International 
Development, in its fiscal year 1996 congressional presentation 
document, states clearly the insignificance of the U.S. export 
market to sub-Saharan Africa. Assuming a growth rate of 7 
percent over the next 30 years, AID expects the total market of 
all sub-Saharan Africa countries will only be equal to the size 
of the Japanese market today. Since the United States' economy 
is expected to growth considerably over this same period, trade 
with sub-Saharan Africa would not necessarily increase relative 
to other trading partners. AID does not state whether or not it 
expects these nations to continue to receive U.S. foreign 
assistance for the next three decades.

              Stability Not Guaranteed by Development Aid

    AID claims that foreign aid assists in preventing man-made 
and natural disasters and improves economies of third world 
nations. While it is impossible to know if foreign aid has 
prevented any disasters, it is clear that, despite billions in 
assistance, many nations are still racked by civil unrest and 
man-made crisis that foreign aid was supposed to avert. For 
example, from 1962 through 1993, the United States taxpayers 
provided to Rwanda $244.4 million in development and economic 
aid, with $34.9 million in foreign aid as recently as 1993. 
During that same period the United States provided to Somalia 
$855.6 million in development and economic aid, with $103.4 
million in aid as recently as 1993. Haiti has received foreign 
aid for 51 years, and before that, the U.S. occupied Haiti for 
19 years. Yet Haiti still awaits its first truly elected 
democratic government. Liberia, which continues to face severe 
civil unrest, has received more than $90 million in economic 
assistance since 1962.

            Aid Recipients Oppose U.S. at the United Nations

    The administration continues to operate programs in nations 
which routinely violate the rights of Americans overseas, which 
have no respect for free enterprise or democracy, and which 
have no qualms opposing the United States at the United 
Nations. The following is a list of nations that routinely vote 
against the United States in the United Nations, yet receive 
U.S. foreign aid. (Vote percent is the frequency that each 
nation votes with the United States.) Nations listed voted with 
the U.S. 25 percent of the time, or less.

----------------------------------------------------------------------------------------------------------------
                                                   Vote (in                                                     
                     Nation                        percent)     IMET/FMF       ESF           DA         Total   
----------------------------------------------------------------------------------------------------------------
Algeria........................................         23.1          $75            0            0          $75
Angola.........................................         22.0            0      $10,000            0      $10,000
Bangladesh.....................................         25.0          258            0      $61,232       61,490
Brunei.........................................         23.1            0            0            0            0
Burundi........................................         23.3          125            0        4,813        4,938
Cape Verde.....................................         24.0          100            0          113          213
Chad...........................................         22.4          100            0          616          716
China..........................................         10.6            0            0            0            0
Colombia.......................................         25.0          900            0        2,808        3,708
Comoros........................................         22.9           75            0          370          445
Congo..........................................         23.8          165            0        1,089        1,254
Cuba...........................................          6.3            0            0            0            0
DPR-Korea......................................          7.8            0            0            0            0
Egypt..........................................         22.9    1,300,000      815,000            0    2,116,000
Eritrea........................................      \1\ 0.0          250            0        9,624        9,874
Gabon..........................................         24.3            0            0           50           50
Ghana..........................................         20.5          250            0       45,294       45,544
Guinea-Bissau..................................         22.0          100            0        5,450        5,550
Haiti..........................................         24.5        7,400       90,270            0       97,670
India..........................................         15.7          364            0       70,433       70,797
Indonesia......................................         18.9          600            0       61,391       61,991
Iran...........................................         18.9            0            0            0            0
Iraq...........................................         12.2            0            0            0            0
Jordan.........................................         22.0       31,200        7,200        7,858       46,258
Laos...........................................         12.2            0            0            0            0
Lebanon........................................         17.5          475        4,000        4,000        8,475
Lesotho........................................         24.5           75            0          172          247
Libya..........................................         12.2            0            0            0            0
Madagascar.....................................         22.9          100            0       31,277       31,377
Malaysia.......................................         20.8          600            0            0          600
Mali...........................................         21.3          150            0       35,790       35,940
Mauritania.....................................         18.4            0            0          956          956
Mozambique.....................................         23.8          125            0       38,825       38,950
Myanmar........................................         18.4            0            0            0            0
Namibia........................................         23.1          250            0        9,935       10,185
Philippines....................................         17.0        1,400            0       70,372       71,772
Senegal........................................         23.4          600            0       29,103       29,703
Seychelles.....................................         20.0           60            0          180          240
Sudan..........................................         20.0            0            0            0            0
Syria..........................................         13.7            0            0            0            0
Thailand.......................................         17.4        1,600            0            0        1,600
Togo...........................................         19.1            0            0          265          265
Tunisia........................................         25.0          800            0            0          800
Uganda.........................................         18.6          200            0       45,666       45,866
UR Tanzania....................................         18.4          175            0       42,632       42,807
Vietnam........................................          6.5            0            0            0            0
Yemen..........................................         20.0            0            0        9,465        9,465
Zimbabwe.......................................         18.4          250            0       23,388       23,638
                                                             ---------------------------------------------------
      Total....................................  ...........    1,349,822      926,470      613,167   2,889,459 
----------------------------------------------------------------------------------------------------------------
\1\ Eritrea voted only twice, both times against the United States.                                             
                                                                                                                
Source: Voting Practices in the United Nations 1993, Submitted to Congress March 31, 1994.                      

            Security Assistance Has Been Cut Over the Years

    Supporters of increased foreign aid argue that aid has been 
cut over the last decade at the expense of development and 
humanitarian assistance. The facts, however, do not support 
this claim. The committee notes that during the past 10 years 
the pool of money available for foreign aid remained relatively 
constant, while the resources obligated for development aid 
increased significantly at the expense of military aid to 
United States allies and security partners. In 1984, the 
foreign aid budget allocated 43 percent to military assistance; 
only one quarter of all foreign assistance now goes to support 
the security needs of our allies. In that same period, U.S. 
bilateral and multilateral development and economic saw a 19 
percent increase, resulting in a 1995 budget that devoted 47 
percent to development assistance. Food aid, which is not 
included in these figures, has remained stable throughout that 
period at about 10 percent. The committee emphasizes that this 
bill fully funds the Administration's request for humanitarian 
disaster assistance. These diagrams show this shift in the 
focus of U.S. foreign aid.


                      Section-by-Section Analysis

Section 1. Short title

Section 2. Table of contents

Section 3. Congressional findings; statement of policy

Section 4. Definition

                TITLE I--DEFENSE AND SECURITY ASSISTANCE

               Chapter 1--Military and Related Assistance

            subchapter a--foreign military financing program

Section 101.--Authorization of appropriations

    Section 101 authorizes $3,185,000,000 for fiscal year 1996 
and $3,160,000,000 for fiscal year 1997 for Foreign Military 
Financing (FMF) Program. The administration request for fiscal 
year 1996 for FMF (grants and loans) is $3,331,910,000. The 
actual level of FMF funding for fiscal year 1995 is 
$3,199,196,000.

Section 102.--Loans for Greece and Turkey

    Section 102 authorizes for fiscal years 1996 and 1997 not 
more than $26,620,000 for the subsidy cost for FMF loans to 
Greece and $37,800,000 for Turkey. This authorization level 
would support loan programs of $224 million for Greece and $320 
million for Turkey. These levels maintain the traditional 7:10 
ratio. The loan program level of $320 million for Turkey funds 
the completion of the Peace Onyx II Program in fiscal year 
1996.
Section 103.--Loans for European countries emerging from Communist 
        domination

    Section 103 establishes a new program by authorizing not 
more than $25,000,000 for the subsidy cost for FMF loans to the 
Czech Republic, Hungary, Poland, Estonia, Latvia, Lithuania and 
Slovenia. Poland currently is not eligible for FMF loans, but 
authority is provided in the event its economy improves and it 
meets administration-determined criteria. The other nations 
each would be eligible for approximately a $100 million loan 
program at this level of funding.
    In order to receive assistance, the President must 
determine that the recipient of military loans has met the 
criteria established in the NATO Participation Act of 1994 (and 
any subsequent amendments thereto). Under those criteria, the 
President would have to determine that the country has made 
significant progress towards establishing, for example, shared 
values and interests, democratic governments, free market 
economies, civilian control of the military, adherence to the 
rule of law.
    The committee encourages the President to use this 
authority to develop a credit program for military sales to 
those countries which are likely to be future members of the 
North Atlantic Treaty Organization (NATO). Through a targeted 
use of resources to credit-worthy recipients the United States 
can facilitate the military improvements necessary for Central 
European countries to qualify as members of NATO. The President 
should use the authority in this section in coordination with 
funds authorized for the Warsaw Initiative and the Baltic 
Peacekeeping Battalion.

Section 104.--Terms of loans

    Section 104 updates and codifies in the Arms Export Control 
Act the FMF loan terms that have been carried annually in the 
Foreign Operations Appropriation bill.

Section 105.--Nonrepayment of grant assistance

    Section 105 codifies in the Arms Export Control Act a 
provision carried in annual appropriations bills which states 
that the President shall not require repayment of grant 
assistance provided under the Foreign Military Financing 
program under section 23 of the Arms Export Control Act.

                     subchapter b--other assistance

Section 111.--Defense drawdown special authorities

     Section 111 increases the special drawdown authorities of 
defense articles and services from defense stocks to assist 
foreign countries from $75 million to $100 million (for 
unforeseen emergencies) and from $75 million to $150 million 
(for national interests relating to international narcotics, 
international disaster assistance, and migration and refugee 
assistance).
    Current law grants the President the authority to draw down 
from existing stocks within the Department of Defense to assist 
in emergencies or when he determines it is in the national 
interest. This section would increase the special drawdown 
authorities of defense articles and services from defense 
stocks to assist foreign countries from $75,000,000 to 
$100,000,000 (for unforeseen emergencies) and from $75,000,000 
to $150,000,000 (for national interests relating to 
international narcotics, international disaster assistance, and 
migration and refugee assistance). These increases were 
requested by the administration as a part of its comprehensive 
foreign assistance rewrite last year. These increases will 
allow the President greater flexibility in responding to 
unforeseen emergencies and foreign policy objectives relating 
to combatting international narcotics, international disaster 
assistance, and migration and refugee assistance.

Section 112.--Stockpiles of defense articles

    Section 112 authorizes $50 million for additions to 
stockpiles of DOD articles in Korea ($40 million) and Thailand 
($10 million) and permit the President to establish additional 
stockpiles pursuant to congressional notification procedures. 
Stockpiles allow the U.S. military to pre-position the U.S. 
military equipment overseas in case of emergency. This section 
also would provide Israel with a permanent authorization for 
additions to DOD stockpiles in that country--the same authority 
that is already in law for NATO member states.
    Under current law, War Reserve Stockpiles can only be 
utilized by foreign countries with the authority of the United 
States. In all cases, title to, and control of, these 
stockpiles remain with the U.S. Government. Stockpiles have 
been established in countries pursuant to military criteria and 
needs. The additions to stockpiles come from existing U.S. 
stocks and may only be used in emergencies. Any transfers to 
the governments must be in accordance with the provisions of 
the security assistance law prevailing at the time.
Section 113.--Transfer of excess defense articles

    Section 113 reduces and streamlines the authorities of DOD 
to transfer excess defense articles by authorizing the 
President to transfer excess equipment or funds from the 
Department of Defense or Coast Guard to foreign nations, if: 
(1) articles are drawn from existing DOD stock; (2) DOD 
procurement funds are not expended; (3) U.S. military readiness 
is not adversely impacted; (4) the President determines that a 
grant is better than a sale; (5) the President considers the 
effects of the transfer on national technology and the 
industrial base; and (6) the transfer is consistent with the 
policy framework for the Eastern Mediterranean. Excess articles 
may be transferred without cost to the recipient country.
    No expenditures would be made for transportation, unless 
the President determines: (1) it is in the national interest to 
do so; (2) the recipient is a developing country receiving less 
than $10 million in U.S. assistance; (3) the total weight of 
the transfer is less than 25,000 pounds; and (4) such 
transportation is on a space available basis. These transfers 
are capped at $350 million annually, and for any transfer of 
more than $7 million, appropriate congressional committees must 
be notified. This section repeals section 31(d) of the Arms 
Export Control Act and sections 517 through 519 of the Foreign 
Assistance Act.
    This rewrite of the EDA authority is supported by the 
administration and reflects in large part their request in last 
year's comprehensive rewrite bill. It would rewrite current law 
with respect to the provision of excess defense articles in 
order to consolidate and revise existing authorities which are 
confusing and contradictory.
    This new consolidated authority requires a justification 
for any recipient of EDA in the annual Congressional 
Presentation Documents submitted to Congress or separately 
during the fiscal year. The new provision retains current 
limitations that: prohibit the expenditure of DOD funds in 
connection with transfers; require articles be drawn from 
existing DOD stocks; require that the transfer of such articles 
will not have an adverse impact on military readiness of the 
United States; and require the priority of delivery of EDA be 
given to NATO and major non-NATO States on the southern and 
southeastern flank of NATO, as well as those countries eligible 
under the NATO Participation Act of 1994.
    The committee is aware that the State and Defense 
Departments have in recent years used grant EDA transfers as a 
supplement to the declining security assistance budget. For 
some countries, EDA has represented a significant percentage of 
their overall security assistance. The committee, therefore, 
expects the administration to provide further detail in its 
annual presentation documents about which countries it intends 
to provide EDA during the upcoming fiscal year. The committee 
expects these countries to include those important to United 
States security interests such as the Philippines. The 
committee does not accept the explanation from the 
administration that it cannot provide Congress an illustrative 
list of equipment which will become excess during a fiscal 
year.

        Chapter 2--International Military Education and Training

Section 121.--Authorization of appropriations

    Section 121 authorizes $27,000,000 for International 
Military Education and Training (``IMET'') in fiscal years 1996 
and 1997. The committee recognizes that IMET is a high priority 
program for the administration. However, the committee was 
forced to make deep reductions in bilateral and multilateral 
assistance programs and IMET could not be exempted from these 
cuts. The fiscal year 1995 level is $26.35 million. The fiscal 
year 1996 request is $39.781 million, a $13 million increase 
over fiscal year 1995 levels.
    IMET is provided on a grant basis to students from allied 
and friendly nations. Since 1950, IMET and its predecessor 
programs have trained more than 550,000 foreign officers and 
enlisted personnel in areas ranging from professional military 
education to basic technical skills. The purpose of the IMET 
program is to expose foreign students to the U.S. professional 
military establishment and the American way of life, including 
the U.S. regard for democratic values, respect for individual 
and human rights and belief in the rule of law.

Section 122.--Additional requirements relating to international 
        military education and training

    Section 122 amends section 541 of the Foreign Assistance 
Act of 1961 so that nongovernment organizations (NGOs) may be 
eligible for the expanded IMET program. This change is 
consistent with language which has been carried in the annual 
foreign operations appropriations bill in recent years.
    This section also provides a new authority allowing foreign 
military and civilian defense personnel to attend U.S. test 
pilot flight schools if such attendance is agreed to on a 
reciprocal basis with a foreign country and is accomplished 
without charge to the IMET program. This new authority will 
allow for the reciprocal training of American, British and 
French test pilots. This provision was included at the request 
of the administration.
                  Chapter 3--Antiterrorism Assistance

Section 131.--Authorization of Appropriations

    Section 131 provides funding for Antiterrorism Assistance 
(ATA), from $15,000,000 in fiscal year 1996 and $15,000,000 in 
fiscal year 1997. This programs provides training and equipment 
to foreign governments which are committed to stopping 
international terrorism. A major focus of this program has been 
in Egypt, Turkey and Greece--each of which is a strong ally of 
the United States and which stands on the front lines against 
international terrorists.
    The Committee believes that funding for antiterrorism 
programs is one of the very few places in this bill which 
should not be subject to spending cuts. These programs directly 
affect the safety and security of every American.

Section 132.--Antiterrorism Training Assistance

    Section 132 amends section 573 of the Foreign Assistance 
Act of 1961 which restricts Antiterrorism Assistance (ATA) by 
eliminating general limitations that apply to other foreign 
assistance programs. It would also remove restrictions on the 
kinds of training services that may be conducted outside the 
United States and on the ability of the United States to give 
advice outside the United States to other eligible countries 
regarding antiterrorism matters. This section prohibits the use 
of ATA funds for the procurement of weapons and ammunition, 
except small arms and ammunition, listed under categories I and 
II of the United States Munitions List, if the President 
notifies Congress. This section also limits the value of all 
equipment and commodities provided under this chapter to 25 
percent of funds made available in a fiscal year and repeals 
the requirement for an annual report.
    Section 132 allows assistance through the ATA program to be 
provided outside the United States, mirroring other current law 
enforcement training authorities. This modification will make 
the program more efficient as well as more cost effective. 
Section 132 also removes the specific list of material 
assistance that may be provided in favor of a restriction on 
the provision of arms and ammunition. Such arms and ammunition 
may only be provided if they are directly and integrally 
related to training being provided and if the Congress is 
notified 15 days in advance in accordance with regular 
reprogramming procedures. This change also makes the program 
consistent with other U.S.-supported law enforcement training 
programs.

                Chapter 4--Narcotics Control Assistance

Section 141.--Authorization of Appropriations

    Section 141 authorizes $105,000,000 in both fiscal year 
1996 and 1997 to carry out chapter 8 of the Foreign Assistance 
Act, relating to International Narcotics Control.
    The Committee recognizes and acknowledges the importance of 
the Andean nations and Mexico to United States international 
narcotics control efforts. A continued program focus on 
cooperative initiatives with these nations is essential to 
implement successfully the objectives of disrupting and, 
ultimately, eliminating the illegal drug trade.

                    Caribbean antinarcotics efforts

    The committee notes that continued counterdrug efforts are 
important in other parts of the Western Hemisphere, notably the 
Caribbean, as the traffickers are pressured in areas where they 
concentrate their operations. The committee recognizes that 
until the ``source country'' strategy shows significant 
results, many Caribbean nations will continue to be an 
important line of defense against the cocaine cartels. The 
United States should continue to signal Latin American drug 
traffickers that the United States is not relaxing its 
attention on the Caribbean transhipment points.
    Historically, the Eastern Caribbean has been a significant 
trafficking route for marijuana and cocaine entering the United 
States. Ten years ago, the primary entry point into the United 
States for illegal drugs was the Caribbean. Cooperative efforts 
with our Caribbean neighbors has disrupted this flow. Yet the 
Eastern Caribbean remains a gateway to U.S. ports of entry in 
Puerto Rico and the U.S. Virgin Islands, with more than a 
quarter of airborne cocaine smuggling attempts into the United 
States in 1994 coming via this route. The region is also a 
transit route to Western Europe. Between South American and the 
United States a virtual unbroken chain of inadequately 
patrolled waters provides opportunities for traffickers and 
frustrates U.S. enforcement efforts on the high seas.
    The committee notes that drug trafficking remains an 
important issue for the United States in the Caribbean. There 
are reports of increased cocaine and heroin trafficking and 
drug use in the Eastern Caribbean. Trafficker activities 
constitute a threat to the region's political stability, as 
traffickers make efforts to penetrate the governments or 
political party systems on some of the islands. The committee 
notes an increasing number of disturbing reports from the 
region: In the first week of May 1995, the younger brother of 
Prime Minister Bird of Antigua was arrested in connection with 
an attempt to smuggle a multi-kilo load of cocaine; allegations 
have been raised in St. Vincent about traffickers being 
protected by high level officials; and a senior police official 
and the son of a deputy prime minister were killed in separate 
drug-related incidents in St. Kitts. The same deputy prime 
minister had to resign after his other sons were arrested on 
drug and weapons charges.
    The committee recognizes that the U.S. Government has taken 
steps to mobilize local governments against the drug threat 
through the expansion of legal and law enforcement ties. But 
many regional governments and political parties are vulnerable 
to corruption, especially trafficker influence. Many of these 
small island states are ill equipped to face the enormous 
financial and organizational capacity of the drug cartels; and 
trafficker money can provide a high payoff in elections when 
only a few votes need be swayed to gain influence over a 
country.
    The committee is aware that a number of Caribbean 
governments have expressed growing concern about trafficking, 
cultivation, and drug use, and have expressed their 
determination to fight the traffickers. All but St. Lucia have 
acceded to the 1988 U.N. Convention on Narcotics. They welcome 
outside assistance, and with few exceptions, cooperation with 
U.S. authorities and agencies is excellent.
    At a time of reduced budgets, the committee recognizes that 
more has to be done with fewer resources. The committee notes 
that in the case of the Caribbean a small amount of support can 
achieve significant results, and that other sources of 
assistance should be pursued in order to maximize U.S. support 
to these small nations. The committee urges that any review of 
U.S. counterdrug programs take into account that Caribbean 
nations have demonstrated the political will and commitment to 
implement a counterdrug strategy, and the impact that past 
budget cuts have had on Caribbean programs over the past 3 
years.
    In contacts with the committee, both Caribbean and United 
States officials of these Caribbean states have emphasized the 
importance of law enforcement and judicial reform, as well as 
demand reduction. There has been general support for U.S. 
military counterdrug activities in the region.
    In the case of the Eastern Caribbean, programs to 
strengthen regional counterdrug links and to encourage good 
governance through institution building should be continued, as 
should enforcement programs that focus on basic police needs, 
strengthened evidence collection and case preparation, and 
judicial programs to improve court efficiency, raise conviction 
rates and promote tough sentencing. The committee recognizes 
that U.S. funds are the principal source of antinarcotics funds 
for these small police forces and that the United States has 
helped improve local enforcement and training levels.
    The committee is aware that the greatest potential impact 
would be from increased military assistance funds, with FMF 
funds having been reduced at the same time as U.K. and Canadian 
funding. The concern is that these reductions will lead to a 
drop in existing enforcement capabilities. The committee 
encourages the administration to explore, with the U.K. and 
Canada, the requirements to maintain the islands' Coast Guard 
capabilities, subject to the successful completion of ``ship 
rider'' agreements (Maritime Law Enforcement Agreements).
    The committee recognizes that the Bahamas sits astride the 
shortest route between Colombia and the United States (40 miles 
at the nearest point) and that the Government of the 
Commonwealth of the Bahamas (GCOB) cooperates fully with the 
United States in counterdrug efforts. Nevertheless, due to the 
nation's size and limited financial resources, The Bahamas 
remains an ideal target for trafficker exploitation. Due to the 
short distance between the United States and the Bahamas, and 
the extensive maritime and air traffic between the countries, 
it is virtually impossible to stop cocaine from entering the 
United States once it has arrived in the Bahamas.
    The committee encourages continued support for programs in 
this Caribbean nation, including: reviewing the question of 
maintaining the Narcotics Affairs Section office in Nassau or 
in implementing some other mechanism to administer and 
coordinate U.S. counterdrug programs with the Bahamas; support 
for the Bahamian judicial system, which has been plagued by 
inefficiency, but where progress has been made in keeping 
traffickers in jail; support for Bahamian police, including 
training to meet the smuggling threat and high tech equipment 
needed to fight sophisticated traffickers; and, most 
significantly, continued support for Operation Bahamas Turks 
and Caicos (OPBAT), which, in the committee's view, has been a 
successful operation to seize drugs moving through the Bahamas 
and to arrest drug traffickers.
    Jamaica is an important ally in United States efforts to 
fight illicit narcotics production and trafficking. Jamaica is 
a producer of marijuana and a major transit country for 
cocaine. However, the Committee recognizes that its government 
actively cooperates with the United States, and commends the 
government for its recent enactment of an asset forfeiture law, 
and its continued cooperation in extraditing drug traffickers 
and eradicating marijuana. The committee supports the United 
States objective to work with Jamaica to improve its 
counterdrug laws and institutions. The Committee encourages 
continued support for judicial reform initiatives to speed the 
prosecution of drug cases in Jamaican courts, programs to 
provide a system to curb passport fraud and illegal entry into 
the United States, demand reduction and eradication.
    The Dominican Republic has expressed a commitment to fight 
the illegal drug trade, but has limited resources to address 
the drug problem. The committee commends the Government of the 
Dominican Republic for signing, on March 24, a bilateral 
maritime counterdrug agreement. The committee encourages the 
administration to continue working with the GODR to pursue 
avenues of support for maintaining that nation's counterdrug 
capabilities, especially those vessels, aircraft, vehicles, and 
equipment necessary for coastal patrol work. The committee also 
encourages the administration to give consideration to the 
GODR's formal request for a decommissioned Coast Guard cutter.
    Trinidad and Tobago has become increasingly important as a 
drug transhipment point, and local drug gang activities have 
become more disruptive to this nation. The committee commends 
Trinidad and Tobago for ratifying the Vienna Convention, and 
for its commitment to better cooperation between United States 
and Trinidadian agencies. The committee encourages the 
administration to consider continuing programs to upgrade the 
nation's administration of justice, including initiatives to 
address problems in both the court and prison systems; to 
assist the Trinidadians in developing a witness protection 
program for key witnesses in drug cases; and to support the 
Organized Crime and Narcotics Unit, Trinidad's primary 
counterdrug force, which needs basic equipment.
                   Chapter 5--Peacekeeping Operations

Section 151.--Peacekeeping operations

    Section 151 authorizes $40,000,000 for fiscal year 1996 and 
$35,000,000 for fiscal year 1997 to carry out chapter 6 of the 
Foreign Assistance Act, relating to Peacekeeping Operations 
(PKO) which are not mandated by the United Nations, are not 
funded by United Nations assessments or which are carried out 
by other multilateral organizations. The administration had 
requested $100,000,000 for fiscal year 1996.
    The committee is concerned by the dramatic increase in 
administration requests for this account. In fiscal year 1993, 
Congress provided $27,000,000 for voluntary PKO. Only 2 years 
later, Congress approved $75,000,000 for this same account and 
the administration has requested $100,000,000 next year. The 
committee also is concerned that much of the money in this 
account was provided for operations other than those justified 
to Congress at the beginning of the fiscal year. The largest 
portion of this account went to fund the Haiti operation, an 
operation which lacked bipartisan support in Congress.
    The committee notes that the United States has provided 
more than any other nation for assessed United Nations 
peacekeeping operations all over the world in the last few 
years. Yet, while the United States is expected to pay a 
greater and greater amount for United Nations actions, the cost 
of these U.N. and other multilateral voluntary peacekeeping 
operations continues to grow as well.
    The U.S. share for U.N. assessed peacekeeping operations is 
as follows: Fiscal year 1993--$460,315,000; fiscal year 1994--
$1,071,607,000; and fiscal year 1995--$1,205,304,000.
    The committee authorized level for voluntary PKO will allow 
the administration to meet its commitment to the important 
Multilateral Force of Observers (MFO) in the Sinai as well as 
providing funding for Sanctions Assistance Monitors (SAMs) in 
the former Yugoslavia.

                      Chapter 6--Other Provisions

Section 161.--Standardization of congressional review procedures for 
        arms transfers

    Section 161 eliminates anomalies in current law with 
respect to congressional notifications procedures for arms 
transfers by standardizing those procedures for third country 
transfers, direct commercial sales, government-to-government 
sales, commercial manufacturing agreements and government-to-
government leases. This section was included at the request of 
the administration.
    This section provides that when dealing with NATO, 
Australia, New Zealand and Japan, all congressional 
notification periods are 15 days, regardless of the type of 
transfer. For all other countries, current law is retained, 
requiring a 30 day notification period.
    The provision also requires the statutory period of time 
for enactment of a joint resolution of disapproval of a 
transfer to parallel the period of time stipulated for review 
of that transfer. In other words, transfers that require 15 day 
notifications would have to be acted upon by the Congress in 
that period of time and transfers that require 30 day 
notification periods would have to be acted upon by the 
Congress in that period of time.
    This section also standardizes the requirement for all 
types of sales for any Presidential waiver of congressional 
notification. The standard is not changed; it is simply applied 
in all cases regardless of the type of transfer.

Section 162.--Standardization of third country transfers of defense 
        articles

    Section 162 standardizes the rules governing the retransfer 
of certain U.S. origin military equipment for both direct 
commercial sales and foreign military sales. This section was 
included at the request of the administration.
    It establishes an equivalent practice for government-to-
government Foreign Military Financing (FMS) sales. By 
standardizing the rules governing third party transfers of FMS 
equipment with those of commercial sales, the bill provides 
equitable treatment for equipment previously bought through FMS 
or direct commercial sales.
    While requests to approve retransfers of the type permitted 
under this proposal are routinely granted under the current 
system, the requirement to seek U.S. Government approval is 
administratively burdensome for both the foreign parties and 
the U.S. Government. There is no basis for distinguishing in 
this area between components transferred on an FMS basis and 
those transferred under direct commercial sales.
Section 163.--Increased standardization, rationalization, and 
        interoperability of assistance and sales programs

    Section 163 amends section 515(a) of the Foreign Assistance 
Act of 1961. This section was included at the request of the 
administration. By eliminating the country-specific references 
in current law, this section would authorize the President to 
permit members of the Armed Forces assigned to foreign 
countries to promote rationalization, standardization, 
interoperability and other defense cooperation measures with 
other nations as U.S. assistance and sales programs are 
implemented.
    The committee believes that in the post-cold-war 
environment, it is becoming increasingly likely that American 
forces will fight alongside allies other than those from NATO, 
Japan, Australia, or New Zealand. However, under current law 
these are the only countries with which the United States may 
promote rationalization, standardization, and interoperability. 
Especially in the Middle East, this limitation is inconsistent 
with the U.S. strategic goal of achieving greater 
interoperability with our allies in the region.

Section 164.--Repeal of price and availability reporting requirement 
        relating to proposed sale of defense articles and services

    Section 164 repeals the requirement for a separate price 
and availability report on the sales of defense articles and 
services. Sales offers to foreign countries as well as actual 
sales are reported in a much broader scope (above the $1 
million threshold) on a quarterly basis as required by section 
36(a) of the Arms Export Control Act. The costs of redundant 
reporting would be reduced to permit better utilization of 
resources in order to meet other statutory and congressionally 
mandated reporting requirements. This section was included at 
the request of the administration.

Section 165.--Definition of significant military equipment

    Section 165 defines significant military equipment for 
purposes of the Arms Export Control Act. The definition is 
drawn from the International Traffic in Arms Regulations 
(ITAR).
    This amendment simply places in statute a definition of 
Significant Military Equipment which is used throughout the 
Foreign Assistance Act and the Arms Export Control Act. The 
definition is based on that in the International Traffic in 
Arms Regulations.

Section 166.--Designation of major non-NATO allies

    Section 166 designates Australia, Egypt, Israel, Japan, 
Korea, and New Zealand as major non-NATO allies for purposes 
under the Foreign Assistance Act and Arms Export Control Act 
and requires the President to notify the Congress 30 days 
before making additional designations or terminating 
designations under this authority.

Section 167.--Competitive pricing for sales of defense articles and 
        services

    Section 167 ensures that government-to-government arms 
sales made to countries utilizing grant FMF shall be priced on 
the same costing basis as is applicable to procurement of like 
items purchased by the Department of Defense. This section 
reduces prices for grant aid recipients, therefore allowing 
them to purchase additional goods and services with existing 
resources. These savings could be applied to the purchase of 
additional defense items in the United States, thereby 
assisting U.S. defense industry and creating American jobs.
Section 168.--Depleted uranium ammunition

    Section 168 places within the Foreign Assistance Act of 
1961 provisions of past foreign operations appropriations bills 
that would restrict the sale or transfer of depleted uranium 
shells to foreign countries, except for NATO member states, 
major non-NATO states and Taiwan. This section also contains a 
national security interest waiver for the President.

Section 169.--Police training for certain foreign countries

    Section 169(a) authorizes the President to provide 
training, advice, financial support, and equipment for police, 
prisons, or other law enforcement of a foreign government, 
unless a government is not democratically-elected, or the 
police or law enforcement forces engage in a consistent pattern 
of gross human rights abuses or those forces do not maintain an 
effective policy against the trafficking or production of 
illegal drugs by police force personnel. Section 169(b) repeals 
section 660 of the Foreign Assistance Act of 1961.
    The committee notes that the section 660 prohibition on 
police training largely reflected congressional concerns about 
the human rights record of a number of nations, especially 
those in Latin America that have used police forces, often in 
the name of ``fighting communism'', as instruments of 
repression against legitimate opposition individuals or 
movements, as well as those who were allied with the Soviet 
Union, People's Republic of China, Castro's Cuba, or other so-
called socialist states of Europe and actually advocated the 
violent overthrow of existing state institutions as part of an 
``international revolution''.
    Since the enactment of section 660, and the end of the cold 
war, there has been a dramatic drop in revolutionary guerrilla 
movements and an increase in the number of governments which 
respect human rights and the need to strengthen democratic 
civilian institutions, and encouraging governments to respect 
human rights and develop effective civilian institutions also 
have become a central element of U.S. foreign policy. To this 
end, the United States has implemented a number of programs to 
strengthen the entire range of judicial and law enforcement 
activities, from the initial investigatory work to the 
adjudication process. Significant strides have been made by 
many nations in developing civilian law enforcement forces.
    In the case of the Western Hemisphere, the Committee views 
section 169 as an important step for the United States to 
assist nations in dealing with governance issues and provide 
support in implementing the Summit of the Americas ``Plan of 
Action'' provisions regarding the promotion and protection of 
human rights.
    The committee also notes that the executive branch favors 
revising the existing prohibitions on police training. In its 
``Peace, Prosperity, and Democracy Act of 1994'', the 
administration proposed authorizing assistance for law 
enforcement similar to that contained in section 172. Also, in 
testimony before Congress, executive branch officials, 
including the Assistant Secretary of State for Human Rights and 
Humanitarian Affairs, have urged Congress to modify the manner 
in which assistance to law enforcement must be approved, and in 
an answer to a February 14, 1995, ``question for the record'', 
the Secretary of State told the committee that ``The [State] 
Department continues to believe that it would be desirable to 
modify section 660 of the Foreign Assistance Act to permit 
police training and other law enforcement assistance when it is 
in the interest of the United State to do so.''

Section 170.--Utilization of defense articles and services

    Section 170 amends section 502 of the Foreign Assistance 
Act of 1961 to allow the President greater authority under 
which to sell or furnish defense articles and defense services, 
including for law enforcement purposes, to friendly foreign 
nations.
    Section 502 of the Foreign Assistance Act of 1961 (FAA), as 
amended, authorizes the provision of defense articles and 
defense services to friendly countries on a grant basis. 
Currently, section 502 states, in part, that defense articles 
and defense services ``shall be furnished solely for internal 
security, for legitimate self-defense, to permit the recipient 
country to participate in regional or collective arrangements 
or measures consistent with the Charter of the United Nations, 
or otherwise to permit the recipient country to participate in 
collective measures requested by the United Nations for the 
purpose of maintaining or restoring international peace and 
security, or for the purpose of assisting foreign military 
forces in less developed friendly countries * * * to construct 
public works and to engage in other activities helpful to the 
economic and social development of those less developed 
countries.''
    The committee notes that the term ``internal security'' in 
section 502 has been interpreted by the executive branch to 
refer to counter-insurgency, but not to law enforcement or 
police operations. At a time when U.S. policy strongly 
advocates and supports the creation, development, and 
sustainment of law enforcement forces that respond to 
democratically-elected civilian leadership, the Committee 
believes that this narrow interpretation of ``internal 
security'' in section 502 limits the United States ability to 
support the civilian-led law enforcement of friendly nations.
    With the global threats of international organized crime, 
terrorism, and drug trafficking, amongst others, being defined 
as areas requiring a law enforcement response, the committee 
strongly supports the provision of those defense articles and 
services which have a law enforcement function or role.
    It is the committee's view that in the post-cold war era 
the new opportunities and priorities of U.S. foreign policy, 
including support for expanded law enforcement in foreign 
nations, combined with shrinking budgetary resources, make it 
imperative that U.S. military assistance policy on the 
utilization of U.S. defense articles and services be amended to 
remove the cold war interpretations and allow for greater 
flexibility in supporting legitimate law enforcement operations 
in foreign nations.
    Many defense articles and services provided under the 
Foreign Assistance Act can serve law enforcement purposes, yet 
the interpretation of section 502 denies these exact same 
defense articles and services for law enforcement. This can 
result in duplication in our foreign assistance programs that 
neither is an efficient use of resources nor serves U.S. 
national interests.
Section 171.-- Reports on arms sales

    Section 171 amends section 36 of the Arms Export Control 
Act (AECA) pertaining to information required in notifications 
to the Congress on prospective international defense exports. 
It specifically mandates that congressional notifications on 
proposed defense exports include additional information on: (1) 
the foreign availability of major defense equipment, articles 
or services similar to those included in the notification to 
Congress; and (2) the other countries, if any, to whom the 
United States has previously offered defense equipment, 
articles and services comparable to that included in the 
notification to the Congress. This new information would 
supplement the information that is already required in all 
government-to-government and commercial arms sales 
notifications to the Congress. The committee believes this 
additional information will be helpful to the Congress as it 
deliberates on accepting or disapproving proposed defense 
exports under section 36 of the AECA notified to the Congress.

Section 172.--Elimination of the requirement for Recoupment of 
        nonrecurring cost charges

    Section 172 amends section 21(e) of the Arms Export Control 
Act. Section 172 eliminates the statutory requirement that a 
proportional cost of the nonrecurring research and development 
(R&D;) investment on major defense equipment be recovered on 
export sales. U.S. defense manufacturers have downsized and 
merged in response to declining U.S. defense procurement 
following the end of the cold war. Remaining companies will not 
survive on the basis of current and projected U.S. defense 
procurement levels: only 100 aircraft by DOD, for example, are 
authorized for procurement for all of fiscal year 1995. 
Increasingly, preservation of the U.S. defense industry will 
rely on our ability to export to friends and allies.
    The United State has long dominated the international 
defense trade market. However, with national defense 
procurement budgets in most arms-producing countries declining, 
more defense manufacturers are turning to exports to maintain 
production lines. U.S. defense items once dominated the market 
because of their superior quality and the important connection 
with the US. However, the end of the cold war undercuts the 
value of an investment in an American connection. At the same 
time, the end of the Soviet military threat has weakened the 
need of many nations to have the best equipment they can buy. A 
low threat from a weakened Russian army means that ``good 
enough'' rather than ``the best'' is acceptable in arms 
purchasing countries which are also looking for ways to cut 
defense spending.
    The result is a far more competitive environment for U.S. 
defense exports. While our manufacturers still offer the best 
product available, they are expected to compete on an equal 
basis with others who are offering inferior products but who, 
working hand in hand with generous support or subsidies from 
their governments, provide offsets, financing and/or lease 
arrangements.
    Strengthening US arms manufacturers' ability to compete 
does not mean encouraging arms exports. Nothing in this bill 
changes the existing requirements about whom the United State 
can or cannot sell. It is not necessary to change U.S. policies 
used to determine whether a prospective arms sale should be 
licensed. But where a sale to a friend or ally is desirable, 
there is much we could do to improve prospects that the 
American bidder has a fair chance to win the contract.
    The committee has examined the system of recoupment of non-
recurring costs from government-to-government defense sales and 
has determined that on balance it is more important to preserve 
U.S. defense industry competitiveness abroad than to recover a 
portion of weapons system development costs. In the current 
highly price-sensitive international market, these non-
recurring cost surcharges can make the difference between 
winning and losing a foreign contract. Over the long run, the 
United State stands to save more from preserving a minimum 
number of currently active defense production lines than it 
would from recovering a small portion of development costs 
expended years ago.

Section 173.--Reduction in valuation of defense articles not intended 
        for replacement

    Section 173 amends section 21(a) of the Arms Export Control 
Act, relating to sales of defense articles from DOD stocks. The 
committee understands that frequently foreign buyers of 
military equipment will purchase used items with a contract to 
upgrade. These sales, like sales of new equipment, are in the 
U.S. national interest. The committee, however, does not expect 
the Defense Department to actively pursue sales under this 
section. Rather, the committee believes this section 173 should 
only be used in those rare instances in which a proposed sale 
would otherwise not be made. Section 173(c) allows this section 
to be used only subject to the availability of appropriations 
and, therefore, should not represent new direct spending.
    Section 173 requires that three important criteria be met 
before the President may consider reducing the price for the 
sale of a defense article. First, the sale must facilitate the 
sale of a similar or related defense article. Second, the sale 
must support the national defense industrial base. Finally, the 
sale must serve the national security interests of the United 
States.
    In addition, the committee urges the administration to keep 
the administrative fees it charges for government-to-government 
(FMS) sales as low as possible in order to maximize the 
competitiveness of U.S. defense products abroad. Maintenance of 
U.S. defense exports is a matter both of U.S. economic and 
national security interest.
Section 174.--Elimination of Special Defense Acquisition Fund Annual 
        Report

    Section 174 deals with issues related to the Special 
Defense Acquisition Fund (SDAF). Section 174 repeals an annual 
reporting requirement which is no longer needed or useful. 
Section 53(a) of the Arms Export Control Act requires a report 
on specific SDAF issues related to the SDAF fund for which 
monies are no longer being appropriated. The report is 
therefore obsolete and this section eliminates the report.

                 TITLE II--TRADE AND EXPORT DEVELOPMENT

Section 201.--Trade and Development Agency

    Section 201 gives the Trade and Development Agency added 
flexibility to carry out its projects by eliminating project 
dissemination requirements and transferring the responsibility 
of submitting an annual report to the Director of the TDA 
rather than the President. It would authorize $67,000,000 in 
appropriations for fiscal year 1996 and $75,000,000 for fiscal 
year 1997.
    The Committee commends the Trade and Development Agency 
(TDA) in its efforts to extend its cost-sharing efforts with 
the private sector to implement a new ``success fee'' program. 
Under this program, a company undertaking a feasibility study 
that anticipates a significant return on its investment must 
reimburse the TDA for the cost of such feasibility study. The 
Committee supports the efforts of TDA to reduce overhead 
operating costs and increase the impact of the taxpayer dollars 
in promoting U.S. business abroad.

Section 202.--Countries in Transition to a Free Market Economy

    Many of the nations of Central and Eastern Europe have made 
important, rapid progress in transition from centrally-planned 
economies to free market economies. The key to this rapid 
integration has been their development of an effective trading 
relationship with the European Union and the United States. To 
encourage the rapid assimilation of nations such as Poland, 
Hungary, the Czech Republic, Slovakia, Latvia, Lithuania, 
Estonia, Bulgaria and Romania the United States extended trade 
benefits under the generalized system of preferences (GSP) 
easing their transition into the world's highly competitive 
trading system.
    Section 202 expresses the sense of the Congress that the 
United States should continue to accord GSP treatment to all 
countries of central and eastern Europe in transition to a free 
market economy, provided that these countries are abiding by 
all applicable statutory requirements. Such continued treatment 
will ensure the consolidation of a vibrant free market in what 
was only a few short years ago a communist wasteland.
    TITLE III--PRIVATE SECTOR, ECONOMIC, AND DEVELOPMENT ASSISTANCE

               Chapter 1--Private Sector Enterprise Funds

Section 301.--Support for private sector enterprise funds

    Section 301 authorizes $64,000,000 in fiscal year 1996, to 
remain available until expended, for the President to create 
enterprise funds for promoting private sector development in 
eligible countries. The President is authorized to designate a 
private, nonprofit organization to receive funds for countries 
eligible for assistance under part I of the Foreign Assistance 
Act. The authorities in this section would not apply to 
enterprise funds already authorized for the independent states 
of the former Soviet Union. This section would also direct the 
President to create a Trans-Caucus Enterprise Fund and would 
authorize $12,000,000 to remain available for such fund.
    In 1989, as the collapse of communism engulfed Central and 
Eastern Europe and the former Soviet Union, the United States 
recognized that it had to quickly demonstrate to the people of 
these countries the value of political and economic reform. 
Recognizing that traditional AID programs were not well suited 
to address this unprecedented challenge, the enterprise funds--
government funded and privately managed--were established.
    Today, 5 years after their creation, the enterprise funds 
have proven themselves to be highly effective vehicles of U.S. 
foreign assistance. Their impact has been significant as 
exemplified by the Polish Fund's approval of more than $111 
million in small loans to more than 4,000 Polish entrepreneurs 
with a collection rate of 98 percent, the Hungarian Fund's 
participation in the privatization of the food processing, 
packaging, and printing, and food products industries, and the 
more than $100 million in private foreign capital that the 
enterprise funds have attracted for investment. The enterprise 
funds' unique characteristics of leveraging the best U.S. 
private sector talent for foreign policy purposes and the 
potential for the United States to receive back funds initially 
appropriated for their creation underscores the usefulness of 
the Enterprise Funds.
    Perhaps the best illustration of the high quality and 
potential of the enterprise funds is the persons who serve on 
their Board of Directors on a pro bono publico basis. Among 
this group are the leading American men and women in banking, 
investment banking, venture capital, and Fortune 500 
corporations. These individuals provide invaluable expertise 
and management oversight to ensure that both the public policy 
and commercial purposes of the enterprise funds are 
accomplished in a way that maximizes the impact of each 
Enterprise Fund. For all these reasons, the committee believes 
that the Congress should take strong and clear action to 
continue to support and expand the enterprise fund concept.
    The committee expects AID to honor its funding commitments 
to the existing enterprise funds at such funding levels as were 
originally announced by the administration, agreed to by the 
Congress through the congressional notification process, and 
referenced in grant agreements between AID and each of the 
Enterprise Funds. To this end, the committee further directs 
that any reductions in AID funding for its ``Eastern Europe and 
the Baltic States'' and ``NIS'' accounts neither be applied nor 
have any effect on AID's funding of the Enterprise funds.
    The committee is pleased with the Hungarian-American 
Enterprise Fund's performance and finds that the Hungarian Fund 
continues to play an important role in the development of 
Hungary's private sector. The committee also supports the 
Hungarian Funds' efforts to raise private capital as a way to 
achieve ultimately self-sustainability. The committee notes, 
however, that the Hungarian Fund is in need of an additional 
$30 million of AID funding beyond its original $70 million in 
order to continue its programs and to attract private capital. 
Accordingly, the committee directs AID to provide the Hungarian 
Fund an additional $30 million in fiscal 1996, of which $20 
million is to be used for its core investment programs and $10 
million is to be used for its small year program.
            Transcaucasus enterprise fund
    Section 301 also establishes a Transcaucasus Enterprise 
Fund and makes available to it $12 million in fiscal year 1996. 
The committee emphasizes the importance of establishing 
enterprise funds to augment and solidify the private sector in 
the Transcaucasus region of Armenia, Georgia, and Azerbaijan. 
Development of the region's infrastructure would benefit from 
this fund, including the building of port, rail, and 
communications facilities. Given the bureaucratic inertia that 
often hinders the establishment of such funds, it makes sense 
for the Congress to grant the authority and funding now for the 
creation of a Transcaucasus Enterprise Fund.
    The Committee notes that enterprise funds already exist for 
other countries of Eastern Europe and the former Soviet Union--
only the countries of the Transcaucasus region do not benefit 
from such funds. The Russian Enterprise Fund was established 
with planned funding of $340 million; a Central Asia Fund was 
set to assist five Central Asian Republics with planned funding 
of $150 million; a Western NIS Fund was established with a 
planned funding of $150 million for Ukraine, Belarus, and 
Moldova. Further, enterprise funds exist for the Baltics, 
Bulgaria, Albania, Slovenia, and the Czech and Slovak 
Republics. A similar enterprise fund in the Transcaucasus would 
create real incentives for privatization and would foster 
regional cooperation, vital to the future of the Transcaucasus.

Section 302.--Micro- and small-enterprise development credit program

    Section 302 authorizes the President to increase the 
availability of credit to micro- and small-enterprises lacking 
full access to credit, including through: (1) loans and 
guarantees to credit institutions, (2) training programs for 
lenders, and (3) training programs for micro- and small-
entrepreneurs.
      Chapter 2--Development Assistance Fund and Other Authorities

Section 311.--Development assistance fund

    Section 311 authorizes a single appropriation of 
$2,475,000,000 in fiscal year 1996 and $2,324,000,000 in fiscal 
year 1997 to fund: (1) Section 104 of the Foreign Assistance 
Act, relating to population and health; section 105 of the 
Foreign Assistance Act, relating to education and resources 
development; section 106 of the Foreign Assistance Act, 
relating to energy, private voluntary organizations, and 
selected development activities; section 107 of the Foreign 
Assistance Act, relating to technology; and section 108 of the 
Foreign Assistance Act, relating to private sector revolving 
funds; (2) Section 497 of the Foreign Assistance Act, relating 
to the Development Fund for Africa; (3) Chapter 11 of part I of 
the Foreign Assistance Act, the FREEDOM Support Act; (4) The 
Support for Eastern European Democracy or SEED; and (5) title 
III of chapter 2 of part I of the Foreign Assistance Act, 
relating to housing and other guarantee programs. Funds in this 
section may also be used in support of Inter-American 
Foundation, African Development Foundation, American Schools 
and Hospitals Abroad and International Fund for Ireland.
    The Administration has repeatedly requested Congress to 
give it flexibility to carry out its programs. Since the budget 
reductions severely limit the amount of money that Congress 
will approve for foreign aid, the Committee has decided to 
provide the Administration with as much flexibility as 
possible.
    The committee recognizes that budget cuts prohibit funding 
all accounts at current levels. The administration will have to 
choose where it believes U.S. strategic interests lie; ranging 
from Eastern Europe or Africa, population control and 
environment programs, or private sector assistance for Russia. 
Requiring the administration to make these choices in exchange 
for increased flexibility is reasonable and fair. The committee 
expects the administration to provide funding at the proposed 
levels below.

------------------------------------------------------------------------
                                         Fiscal year--                  
                     ---------------------------------------------------
                                                  1996 \1\     1997 \1\ 
       Account            1995         1996      Committee    committee 
                        estimate     request      approved     approved 
                                                    bill         bill   
------------------------------------------------------------------------
Development                                                             
 Assistance.........      1,319        1,300          840          826  
Development Fund for                                                    
 Africa.............        802          802          619          582  
SEED (Eastern                                                           
 Europe)............        359          480          311          271  
Freedom Support Act                                                     
 (NIS/Russia).......        719          788          673          619  
Microenterprises-                                                       
 Housing Guarantees.         20.8         28.7         32           26  
African Development                                                     
 Foundation.........         16.9        $17.4          0            0  
Inter-American                                                          
 Development                                                            
 Foundation.........         30.9         31.7          0            0  
                     ---------------------------------------------------
      Total.........      3,267        3,447        2,475        2,324  
------------------------------------------------------------------------
\1\ Committee approved bill.                                            

            Assistance for Africa
    Section 311(b) requires that not less than 25 percent of 
this account be provided consistent to the terms of the 
Development Fund for Africa. This would allow $619,000,000 for 
Africa in fiscal year 1996 and $582,000,000 in fiscal year 
1997.
            Private and voluntary organizations
    Section 311(c) directs the President to seek to ensure that 
at least 32 percent of the funds for development programs, 
including the Development Fund for Africa and international 
disaster assistance, is channeled through private and voluntary 
organizations and cooperatives. The purpose of this section is 
to prevent cuts in development assistance from being taken 
disproportionately out of the programs implemented by such 
organizations and cooperatives. The Foreign Aid Reduction Act 
of 1995 cuts development assistance 19 percent below the fiscal 
year 1995 appropriated level. The committee recognizes that 
PVOs are a more efficient means of delivering assistance 
programs and that priority should be placed on supporting the 
U.S. Government's partnership with U.S. PVOs and non-profit 
intermediary organizations and cooperatives, which have proven 
themselves to be an efficient and cost-effective means of 
promoting people-to-people assistance.
            World ports
    The committee believes that expanding American exports, 
creating new jobs, and expanding market opportunities in a 
global economy are vital to U.S. national interests. The U.S. 
Government should encourage and support nonprofit organizations 
dedicated to improve infrastructure of developing world ports 
(including technical assistance to facilitate new terminal 
landslide facilities, dredging, improved roadway access to 
terminals, etc.) that facilitate efficiency in the movement of 
U.S. goods through seaports. Congress notes that the 
enhancement of port operations, maritime terminal development, 
cargo handling, harbor improvements, environmental planning, 
and other port activities will increase bilateral trade 
opportunities for the United States and increase domestic jobs 
associated with exports.
            Independent foundations
    Section 311 leaves intact the structures of the Inter-
American Foundation and the African Development Foundation but 
does not provide specific funding for either organization. The 
committee intends that the administration have discretion to 
finance either or both of these organizations, from funds made 
available in the Development Assistance Fund, at levels 
appropriate to their role in advancing United States foreign 
policy objectives in Latin America and Africa, but not to 
exceed the funding levels they received in fiscal year 1995. To 
the extent necessary, the committee intends to allow the 
administration to use existing transfer authorities to provide 
funding for these organizations.
    The committee is encouraged by the work of the Eurasia 
Foundation and calls on the coordinator to ensure an allocation 
of up to $19 million in funding for the foundation in fiscal 
year 1996. At the same time, the committee expects the 
foundation to focus its small grants on projects and efforts 
that most directly contribute to political reform and market-
based economic transformation. The foundation is also strongly 
encouraged to raise substantial financing for its programs from 
the private sector as well.
            Physicians for peace
    The committee supports the work of Physicians for Peace, a 
nonprofit, humanitarian organization, which exemplifies the 
best in American volunteerism. Through multinational and multi-
disciplinary teams of volunteer physicians and other medical 
professionals, Physicians for Peace develops partnerships with 
medical professionals in developing nations to provide medical 
education and free medical service in those nations.
            Assistance for education
    The committee believes that efforts to educate the young 
people of Central and Eastern Europe and the NIS in the skills 
and values of the market economy and democratic society are of 
particular importance, both in assuring the future of economic 
and political reform and in building the human infrastructure 
of these new democracies. Here, as in other ares of assistance 
to democratization and market reform, U.S. private voluntary 
organizations provide an effective, low-cost means of 
delivering expert assistance. The committee believes that U.S. 
Government technical assistance efforts should give priority to 
partnership with private entities whenever feasible, 
particularly those that emphasize local capacity-building, 
education and grass roots political and economic reform. 
Programs which mobilize U.S. professors as volunteers to assist 
educational reform and which train the next generation in 
Central and Eastern Europe and the NIS are particularly 
beneficial.
            Educational and medical institutions overseas
    The committee believes that institutions such as the 
Haddassah Medical Organization in Israel, the Lebanese American 
University and the American University in Beirut exemplify the 
possibilities of U.S. assistance. With seed money provided over 
the years, spurred on by more significant contributions from 
the private sector, these institutions promote U.S. policy and 
provide outreach and assistance in lieu of U.S. personnel.
    The committee further believes that within the fiscal 
constraints of diminishing U.S. assistance programs, direct 
assistance provided to such institutions, avoiding to the 
maximum extent possible the involvement of foreign governments, 
consultants and other middle men, will continue to benefit the 
United States and to leverage to the maximum extent possible 
our foreign aid dollars.
            Deficiencies in AID management of cash advances
    The committee notes with concern a review by the AID Office 
of the Inspector General (OIG) which found that deficiencies 
resulting from unnecessary interest costs and unrealized 
interest income by the AID Washington Office of Financial 
Management and five overseas missions cost the U.S. Treasury an 
estimated $4.5 million. Specifically, OIG found that the six 
offices failed to limit the amount of Treasury check advances 
to the immediate needs of recipient organizations and did not 
adequately monitor recipients' interest earnings. Further, OIG 
found that the Office of Financial Management in Washington did 
not always limit letter-of-credit cash advances to immediate 
needs or use letters of credit in lieu of checks to fund 
recipients as prescribed by U.S. Treasury requirements.
            Improving effectiveness in distribution of technical 
                    assistance to the NIS
    The committee finds that much of AID's technical assistance 
effort in the New Independent States and Central and Eastern 
Europe has produced little positive result. Closed procurement 
practices and AID's own lack of experience in the region has 
too often led to the awarding of contracts to organizations who 
themselves have little regional or area competence. In many 
instances, AID has relied on its network of contractors which 
have experience in the poorest developing nations. The result 
has often been wasteful expenditures on contractor field office 
infrastructure, poor recruitment of participants and expensive, 
and misdirected short-term training in the United States which 
has often had negative impact on NIS professionals 
participating in the program.
    The committee recommends expanded funding for programs, 
such as the Partnerships and Training Project, which bypasses 
many of the weaknesses of traditional AID approaches to 
technical assistance by enabling experienced organizations in 
the United States to partner with regional counterparts to 
achieve needed training of NIS professionals with a minimum of 
bureaucratic intervention; conducting training activities on 
the ground in the region--a far more cost effective and far 
reaching approach than expensive short-term training in the 
United States; and promoting mutual partnerships that enable 
American businessmen, university personnel, and nonprofit trade 
and other organizations and their counterparts in the region to 
demonstrate the benefits of technical assistance.
Section 312.--Economic Support Fund

    Section 312 authorizes the appropriation of $2,375,000,000 
for fiscal year 1996 and $2,375,000,000 for fiscal year 1997 
for Economic Support Funds (ESF). This is $105 million below 
the administration's request of $2.49 billion.
    Subsection (2) provides $15,000,000 only for Cyprus in 
fiscal years 1996 and 1997. Subsection (3) provides $15,000,000 
only for the International Fund for Ireland in fiscal year 
1996. Subsection (4) provides $10,000,000 only for the 
development of an industrial park in Gaza in fiscal year 1996.

Section 313.--Nonintervention concerning abortion

    Section 313 prohibits the use of funds for any program, 
project or activity which violates laws of a foreign country 
concerning the circumstances under which abortion is permitted, 
regulated or prohibited and for any program, project, or 
activity which seeks to alter laws or policies in a foreign 
country regarding the circumstances under which abortion is 
permitted, regulated or prohibited. The section explicitly 
states that this prohibition does not apply to activities in 
opposition to coercive abortion or involuntary sterilization, 
inasmuch as coercive abortion and sterilization are human 
rights violations.
    The committee is deeply concerned about a number of 
statements from numerous administration officials regarding its 
worldwide policy of promoting abortion-on-demand. The committee 
notes Secretary of State Christopher's March 16, 1994 cable to 
all U.S. Embassies which stated that ``A comprehensive strategy 
begins with the need to ensure universal access to family 
planning and related reproductive health services, including 
access to safe abortion * * * The United States believes that 
access to safe, legal and voluntary abortion is a fundamental 
right of all women * * * The United States delegation [to the 
Cairo Conference] also will be working for stronger language on 
the importance of access to abortion services.'' The committee 
also notes AID Administrator Brian Atwood's February 22, 1994 
keynote address at a meeting of the Office of Population 
Cooperating Agencies regarding abortion in developing countries 
in which he stated that ``While obstacles cannot be removed 
overnight, this administration will continue to stand for the 
principle of reproductive choice, including access to safe, 
voluntary abortion.'' The committee further notes Under 
Secretary of State Timothy Wirth's May 11, 1993, statement at 
the Second Preparatory Committee for the U.N. International 
Conference on Population and Development that ``The U.S. 
Government believes the Cairo Conference would be remiss if it 
did not develop recommendations and guidance with regard to 
abortion. Our position is to support reproductive choice, 
including access to abortion.''
    The committee believes that foreign aid should never be 
used as a carrot or a stick by any administration, any 
multilateral bank, or any other international organization to 
promote worldwide legalization of abortion-on-demand. The 
committee further believes that policies that promote 
``reproductive rights'' or abortion-on-demand in foreign 
countries are contrary to U.S. foreign policy interests as many 
third world countries have laws protecting unborn children and 
are understandably sensitive to attempts from foreign 
governments or international organizations to change laws or 
policies in their countries regarding the circumstances under 
which abortion is permitted, regulated or prohibited, and 
regard such policies as intrusive cultural imperialism.

Section 314.--Host country cost-sharing

    Section 314 raises the amount a host country must 
contribute to development assistance projects from 25 to 30 
percent. This section maintains the waiver for the poorest of 
the poor nations required by section 124 of the Foreign 
Assistance Act of 1961.
    Current law requires that countries contribute 25 percent 
of the cost of each U.S. development project so that they have 
a stake in the outcome of the programs. Host countries, 
however, often do not take development projects seriously. AID 
admits that its efforts to account for host country 
contributions are sporadic at best. ``In kind'' contributions 
are often made in ways which cannot be accurately counted. The 
committee further believes that if American taxpayers are asked 
to pay the lion's share for an overseas project, recipient 
nations can contribute at least 30 percent. AID missions and 
AID/Washington must more accurately account for the country 
contributions.
    According to the AID Office of the Inspector General's 
(OIG) Semiannual Report to Congress on March 31, 1995, AID 
missions generally do not assign values or identify what types 
of ``in-kind,'' or non-cash contributions host government 
agencies are expected to contribute over the life of the 
project. The OIG found that without clearly identifying 
contributions at project inception, verification that such 
contributions have been made to satisfy project needs is not 
possible. OIG further found that verification that host 
governments' contributions meet the required 25 percent minimum 
of total project costs was not possible. The committee notes 
with concern the OIG finding that this failure to properly 
identify and assign values resulted in some host countries 
contributing local currencies equivalent to much less than 
their share calculated in U.S. dollars, while others 
contributed much more, depending upon rate fluctuations.
Section 315.--Private funding of private and voluntary organizations

    Section 315 adds a new section to section 129 of the 
Foreign Assistance Act of 1961. Section 315 prohibits funding 
to any private and voluntary organization, except a cooperative 
development organization, which obtains less than 25 percent of 
its total annual funding for international activities from non-
U.S. Government sources.
    Subsection (b) of the new section 129 reinstates a waiver 
currently in law, which allows the President to make funding 
available on a case-by-case basis to private and voluntary 
organizations and cooperatives which do not meet the 
privateness percentage requirement, but which have otherwise 
proven themselves effective and independent organizations.
    Section 123(g) of the Foreign Assistance Act (FAA) and each 
foreign operations appropriations bill currently require 
Private and Voluntary Organizations (PVOs) to receive at least 
20 percent of their funding from non-U.S. Government sources to 
make them eligible to receive AID funds. Any organization 
receiving less than 20 percent from private sources is neither 
``private'' nor ``voluntary.'' Of the 417 Private and Voluntary 
Organizations registered in 1995 at AID, only eight groups 
would be prohibited from receiving AID funds pursuant to this 
25 percent requirement.

Section 316.--Documentation requested of private and voluntary 
        organizations

    Section 316 prohibits funds to any private voluntary 
organization which fails to provide the agency primarily 
responsible for carrying out development assistance with 
material required for audits or fails to register with that 
agency. The committee believes that this is a ``good 
government'' measure to ensure that U.S. foreign aid is being 
spent as intended. Organizations seeking U.S. taxpayers' 
dollars that refuse to provide the documentation necessary for 
audits should not receive U.S. foreign aid.

Section 317.--Prohibition on use of foreign assistance by private and 
        voluntary organizations for office equipment in the United 
        States

    Section 317 prohibits funds from Development Assistance, 
Development Fund for Africa, FREEDOM Support Act, SEED, or 
Economic Support Funds to be used to buy or lease office 
equipment for use in the United States.
    The committee notes that for years AID funds have paid for 
private groups to buy computers, fax machines, and any number 
of other kinds of office equipment for use solely in the United 
States. The committee is concerned that such expenditures could 
facilitate the success of certain PVOs to write improved 
project proposals so that they can receive additional aid 
grants, but that no true development goals are met. The 
committee believes that Americans do not want their tax dollars 
being spent to furnish the Washington offices of grant 
recipients.

Section 318.--Prohibition on circumvention of aid restrictions

    Section 318 places a criminal penalty on officers and 
employees of the United States who circumvent statutory 
prohibitions or restrictions regarding aid prohibitions imposed 
by Congress. This section would not limit the President's 
ability to express views, nor would it limit any officer or 
employee of the United States from expressing the policies of 
the President or communicating the reasons for the prohibitions 
or restrictions under this bill.

Section 319.--Foreign government parking fines

    Section 319 directs that an amount equivalent to 110 
percent of unpaid parking fines owed to the District of 
Columbia, Virginia and Maryland at the end of a fiscal year by 
the government of a foreign country be withheld from the 
foreign assistance obligated to that country under Part I of 
the Foreign Assistance Act in the next fiscal year. Virtually 
the same provision has been included in the fiscal years 1994 
and 1995 Foreign Operations, Export Financing, and Related 
Programs appropriations bills. As a result of the appropriation 
provision, more than $250,000 in parking fines have been paid 
to the District of Columbia government.
Section 320.--Limitation on waiver of sanctions against major drug 
        producing and drug-transit countries

    Section 320 amends section 490 of the Foreign Assistance 
Act of 1961 by adding a paragraph prohibiting the President 
from granting a ``vital national interests'' waiver to any 
major drug-producing or major drug-transit nation ``in any year 
which immediately follows a period of two consecutive years'' 
in which certifications have been made with respect to a 
particular country. The two consecutive year limitation begins 
with the certification due on March 1, 1996, meaning the 
limitation would affect the March 1, 1998 certification 
process.
    It is the committee's view that the interests of the United 
States are best served if countries are duly noted and 
sanctioned for their lack of cooperation. Otherwise, the United 
States sends the inappropriate signal to all drug-producing and 
-transit countries that they can continue performing at an 
inadequate level of cooperation and still enjoy U.S. bilateral 
assistance and support in international financial institutions. 
The ``vital national interests'' waiver allows the President 
not to invoke sanctions against a nation that does not 
cooperate effectively with the United States in fighting 
narcotics in spite of that country's failure to meet the 
certification requirements of section 490 of the Foreign 
Assistance Act of 1961, as amended.
    The committee believes that 2 years provide ample 
opportunity for a country to meet the narcotics cooperation 
certification requirements and for a country to improve its 
performance in fighting illegal drug production or trafficking.
    Moreover, the committee is deeply committed to upholding 
the overall integrity and credibility of the certification 
process. In that regard, it is fair to raise concerns about a 
nation's commitment and political will to combat the illegal 
narcotics trade when that nation has received national 
interests waiver for two consecutive years. It is appropriate 
for Congress to ask whether such a nation is performing in 
accordance with the spirit of the process and of established 
standards. Section 320 is intended to improve the 
administration's accountability with regard to the 
certification process.
    The committee strongly supports assistance to those 
countries that cooperate with the United States in combating 
drug trafficking. Those countries that aggressively combat the 
cultivation, production, and distribution of drugs should and 
will continue to receive U.S. assistance and cooperation.

Section 321.--Engaging the United States private sector in development

    Section 321 recommends that, of the funds made available 
under section 311 of this bill, significant resources must be 
made available to engage the U.S. private sector in the 
development of recipient nations. Section 321(a)(3) requires 
that the ratio of private sector investment to U.S. government 
assistance be no less than 2.5 to 1. Section 321(b) requires 
the Secretary of State to report to Congress annually detailing 
the Administration's efforts to meet the requirements of this 
section.
    The committee recognizes that the United States' most 
powerful tool for economic development is the U.S. private 
sector--including small, medium, and large businesses, farm 
groups, entrepreneurs, and others. These groups should play a 
major cooperative role in U.S. foreign assistance programs 
worldwide.
    When U.S. private enterprises risk their own resources to 
establish profitable joint ventures in developing countries, 
there is financial incentive for projects to be successful and 
self-sustaining over the long term. The U.S. development 
programs should build partnerships with these enterprises--thus 
leveraging the technology, creativity, and financial resources 
of the U.S. private sector to help achieve significant economic 
development and restructuring goals in developing countries. 
Projects with private sector principles at their core are self-
sustaining and, therefore, will continue to contribute to 
economic development in developing countries long after U.S. 
funding is depleted.
    The administration should expand, enhance, and improve 
programs that leverage private sector resources to establish 
self-sustaining development projects. Such programs will use 
U.S. technology and know-how to foster development in 
agriculture, food systems, transportation, communications, and 
other important economic sectors that will be significant 
markets for U.S. exports in developing countries in the future. 
As a result, U.S. national security will benefit from increased 
growth and stability worldwide, and the U.S. economy will 
benefit from increased export opportunities in developing 
international markets.
    The administration is allocated significant resources of 
economic development funding for programs in which U.S. 
enterprises leverage their invested resources with foreign 
assistance funds. The ratio of private sector to public sector 
investment in these programs is to be at least 2.5:1. Each 
participant in these projects, including the indigenous 
business partner, must be a direct stakeholder to ensure a 
relationship of mutual respect and mutual benefit.
    To implement economic development programs with private 
sector enterprises, the administration should work, to the 
extent possible, through experienced intermediary business-
related development organizations. These intermediary 
organizations will engage those U.S. private enterprises that 
are willing to invest their own private resources in projects 
with local partners in countries targeted for U.S. economic 
development assistance. These intermediary organizations are 
vital elements in creating cooperative business relationships 
that can provide effective economic development assistance.
    Accountability will be the top priority for assistance 
projects involving the private sector--as it should be with all 
U.S. foreign aid programs. Therefore, the administration should 
perform independent evaluations of each project to ensure 
effectiveness and compliance with cost-sharing requirements.
            Kenan development partnership model
    Expanding and opening new markets for U.S. business abroad 
should be a central element of U.S. foreign policy. Aid is no 
exception. Assistance can be an effective way to promote 
overseas economic development that serves U.S. interests. Using 
aid to bring the resources, technologies, and know-how of 
America's dynamic private sector to bear on development 
problems, in certain instances, can benefit both developing 
nations and the U.S. private sector. Committee hearings on the 
issue showed clearly that current aid programs limit their 
effectiveness by failing to involve fully the U.S. business 
sector, and confirmed the value of a successful new model to 
remedy this gap. For example, AID developed in Thailand, in 
cooperation with the Kenan Institute of Private Enterprise, a 
highly cost-effective mechanism to leverage U.S. technology and 
private sector expertise. It tackles urgent development 
problems in a way that greatly reduces costs, creates immediate 
trade and employment gains for the U.S., and generates lasting 
mutual benefits for both countries without continuing infusions 
of taxpayers dollars. This win-win model deserves broad 
replication, particularly in countries where strong private 
sector growth has reduced the rationale for traditional aid.
            MBA Enterprise Corps
    In countries where private enterprise growth still lags, 
particularly in the former Communist bloc, business volunteer 
programs offer high impact results and stimulate economic 
development. The experience and capabilities of programs such 
as the International Executive Service Corps, VOCA, the 
Citizens Democracy Corps, and the MBA Enterprise Corps should 
be relied upon increasingly for the implementation of U.S. 
enterprise development assistance.
            Private sector development in Africa
    As noted in the introduction to this report, most African 
countries have been receiving U.S. foreign assistance since 
before, or immediately after, gaining independence from the 
colonial powers. Economic independence, unfortunately, has not 
followed political independence in many cases.
    The Corporate Council on Africa and the U.S.-South Africa 
Business Council are two relatively young organizations which 
are harnessing the power of private enterprise to promote 
economic development and encourage rational economic policies 
in the countries of Africa. Their efforts should be encouraged 
and duplicated.

                         Chapter 3--Peace Corps

Section 331.--Peace Corps

    Section 331 authorizes the appropriation of the President's 
budget request of $234,000,000 for fiscal year 1996 and 
$234,000,000 for fiscal year 1997 for expenses necessary to 
carry out the provisions of the Peace Corps Act.

Section 332.--Deadlines for evaluation of and report on health care 
        services provided to Peace Corps volunteers

    The committee has included a provision to delay by 1 year 
an outside evaluation of the Peace Corps' health system. This 
evaluation is the final of three evaluations required by P.L. 
102-565. Its purpose is to assess the adequacy of the Peace 
Corps' health system to provide for the needs of Peace Corps 
volunteers, to conduct health examinations of applicants for 
enrollment as volunteers and to provide immunization and other 
preparatory services to persons who have accepted an invitation 
to begin training as a Peace Corps volunteer. The outside 
evaluation is required to include recommendations regarding 
appropriate standards and procedures for furnishing quality 
medical care to volunteers.
    The committee recognizes that the original law provided for 
three evaluations in very quick succession. As a result, it 
allowed for little time to implement any recommendations before 
the next report became due. By delaying the third report from 
fiscal year 1996 to fiscal year 1997, the committee is allowing 
the Peace Corps an opportunity to put resources into the 
improvements recommended by the previous evaluations which 
should enhance the value of the third report to Congress and to 
the agency, itself.

         Chapter 4--International Disaster Assistance Programs

Section 341.--International disaster assistance

    Section 341 authorizes the appropriation of the President's 
budget request of $200,000,000 for fiscal year 1996 and 
$200,000,000 for fiscal year 1997 for international disaster 
relief and rehabilitation.
            TITLE IV--PEACE AND SECURITY IN THE MIDDLE EAST

Section 401. Economic Support Fund assistance for Israel

    Of the amount authorized to be appropriated for the 
Economic Support Fund, section 401 makes available 
$1,200,000,000 in both fiscal years 1996 and 1997 only for 
Israel. Section 401 makes available ESF for Israel as a cash 
transfer on a grant basis within 30 days after the beginning of 
the fiscal year or date of enactment of the Act appropriating 
such funds. The section directs the President to ensure that 
the level of cash transfer made does not cause an adverse 
impact on the total level of nonmilitary exports from the U.S. 
to Israel. This section is identical to current law.

Section 402.--Foreign military financing for Israel

    Section 402 authorizes appropriations of Foreign Military 
Financing (FMF) for fiscal years 1996 and 1997 of not less than 
$1,800,000,000 only for Israel to be made available as a cash 
transfer on a grant basis within 30 days after the beginning of 
the fiscal year or date of enactment of the act appropriating 
such funds. The section also sets a floor for funds available 
for procurement in Israel of advanced defense articles and 
defense services, including research and development. This 
section is identical to current law.

Section 403.--Economic Support Fund assistance for Egypt

    Section 403 provides that of the amount made available by 
section 302 of this bill in fiscal years 1996 and 1997 for 
Economic Support Funds (ESF), not less than $815,000,000 shall 
be made available only for Egypt in both fiscal years. This 
section is identical to current law.

Section 404.--Foreign military financing for Egypt

    Section 404 provides that of the amounts made available for 
Foreign Military Financing (FMF) for fiscal year 1996 and 
fiscal year 1997, not less than $1,300,000,000 shall be 
available only for Egypt in both fiscal years. This section is 
identical to current law.

Section 405.--Establishment of a free trade area for Taba, Elat, and 
        Aqaba

    Taba, Egypt and Aqaba, Jordan border Elat, Israel. Both 
Jordan and Egypt have entered into peace agreements with 
Israel, but to achieve a lasting peace, the development of 
trading relationships between the three parties is essential. 
The President's recent decision to establish a free trade area 
centering on Elat and extending to Taba and Aqaba will provide 
an important beginning for regional cooperation and the 
integration of regional commerce.
    Section 405 expresses the sense of the Congress that the 
President should extend duty free treatment to products of Taba 
and Aqaba if such extension would significantly benefit the 
development of regional economic development, would include 
only goods which experienced significant manufacturing change 
in Taba or Aqaba, and providing that effective procedures exist 
to ensure Taba and Aqaba are not merely used as transshipment 
points for goods manufactured outside these two cities and all 
three countries are developing laws and procedures to encourage 
the free flow of goods and people between these cities.
Section 406.--Continuation of free trade treatment for Gaza and Jericho

    Section 406 expresses the sense of the Congress that the 
United States should grant duty free access to the U.S. market 
for products of the West Bank and Gaza. In 1985, Congress 
approved a free trade agreement with Israel, which at that time 
included the occupied territories of the West Bank and Gaza. 
Now that Israel and the Palestinian Authority have signed the 
Declaration of Principles, goods manufactured in Gaza and 
Jericho are subjected to less favorable treatment than those 
manufactured in Gaza and Jericho before the signing.

Section 407.--Authorization for an industrial park on the border 
        between the territories and Israel

    Section 407 expresses the sense of Congress regarding the 
U.S. appointment of a special coordinator to coordinate the 
development of an industrial park in Gaza and recruit U.S. 
investors. Section 312 of the bill authorizes $10,000,000 in 
fiscal year 1996 for this purpose.
    The committee recognizes that extremists in Hamas and 
Islamic Jihad reject the gains made since the signing of the 
Declaration of Principles and are using terrorist tactics to 
force the closing of the border between the territories and 
Israel. The result has been skyrocketing unemployment (more 
than 50 percent), increasing chaos and a downward spiral of 
sinking hopes and deepening poverty.
    This provision expresses the sense of the Congress that the 
United States should take prompt, visible action before the 
coming elections in Gaza and Jericho that promises hope and 
jobs to Palestinians. In particular, the committee believes 
that the President should designate a special coordinator from 
within the administration to coordinate the rapid development 
of an industrial park in Gaza and to begin the recruitment of 
U.S. investors.
            Middle East peace
    The committee recognizes the national security implications 
to the United States of peace in the Middle East. It is 
important for the United States to promote economic stability 
and security in those nations of the Middle East allied with 
the United States. The United States must remain committed to 
Israel's strategic edge.
    The committee believes that in the end, it will be those 
nations' own commitment to economic reform and democratization 
that will ensure long-term stability and provide a bulwark 
against extremism of all kinds. Insofar as economic support 
funds are leveraged to modernize infrastructure, provide a 
basis for U.S. firms to enter the commercial markets in 
recipient countries such assistance can benefit both the United 
States and the receiving country.
    A case in point is the telecommunications sector. Foreign 
assistance to Egypt has leveraged United States firms into a 
previously closed market and has helped modernize Egypt's 
telecommunications network. Currently, plans exist to privatize 
Egypt's telephone/telecommunications agency, with all future 
funding contingent upon mutually agreed upon economic reforms.
    Such success stories are few and far between. Far more 
familiar is a lax attitude toward reform and chronic waste and 
inefficiency in both the Egyptian economy per se and in U.S. 
projects in that country. The committee believes that economic 
reform must be key to the continued flow of assistance to Egypt 
and that failure to make agreed upon economic reforms should 
result in a decrease in assistance. Currently, Egypt's failure 
to implement reforms agreed upon with the United States results 
only in a temporary halt in the flow of cash transfer 
assistance, with an understanding that such assistance will 
resume whether or not reforms are made. This provides few 
incentives to make the changes necessary to Egypt's long term 
economic security.
    Ultimately, declining funds for foreign assistance and 
increasing demands on the U.S. Treasury will dictate a 
reduction in assistance to even the most valuable allies of the 
United States in the Middle East. The committee urges both 
Israel and Egypt to recognize the potential impact of budget 
imperatives in the United States, because failure to do so can 
only harm the ability of aid beneficiaries to begin planning 
for a secure and stable future.
                     TITLE V--OTHER REGIONAL ISSUES

Section 501.--Lending to the independent states of the former Soviet 
        Union required to be secured by certain export earnings

    Section 501 provides that either the President must certify 
that NIS countries are adhering to debt repayment schedules of 
the multilateral banks or the repayment of loans must be 
secured by the royalties or revenues earned by such state from 
the export of petroleum products, minerals or other 
commodities. If no certification is made or repayment is not 
secured as required, this section provides that no loan or 
credit may be extended by the United States to the NIS under: 
(1) the Foreign Assistance Act; (2) the Arms Export Control 
Act; (3) the Agricultural Trade Development and Assistance Act; 
(4) Section 416(b) of the Agricultural Act; and (5) the EX-IM 
Bank Act, and the United States shall vote against the 
extension of any credit or the issuance of any guarantee at the 
multilateral banks, including under the IMF's general 
arrangements to borrow. This section also directs U.S. 
Executive Directors at the multilateral banks to pursue a 
policy of securing collateral for such loans at the banks.
    The committee notes that since the fall of Soviet communism 
$2,454,000,000 in United States bilateral loans have been 
extended to the states of the former Soviet Union and 
multilateral financial institutions have committed 
$11,400,000,000 to those countries. The committee also notes 
that loans to the former U.S.S.R. have been repeatedly 
rescheduled, perhaps never to be repaid, and some Russian loans 
from the United States have received a 1-year deferral.
    The committee notes that nations of the former Soviet Union 
have an abundance of natural resources. Countries that make up 
the former Soviet Union have 49 billion barrels of proven crude 
oil reserves compared to only 23 billion barrels of proven 
crude oil reserves in the United States. They rank No. 1 in the 
world in proven natural gas reserves with 1.6 quadrillion cubic 
feet, compared to only 163 trillion cubic feet of proven 
natural gas reserves in the United States. Mineral reserves in 
these nations are equally impressive.

Section 502.--Restrictions on assistance for Nicaragua

    Section 502 conditions development assistance and economic 
support funds to the Government of Nicaragua upon a 
determination and certification by the Secretary of State, in 
consultation with the Secretary of Defense and the Director of 
Central Intelligence, that Nicaragua: (1) has completed a full 
investigation of the May 1993 Santa Rosa arms cache explosion 
in Managua which exposed the existence of a terrorist and 
kidnapping ring operating out of Nicaragua; (2) has made 
substantial progress in resolving American claims to 
confiscated properties; (3) has removed from the military and 
security forces all individuals implicated in the 
assassinations of Jean Paul Genie, Arges Sequeira, and Enrique 
Bermudez, and initiated judicial proceedings against those so 
accused; and is making significant and tangible progress in (1) 
prosecuting those identified by the Secretary of State or the 
Attorney General as being part of a terrorist or kidnapping 
ring, (2) implementing the recommendations of the Tripartite 
Commission, including suspending from the military and security 
forces those individuals named by the commission as having 
committed human rights violations, (3) implementing changes 
resulting in civilian control over the military, security 
forces, and police, and (4) making effective reforms in the 
judicial system. Section 502(d) allows the President to provide 
assistance to Nicaragua for several purposes.
    The certification made pursuant to this section shall 
include a detailed accounting of all evidence in support of the 
above determinations. For fiscal years 1996 and 1997, this 
section denies the President the waiver authority in section 
527(g) of the Foreign Relations Authorization Act for fiscal 
years 1994 and 1995 (Pub. L. 103-236) regarding the resolution 
of expropriated property claims.
    The committee has long had concerns about the situation in 
Nicaragua, including continued human rights violations, the 
absence of effective law and order which results in impunity 
for the military and security forces, and the lack of 
significant progress resolving American property claims in 
Nicaragua. The committee notes that despite repeated promises 
of reform and some $1.3 billion in United States aid, Nicaragua 
still has significant areas where progress needs to be 
achieved. It is the committee's view that progress in the areas 
noted above is indispensable for the creation of a strong and 
stable democratic system in Nicaragua.
    The committee remains concerned that there has yet to be a 
full investigation of the May 23, 1993 Santa Rosa arms cache, 
which contained surface-to-air missiles, AK-47's, rocket-
propelled grenades, C-4 plastic explosives, and other weapons 
used in terrorist actions. The committee finds disturbing that 
before the weapons' origin could be traced, serial numbers were 
removed from 16 surface-to-air missiles. In the committee's 
view this raises serious questions about possible involvement 
and/or complicity by either former or current Nicaraguan 
officials in the arms cache. The committee is not aware that 
any former or current officials implicated in the terrorist and 
kidnapping rings uncovered at Santa Rosa have been 
investigated.
    The committee also notes that little, if anything, seems to 
have been done by the Nicaraguan Government to investigate the 
relationship between Nicaraguans and the February 1993 World 
Trade Center bombing. When asked in May 1995 about such an 
investigation, President Chamorro stated, ``Those are old 
things. That happened in New York. They have the CIA and all 
the things they have in the United States. Let them investigate 
* * *'' (La Prensa, May 17, 1995).
    Since the Santa Rosa explosion, several dozen arms caches 
belonging to the Sandinistas, Salvadoran guerrilla factions, or 
the Spanish Basque terrorist group, ETA, have been uncovered in 
Nicaragua. The committee notes that the Nicaraguan Government 
has assured the international community that the plethora of 
weapons caches was a remnant of Sandinista rule. However, arms 
smuggling from Nicaragua, and by Nicaraguans, continues. The 
committee is aware of two recent cases: On March 8, 1995, four 
Nicaraguans crossed into Honduras and were captured with a 
sizable arms cache; and in April 1995, an arms shipment from 
Nicaragua was seized in Colombia.
    The resolution of property American property claims remains 
an area of strong committee interest and concern. Resolution of 
all outstanding property claims, not just the high profile 
cases, should be a priority for the Nicaraguan Government, in 
the committee's view. There remain 1,172 unresolved confiscated 
property cases representing 474 United States citizens; and the 
Nicaraguan Government or its officials still occupy 14 
properties belonging to Americans. It is the committee's view 
that the resolution of all claims of 84 American citizens is 
primarily due to U.S. pressure and the work of two U.S. embassy 
officials in Managua who deal with property cases. The 
committee notes that since November 8, 1994, the Nicaraguan 
Government has resolved as many property cases as were resolved 
in the previous 4 years. This raises the question of whether 
the problem is one of political will.
    The committee continues to note that several prominent 
Sandinistas, including some who are still in official 
positions, occupy homes owned by American citizens. The list 
includes Col. Lenin Cerna, former Inspector General of the 
Armed Forces who was recently made Advisor to the Joint Chiefs 
of Staff; Lt. Col. Julio Aviles Castillo, Military Chief of 
Region IV; Commander Marcelino Guido, Director of the Prison 
System; and former Foreign Minister Miguel D'Escoto.
    Human rights also remains a committee concern: Not a single 
person has been prosecuted and incarcerated for the murders of 
more than 350 former members of the Nicaraguan Resistance. 
According to the OAS and the two independent Nicaraguan human 
rights organizations, the majority of these demobilized former 
Contras have been assassinated by members of the Sandinista 
Popular Army [EPS], national police, or security forces. The 
Tripartite Commission has repeatedly recommended prosecution of 
officers and soldiers implicated in human rights violations, 
but these recommendations have largely been ignored by the 
Nicaraguan Government. The committee is aware that some members 
of the police force have been reassigned, but sanctions against 
members of the military are lacking.
    The committee continues to express its outrage at the 
October 1990 assassination of 16-year-old Jean Paul Genie, in 
which Gen. Humberto Ortega is implicated in having knowledge of 
the crime and in protecting the alleged killers, who were 
Ortega's bodyguards at the time of the killing. This case has 
been languishing in the Nicaraguan Supreme Court for a year. 
Also, the process has been slowed by the stalemate over 
constitutional reform, under which several new justices have 
been appointed, leading the executive branch not to recognize 
the current Supreme Court.
    The committee is encouraged that the Inter-American Human 
Rights Court [IACHR] accepted the Genie case. However, it notes 
that since Nicaragua did not accept the IACHR's jurisdiction 
until after the Genie murder, the court will only rule on the 
alleged cover-up of the case by senior Nicaraguan military 
officials.
    Before the court accepted the Genie case, the Government of 
Nicaragua presented an objection to the admissibility of the 
case in the IACHR on the grounds that all domestic judicial 
remedies had not been exhausted. The IACHR has decided to rule 
on the admissibility of the case (i.e., whether all internal 
judicial remedies have to be exhausted) simultaneously with the 
ruling on the question of the denial of justice to the Genie 
family. The committee is informed that the IACHR has delayed 
further review of the case until November 1995 because one of 
the five judges has been taken ill. (Five judges are required 
for a quorum in any IACHR case.)
    In 1994, Nicaragua received international good will for 
accepting jurisdiction of the IACHR. However, since that time, 
the Government of Nicaragua has argued that the court does not 
have jurisdiction to hear the case. The committee is concerned 
that the posture of the Nicaraguan before the court is 
inconsistent with President Chamorro's public commitment to 
allow the IACHR to rule on the denial of justice in the Genie 
case. The committee strongly supports a swift and just 
resolution of this case and anticipates that the case will be 
judged on its merits, not political expediency.
    The question of impunity also arises in the killings of 
Enrique Bermudez, the former military of the Nicaraguan 
Resistance, and Arges Sequeira, a prominent property rights 
activist. Since the February 1991 assassination of Bermudez, no 
one has been implicated in the crime. After 4 years, even 
Nicaraguan officials admit that this case has not progressed. 
In the case of the November 1993 murder of Arges Sequeira, the 
three assassins are former members of the Nicaraguan military 
and security services who have never been arrested. Though the 
Nicaraguan Government claims that their whereabouts are 
unknown, journalists have been able to find and talk with them. 
For example, in February 1994, a Le Monde reporter interviewed 
one of those implicated in the murder; during this interview, 
the alleged killer of Sequeira admitted that he traveled freely 
around the country.
    The committee has expressed its view on military reform and 
finds Gen. Humberto Ortega's departure a welcome action and 
long overdue. However, the current officer corps was shaped for 
16 years under Humberto Ortega's tutelage and guidance, and the 
high command structure of the army remains virtually unchanged. 
The committee continues to question whether there is any 
civilian control over the military.
    Impunity for members of the military continues to be a 
committee concern. Examples of impunity include the refusal to 
prosecute those named by the Tripartite Commission, as well as 
those responsible for the murder of Jean Paul Genie. A recent 
example of military impunity is the lack of effective civilian 
judicial review of officers involved in the January 1995 
killings at La Maranosa, where members of the army tortured and 
killed 11 young men after they surrendered their weapons. 
(According to information available to the committee, the young 
men had reached an agreement with the army to demobilize and 
disarm in exchange for promises of land and assurances 
regarding their personal safety.) The army members also killed 
an old man and a teacher, both civilians. Physical evidence and 
witness interviews conducted by independent human rights 
organizations and OAS personnel indicate that the victims were 
unarmed. The committee has also been made aware of allegations 
that members of the army and police have concealed evidence and 
obstructed inquiries. The committee has been informed that 
those implicated in the La Maranosa killings have been cleared, 
by a military tribunal, of all charges.
    Concrete reforms in the Nicaraguan judicial system have 
also been slow. In 1994, the National Assembly drafted and 
overwhelmingly ratified over 60 reforms to the 1987 
Constitution adopted during Sandinista rule. The Assembly 
referred the reforms to the president, as required under the 
1987 Constitution; however, the executive branch has refused to 
recognize the reforms as having legal effect. This has resulted 
in a stalemate and a confrontation between two branches of the 
Nicaraguan Government. The committee notes that a number of the 
reforms reflect changes advocated by the Nicaraguan President 
during the 1990 election. The committee further encourages a 
resolution of this stalemate in a manner that promotes the 
consolidation of democratic institutions and freedom for the 
Nicaraguan people.
Section 503.--Restrictions on Assistance to North Korea and the Korean 
        Peninsula Energy Development Organization

    Section 503 adds a new section 620J to the Foreign 
Assistance Act of 1961 placing certain restrictions on 
assistance to the North Korea. It reiterates that the provision 
of assistance to North Korea shall be made in accordance with 
all the requirements, limitations and procedures otherwise 
applicable to the provision of assistance to North Korea (i.e., 
Communist country prohibition, country supporting international 
acts of terrorism, etc.).
    Subsection (b) of the new 620J requires that when the 
President notifies Congress that aid is to be provided to North 
Korea, a report must accompany the notification regarding the 
exact dollar amounts pledged to the Korean Peninsula Energy 
Development Organization [KEDO] by participating countries, the 
dollar amount actually transferred to KEDO by these countries 
and the extent to which North Korea has complied with all 
aspects of the agreed framework, including, but not limited to, 
the delivery and use of heavy fuel oil and progress on North-
South dialog.
    The new subsection (c) ensures that any United States funds 
obligated to KEDO for use in the provision of assistance to 
North Korea shall be obligated under the same terms and 
conditions for the provision of United States assistance to 
North Korea. The committee envisions this to apply to the 
payments for the purchase and delivery of heavy fuel oil, in 
particular. If the President wishes to provide assistance in 
the form of heavy fuel oil to the North Koreans, currently 
applicable United States laws shall be adhered to in the 
process and the committee expects Presidential waivers to be 
issued, when necessary.

Section 504.--Future of the United States military presence in Panama

    Section 504 expresses the sense of the Congress that it is 
in the interests of both Panama and the United States to 
maintain a United States military presence in Panama beyond 
December 31, 1999 as the best means of ensuring that the United 
States will be able to act appropriately to ensure that the 
Panama Canal remains open, neutral, secure, and accessible, 
consistent with the Panama Canal treaties, the Treaty 
Concerning the Permanent Neutrality and Operation of the Panama 
Canal, and the resolutions of ratification. The President is 
encouraged to begin negotiations with the Government of Panama 
for a base rights agreement that will allow the continued 
presence of United States military personnel and to consult 
with Congress throughout any such negotiations.
    The committee notes that the ``Exchange of Instruments of 
the Ratification of the Panama Canal Treaties'', a protocol in 
``The Treaty Concerning the Permanent Neutrality and the 
Operation of the Panama Canal'', makes it clear that nothing in 
the treaties precludes Panama and the United States from 
reaching agreement regarding the stationing of United States 
military forces or the maintenance of defense sites in Panama 
after December 1999.
    The committee recognizes Latin America's importance to the 
United States, the close relationship that exists between 
Panama and the United States, and the United States need for a 
continued strategic military capability in the region. In the 
committee's view, the maintenance of United States military 
forces in Panama provides the United States with the best 
option and capability for protecting the Canal and broader 
United States interests in the region.
    The section's intent is to encourage the President to 
pursue a base rights agreement similar to those we have with a 
number of other countries. Given that public opinion polls in 
Panama consistently show that over 70 percent of the 
Panamanians themselves want the United States military to 
maintain some presence in Panama, the committee notes that this 
is an appropriate time to negotiate a base rights agreement.

Section 505.--Eligibility of Panama under the Arms Export Control Act

    Section 505 makes Panama eligible to purchase defense 
articles and services under the Arms Export Control Act.
Section 506.--Certification requirements for Colombia with respect to 
        illegal drug production and drug trafficking activity for 
        fiscal years 1996 and 1997

    Section 506 amends section 490A of the Foreign Assistance 
Act of 1961 by adding two subsections: a new subsection 490A(h) 
regarding special determination and certification procedures 
for Colombia for fiscal years 1996 and 1997, in lieu of the 
procedures currently in section 490A; and a new subsection 
490A(i) outlining sanctions, in addition to those in existing 
law, that the President may implement for a major illicit drug-
producing or -transit country that is not certified as 
cooperating pursuant to section 490A.
    For fiscal year 1996, in order for Colombia to continue 
receiving United States assistance and support in the 
multilateral development banks, the President must certify, by 
March 1, 1996, that:

          (A) the Government of Colombia has made substantial 
        progress in the following matters specifically 
        committed to by the President of Colombia: (i) 
        Investigating contributions by drug traffickers to 
        political parties in Colombia. (ii) Providing funding 
        for a sustainable alternative development program to 
        encourage Colombian farmers to grow legal crops. (iii) 
        Utilizing law enforcement resources to investigate, 
        capture, convict, and imprison major drug lords and 
        their accomplices. (iv) Implementing and funding a plan 
        to improve the administration of justice. (v) Acting to 
        confiscate profits resulting from drug trafficking. 
        (vi) Enacting legislation to implement the United 
        Nations Convention Against Illicit Traffic in Narcotic 
        Drugs. (vii) Dismantling the infrastructure used for 
        processing illegal drugs, interdicting the chemicals 
        used for such processing, and seizing assets used to 
        transport illegal drugs. (viii) Investing in technology 
        to improve surveillance systems. (ix) Tightening law 
        enforcement capabilities and commencing construction of 
        a Coast Guard installation on San Andres Island, to 
        effectively monitor air and ship traffic that departs 
        from the island. (x) Improving the aircraft detection 
        and interception systems of Colombia. (xi) Encouraging 
        the adoption of an Inter-American convention to ban the 
        establishment of financial safe havens in the Western 
        Hemisphere.
          (B) That the Government of Colombia has accomplished 
        the following matters specifically committed to by the 
        President of Colombia: (i) Investigating contributions 
        by drug traffickers to political parties and 
        prosecuting those responsible. (ii) Providing funding 
        for a sustainable alternative development programs. 
        (iii) Utilizing law enforcement resources to 
        investigate, capture, convict, and imprison drug lords 
        and their accomplices. (iv) Implementing and funding 
        fully a proposed plan to improve the administration of 
        justice. (v) Acting to confiscate profits from drug-
        related activities. (vi) Enforcing a statute 
        prohibiting money laundering. (vii) Implementing 
        reforms to make drug traffickers' sentences 
        commensurate with their crimes and to eliminate 
        loopholes in the plea bargaining system. (viii) 
        Deploying a unit to investigate and bring to 
        prosecution those engaged in corruption. (ix) 
        Dismantling the infrastructure used for processing 
        illegal drugs, interdicting precursor chemicals, and 
        seizing assets used to transport illegal drugs. (x) 
        Investing in technology to improve surveillance of 
        airports, waterways, and seaports in Colombia. (xi) 
        Improving and utilizing aircraft detection and 
        interception systems. (xii) Encouraging the adoption of 
        an Inter-American convention to ban the establishment 
        of financial safe havens in the Western Hemisphere.
          (B) That Colombia has accomplished the following 
        matters specifically committed to by the President of 
        Colombia: (i) The enactment of legislation to implement 
        the United Nations Convention Against Illicit Traffic 
        in Narcotic Drugs. (ii) The destruction of all illicit 
        crops, estimated at 70,000 hectares. (iii) The 
        construction of a Coast Guard installation on San 
        Andres Island.

    The section further provides that, for either fiscal year 
1996 or fiscal year 1997, assistance and support in 
multilateral development banks may continue to be provided if 
the President determines and certifies that it is in the vital 
national interests of the United States to do so. The Secretary 
of State shall submit to the appropriate congressional 
committees a report by September 1, on the progress and 
accomplishments made by Colombia in the matters set forth 
above.
    The amendment also adds a new subsection regarding 
additional sanctions that may be imposed by the President for 
countries failing to be certified under Section 490A, 
including: a suspension of all bilateral assistance; the 
suspension of Export-Import Bank financing; the suspension of 
funds to license the commercial export of items on the United 
States Munitions List under section 38 of the Arms Export 
Control Act; the suspension of funds for military activities in 
Colombia or that benefit Colombia, including joint military 
activities; taking reasonable steps to ensure that public 
officials and their associates implicated in drug-related 
corruption are denied entry into the United States, consistent 
with the provisions of the Immigration and Nationality Act, 
until the completion of an investigation that is satisfactory 
to the Secretary of State and the Attorney General of the 
United States; if applicable, withdrawing the designation of a 
country as a beneficiary under the Andean Trade Preferences 
Act, pursuant to the procedures set forth in that act; 
terminating the designation of a country as a beneficiary 
developing country under the Trade Act of 1974, pursuant to the 
procedures set forth in that act; and if applicable, denying a 
country participation in the discussion or implementation of a 
free trade agreement involving Western Hemisphere countries. 
Sanctions are imposed seven calendar days after the President 
transmits to the appropriate congressional committees a notice 
setting forth the sanctions to be imposed, and they terminate 
15 calendar days after the President transmits such a notice to 
the appropriate congressional committees.
    This section expresses the sense of the Congress that the 
United States should not extend tariff or quota treatment 
equivalent to that accorded to members of the North American 
Free Trade Agreement, or extend participation in the North 
American Free Trade Agreement, to any major drug-producing 
country or major drug-transit country not certified as 
cooperating with the United States under section 490A.
    The Committee notes that cocaine remains the primary drug 
threat to the United States, and that Colombia is both the 
``corporate headquarters'' for the international cocaine 
cartels and a primary heroin producer in the Western 
hemisphere. At least 80 percent of the cocaine entering the 
United States is produced by Colombian drug cartels. The 
committee acknowledges that Colombia's place in United States 
international drug control efforts is critical, and that that 
nation's counterdrug performance is of strategic importance to 
stopping the flow of illegal narcotics into the United States.
    The committee recognizes that there are courageous 
Colombians who risk their lives every day to fight the drug 
traffickers. Over the past ten years, the people of Colombia 
have paid a high price in fighting the illegal drug trade, 
including the deaths of four Presidential candidates, 23 
magistrates, 63 journalists, and over 3,000 policemen.
    The committee recognizes that despite its losses, including 
the recent killing of four policemen involved in aerial 
eradication, the commitment of the Colombian National Police 
continues, as is evidenced by their efforts during the first 5 
months of 1995, including the destruction of over 8,000 
hectares of coca and poppy plants, the seizure of substantial 
quantities of precursor chemicals used in the production of 
illegal drugs, and, in the committee's view most significantly, 
the June 9 arrest of Cali drug leader Gilberto Rodriguez 
Orejuela.
    The committee also acknowledges the aggressive actions 
taken by the Chief Prosecutor of Colombia to investigate high 
level government officials, including members of Congress, 
allegedly corrupted by drug trafficking interests.
    It is these individuals whom the United States--and the 
Colombian Government--should be supporting. The committee 
commends General Jose Rosso Serrano, the Colombian National 
Police, and the other United States and Colombian officials who 
participated in the arrest of Rodriguez Orejuela.
    The committee acknowledges that the arrest of Gilberto 
Rodriguez Orejuela is a positive first step toward dismantling 
the Cali drug cartel. It is the committee's hope that this step 
represents a serious effort on the part of the Colombian 
Government to crack down on the cartels. The prosecution of 
Rodriguez Orejuela to the fullest extent of the law, and his 
incarceration and punishment commensurate with his crimes, will 
be a clear demonstration that Colombia is taking steps to 
fulfill the counterdrug agenda enunciated by President Samper. 
These steps, combined with increased pressure on the other Cali 
cartel leaders, in the committee's view, will increase respect 
for Colombia's efforts.
    This recent positive step follows a period in which, in the 
committee's view, the Colombian Government's counterdrug 
performance lacked effective actions to dismantle the drug 
cartels and to reverse the influence of narco-corruption. This 
lack of performance was reflected in the fact that on March 1, 
1995, the President gave Colombia a ``vital national 
interests'' waiver, due to its inadequate level of counterdrug 
cooperation.
    The committee notes that Colombian President Samper has 
enunciated a counterdrug agenda for his government. In a July 
15, 1994, letter to several members of Congress, including 
members of this committee, then-President-elect Samper outlined 
a number of ``concrete initiatives'' he would take to address 
the narcotics problem. He promised to: (1) vigorously apply all 
law enforcement resources to investigate, track and incarcerate 
the drug lords and their accomplices; (2) implement reforms to 
Colombia's penal code, including increasing penalties for drug 
traffickers, closing loopholes in the plea bargaining system, 
and strengthening anticorruption and money-laundering laws; and 
(3) implement a global export monitoring system for precursor 
chemicals.
    It was the committee's assessment that as of the March 1, 
1995 certification, President Samper had not fully implemented 
his July commitments.
    On February 6, 1995, three weeks before the annual 
certification by the President of the United States, President 
Samper outlined a ``Program of the War Against Illicit Drugs,'' 
a comprehensive counterdrug strategy for Colombia to be pursued 
during his administration. In that speech, President Samper 
stated that, amongst other goals, he would: (1) destroy 44,000 
hectares of illegal crops in 1995; (2) reformulate the plea 
bargain policy, including a $500 million plan to improve the 
administration of justice; and (3) implement laws to act more 
forcefully to confiscate profits resulting from illegal 
enrichment.
    In outlining this program, President Samper stated that 
Colombia ``will continue fighting [narcotics] because we are 
convinced that the struggle against this serious scourge is a 
moral imperative, a response to a public health problem, and, 
most of all, an issue of national security.''
    The Committee is encouraged by the program outlined by 
President Samper. However, concerns resulting from the past 
year's performance underlie the amendment adopted by the 
committee. A review of these concerns is as follows: (1) In 
1994, the Government of Colombia did not take significant 
actions to dismantle drug cartels, capture drug kingpins of the 
Cali cartel, or reverse the influence of drug-related 
corruption on the political system of Colombia; (2) The 
political and judicial systems of Colombia continue to confront 
problems of drug-related corruption, which contributes to an 
environment in which honest officials face enormous 
difficulties and the fear of physical harm to themselves and 
their families if they maintain their integrity against the 
drug traffickers; (3) The plea-bargaining system in Colombia 
has been inappropriately applied, allowing major drug 
traffickers to submit to judicial authorities and receive 
lenient sentences rather than encouraging low-level criminals 
to provide evidence against leaders of criminal organizations; 
(4) As currently applied, the plea-bargaining system in 
Colombia has allowed at least 33 percent of those convicted of 
drug-related offenses not to serve prison time for their 
crimes, leaving, in the committee's view, law-abiding citizens 
virtually unprotected against the drug traffickers and leading 
the Chief Prosecutor of Colombia to state that the judicial 
process ``results in virtual impunity [for drug traffickers]''; 
(5) Colombia remains a significant center for money-laundering 
activities; (6) There continue to be questions about the 
influence of the drug kingpins in the Congress of Colombia (as 
is proved by the investigations currently being undertaken by 
the Chief Prosecutor of Colombia) and whether that same 
influence extends to senior levels of the executive branch of 
Colombia; (7) No senior Colombian government official has been 
prosecuted to date; (8) The Government of Colombia did not 
undertake a meaningful investigation into allegations that 
political campaigns received millions of dollars from the Cali 
cartel or into other allegations of extensive drug-related 
corruption; (9) And, until the recent arrest of Rodriguez 
Orejuela that many elements of the Government of Colombia had 
not demonstrated sufficient political will to move against 
major drug traffickers in Colombia.
    The Colombian Government has repeatedly given assurances 
that it considers the war against drugs to be a ``moral 
imperative'' and a ``matter of national security'' requiring 
``an all out effort, without limits.'' The committee supports 
Colombia in its efforts as long as it shows the political will 
to implement the commitments made on July 15, 1994, by 
President-elect Samper and by President Samper in his February 
6, 1995, speech.
    The conditions outlined in Section 506 are taken directly 
from the counterdrug program enunciated by President Samper, 
either in his July 15, 1994, letter to the U.S. Congress or in 
his February 6, 1995, speech. The committee wants assurances 
that Colombia is fulfilling the agenda outlined by President 
Samper. As noted above, while the arrest of Rodriguez Orejuela 
is significant, continued and consistent performance remains an 
open question and for this reason, it is the committee's view 
that specific performance benchmarks are needed to provide both 
the U.S. President and Congress with the means of determining 
Colombian cooperation. If Colombia has the political will to 
combat effectively the traffickers, then the United States can 
be expected to continue its support for those efforts.
    The July 15, 1994 letter from President-elect Samper and 
the February 6, 1995 speech by President Samper follow:

                                                     July 15, 1994.
Hon. Jesse A. Helms,
Ranking, Committee on Foreign Relations, 403 Senate Dirksen Office 
        Building, Washington, DC.
    Dear Senator Helms: Next month I will assume the Presidency 
of Colombia at a very important time in the relations between 
our two countries and in our common struggle against drug 
trafficking. I am well aware of your dedication and interest in 
this issue and I appreciate your efforts in support of 
Colombia. As l prepare my administration for the challenges 
which lie ahead, I wanted to take this opportunity to share 
with you my views about the ways we can strengthen our fight 
against drug trafficking.
    I know, in a very personal way, the kind of threat drug-
traffickers represent to our democracies. The four bullets 
still lodged in my body are a constant reminder of the 1989 
Cartel attempt to assassinate me at Bogota International 
Airport. I was lucky, unlike many of my compatriots who have 
fallen victim of the brutal violence the cartels have wreaked 
in my country.
    Once again, we are the target of their diabolic 
machinations. The taping of telephone conversations between a 
Cali Cartel leader and a journalist known to be on the Cartel's 
payroll revealed their frustrated efforts to infiltrate the 
campaign organizations of Colombian presidential candidates.
    I was perfectly aware of this threat when I entered the 
Presidential race. That is why I established an independent 
moral ombudsman in my campaign. That is why my campaign books 
and records have always been open to public scrutiny. I also 
expelled several sympathizers when it became evident that they 
were not up to our rigid ethical standards. We rejected several 
contributions because of their unclear or obscure origin. That 
is why I am completely confident that my campaign was 
successful in rejecting drug traffickers undercover efforts to 
spread their corrupting influence. Nevertheless, I have called 
for a special investigation to carefully examine all of these 
issues and will take further action as needed to protect the 
integrity of my government.
    Those who thought that the drug war was over with the 
destruction of Pablo Escobar's organization were wrong. We are 
entering what could be the last but decisive phase of the drug 
war. The cartels know that their campaign of terror and 
intimidation has failed. Nevertheless, they will try to regain 
the ground lost during the past years. The Cali Cartel will 
rely on powerful weapons of choice: violence and fear, bank 
accounts, legal loopholes, computer networks and corruption.
    Today, the task is much more complex and the international 
community has to readjust its strategy, sharpen its skills and 
develop new legal and institutional tools. Starting on the day 
of my inauguration, I will aggressively seek to secure the 
tools we will need to win, both at home and abroad. I invite 
the United States to join Colombia in leading this effort.
    First, we will continue doing what we have done 
successfully: vigorously applying all our law enforcement 
resources to investigate, track and put in jail the drug lords 
and their accomplices. We know who the bosses of the Cali 
Cartel are and we will capture them. To achieve that goal we 
need a continuous commitment from the United States in terms of 
technical support, training, intelligence and evidence sharing. 
We must establish a high-level bilateral commission to 
permanently evaluate our cooperation, improve its performance 
and promptly overcome any problem or obstacle.
    My administration will accelerate the reform of Colombia's 
penal code, increasing the penalties for drug traffickers and 
removing the loopholes in our plea bargaining system. We will 
not tolerate leniency.
    Drug traffickers failed in taking over our democracy 
through terrorism and assassination. Now they want to destroy 
it through infiltration and corruption. They will not succeed. 
An ``elite corp'' of investigators will be created to track 
down corruption and send the political cronies of the cartels 
to jail and we will present to Colombia's Congress stringent 
anticorruption legislation. Additionally, we will introduce new 
legislation to strengthen our laws against money-laundering, 
that should be enforced with the support of a United States-
Colombian financial crime task force, conformed by our best 
prosecutors and experts.
    Equally important, we will urge the U.S. Congress to 
establish mandatory targets for the reduction of domestic drug 
consumption and to provide the resources needed to achieve 
those targets.
    Our two countries cannot solely bear the burden of the 
global war on drugs. Consequently, my administration will work 
towards the enactment of the following initiatives:
          The creation of a Caribbean Basin multilateral 
        antinarcotics force.
          Joining current radar capabilities in a Hemispheric 
        network to track trafficking activities.
          The implementation of a global export monitoring 
        system to impose strict controls on the flows of 
        precursor chemicals, crucial to drug production, as 
        well as assault and automatic weapons used by cartel 
        hit-men.
          The adoption of a new Inter-American convention to 
        ban financial safe havens in the hemisphere. Drug 
        traffickers cannot be allowed to enjoy the benefits of 
        their ill-gotten gains.
    These are concrete initiatives I will launch August 7, the 
day of my inauguration. I hope the United States will choose to 
help Colombia win the drug war instead of being paralyzed by 
the drug lords' disinformation campaign. I invite the United 
States to redouble its faith in the determination and courage 
of Colombians by joining us again in the difficult battles that 
lie ahead.
    My administration looks forward to working with you on 
these issues and others of interest to both our countries.
            Sincerely,
                                 /s/ Ernesto Samper-Pizano,
                                       President-elect of Colombia.
   Speech by Dr. Ernesto Samper Pizano, President of Colombia at the 
 Presentation of the Policy Against Drugs--Santafe de Bogota, February 
                                6, 1995

    I wish to take the opportunity, on the occasion of the 
appointment of the Manager of the Illicit Crops Alternative 
Development Plan, to outline the Program of the War Against 
Illicit Drugs that my Administration will carry out in the 
years ahead. At the same time, I also wish to inform you about 
what we have already achieved in the first few months of my 
Administration.
    Colombia has been seriously engaged for several years in 
the war against drug trafficking. Many of our countrymen have 
fallen in this battle, and the economic price we have had to 
pay has been very high, requiring us to postpone other 
important needs and make great sacrifices.
    We are fighting this battle and we will continue fighting 
because we are convinced that the struggle against this serious 
scourge is a moral imperative, a response to a public health 
problem, and, most of all, an issue of national security.


                          an integrated policy


    The challenge posed by drug traffickers demands an 
integrated policy. We cannot continue a cycle of action and 
reactions. This leads to doubt and uncertainty about the 
effectiveness of what we are doing. My Government is committed 
to an integrated policy that will be led and supervised 
directly by the President of the Republic.
    The new policy's components are as follows:
1. Crop Eradication
    Unfortunately, Colombia has become a coca producing 
country: 14 percent of the land under coca cultivation 
worldwide is in our country.
    Between 1993 and 1994, the number of hectares under 
cultivation increased 13 percent.
    We will eradicate the coca and poppy crops. We will take 
advantage of the fact that most of these crops are grown for 
commercial reasons and are not for traditional use, as in other 
neighboring countries.
    We have begun ``Operation Radiance'' that will destroy all 
existing illicit crops in the country in the next two years. 
The target for this year is 44,000 hectares.
    The Government will be especially careful to ensure that 
these operations cause the least adverse social and 
environmental impact.
    Those who criticize spraying operations often forget that 
the worst ecological damage is being caused by those who are 
destroying our natural reserves to grow illicit drugs. Two and 
a half hectares of forest are destroyed in order to plant one 
hectare of illicit crop, at the expense of approximately 
180,000 hectares each year. If production continues like this, 
according to U.N. calculations, before the end of the century 
Colombia will have lost one-third of its tropical rain forest.
2. Alternative Development Plan
    The objective of the Alternative Development Plan that we 
are announcing today is to provide an alternative means of 
living for the 300,000 small coca growers.
    And, simultaneously to ,develop preventive programs in 
other areas of the country which are abandoned and could become 
areas for producing new crops. We do not want confrontations to 
happen again like the ones in Guaviare and Putumayo last year.
    I have requested the Solidarity Network to institute 
programs in the most sensitive areas so that government 
programs will begin work before the drug traffickers arrive.
    The Plan will provide better roads, health, education and 
working conditions to small farmers in isolated areas.
    Likewise, with the assistance of government programs, the 
trading and marketing of substitute crops will begin.
    The Plan will duplicate substitution programs that have 
been successful in other places.
    In order to finance this ambitious crop substitution 
program, we have a US$150 million budget which we hope to 
double with international assistance.
    My goal is to eliminate all illicit crops by the end of my 
term in office.
3. Industrial Production of Drugs
    In addition to coca cultivation, we are also a drug 
producing country. To eliminate production, we will attack the 
infrastructure used for the processing of drugs, such as 
laboratories, importation of processing chemicals, and vehicles 
used to transport drugs.
    With the use of the reinstalled radar system in the South, 
we will interdict the entry of coca paste, the essential raw 
material for the production of cocaine.
4. Distribution
    Colombia will take strong actions to destroy the internal 
systems for the distribution and export of drugs through the 
following programs:
          Investment in technology to improve the control 
        capacity of airports, waterways and seaports.
          Build a coast guard base on San Andres Island with 
        resources already allocated in the 1995 and 1996 
        budgets, that will control all air and sea traffic 
        arriving and departing from the island.
          Improve the airplane interception system through the 
        purchase of detectors, aerial platforms, and electronic 
        intelligence gathering equipment.
5. Money laundering
    Recent estimates show that profits from drug trafficking 
can reach nearly US$500 billion a year, which is ten times 
Colombia's gross national product.
    Most of these funds are ``laundered'' through world 
financial markets. It is very important that controls be 
established in each country as well as at the international 
level.
    If we allow the income produced by drugs, 75 percent of 
which is held in international financial centers, to be 
``recycled'' into legitimate businesses, we will never be able 
to end drug trafficking.
    At the hemispheric summit called by President Clinton and 
held in Miami, Colombia suggested that the countries of the 
region hold a convention to consider a War against Money 
Laundering. This initiative was received with enthusiasm. The 
organizational details of this convention will be spelled out 
during the first quarter of 1995.
    On the domestic front, with the support of the Attorney 
General's Office, the Banking Superintendency, the DIAN (tax 
and national customs department), and the Stock Market 
Superintendency, we will act more forcefully to confiscate 
profits from illicit enrichment. We have already proposed 
changes in the law to give my Government the necessary powers 
to carry this out.
6. The rise of domestic consumption
    Colombia is at risk of becoming a drug consuming country, 
according to the figures during the last few years.
    We will strongly fight against any increase in drug use, 
particularly among our youth.
    The Government's action in this regard will be directed at 
drug prevention, rehabilitation, special attention to 
individuals that are vulnerable to becoming drug users, and a 
massive education effort through the media and education 
centers, under the coordination of the Youth Vice-Ministry, on 
the harmful effects of drug use.
7. Law enforcement and administration of justice
    The ``Surrender to Justice'' policy has become an open door 
to impunity because of inadequate convictions and sentencing by 
certain judges and prosecutors.
    Its implementation included minimum sentences and granted 
maximum benefits.
    We are going to reformulate the policy, so that turning 
oneself in is no longer perceived as a way to avoid 
prosecution.
    We know that criminals will not turn themselves in if we do 
not maintain pressure on them. We will pursue them until either 
we catch them or they surrender.
    We are convinced that the new policy, with international 
judicial cooperation, will enable us to successfully fight 
against criminal cartels.
8. Changes in justice administration
    Those who think that all these changes require basic reform 
of our justice system are right. The battle against drugs must 
be fought within the rule of law. With our current weak 
judicial system and inefficient criminal policy, we will 'not 
be able to subject organized crime to the laws and justice of 
the State.
    A Justice Development Plan, with allocations of around $500 
million, will make the administration of justice more 
effective.
    It is the intention of my Government to modernize the 
justice system to include a new program to find ways to defeat 
organized crime, especially kidnappers and drug cartels.
9. Prosecution of cartels
    The Government has the clear intention to pursue, 
apprehend, prosecute, and convict drug traffickers. We are 
actively working to achieve this goal as soon as possible. To 
obtain it, we will improve our intelligence gathering 
capabilities against drug cartels with technical assistance 
from various foreign governments, starting, of course, with 
help from the Government of the United States.
10. International responsibility
    It is clear that our objectives cannot be fulfilled 
entirely without more help and support from the international 
community. Colombia's efforts will have little impact on 
international narco-trafficking--
    If the rising levels of consumption do not decrease;
    If the control of air and sea traffic is not intensified;
    If progress is not made to control international money 
laundering activities; and,
    If the sale of precursor chemicals is not reduced.
    Colombia will be alert to the international achievements on 
each of these issues while maintaining its own responsibility 
to combat the drug problem.
    It is not a matter of unloading one's responsibility onto 
others. It is simply a matter of understanding that the 
complexity and seriousness of the drug trafficking problem are 
so extensive that its solution requires everyone's 
participation, with no exceptions nor excuses.


                                results


    Now let me review the results obtained in the first few 
months since we began this integrated program.
    During the first months of my administration, until 
December 1994:
          1. 6,950 hectares of illicit crops were eradicated, 
        double the amount from the same period last year.
          2. 18,416 kilos of cocaine were seized, an increase 
        of 428 percent compared to the same period last year.
          3. 20,200 kilos of coca paste was seized, 782 percent 
        more than the same period the year before.
          4. 194 cocaine laboratories were destroyed.
          5. 530,000 gallons of fluid and 213,000 kilos of 
        solid chemical precursors were seized, up from 219,000 
        gallons and 108,000 kilos seized the previous year.
          6. 940 people linked to drug trafficking activities 
        were arrested, of them 59 were foreigners and 5 were 
        extradited.
          7. Special Joint Command operations, whose basic 
        responsibility is to pursue the heads of the drug 
        trafficking cartels, were doubled.
    It is clear that these statistics indicate progress in the 
eradication, capture, and interdiction campaign that we expect 
to continue.
    More than that, during the first six months of my 
Government:
          1. A disciplinary emergency was declared for the City 
        of Cali police. More than half of the officers were 
        dismissed.
          2. The National Police Anti-Corruption Unit was 
        created.
          3. The United Nations Convention Against Illicit 
        Traffic in Narcotic Drugs and Psychotropic Substances 
        was ratified.
          4. Thanks to the action of the National Government 
        and the cooperation of the political parties, we were 
        able to defeat a legislative proposal that would have 
        greatly weakened the legal barriers to illicit 
        enrichment.
          5. Money laundering was classified as a crime and 
        national legislation has been drafted and submitted to 
        Congress as part of the anti-corruption statute, which 
        will soon be passed by Congress.
          6. A budget of $150 million per year was allocated 
        for the next 3 years for the alternative development 
        plan we are presenting today.
          7. The Attorney General's Office was reorganized to 
        make it more effective in the fight against drug 
        trafficking.
          8. The Security Administration Department [DAS] was 
        reorganized in order to improve the professional 
        capabilities to combat organized crime.
          9. Prison Emergency was declared in order to control 
        highly dangerous prisoners, to clean up the areas 
        surrounding maximum security prisons, and to improve 
        performance of prison guards.
          10. The Surrender to Justice Policy Study Commission 
        was created by decree No. 159, 1995, in order to study 
        and report on sentences and benefits adjustments, as 
        well as to suggest any other reforms to the policy by 
        March 6.


                              conclusions


    The Government of Colombia has been active for several 
years in the struggle against drug trafficking.
    My Government reiterates its commitment to continue our 
efforts as I have described above.
    The country has an excellent team to undertake this program 
including: The Attorney General of the Nation, the Ministers of 
Defense and Justice, as well as the DAS Director and the 
National Police Director, who have been working coherently and 
effectively since the beginning of my administration in this 
struggle against drugs.
    In the development of this program, Colombia has had the 
cooperation of several foreign governments, among them, the 
United States Government.
    We trust that the policies and the facts presented here, 
together with the achievements of my predecessor's government, 
will renew the confidence that has characterized the relations 
between our two countries over the years.
    Anything other than a strong bilateral relationship based 
on confidence would weaken the joint efforts we have undertaken 
and would only benefit the drug cartels' interests.
    Colombia accepts international cooperation to achieve its 
antidrug objectives, but only after acknowledgment of its 
sovereign right to formulate this policy on its own.
    Over the years, during many administrations, we have never 
accepted any type of conditions from abroad.
    I am optimistic that in the near future we will defeat the 
scourge of narco-trafficking.
    The Colombian people deserve a better international image 
than that created by organized crime.
    We deserve to be known as a country that respects the law.
    We deserve to be judged on the basis of the majority of our 
hard working citizens who love their country, who fight for its 
progress, and who desire to leave their children the 
possibility of a life led with dignity.
    To achieve this, we all have to make a commitment to fight 
against violence, beginning with narco-trafficking, which has 
plagued us like a curse.
    We do not want any more heroes or martyrs buried in our 
cemeteries. Therefore, we must and we will bring crime and 
violence under control.
    As President, I am sure that this would have been the wish 
of the 4 Presidential candidates, the 23 magistrates, the 63 
journalists, and the 3,000 policemen who in the last 10 years 
lost their lives fighting narco-trafficking.
    In their memory we will overcome future difficulties. We 
are working very hard on this problem and we will continue to 
do so. Thank you very much.
Section 507.--Report on Israeli debt

    Section 507 requires an annual report to Congress by the 
Secretary of State itemizing all held and guaranteed debt owed 
by the Government of Israel to United States public and private 
financial institutions, the maturity of loans and amounts of 
interests payments, and information explaining what it could 
cost the United States to cancel Israel's debt.
    Section 101(i) of P.L. 99-190 exhorts the United States 
Government to provide enough assistance to Israel to cover 
interest payments on all Israel's debts to the United States. 
Despite that provision, several attempts by this committee to 
ascertain the exact extent of Israeli debt, including 
contingent liabilities to the United States, met with little 
success. This information is sought in the name of good 
governance and not with a view to highlight a particular 
nation's debt burden to the United States.

Section 508.--Report on involvement by senior Mexican Government 
        officials in illegal drug trafficking

    Section 508 requires a one-time report by the President of 
the United States providing all information available to the 
United States Government with respect to the involvement, since 
March 1, 1991, of senior Mexican Government officials, their 
relatives, and close associates, in illegal trafficking in 
controlled substances (as defined in section 102(6) of the 
Controlled Substances Act (21 U.S.C. 802(6)).
    The committee is concerned about continuing revelations of 
corruption within the senior levels of the Mexican Government. 
The committee notes that these allegations involve officials 
from previous Mexican Governments and not that of President 
Zedillo, who took office in December 1994.
    For instance, in one case, there are allegations linking a 
former Deputy Attorney General with both drug trafficking and 
the coverup of his own brother's assassination. The committee 
is also concerned that United States and Mexican law 
enforcement officials believe that drug kingpin Juan Garcia 
Abrego routinely expends $40-50 million a month in bribes to 
senior Mexican Government officials.
    The committee also has heard a number of reports from 
United States counterdrug and law enforcement officials of 
corruption within Mexican law enforcement agencies. One 
instance occurred in the summer of 1994, when a jet loaded with 
an estimated 10 tons of cocaine (worth more than $200 million) 
landed in Sierra Madre, Mexico. Only 2.5 tons were recovered, 
and it is alleged that members of the Mexican Federal police 
stole the rest of the cargo. Furthermore, Judicial Police 
personnel are allegedly involved in 19 drug organizations and 
kidnaping rings operating in the country. The aforementioned 
are but a few examples of allegations of official corruption 
that underlie the committee's concern about the corrosive 
impact of corruption throughout the Mexican Government.

Section 509.--Prohibition on antinarcotics assistance to Burma

    Section 509(a) prohibits the provision of assistance to the 
State Law and Order Restoration Council [SLORC] to support 
efforts to combat illicit narcotics production and trafficking 
in Burma. The prohibition applies to funds made available by 
this act of any other act.
    Section 509(b) provides for two exceptions for which the 
prohibition on antinarcotics assistance funding would not 
apply: one, it does not apply to the provision of assistance 
for United States Government-funded crop substitution projects 
funded through nongovernmental organizations in areas 
controlled by a Burmese ethnic minority and two, it does not 
apply to antinarcotics training conducted by any agency of the 
United States Government, as long as the training does not 
involve the transfer of any equipment to the Burmese. It is the 
committee's understanding that these two activities have been 
agreed to through a series of interagency discussions regarding 
the future of United States-Burma policy and the policy of 
providing antinarcotics assistance to Burma, in general.
    Section 509(c) prohibits funding from this act or any other 
act for the provision of intelligence information to the 
Burmese regime, the State Law and Order Restoration Council.
    The executive branch is in disagreement over the future of 
United States-Burma policy, though the discussion is 
particularly intense regarding the provision of antinarcotics 
assistance to Burma. The President rescinded antinarcotics 
assistance programs to Burma in 1990. Since then, certain 
elements of the executive branch have continued to recommend 
resumption of this assistance. This assistance has been 
recommended to include the provision of closed-communication 
police radios and trucks. The committee contends that the 
provision of any dual-use equipment to one of the most brutal, 
repressive regimes in the world would be detrimental to both 
United States interests in the region and to the Burmese 
people.
    The provision of assistance of this sort is troubling for a 
number of reasons: (1) The Burmese regime has signed 10-year 
truce agreements with the largest drug traffickers in Burma. 
(2) The Burmese regime has purchased over $1.2 billion in 
military equipment from the Chinese in the last 2 years. If the 
regime were serious about eradicating drug production, that 
money could have been well-spent on such an effort. (3) The 
United States has information suggesting that the Burmese 
military in control of the government is rife with narcotics-
related corruption. The provision of assistance or of 
intelligence information to the regime could then be used when 
and if the regime determines it is in its interest to do so, 
rather than on every case for which we transfer intelligence 
gathered by U.S. sources and methods. (4) The provision of 
antinarcotics assistance to the Burmese is a means to an end 
for the Burmese regime. Every year the President is required to 
certify to Congress, in accordance with section 490 of the 
Foreign Assistance Act of 1961, on the countries that have 
cooperated fully with the United States, or taken adequate 
steps on their own, to achieve full compliance with the goals 
and objectives established by the 1988 U.N. Convention Against 
the Illicit Traffic in Narcotic Drugs and Psychotropic 
Substances. If the President were to certify that Burma had 
made progress on this front, United States Executive Directors 
at international financial institutions would be able to vote 
in support of development assistance for Burma.
    The Burmese regime is not serious about its desire to 
eradicate opium production. The provision of any assistance or 
any intelligence information will be used to further the 
regime's interests, not the interests of the United States.
Section 510.--Clarification of restrictions under section 620E of the 
        Foreign Assistance Act of 1961

    Section 510 amends section 620E(e) of the Foreign 
Assistance Act of 1961, as amended. Section 510(1) strikes the 
restrictions on all assistance to Pakistan and insert a 
restriction on military assistance in its stead. Section 
510(1)(E) adds several sections to section 620E(e) of the 
Foreign Assistance Act, including: (1) a paragraph which 
specifies that prohibitions on military assistance to Pakistan 
do not apply to any assistance provided for the purposes of 
international narcotics control, military to military contacts, 
training or humanitarian assistance, peacekeeping, multilateral 
operations or antiterrorism activities; (2) a waiver of storage 
costs for military equipment not delivered to Pakistan and 
authorized repayment of those costs; (3) authorization for the 
return of Pakistani owned, unrepaired military equipment sent 
to the United States; (4) a sense of Congress statement 
relating to United States policy toward South Asia; and (5) an 
enhanced reporting requirement under section 620F(c) of the 
Foreign Assistance Act of 1961.
    The United States friendship with Pakistan dates from 1947, 
soon after Pakistani independence. Since then Pakistan's 
cooperation with the United States has been remarkable: 
Pakistan stood with the United States throughout the cold war 
against Soviet totalitarian expansionism; Pakistan has been in 
the forefront of U.S.-initiated United Nations peacekeeping 
operations; and Pakistan has cooperated extensively with the 
United States in counterterrorism, providing critical 
assistance in the apprehension and swift extradition of Ramzi 
Ahmed Yousef, the alleged mastermind of the terrorist attack on 
the World Trade Center in New York City.
    For much of the last two decades, Pakistan has faced a 
nuclear threat from India. India's nuclear program, initiated 
in response to the threat perceived by China's development of a 
nuclear weapon, and three wars fought between the two 
countries, created the incentive for Pakistani pursuit of a 
nuclear program. The United States provided conventional 
military assistance to Pakistan, in part to discourage the 
development of a nuclear program. In October 1990, the 
President was unable to certify under section 620E(e) of the 
Foreign Assistance Act of 1961 as amended (known as the 
``Pressler Amendment'') that Pakistan did not possess a nuclear 
explosive device, and United States assistance to Pakistan was 
ended.
    The Pressler restrictions required a cut-off of all United 
States assistance to Pakistan, including assistance to United 
States companies doing business there. However, this 
legislation has not proven to be an effective tool of United 
States non-proliferation efforts in South Asia. In recognition 
of this, President Clinton called for a review of the Pressler 
Amendment on April 11, 1995.
    After careful and extensive consideration, the committee, 
on a vote of 16 to 2, agreed to modify the existing 
prohibitions on United States assistance to Pakistan under 
section 620E(e). The provision included by the committee 
specifically exempts from restrictions all assistance provided 
for bilateral international narcotics control activities, 
military-to-military contact, humanitarian assistance, 
peacekeeping and counterterrorism assistance.
    The committee also clarified that the prohibition shall 
only apply to military assistance. Currently, the State 
Department has interpreted the Pressler amendment to include 
all United States assistance and sales. The committee is aware 
that certain aid, such as antiterrorism assistance, and certain 
sales of United States goods are warranted and should be 
encouraged. For example, equipment that assists in confidence 
building measures between Pakistan and India should not be 
prohibited. Such items would include border surveillance 
equipment, radar, radar warning receivers, etc. Items such as 
these not only promote border security and help prevent 
surprise attacks, but also prevent accidental incursions and 
incidents that could escalate into significant confrontations. 
As with sales of military and non-military items to India, 
sales of non-military equipment to Pakistan would be made on a 
case-by-case basis.
    Notwithstanding President Clinton's commitment to resolve 
the outstanding issue of $1.4 billion worth of equipment that 
Pakistan bought, but that has not been delivered, the 
administration continues to investigate possible solutions and 
has yet to recommend a course of action. The committee 
generally agreed that some resolution of this issue is 
important, but took no action pending an administration 
recommendation.

Section 511.--Statement of policy and requirement for report on oil 
        pipeline through Azerbaijan, Armenia, Georgia, and Turkey

    Section 511 states that it is the sense of the Senate to 
support construction of an oil pipeline through Azerbaijan, 
Armenia, Georgia, and Turkey. The section also requires a 
report analyzing potential routes for construction of the 
pipeline. The report shall include a discussion of the 
advantages and disadvantages for different routes, including: 
(1) the amount of oil to be transported along each route of the 
pipeline; (2) the cost of constructing the pipeline; (3) 
options for commercial and public financing of construction of 
each route of the pipeline; and (4) the impact on regional 
stability of the pipeline along each route.
    The oil-rich Transcaucasus region that stretches between 
the Southern border of the Russian Federation and Iran is of 
great geostrategic interest to the United States. Development 
of an oil pipeline through Azerbaijan, Armenia and Turkey or 
Georgia would provide the countries in the Transcaucasus with 
economic access outside Russian or Iranian control. The 
committee believes that such a pipeline would help ensure that 
Armenia, Azerbaijan and Georgia remain strong and independent 
nations while simultaneously providing the United States with a 
major source of petroleum outside of the Persian Gulf.

Section 512.--Reports on eradication of production and trafficking in 
        narcotic drugs and marijuana

    Section 512 requires the President to submit a semiannual 
report to Congress on the progress made by the United States in 
eradicating production of and trafficking in illicit drugs. The 
report shall be submitted in unclassified form with a 
classified annex, if required.
Section 513.--Reports on commercial disputes with Pakistan

    Section 513 requires the Secretary of State, in 
consultation with the Secretary of Commerce, to report 30 days 
after the bill's enactment, and every 90 days thereafter, on 
the status of disputes between the Government of Pakistan and 
United States persons with respect to cellular 
telecommunications and on the progress of efforts to resolve 
such disputes. The requirement to submit the report shall 
terminate upon certification by the Secretary of State to 
Congress that all significant disputes between the Government 
of Pakistan and United States persons with respect to cellular 
communications have been satisfactorily resolved.
    In other sections of this bill, the committee broadened the 
Pressler amendment to allow, among other things, for United 
States trade and investment programs in Pakistan. However, the 
committee believes that United States companies should enjoy a 
friendly business atmosphere in Pakistan, without which further 
development of economic relations will be difficult.

Section 514.--Nonproliferation and disarmament fund

    Section 514 authorizes $25 million for each of the fiscal 
years 1996 and 1997 for the Nonproliferation and Disarmament 
Fund [NDF]. The NDF supplements United States diplomatic 
efforts to halt the spread of both weapons of mass destruction 
and advanced conventional weapons, their delivery systems, and 
related weapons and their means of delivery.
    Under authority provided in section 504 of the Freedom for 
Russia and Emerging Eurasian Democracies and Open Markets 
Support Act of 1992 (Freedom Support Act), significant 
accomplishments in furthering these nonproliferation and 
disarmament goals have been made. The NDF has, for example, 
assisted in the purchase of unsafeguarded highly enriched 
uranium from Kazakhstan, the destruction of Hungarian SCUD 
missiles, and work on deploying seismic arrays in Egypt and 
Pakistan necessary to test a global network to verify a 
Comprehensive Test Ban Treaty.
    The NDF seeks bilateral and multilateral project proposals 
that dismantle and destroy existing weapons of mass 
destruction, their components and delivery systems, that 
strengthen international safeguards, and that improve export 
controls and nuclear smuggling efforts.
    Beginning in fiscal year 1996, the NDF will assume 
responsibility for export control assistance to the Newly 
Independent States [NIS]. This assistance has been provided by 
the Department of Defense in earlier legislation authorized 
under the Nunn-Lugar Comprehensive Threat Reduction Program.
    The committee believes the NDF is an important element in 
achieving the high priority national security and foreign 
policy goal of slowing and reversing the proliferation of 
weapons of mass destruction and advanced conventional weapons.

Section 515.--Russian nuclear technology agreement with Iran

    Section 515 expresses the sense of Congress regarding 
Russia's nuclear agreement with Iran. The Committee is 
profoundly concerned about an agreement between Russia and Iran 
to sell nuclear power reactors to Iran. It is the sense of this 
Committee that the Russian Federation should be strongly 
condemned if it continues a commercial agreement to provide 
Iran with nuclear technology which would assist that country in 
its development of nuclear weapons. Moreover, if such a 
transfer occurs, Russia would be ineligible for assistance 
under the terms of the Freedom Support Act.
    During the May 1995 summit in Moscow, Russian President 
Yeltsin was asked by President Clinton to cancel the reactor 
sale to Iran. President Yeltsin did not halt the sale, but 
instead cancelled the Russian sale of a gas centrifuge to Iran 
and halted the training of 10 to 20 Iranian scientists a year 
in Moscow.
    Iran is aggressively pursuing a nuclear-weapons acquisition 
program. The Central Intelligence Agency stated in September 
1994 that Iran probably could, with some foreign help, acquire 
a nuclear weapons capability within 8 to 10 years. Iran is 
receiving that foreign help from Russia and China. 
Specifically, China is helping Iran build a nuclear research 
reactor, and in April it concluded a deal to sell Iran two 
light-water reactors. Pakistan, a country with its own 
significant nuclear weapons program, has in the past provided 
key technical assistance to Iran.
    The Iranian military buildup in the Persian Gulf is also a 
source of serious concern. Iran has acquired as many as 30 MiG-
29's out of a reported deal with Russia for 50 of these modern 
combat jets, and Russia has also sold Iran sophisticated air-
to-air missiles to arm these aircraft. Iran has received 
numerous surface-to-air missile systems from both Russia and 
China. Iran's submarine force consists of two modern Russian-
made Kilo-class submarines, and a third is expected to be 
delivered. Russia also provided Iran with sophisticated 
torpedoes for these subs. In addition, Poland is going ahead 
with the planned sale to Iran of over 100 T-72 tanks, and Iran 
has also taken delivery of several hundred other T-72's from 
Russia.
    Iran has demonstrated expansionist aims within the Persian 
Gulf, and has asserted control over the Persian Gulf island of 
Abu Musa, previously shared with the United Arab Emirates. Iran 
also has moved modern air defense missile systems, tanks, 
additional troops, artillery, and surface-to-surface missiles 
onto islands in the Persian Gulf.
    Iran has opposed the Middle East peace process and 
continues to support the terrorist group Hizballah and radical 
Palestinian groups. Iran also poses a potential long-term 
threat to Russia as well.
    The committee notes the leadership of Senator John McCain 
of Arizona who testified before the Near East and South Asia 
Subcommittee concerning existing conditions in the Freedom 
Support Act that could prohibit the delivery of assistance to 
Russia should the sale be consummated.
Section 516.--Supporting a resolution to the long-standing dispute 
        regarding Cyprus

    Section 516 expresses strong congressional support for a 
resolution to the long-standing dispute on Cyprus. The 
provision discusses in particular the need to find a way of 
breaking the paradigm of deadlock that has so long plagued this 
issue, including consideration of a complete demilitarization 
of the island.
    For 20 years, the political deadlock over Cyprus has 
endured, while elsewhere in the world these same two decades 
have produced the fall of the Berlin Wall, a dissolution of the 
Soviet Union, mutual recognition between Israel and the PLO, 
and a peaceful transition to majority rule in South Africa. The 
committee believes that it is long past time for a similar 
breakthrough for peace in Cyprus.
    This section takes a moderate tone in the hope of bringing 
together all sides to the conflict. But it also calls for 
parties to look at the problem of Cyprus in a radically new 
way. The provision: (1) declares the status quo on Cyprus to be 
unacceptable; (2) welcomes President Clinton's appointment of a 
special emissary for Cyprus; (3) calls on all parties to seek a 
solution based on the U.N. Security Council resolution of July 
29, 1994, which states that any solution must be based on a 
single, federated State of Cyprus that guarantees the political 
equality of both ethnic communities; (4) calls for the 
withdrawal of all foreign troops; (5) states that proposals for 
a total demilitarization of Cyprus would enhance the security 
of all of the Cypriot people and merits support; and (6) urges 
the Security Council and the U.S. Government to consider 
alternative approaches to promote a resolution to the long-
standing dispute, including incentives or sanctions to 
encourage progress.
    While the intent of this provision is to look toward the 
future, the history of this issue must not be forgotten. Two 
decades ago, Turkey's invasion of Cyprus drove more than 
200,000 Cypriots from their homes and reduced them to the 
status of refugees in their own land. More than 2,000 people 
are still missing, including 5 American citizens. The Turkish 
army seized 40 percent of the land of Cyprus, representing 70 
percent of the island's economic wealth. Today, Turkey 
continues to maintain over 30,000 troops on the island, which 
forms the bedrock of the continuing political impasse.
    Last year, in an effort to transform this environment of 
deadlock and distrust, President Clerides of Cyprus offered to 
totally demilitarize the island in the context of a Turkish 
military withdrawal and political agreement to reunify the 
country. The committee notes that in volunteering to entirely 
disband its military forces, the State of Cyprus has expressed 
a willingness to give up this most basic attribute of 
sovereignty in the search for peace.
    The committee emphasizes the importance of continuing to 
press for a negotiated settlement on Cyprus, and the importance 
of never accepting nor becoming comfortable with the status 
quo. It is critical that all parties take a new look at the 
problem of Cyprus and work in good faith to bring this tragedy 
to an end.
            Cypriot Support for Serbia
    The committee is deeply concerned with recent reports from 
the Department of State and the Department of Treasury that 
Cyprus is the source of financial and material support for Serb 
aggression in the former Yugoslavia. These reports indicate 
that Serbian front companies operate in Cyprus for the purpose 
of evading the United Nations embargo against Serbia. 
Allegedly, these sanctions violations are undertaken without 
resistance of the Cyprus Government. Because these revelations 
were made after the foreign aid bill was reported by the 
committee, no effort was made to address this issue in the 
legislation. However, the committee will consider the State and 
Treasury Departments reports prior to floor consideration in 
order to determine whether further legislation redress is 
appropriate.

Section 517.--Report on certain activities of the city of Moscow 
        government

    The committee is concerned by the actions of some Moscow 
government officials that are increasingly undermining the 
effectiveness of United States assistance programs to Russia. 
Specifically, the committee points to repeated reports of 
Moscow city officials, under the direction of the mayor and 
with the full knowledge and compliance of President Boris 
Yeltsin, quietly transferring ownership control to itself in 
several local property projects and joint ventures involving 
U.S. investors.
    If such activities continue, and disdain for rule of law, 
private property rights and investment develops, efforts of 
United States policymakers and taxpayers to create a market-
based economy in Russia are doomed to failure. Further, the 
committee believes that if the report required under section 
517 points to a continuation of such practices, aid to Russia 
should be seriously reviewed, and aid should be reduced in an 
amount equal to the loss incurred by affected United States 
joint venture partners.
Section 518.--Statement of policy on Africa

    Section 518 makes a number of findings and establishes 
policy toward Africa. This section was included to affirm the 
committee's continuing support for Africa in the context of 
transnational threats and U.S. national interest.
    Given that the population of sub-Saharan Africa represents 
less than ten percent of the world's population, its importance 
to American geostrategic or military concerns may not have 
obvious relevance. The committee believes, however, that long-
term development assistance to African nations can complement 
several U.S. foreign policy goals.
    The committee believes that U.S. foreign assistance should 
support the activities of organizations that encourage and 
promote greater U.S. private sector and commercial involvement 
in Africa. The committee recognizes the work of the Corporate 
Council on Africa and the U.S.-South Africa Business Council, 
to name two examples, whose goals are to increase and develop 
the interaction between the United States and African private 
sectors.
    The committee notes the testimony from the Corporate 
Council on Africa in hearings to explore opportunities for 
investment in sub-Saharan Africa. The committee recognizes the 
U.S.-South Africa Business Council's useful service as U.S. 
Secretariat for the Gore-Mbeki Binational Commission on 
Business Development.
    The committee believes that the growth of jobs and new 
enterprises in African countries with sound economic policies 
and good governance will form the foundation for Africa's 
economic development. Fueling growth, new trade and investment 
in Africa has the potential to contribute to the material well-
being and prosperity of Africans. The committee believes that 
profitable U.S. commercial involvement in Africa can create 
jobs and build markets on this underdeveloped continent. To 
this extent, U.S. foreign assistance agencies should meet 
regularly with the U.S. private sector and actively seek their 
input on strategic development initiatives.
    The committee recognizes the importance of public-private 
partnerships in future development activities. The financial, 
managerial and technological resources that the American 
private sector can contribute to economic activities should not 
be overlooked.
    The Agency for International Development, in its fiscal 
year 1996 congressional presentation document, states clearly 
the insignificance of the U.S. export market to Africa. 
Assuming a growth rate of 7 percent over the next 30 years, AID 
expects the total market of all sub-Saharan Africa countries 
will only be equal to the size of the Japanese market today. 
Specifically, section 518 notes that Africa has economic 
potential for U.S. businesses, and with political reforms, may 
open new, albeit limited, export opportunities for United 
States business.
    African nations must be willing and able to participate in 
global efforts to curb narcotics trafficking, halt weapons 
proliferation, and combat the spread of HIV/AIDS and other 
diseases. Further, African nations must commit themselves to 
democracy, free market economies and a respect for fundamental 
human rights. Long-term development assistance can help achieve 
these goals, as well as reduce the incidence of expensive, 
catastrophic disasters later.

                 Applicability of Taiwan Relations Act

    Since the signing of the United States-China Joint 
Communique on August 17, 1982, United States military sales to 
Taiwan have decreased by $20 million every year. United States 
law, the Taiwan Relations Act (Public Law 96-8) specifically, 
states that the U.S. Government ``will make available to Taiwan 
such defense articles and services in such quantity as may be 
necessary to enable Taiwan to maintain a self-defense 
capability.'' The amount of defense articles and services the 
U.S. may supply to Taiwan should be governed first and foremost 
by the defensive needs of Taiwan, a policy well-articulated by 
the Taiwan Relations Act. The committee supports efforts of 
United States companies to sell any military equipment deemed 
necessary to defend Taiwan from threats and reiterates the 
intent of standing United States law. The President and the 
Congress' determination of Taiwan's defense needs shall 
supersede any provision of the Joint Communique of the United 
States and China of August 17, 1982.
    In December 1992, the United States Government approved 
release of the Harpoon missile to Taiwan. Since then, Taiwan 
has bought approximately 38 ship launched Harpoon missiles. In 
June 1994, the Taiwan Government began discussions with 
administration officials concerning the release of the air 
launched version of the Harpoon for the F-16 A/B fighter 
aircraft. An F-16 aircraft equipped with Harpoon missiles would 
give Taiwan the ability to protect maritime approaches.
    The United States Government has a commitment to Taiwan to 
ensure its defensive needs are met. Taiwan has a legitimate 
need for the air launched version of the Harpoon missile.
    Chinese strategic planning and the pace of military 
modernization has undergone a dramatic reversal over the past 
five years, in part enabled by the growing economy. Beginning 
in 1989, the defense budget has increased annually by double-
digit percentages. Estimates of the Chinese People's Liberation 
Army (PLA) military expenditures range from $31 billion to $92 
billion for 1995.
    Abandoning its focus on land power, China has turned its 
attention to its ``strategic frontiers,'' engaging in the 
construction and deployment of increasingly sophisticated 
nuclear and conventional systems designed to enlarge its 
strategic horizons and enhance its power projection 
capabilities, most notably over the Spratly Islands in the 
South China Sea and the Straits of Formosa. To these ends, 
portions of the army and navy have been reconstituted into 
mechanized infantry, airborne, and naval infantry units. Taken 
together with the development of an airfield and anchorage on 
Woody Island in the Paracels, the forward basing of medium-
range strike assets on Hainan Island, the development of naval 
air-to-air refueling capability, and the acquisition of new 
classes of destroyers, amphibious assault craft, and resupply 
ships, provide cause for concern for Taiwanese military 
planners and a strong case for the provision of air-launched 
Harpoon missiles.
    China has taken advantage of the ``buyers market'' in 
relatively sophisticated weapons systems. Beijing has acquired 
two dozen MiG-29 Fulcrums, slightly more than that number of 
Su-27 Flankers, and an assortment of other strike aircraft 
possibly including supersonic bombers. Moreover, the PRC 
produces the MiG-31 Foxhound interceptor under license from 
Russia. Consonant with its desire to modernize command, 
control, communications, and intelligence architecture, the 
country also has indicated interest in acquiring airborne early 
warning aircraft from Russia and Israel. Other likely purchases 
include Kilo diesel submarines, antisubmarine warfare 
helicopters, AA-10 air-to-air missiles, and the R-33E air-to-
air missile. In the long-term, China also may be interested in 
a 25,000-ton Spanish-designed aircraft carrier.
    Given the repeated and closely-spaced nature of PLA 
amphibious and airborne exercises conducted in the vicinity of 
Taiwan since 1993, qualitative improvements in the PRC's 
offensive capabilities fairly demand parallel increases in the 
defensive capabilities of Taiwanese forces. The need for 
modernization of Taiwan's anti-shipping capability is rendered 
all the more acute for four reasons: (1) as Taiwan approaches 
its first direct presidential election; (2) as the U.S. has its 
own in 1996; (3) because Taiwanese air-defense forces still 
rely upon 1950s-vintage F-104's (having not yet taken delivery 
of either United States F-16 or French Mirage 2000 fighters); 
and (4) because a new Chinese leadership may increasingly feel 
enabled and emboldened by growing capabilities and increased 
options. Further, the Chinese Government continues to refrain 
from ruling out the use of force as an option to forcibly 
``reunify'' China and Taiwan, if necessary. The air-launched 
Harpoon has been cleared for release in both Japan and Korea. 
In fact, no international customer cleared for the ship 
launched Harpoon has been denied the air-launched version.
    The committee recommends that the administration favorably 
review future requests for the sale of the air launched version 
of the Harpoon to the Taiwan Air Force.
            United States Relations with Bahrain
    The committee acknowledges the close political, economic 
and security relationship that has existed between the United 
States and Bahrain for almost fifty years, based on shared 
economic and security interests in the Arabian Gulf. The same 
vital interests which drew the United States into the Gulf War 
continue today, and Bahrain stands out among our allies and 
friends in the region for its cooperation and continued 
commitment to the security and stability of the region.
    The committee believes it is in the interests of the United 
States to encourage the Gulf states to provide for their own 
security as a first line of defense against aggression by 
others. The committee also recognizes, however, that unlike the 
other GCC states, Bahrain is not an oil-rich country. Its 
limited resources have been dedicated to improving the economic 
and social conditions of the country, with a lesser priority to 
a small but effective defense force whose needs have been met 
almost entirely through national funds.
    In addition to an expansion of its traditional support for 
the United States Navy, Bahrain today permits the 
prepositioning of strategic defense material and grants access 
to its bases for United States Forces during periods of crisis. 
In these times of diminishing security assistance funding, the 
Committee encourages the administration to examine other, cost-
efficient ways to recognize Bahrain's many contributions to our 
mutual interests and enhance Bahrain's defense posture. The 
committee recognizes that by contributing to the self-defense 
of Bahrain, it also provides a protective umbrella for United 
States Forces stationed in that nation. At the same time, 
United States support to Bahrain's defense forces sends a clear 
signal of continued United States commitment to the security 
and stability of the region.
            Malaysian treatment of migrant Vietnamese
    The committee notes with approval the actions taken by the 
Government of Malaysia in recent years to deal in a responsible 
and humane manner with migrant Vietnamese. There no longer 
appears to be a substantive basis for congressional concern of 
the type expressed in the past regarding Malaysian policy on 
this subject.
           TITLE VI--INTERNATIONAL ORGANIZATIONS AND PROGRAMS

            International Development Association
    The Foreign Aid Reduction Act of 1995 does not authorize 
the Clinton administration's request of $1.37 billion for the 
International Development Association (IDA). Including request 
would have authorized the final year of the IDA-10 agreement.
    IDA is the World Bank's facility that extends low interest 
loans and technical advice to the world's poorest countries. 
IDA provides interests free loans at 40 year terms. Following a 
10-year grace period (in which no principal is repaid 
recipients must repay 2 percent of the credit for 10 years and 
4 percent for the remaining 20 years. Nations are required to 
pay a 0.75 percent service cost over the life of the credit. 
Despite an ever-increasing IDA budget, supporters of IDA defend 
the expenditures by asserting the necessity of these funds to 
avert civil unrest, refugees and food shortages in the poorest 
nations. The record shows that this is simply not the case.
    The committee notes that during the period of 1989 to 1993, 
IDA provided Somalia $143.6 million and Rwanda $287.1 million. 
Certainly IDA funds did not prevent civil war in these 
countries. Further, the committee notes that some of the larger 
recipients of IDA concessional loans are China, which received 
$4.1 billion, and India, which received $5.2 billion, from 1989 
to 1993. China's gross domestic product was estimated to be 
$2.61 trillion in 1993 and India's was estimated to be $1.17 
trillion in 1994. To put these figures into perspective, 
compare these GDP's to that of France, which estimated $1.05 
trillion in 1993. The Committee is highly skeptical of these 
countries' qualification as the ``poorest countries'' in need 
of concessional loans at the expense of the U.S. taxpayer.
    The committee recognizes that ineffective programs that do 
not advance the national interests of the United States must be 
the first to be eliminated in an effort to balance the budget 
by the year 2002. The Committee, therefore, did not authorize 
funding of IDA.
            Enhanced structural adjustment facility
    The Enhanced Structural Adjustment Facility (ESAF) was 
established by the International Monetary Fund (IMF) in 
December 1987, its stated purpose being to support especially 
vigorous structural adjustment programs in poor countries. ESAF 
was enlarged and extended in December 1993. Financial support 
under the ESAF is on concessional terms--an interest rate of 
0.5 percent to be repaid beginning after 5\1/2\-years and 
ending 10 years after disbursement.
    This bill does not fund the Clinton administration request 
of $25 million for ESAF. The committee notes that although the 
IMF calls the first ESAF a ``valuable tool'' in assisting the 
economic performance of low-income countries, its own 
statistics on these countries belie these assertions. For 
example, three of the countries touted by IMF as making 
progress toward external viability--Bangladesh, Ghana, and 
Togo--showed a decrease in Real GDP growth after receiving SAF 
and ESAF assistance. Further, the committee notes that among 
countries which have received assistance under ESAF are war-
torn countries such as Rwanda, Somalia, Liberia and Haiti whose 
economies and infrastructure are in total disarray. No amount 
of money will assist a country divided by civil war to improve 
its economy. Additionally, countries such as Cameroon, cited in 
an April 1995 GAO report about the African Development Bank, 
are uncreditworthy borrowers that required aid packages in 
order to pay loan arrears, and are not appropriate recipients 
of further debt.
    At a time when the United States is faced with severe 
budget restrictions and lacks the resources to grant foreign 
assistance when national interests are not at stake, funding 
for ESAF is clearly not possible.

Section 601.--Voluntary contributions; United Nations Children's Fund

    Section 601 authorizes [$180,000,000] for fiscal years 1996 
and [$180,000,000] for 1997 for voluntary contributions to 
international organizations to remain available until expended. 
This section sets a floor of $103,000,000 to be appropriated 
only for the United Nations Children's Fund (UNICEF) for fiscal 
years 1996 and 1997.
    The committee is deeply concerned with the recent discovery 
of actions by 24 staff members in the Kenya UNICEF office to 
defraud that organization of resources amounting to $8 - $9 
million (of which more than $1 was identified as personal fraud 
by staff members). A January 1995 audit of 1993-94 transactions 
by the Kenya country office identified inadequate management 
oversight coupled with poor staff integrity as significant 
factors in the breakdown. The Committee urges the United States 
to petition the United Nations Inspector General's Office to 
investigate this theft fully, particularly the source of the 
breakdown of management and the potential for similar 
mismanagement in other U.N. organizations.
    The committee supports the efforts of UNICEF to improve the 
plight of children around the globe. The committee will not 
support the notion, however, that the U.N. Convention on the 
Rights of the Child is the appropriate or effective means to 
improve the plight of children. The Committee fears that 
creating yet another set of unenforceable international 
standards will further dilute respect for international human 
rights norms.
    The committee notes the overlap of projects in many of the 
U.N. organizations, including voluntary programs, funded under 
section 601 of this Act. For example, U.N. programs comprise 
numerous environmental organizations such as the United Nations 
Environmental Program (UNEP), the Environmental Fund of UNEP, 
Related Activities of UNEP, the Montreal Protocol Multilateral 
Fund, the International Union for Conservation of Nature, the 
Ramsar Convention on Wetlands, the Intergovernmental 
Negotiating Committee, the U.N. Framework Convention on Climate 
Change, the World Heritage Fund, and the World Meteorological 
Organization/Special Fund for Climate Change. Such redundancy 
compels the Committee to reemphasize the importance of reform 
and consolidation of U.N. organizations as stated in section 
1501 of S. 908, the Foreign Relations Revitalization Act of 
1995, and its accompanying report. Eliminating the overlap by 
reducing the U.N. bureaucracy to two organizations, one to be a 
unified agency for technical cooperation for development and 
the other to be an emergency response mechanism, would reduce 
costs.
    The committee notes the proliferation of multilateral 
environmental treaties and organizations. Although the 
committee recognizes that conserving the global environment is 
in the long term interests of the United States, it does not 
accept that developed countries, and their industry, must 
disproportionately bear the burden of preserving environmental 
interests.
    The committee notes the outcome of the First Conference of 
Parties at the U.N. Convention on Climate Change, including the 
United States, met in Berlin, Germany in March, 1995, and 
committed industrialized nations to reducing greenhouse gas 
emissions, while exempting developing nations from similar 
obligations. This ``Berlin mandate'' imposes further regulatory 
burdens on U.S. businesses beyond the year 2000 while leaving 
industry in developing nations free to engage in production 
without the imposition of similar regulations. These unequal 
obligations effectively subsidize goods produced in developing 
nations and, ironically, encourage those countries to base 
future growth on less costly and higher polluting industry. The 
premise of this mandate runs counter to supposed goals of 
environmental protection.
    This mandate is not based on any econometrics model and 
encourages the worst of all systems. In the end, this policy, 
unwisely agreed to by the United States, will encourage the 
transfer of industry from the United States to developing 
countries, costing the U.S. jobs and the bulk of the 
responsibility for decreasing world-wide pollutants. The 
Committee urges the Administration to reject the notion that 
environmental conservation can be achieved by placing the 
burdens exclusively on industrialized nations and failing to 
provide incentives for developing nations to meet the same high 
regulatory standards.

Section 602.--United Nations Fund for Population Activities

     Section 602 authorizes up to $35 million for the United 
Nations Fund for Population Activities (UNFPA) for fiscal years 
1996 and 1997 from part I of the Foreign Assistance Act of 
1961. None of the funds made available shall be made available 
for activities in China. This sum shall not be made available 
unless UNFPA maintains U.S. funds in a separate account and 
does not commingle U.S. funds with other UNFPA funds. The 
Secretary of State shall report to Congress annually regarding 
the amount of UNFPA funds that will be used in China. If this 
report indicates that the amount of funds UNFPA will use for 
activities in China exceeds $7,000,000, then the amount of 
funds made available for obligation for the remainder of the 
fiscal year shall be reduced by $7,000,000.
    The committee is fully aware that, under China's ``one-
child-per-family'' population control program, women are forced 
to undergo an abortion or sterilization procedure if they 
already have one child. The committee also notes that on August 
6, 1993, AID Administrator, Brian Atwood, sent the Chairman of 
the House Foreign Operations Appropriations Subcommittee a 
letter stating, ``if there are not significant improvements in 
China's population program, the United States will not support 
continued UNFPA assistance to China beyond 1995 when the 
current program ends.'' The committee also notes that UNFPA has 
no intention of ending its association with China's population 
control program. The committee urges the Administration to use 
its voice and financial leverage to force UNFPA to terminate 
its association with China's grotesque population control 
program.

Section 603.--Withholding of U.S. Proportionate Share for Programs of 
        International Organizations

    Section 603 prohibits funds for the United States 
proportionate share of international organization programs or 
projects in Cuba, Iran, Libya, Iraq, North Korea, Sudan, and 
Syria. Withheld funds would be returned to the U.S. Treasury. 
The President would be required to review and report to 
Congress on the amounts of funds expended by international 
organizations for programs and projects in said countries and 
the amount the U.S. contributes to such organizations.
    Section 603(b) requires that unused funds be returned to 
the Treasury. Current law allows these funds to be reprogrammed 
for other foreign aid spending. The committee expects these 
receipts returned to the Treasury to be used for the purpose of 
deficit reduction.

Section 604.--Reports on Voluntary Contributions to International 
        Organizations by all U.S. Government Agencies

    Section 604 amends reporting requirements on voluntary 
contributions to include a justification of the manner in which 
U.S. contributions to international organizations benefit U.S. 
national security or other national interests and the 
anticipated total contribution by the United States for the 
duration of the program.
    The committee questions the impact of many of the programs 
on the national security of the United States. In times of 
tight budget constraints, every foreign aid program--especially 
multilateral programs--must be scrutinized closely to determine 
if the program truly benefits Americans.
Section 605.--Restrictions on funding for U.N. Development Program

    This section would prohibit funds made available for the 
U.N. Development Program (UNDP) for programs and activities in 
or for Burma. This section would also prohibit disbursement of 
all funds for UNDP until the President certifies to Congress 
that UNDP has terminated its activities in and for Burma. 
Section 605(a) withholds 20 percent of the United States 
funding for the U.N. Development Program in fiscal year 1996, 
unless or until the President certifies to Congress that UNDP 
has terminated its activities in Burma. The funds are 
authorized to be made available if the President makes the 
certification. Section 605(b) withholds, from the fiscal year 
1996 United States contribution to UNDP, the amount of funds 
UNDP made available to fund activities in Burma in fiscal year 
1996, unless the President makes a certification under 
subsection (a) that UNDP terminated its activities in Burma in 
fiscal year 1996.
    Section 431(b) of the Foreign Relations Authorization Act 
for fiscal years 1994 and 1995 (P.L. 103-236), the 
authorization act approved by the House and Senate last year 
and signed into law by the President, relates to UNDP 
activities in Burma. The provision, agreed upon by the House-
Senate Conference Committee and then both Houses of Congress 
respectively, allowed $27.6 million in funding for UNDP to be 
made available only if the President certified that: (1) UNDP 
has initiated no new programs and no new funding for existing 
programs in or for Burma since the United Nations Development 
Program Governing Council meeting of June 1993; (2) (UNDP 
programs in Burma) address unforeseen urgent humanitarian 
concerns, or; (3) a democratically elected government in Burma 
has agreed to such programs.'' The Conference Committee's 
intent was to ensure that no new UNDP programs were initiated 
in Burma once the $18 million in programs approved at the 1993 
meeting of UNDP's Governing Council had run their course. It is 
anticipated these programs will have been undertaken before the 
end of this year.
    The administration interpreted the provision in a manner 
consistent with the legislative intent to permit funding of 
projects that had already been initiated. Thus, the President 
was able to certify to the committee on February 15, 1995, that 
UNDP had ``approved or initiated no new programs and no new 
funding for existing programs in or for Burma'' since the 1993 
meeting. The committee disagrees with the administration's 
interpretation of the provision and adds this section to 
clarify the committee's interpretation.
    The duly elected representatives of the people of Burma, 
known as the National Coalition Government of the Union of 
Burma (NCGUB), do not support or agree with any UNDP program in 
Burma. The greatest obstacle to any aid program in Burma is the 
Burmese military regime's control over all humanitarian 
projects. Though the representatives recognize the need for 
humanitarian aid to reach the Burmese people, they also 
recognize that agencies operating through and under the 
auspices of the State Law and Order Restoration Council (SLORC) 
credit the regime and add to its standing in the international 
community.
    Current United States policy towards Burma is one that 
calls for increasing marginalization of the regime, until there 
is further progress on human rights and towards democracy. In 
recent months, the regime has refused to release a Nobel 
Laureate Aung San Suu Kyi from house arrest, as it had 
promised, and has supported the attack and overthrow of the 
largest democratic stronghold in the country. In light of these 
events, among others, the committee remains committed to U.S. 
policy and notes that this provision is both consistent and 
supportive of that policy. This section arises out of a debate 
over a section in the Foreign Relations Authorization Act for 
fiscal years 1994 and 1995.

Section 606.--Replenishment of the Asian Development Bank

    Section 606 authorizes full U.S. participation in the 
fourth replenishment of the Asian Development Bank, including a 
contribution of $13.3 million for each of fiscal years 1996 and 
1997. The committee notes that the United States succeeded in 
negotiating the lowest ever annual payments for the United 
States subscription, while maintaining its position in the Bank 
relative to Japan.
    The committee believes the Asian Development Bank can be a 
cost-effective institution that can serve U.S. economic and 
foreign policy interests. The committee supports the effective 
efforts of the U.S. executive director of the bank to assist 
U.S. businesses in obtaining contracts for ADB projects. In the 
past, modest U.S. contributions to the Asian Development Bank 
have been leveraged to help provide over $4 billion in loans to 
cofinance development projects throughout Asia. The Bank has 
helped to spur the rapidly growing economies of Asia, 
contributing to growth and development in industry, 
agriculture, energy, transport, and communications, and has 
helped to create hundreds of millions of dollars in returns to 
the United States. U.S. firms bid for bank contracts financed 
by the entire pool of donor funding, and the result is 
thousands of American jobs. The committee believes that 
continued modest U.S. contributions to the Asian Development 
Bank will bring benefits to Asians and Americans alike.

Section 607.--Republic of China (Taiwan's) participation in the United 
        Nations

    The committee passed Senate Concurrent Resolution 3 
regarding Taiwan's participation in the United Nations earlier 
this year. During committee consideration of the Foreign 
Assistance Act, the committee adopted this resolution in 
slightly altered form. Section 607 expresses the sense of the 
Congress that the U.S. Government should immediately encourage 
the United Nations to take action by considering the unique 
situation of Taiwan in the international community and adopting 
a comprehensive solution to accommodate Taiwan in the United 
Nations and its related agencies. The committee approved by 
voice vote this provision, highlighting again the importance 
the committee attaches to the United States relationship to 
Taiwan.
    The fact that Taiwan is not currently a member of the 
United Nations and does not have its own seat there are 
subjects of significant concern to the Committee. The 
objections of those opposed to Taiwan's admission to the United 
Nations appear to disregard the precedent established by East 
and West Germany, North and South Vietnam, and North and South 
Korea, all of which have occupied (or continue to occupy) two 
seats in the United Nations prior to reunification.
Section 608.--Republic of China (Taiwan's) participation in the World 
        Trade Organization.

    Section 608 supports severing the link between Taiwan's and 
China's accession to membership in the World Trade 
Organization, citing the fact that Taiwan's economy is advanced 
enough to allow it immediate accession. The committee agrees 
that China's accession should be based on ``sound commercial 
principles'' and the United States should continue to adhere to 
this policy until the Chinese economy is sufficiently advanced. 
In the meantime, Taiwan should be accepted for membership.
    The purpose of the General Agreement on Tariffs and Trade 
(GATT) and the World Trade Organization (WTO) is to enable 
member nations to conduct trade based upon free market 
principles, by limiting government intervention in the form of 
state subsidies, by limiting non-tariff barriers, and by 
encouraging reciprocal reductions in tariffs among members. 
Although China insists that Taiwan's membership in the GATT or 
the WTO be granted only after China becomes a full member of 
the GATT or the WTO, the committee notes that Taiwan has a free 
market economy, is the currently the world's 14th largest 
trading nation, the world's 20th largest GNP, has the world's 
second largest foreign exchange reserves and is the world's 7th 
largest outbound investor.
    China, on the other hand, retains an intricate system of 
tariff and non-tariff administrative controls that 
significantly restrict free market competition and incompatible 
with GATT and WTO principles. Therefore, on a vote of 17 to 0, 
the Committee adopted this section which expresses the sense of 
the Congress that Taiwan's application for membership in the 
GATT and the WTO should be separated from China's and the 
United States should support Taiwan's earliest membership in 
both organizations. The section also states that the United 
States should support the membership of China in the GATT and 
the WTO only after a sound commercial agreement is reached 
between the United States and China and that China's 
application should be reviewed strictly in accordance with the 
rules, guidelines, principles, precedents and practices of the 
GATT and WTO.
            United Nations Voluntary Fund for Victims of Torture
    The United Nations voluntary Fund for Victims of Torture 
provides modest financial grants to treatment programs for 
victims of torture. These programs provide medical and 
psychological services to victims both in countries of refuge 
and in the victim's country of origin. Programs exist in 
California, Illinois, Minnesota, and New York. Most U.S. 
programs receive or are applying for assistance from the 
voluntary fund.
    In 1994, the voluntary fund had $3.7 million to assist 106 
programs in 60 countries. According to estimates by the 
Rehabilitation and Research Centre for Torture Victims in 
Copenhagen, Denmark, the fund is able to assist only a fraction 
of the actual worldwide need for treatment services. Moreover, 
the number of treatment programs worldwide is expected to 
double from 125 in 1994 to about 265 in 1997, and the financial 
need will increase to over $90 million in 1997.
    Therefore, the committee recommends that the administration 
maintain the U.S. contribution to the voluntary fund in fiscal 
year 1996 and fiscal year 1997 at its current level of $1.5 
million. The committee also urges the Department of State to 
undertake active diplomatic activity to encourage other 
governments to increase their own contributions.

         TITLE VII--SPECIAL AUTHORITIES AND GENERAL PROVISIONS

                   Chapter 1--Reporting Requirements

Section 701. Annual allocation reports

    Section 701 amends notification requirements for continuing 
appropriations to make them applicable only to appropriations 
made for a period of 90 days or more.

Section 702.--Report on expropriation of United States property

    Section 702 requires the President to report at the 
beginning of each fiscal year: (1) countries in which a U.S. 
person has an outstanding expropriation claim; (2) the total 
number of claims in each country; (3) the period of time in 
which each such claim has been outstanding; (4) the status of 
each case and efforts made by the United States and the foreign 
government; and (5) each project at the multilateral banks the 
United States has voted against pursuant to section 722 of this 
act, prohibiting assistance to countries that expropriate 
property of a U.S. person.
                     Chapter 2--General Provisions

Section 711.--National interest, economic freedom, and graduation 
        requirements

    Section 711 ensures that U.S. assistance policy include 
U.S. national interest, conditions supportive of economic 
growth, and progress toward graduation.
    Section 711(b) requires the President to include in annual 
congressional presentation documents information regarding how 
U.S. bilateral assistance benefits American national interests, 
what steps recipient nations are taking to limit the size of 
their public sectors and to encourage private growth, and how 
that aid assists developing nations become self-sufficient.
    The United States has provided more than $450,000,000,000 
in economic, military and development aid during the past five 
decades. While a portion of this assistance clearly has been 
provided for U.S. national security interests, more than $225 
billion [CHECK] has been provided in the form of development 
aid. The committee is concerned that many individual 
development projects carried out by AID do not directly benefit 
U.S. national interests. American taxpayers should know how 
their money is being spent overseas and how that assistance 
directly benefits their interests.
    Section 711(b)(2) requires the administration to provide 
information regarding conditions which support economic growth. 
It is a recognition of the potentially destructive impact of 
development aid which has led the committee to require that the 
President report on efforts taken by recipient countries to 
limit the size of their state sector. As countries doing so are 
the candidates for economic growth, the committee expects that 
these will be the countries upon which scarce development 
resources are focused. The congressional presentation should 
alert Congress to situations in which development aid focused 
this way is having a counterproductive affect on free market 
transitions. The committee recognizes that AID currently uses a 
variety of criteria to allocate development aid among 
countries, including a country's ``need'' as determined by 
health and social indicators, and its commitment to policies 
that are judged to be protective of the environment. It is 
essential in the current era of constricting foreign aid 
budgets that development aid be focused to the greatest extent 
possible on those countries which are committed to economic 
freedom, as free market economies are the best means for 
countries to address social needs. No amount of development aid 
will satisfy the needs of peoples living in a country with 
repressive, anti-growth economic policies. These needs can be 
satisfied only through self-generated economic growth.
    Similarly, countries with statist economic policies in 
place will experience environmental degradation, as was 
evidenced throughout the former East Bloc, regardless of the 
amount of development aid they receive for the purpose of 
addressing environmental problems. Many other nations which 
have been recipients of U.S. bilateral and multilateral aid for 
decades, and which have refused to transform statist economic 
policies, find themselves worse off economically than when 
external aid began.
    The task of compiling the technical information required to 
document efforts taken by countries receiving United States 
bilateral assistance to limit the size of their state sector in 
the requested manner is well within the capabilities of the 
State Department. The committee notes a 1995 Agency for 
International Development cable sent to Washington from Managua 
which addresses the criteria used to assess conditions 
supportive of economic growth/economic freedom reported in The 
Heritage Foundation's 1995 Index of Economic Freedom. Many of 
the factors for conditions supportive of economic growth to be 
included in the congressional presentation are already assessed 
in a systematic manner by the Agency for International 
Development, including trade barriers, the protection of 
private property and regulation.
    By including the requested information in the congressional 
presentation, the public will be provided with this valuable 
information in an easily accessible format. This information 
will prove useful to many Americans, including businesses and 
investors who are continually assessing economic conditions 
abroad.
    The information presented to Congress should be 
quantitative and allow for comparisons amongst recipients of 
U.S. development aid. The system of comparison amongst 
recipient countries should be biased towards those countries 
with the greatest degree of economic freedom--i.e., those 
countries with the fewest wage and price controls, the lowest 
tariff levels, the greatest protection of private property, 
etc. should fare best, or be ``ranked'' highest, in this 
comparison. Development aid for too long has been justified in 
congressional presentations merely with rhetoric; the committee 
expects future congressional presentations to provide rigorous 
and quantitative assessments demonstrating how development aid 
is fostering the conditions supportive of economic freedom and 
growth and which lead ultimately to graduation from U.S. 
foreign aid. This information, compiled over time, should allow 
for judgments to be made whether development aid is making an 
actual difference in aiding countries to gain economic self-
sufficiency.
    Section 711(b)(3) requires the administration to provide 
detailed information regarding the amount of military, 
development, and economic assistance provided to other nations 
and the number of years that these nations have received aid. 
The committee is aware that the Executive Branch already 
compiles much of this information and that it should be 
relatively simple to combine this information in congressional 
budget submission documents.
    Many nations have been the beneficiaries of U.S. foreign 
aid for 50 years. Some nations, primarily in Africa, have been 
dependent on American aid since gaining their independence. 
Earlier in this report, a chart showing the nations which have 
received U.S. foreign aid for more than 35 years is provided to 
illustrate the large number of nations which have not graduated 
from U.S. aid. Too often, it appears that development is not a 
means to an end, but is simply viewed as an entitlement. In 
some cases, U.S. aid has taken the form of direct cash 
transfers to foreign nations, which in turn simply apply this 
money to that nations' general budget. This must cease for two 
reasons: the United States is facing its greatest fiscal crisis 
of its 200 year history and dependence on development aid has 
stifled economic growth in the Third World.
    AID recently announced that it intended to close a number 
of overseas missions. Supporters of foreign assistance have 
argued that these closures show that many countries are 
graduating from U.S. foreign aid. But upon closer inspection it 
is clear that AID has chosen to leave many of these nations not 
because they are now economically independent, but because, in 
AID's terminology these nations have not proven to be good 
``development partners''. Also, simply closing an AID post does 
not mean a nation will not continue to receive AID funding. 
Ongoing projects in many of these nations will take years to 
complete and in other instances, regionally funded projects 
will simply replace country projects.
Section 712.--Termination of assistance

    Section 712 rewrites section 617 of the Foreign Assistance 
Act to update authorities to spend funds and provide the option 
to assume obligations of terminated programs. This section 
would leave available funds under the Foreign Assistance Act to 
carry out any program, project or activity for obligations 8 
months after such assistance has been terminated in order to 
wind up such program, project or activity. Once obligated, such 
funds would remain available until expended. This section would 
make funds obligated prior to termination of assistance 
available to meet the expenditures of winding up programs, 
projects, and activities.
    The President would be authorized to adopt as a contract or 
other obligation any contract made with a U.S. or third-country 
contractor to carry out any program, project, or activity of 
assistance under the Foreign Assistance Act that was 
subsequently terminated. Provisions of this or any other Act 
requiring the termination of assistance would not require the 
termination of guarantee commitments entered into before the 
termination of assistance.

Section 713.--Prohibition on assistance to foreign governments engaged 
        in espionage against the United States

    Section 713 prohibits assistance, other than humanitarian 
assistance or assistance for refugees, to any government which 
the President determines is engaged in intelligence activities 
within the United States harmful to the national security of 
the United States. Section 713 requires the President to 
provide to Congress a report, in classified and unclassified 
forms, listing all foreign governments which he determines are 
engaged in espionage in the United States. The committee is 
aware that the executive branch already compiles and provides 
to Congress much of this information pursuant to section 601 of 
the Intelligence Authorization Act for fiscal year 1985. 
(Public Law 98-618).

Section 714.--Foreign state support for acts of international terrorism

    Section 714 amends section 620A (relating to designation 
and sanction of state sponsors of terrorism) of the Foreign 
Assistance Act. Section 714(1) adds the word ``and'' at the end 
of subsection (c)(1)(B), making clear that all three 
requirements for rescission of a terrorism determination must 
be met. Section 714(2) changes from 6 months to 1 year the 
period of time in which a nation must be determined to have 
abandoned its sponsorship of international terrorism before 
rescission. Section 714(3) amends the waiver provision of this 
section to allow the President to provide assistance only to 
``the people'' (as opposed to ``the government'') of a nation 
designated as a state sponsor of terrorism. Section 714(4) 
requires a ``vital national security'' designation (versus 
simple ``national security'') for the President to use his 
waiver authority. Section 714(5) conforms the remainder of the 
provision to the previous subsection. Section 714(6) adds a new 
subsection to section 620A which clearly defines the concept of 
``support for acts of international terrorism'' and ``provided 
any support for international terrorism'' to include 
assistance, support, planning or execution of an act of 
terrorism, as well as provision of safe haven, training, 
refuge, or any other assistance to a terror group.
    The committee finds that the lack of definitions in current 
law, as well as the broadness of the waiver provisions, provide 
too great a loophole through which a Secretary of State or 
President might rescind a designation of state support for 
terrorism. It has become clear that the view of many nations so 
designated is that the designation is a mere political device 
which can be ignored when politically expedient. The seven 
nations currently designated as state sponsors of terror have 
directly and indirectly supported the murder of innocent 
civilians in the last year. Such nations do not deserve any 
form of assistance from the United States.
    The committee commends President Clinton for his recent 
executive order effecting a unilateral U.S. embargo of Iran. 
The committee believes that terrorism constitutes one of the 
greatest threats to U.S. national security in the post cold war 
era, and that such embargoes would be in place for all state 
sponsors of terrorism. The President and the Congress should 
consider the propriety of moving in such a direction. The 
committee further believes that nations such as Syria, 
notwithstanding its participation in the Middle East peace 
process, must demonstrably renounce terrorism and cease 
training, support and providing safe haven to terrorist groups 
prior to any possible consideration of an improvement in U.S. 
relations.

Section 715.--Restriction on assistance to nuclear proliferators

    Section 715 prohibits the sale, transfer or license of 
military equipment or foreign aid to any non-nuclear weapon 
state found by the President to be diverting unsafeguarded 
special nuclear material from a civilian to a military use. It 
gives the President authority to waive the prohibition for 180 
days if termination of such assistance would seriously 
prejudice U.S. non-proliferation objectives or jeopardize the 
common defense and security.
Section 716.--Prohibition on foreign assistance to foreign governments 
        not implementing extradition treaties

    Section 716(a) prohibits foreign assistance to the 
government of a country that is not effectively implementing a 
treaty with the United States to extradite individuals charged 
with or who have committed a felony.
    Section 716(b) defines a ``felony offense'' as an offense 
punishable by death or imprisonment for a term exceeding 1 
year. ``Foreign assistance'' for purposes of section 716 means 
any projects, programs, and activities funded under the 
functional budget category 150 relating to international 
affairs.
    The committee is concerned about the increasing number of 
cases in which foreign nationals commit crimes in the United 
States and escape justice by fleeing to their home country 
which either does not allow for extradition back to the United 
States or fails to implement an existing extradition treaty. 
These cases exist in a number of U.S. jurisdictions, including 
California, Texas, Florida, Virginia, and the District of 
Columbia. For example, in the metropolitan Washington, D.C., 
area, the committee is aware of nine cases pending against 
citizens of El Salvador, including one individual wanted in 
connection with the death of a retired D.C. police officer.
    In many cases, these same nations, despite well-intentioned 
governments, lack effective judicial systems that would ensure 
some degree of justice for victims and punishment commensurate 
with the crime for the alleged perpetrator.
    The committee has a difficult time understanding why U.S. 
foreign assistance should be provided to nations that 
effectively allow their nationals to escape justice by not 
implementing existing extradition treaties. The provision of 
foreign assistance to a nation serves a number of U.S. national 
interests. One of these interests should be to seek justice for 
American citizens who have been victimized by foreign 
nationals. To the extent that foreign assistance provides a 
useful instrument to achieve that objective, it should be used. 
If a nation, in effect, harbors fugitives, then it should not 
be the recipient of U.S. foreign assistance.

Section 717.--Impact on jobs in the United States

    Section 717 carries current appropriations law restricting 
the use of aid funds to assist U.S. business enterprises to 
move from the United States or to support zones, such as 
foreign free trade zones, failing to meet certain minimum labor 
standards.

Section 718.--Nonapplicability of cargo preference requirements

    Section 718 eliminates the application of cargo preference 
requirements, one of the most expensive and inefficient Federal 
subsidy programs, to food assistance. Current law requires that 
75 percent of U.S. food aid be shipped on U.S. flag ships 
whether or not these are the least-cost carriers.
    The average cost for cargo preference requirements is twice 
the cost on the international market, adding up to an OMB-
calculated additional cost of $126 million in transportation 
costs in fiscal year 1996.
    The cargo preference requirement for food assistance has 
not advanced the program's original objective of maintaining 
U.S. flag ships as a naval auxiliary in time of war. The 
Defense Department has stated in a GAO report that ``the 
preferred method of transporting food cargo is by bulk carrier. 
The Department of Defense does not rely on these bulk ships 
because they have negligible military utility.'' (GAO/GGD 94-
215, p. 104) In fact, the Defense Department believes that the 
elimination of cargo preference for food assistance would not 
significantly impact readiness. (GAO, p. 31)
    Operation Desert Shield/Desert Storm demonstrated the 
accuracy of this statement. According to the Defense 
Department, none of the ships who have benefitted from the 
cargo preference program participated in the Gulf war 
mobilization or supply efforts because they were not the most 
appropriate type of ship to transport equipment and supplies. 
(GAO, p.32)
    In addition, the GAO found that cargo preference 
requirements for food aid do not contribute to ensuring that 
U.S. flag ships carry a substantial portion of either U.S. 
domestic or foreign waterborne commerce, since food aid cargo 
preference accounts for less than 1 percent of waterborne 
foreign commerce.
    Most importantly, cargo preference requirements adversely 
affect U.S. food assistance programs. For example, Sri Lanka 
received $58.9 million to purchase and transport wheat, yet 35 
percent ($20.6 million) was spent on transportation of which 52 
percent was spent to pay above-market-rates for U.S. shipping. 
Cargo preference requirements can also cause the purchase of a 
commodity at a higher price, or the purchase of a different 
variety of commodity than originally planned, since cargo 
preference requirements cause the availability of U.S. ships to 
be the deciding factor rather than the availability of the 
commodity.
    In a 1992 wheat purchase by Tunisia, the four lowest offers 
specified loading facilities in ports on the Columbia river and 
in Stockton, CA. Since no U.S. flag ships offered to transport 
wheat from these ports, Tunisia was unable to take advantage of 
these low prices and was eventually forced to purchase wheat 
offered in the Gulf of Mexico at the seventh and eighth lowest 
price (GAO, p.53).
    In May 1993, the United States agreed to extend $700 
million of U.S. food assistance to Russia. Of this $700 
million, $200 million was set aside for the cost of 
transporting the food aid, 75 percent of which was required to 
be shipped pursuant to U.S. cargo preference requirements. 
Consequently, carriers submitted bids that were more than 300 
percent above world market rates, driving the cost of shipping 
the grain higher than the cost of the grain itself.
    After a lengthy debate and a vote of 9 to 9, the committee 
chose to retain language in the bill prohibiting the 
application of cargo preference requirements to the delivery of 
food assistance.

Section 719.--Prohibition on foreign assistance to foreign governments 
        employing mercenary forces

    The committee is concerned by the emergence of private 
mercenary forces for hire, particularly in Africa. One such 
``company'' named ``Executive Outcomes,'' was highly effective 
on the side of the government in the war-torn country of 
Angola, and its success there has led to interest from a number 
of other African countries at civil war.
    The committee views the use of mercenaries as a 
proliferation issue. The presence of an entity which has a 
strong financial incentive for continued warfare is certainly 
not helpful to conflict resolution efforts. Furthermore, any 
country which can afford to pay mercenary forces to participate 
in its wars should not be a fully-funded recipient of U.S. 
bilateral assistance. The committee seeks to discourage the use 
of mercenaries by any party to a conflict.
    The definition of mercenaries is taken verbatim from the 
1977 Protocol Additional to the Geneva Convention because it is 
a fairly restrictive definition that was deemed acceptable by 
many nations.
Section 720.--Transportation expenses for delivery of humanitarian 
        assistance

    Section 720 provides the President the authority to 
transport U.S.-origin privately donated humanitarian assistance 
to the Newly Independent States (NIS), the Baltic States and 
newly independent States of the former Yugoslavia, excluding 
Serbia.
    This section authorizes such sums as may be necessary to 
carry out the provision. Similar authority has been utilized in 
the past to transport humanitarian assistance valued at more 
than $1.2 billion to the NIS, using less than $200 million in 
appropriated funds. It has provided logistics support and 
transportation costs on behalf of U.S.-based private 
organizations donating food, medical equipment, and clothing to 
organizations, hospitals, orphanages and other recipients in 
the NIS.
    This provision builds upon legislation originally 
authorized in the 1992 Comprehensive Threat Reduction Act that 
was applicable solely to the NIS. Since then, additional funds 
have been made available in various pieces of legislation to 
continue this program. Section 720 would permit the program to 
be extended to Eastern Europe as a pilot program. If successful 
in Eastern Europe, the committee believes it should be 
considered in the future for other areas of the world.
    The committee believes that, in approving section 720, it 
is responding to the basic humanitarian impulses of the 
American people and the private sector to provide humanitarian 
assistance to countries in need, and is doing so in a very 
cost-effective way. The committee sees this program as one way 
to maintain our overseas humanitarian commitments as we reduce 
the size of the Federal budget and foreign assistance funding.

Section 721.--Prohibition on assistance to countries blocking or 
        restricting humanitarian aid corridors

     Section 721 prohibits the provision of U.S.-assistance to 
any country that blocks the delivery of U.S. humanitarian 
assistance. Subsection (a) presents Congressional findings on 
the problem of U.S. aid recipients blocking the provision of 
U.S. humanitarian assistance. Subsection (b) prohibits the 
provision of U.S.-assistance to any country that restricts the 
delivery of U.S. humanitarian assistance; allows the President 
to waive this prohibition if he determines and notifies 
Congress that it is in the national interest of the United 
States to do so; and allows for a resumption of assistance once 
the President certifies to Congress that the country has 
stopped restricting the delivery of U.S. humanitarian 
assistance. Subsection (c) requires the President to submit an 
annual report to Congress describing any actions by a 
government that receives U.S. foreign assistance to restrict 
the delivery of U.S. humanitarian assistance.
    This section is substantially similar to S. 230, the 
Humanitarian Aid Corridor Act, which was introduced on a 
bipartisan basis early in the 104th Congress. In adopting this 
provision, the committee states its belief, as a mater of 
principle, that countries must not interfere with the delivery 
of U.S. humanitarian assistance. When the United States 
provides food, medicine, and clothing to civilian populations, 
in response to war or natural disaster, there is no 
justification for a country to block this assistance, 
especially when that country is itself a recipient of U.S.-
assistance.

                           Chapter 3--Repeals

Section 731.--Repeal of obsolete provisions

    Section 731 repeals the following list of administration-
approved, bipartisan repeals of provisions previously proposed 
for repeal: (8) The Special Foreign Assistance Act of 1986, 
except sections 1 and 204; (10) The International Security and 
Development Cooperation Act of 1985, except sections 1, 131, 
132, 504, 505, part B of title V (other than sections 558 and 
559), 1302, 1303, and 1304; (11) The Jordan Supplemental 
Economic Assistance Authorization Act of 1985; (12) The African 
Famine Relief and Recovery Act of 1985; (13) The International 
Security and Development Assistance Authorization Act of 1983; 
(14) The Lebanon Emergency Assistance Act of 1983; (15) The 
International Security and Development Cooperation Act of 1981, 
except sections 1, 709, and 714.

                       TITLE VIII--EFFECTIVE DATE

Section 801.--Effective date

    This Act would take effect on October 1, 1995.
                             Cost Estimate

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

               Congressional Budget Office Cost Estimate

    1. Bill number: Unassigned.
    2. Bill title: Foreign Assistance Reduction Act of 1995.
    3. Bill status: As ordered reported by the Senate Committee 
on Foreign Relations on June 8, 1995.
    4. Bill purpose: The bill would authorize appropriations 
for fiscal years 1996 and 1997 for bilateral economic and 
military assistance programs. It would authorize the 
subscription of capital stock in the Asian Development Bank, 
alter the pricing policy for sales of military equipment, and 
make other changes to foreign assistance programs.
    5. Estimated cost to the Federal Government: Assuming 
appropriation of the entire amounts authorized for 
discretionary programs, enactment of the bill would result in 
funding below the 1995 level by about $772 million in fiscal 
year 1996 and by $1,043 million in fiscal year 1997. Also, 
several provisions of the bill would result in small changes to 
mandatory spending and receipts. The budgetary effects of the 
legislation are summarized below:

----------------------------------------------------------------------------------------------------------------
                                                   1995       1996       1997       1998       1999       2000  
----------------------------------------------------------------------------------------------------------------
                Direct Spending                                                                                 
Estimated budget authority....................          0         20         20         45         68         90
Estimated outlays.............................          0         23         20         45         68         90
   Spending Subject to Appropriations Action                                                                    
Spending under current law:                                                                                     
    Budget authority \1\......................      9,847          0          0          0          0          0
    Estimated outlays.........................     10,662      5,361      2,502      1,426        748        354
Proposed changes:                                                                                               
    Estimated authorization level.............          0      9,075      8,804         25         25         25
    Callable-capital subscriptions............          0        648        648          0          0          0
    Estimated outlays.........................          0      4,999      7,185      2,796      1,295        757
Spending under the bill:                                                                                        
    Estimated authorization level \1\.........      9,847      9,075      8,804         25         25         25
    Callable-capital subscriptions............          0        648        648          0          0          0
    Estimated outlays.........................     10,662     10,361      9,687      4,223      2,043      1,111
----------------------------------------------------------------------------------------------------------------
\1\ The 1995 figure is the amount already appropriated.                                                         

    In addition to the authorizations shown in the above table, 
the bill could also affect appropriated spending by eliminating 
cargo preference requirements for food aid shipments. If 
appropriations for food aid were reduced accordingly, savings 
could total up to $120 million per year.
    The direct spending costs of the bill fall in budget 
functions 050 (national defense) and 400 (transportation). The 
spending subject to appropriations action falls in budget 
function 150 (international affairs).
    6. Basis of estimate: The estimate assumes enactment of the 
bill and appropriation of the authorized amounts for each 
fiscal year. CBO used historical spending rates for estimating 
outlays.

Direct spending

    In addition to authorizing appropriations, the bill 
contains several provisions affecting direct spending.
    Cost recovery in foreign military sales.--Section 172 would 
strike the section of the Arms Export Control Act that requires 
government-to-government sales of major defense equipment to 
include a charge for the recovery of a proportionate amount of 
any nonrecurring cost of research, development, and production. 
This provision would apply to sales agreements signed after the 
date of enactment. Charges for nonrecurring costs are collected 
upon delivery; therefore, the bill would not affect collections 
until 1998. CBO estimates that enactment of section 172 would 
lower Department of Defense receipts by $25 million in 1998, 
$48 million in 1999, and $70 million in 2000. Ultimately, the 
loss of receipts would average about $170 million a year.
    Waiver of charges for contract administration services.--
Section 402(c) would permit the administration to provide 
without charge and on a reciprocal basis certain contract 
administration services on military sales to Israel. The U.S. 
Government currently charges 1.5 percent of the value of sales 
for such services. CBO estimates that enactment of the 
provision would lower receipts by $20 million a year.
    Cargo preference.--Section 718 would exempt from cargo 
preference laws any agricultural commodities shipped to foreign 
countries under food assistance programs. Existing cargo 
preference rules for agricultural products require that 75 
percent of the gross tonnage of federally sponsored shipments 
be reserved for U.S.-flag commercial vessels. Eliminating these 
rules would enable the Department of Agriculture (which pays 
most of the cost of ocean transportation for food assistance 
programs) to use foreign carriers when it is cheaper to do so. 
CBO expects that the resulting loss of business and/or 
reduction in U.S.-flag freight rates would cause some American 
carriers to default on loans guaranteed under the Shipping Act 
of 1936. We estimate that the resulting increase in mandatory 
outlays (net of any reimbursements or proceeds from disposal of 
assets) would be about $3 million in fiscal year 1996.
    Exempting agricultural shipments would reduce ocean 
transportation costs on food aid shipments by up to $120 
million annually (at current foreign-U.S. freight 
differentials). The effect of such savings on the Federal 
budget would depend on whether discretionary appropriations for 
food assistance programs would be reduced or whether the 
savings would be used to finance additional food assistance.
    Storage costs for Pakistan.--Section 510 would release 
Pakistan from its contractual obligation to pay the U.S. 
Government for storing items purchased before October 1, 1990, 
but not delivered because of restrictions in the Foreign 
Assistance Act. The U.S. Government is charging Pakistan $1.4 
million a year for the cost of storing F-16 aircraft. Since 
1991, the U.S. Government has charged Pakistan nearly $7 
million. Because Pakistan has not been paying these charges, 
waiving them is not estimated to reduce collections.
    Termination expenses.--Section 712 would authorize the 
administration to deobligate and reobligate development 
assistance funds for countries whose assistance program is 
terminated. The reobligation would cover equitable settlements 
for third parties whose contracts were cancelled when the 
assistance ended. Because the U.S. Government has rarely 
terminated assistance in a manner that has generated contractor 
claims, CBO estimates that the authority will be little used 
and will not result in a significant cost to the government.

Spending subject to appropriations action

    The bill would authorize the appropriation of $17.9 billion 
for international affairs and other programs over the next 2 
years.
    Foreign military financing.--The bill would authorize 
appropriations of $3,185 million for 1996 and $3,160 million 
for 1997 for the foreign military financing program, but it 
contains earmarks and limitations that exceed the amounts 
authorized. The estimate assumes that appropriations will not 
exceed the authorized amounts. It also assumes that in each 
year $3,100 million would be appropriated for grants to Israel 
and Egypt, $20.6 million would be provided for administrative 
expenses, and the balance would be provided for credits to 
Greece and Turkey.
    Valuation of defense articles.--Section 173 would authorize 
the President to reduce the price of defense articles sold from 
stock that are not intended to be replaced, if the sale would 
facilitate the sale of a similar or related new defense 
article, would support the national defense industrial base, 
and would serve the national security interests. The authority 
would be subject to the availability of appropriations for any 
discount. The Department of Defense reports that proposed sales 
rarely meet all the three conditions in the amendment. The 
estimate assumes the authorization would not be used to any 
significant degree.
    Development assistant fund.--Section 311 would authorize 
the appropriation of $2,475 million in 1996 and $2,324 million 
in 1997 for development assistance, the development fund for 
Africa, assistance for Eastern Europe, assistance for the new 
independent States, and housing and other credit programs. 
These activities have different spending rates. To estimate 
outlays, CBO relied upon a table provided by committee staff 
that distributed the authorized amount by account.
    Asian Development Bank.--Section 606 would authorize the 
U.S. Government to subscribe to 276,105 shares of stock in the 
Asian Development Bank as the United States' portion of the 
fourth general increase in the capital of the bank. If fully 
funded, the stock subscription would represent a $3,331 million 
commitment to the bank. The international agreement authorizing 
the stock increase anticipates the subscription would be 
completed over 6 years and that 2 percent of the stock would be 
paid in by member states. The balance, or callable-capital, 
carries some small risk that, as an owner of the bank, the U.S. 
Government may be required to increase its direct investment in 
the bank should the bank be unable to service its liabilities.
    The bill would authorize the appropriation of $13.32 
million in 1996 and 1997, an amount sufficient to purchase 
paid-in capital stock in the first 2 years of the 6-year 
expansion of the bank. The estimate assumes that annual 
appropriations acts would limit callable-capital subscriptions, 
but would provide no budgetary resources, as has been the 
practice for the last 16 years. Subsequent authorization would 
be required to complete the stock subscription or to increase 
capital investments from callable-capital.
    Transportation costs.--Section 719 would permanently 
authorize the appropriation of such sums as may be necessary 
for the cost of transporting privately donated humanitarian 
assistance to the Baltic States and the newly independent 
states of the former Soviet Union and Yugoslavia. Since 1992, 
the U.S. Government has spent nearly $200 million to transport 
donated goods and excess government property to those 
countries. CBO estimates that such costs would total $25 
million a year based on projections of the State Department.
    7. Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act of 1985 sets up pay-as-you-go 
procedures for legislation affecting direct spending or receipt 
through 1998. CBO estimates that the bill would have the 
following pay-as-you-go impact:

------------------------------------------------------------------------
                                 1995       1996       1997       1998  
------------------------------------------------------------------------
Change in outlays...........          0         23         20         45
Change in receipts..........      (\1\)      (\1\)      (\1\)     (\1\) 
------------------------------------------------------------------------
\1\ Not applicable.                                                     

    8. Estimated cost to State and local governments: None.
    9. Estimate comparison: None.
    10. Previous CBO estimate: None.
    11. Estimate prepared by: Joseph C. Whitehill and Deborah 
Reis.
    12. Estimate approved by: Paul Van de Water, Assistant 
Director for Budget Analysis.
                    Evaluation of Regulatory Impact

    In accordance with rule XXVI, paragraph 11(b) of the 
Standing Rules of the Senate, the committee has concluded that 
there is no regulatory impact from this legislation.
                   ADDITIONAL VIEWS OF SENATOR HELMS

    I do not support foreign aid. Most Americans do not support 
it largely because many of the programs which have been 
undertaken in developing nations have brought few tangible 
results for those they were designed to benefit. In fact, 
billions of dollars in foreign aid spending been 
counterproductive. This aid has gone to nations which sanction 
drug trafficking; which rule undemocratically; which abuse the 
rights of their citizens and the rights of Americans; which 
oppose the United States in international forums; and which 
stifle economic growth and shield their markets from U.S. 
exports. It is incomprehensible how a nation which is $4.9 
trillion in debt can continue to spend nearly $14 billion 
annually on foreign aid.
    I believe the ``Foreign Aid Reduction Act of 1995'', in 
combination with S. 908, the Foreign Relations Revitalization 
Act of 1995, will move our Nation in the proper direction 
regarding foreign aid and assist in balancing the Federal 
budget by 2002. S. 908 abolishes the Agency for International 
Development (AID), the Federal agency responsible for providing 
most U.S. foreign aid and, this legislation makes deep cuts in 
foreign aid funding.
    Foreign aid may only represent 1.3 percent of the entire 
Federal budget, but when one considers that the entire Federal 
budget is $1.5 trillion, foreign aid spending is an enormous 
sum of money. Further, more than 14 percent of the Federal 
budget is devoted exclusively to repaying interest on the 
Federal debt, it is clear that our Nation cannot afford this 
type of spending. It must also be noted that, as a share on 
non-defense discretionary spending, foreign aid consumes fully 
8 percent of the budget.
    The committee took several actions which I oppose. While I 
fully respect the will of the committee, I do not support a 
number of amendments which were agreed to.

                  u.n. fund for population activities

    Most important of the objectionable provisions included in 
the committee mark up of the ``Foreign Aid Reduction Act of 
1995'', was the inclusion of a provision authorizing funding 
for the U.N. Fund for Population Activities (UNFPA).
    I am deeply disappointed that the committee decided to 
authorize funding for the U.N. Population Program. For almost 
two decades, UNFPA has, in the name of reducing the world's 
population, helped the communist Chinese Government manage its 
brutal population control program. Under China's program, women 
are dragged into government clinics and forced to have an 
abortion if they already have one child. Women and men are 
forced, like animals, to undergo sterilization procedures if 
they violate or oppose the ``one-child'' policy. This inhumane 
program--which UNFPA upholds as a model for developing 
countries--has caused an alarming increase in abortions of baby 
girls because many Chinese consider them less valuable.
    I do not accept the fiction that UNFPA does not participate 
in China's population control program, or that UNFPA 
disapproves of the Chinese program. The evidence to the 
contrary is too overwhelming. About China's brutal program, 
UNFPA's current Executive Director, Ms. Nafis Sadik, told 
China's official news agency in 1991 that ``China has every 
reason to feel proud of and pleased with its remarkable 
achievements made in its family planning policy and control of 
its population growth over the past 10 years. Now the country 
could offer its experiences and special experts to help other 
countries.'' Based on this and other statements, those who 
believe in the sanctity of human life have every right to be 
concerned that UNFPA will promote Chinese policies of coercive 
abortion and sterilization in developing countries. I am not 
aware that Ms. Sadik renounced this statement.
    AID Administrator Brian Atwood told the chairman of the 
House Foreign Operations Appropriations Subcommittee, in an 
August 6, 1993, letter that ``if there are not significant 
improvements in China's population program, the United States 
will not support continued UNFPA assistance to China beyond 
1995 when the current program ends.'' The situation in China is 
worse, UNFPA does not intend to pull out of China, yet the 
administration will continue to fund UNFPA. The 
administration's refusal to use financial leverage by 
withholding United States funds to UNFPA until UNFPA leaves 
China is contrary to the administration's public disapproval of 
China's inhumane ``one-child-per-family'' population control 
program.
    The President requested more than $580,000,000 for 
bilateral international population control programs for fiscal 
year 1996, making the U.S. population control program the 
largest in the world. Senate consideration of this bill will be 
an opportunity to stop the administration from supporting the 
United Nations' population control programs in China. The 
administration will fund UNFPA unless Congress passes a foreign 
aid bill, after it removes the UNFPA provision.

                 funding for multilateral organizations

    The committee also voted to increase by $45 million the 
funding for various U.N. voluntary programs. I oppose U.S. 
participation in these so-called ``voluntary'' programs. The 
United States is already the largest contributor to the United 
Nations, both for peacekeeping costs and general operating 
expenses. American taxpayers should not be asked to contribute 
additional money to pay for dozens of other U.N. programs whose 
purposes are dubious at best.
    Also included during committee mark up, were two amendments 
dealing with multilateral financial institutions which I 
oppose. First, the committee adopted an amendment to allow 
funding for the International Development Association (IDA). My 
recommendation is that the United States cease its 
contributions to IDA--an action that would save taxpayers more 
than $1 billion annually. Second, the committee approved $26.6 
million for the Asian Development Bank over the next 2 fiscal 
years. This authorization also requires $1.29 billion in 
callable capital for fiscal years 1996 and 1997.
                        original chairman's mark

    The draft bill I originally brought before the committee, 
the chairman's mark, would have cut from the President's 
requested level $3.196 billion in fiscal year 1996 and $3.470 
billion in fiscal year 1997. Specifically, from the Development 
Assistance Fund (DFA) of the bill, I proposed cutting $1.839 
billion over 2 years from the current year funding level. As 
reported out of committee, the bill will save taxpayers nearly 
$3 billion from the President's 1996 budget request.
    The chairman's mark contained several provisions which 
directly benefit American citizens. Most important, one section 
of the bill would have repealed the Presidential waiver 
regarding the expropriation of U.S. property overseas. Section 
527 of the Foreign Relations Authorization Act for fiscal years 
1995 and 1996 requires that all foreign aid be terminated to 
any foreign nation which has expropriated the property of 
American citizens and has not provided compensation or returned 
the property. However, section 527 contains a loophole which 
has allowed this administration to waive this section for two 
nations--Nicaragua and Costa Rica--which have numerous American 
expropriation cases. Repealing this waiver authority would have 
significantly improved the ability of Americans to receive fair 
and equitable compensation from governments which illegally 
confiscate American property.
    My original bill would have consolidated several satellite 
foreign affairs agencies. I proposed abolishing the Inter-
American Foundation--which has spent more than $1 billion since 
its creation--and the African Development Foundation. I also 
recommended repeal of the American Schools and Hospitals Abroad 
program and the International Fund for Ireland. While 
supporters argue that the cost of these programs are 
insignificant, eliminating these programs would have saved 
taxpayers more than $150 million in the next 2 years.

                         flexibility provisions

    The chairman's mark contained a number of provisions which 
would have enhanced the foreign policymaking flexibility of the 
administration. These sections were all removed after 
objections from other members of the committee. While foreign 
aid levels will continue to decrease, the administration should 
have the flexibility to uses those limited resources in ways 
which benefit America most. My original bill would have 
broadened the existing section 610 transfer authority to allow 
up to 20 percent of the funds from any foreign assistance 
account to be transferred to any other account. Under current 
law, money cannot be transferred out of development accounts 
which could limit the administration's ability to respond to 
security threats.
    The original bill also contained a section which would 
allow the administration to break earmarks if the President 
determines that it is vital to the national security interests 
to do so. In times of national crisis, the President should 
have this authority. I also proposed a Presidential Contingency 
Authority so that the President could quickly respond to 
unforseen emergencies.

               administration budget request unrealistic

    I was very disappointed that the Clinton administration 
submitted to Congress a budget for fiscal year 1996 which 
proposes to increase international affairs spending. In the 
current budget climate, the President's budget for foreign aid 
is highly unrealistic. The President's $15.2 billion budget 
request for foreign aid is about $950 million larger than the 
fiscal year 1995 appropriated level (6.6 percent increase). 
While the President's budget would cut $87 million for programs 
which support economic growth overseas, it would increase 
spending in the following areas:
         $512 million increase in funding for 
        multilateral development banks (29 percent increase 
        above fiscal year 1995).
         $53 million increase for population programs 
        (11 percent increase).
         $35 million increase for debt reduction and 
        debt forgiveness (500 percent increase).
         $24 million increase for environmental aid 
        programs.
                 ADDITIONAL VIEWS OF SENATOR COVERDELL

    In my opinion, the Senate Foreign Relations Committee took 
a very unfortunate step when it approved an amendment that cuts 
over 50% of the funds authorized for international narcotics 
controls. The amendment, approved 6-3 by a show of hands, cuts 
the funds authorized for Narcotics Control Assistance from $213 
million down to $105 million and transfers the balance of $108 
million to the Development Assistance Fund.
    In April, the Western Hemisphere Subcommittee, which I 
chair, held a hearing on the hemispheric narcotics epidemic. We 
discussed the scope of the problem the sophistication of the 
Drug Cartels and the threat posed to the life and security of 
American people by cocaine, heroin and other poisons arriving 
from Central and South America. The facts discussed at the 
hearing paint an ominous and extremely disturbing picture.
    I am confident that if all the Senators here could have 
heard what our subcommittee heard during the course of those 
hearings, the full committee's vote would have been different. 
The cartels drain between $70-140 billion per year from the 
U.S. economy through emergency room and health care costs among 
other reasons. The drug trade is responsible for the killing 
and maiming of more Americans each year than died during our 
entire engagement in Vietnam. As Stephen Greene of the Drug 
Enforcement Administration declared, ``If another country 
harbored terrorists who flooded the U.S. with chemical weapons 
* * * what public official or American citizen would settle for 
anything short of capturing and punishing those people?''
    The facts are that funding for counter-narcotic programs 
have been cut substantially over the past years--from a total 
of $323.9 million fiscal year 193 down to $131.8 million last 
year. The administration fiscal year 1996 request of $213 
million, which was fully funded by the chairman's mark, is 
essential in keeping our counter-narcotics programs alive. My 
office spoke on the telephone with the Assistant Secretary of 
State for International Narcotics and Law Enforcement Affairs 
who said, ``These cuts would in essence dismantle the program. 
We would be forced to close programs down all over the world.''
    I have great respect for Senator Kassebaum, who sponsored 
the amendment in question. I know her intentions were well 
placed. I share her frustration with the lack of progress in 
fighting the drug war, as well as the difficulties relating to 
accounting and budget transparencies. But I cannot support 
diverting money used to fight so serious a threat to the 
national security of the United States. There are few dollars 
authorized by this Committee that are more vital to our 
national security than those used to fight the international 
drug war.
    It is my hope that the Senate will vote to reinstate full 
funding for our global counter-narcotics activities.
                   ADDITIONAL VIEWS OF SENATOR SNOWE

    As a cosponsor of the amendment that restored $45 million 
in the International Organizations and Programs authorizations 
level for a range of mostly environmental and sustainable 
development programs, including the Montreal Protocol 
Multilateral Fund, the U.N. Framework Convention on Climate 
Change, the Ramsar Convention on Wetlands, and other worthwhile 
organizations, I am pleased that the committee agreed, by a 
bipartisan 12-6 vote, to continue U.S. support for these 
important activities.
    Natural resources, unlike people, recognize no political 
boundaries. Whether it be fisheries, climate, migratory birds, 
water pollution, or a host of other issues, actions taken in 
one country often have an effect on resources in another. 
International cooperation is therefore an important means of 
achieving our policy goals as they relate to natural resources, 
the environment, and sustainable development. And the 14 
organizations for which authorization levels have been restored 
in this legislation provide the United States with good 
opportunities for productive international cooperation on these 
issues.
                  ADDITIONAL VIEWS OF SENATOR FEINGOLD

    I concur in much of what is said in the minority views 
filed by the ranking minority member and others regarding what 
is wrong with the bill being reported.
    Spending on foreign assistance programs, like all other 
programs supported by U.S. taxpayers, must be reduced if we are 
going to eliminate our Federal deficit and achieve a balanced 
budget. But these cuts must be done fairly and equitably. This 
bill fails to do that. The cuts in the committee-reported bill 
are focused on programs designed to meet basic human needs 
while security assistance programs are generally held at fiscal 
year 1995 levels and in some cases increased.
    Additional, the bill contains numerous programmatic changes 
that make little sense and will make it more difficult to carry 
out foreign assistance programs in an efficient and cost-
effective manner.
    Foreign assistance programs need reforms, but this 
legislation does not move us in the right direction.
 MINORITY VIEWS OF SENATORS PELL, BIDEN, SARBANES, DODD, KERRY, ROBB, 
                             AND FEINSTEIN

    Recent polling data show that an overwhelming majority of 
Americans agrees that the United States should provide 
assistance to help people in foreign countries who are in great 
need. They understand that such aid is not merely a gesture of 
compassion, but a means of promoting long-term U.S. economic 
and political interests.
    Foreign assistance serves U.S. economic interests by 
expanding markets for United States goods and services. Exports 
to the developing world now account for 40 percent of all U.S. 
exports, and result in the creation or maintenance of 3 million 
American jobs each year. Forty-three of the top 50 consumer 
nations of American agricultural products were once U.S. 
foreign aid recipients. Our exports to Latin America in 1993 
alone were more than twice the total amount of all economic 
assistance we provided to Latin American countries over the 
previous four decades.
    In addition, helping other countries to develop their 
economies bolsters U.S. wages and creates a more level 
international playing field. American workers cannot compete on 
a fair basis with workers in countries where wages are just 
pennies a day, and where environmental and occupational safety 
standards are practically nonexistent. Raising living standards 
and promoting worker rights abroad is critical if free trade is 
going to be fair trade.
    Foreign economic development directly affects American 
citizens in other ways, as well. Efforts to spur broad-based 
economic growth, protect human rights and create stable 
democratic institutions abroad mean fewer illegal immigrants 
and political refugees to our own country. They help reduce 
economic incentives for the production of illegal drugs that 
end up on American streets, and ameliorate conditions that 
breed support for terrorism and other forms of extremism.
    In an age of expanding tourism, travel and commerce, 
Americans cannot afford to be indifferent to health epidemics 
and outbreaks of disease anywhere in the world. Infectious and 
parasitic diseases are, in fact, the leading cause of death on 
the planet. Our efforts to control the spread of AIDS, polio, 
and other deadly diseases simply protect ourselves.
    Some of the greatest environmental challenges are being 
faced by countries and individuals without the financial or 
technological resources to find alternatives. But 
deforestation, pollution, and exhaustion of natural resources 
have effects that do not respect national or geographic 
boundaries. And since rapid population growth, persistent 
poverty and environmental degradation tend to go hand-in-hand, 
reinforcing each other, a coherent and coordinated approach to 
addressing these problems is required. Preventing these 
situations from growing into humanitarian emergencies and man-
made disasters is a key objective of our foreign aid.
    From the standpoint of U.S. political and strategic 
interests, foreign assistance programs can be of critical 
importance. Democratic countries are generally more stable and 
more reliable partners in responding to problems of mutual 
concern. If we reduce funding for the kind of programs that aim 
to prevent violent conflicts from developing, and that help 
resolve conflicts peacefully when they do arise, we may end up 
having to deal with some of them militarily--which is much more 
costly both in terms of dollars and in terms of human life.
    We cannot hope to combat the scourge of illegal drugs 
effectively or put an end to international terrorism without 
global cooperation. Whether through education and training, 
provision of appropriate equipment, or helping to reduce 
economic incentives for these activities, U.S. assistance is 
crucial. It is also a key element in the fight against nuclear 
proliferation. Foreign aid programs help to dismantle safely 
and destroy nuclear weapons that were aimed against American 
cities for nearly half a century, and teach other countries how 
to prevent and detect the smuggling of weapons of mass 
destruction and their components.
    Therefore, while we recognize that foreign assistance 
programs must bear their share of the cuts required under the 
budget resolution, we are deeply concerned that excessive cuts 
in foreign aid are shortsighted and will end up costing us 
money in the long run. This bill makes cuts that are far deeper 
than are required, that are unfairly and unwisely distributed, 
and that will impair the ability of the United States to 
protect its interests abroad.

                             funding levels

    Foreign assistance programs constitute just over 1 percent 
of the Federal budget. They are at their lowest levels in 
nearly half a century (Figure 1)--since the beginning of the 
Marshall Plan--and have fallen more than 50 percent in real 
terms over the last ten years (Figure 2).




    The United States not only gives the lowest percentage of 
its GNP for official development assistance among 21 
industrialized members of the Organization for Economic 
Cooperation and Development (OECD), but the .15 percent we give 
for this purpose is half the group's average. The U.S. share in 
the total volume of official development assistance given by 
OECD donors has dropped from 30 percent in 1982-83 to 17 
percent in 1993.

Budget resolution

    The budget resolution that was passed by the Senate during 
the course of the committee's mark-up would impose cuts of $2.2 
billion in fiscal year 1996 and $2.6 billion in fiscal year 
1997 from the total amount appropriated for all international 
affairs spending in fiscal year 1995--cuts of approximately 11 
percent and 13 percent, respectively, even without allowing for 
inflation. Such spending includes not only foreign aid programs 
authorized in this bill, but also the budget for State 
Department operations, funding for food aid programs authorized 
by the Agriculture Committee, funding for the Export-Import 
Bank authorized by the Banking Committee, and programs that 
were previously authorized and only require appropriation, such 
as certain multilateral development banks.
    Since a final budget resolution has not yet been enacted, 
and the Appropriations Committee has not yet allocated spending 
levels among its subcommittees, the amount available for 
foreign assistance programs is unknown. Furthermore, since 
authorization bills only set priorities, policy guidelines, and 
ceilings for appropriators, they are not subject to the 
limitations of the budget resolution. Authorization bills are 
not required to, and rarely do, stay within the budget limits 
imposed on appropriation bills. They do not have an impact on 
the deficit.
    Nevertheless, we agree that to have more of an impact on 
the current budget process, our authorization bill should be 
close to the levels likely to be available to the 
appropriators. During committee consideration of the bill, 
there was much discussion over what those levels might be.
    This bill assumes that every international affairs program 
that is not included in one of the two authorization bills 
reported by the Foreign Relations Committee thus far will be 
funded at the levels requested by the President for fiscal year 
1996. We believe that assumption is not only unrealistic, but 
unfair. The budget resolution passed by the Senate specifically 
recommends that export financing and trade promotion programs 
be reduced by $755 million in budget authority over five years, 
replenishments to soft loan arms of the multilateral 
development banks be reduced by $3.8 billion, and food aid be 
reduced by $430 million over the same period.
    By setting aside enough money to allow full funding for 
these programs not only at fiscal year 1995 levels, but at the 
increased levels that the administration requested for them in 
fiscal year 1996, this bill forces foreign aid programs to bear 
the full brunt of the spending reductions that were to be 
spread out across the 150 ``International Affairs'' budget 
account. Under this bill, $2 billion in reductions from 1995 
levels--over 90 percent of the budget cuts taken from the 150 
account--would be absorbed by only 25 percent of the programs 
in the 150 accounts.
    An amendment was offered during mark-up by Senator Sarbanes 
stating the Sense of the Senate that international affairs 
programs which were previously authorized, or which are under 
the jurisdiction of other committees, ``should bear a 
proportionate share of the reductions taken from the 150 budget 
account.'' Had the amendment been adopted, it would have made 
over $500 million in additional funding available for programs 
in this bill for fiscal year 1996, and over $600 million in 
fiscal year 1997.
    Even without allowing for proportionate reductions, this 
bill is approximately $90 million below the amount the entire 
committee agreed is available under the Senate budget 
resolution for fiscal year 1996 and $180 million below what is 
available for fiscal year 1997. It represents a 25 percent cut 
from the administration's fiscal year 1996 request.
    All in all, the committee could have authorized more than a 
billion dollars in additional funding for key foreign 
assistance programs over the next 2 years, and still remained 
clearly within the budget resolution. By cutting so much 
further than is required, this bill may end up tying the hands 
of the appropriators, and the President, in ways that are both 
unnecessary and imprudent. A situation may well occur in which 
the appropriators have more money available than this bill 
authorizes them to spend. This bill would thus have the effect 
of setting arbitrarily low ceilings on programs that we believe 
serve United States national interests.

Distribution of cuts

    In addition to the overall levels of funding contained in 
this bill, we are concerned about the way funds are allocated 
within it. The cuts are distributed in such a way as to fall 
heaviest on the poorest countries. They will disproportionately 
impact programs that are designed to meet basic human needs, 
such as child survival, rural development and nutrition 
programs, primary education and literacy training, combating 
AIDS and other deadly diseases, preventing rapid population 
growth, protecting the environment, conserving energy and other 
resources, promoting basic health and sanitation, integrating 
women into local and national economies and supporting 
fundamental human rights. These are the very programs that help 
people in developing countries to become self-reliant, build 
productive capacity, implement sound policies, establish 
effective and accountable political institutions, and improve 
the quality of their own lives.
    While security assistance programs are generally held at FY 
1995 levels, and in some cases increased, sustainable 
development programs are cut by more than one-third, aid to 
Africa is cut by nearly a quarter, and funding for the Inter-
American and African Development Foundations is eliminated 
entirely. U.S. voluntary contributions to international 
organizations and programs are reduced by 40 percent. No 
funding at all is provided for the International Development 
Association, for the successor to the Enhanced Structural 
Adjustment Facility, or for debt restructuring--all programs 
designed to assist countries with per capita incomes below $835 
a year.

Impact of cuts

    Major cuts in U.S. foreign assistance not only hurt people 
in the countries for which it is intended, but the American 
citizens who produce the goods and services purchased with that 
assistance. Nearly 80 percent of the contracts and grants 
awarded by the U.S. Agency for International Development 
(USAID) go to American firms. 95 percent of USAID's purchases 
of agricultural commodities and related services are made in 
the United States. In the past 2 years, U.S. companies have won 
nearly $5 billion in contracts for projects funded by 
multilateral development banks. Moreover, every dollar we 
contribute to the banks generates five dollars in export sales 
for U.S. businesses.
    Just as our resources help to leverage many times their 
value in support from other donors, cuts in our assistance 
programs are likely to be matched by cuts from other donors--
private individuals as well as foreign governments and 
multilateral institutions. The result is a ``snowball effect'' 
of reductions many times the original magnitude of the cut. A 
recent report by the OECD, expressing concern about proposals 
for major cutbacks in U.S. foreign aid, warned:

          Such a turning away by the U.S. from the common 
        effort for development which it inspired over 30 years 
        ago would be all the more serious because a declining 
        United States aid volume poses a risk of undermining 
        political support for development cooperation in other 
        DAC [Development Assistance Committee] countries, thus 
        compromising the collective international donor effort 
        to build human security and well being.
                             policy issues

Congressional oversight

    Several provisions in this bill would reduce the ability of 
the committee to signal funding priorities and to conduct 
effective oversight over the programs under its jurisdiction.
    Section 311 merges into a single fund what were once seven 
separate accounts: Development Assistance, the Development Fund 
for Africa, Housing Guarantees, Microenterprise, American 
Schools and Hospitals Abroad, Assistance for the New 
Independent States, and Assistance for Eastern Europe and the 
Baltics. We believe that these programs should be considered 
and funded on their own merits, and that the committee should 
retain its ability to indicate priorities among them.
    We are particularly concerned by the committee's refusal to 
provide separate funding for the American Schools and Hospitals 
Abroad (ASHA) program, which will be forced to compete for 
funding with other programs of particular interest to us, 
including child survival, population, and microenterprise. We 
regret that an amendment offered by Senator Pell to provide $20 
million in funding for ASHA for each of fiscal years 1996 and 
1997 was not adopted. For more than 30 years, ASHA has 
successfully advanced U.S. interests worldwide in a highly 
cost-effective manner. ASHA educational institutions, for 
instance, have introduced several generations of leaders around 
the world to American ideals and values, and have promoted 
understanding of and support for the United States on many 
levels. We believe that ASHA is an outstanding example of 
public-private partnership that merits continued funding and 
support.
    Section 169, in repealing the longstanding prohibition 
against funding for police training, opens the door for the 
kinds of abuses that led Congress to enact the prohibition in 
the first place. The association of the United States with 
human rights violations conducted by poorly-trained and 
undemocratic security forces in the 1960s and 1970s is part of 
the reason for enduring negative perceptions of our foreign aid 
program.
    Similarly, amendments to the Foreign Assistance Act made by 
section 170 would expand the purposes and objectives of defense 
articles and services provided by the United States in a manner 
that raises dangerous possibilities. These changes could leave 
the wrong perception that such articles and services may be 
used for external military aggression and for internal military 
repression.

Private and voluntary organizations

    We recognize and value the critical role of America's 
private and voluntary organizations and cooperatives in the 
foreign assistance arena. Our partnership with PVOs and 
cooperatives promotes people-to-people assistance that commands 
public support and leverages private resources. The work of 
these organizations not only reflects American values and 
generosity, but has proven to be an efficient and effective 
means of delivering assistance that has a positive and lasting 
impact on the lives of the poor and builds long-term 
friendships for the United States.
    Sections 315 and 317 of the bill would place increased 
burdens on PVOs and cooperatives, by increasing the amount of 
funds they would be required to raise from private sources and 
by narrowing the purposes for which grant aid could be used. In 
an era of shrinking resources, it simply does not make sense to 
penalize the very organizations that stretch our dollars the 
furthest.
    Successful amendments offered by Senator Pell seek to 
ensure that PVOs continue to play a central role in the 
provision of U.S. foreign assistance. Section 311(c) prevents 
cuts in development assistance from falling disproportionately 
on programs carried out by PVOs and cooperatives by requiring 
maintenance of the current percentage of development funding 
that is channeled through them. A modification to section 315 
reinstates the President's ability to waive, on a case-by-case 
basis, the requirement that PVOs receive at least 25 percent of 
their funding from outside sources. Under current law, that 
proportion is 20 percent, and there are a number of valuable 
and effective organizations that would be prohibited from 
participating in U.S. aid programs without this waiver.

Increased administrative burdens

    While increasing the President's flexibility in some areas, 
the bill imposes numerous conditions, restrictions, and 
reporting requirements that are unnecessary, expensive, and 
administratively burdensome. Section 3 of the bill sharply 
limits the allowable purposes of foreign assistance, leaving 
out such objectives as preventing environmental degradation, 
promoting family planning, expanding democracy and human 
rights, and alleviating the worst aspects of poverty.
    After eliminating the agency that has been primarily 
responsible for administering foreign assistance programs for 
the last 34 years, through adoption of the fiscal year 1996-99 
State Department authorization bill, the committee in this bill 
vastly increases the amount of information that the executive 
branch will be required to provide about foreign aid programs. 
Section 711 requires the President to submit, on an annual 
basis, assessments of ``policies regarding wage and price 
controls, State ownership of production and distribution, and 
control of financial institutions'', ``tariff levels, quotas, 
and the opportunity to repatriate capital and profits'', and 
``tax policies and rights of ownership and property'' in each 
of the recipient countries. We believe that the 
administration's increasingly limited diplomatic resources 
should be focused on creating aid programs that work, not on 
analyzing Nepalese tax policy.
    A number of country-specific sections in the bill create 
undue hurdles to the provision of foreign assistance. Perhaps 
section 501 is the most egregious example; it would prohibit 
Export-Import Bank loans and agricultural credits, and require 
the United States to vote against all multilateral bank loans, 
to any country of the former Soviet Union that was late on a 
debt payment to a private lender unless the loan was secured by 
revenues from the export of petroleum products, minerals, or 
other commodities. We fail to understand why the New 
Independent States should be held to a separate and higher 
standard for loans than other countries, especially when those 
loans help to expand U.S. exports.
Cargo preference

    Section 718 makes existing cargo preference requirements 
inapplicable to food assistance. This provision will seriously 
jeopardize the continued survival of the U.S. merchant marine 
and the benefits it brings to our economy and national 
security, costing thousands of jobs without saving a penny. It 
will mean turning over the carriage of commodities that are 
produced by American labor and financed by American taxpayers 
to foreign-flag, foreign-crewed ships. We believe that this 
bill is not the place to upset the delicate balance that was 
painstakingly negotiated in legislation under the jurisdiction 
of other committees.
    During mark-up, an amendment was offered by Senator 
Sarbanes that would have deleted section 718, thus maintaining 
current cargo preference requirements, and would have added a 
provision to require increased government-impelled shipping 
through Great Lakes ports, which are not currently serviced by 
ocean-going U.S.-flag vessels. It is our view that this 
amendment would have maintained the balance of benefits between 
American farmers and merchant mariners in all regions of the 
country, and we regret that it was not adopted.

United Nations

    We believe that United States participation in the United 
Nations is central to maintaining American leadership in the 
world and obtaining international cooperation to meet U.S. 
objectives and defend U.S. interests. The bill as originally 
proposed would have prohibited United States contributions to a 
large number of small, but highly successful U.N.-affiliated 
agencies requiring only modest contributions from the United 
States. These are not agencies to which the United States pays 
an assessed membership fee, but rather those to which the 
United States chooses to contribute voluntarily because they 
are judged to serve U.S. interests.
    A successful amendment to the bill, cosponsored by Senators 
Kerry, Pell, Sarbanes and Snowe, deleted that prohibition and 
provided $45 million in additional funding for the U.S. 
contribution to international organizations and programs that 
promote sustainable development. Among the agencies that may 
now receive funding are the UNEP Environment Fund, which 
supports the collection, assessment and dissemination of 
environmental data; the Montreal Protocol Multilateral Fund, 
which helps developing countries, assisted by U.S. technology 
exports, to reduce their use of ozone-depleting substances; the 
International Union for the Conservation of Nature, which plans 
strategies for conservation, evaluates environmental impact, 
and develops environmental law; the UN Framework Convention on 
Climate Change, a global forum for responding to new 
information and assessments relating to climate change; and the 
Intergovernmental Panel on Climate Change, the scientific body 
which provides such information and assessments.
    Even with the additional funding, money for international 
organizations and programs will remain extremely limited. While 
there are many U.N.-affiliated agencies that have worked 
effectively to build democracy and promote sustainable 
development for only a small U.S. contribution, we wish to 
express particular support for the International Fund for 
Agricultural Development, the U.N. Voluntary Fund for Victims 
of Torture, the U.N. Development Fund for Women (UNIFEM), and 
the World Food Program.
    As originally presented, the bill also would have 
prohibited contributions to the United Nations Population Fund 
(UNFPA). A successful amendment sponsored by Senator Feingold 
permits up to $35 million in contributions to the UNFPA, so 
long as such funds are not used in or for China, and so long as 
UNFPA's programs in China are not increased.

Multilateral development banks

    The administration requested authorization for U.S. 
participation in replenishments to three international 
financial institutions for fiscal year 1996: the International 
Development Association (IDA), the Asian Development Bank, and 
the successor to the Enhanced Structural Adjustment Facility. 
The bill as originally presented did not contain authority for 
any of them, and specifically prohibited contributions to IDA 
for FY 1997.
    While we support U.S. participation in these institutions, 
we recognize that tight budgetary constraints are likely to 
prevent the U.S. from making its full contributions in the next 
fiscal year. A successful amendment by Senator Feinstein 
provides full authorization for contributions to the Asian 
Development Bank, and a successful amendment by Senator 
Kassebaum eliminates the prohibition against contributions to 
IDA. It is our hope and expectation that if additional funds 
become available to the appropriators, they will make at least 
a small amount available for the U.S. contribution to these 
important institutions, which serve the poorest countries in 
the world.
                        Changes in Existing Law

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

                   The Foreign Assistance Act of 1961

          * * * * * * *

                                 PART I

        Chapter 1--Policy; Development Assistance Authorizations

    Sec. 101. General Policy.--(a) The Congress finds that 
fundamental political, economic, and technological changes have 
resulted in the interdependence of nations. The Congress 
declares that the individual liberties, economic prosperity, 
and security of the people of the United States are best 
sustained and enhanced in a community of nations which respect 
individual civil and economic rights and freedoms and which 
work together to use wisely the world's limited resources in an 
open and equitable international economic system. Furthermore, 
the Congress reaffirms the traditional humanitarian ideals of 
the American people and renews its commitment to assist people 
in developing countries to eliminate hunger, poverty, illness, 
and ignorance.
          * * * * * * *
    Sec. 104. Population and Health.--(a) Findings.--The 
Congress recognizes that poor health conditions and 
uncontrolled population growth can vitiate otherwise successful 
development efforts.
          * * * * * * *
     (f) Prohibition on Use of Funds for Abortions and 
Involuntary Sterilizations.--(1) None of the funds made 
available to carry out this part may be used to pay for the 
performance of abortions as a method of family planning or to 
motivate or coerce any person to practice abortions.
    (2) None of the funds made available to carry out this part 
may be used to pay for the performance of involuntary 
sterilizations as a method of family planning or to coerce or 
provide any financial incentive to any person to undergo 
sterilizations.
    (3) None of the funds made available to carry out this part 
may be used to pay for any biomedical research which relates, 
in whole or in part, to methods of, or the performance of, 
abortions or involuntary sterilization as a means of family 
planning.
    (4)(A) None of the funds made available to carry out this 
part may be used for any program, project, or activity that 
violates the laws of a foreign country concerning the 
circumstances under which abortion is permitted, regulated, or 
prohibited, or which seeks to alter the laws or policies in 
effect in any foreign country concerning the circumstances 
under which abortion is permitted, regulated, or prohibited.
    (B) Subparagraph (A) shall not apply to activities in 
opposition to coercive abortion or involuntary sterilization.
          * * * * * * *
    [Sec. 108. Private Sector Revolving Fund.--(a) The Congress 
finds that the development of private enterprise, including 
cooperatives, is a vital factor in the stable growth of 
developing countries and in the development and stability of a 
free, open, and equitable international economic system. It is 
therefore in the best interests of the United States to assist 
the development of the private sector in developing countries 
and to engage the United States private sector in that process. 
In order to promote such private sector development, the 
President is authorized to establish a revolving fund account 
in the United States Treasury. All funds deposited in such 
account shall, notwithstanding any provision in an 
appropriation Act to the contrary, be free from fiscal year 
limitations.
    [(b) Of the funds made available under this chapter in each 
of the fiscal years 1986 and 1987, up to $18,000,000 may be 
deposited in this account. Such funds used in accordance with 
the policies and authorities of this section shall be in 
addition to other funds available for private sector activities 
under other authorities in this Act. Any reflows and income 
arising from activities carried out pursuant to this section, 
including loan repayments and fee income (as provided in 
subsection (e) of this section), shall be deposited into the 
revolving fund and remain available to carry out the purposes 
of this section. All funds in such account may be invested in 
obligations of the United States.
    [(c)(1) The agency primarily responsible for administering 
this part is authorized to use the funds maintained in this 
revolving fund account to furnish assistance in furtherance of 
the policy of subsection (a) on such terms and conditions as it 
may determine. Amounts in the revolving fund account shall be 
available for obligation for assistance under this section only 
to such extent as may be provided in advance in appropriation 
Acts. Assistance may be provided under this section without 
regard to sections 604(a) and 620(r) of this Act.
    [(2) Assistance under this section may be provided only to 
support private sector activities which--
          [(A) are consistent with the United States 
        development assistance policies set forth in section 
        102 of this Act and with the development priorities of 
        the host country;
          [(B) are the types of activities for which assistance 
        may be provided under sections 103 through 106 of this 
        Act;
          [(C) will have a demonstration effect;
          [(D) will be innovative;
          [(E) are financially viable;
          [(F) will maximize the development impact appropriate 
        to the host country, particularly in employment and the 
        use of appropriate technology; and
          [(G) are primarily directed to making available to 
        small business enterprises and cooperatives necessary 
        support and services which are not otherwise generally 
        available.
In determining whether an enterprise is a small business 
enterprise, the agency primarily responsible for administering 
this part shall take into consideration the enterprise's total 
net fixed assets and number of employees, together with the 
relevant definition utilized by the host country government and 
the International Bank for Reconstruction and Development and 
other international organizations.
    [(3)(A) Not more than $3,000,000 may be made available 
under this section to support any one project.
    [(B) Not more than 50 per centum of the financial support 
for any project may be provided under this section, and a 
substantial portion of the financial support for a project 
assisted under this section must be provided by sources within 
the host country.
    [(C) Not more than 20 per centum of the assets of the 
revolving fund account under this section may be used to 
support projects in any one country.
    [(D) In order to maximize the impact on institution 
building, loans under this section shall be made primarily to 
intermediary entities which provide necessary support and 
services for private sector activities.
    [(E) Loans under this section shall be at or near the 
interest rate otherwise available to the recipient.
    [(d) (1) If at any time the assets of the revolving fund 
account exceeds $100,000,000, the President shall remit the 
amount in excess of $100,000,000 to the United States Treasury.
    [(2) As used in this section, ``assets'' includes amounts 
in the revolving fund account plus the value of investments 
made with amounts from the fund plus the current value of 
outstanding obligations under loans under this section.
    [(3) In addition to the requirement of paragraph (1), at 
the end of any fiscal year, the agency primarily responsible 
for administering this part may determine that amounts in the 
revolving fund are sufficient to permit the remittance to the 
United States Treasury of an amount equal to a portion or the 
total amount of appropriated funds deposited in the revolving 
fund. Any such remittance shall be deemed to be a decrease in 
the appropriated funds in the revolving fund. After remittance 
has been made of an amount equal to the total amount of 
appropriated funds, the revolving fund shall consist and be 
deemed to consist entirely of nonappropriated funds.
    [(e) A fee may be charged, where appropriate, in carrying 
out activities with funds from the revolving fund authorized in 
this section. The amount of any such fee shall be determined by 
the agency primarily responsible for administering this part.
    [(f) In the event the revolving fund is terminated, all 
unobligated money in the fund at the time of such termination 
shall be transferred to and become part of the miscellaneous 
receipts account of the Treasury.
    [(g) As part of its annual congressional presentation 
documents submitted to the Congress, the agency primarily 
responsible for administering this part shall include a 
description of projects proposed to be funded from the 
revolving fund account for that fiscal year. To the extent that 
projects are proposed for funding which are not contained in 
the annual congressional presentation documents, at least 
fifteen days' advance notification shall be provided to the 
Congress in accordance with section 634A of this Act.
    [(h) Not later than December 31 of each year, the President 
shall submit a comprehensive report which details all projects 
funded under this section during the previous fiscal year, all 
reflows to the revolving fund account, a status report on all 
projects currently contained in the fund's portfolio. Such 
reports shall include, but not be limited to, information 
regarding numbers and kinds of beneficiaries reached, amounts 
and kinds of benefits provided by the funded projects to 
targeted populations, and a justification for projects within 
the context of the goals and objectives of the United States 
development assistance program.
    [(i)(1) To carry out the purposes of subsection (a), in 
addition to the other authorities set forth in this section, 
the agency primarily responsible for administering this part is 
authorized to issue guarantees on such terms and conditions as 
it shall determine assuring against losses incurred in 
connection with loans made to projects that meet the criteria 
set forth in subsection (c). The full faith and credit of the 
United States is hereby pledged for the full payment and 
performance of such guarantees.
    [(2) Loans guaranteed under this subsection shall be on 
such terms and conditions as the agency may prescribe, except 
for the following:
          [(A) The agency shall issue guarantees only when it 
        is necessary to alleviate a credit market imperfection.
          [(B) Loans guaranteed shall provide for complete 
        amortization within a period not to exceed ten years 
        or, if the principal purpose of the guaranteed loan is 
        to finance the construction or purchase of a physical 
        asset with a useful life of less than ten years, within 
        a period not to exceed such useful life.
          [(C) No loan guaranteed to any one borrower may 
        exceed 50 percent of the cost of the activity to be 
        financed, or $3,000,000, whichever is less, as 
        determined by the agency.
          [(D) No loan may be guaranteed unless the agency 
        determines that the lender is responsible and that 
        adequate provision is made for servicing the loan on 
        reasonable terms and protecting the financial interest 
        of the United States.
          [(E) The fees earned from the loan guarantees issued 
        under this subsection shall be deposited in the 
        revolving fund account as part of the guarantee reserve 
        established under paragraph (5) of this subsection. 
        Fees shall be assessed at a level such that the fees 
        received, plus the funds from the revolving fund 
        account placed in the guarantee reserve satisfy the 
        requirements of paragraph (5). Fees shall be reviewed 
        every twelve months to ensure that the fees assessed on 
        new loan guarantees are at the required level.
          [(F) Any guarantee shall be conclusive evidence that 
        such guarantee has been properly obtained, and that the 
        underlying loan as contracted qualifies for such 
        guarantee. Except for fraud or material 
        misrepresentation for which the parties seeking payment 
        under such guarantee are responsible, such guarantee 
        shall be presumed to be valid, legal, and enforceable.
          [(G) The agency shall determine that the standards 
        used by the lender for assessing the credit risk of new 
        and existing guaranteed loans are reasonable. The 
        agency shall require that there be a reasonable 
        assurance of repayment before credit assistance is 
        extended.
          [(H) Commitments to guarantee loans may be made by 
        the agency only to the extent that the total loan 
        principal, any part of which is guaranteed, will not 
        exceed the amount specified in annual appropriations 
        Acts.
    [(3) To the extent that fees are not sufficient as 
specified under paragraph (2)(E) to cover expected future 
liabilities, appropriations are authorized to maintain an 
appropriate reserve.
    [(4) The losses guaranteed under this subsection may be in 
dollars or in other currencies. In the case of loans in 
currencies other than dollars, the guarantees issued shall be 
subject to an overall payment limitation expressed in dollars.
    [(5) The agency shall segregate in the revolving fund 
account and hold as a reserve an amount estimated to be 
sufficient to cover the agency's expected net liabilities on 
the loan guarantees outstanding under this subsection; except 
that the amount held in reserve shall not be less than 25 
percent of the principal amount of the agency's outstanding 
contingent liabilities on such guarantees. Any payments made to 
discharge liabilities arising from the loan guarantees shall be 
paid first out of the assets in the revolving fund account and 
next out of other funds made available for this purpose.]
SEC. 108. MICRO- AND SMALL-ENTERPRISE DEVELOPMENT CREDIT PROGRAM.

    (a) Findings and Policy.--The Congress finds and declares 
that--
          (1) the development of micro- and small enterprise, 
        including cooperatives, is a vital factor in the 
        private sector growth of developing countries and in 
        the development and stability of a free, open, and 
        equitable international economic system;
          (2) it is, therefore, in the best interests of the 
        United States to assist the development of the private 
        sector in developing countries and to engage the United 
        States private sector in that process; and
          (3) the support of private enterprise can be served 
        by programs providing credit, training, and technical 
        assistance for the benefit of micro- and small 
        enterprises.
    (b) Program.--To carry out the policy set forth in 
subsection (a), the President is authorized to provide 
assistance to increase the availability of credit to micro- and 
small enterprises lacking full access to credit, including 
through--
          (1) loans and guarantees to credit institutions for 
        the purpose of expanding the availability of credit to 
        micro- and small enterprises;
          (2) training programs for lenders in order to enable 
        them to better meet the credit needs of micro- and 
        small entrepreneurs; and
          (3) training programs for micro- and small 
        entrepreneurs in order to enable them to make better 
        use of credit and to better manage their enterprises.
          * * * * * * *
    Sec. 110. Cost-Sharing and Funding Limits.--No assistance 
shall be furnished by the United States Government to a country 
under sections 103 through 106 of this Act until the country 
provides assurances to the President, and the President is 
satisfied, that such country provide at least [25 per centum] 
30 per centum of the costs of the entire program, project, or 
activity with respect to which such assistance is to be 
furnished, except that such costs borne by such country may be 
provided on an ``in-kind'' basis.
          * * * * * * *
SEC. 129. PRIVATE FUNDING OF PRIVATE AND VOLUNTARY ORGANIZATIONS.

    (a) Restriction.--None of the funds made available to carry 
out this chapter may be made available to any United States 
private and voluntary organization, except any cooperative 
development organization, which obtains less than 25 per centum 
of its total annual funding for international activities from 
sources other than the United States Government.
    (b) Waiver.--The President may, on a case-by-case basis, 
waive the restriction established by subsection (a), after 
taking into account the effectiveness of the overseas 
development activities of the organization, its level of 
volunteer support, its financial viability and stability, and 
the degree of its dependence for its financial support on the 
United States Government.
          * * * * * * *
          Chapter 3--International Organizations and Programs

    Sec. 301. General Authority.--(a) When he determines it to 
be in the national interest, the President is authorized to 
make voluntary contributions on a grant basis to international 
organizations and to programs administered by such 
organizations, and in the case of the Indus Basin Development 
Fund administered by the International Bank for Reconstruction 
and Development to make grants and loans payable as to 
principal and interest in United States dollars and subject to 
the provisions of section 122(b), on such terms and conditions 
as he may determine, in order to further the purposes of this 
part.
          * * * * * * *
    Sec. 302. Authorization.--[(a)(1) There are authorized to 
be appropriated to the President $270,000,000 for fiscal year 
1986 and $236,084,000 for fiscal year 1987 for grants to carry 
out the purposes of this chapter, in addition to funds 
available under other Acts for such purposes. Of the amount 
appropriated for each of the fiscal years 1986 and 1987 
pursuant to these authorizations--
          [(A) 59.65 percent shall be for the United Nations 
        Development Program;
          [(B) 19.30 percent shall be for the United Nations 
        Children's Fund;
          [(C) 7.20 percent shall be for the International 
        Atomic Energy Agency, except that these funds may be 
        contributed to that Agency only if the Secretary of 
        State determines (and so reports to the Congress) that 
        Israel is not being denied its right to participate in 
        the activities of that Agency;
          [(D) 5.44 percent shall be for Organization of 
        American States development assistance programs;
          [(E) 3.51 percent shall be for the United Nations 
        Environment Program;
          [(F) 0.70 percent shall be for the World 
        Meteorological Organization;
          [(G) 0.70 percent shall be for the United Nations 
        Capital Development Fund;
          [(H) 0.35 percent shall be for the United Nations 
        Education and Training Program for Southern Africa;
          [(I) 0.18 percent shall be for the United Nations 
        Voluntary Fund for the Decade for Women;
          [(J) 0.07 percent shall be for the Convention on 
        International Trade in Endangered Species;
          [(K) 0.70 percent shall be for the World Food 
        Program;
          [(L) 0.18 percent shall be for the United Nations 
        Institute for Namibia;
          [(M) 0.12 percent shall be for the United Nations 
        Trust Fund for South Africa;
          [(N) 0.04 percent shall be for the United Nations 
        Voluntary Fund for Victims of Torture;
          [(O) 0.07 percent shall be for the United Nations 
        Industrial Development Organization;
          [(P) 0.55 percent shall be for the United Nations 
        Development Program Trust Fund To Combat Poverty and 
        Hunger in Africa;
          [(Q) 0.97 percent shall be for contributions to 
        international conventions and scientific organizations;
          [(R) 0.18 percent for the United Nations Center on 
        Human Settlements (Habitat); and
          [(S) 0.09 percent shall be for the World Heritage 
        Fund.
    [(2) The Congress reaffirms its support for the work of the 
Inter-American Commission on Human Rights. To permit such 
Commission to better fulfill its function of insuring 
observance and respect for human rights within this hemisphere, 
not less than $357,000 of the amount appropriated for fiscal 
year 1976 and $358,000 of the amount appropriated for fiscal 
year 1977, for contributions to the Organization of American 
States, shall be used only for budgetary support for the Inter-
American Commission on Human Rights.]
    (a)(1) There are authorized to be appropriated to the 
President, in addition to funds otherwise available for such 
purpose, $225,000,000 for fiscal year 1996, and $225,000,000 
for fiscal year 1997, for voluntary contributions under this 
chapter to international organizations and programs, of which 
amounts not less than $103,000,000 for each fiscal year shall 
be available only for the United Nations Children's Fund 
(UNICEF).
    (2) Funds appropriated pursuant to paragraph (1) are 
authorized to remain available until expended.
          * * * * * * *
    Sec. 306. Reports on International Organizations.--(a) The 
annual reports to the Congress under section 2 of the Act of 
September 21, 1950 (64 Stat. 902, 22 U.S.C. 262a), shall be 
submitted within nine months after the end of the fiscal year 
to which they relate.
    (b)(1) [The President shall submit semiannual reports to 
the Congress listing all voluntary contributions by the United 
States Government to international organizations. One of the 
semiannual reports shall be submitted no later than July 1 and 
shall list all contributions made during the first six months 
of the then current fiscal year. The other semiannual report 
shall be submitted no later than January 1 and shall list all 
contributions made during the last six months of the preceding 
fiscal year.] Not later than January 31 of each year, the 
President shall transmit a report to the appropriate 
congressional committees listing all voluntary contributions by 
the United States Government to international organizations 
during the preceding fiscal year. Each such report shall 
specify the Government agency making the voluntary 
contribution, the international organization to which the 
contribution was made, the amount and form of the contribution, 
and the purpose of the contribution. Contributions shall be 
listed on both an agency-by-agency basis and an organization-
by-organization basis.
    (2) In order to facilitate the preparation of the report 
required by paragraph (1), the head of any Government agency 
which makes a voluntary contribution to any international 
organization shall [promptly] report that contribution to the 
Director of the Office of Management and Budget on a quarterly 
basis.
    (3) As used in this subsection the term ``contribution'' 
means any contribution of any kind, including the furnishing of 
funds or other financial support, services of any kind 
(including the use of experts or other personnel) or 
commodities, equipment, supplies, or other material.
    (c) Justification of National Interest.--The President 
shall transmit as part of each report required by subsection 
(b)(1) a justification of the manner in which United States 
voluntary contributions to international organizations benefit 
United States national security or other national interests. 
This justification shall include, for each organization, the 
purpose and objectives of the United States contribution, a 
description of the benefits to United Stats national security 
or other national interests.
    [Sec. 307. Withholding of United States Proportionate Share 
for Certain Programs of International Organizations.--(a) 
Notwithstanding any other provision of law, none of the funds 
authorized to be appropriated by this chapter shall be 
available for the United States proportionate share for 
programs for Burma, Iraq, North Korea, Syria, Libya, Iran, 
Cuba, or the Palestine Liberation Organization or for projects 
whose purpose is to provide benefits to the Palestine 
Liberation Organization or entities associated with it.
    [(b) The Secretary of State--
          [(1) shall review, at least annually, the budgets and 
        accounts of all international organizations receiving 
        payments of any funds authorized to be appropriated by 
        this chapter; and
          [(2) shall report to the appropriate committees of 
        the Congress the amounts of funds expended by each such 
        organization for the purposes described in subsection 
        (a) and the amount contributed by the United States to 
        each such organization.
    [(c) The limitations of subsection (a) shall not apply to 
contributions to the International Atomic Energy Agency or the 
United Nations Children's Fund (UNICEF).]
SEC. 307. WITHHOLDING OF UNITED STATES PROPORTIONATE SHARE FOR PROGRAMS 
                    OF INTERNATIONAL ORGANIZATIONS.

    (a) Requirement To Withhold.--Funds authorized to be 
appropriated by this chapter shall not be available for the 
United States proportionate share for programs, projects, or 
activities for countries or organizations described in 
subsection (d). This prohibition applies notwithstanding any 
provision of law that earmarks funds under this chapter for a 
specified international organization or program.
    (b) Use of Funds Withheld.--Funds returned or not made 
available for programs or projects pursuant to subsection (a) 
shall be returned to the miscellaneous receipts account of the 
Treasury of the United States.
    (c) Obligations.--The President--
         (1) shall review, at least annually, the budgets and 
        accounts of all international organizations receiving 
        payments of any funds authorized to be appropriated by 
        this chapter; and
         (2) shall report to the appropriate congressional 
        committees the amounts of funds expended by each such 
        organization for programs or projects described in 
        subsection (d) and the amount contributed by the United 
        States to each such organization.
    (d) Programs and Projects Covered.--Subsection (a) applies 
with respect to programs, projects, or activities for Cuba, 
Iran, Libya, Iraq, North Korea, Sudan, Syria, and Burma.
          * * * * * * *
               Chapter 8--International Narcotics Control

          * * * * * * *

SEC. 490A. ANNUAL CERTIFICATION PROCEDURES AFTER SEPTEMBER 30, 1994.

    (a) Withholding of Bilateral Assistance and Opposition to 
Multilateral Development Assistance.--
          (1) Bilateral assistance.--Fifty percent of the 
        United States assistance allocated each fiscal year in 
        the report required by section 653 for each major 
        illicit drug producing country or major drug-transit 
        country shall be withheld from obligation and 
        expenditure, except as provided in [subsection (b)] 
        subsections (b) and (h).
          (2) Multilateral assistance.--The Secretary of the 
        Treasury shall instruct the United States Executive 
        Director of each multilateral development bank to vote, 
        on and after March 1 of each year, against any loan or 
        other utilization of the funds of their respective 
        institution to or for any major illicit drug producing 
        country or major drug-transit country, except as 
        provided in [subsection (b)] subsections (b) and (h). 
        For purposes of this paragraph, the term ``multilateral 
        development bank'' means the International Bank for 
        Reconstruction and Development, the International 
        Development Association, the Inter-American Development 
        Bank, the Asian Development Bank, the African 
        Development Bank, and the European Bank for 
        Reconstruction and Development.
    (b) Certification Procedure.--
          (1) What must be certified.--Subject to subsection 
        (d) and paragraph (6) of this subsection, and except as 
        provided for in subsection (h) the assistance withheld 
        from a country pursuant to subsection (a)(1) may be 
        obligated and expended, and the requirement of 
        subsection (a)(2) to vote against multilateral 
        development bank assistance to a country shall not 
        apply, if the President determines and certifies to the 
        Congress, at the time of the submission of the report 
        required by section 489A(a), that--
          * * * * * * *
          (6) Limitation.--Beginning with the annual 
        certification required on March 1, 1996, the President 
        may not make a certification under this paragraph with 
        respect to a country in any year which immediately 
        follows a period of two consecutive years in which such 
        certifications have been made with respect to that 
        country.
          * * * * * * *
    (d) Congressional Review.--Subsection (e) shall apply if, 
within 45 days of continuous session (within the meaning of 
section 601(b)(1) of the International Security Assistance and 
Arms Export Control Act of 1976) after receipt of a 
certification under subsection (b) or subsection (h), the 
Congress enacts a joint resolution disapproving the 
determination of the President contained in such certification.
    (e) Denial of Assistance for Countries Decertified.--(1) If 
the President does not make a certification under subsection 
(b) with respect to a country or the Congress enacts a joint 
resolution disapproving such certification, then until such 
time as the conditions specified in subsection (f)(1) are 
satisfied--
          [(1) funds] (A) funds may not be obligated for United 
        States assistance for that country, and funds 
        previously obligated for United States assistance for 
        that country may not be expended for the purpose of 
        providing assistance for that country; and
          [(2) the] (B) the requirement to vote against 
        multilateral development bank assistance pursuant to 
        subsection (a)(2) shall apply with respect to that 
        country, without regard to the date specified in that 
        subsection.
    (2) If the President does not make a certification under 
subsection (h) with respect to Colombia or the Congress enacts 
a joint resolution disapproving such certification, then until 
such time as the conditions specified in subsection (f)(1)(B) 
are satisfied, subparagraphs (A) and (B) of paragraph (1) shall 
apply.
    (f) Recertification.--
          (1) Time of recertification; congressional action.--
        Subsection (e) shall apply to a country described in 
        that subsection until--
                  [(A) the President] (A)(i) the President 
                makes a certification under subsection (b) with 
                respect to that country, and the Congress does 
                not enact a joint resolution under subsection 
                (d) disapproving the determination of the 
                President contained in that certification; or
                  [(B) the President] (ii) the President 
                submits, at any other time, a certification 
                described in subparagraph (A) and (B) of 
                subsection (b)(1) with respect to such country, 
                and the Congress enacts a joint resolution 
                approving the determination of the President 
                contained in that certification[.] ; or
                  (B) the President makes a certification under 
                subsection (h) with respect to Colombia, and 
                the Congress does not enact a joint resolution 
                under subsection (d) disapproving the 
                determination of the President contained in 
                that certification.
          (2) Congressional review procedures.--(A) Any joint 
        resolution under this section shall be considered in 
        the Senate in accordance with the provisions of section 
        601(b) of the International Security Assistance and 
        Arms Export Control Act of 1976.
          (B) For the purpose of expediting the consideration 
        and enactment of joint resolutions under this section, 
        a motion to proceed to the consideration of any such 
        joint resolution after it has been reported by the 
        appropriate committee shall be treated as highly 
        privileged in the House of Representatives.
          * * * * * * *
  (h) Special Determination and Certification Procedures for 
Colombia.--For fiscal years 1996 and 1997, the following 
certification procedures shall apply for Colombia in lieu of 
the procedures provided for in subsection (b)(1):
          (1) What must be certified.--Subject to subsection 
        (d), the assistance withheld from Colombia pursuant to 
        subsection (a)(1) may be obligated and expended, and 
        the requirement of subsection (a)(2) to vote against 
        multilateral development bank assistance to or for a 
        country shall not apply with respect to Colombia--
                  (A)(i) for fiscal year 1996 if the President 
                determines and certifies to the Congress by 
                March 1, 1996, the matters set forth in 
                paragraph (2), and
                  (ii) for fiscal year 1997 if the President 
                determines and certifies to the Congress by 
                March 1, 1997, the matters set forth in 
                paragraph (3); or
                  (B) for either fiscal year 1996 or fiscal 
                year 1997, if the President determines and 
                certifies to the Congress by March 1 of the 
                relevant fiscal year that the vital national 
                interests of the United States require that the 
                assistance withheld pursuant to subsection 
                (a)(1) be provided and that the United States 
                not vote against multilateral development bank 
                assistance for that country pursuant to 
                subsection (a)(2).
          (2) Matters required to be certified for fiscal year 
        1996.--The matters referred to in paragraph (1)(A) are:
                  (A) That the Government of Colombia has made 
                substantial progress in the following matters 
                specifically committed to by the President of 
                Colombia:
                          (i) Investigating contributions by 
                        drug traffickers to political parties 
                        in Colombia.
                          (ii) Providing funding for a 
                        sustainable alternative development 
                        program to encourage Colombian farmers 
                        to grow legal crops.
                          (iii) Utilizing the law enforcement 
                        resources of Colombia to investigate, 
                        capture, convict, and imprison major 
                        drug lords in Colombia and their 
                        accomplices.
                          (iv) Implementing and funding a 
                        proposed plan for the improvement of 
                        the administration of the Ministry of 
                        Justice of Colombia.
                          (v) Acting effectively to confiscate 
                        profits from activities related to 
                        illegal drugs and drug trafficking.
                          (vi) Enacting legislation to 
                        implement the United Nations Convention 
                        Against Illicit Traffic in Narcotic 
                        Drugs and Psychotropic Substances.
                          (vii) Dismantling the infrastructure 
                        in Colombia that is used for processing 
                        illegal drugs, interdicting the 
                        chemicals used for such processing, and 
                        seizing or disabling vehicles 
                        (including airplanes and ships) used to 
                        transport processed illegal drugs.
                          (viii) Investing in technology to 
                        improve surveillance of airports, 
                        waterways, and seaports in Colombia.
                          (ix) Tightening the law enforcement 
                        capabilities and commencing 
                        construction of an installation for the 
                        Colombia Coast Guard on San Andres 
                        Island, Colombia, in order to provide 
                        effective surveillance of airplane and 
                        ship traffic that departs from the 
                        island.
                          (x) Improving the aircraft detection 
                        and interception systems of Colombia, 
                        including the purchase of aircraft 
                        detectors.
                          (xi) Encouraging the adoption of an 
                        Inter-American convention to ban the 
                        establishment of a financial safe haven 
                        in any country in the Western 
                        Hemisphere.
                  (B) That the Government of Colombia has 
                accomplished the following matters specifically 
                committed to by the President of Colombia:
                          (i) The implementation of necessary 
                        reforms to increase the sentences 
                        served by drug traffickers so that the 
                        penalties be commensurate with the 
                        serious nature of their crimes and to 
                        remove loopholes for such traffickers 
                        to enter into lenient plea bargaining 
                        arrangements.
                          (ii) The creation of an effective 
                        investigation unit to detect and bring 
                        to prosecution individuals in Colombia 
                        who engage in corrupt activities 
                        related to drugs and drug trafficking.
                          (iii) The implementation of 
                        legislation to prohibit money 
                        laundering.
                          (iv) Implementation of Plan 
                        Resplandor, which calls for the 
                        destruction of at least 37,000 hectares 
                        of coca and poppy plants in Colombia by 
                        January 1, 1996.
          (3) Matters required to be certified for fiscal year 
        1997.--The matters referred to in paragraph (1)(B) are:
                  (A) That the Government of Colombia continues 
                to make substantial progress with respect to 
                the following matters specifically committed to 
                by the President of Colombia:
                          (i) Investigating contributions by 
                        drug traffickers to political parties 
                        in Colombia and prosecuting those found 
                        responsible for such contributions or 
                        the acceptance of the same.
                          (ii) Providing funding for a 
                        sustainable alternative development 
                        program to encourage Colombian farmers 
                        to grow legal crops.
                          (iii) Utilizing the law enforcement 
                        resources of Colombia to investigate, 
                        capture, convict, and imprison major 
                        drug lords in Colombia and their 
                        accomplices.
                          (iv) Implementing and funding fully a 
                        proposed plan for the improvement of 
                        the administration of the Ministry of 
                        Justice of Colombia.
                          (v) Acting effectively to confiscate 
                        profits from activities related to 
                        illegal drugs and drug trafficking.
                          (vi) Enforcing effectively a statute 
                        prohibiting money laundering.
                          (vii) Implementing necessary reforms 
                        to make drug traffickers' sentences 
                        commensurate with the nature of their 
                        crimes and to eliminate loopholes by 
                        which such traffickers enter into 
                        lenient plea bargaining arrangements.
                          (viii) Deploying an effective 
                        investigation unit to detect and bring 
                        to prosecution individuals in Colombia 
                        who engage in corrupt activities 
                        related to illegal drugs and drug 
                        trafficking.
                          (ix) Dismantling the infrastructure 
                        in Colombia that is used for processing 
                        illegal drugs, interdicting the 
                        chemicals used for such processing, and 
                        seizing or disabling vehicles 
                        (including airplanes and ships) used to 
                        transport processed illegal drugs.
                          (x) Investing in technology to 
                        improve surveillance of airports, 
                        waterways, and seaports in Colombia.
                          (xi) Improving the aircraft detection 
                        and interception systems of Colombia 
                        and utilizing such systems.
                          (xii) Encouraging the adoption of an 
                        Inter-American convention to ban the 
                        establishment of a financial safe haven 
                        in any country in the Western 
                        Hemisphere.
                  (B) That the Government of Colombia has 
                accomplished the following matters specifically 
                committed to by the President of Colombia:
                          (i) The enactment of legislation to 
                        implement the United Nations Convention 
                        Against Illicit Traffic in Narcotic 
                        Drugs and Psychotropic Substances.
                          (ii) The destruction of all illicit 
                        crops, estimated at 70,000 hectares.
                          (iii) The construction of an 
                        installation for the Colombia Coast 
                        Guard on San Andres Island, Colombia, 
                        in order to provide effective 
                        surveillance of airplane and ship 
                        traffic that departs from the island.
          (4) Reports.--The Secretary of State shall submit to 
        the appropriate congressional committees a report--
                  (A) not later than September 1, 1995, on the 
                progress and accomplishments made by the 
                Government of Colombia in the matters set forth 
                in paragraph (2); and
                  (B) not later than September 1, 1996, on the 
                progress and accomplishments made by the 
                Government of Colombia in the matters set forth 
                in paragraph (3).
  (i) Additional Sanctions.--
          (1) Applicability.--Notwithstanding any other 
        provision of law, and after transmitting the notice 
        provided for in paragraph (3), in any instance where 
        the President does not make a determination regarding a 
        major illicit drug-producing country or major drug-
        transit country pursuant to subsection (b) or (h), or 
        the Congress enacts a joint resolution disapproving 
        such certification, the President, in addition to those 
        actions required by subsection (a), may take any or all 
        of the following actions that the President deems 
        appropriate to achieve the objectives of this section:
                  (A) Suspension of bilateral assistance.--
                Suspend all funds, or any combination of funds, 
                activities, or programs, authorized under the 
                Foreign Assistance Act of 1961 or the Arms 
                Export Control Act.
                  (B) Export-import bank.--Suspend financing by 
                the Export-Import Bank of the United States 
                under the Export-Import Bank Act of 1945.
                  (C) Licenses for commercial arms exports.--
                Suspend the obligation or expenditure of all 
                funds to license the commercial export of items 
                on the United States Munitions List under 
                section 38 of the Arms Export Control Act.
                  (D) Military activities.--Suspend the 
                obligation and expenditure of all funds 
                expended for purposes of carrying out military 
                activities in Colombia or that benefit 
                Colombia, including joint military activities.
                  (E) Exclusion from entry into the united 
                states.--Take all reasonable steps provided by 
                law to ensure that public officials of such 
                country, regardless of rank, who are implicated 
                in drug-related corruption, their immediate 
                relatives, and their business partners are not 
                permitted entry into the United States, 
                consistent with the provisions of the 
                Immigration and Nationality Act (8 U.S.C. 1101 
                et seq.), until the completion by the 
                government of that country of an investigation 
                into the drug-related corruption of the 
                official that is satisfactory to the Secretary 
                of State and the Attorney General of the United 
                States.
                  (F) Trade preferences.--
                          (i) Andean trade preference act.--
                        Withdraw the designation of such 
                        country as a beneficiary country under 
                        section 203 of the Andean Trade 
                        Preference Act (19 U.S.C. 3202), if 
                        applicable, pursuant to the procedures 
                        set forth in subsection (e) of that 
                        section.
                          (ii) Trade act of 1974.--Terminate 
                        the designation of such country as a 
                        beneficiary developing country under 
                        section 502 of the Trade Act of 1974 
                        (19 U.S.C. 2462), pursuant to the 
                        procedures set forth in subsection 
                        (a)(2) of that section.
                          (iii) Free trade agreements.--Deny 
                        such country participation in the 
                        discussion or implementation of a free 
                        trade agreement involving Western 
                        Hemisphere countries, if applicable.
          (2) Sense of the congress regarding participation in 
        free trade agreements.--It is the sense of the Congress 
        that--
                  (A) the United States should not extend 
                tariff or quota treatment equivalent to that 
                accorded to members of the North American Free 
                Trade Agreement, or extend participation in the 
                North American Free Trade Agreement, to any 
                major drug-producing country or major drug-
                transit country not certified under subsection 
                (b) or (h); and
                  (B) such a country should not be allowed to 
                participate in the discussion or implementation 
                of a free trade agreement involving Western 
                Hemisphere countries.
          (3) Requirements for imposition and termination of 
        sanctions.--
                  (A) Imposition of sanctions.--
                          (i) Congressional notification.--The 
                        President shall impose sanctions under 
                        this subsection by transmitting to the 
                        appropriate congressional committees a 
                        notice setting forth the sanctions to 
                        be imposed.
                          (ii) Effective date.--Any sanctions 
                        selected by the President to be imposed 
                        under this subsection shall take effect 
                        7 calendar days after the notice has 
                        been received by the Congress.
                  (B) Termination of sanctions.--(i) Sanctions 
                imposed under this subsection shall terminate 
                15 calendar days after the date on which the 
                President transmits to the appropriate 
                congressional committees a notice terminating 
                the sanctions.
                  (ii) Upon the termination of sanctions under 
                paragraph (1)(F), any trade designation 
                withdrawn or terminated under paragraph (1)(F) 
                shall be reinstated pursuant to the provisions 
                of the applicable law under which the trade 
                benefits were extended.''.
SEC. 490B. REPORTS ON ERADICATION OF PRODUCTION AND TRAFFICKING IN 
                    NARCOTIC DRUGS AND MARIJUANA.

  (a) In General.--Not later than January 30 and June 30 of 
each year, the President shall submit to the appropriate 
congressional committees a report on the progress made by the 
United States in eradicating production of and trafficking in 
illicit drugs. The report shall be submitted in unclassified 
form with a classified annex, if required.
  (b) Report Elements.--Each report under subsection (a) shall 
include the following:
          (1) A description of the actions taken by the United 
        States during the 6-month period preceding the date of 
        the report--
                  (A) to assist countries in which illicit 
                drugs are produced in arresting, convicting, 
                and imprisoning individuals and groups that 
                produce such drugs; and
                  (B) to assist countries through which illicit 
                drugs destined for the United States are 
                shipped in arresting, convicting, and 
                imprisoning individuals and groups that ship 
                such drugs.
          (2) A description of other actions taken by the 
        United States during that period--
                  (A) to assist countries in which cocaine is 
                produced in eradicating the production of coca; 
                and
                  (B) to decrease the flow of illicit drugs 
                into the United States.
          (3) An assessment of the effectiveness of the actions 
        covered by paragraphs (1) and (2).
          (4) A description of the major drug trafficking 
        organizations that operate in the United States and a 
        plan that sets forth the manner in which the law 
        enforcement resources of the United States will be 
        utilized to dismantle such organizations.
          (5) A statement of the number of deaths due to 
        illicit drugs (including deaths due to drug-related 
        murders and deaths by drug-induced overdoses) in the 
        United States during that period.
          (6) A statement of the number of arrests and 
        incarcerations related to illicit drugs in the United 
        States during that period.
  (c) Requirement for January 30, 1996, Report.--In addition to 
the matters set forth in subsection (b), the report submitted 
by the President under subsection (a) for January 30, 1996, 
shall include an assessment of the capability of the United 
States to eradicate coca production in the Western Hemisphere, 
including--
          (1) an assessment of whether or not complete 
        eradication of coca production in the Western 
        Hemisphere is technologically feasible; and
          (2) if eradication of such production is considered 
        feasible, an assessment of--
                  (A) the resources (including any herbicides 
                and aircraft) required for the eradication;
                  (B) the environmental consequences of the 
                utilization of any herbicide proposed for use 
                in the eradication;
                  (C) the time required for completion of the 
                eradication; and
                  (D) the cost of the eradication.
  (d) Definitions.--As used in this section--
          (1) The term ``illicit drugs'' means marihuana and 
        narcotic drugs.
          (2) The term ``marijuana'' has the meaning given such 
        term in section 102(16) of the Controlled Substances 
        Act (21 U.S.C. 802(16)).
          (3) The term ``narcotic drug'' has the meaning given 
        such term in section 102(17) of such Act (21 U.S.C. 
        802(17)).
          * * * * * * *
              Chapter 9--International Disaster Assistance

          * * * * * * *
    Sec. 492. Authorization.--[(a) There are authorized to be 
appropriated to the President to carry out section 491, 
$25,000,000 for the fiscal year 1986 and $25,000,000 for the 
fiscal year 1987. Amounts appropriated under this section are 
authorized to remain available until expended.] (a) There are 
authorized to be appropriated to the President to carry out 
section 491, in addition to funds otherwise available for such 
purposes, $200,000,000 for fiscal year 1996 and $200,000,000 
for fiscal year 1997.
          * * * * * * *

                                PART II

                           Chapter 1--Policy

          * * * * * * *
    Sec. 502. Utilization of Defense Articles and Services.--
Defense articles and defense services to any country shall be 
furnished [solely] for internal security (including for law 
enforcement purposes), for legitimate self-defense, to permit 
the recipient country to participate in regional or collective 
arrangements or measures consistent with the Charter of the 
United Nations, or otherwise to permit the recipient country to 
participate in collective measures requested by the United 
Nations for the purpose of maintaining or restoring 
international peace and security, or for the purpose of 
assisting foreign military forces in less developed friendly 
countries (or the voluntary efforts of personnel of the Armed 
Forces of the United States in such countries) to construct 
public works and to engage in other activities helpful to the 
economic and social development of such friendly countries. It 
is the sense of the Congress that such foreign military forces 
should not be maintained or established solely for civic action 
activities and that such civic action activities not 
significantly detract from the capability of the military 
forces to perform their military missions and be coordinated 
with and form part of the total economic and social development 
effort.
    [Sec. 502A. Excess Defense Articles.--Excess defense 
articles shall be provided whenever possible rather than 
providing such articles by the procurement of new items.]
          * * * * * * *

                     Chapter 2--Military Assistance

    Sec. 503. * * *
          * * * * * * *
    Sec. 506. Special Authority.--(a)(1) If the President 
determines and reports to the Congress in accordance with 
section 652 of this Act that--
          (A) an unforeseen emergency exists which requires 
        immediate military assistance to a foreign country or 
        international organization; and
          (B) the emergency requirement cannot be met under the 
        authority of the Arms Export Control Act or any other 
        law except this section;
he may direct, for the purposes of this part, the drawdown of 
defense articles from the stocks of the Department of Defense, 
defense services of the Department of Defense, and military 
education and training, of an aggregate value of not to exceed 
[$75,000,000] $100,000,000 in any fiscal year.
    (2)(A) If the President determines and reports to the 
Congress in accordance with section 652 of this Act that it is 
in the national interest of the United States to draw down 
[defense articles from the stocks of the Department of Defense, 
defense services of the Department of Defense, and military 
education and training, he may direct--] articles and services 
from the inventory and resources of any agency of the United 
States Government and military education and training from the 
Department of Defense, the President may direct the drawdown of 
such articles, services, and military education and training--
          [(i) the drawdown of such articles, services, and the 
        provision of such training for the purposes and under 
        the authorities of chapters 8 and 9 of part I, as the 
        case may be; and
          [(ii) the drawdown of defense services for the 
        purposes and under the authorities of the Migration and 
        Refugee Assistance Act of 1962.]
          (i) for the purposes and under the authorities of--
                  (I) chapter 8 of part I (relating to 
                international narcotics control assistance);
                  (II) chapter 9 of part I (relating to 
                international disaster assistance); or
                  (III) the Migration and Refugee Assistance 
                Act of 1962; or
          (ii) for the purposes of providing such articles, 
        services, and military education and training to 
        Vietnam, Cambodia, and Laos as the President determines 
        are necessary--
                  (I) to support efforts to locate and 
                repatriate members of the United States Armed 
                Forces and civilians employed directly or 
                indirectly by the United States Government who 
                remain unaccounted for from the Vietnam War; 
                and
                  (II) to ensure the safety of United States 
                Government personnel engaged in such 
                cooperative efforts and to support Department 
                of Defense-sponsored humanitarian projects 
                associated with such efforts.
    (B) An aggregate value of not to exceed [$75,000,000 in any 
fiscal year of defense articles, defense services, and military 
education and training may be provided pursuant to subparagraph 
(A) of this paragraph.] $150,000,000 in any fiscal year of such 
articles, services, and military education and training may be 
provided pursuant to subparagraph (A) of this paragraph--
          (i) not more than $75,000,000 of which may be 
        provided from the drawdown from the inventory and 
        resources of the Department of Defense;
          (ii) not more than $75,000,000 of which may be 
        provided pursuant to clause (i)(I) of such 
        subparagraph; and
          (iii) not more than $15,000,000 of which may be 
        provided to Vietnam, Cambodia, and Laos pursuant to 
        clause (ii) of such subparagraph.
    (b)(1) The authority contained in this section shall be 
effective for any such emergency only upon prior notification 
to the Committee on Foreign Affairs of the House of 
Representatives, the Committee on Foreign Relations of the 
Senate, and the Committee on Appropriations of each House of 
Congress. In the case of drawdowns authorized by subclauses (I) 
and (III) of subsection (a)(2)(A)(i), notifications shall be 
provided to those committees at least 15 days in advance in 
accordance with the procedures applicable to reprogramming 
notifications under section 634A.
          * * * * * * *
    Sec. 514. Stockpiling of Defense Articles for Foreign 
Countries.--(a) No defense article in the inventory of the 
Department of Defense which is set aside, reserved, or in any 
way earmarked or intended for future use by any foreign country 
may be made available to or for use by any foreign country 
unless such transfer is authorized under this Act or the Arms 
Export Control Act, or any subsequent corresponding 
legislation, and the value of such transfer is charged against 
funds authorized under such legislation or against the 
limitations specified in such legislation, as appropriate, for 
the fiscal period in which such defense article is transferred. 
For purposes of this subsection, ``value'' means the 
acquisition cost plus crating, packing, handling, and 
transportation costs incurred in carrying out this section.
    (b)(1) The value of defense articles to be set aside, 
earmarked, reserved, or intended for use as war reserve stocks 
for allied or other foreign countries (other than for purposes 
of the North Atlantic Treaty Organization [or in the 
implementation of agreements with Israel]) in stockpiles 
located in foreign countries may not exceed in any fiscal year 
an amount that is specified in security assistance authorizing 
legislation for that fiscal year.
    [(2) The value of such additions to stockpiles in foreign 
countries shall not exceed a total of $200,000,000 for 
stockpiles in Israel for fiscal years 1994 and 1995, up to 
$40,000,000 may be made available for stockpiles in the 
Republic of Korea, and up to $10,000,000 may be made available 
for stockpiles in Thailand for fiscal year 1995.]
    (2)(A) The value of such additions to stockpiles of defense 
articles in foreign countries shall not exceed $50,000,000 for 
each of the fiscal years 1996 and 1997.
    (B) Of the amount specified in subparagraph (A) for each of 
the fiscal years 1996 and 1997, not more than $40,000,000 may 
be made available for stockpiles in the Republic of Korea and 
not more than $10,000,000 may be made available for stockpiles 
in Thailand.
    [(c) Except for stockpiles in existence on June 30, 1976 
and for stockpiles located in the Republic of Korea, Thailand, 
or countries which are members of the North Atlantic Treaty 
Organization, or major non-NATO allies, no stockpile may be 
located outside the boundaries of a United States military base 
or a military base used primarily by the United States.]
    (c) Location of Stockpiles of Defense Articles.--
          (1) Limitation.--Except as provided in paragraph (2), 
        no stockpile of defense articles may be located outside 
        the boundaries of a United States military base or a 
        military base used primarily by the United States.
          (2) Exceptions.--Paragraph (1) shall not apply with 
        respect to stockpiles of defense articles located in 
        the Republic of Korea, Thailand, any country that is a 
        member of the North Atlantic Treaty Organization, any 
        country that is a major non-NATO ally, or any other 
        country the President may designate. At least 15 days 
        before designating a country pursuant to the last 
        clause of the preceding sentence, the President shall 
        notify the congressional committees specified in 
        section 634A(a) in accordance with the procedures 
        applicable to reprogramming notifications under that 
        section.
          * * * * * * *
    Sec. 515. Overseas Management of Assistance and Sales 
Programs.--(a) In order to carry out his responsibilities for 
the management of international security assistance programs 
conducted under this chapter, chapter 5 of this part, and the 
Arms Export Control Act, the President may assign members of 
the Armed Forces of the United States to a foreign country to 
perform one or more of the following functions:
          (1) equipment and services case management;
          (2) training management;
          (3) program monitoring;
          (4) evaluation and planning of the host government's 
        military capabilities and requirements;
          (5) administrative support;
          (6) promoting rationalization, standardization, 
        interoperability, and other defense cooperation 
        measures [among members of the North Atlantic Treaty 
        Organization and with the Armed Forces of Japan, 
        Australia, and New Zealand]; and
          (7) liaison functions exclusive of advisory and 
        training assistance.
          * * * * * * *
    [Sec. 516. Modernization of Defense Capabilities of 
Countries of NATO's Southern Flank.--(a) Authority To Transfer 
Excess Defense Articles.--Notwithstanding any other provision 
of law and subject to subsection (b), the President may 
transfer (1) to those member countries of the North Atlantic 
Treaty Organization (NATO) on the southern flank of NATO which 
are eligible for United Stats security assistance and which are 
integrated into NATO's military structure, (2) to major non-
NATO allies on the southern and southeastern flank of NATO 
which are eligible for United States security assistance, and 
(3) to those countries which, as of October 1, 1990, 
contributed armed forces to deter Iraqi aggression in the 
Arabian Gulf, and which either received Foreign Military 
Financing (FMF) assistance in fiscal year 1990 or are in the 
Near East Region and received Foreign Military Financing (FMF) 
assistance in fiscal year 1991 or fiscal year 1992, such excess 
defense articles as the President determines necessary to help 
modernize the defense capabilities of such countries. Such 
excess defense articles may be transferred without cost to the 
recipient countries. Transfers to recipient countries under 
this subsection shall be consistent with the policy framework 
for the Eastern Mediterranean region established in section 
620C of this Act.
    [(b) Limitations on Transfers.--The President may transfer 
excess defense articles under this section only if--
          [(1) the equipment is drawn from existing stocks of 
        the Department of Defense;
          [(2) no funds available to the Department of Defense 
        for the procurement of defense equipment are expended 
        in connection with the transfer;
          [(3) the President determines that the transfer of 
        the excess defense articles will not have an adverse 
        impact on the military readiness of the United States; 
        and
          [(4) the President first considers the effects of the 
        transfer of the excess defense articles on the national 
        technology and industrial base, particularly the 
        extent, if any, to which the transfer reduces the 
        opportunities of entities in the national technology 
        and industrial base to sell new equipment to the 
        country or countries to which the excess defense 
        articles are transferred.
    [(c) Notification to Committees of Congress.--The President 
may not transfer excess defense articles under this section 
until 30 days after he has notified the Committees on Armed 
Services and Foreign Relations of the Senate and the Committees 
on Armed Services and Foreign Affairs of the House of 
Representatives of the proposed transfer. This notification 
shall include a certification of the need for the transfer and 
an assessment of the impact of the transfer on the military 
readiness of the United States.
    [(d) Waiver or Retirement for Reimbursement of DOD 
Expenses.--Section 632(d) shall not apply with respect to 
transfers of excess defense articles under this section.
    [(e) Definition.--As used in subsection (a), the term 
``member countries of the North Atlantic Treaty Organization 
(NATO) on the southern flank of NATO'' means Greece, Italy, 
Portugal, Spain, and Turkey.
    [(f) Duration of Authority.--The authority of this section 
shall be effective during fiscal years 1992 through 1996.]
SEC. 516. AUTHORITY TO TRANSFER EXCESS DEFENSE ARTICLES.

  (a) Authorization.--The President is authorized to transfer 
excess defense articles under this section to countries for 
which receipt of such articles was justified pursuant to the 
annual congressional presentation documents for military 
assistance programs, or for programs under chapter 8 of part I 
of this Act, submitted under section 634 of this Act, or for 
which receipt of such articles was separately justified to 
Congress, for the fiscal year in which the transfer is 
authorized.
  (b) Limitations on Transfers.--The President may transfer 
excess defense articles under this section only if--
          (1) such articles are drawn from existing stocks of 
        the Department of Defense;
          (2) funds available to the Department of Defense for 
        the procurement of defense equipment are not expended 
        in connection with the transfer;
          (3) the transfer of such articles will not have an 
        adverse impact on the military readiness of the United 
        States;
          (4) with respect to a proposed transfer of such 
        articles on a grant basis, such a transfer is 
        preferable to a transfer on a sales basis, after taking 
        into account the potential proceeds from, and 
        likelihood of, such sales, and the comparative foreign 
        policy benefits that may accrue to the United States as 
        the result of a transfer on either a grant or sales 
        basis;
          (5) the President determines that the transfer of 
        such articles will not have an adverse impact on the 
        national technology and industrial base and, 
        particularly, will not reduce the opportunities of 
        entities in the national technology and industrial base 
        to sell new or used equipment to the countries to which 
        such articles are transferred; and
          (6) the transfer of such articles is consistent with 
        the policy framework for the Eastern Mediterranean 
        established under section 620C of this Act.
  (c) Terms of Transfers.--
          (1) No cost to recipient country.--Excess defense 
        articles may be transferred under this section without 
        cost to the recipient country.
          (2) Priority.--Notwithstanding any other provision of 
        law, the delivery of excess defense articles under this 
        section to member countries of the North Atlantic 
        Treaty Organization (NATO) on the southern and 
        southeastern flank of NATO and to major non-NATO allies 
        on such southern and southeastern flank shall be given 
        priority to the maximum extent feasible over the 
        delivery of such excess defense articles to other 
        countries.
  (d) Waiver of Requirement for Reimbursement of Department of 
Defense Expenses.--Section 632(d) shall not apply with respect 
to transfers of excess defense articles (including 
transportation and related costs) under this section.
  (e) Transportation and Related Costs.--
          (1) In general.--Except as provided in paragraph (2), 
        funds available to the Department of Defense may not be 
        expended for crating, packing, handling, and 
        transportation of excess defense articles transferred 
        under the authority of this section.
          (2) Exception.--The President may provide for the 
        transportation of excess defense articles without 
        charge to a country for the costs of such 
        transportation if--
                  (A) it is determined that it is in the 
                national interest of the United States to do 
                so;
                  (B) the recipient is a developing country 
                receiving less than $10,000,000 of assistance 
                under chapter 5 of part II of this Act 
                (relating to international military education 
                and training) or section 23 of the Arms Export 
                Control Act (22 U.S.C. 2763; relating to the 
                Foreign Military Financing program) in the 
                fiscal year in which the transportation is 
                provided;
                  (C) the total weight of the transfer does not 
                exceed 25,000 pounds; and
                  (D) such transportation is accomplished on a 
                space available basis.
    (f) Advance Notification to Congress for Transfer of 
Certain Excess Defense Articles.--
          (1) In general.--The President may not transfer 
        excess defense articles that are significant military 
        equipment (as defined in section 47(9) of the Arms 
        Export Control Act) or excess defense articles valued 
        (in terms of original acquisition cost) at $7,000,000 
        or more, under this section or under the Arms Export 
        Control Act (22 U.S.C. 2751 et seq.) until 15 days 
        after the date on which the President has provided 
        notice of the proposed transfer to the congressional 
        committees specified in section 634A(a) in accordance 
        with procedures applicable to reprogramming 
        notifications under that section.
          (2) Contents.--Such notification shall include--
                  (A) a statement outlining the purposes for 
                which the article is being provided to the 
                country, including whether such article has 
                been previously provided to such country;
                  (B) an assessment of the impact of the 
                transfer on the military readiness of the 
                United States;
                  (C) an assessment of the impact of the 
                transfer on the national technology and 
                industrial base and, particularly, the impact 
                on opportunities of entities in the national 
                technology and industrial base to sell new or 
                used equipment to the countries to which such 
                articles are to be transferred; and
                  (D) a statement describing the current value 
                of such article and the value of such article 
                at acquisition.
    (g) Aggregate Annual Limitation.--The aggregate value of 
excess defense articles transferred to countries under this 
section in any fiscal year may not exceed $350,000,000.
    (h) Congressional Presentation Documents.--Documents 
described in subsection (a) justifying the transfer of excess 
defense articles shall include an explanation of the general 
purposes of providing excess defense articles as well as a 
table which provides an aggregate annual total of transfers of 
excess defense articles in the preceding year by country in 
terms of offers and actual deliveries and in terms of 
acquisition cost and current value. Such table shall indicate 
whether such excess defense articles were provided on a grant 
or sale basis.
    (i) Excess Coast Guard Property.--For purposes of this 
section, the term `excess defense articles' shall be deemed to 
include excess property of the Coast Guard, and the term 
`Department of Defense' shall be deemed, with respect to such 
excess property, to include the Coast Guard.
    [Sec. 517. Modernization of Counternarcotics Capabilities 
of Certain Countries.--(a) Authority to Transfer Excess Defense 
Articles.--Subject to the limitations in this section, the 
President may transfer to a country--
          [(1) which is a major illicit drug producing country 
        or a major drug-transit country in Latin America and 
        the Caribbean,
          [(2) which has a democratic government, and
          [(3) whose armed forces do not engage in a consistent 
        pattern of gross violations of internationally 
        recognized human rights (as defined in section 
        502B(d)(1)),
such excess defense articles as may be necessary to carry out 
subsection (b).
    [(b) Purpose.--Excess defense articles may be transferred 
under subsection (a) only for the purpose of encouraging the 
military forces and local law enforcement agencies of an 
eligible country in Latin America and the Caribbean to 
participate cooperatively in a comprehensive national 
antinarcotics program, conceived and developed by the 
government of that country, by conducting activities within 
that country and on the high seas to prevent the production, 
processing, trafficking, transportation, and consumption of 
illicit narcotic or psychotropic drugs or other controlled 
substances.
    [(c) Uses of Excess Defense Articles.--Excess defense 
articles may be furnished to a country under subsection (a) 
only if that country ensures that those excess defense articles 
will be used primarily in support of antinarcotics activities.
    [(d) Role of the Secretary of State.--The Secretary of 
State shall determine the eligibility of countries to receive 
excess defense articles under subsection (a). In accordance 
with section 481(b) of this Act, the Secretary shall ensure 
that the transfer of excess defense articles under subsection 
(a) is coordinated with other antinarcotics enforcement 
programs assisted by the United States Government.
    [(e) Dollar Limitation.--The aggregate value of excess 
defense articles transferred to a country under subsection (a) 
in any fiscal year may not exceed $10,000,000.
    [(f) Conditions on Transfers.--The President may transfer 
excess defense articles under this section only if--
          [(1) they are drawn from existing stocks of the 
        Department of Defense;
          [(2) funds available to the Department of Defense for 
        the procurement of defense equipment are not expended 
        in connection with the transfer;
          [(3) the President determines that the transfer of 
        the excess defense articles will not have an adverse 
        impact on the military readiness of the United States; 
        and
          [(4) the President first considers the effects of the 
        transfer of the excess defense articles on the national 
        technology and industrial base, particularly the 
        extent, if any, to which the transfer reduces the 
        opportunities of entities in the national technology 
        and industrial base to sell new equipment to the 
        country or countries to which the excess defense 
        articles are transferred.
    [(g) Terms of Transfers.--Excess defense articles may be 
transferred under this section without cost to the recipient 
country.
    [(h) Waiver of Requirement for Reimbursement of DOD 
Expenses.--Section 632(d) does not apply with respect to 
transfers of excess defense articles under this section.
    [(i) Notification to Congress.--
          [(1) Advance notice.--The President may not transfer 
        excess defense articles under this section until 15 
        days after the President has provided notice of the 
        proposed transfer to the committees specified in 
        paragraph (2). This notification shall include--
                  [(A) a certification of the need for the 
                transfer;
                  [(B) an assessment of the impact of the 
                transfer on the military readiness of the 
                United States; and
                  [(C) a statement of the value of the excess 
                defense articles to be transferred.
          [(2) Committees to be notified.--Notice shall be 
        provided pursuant to paragraph (1) to the Committee on 
        Armed Services, the Committee on Foreign Affairs, and 
        the Committee on Appropriations of the House of 
        Representatives and the Committee on Armed Services, 
        the Committee on Foreign Relations, and the Committee 
        on Appropriations of the Senate.
    [(j) Limitation on Use of Other Authorities to Transfer 
Excess Defense Articles.--The transfer authority provided in 
sections 518 and 519 may not be exercised with respect to any 
major illicit drug producing country or major drug-transit 
country in Latin America or the Caribbean.
    [(k) Excess Coast Guard Property.--As used in this section, 
the term ``excess defense articles'' shall be deemed to include 
excess property of the Coast Guard, and the term ``Department 
of Defense'' shall be deemed, with respect to such excess 
property, to include the Coast Guard.
    [Sec. 518. Natural Resources and Wildlife Management.--
    [(a) Authority to Transfer Nonlethal Excess Defense 
Articles and Small Arms.--Subject to the limitations in this 
section, the President may transfer nonlethal excess defense 
articles and small arms to friendly countries and to 
international organizations and private and voluntary 
organizations for the purposes contained in section 119 of this 
Act.
    [(b) Limitation on Transfers.--Transfers under this section 
shall be subject to the limitations contained in section 
516(b).
    [(c) Transportation.--The Department is authorized to 
transport nonlethal excess defense articles and small arms made 
available pursuant to this section without charge on a space 
available basis.
    [(d) Waiver of Requirements for Reimbursement of DOD 
Expenses.--Section 632(d) shall not apply with respect to 
transfers of nonlethal excess defense articles and small arms 
under this section or the transportation of such articles as 
authorized by subsection (c).
    [(e) Notification to Committees of Congress.--The President 
may not transfer nonlethal excess defense articles and small 
arms under this section until 30 days after he has notified the 
Committees on Appropriations of the proposed transfer. This 
notification shall include a certification of the need for the 
transfer and an assessment of the impact of the transfer on the 
military readiness of the United States. Transfers under this 
section shall also be subject to the notification requirements 
of section 516(c) of this Act.
    [Sec. 519. Additional Authorities Relating to Modernization 
of Military Capabilities.--(a) Authority to Transfer Excess 
Defense Articles.--Notwithstanding any other provision of law 
(except title V of the national Security Act of 1947) and 
subject to subsection (b), the President may transfer to 
countries for whom a foreign military financing program was 
justified for the fiscal year in which the transfer is 
authorized, such nonlethal excess defense articles as the 
President determines necessary to help modernize the defense 
capabilities of such countries, in accordance with the 
provisions of this section.
    [(b) Limitations on Transfers.--The President may transfer 
non-lethal excess defense articles under this section only if--
          [(1) the equipment is drawn from existing stocks of 
        the Department of Defense;
          [(2) no funds available to the Department of Defense 
        for the procurement of defense equipment are expended 
        in connection with the transfer;
          [(3) the President determines that the transfer of 
        the nonlethal excess defense articles will not have an 
        adverse impact on the military readiness of the United 
        States;
          [(4) the President determines that transferring the 
        articles under the authority of this section is 
        preferable to selling them, after taking into account 
        the potential proceeds from, and likelihood of, such 
        sales, and the comparative foreign policy benefits that 
        may accrue to the United States as the result of either 
        a transfer or sale; and
          [(5) the President first considers the effects of the 
        transfer of the excess defense articles on the national 
        technology and industrial base, particularly the 
        extent, if any, to which the transfer reduces the 
        opportunities of entities in the national technology 
        and industrial base to sell new equipment to the 
        country or countries to which the excess defense 
        articles are transferred.
    [(c) Notification to Congress.--The President shall notify 
the Committees on Appropriations, Armed Services, and Foreign 
Relations of the Senate, and the Committees on Appropriations, 
Armed Services, and Foreign Affairs of the House of 
Representatives fifteen days before transferring nonlethal 
excess defense articles under subsection (a), in accordance 
with the regular notification procedures of those committees.
    [(d) Waiver of Requirement for Reimbursement of DOD 
Expenses.--Section 632(d) shall not apply with respect to 
transfers of nonlethal excess defense articles under this 
section.
    [(e) Annual Report.--Commencing in 1991, not later than 
December 15 of each year, the President shall transmit to the 
committees described in subsection (c) a report with respect to 
the previous fiscal year which contains--
          [(1) a list of the countries to which the President 
        has furnished nonlethal excess defense articles under 
        the authority of this section; and
          [(2) the value of the excess nonlethal defense 
        articles that were furnished to each such country.
    [(f) Transportation and Related Costs.--(1) Except as 
provided in paragraph (2), funds available to the Department of 
Defense shall not be expended for crating, packing, handling 
and transportation of nonlethal excess defense articles 
transferred under the authority of this section.
    [(2) Notwithstanding section 632(d) or any other provision 
of law, the President may direct the crating, packing, handling 
and transport of nonlethal excess defense articles without 
charge to a country if--
          [(A) that country has an agreement providing the 
        United States with base rights in that country;
          [(B) that country is eligible for assistance from the 
        International Development Association; and
          [(C) the nonlethal excess defense articles are being 
        provided to that country under the authority of this 
        section.
SEC. 520. TRANSFERS OF EXCESS DEFENSE ARTICLES FOR INTERNATIONAL 
                    PEACEKEEPING OPERATIONS.

    [(a) General Authority.--The President may transfer to 
international and regional organizations of which the United 
States is a member such excess defense articles as the 
President determines necessary to support international 
peacekeeping operations and other activities and operations to 
maintain and restore international peace and security. Such 
transfers shall be on such terms and conditions as the 
President may determine, consistent with this section.
    [(b) Conditionality of Authority.--
          [(1) In general.--The authority of subsection (a) may 
        not be exercised with respect to an international or 
        regional organization until the United States has 
        entered into a written agreement with that organization 
        providing that the value of any excess defense articles 
        transferred under this section shall be credited 
        against United States assessed contributions to that 
        organization. For purposes of this paragraph, the term 
        ``value'' means such amount as may be agreed upon by 
        the United States and the recipient organization, 
        except that such amount may not be less than the value 
        (as defined in section 644(m)(1) of this Act) of the 
        articles transferred.
          [(2) Crediting of transfers.--(A) The credit provided 
        for pursuant to paragraph (1) shall be counted against 
        United States assessed contributions to the recipient 
        organization that are payable from the ``Contribution 
        to International Peacekeeping Activities'' account of 
        the Department of State, except to the extent such 
        credit is counted, in accordance with subparagraph (B), 
        against an assessed contribution payable from an 
        account established within the Department of Defense.
          [(B) If--
                  [(i) an account is established within the 
                Department of Defense for payment of a portion 
                of United States assessed contributions for 
                United Nations operations,
                  [(ii) excess defense articles are transferred 
                under this section for a United Nations 
                operation, and
                  [(iii) the United States assessed 
                contribution for that operation is payable from 
                that account,
        [the credit for those excess defense articles shall be 
        counted against the assessed contribution payable from 
        that account, but only to the extent that the value of 
        the excess defense articles so transferred for that 
        operation during a fiscal year does not exceed the 
        total United States assessed contribution payable for 
        that operation from that account during that fiscal 
        year.
    [(c) Limitations on Transfers.--The President may transfer 
excess defense articles under this section only if--
          [(1) they are drawn from existing stocks of the 
        Department of Defense (or the Coast Guard);
          [(2) funds available to the Department of Defense (or 
        the Coast Guard) for the procurement of defense 
        equipment are not expended in connection with the 
        transfer;
          [(3) the transfer of the excess defense articles will 
        not have an adverse impact on the military readiness of 
        the United States; and
          [(4) the President has established procedures and 
        requirements, comparable to those applicable under 
        section 505 of this Act, to ensure that such excess 
        defense articles will be used only for purposes that 
        have been agreed to by the United States.
    [(d) Notification to Congress.--
          [(1) In general.--The President shall notify the 
        designated congressional committees regarding any 
        transfer of excess defense articles under this section 
        in accordance with paragraph (2). This notification 
        shall include--
                  [(A) a discussion of the need for the 
                transfer;
                  [(B) an assessment of the impact of the 
                transfer on the military readiness of the 
                United States; and
                  [(C) a statement of--
                          [(i) the acquisition cost and the 
                        value (as defined in section 644(m)(1) 
                        of this Act) of the excess defense 
                        articles to be transferred; and
                          [(ii) the aggregate acquisition cost 
                        and the aggregate value (as so defined) 
                        of all excess defense articles for 
                        which notification has been provided 
                        under this subsection during that 
                        fiscal year with respect to transfers 
                        to the same organization under this 
                        section.
          [(2) Timing of notice.--(A) The President shall 
        notify the designated congressional committees pursuant 
        to paragraph (1) at least 15 days before the excess 
        defense articles are transferred under this section, 
        except as provided in subparagraph (B).
          [(B) If the President determines that an unforeseen 
        emergency requires the immediate transfer of excess 
        defense articles under this section, the President--
                  [(i) may waive the requirement of 
                subparagraph (A) that notice be provided at 
                least 15 days in advance of the transfer; and
                  [(ii) shall promptly notify the designated 
                congressional committees of such waiver and 
                transfer.
          [(3) Designated committees.--As used in this 
        subsection, the term ``designated congressional 
        committees'' means the Committee on Foreign Affairs, 
        the Committee on Armed Services, and the Committee on 
        Appropriations of the House of Representatives and the 
        Committee on Foreign Relations, the Committee on Armed 
        Services, and the Committee on Appropriations of the 
        Senate.
    [(e) Transportation and Related Costs.--
          [(1) In general.--Except as provided in paragraph 
        (2), funds available to the Department of Defense shall 
        not be expended for crating, packing, handling, and 
        transporting excess defense articles transferred under 
        the authority of this section.
          [(2) Exception.--Notwithstanding any other provision 
        of law, the President may direct the crating, packing, 
        handling, and transporting of excess defense articles 
        without charge to an international or regional 
        organization if the President determines that waiving 
        such costs advances the foreign policy interests of the 
        United States.
    [(f) Waiver of Requirement for Reimbursement of DOD 
Expenses.--Section 632(d) shall not apply with respect to 
transfers of excess defense articles under this section and to 
any costs of crating, packing, handling, and transporting 
incurred under subsection (e)(2).]
SEC. 517. DESIGNATION OF MAJOR NON-NATO ALLIES.

    (a) Notice to Congress.--The President shall notify the 
Congress in writing at least 30 days before--
          (1) designating a country as a major non-NATO ally 
        for purposes of this Act and the Arms Export Control 
        Act (22 U.S.C. 2751 et seq.); or
          (2) terminating such a designation.
    (b) Initial Designations.--Australia, Egypt, Israel, Japan, 
the Republic of Korea, and New Zealand shall be deemed to have 
been so designated by the President as of the effective date of 
this section, and the President is not required to notify the 
Congress of such designation of those countries.
          * * * * * * *
                    Chapter 4--Economic Support Fund

          * * * * * * *
    Sec. 532. Authorizations of Appropriations.--[(a) There are 
authorized to be appropriated to the President to carry out the 
purposes of this chapter--
          [(1) $2,015,000,000 for the fiscal year 1986 and 
        $2,015,000,000 for the fiscal year 1987 for the 
        following countries signing the Camp David agreement; 
        Israel and Egypt; and
          [(2) $1,785,000,000 for the fiscal year 1986 and 
        $1,785,000,000 for the fiscal year 1987 for assistance 
        under this chapter for recipients or purposes other 
        than the countries referred to in paragraph (1).]
    (a)(1) There are authorized to be appropriated to the 
President to carry out the purposes of this chapter 
$2,375,000,000 for the fiscal year 1996 and $2,340,000,000 for 
the fiscal year 1997.
    (2) Of the amount authorized to be appropriated by 
paragraph (1) for each of the fiscal years 1996 and 1997, 
$15,000,000 shall be available only for Cyprus.
    (3) Of the amount authorized to be appropriated by 
paragraph (1) for fiscal year 1996, $15,000,000 shall be 
available only for the International Fund for Ireland.
    (4) Of the amount authorized to be appropriated by 
paragraph (1) for fiscal year 1996, $10,000,000 shall be 
available only for the rapid development of a prototype 
industrial park in the Gaza Strip.
    (b) Amounts appropriated to carry out this chapter are 
authorized to remain available until expended.
          * * * * * * *

        Chapter 5--International Military Education and Training

    Sec. 541. General Authority.--The President is authorized 
to furnish, on such terms and conditions consistent with this 
Act as the President may determine (but whenever feasible on a 
reimbursable basis), military education and training to 
military and related civilian personnel of foreign countries. 
Such civilian personnel shall include foreign governmental 
personnel of ministries other than ministries of defense, and 
may also include legislators and individuals who are not 
members of the government, if the military education and 
training would (i) contribute to responsible defense resource 
management, (ii) foster greater respect for and understanding 
of the principle of civilian control of the military, (iii) 
contribute to cooperation between military and law enforcement 
personnel with respect to counternarcotics law enforcement 
efforts, or (iv) improve military justice systems and 
procedures in accordance with internationally recognized human 
rights. Such training and education may be provided through--
          (1) attendance at military educational and training 
        facilities in the United States (other than Service 
        academies) and abroad;
          (2) attendance in special courses of instruction at 
        schools and institutions of learning or research in the 
        United States and abroad; and
          (3) observation and orientation visits to military 
        facilities and related activities in the United States 
        and abroad.
          * * * * * * *
    Sec. 544. Exchange Training.--[In carrying out this 
chapter,] (a) In carrying out this chapter, the President is 
authorized to provide for attendance of foreign military 
personnel at professional military education institutions in 
the United States (other than service academies) without 
charge, and without charge to funds available to carry out this 
chapter (notwithstanding section 632(d) of this Act), if such 
attendance is pursuant to an agreement providing for the 
exchange of students on a one-for-one, reciprocal basis each 
fiscal year between those United States professional military 
education institutions and comparable institutions of foreign 
countries and international organizations.
    (b) The President may provide for the attendance of foreign 
military and civilian defense personnel at test pilot flight 
schools in the United States without charge, and without charge 
to funds available to carry out this chapter (notwithstanding 
section 632(d) of this Act), if such attendance is pursuant to 
an agreement providing for the exchange of students on a one-
for-one basis each fiscal year between those United States test 
pilot flight schools and comparable flight test pilot schools 
of foreign countries.
          * * * * * * *
                   Chapter 6--Peacekeeping Operations

          * * * * * * *
    Sec. 552. Authorization of Appropriations.--[(a) There are 
authorized to be appropriated to the President to carry out the 
purposes of this chapter, in addition to amounts otherwise 
available for such purposes, $37,000,000 for the fiscal year 
1986 and $37,000,000 for the fiscal year 1987.] (a) There are 
authorized to be appropriated to the President to carry out the 
purposes of this chapter, in addition to amounts otherwise 
available for such purposes, $40,000,000 for fiscal year 1996 
and $35,000,000 for fiscal year 1997.
          * * * * * * *

                  Chapter 8--Antiterrorism Assistance

    Sec. 571. General Authority.--[Subject to the provisions of 
this chapter] Notwithstanding any other provision of law that 
restricts assistance to foreign countries (other than sections 
502B and 620A of this Act), the President is authorized to 
furnish, on such terms and conditions as the President may 
determine, assistance to foreign countries in order to enhance 
the ability of their law enforcement personnel to deter 
terrorists and terrorist groups from engaging in international 
terrorist acts such as bombing, kidnaping, assassination, 
hostage taking, and hijacking. Such assistance may include 
training services and the provision of equipment and other 
commodities related to bomb detection and disposal, management 
of hostage situations, physical security, and other matters 
relating to the detection, deterrence, and prevention of acts 
of terrorism, the resolution of terrorist incidents, and the 
apprehension of those involved in such acts.
          * * * * * * *
    Sec. 573. [Specific Authorities and] Limitations.--[(a) 
Notwithstanding section 660 of this Act, services and 
commodities may be granted for the purposes of this chapter to 
eligible foreign countries, subject to reimbursement of the 
value thereof (within the meaning of section 644(m)) pursuant 
to section 632 of this Act from funds available to carry out 
this chapter.]
    [(b)] (a) Whenever the President determines it to be 
consistent with and in furtherance of the purposes of this 
chapter, and on such terms and conditions consistent with this 
Act as he may determine, any agency of the United States 
Government is authorized to furnish services and commodities, 
without charge to funds available to carry out this chapter, to 
an eligible foreign country, subject to payment in advance of 
the value thereof (within the meaning of section 644(m)) in 
United States dollars by the foreign country. Credits and the 
proceeds of guaranteed loans made available to such countries 
pursuant to the Arms Export Control Act shall not be used for 
such payments. Collections under this chapter shall be credited 
to the currently applicable appropriation, account, or fund of 
the agency providing such services and commodities and shall be 
available for the purposes for which such appropriation, 
account, or fund is authorized to be used.
    [(c)] (b) The Assistant Secretary of State for Democracy, 
Human Rights, and Labor shall be consulted in the development 
and implementation of the antiterrorism assistance program 
under this part, including determinations of the foreign 
countries that will be furnished assistance under this part and 
determinations of the nature of assistance to be furnished to 
each such country.
    [(d)] (c) [(1) Training services (including short term 
refresher training) provided pursuant to this chapter may be 
conducted outside the United States only if--
          [(A) the training to be conducted outside the United 
        States will be provided during a period of not more 
        than 30 days;
          [(B) such training relates to--
                  [(i) aviation security;
                  [(ii) crisis management;
                  [(iii) document screening techniques;
                  [(iv) facility security;
                  [(v) maritime security;
                  [(vi) VIP protection; or
                  [(vii) the handling of detector dogs, except 
                that only short term refresher training may be 
                provided under this clause; and
          [(C) at least 15 days before such training is to 
        begin, the Committee on Foreign Affairs of the House of 
        Representatives and the Committee on Foreign Relations 
        of the Senate are notified in accordance with the 
        procedures applicable to reprogramming notifications.
    [(2) Personnel of the United States Government authorized 
to advise eligible foreign countries on antiterrorism matters 
shall carry out their responsibilities, to the maximum extent 
possible, within the United States. Such personnel may provide 
advice outside the United States on antiterrorism matters to 
eligible foreign countries for periods not to exceed 30 
consecutive calendar days.]
    [(3)] (1)(A) Except as provided in subparagraph (B), 
employees of the Department of State shall not engage in the 
training of law enforcement personnel or the provision of 
services under this chapter.
    (B) Subparagraph (A) does not apply to training (including 
short term refresher training) or services provided to law 
enforcement personnel by employees of the Bureau of Diplomatic 
Security with regard to crisis management, facility security, 
or VIP protection.
    [(4)][(2)(A) Articles on the United States Munitions List 
may be made available under this chapter only if--
          [(i) they are small arms in category I (relating to 
        firearms), ammunition in category III (relating to 
        ammunition) for small arms in category I, articles in 
        category IV(c) or VI(c) (relating to detection and 
        handling of explosive devices), articles in category X 
        (relating to protective personnel equipment), or 
        articles in paragraph (b), (c), or (d) of category XIII 
        (relating to speech privacy devices, underwater 
        breathing apparatus and armor plating), and they are 
        directly related to antiterrorism training under this 
        chapter;
          [(ii) the recipient country is not prohibited by law 
        from receiving assistance under one or more of the 
        following provisions: chapter 2 of this part (relating 
        to grant military assistance), chapter 5 of this part 
        (relating to international military education and 
        training), or the Arms Export Control Act (relating to 
        foreign military sales financing); and
          [(iii) at least 15 days before the articles are made 
        available to the foreign country, the President 
        notifies the Committee on Foreign Affairs of the House 
        of Representatives and Committee on Foreign Relations 
        of the Senate of the proposed transfer, in accordance 
        with the procedures applicable to reprogramming 
        notifications pursuant to section 634A of this Act.
    [(B) The value (in terms of original acquisition cost) of 
all equipment and commodities provided under subsection (a) in 
any fiscal year may not exceed 25 percent of the funds made 
available to carry out this chapter for that fiscal year.
    [(C) No shock batons or similar devices may be provided 
under this chapter.]
    (2)(A) Except as provided in subparagraph (B), funds made 
available to carry out this chapter shall not be made available 
for the procurement of weapons and ammunition.
    (B) Subparagraph (A) shall not apply to small arms and 
ammunition in categories I and III of the United States 
Munitions List that are integrally and directly related to 
antiterrorism training provided under this chapter if, at least 
15 days before obligating those funds, the President notifies 
the appropriate congressional committees in accordance with the 
procedures applicable to reprogramming notifications under 
section 634A.
    (C) The value (in terms of original acquisition cost) of 
all equipment and commodities provided under this chapter in 
any fiscal year may not exceed 25 percent of the funds made 
available to carry out this chapter for that fiscal year.
    [(5)] (3) Assistance under this chapter shall not include 
provision of services, equipment, personnel, or facilities 
involved in the collection of intelligence as defined in 
Executive Order 12333 of December 4, 1981, other than limited 
training in the organization of intelligence for antiterrorism 
purposes.
    [(e)] (d) This chapter does not apply to information 
exchange activities conducted by agencies of the United States 
Government under other authority for such purposes.
    [(f)] (e) Funds made available to carry out this chapter 
may not be used for personnel compensation or benefits.
    [Sec. 574 Reports to Congress.--(a)(1) Not less than thirty 
days before providing assistance to a foreign country under 
this chapter, the President shall transmit to the Speaker of 
the House of Representatives and the chairman of the Committee 
on Foreign Relations of the Senate a written notification which 
specifies--
          [(A) the country to which such assistance is to be 
        provided;
          [(B) the type and value of the assistance to be 
        provided;
          [(C) the terms and duration of assistance; and
          [(D) an explanation of how the proposed assistance 
        will further the objectives of this chapter to assist 
        eligible foreign countries in deterring terrorism.
    [(2) The chairman of either the Committee on Foreign 
Affairs of the House of Representatives or the Committee on 
Foreign Relations of the Senate may request, as deemed 
necessary, a current report on the state of observance of and 
respect for internationally recognized human rights in the 
country to which assistance is to be provided. In the event 
that a report is requested, no assistance under subsection (a) 
shall be provided to the country specified prior to transmittal 
of the report to the requested committee.
    [(b) The annual congressional presentation materials shall 
include--
          [(1) a list of the countries which received 
        assistance under this chapter for the preceding fiscal 
        year, a list of the countries which are programed to 
        receive assistance under this chapter for the current 
        fiscal year, and a list of the countries which are 
        proposed as recipients of assistance under this chapter 
        for the next fiscal year; and
          [(2) with respect to each country listed pursuant to 
        paragraph (1) and for each such fiscal year, a 
        description of the assistance under this chapter 
        furnished, programed, or proposed, including--
                  [(A) the place where training or other 
                services under this chapter were or will be 
                furnished, the duration of such training or 
                other services, and the number of personnel 
                from that country which were or will receive 
                training under this chapter;
                  [(B) the types of equipment or other 
                commodities which were or will be furnished 
                under this chapter; and
                  [(C) whether the assistance was furnished on 
                a grant basis, on an advance payment basis, or 
                on some other basis.
[Each report shall also describe the ways in which the 
provision of such assistance has furthered the objective of 
enhancing the ability of foreign law enforcement authorities to 
deter acts of terrorism.]
    Sec. [575.] 574. Authorizations of Appropriations.--(a) 
There are authorized to be appropriated to the President to 
carry out this chapter $9,840,000 for the fiscal year 1986 and 
$14,680,000 for the fiscal year 1987.
    (b) Amounts appropriated under this section are authorized 
to remain available until expended.
    Sec. [576.] 575. Administrative Authorities.--Except where 
expressly provided to the contrary, any reference in any law to 
part I of this Act shall be deemed to include reference to this 
chapter and any reference in any law to part II of this Act 
shall be deemed to exclude reference to this chapter.
                       Chapter 9--Police Training

    Sec. 581. Police Training for Certain Foreign Countries.--
The President is authorized to provide, on such terms and 
conditions as he may determine, training, advice, financial 
support, and equipment for police, prisons, or other law 
enforcement forces of a foreign government, unless--
          (1) such foreign government is not democratically 
        elected; or
          (2) notwithstanding paragraph (1)--
                  (A) such forces engage in a consistent 
                pattern of gross violations of internationally 
                recognized human rights; or
                  (B) such forces do not maintain an effective 
                policy against the trafficking or production of 
                illegal drugs by the members of the force or 
                the participants in the program.
                                PART III

                     Chapter 1--General Provisions

    Sec. 601. Encouragement of Free Enterprise and Private 
Participation.--(a) * * *
          * * * * * * *
SEC. 601A. PRIVATE SECTOR ENTERPRISE FUNDS.

    (a) Authority.--(1) The President may provide funds and 
support to Enterprise Funds designated in accordance with 
subsection (b) that are or have been established for the 
purposes of promoting--
          (A) development of the private sectors of eligible 
        countries, including small businesses, the agricultural 
        sector, and joint ventures with United States and host 
        country participants; and
          (B) policies and practices conducive to private 
        sector development in eligible countries;
on the same basis as funds and support may be provided with 
respect to Enterprise Funds for Poland and Hungary under the 
Support for East European Democracy (SEED) Act of 1989.
  (2) Funds may be made available under this section 
notwithstanding any other provision of law.
  (b) Countries Eligible for Enterprise Funds.--(1) Except as 
provided in paragraph (2), the President is authorized to 
designate a private, nonprofit organization as eligible to 
receive funds and support pursuant to this section with respect 
to any country eligible to receive assistance under part I of 
this Act in the same manner and with the same limitations as 
set forth in section 201(d) of the Support for East European 
Democracy (SEED) Act of 1989.
  (2)(A) Except as provided in subparagraph (B), the authority 
of paragraph (1) shall not apply to any country with respect to 
which the President is authorized to designate an enterprise 
fund under section 498B(c) of this Act or section 201 of the 
Support for East European Democracy (SEED) Act of 1989.
  (B) The prohibition of subparagraph (A) shall not apply to 
the Trans-Caucasus Enterprise Fund established under subsection 
(c).
  (c) Trans-Caucasus Enterprise Fund.--The President shall 
designate a private, nonprofit organization under subsection 
(b) to carry out this section with respect to the Trans-
Caucasus region of the former Soviet Union. Such organization 
shall be known as the ``Trans-Caucasus Enterprise Fund''.
  (d) Treatment Equivalent to Enterprise Funds for Poland and 
Hungary.--Except as otherwise specifically provided in this 
section, the provisions contained in section 201 of the Support 
for East European Democracy (SEED) Act of 1989 (excluding the 
authorizations of appropriations provided in subsection (b) of 
that section) shall apply to any Enterprise Fund that receives 
funds and support under this section. The officers, members, or 
employees of an Enterprise Fund that receive funds and support 
under this section shall enjoy the same status under law that 
is applicable to officers, members, or employees of the 
Enterprise Funds for Poland and Hungary under the Support for 
East European Democracy (SEED) Act of 1989.
  (e) Reporting Requirement.--Notwithstanding any other 
provision of this section, the requirement of section 201(p) of 
the Support for East European Democracy (SEED) Act of 1989, 
that an Enterprise Fund shall be required to publish an annual 
report not later than January 31 each year shall not apply with 
respect to an Enterprise Fund that receives funds and support 
under this section for the first twelve months after it is 
designated as eligible to receive such funds and support.
  (f) Authorization of Appropriations.--(1) There are 
authorized to be appropriated to the President for purposes of 
this section, in addition to funds otherwise available for such 
purposes--
          (A) $12,000,000 for fiscal year 1996 to fund the 
        Trans-Caucasus Enterprise Fund established under 
        subsection (d); and
          (B) $52,000,000 for fiscal year 1996 to fund any 
        enterprise fund authorized to receive funds under this 
        section other than the Trans-Caucasus Enterprise Fund.
  (2) Funds appropriated under this subsection are authorized 
to remain available until expended.
          * * * * * * *
    [Sec. 617. Termination of Assistance.--Assistance under any 
provision of this Act may, unless sooner terminated by the 
President, be terminated by concurrent resolution. Funds made 
available under this Act shall remain available for a period 
not to exceed eight months from the date of termination of 
assistance under this Act for the necessary expenses of winding 
up programs related thereto. In order to ensure the 
effectiveness of assistance under this Act, such expenses for 
orderly termination of programs may include the obligation and 
expenditure of funds to complete the training or studies 
outside their countries of origin of students whose course of 
study or training program began before assistance was 
terminated.]
SEC. 617. TERMINATION OF ASSISTANCE.

    (a) In General.--(1) In order to ensure the effectiveness 
of assistance provided under this Act, funds made available 
under this Act to carry out any program, project, or activity 
of assistance shall remain available for obligation for a 
period not to exceed 8 months after the date of termination of 
such assistance for the necessary expenses of winding up such 
programs, projects, or activities and, notwithstanding any 
other provision of law, funds so obligated may remain available 
until expended.
    (2) Funds obligated to carry out any program, project, or 
activity of assistance before the effective date of the 
termination of such assistance are authorized to be available 
for expenditure for the necessary expenses of winding up such 
program, projects, and activities, notwithstanding any 
provision of law restricting the expenditure of funds, and may 
be reobligated to meet any other necessary expenses arising 
from the termination of such assistance.
    (3) The necessary expenses of winding up programs, 
projects, and activities of assistance include the obligation 
and expenditure of funds to complete the training or studies 
outside their countries of origin of students whose course of 
study or training program began before assistance was 
terminated.
    (b) Liability to Contractors.--For the purpose of making an 
equitable settlement of termination claims under extraordinary 
contractual relief standards, the President is authorized to 
adopt as a contract or other obligation of the United States 
Government, and assume (in whole or in part) any liabilities 
arising thereunder, any contract with a United States or third-
country contractor to carry out any program, project, or 
activity of assistance under this Act that was subsequently 
terminated pursuant to law.
    (c) Guarantee Programs.--Provisions of this or any other 
Act requiring the termination of assistance under this Act 
shall not be construed to require the termination of guarantee 
commitments that were entered into before the effective date of 
the termination of assistance.
    Sec. 620. Prohibitions Against Furnishing Assistance.--
(a)(1) No assistance shall be furnished under this Act to the 
present government of Cuba. As an additional means of 
implementing and carrying into effect the policy of the 
preceding sentence, the President is authorized to establish 
and maintain a total embargo upon all trade between the United 
States and Cuba.
          * * * * * * *
    (u) In any decision to provide or continue to provide any 
program of assistance to any country under the Foreign 
Assistance Act of 1961, as amended, there shall be taken into 
account the status of the country with respect to its dues, 
assessments, and other obligations to the United Nations; and 
where such country is delinquent with respect to any such 
obligations for the purposes of the first sentence of Article 
19 of the United Nations Charter, the President shall furnish 
the Committee on Foreign Relations of the Senate and the 
Speaker of the House of Representatives a report setting forth 
the assurance given by the government of the country concerned 
of paying all of its arrearages and of placing its payments of 
such obligations on a current basis, or a full explanation of 
the unusual or exceptional circumstances which render it 
economically incapable of giving such assurance.
    (v) None of the funds made available to carry out this Act 
shall be available to any private and voluntary organization 
which--
    (1) fails to provide upon timely request any document, 
file, or record necessary to the auditing requirements of the 
agency primarily responsible for administering part I of this 
Act, or
    (2) is not registered with the agency primarily responsible 
for administering part I of this Act.
    (w) No assistance made available under chapter 1 (relating 
to development assistance), chapter 10 (relating to the 
Development Fund for Africa), or chapter 11 (relating to 
support for the independent states of the former Soviet Union) 
of part I of this Act or chapter 4 of part II of this Act 
(relating to the Economic Support Fund), Support for East 
European Democracy (SEED) Act of 1989 may be used by any 
private and voluntary organization to pay for the purchase or 
lease of office equipment for use in the United States.
          * * * * * * *
SEC. 620A. PROHIBITION ON ASSISTANCE TO GOVERNMENTS SUPPORTING 
                    INTERNATIONAL TERRORISM.

    (a) Prohibition.--The United States shall not provide any 
assistance under this Act, the Agricultural Trade Development 
and Assistance Act of 1954, the Peace Corps Act, or the Export-
Import Bank Act of 1945 to any country if the Secretary of 
State determines that the government of that country has 
repeatedly provided support for acts of international 
terrorism.
          * * * * * * *
    (c) Rescission.--A determination made by the Secretary of 
State under subsection (a) may not be rescinded unless the 
President submits to the Speaker of the House of 
Representatives and the Chairman of the Committee on Foreign 
Relations of the Senate--
          (1) before the proposed rescission would take effect, 
        a report certifying that--
                  (A) there has been a fundamental change in 
                the leadership and policies of the government 
                of the country concerned;
                  (B) that government is not supporting acts of 
                international terrorism; and
                  (C) that government has provided assurances 
                that it will not support acts of international 
                terrorism in the future; or
          (2) at least 45 days before the proposed rescission 
        would take effect, a report justifying the rescission 
        and certifying that--
                  (A) the government concerned has not provided 
                any support for international terrorism during 
                the preceding [6-month period] one-year period; 
                and
                  (B) the government concerned has provided 
                assurances that it will not support acts of 
                international terrorism in the future.
    (d) Waiver.--Assistance prohibited by subsection (a) may be 
provided [to a country] to the people of a country described in 
that subsection if--
          (1) the President determines that [national security] 
        vital national security interests or humanitarian 
        reasons justify a waiver of subsection (a), except that 
        humanitarian reasons may not be used to justify 
        assistance under part II of this Act (including chapter 
        4, chapter 6, and chapter 8), or the Export-Import Bank 
        Act of 1945; and
          (2) at least 15 days before the waiver takes effect, 
        the President consults with the Committee on Foreign 
        Affairs of the House of Representatives and the 
        Committee on Foreign Relations of the Senate regarding 
        the proposed waiver and submits a report to the Speaker 
        of the House of Representatives and the chairman of the 
        Committee on Foreign Relations of the Senate 
        containing--
                  (A) the name of the recipient country;
                  (B) a description of the [national security] 
                vital national security interests or 
                humanitarian reasons which require the waiver;
                  (C) the type and amount of and the 
                justification for the assistance to be provided 
                pursuant to the waiver; and
                  (D) the period of time during which such 
                waiver will be effective.
The waiver authority granted in this subsection may not be used 
to provide any assistance under the Foreign Assistance Act of 
1961 which is also prohibited by section 40 of the Arms Export 
Control Act.
    (e) Definition.--As used in this section, the phrases 
``provided support for acts of international terrorism'' and 
``provided any support for international terrorism'' mean--
          (1) to have knowningly assisted, supported, ordered, 
        planned, executed, or otherwise facilitated individual 
        acts of international terrorism;
          (2) to have knowningly provided or facilitated the 
        provision of assistance or support to a group or to 
        members of a group that have committed an act or acts 
        of international terrorism; or
          (3) to have knowingly provided safe haven or refuge 
        within any area under its direct or indirect control to 
        a group or to members of a group that have committed an 
        act or acts of international terrorism.
          * * * * * * *
SEC. 620E. ASSISTANCE TO PAKISTAN.

    (a) The Congress recognizes that Soviet Forces occupying 
Afghanistan pose a security threat to Pakistan. The Congress 
also recognizes that an independent and democratic Pakistan 
with continued friendly ties with the United States is in the 
interest of both nations. The Congress finds that United States 
assistance will help Pakistan maintain its independence. 
Assistance to Pakistan is intended to benefit the people of 
Pakistan by helping them meet the burdens imposed by the 
presence of Soviet forces in Afghanistan and by promoting 
economic development. In authorizing assistance to Pakistan, it 
is the intent of Congress to promote the expeditious 
restoration of full civil liberties and representative 
government in Pakistan. The Congress further recognizes that it 
is in the mutual interest of Pakistan and the United States to 
avoid the profoundly destabilizing effects of the proliferation 
of nuclear explosive devices or the capacity to manufacture or 
otherwise acquire nuclear devices.
          * * * * * * *
    (e)(1) [No assistance] No military assistance shall be 
furnished to Pakistan and no military equipment or technology 
shall be sold or transferred to Pakistan, pursuant to the 
authorities contained in this Act or any other Act, unless the 
President shall have certified in writing to the Speaker of the 
House of Representatives and the chairman of the Committee on 
Foreign Relations of the Senate, during the fiscal year [in 
which assistance is to be furnished or military equipment or 
technology] in which military assistance is to be furnished or 
military equipment or technology is to be sold or transferred, 
that Pakistan does not possess a nuclear explosive device and 
that [the proposed United States assistance] the proposed 
United States military assistance program will reduce 
significantly the risk that Pakistan will possess a nuclear 
explosive device.
    (2) The prohibitions in this subsection do not apply to any 
assistance or transfer provided for the purposes of--
          (A) international narcotics control (including 
        chapter 8 of part I of this Act) or any other provision 
        of law available for providing assistance for 
        counternarcotics purposes;
          (B) facilitating military-to-military contact, 
        training (including chapter 5 of part II of this Act), 
        or humanitarian or civic assistance projects;
          (C) peacekeeping and other multilateral operations 
        (including chapter 6 of part II of this Act, relating 
        to peacekeeping) or any provisions of law available for 
        providing assistance for peacekeeping purposes, except 
        that any lethal military equipment provided under this 
        subparagraph shall be provided on a lease or loan basis 
        only and shall be returned upon completion of the 
        operation for which it was provided; or
          (D) antiterrorism assistance (including chapter 8 of 
        part II of this Act, relating to antiterrorism 
        assistance) or any other provision of law available for 
        antiterrorism assistance purposes.
  (f) Storage Costs.--The President may release the Government 
of Pakistan of its contractual obligation to pay the United 
States Government for the storage costs of items purchased 
prior to October 1, 1990, but not delivered by the United 
States Government by virtue of the application of subsection 
(e) and may reimburse the Government of Pakistan for any such 
amounts paid, on such terms and conditions as the President may 
prescribe, if such payments would have no impact on the scoring 
of United States budget authority or outlays.
  (g) Return of Military Equipment.--The President may return 
to the Government of Pakistan military equipment paid for and 
delivered to Pakistan and subsequently transferred for repair 
or upgrade to the United States but not returned to Pakistan by 
virtue of the application of subsection (e). Such equipment or 
its equivalent may be returned to the Government of Pakistan if 
the President determines and so certifies to the appropriate 
congressional committees that such equipment or equivalent 
neither constitutes nor has received any significant 
qualitative upgrade since being transferred to the United 
States.
  (h) Sense of Congress; Report.--
          (1) Sense of congress.--It is the sense of the 
        Congress that--
                  (A) fundamental United States policy 
                interests in South Asia include--
                          (i) resolving underlying disputes 
                        that create the conditions for nuclear 
                        proliferation, missile proliferation, 
                        and the threat of regional catastrophe 
                        created by weapons of mass destruction;
                          (ii) achieving cooperation with the 
                        United States on counterterrorism, 
                        counternarcotics, international 
                        peacekeeping, and other United States 
                        international efforts; and
                          (iii) achieving mutually verifiable 
                        limitations on fissile material 
                        production, expansion and enhancement 
                        of the mutual `no first strike pledge', 
                        and a commitment to work with the 
                        United States to limit, rollback, and 
                        eliminate all nuclear weapons programs 
                        in South Asia;
                  (B) to create the conditions for lasting 
                peace in South Asia, United States policy 
                toward the region must be balanced and should 
                not reward any country for actions inimical to 
                the United States interest;
                  (C) the President should initiate a regional 
                peace process in South Asia with both bilateral 
                and multilateral tracks that includes both 
                India and Pakistan; and
                  (D) the South Asian peace process should have 
                on its agenda the resolution of the following:
                          (i) South Asian nuclear 
                        proliferation, including mutually 
                        verifiable limitations on fissile 
                        material production, expansion, and 
                        enhancement of the mutual `no first 
                        strike' pledge, and a commitment to 
                        work with the United States to limit, 
                        rollback, and eliminate all nuclear 
                        weapons programs in South Asia.
                          (ii) South Asian missile 
                        proliferation.
                          (iii) Indian and Pakistani 
                        cooperation with Iran.
                          (iv) The resolution of existing 
                        territorial disputes, including 
                        Kashmir.
                          (v) Regional economic cooperation.
                          (vi) Regional threats, including 
                        threats posed by Russia and China.
          (2) Report.--Whenever a report is required to be 
        submitted under section 620F(c) of the Foreign 
        Assistance Act of 1961, the President shall submit a 
        report to the appropriate congressional committees on 
        the progress of the South Asian peace process described 
        in paragraph (1). Each report shall describe--
                  (A) whether South Asian countries are working 
                to further United States interests;
                  (B) proposed United States actions to further 
                the resolution of the conflict in South Asia as 
                described in paragraph (1) and to further 
                United States international interests;
                  (C) the degree and extent of cooperation by 
                South Asian countries with all United States 
                international efforts, including voting support 
                within the United Nations; and
                  (D) whether withholding of military 
                assistance, dual-use technology, economic 
                assistance, and trade sanctions would further 
                United States interests.
SEC. 620F. NUCLEAR NON-PROLIFERATION POLICY IN SOUTH ASIA.

          * * * * * * *
SEC. 620G. DEPLETED URANIUM AMMUNITION.

    (a) Prohibition.--Except as provided in subsection (b), 
none of the funds made available to carry out this Act or any 
other Act may be made available to facilitate in any way the 
sale of M-833 antitank shells or any comparable antitank shells 
containing a depleted uranium penetrating component to any 
country other than--
          (1) a country that is a member of the North Atlantic 
        Treaty Organization;
          (2) a country that has been designated as a major 
        non-NATO ally (as defined in section 644(r)); or
          (3) Taiwan.
    (b) Exception.--The prohibition contained in subsection (a) 
shall not apply with respect to the use of funds to facilitate 
the sale of antitank shells to a country if the President 
determines that to do so is in the national security interest 
of the United States.

SEC. 620H. PROHIBITION ON CIRCUMVENTION OF AID RESTRICTIONS.

    (a) Prohibition.--No officer or employee of the United 
States may engage in any activity, or assist any person to 
engage in any activity, which is intended to circumvent a 
statutory prohibition or restriction in the provision of United 
States assistance.
    (b) Rule of Statutory Construction.--Nothing in this 
section may be construed to limit--
          (1) the ability of the President, the Vice President, 
        or any officer or employee of the United States to make 
        statements or otherwise express their views to any 
        party on any subject;
          (2) the ability of an officer or employee of the 
        United States to express the policies of the President; 
        or
          (3) the ability of an officer or employee of the 
        United States to communicate with any foreign country 
        government, group, or individual, either directly or 
        through a third party, with respect to the prohibitions 
        or restriction under this Act, including the reasons 
        for any such prohibitions or restriction, and the 
        actions, terms, or conditions which might lead to the 
        removal of the prohibition or restriction.
    (c) Definition.--For purposes of this section, the term 
``United States assistance'' includes--
          (1) assistance provided under this Act; and
          (2) grants and loan subsidies under the Arms Export 
        Control Act.
    (d) Criminal Penalty.--An officer or employee of the United 
States who knowingly and willfully violates subsection (a) 
shall be fined in accordance with title 18, imprisoned for not 
more than 2 years, or both.

SEC. 620I. FOREIGN GOVERNMENT PARKING FINES.

    (a) Withholding of Funds.--An amount equivalent to 110 
percent of the total unpaid fully adjudicated parking fines and 
penalties owed to the District of Columbia, Virginia, and 
Maryland, by the government of a foreign country as of the end 
of a fiscal year, as certified to the President by the chief 
executive officer of each State or District, shall be withheld 
from obligation for such country out of funds available in the 
next fiscal year to carry out part I of this Act, until the 
requirement of subsection (b) is satisfied.
    (b) Certification Requirement.--The requirement of this 
subsection is satisfied when the Secretary of State determines 
and certifies to the appropriate congressional committees that 
such fines and penalties are fully paid to the governments of 
the District of Columbia, Virginia, and Maryland.
SEC. 620J. RESTRICTIONS ON ASSISTANCE TO NORTH KOREA AND THE KOREAN 
                    PENINSULA ENERGY DEVELOPMENT ORGANIZATION.

    (a) Restrictions.--No assistance may be provided under this 
Act or any other provision of law to the Democratic People's 
Republic of Korea unless--
          (1) such assistance is provided in accordance with 
        all requirements, limitations, and procedures otherwise 
        applicable to the provision of such assistance for such 
        purposes; and
          (2) the President--
                  (A) notifies the congressional committees 
                specified in section 634(a) of this Act prior 
                to obligation of such assistance in accordance 
                with the procedures applicable to reprogramming 
                notifications under that section, irrespective 
                of the amount of the proposed obligation of 
                such assistance; and
                  (B) determines and reports to such committees 
                that the provision of such assistance is vital 
                to the national interests of the United States.
    (b) Congressional Report.--Whenever the President notifies 
the congressional committees under the provisions of subsection 
(a)(2), he shall submit a report on--
          (a) the exact dollar amounts pledged by every country 
        contributing to the Korean Peninsula Energy Development 
        Organization, itemized by fiscal year, including those 
        amounts requested in budget documents for future fiscal 
        years;
          (2) the exact dollar amount transferred to the Korean 
        Peninsula Energy Development Organization as of the 
        date of submission of the report, itemized by country 
        and the purposes for which the funds were donated; and
          (3) the extent to which North Korea has complied with 
        all aspects of the Agreed Framework up to the time the 
        report is submitted, including, but not limited to, the 
        manner in which deliveries of heavy fuel oil have been 
        used and the extent to which dialogue between the 
        Republic of Korea and the Democratic People's Republic 
        of Korea has taken place.
    (c) Assistance to the Korean Peninsula Energy Development 
Organization.--For purposes of providing assistance under this 
Act or under any provision of law, the obligation of assistance 
to the Korean Peninsula Energy Development Organization shall 
be considered to be obligated under the same terms, conditions, 
and limitations as are applicable to United States assistance 
to the Democratic People's Republic of Korea.

SEC. 620K. PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS ENGAGED IN 
                    ESPIONAGE AGAINST THE UNITED STATES.

    (a) Prohibition.--None of the funds made available to carry 
out this Act or the Arms Export Control Act (other than 
humanitarian assistance or assistance for refugees) may be 
provided to any foreign government which the President 
determines is engaged in intelligence activities within the 
United States harmful to the national security of the United 
States.
    (b) Periodic Reports.--Beginning one year after the date of 
enactment of this section, and at intervals of one year 
thereafter, the President shall prepare and transmit to the 
Committee on Foreign Relations and the Select Committee on 
Intelligence of the Senate and the Committee on International 
Relations and the Permanent Select Committee on Intelligence of 
the House of Representatives a report, in classified and 
unclassified forms, listing all foreign governments which he 
determines are conducting intelligence activities within the 
United States harmful to the national security of the United 
States.
    (c) Definition.--As used in this section, the term 
``humanitarian assistance'' means food (including the 
monetization of food), clothing, medicine, and medical 
supplies.

SEC. 620L. PROHIBITION ON FOREIGN ASSISTANCE TO FOREIGN GOVERNMENTS NOT 
                    IMPLEMENTING EXTRADITION TREATIES.

    (a) Prohibition.--The President may not provide foreign 
assistance to the government of a country that the President 
determines is not effectively implementing a treaty entered 
into by such country with the United States relating to the 
extradition of individuals who have been charged with or who 
have committed felony offenses.
    (b) Definitions.--As used in this section:
          (1) Felony offense.--The term ``felony offense'' 
        means an offense punishable by death or imprisonment 
        for a term exceeding 1 year.
          (2) Foreign assistance.--The term ``foreign 
        assistance'' means any funds made available to carry 
        out any program, project, or activity funded under 
        major functional budget category 150 (relating to 
        international affairs).

SEC. 620M. PROHIBITION ON FOREIGN ASSISTANCE TO FOREIGN GOVERNMENTS 
                    EMPLOYING MERCENARY FORCES.

    (a) Reduction of Assistance.--The President should reduce 
United States foreign assistance to the government of any 
country that employs mercenary forces by an amount equal to the 
sum paid by that government to employ mercenary forces.
    (b) Definitions.--As used in this section:
          (1) Mercenary.--The term ``mercenary'' has the 
        meaning given such term in Protocol I Additional to the 
        Geneva Conventions of 1949 (1125 U.N.T.S. 3, adopted on 
        June 8, 1977, at Geneva), namely any person who--
                  (A) is specially recruited locally or abroad 
                in order to fight in an armed conflict;
                  (B) does, in fact, take a direct part in the 
                hostilities;
                  (C) is motivated to take part in the 
                hostilities essentially by the desire for 
                private gain and, in fact, is promised, by or 
                on behalf of a party to the conflict, material 
                compensation substantially in excess of that 
                promised or paid to combatants of similar ranks 
                and functions in the armed forces of that 
                party;
                  (D) is neither a national of a party to the 
                conflict nor a resident of the territory 
                controlled by a party to the conflict;
                  (E) is not a member of the armed forces of a 
                party to the conflict; and
                  (F) has not been sent by a state which is not 
                a party to the conflict on official duty as a 
                member of its armed forces.
          (2) Foreign assistance.--The term ``foreign 
        assistance'' means any funds made available to carry 
        out any program, project, or activity funded under 
        major functional budget category 150 (relating to 
        international affairs).
          * * * * * * *
                  Chapter 2--Administrative Provisions

          * * * * * * *
    Sec. 636. Provisions on Uses of Funds.--(a) Appropriations 
for the purposes of or pursuant to this Act (except for Part 
II), allocations to any agency of the United States Government, 
from other appropriations, for functions directly related to 
the purposes of this Act, and funds made available for other 
purposes to the agency primarily responsible for administering 
part I, shall be available for:
          (1) rent of buildings and space in buildings in the 
        United States, and for repair, alteration, and 
        improvements of such leased properties;
          * * * * * * *
    (j)(1) Funds made available to carry out the provisions of 
this Act may not be made available to provide--
          (A) any financial incentive to a business enterprise 
        located in the United States for the purpose of 
        inducing that enterprise to relocate outside the United 
        States if such incentive or inducement is likely to 
        reduce the number of individuals employed in the United 
        States by that enterprise because that enterprise would 
        replace production in the United States with production 
        outside the United States;
          (B) assistance for the purpose of establishing or 
        developing in a foreign country any export processing 
        zone or designated area in which the tax, tariff, 
        labor, environment, and safety laws of that country do 
        not apply, in part or in whole, to activities carried 
        out within that zone or area, unless the President 
        determines and certifies that such assistance is not 
        likely to cause a loss of jobs within the United 
        States; or
          (C) subject to paragraph (2), assistance for any 
        project or activity that contributes to the violation 
        of internationally recognized workers rights (as 
        defined in section 502(a)(4) of the Trade Act of 1974) 
        of workers in the foreign country, including in any 
        designated zone or area in that country.
    (2) Paragraph (1) shall not apply with respect to the 
provision of assistance for microenterprises and small-scale 
enterprises, or for small-holder agriculture in the informal 
sector of the foreign country.
          * * * * * * *
    Sec. 644. Definitions.--As used in this Act--
    (a) ``Agency of the United States Government'' includes any 
agency, department, board, wholly or partly owned corporation, 
instrumentality, commission, or establishment of the United 
States Government.
          * * * * * * *
    (p) ``Farmers'' includes fishermen and other persons 
employed in cultivating and harvesting food resources from salt 
and fresh waters.
    (q) ``Appropriate congressional committees'' means, except 
as otherwise provided, the Committee on Foreign Relations and 
the Committee on Appropriations of the Senate and the Committee 
on International Relations and the Committee on Appropriations 
of the House of Representatives.
    (r) ``Major non-NATO ally'' means a country which is 
designated in accordance with section 517 as a major non-NATO 
ally for purposes of this Act and the Arms Export Control Act 
(22 U.S.C. 2751 et seq.).
          * * * * * * *
    Sec. 652. Limitation Upon Exercise of Special 
Authorities.--The President shall not exercise any special 
authority granted to him under section 506(a), 552(c)(2), or 
610(a) of this Act unless the President, [prior to the date] 
before he intends to exercise any such authority, notifies the 
Speaker of the House of Representatives and the Committee on 
foreign Relations of the Senate in writing of each such 
intended exercise, the section of this Act under which such 
authority is to be exercised, and the justification for, and 
the extent of, the exercise of such authority.
    Sec. 653. Change in Allocation of Foreign Assistance.--(a) 
Not later than thirty days after the enactment of any law 
appropriating funds to carry out any provision of this Act 
(other than section 451 or 637) or the Arms Export Control Act, 
the President shall notify the Congress of each foreign country 
and international organization to which the United States 
Government intends to provide any portion of the funds under 
such law and of the amount of funds under that law, by category 
of assistance, that the United States Government intends to 
provide to each.
    (b) The provisions of this section shall not apply in the 
case of any law making continuing appropriations for a period 
of less than 90 days and may not be waived under the provisions 
of section 614(a) of this Act.
          * * * * * * *
    [Sec. 660. Prohibiting Police Training.--(a) On and after 
July 1, 1975, none of the funds made available to carry out 
this Act, and none of the local currencies generated under this 
Act, shall be used to provide training or advice, or provide 
any financial support, for police, prisons, or other law 
enforcement forces for any foreign government or any program of 
internal intelligence or surveillance on behalf of any foreign 
government within the United States or abroad.
    [(b) Subsection (a) of this section shall not apply--
          [(1) with respect to assistance rendered under 
        section 515(c) of the Omnibus Crime Control and Safe 
        Streets Act of 1968 with respect to any authority of 
        the Drug Enforcement Administration or the Federal 
        Bureau of Investigation which relates to crimes of the 
        nature which are unlawful under the laws of the United 
        States, or with respect to assistance authorized under 
        section 482 of this Act;
          [(2) to any contract entered into prior to the date 
        of enactment of this section with any person, 
        organization, or agency of the United States Government 
        to provide personnel to conduct, or assist in 
        conducting, any such program;
          [(3) with respect to assistance, including training, 
        in maritime law enforcement and other maritime skills; 
        or
          [(4) with respect to assistance provided to police 
        forces in connection with their participation in the 
        regional security system of the Eastern Caribbean 
        states.
[Notwithstanding clause (2), subsection (a) shall apply to any 
renewal or extension of any contract referred to in such 
paragraph entered into on or after such date of enactment.
    [(c) Subsection (a) shall not apply with respect to a 
country which has a longstanding democratic tradition, does not 
have standing armed forces, and does not engage in a consistent 
pattern of gross violations of internationally recognized human 
rights.
    [(d) Notwithstanding the prohibition contained in 
subsection (a), assistance may be provided to Honduras or El 
Salvador for fiscal years 1986 and 1987 if, at least 30 days 
before providing as assistance, the President notifies the 
Committee on Foreign Affairs of the House of Representatives 
and the Committee on Foreign Relations of the Senate, in 
accordance with the procedures applicable to reprogramming 
notifications pursuant to section 634A of this Act, that he has 
determined that the government of the recipient country has 
made significant progress, during the preceding six months, in 
eliminating any human rights violations including torture, 
incommunicado detention, detention of persons solely for the 
non-violent expression of their political views, or prolonged 
detention without trial. Any such notification shall include a 
full description of the assistance which is proposed to be 
provided and of the purposes to which it is to be directed.]
SEC. 661. TRADE AND DEVELOPMENT AGENCY.

    (a) Purpose.--The Trade and Development Agency shall be an 
agency of the United States under the foreign policy guidance 
of the Secretary of State. The purpose of the Trade and 
Development Agency is to promote United States private sector 
participation in development projects in developing and middle-
income countries.
    (b) Authority To provide Assistance.--
          (1) Authority.--The Director of the Trade and 
        Development Agency is authorized to work with foreign 
        countries, including those in which the United States 
        development programs have been concluded or those not 
        receiving assistance under part I, to carry out the 
        purpose of this section by providing funds for 
        feasibility studies, architectural and engineering 
        design, and other activities related to development 
        projects which provide opportunities for the use of 
        United States exports.
          (2) Use of funds.--Funds under this section may be 
        used to provide support for feasibility studies [for] 
        and other activities related to the planning, 
        development, and management of, and procurement for, 
        bilateral and multilateral development projects, 
        including training activities undertaken in connection 
        with a project, for the purpose of promoting the use of 
        United States goods and services in such projects. 
        [Funds under this section may also be used for 
        architectural and engineering design, including--
                  [(A) concept design, which establishes the 
                basic technical and operational criteria for a 
                project, such as architectural drawings for a 
                proposed facility evaluation of site 
                constraints, procurement requirements, and 
                equipment specifications; and
                  [(B) detail design, which sets forth specific 
                dimensions and criteria for structural, 
                mechanical, electrical, and architectural 
                operations, and identifies other resources 
                required for project operations.]
          (3) Information dissemination.--[(A)] The Trade and 
        Development Agency shall disseminate information about 
        its project activities to the private sector.
          [(B) Other agencies of the United States Government 
        shall cooperate with the Trade and Development Agency 
        in order for the Agency to provide more effectively 
        informational services to persons in the private sector 
        concerning trade development and export promotion 
        related to development projects.]
          * * * * * * *
    (d) Annual Report.--The [President] Director of the Trade 
and Development Agency shall, not later than December 31 of 
each year, submit to the Committee on Foreign Affairs of the 
House of Representatives and the Committee on Foreign Relations 
of the Senate a report on the activities of the Trade and 
Development Agency in the preceding fiscal year.
          * * * * * * *
    (f) Funding.--
          (1) Authorization.--[There are authorized to be 
        appropriated for purposes of this section, in addition 
        to funds otherwise available for such purposes 
        $55,000,000 for fiscal year 1993 and $65,000,000 for 
        fiscal year 1994.] There are authorized to be 
        appropriated to the President for purposes of this 
        section, in addition to funds otherwise available for 
        such purposes, $67,000,000 for fiscal year 1996 and 
        $75,000,000 for fiscal year 1997.
          [(2) Funding for technical assistance grants by 
        multilateral development banks.--(A) The Trade and 
        Development Agency should, in fiscal years 1993 and 
        1994, substantially increase the amount of funds it 
        provides to multilateral development banks for 
        technical assistance grants.
          [(B) As used in subparagraph (A)--
                  [(i) the term ``technical assistance grants'' 
                means funding by multilateral development banks 
                of services from the United States in 
                connection with projects and programs supported 
                by such banks, including, but not limited to, 
                engineering, design, and consulting services; 
                and
                  [(ii) the term ``multilateral development 
                bank'' has the meaning given that term in 
                section 1701(c) of the International Financial 
                Institutions Act.]
          (2) Availability of appropriations.--Amounts 
        appropriated pursuant to paragraph (1) are authorized 
        to remain available until expended.
          * * * * * * *
    Sec. 667. Operating Expenses.--
    (a) * * *
SEC. 668. TRANSPORTATION EXPENSES FOR DELIVERY OF HUMANITARIAN 
                    ASSISTANCE.

  (a) Authority.--The President is authorized to pay the 
expenses incurred in the transport of humanitarian assistance 
which has been privately donated in the United States to the 
independent states of the former Soviet Union, the Baltic 
states, and the independent states of the former Yugoslavia 
(excluding Serbia), with the consent of the relevant 
government.
  (b) Authorization of Appropriations.--(1) There are 
authorized to be appropriated to the President such sums as may 
be necessary to carry out this section.
  (2) Amounts appropriated pursuant to paragraph (1) are 
authorized to remain available until expended.
  (c) Definitions.--As used in this section:
          (1) Humanitarian assistance.--The term ``humanitarian 
        assistance'' includes the provision of food, medicine, 
        medical supplies, and clothing. The term does not 
        include construction equipment, including tractors, 
        scrapers, loaders, graders, bulldozers, dump trucks, 
        generators, and compressors.
          (2) Independent states of the former soviet union.--
        The term ``independent states of the former Soviet 
        Union'' has the same meaning given the term in section 
        3 of the FREEDOM Support Act (22 U.S.C. 5801).
                      THE ARMS EXPORT CONTROL ACT

          * * * * * * *

    Chapter 1--Foreign and National Security Policy Objectives and 
                               Restraints

          * * * * * * *
    Sec. 3. Eligibility.--(a) No defense article or defense 
service shall be sold or leased by the United States Government 
under this Act to any country or international organization, 
and no agreement shall be entered into for a cooperative 
project (as defined in section 27 of this Act), unless--
          (1) the President finds that the furnishing of 
        defense articles and defense services to such country 
        or international organization will strengthen the 
        security of the United States and promote world peace;
          * * * * * * *
    (b) The consent of the President under paragraph (2) of 
subsection (a) or under paragraph (1) of section 505(a) of the 
Foreign Assistance Act of 1961 (as it relates to subparagraph 
(B) of such paragraph) shall not be required for the transfer 
by a foreign country or international organization of defense 
articles sold by the United States under this Act if--
          (1) such articles constitute components incorporated 
        into foreign defense articles;
          (2) the recipient is the government of a member 
        country of the North Atlantic Treaty Organization, the 
        Government of Australia, the Government of Japan, or 
        the Government of New Zealand;
          (3) the recipient is not a country designated under 
        section 620A of the Foreign Assistance Act of 1961;
          (4) the United States-origin components are not--
                  (A) significant military equipment (as 
                defined in section 47(9));
                  (B) defense articles for which notification 
                to Congress is required under section 36(b); 
                and
                  (C) identified by regulation as Missile 
                Technology Control Regime items; and
          (5) the foreign country or international organization 
        provides notification of the transfer of the defense 
        articles to the United States Government not later than 
        30 days after the date of such transfer.
          * * * * * * *
    (d)(1) The President may not give his consent under 
paragraph (2) of subsection (a) or under the third sentence of 
such subsection, or under section 505(a)(1) or 505(a)(4) of the 
Foreign Assistance Act of 1961, to a transfer of any major 
defense equipment valued (in terms of its original acquisition 
cost) at $14,000,000 or more, or any defense article or related 
training or other defense service valued (in terms of its 
original acquisition cost) at $50,000,000 or more, unless the 
President submits to the Speaker of the House of 
Representatives and the Committee on Foreign Relations of the 
Senate a written certification with respect to such proposed 
transfer containing--
          * * * * * * *
    (2)(A) Except as provided in subparagraph (B), unless the 
President states in the certification submitted pursuant to 
paragraph (1) of this subsection that an emergency exists which 
requires that consent to the proposed transfer become effective 
immediately in the national security interests of the United 
States, such consent shall not become effective until 30 
calendar days after the date of such submission and such 
consent shall become effective then only if the Congress does 
not enact, within such 30-day period, a joint resolution[, as 
provided for in sections 36(b)(2) and 36(b)(3) of this Act] 
prohibiting the proposed transfer.
    (B) In the case of a proposed transfer to the North 
Atlantic Treaty Organization, or any member country of such 
Organization, Japan, Australia, or New Zealand, unless the 
President states in the certification submitted pursuant to 
paragraph (1) of this subsection that an emergency exists which 
requires that consent to the proposed transfer become effective 
immediately in the national security interests of the United 
States, such consent shall not become effective until fifteen 
calendar days after the date of such submission and such 
consent shall become effective then only if the Congress does 
not enact, within such fifteen-day period, a [law] joint 
resolution prohibiting the proposed transfer.
    (C) If the President states in his certification under 
subparagraph (A) or (B) that an emergency exists which requires 
that consent to the proposed transfer become effective 
immediately in the national security interests of the United 
States, thus waiving the requirements of that subparagraph, the 
President shall set forth in the certification a detailed 
justification for his determination, including a description of 
the emergency circumstances which necessitate immediate consent 
to the transfer and a discussion of the national security 
interests involved.
    (D)(i) Any joint resolution under this paragraph shall be 
considered in the Senate in accordance with the provisions of 
section 601(b) of the International Security Assistance and 
Arms Export Control Act of 1976.
    (ii) For the purpose of expediting the consideration and 
enactment of joint resolutions under this paragraph, a motion 
to proceed to the consideration of any such joint resolution 
after it has been reported by the appropriate committee shall 
be treated as highly privileged in the House of 
Representatives.
    (3)(A) The President may not give his consent to the 
transfer of any major defense equipment valued (in terms of its 
original acquisition cost) at $14,000,000 or more, or of any 
defense article or defense service valued (in terms of its 
original acquisition cost) at $50,000,000 or more, the export 
of which has been licensed or approved under section 38 of this 
Act, unless [at least 30 calendar days] before giving such 
consent the President submits to the Speaker of the House of 
Representatives and the Chairman of the Committee on Foreign 
Relations of the Senate a [report] certification containing the 
information specified in subparagraphs (A) through (E) of 
paragraph (1). [Such consent shall become effective then only 
if the Congress does not enact, within a 30-day period, a joint 
resolution, as provided for in sections 36(c)(2) and 36(c)(3) 
of this Act prohibiting the proposed transfer.] Such 
certification shall be submitted--
          (i) at least 15 calendar days before such consent is 
        given in the case of a transfer to a country which is a 
        member of the North Atlantic Treaty Organization or 
        Australia, Japan, or New Zealand; and
          (ii) at least 30 calendar days before such consent is 
        given in the case of a transfer to any other country, 
        unless the President states in his certification that 
        an emergency exists which requires that consent to the 
        proposed transfer become effective immediately in the 
        national security interests of the United States. If 
        the President states in his certification that such an 
        emergency exists (thus waiving the requirements of 
        clause (i) or (ii), as the case may be, and of 
        subparagraph (B)) the President shall set forth in the 
        certification a detailed justification for his 
        determination, including a description of the emergency 
        circumstances which necessitate that consent to the 
        proposed transfer become effective immediately and a 
        discussion of the national security interests involved.
    (B) Consent to a transfer to subparagraph (A) shall become 
effective after the end of the 15-day or 30-day period 
specified in subparagraph (A)(i) or (ii), as the case may be, 
only if the Congress does not enact, within that period, a 
joint resolution prohibiting the proposed transfer.
    (C)(i) Any joint resolution under this paragraph shall be 
considered in the Senate in accordance with the provisions of 
section 601(b) of the International Security Assistance and 
Arms Export Control Act of 1976.
    (ii) For the purpose of expediting the consideration and 
enactment of joint resolutions under this paragraph, a motion 
to proceed to the consideration of any such joint resolution 
after it has been reported by the appropriate committee shall 
be treated as highly privileged in the House of 
Representatives.
          * * * * * * *

            Chapter 2--Foreign Military Sales Authorizations

    Sec. 21.--Sales From Stocks.--(a)(1) The President may sell 
defense articles and defense services from the stocks of the 
Department of Defense to any eligible country or international 
organization if such country or international organization 
agrees to pay in United States dollars--
          (A) in the case of a defense article not intended to 
        be replaced at the time such agreement is entered into, 
        not less than the actual value thereof, except as 
        provided in paragraph (3);
          (B) in the case of a defense article intended to be 
        replaced at the time such agreement is entered into, 
        the estimated cost of replacement of such article, 
        including the contract or production costs less any 
        depreciation in the value of such article; or
          (C) in the case of the sale of a defense service, the 
        full cost to the United States Government of furnishing 
        such service, except that in the case of training sold 
        to a purchaser who is concurrently receiving assistance 
        under chapter 5 of part II of the Foreign Assistance 
        Act of 1961, only those additional costs that are 
        incurred by the United States Government in furnishing 
        such assistance.
    (2) For purposes of subparagraph (A) of paragraph (1), the 
actual value of a naval vessel of 3,000 tons or less and 20 
years or more of age shall be considered to be not less than 
the greater of the scrap value or fair value (including 
conversion costs) of such vessel, as determined by the 
Secretary of Defense.
    (3) The President may reduce the price required to be paid 
under paragraph (1)(A) for the sale of a defense article if 
such sale would--
          (A) facilitate the sale of a similar or related new 
        defense article;
          (B) support the national defense industrial base; and
          (C) serve the national security interests of the 
        United States.
          * * * * * * *
    (e)(1) After September 30, 1976, letters of offer for the 
sale of defense articles or for the sale of defense services 
that are issued pursuant to this section or pursuant to section 
22 of this Act shall include appropriate charges for--
          (A) administrative services, calculated on an average 
        percentage basis to recover the full estimated costs 
        (excluding a pro rata share of fixed base operations 
        costs) of administration of sales made under this Act 
        to all purchasers of such articles and services as 
        specified in section 43(b) and section 43(c) of this 
        Act; and
          [(B) a proportionate amount of any nonrecurring costs 
        of research, development, and production of major 
        defense equipment (except for equipment wholly paid for 
        either from funds transferred under section 503(a)(3) 
        of the Foreign Assistance Act of 1961 or from funds 
        made available on a nonrepayable basis under section 23 
        of this Act); and]
          [(C)] (B) the recovery of ordinary inventory losses 
        associated with the sale from stock of defense articles 
        that are being stored at the expense of the purchaser 
        of such articles.
    [(2) The President may reduce or waive the charge or 
charges which would otherwise be considered appropriate under 
paragraph (1)(B) for particular sales that would, if made, 
significantly advance United States Government interests in 
North Atlantic Treaty Organization standardization, 
standardization with the Armed Forces of Japan, Australia, or 
New Zealand in furtherance of the mutual defense treaties 
between the United States and those countries, or foreign 
procurement in the United States under coproduction 
arrangements.]
    [(3)] (2)(A) The President may waive the charges for 
administrative services that would otherwise be required by 
paragraph (1)(A) in connection with any sale to the Maintenance 
and Supply Agency of the North Atlantic Treaty Organization in 
support of--
          (i) a weapon system partnership agreement; or
          (ii) a NATO/SHAPE project.
    (B) The Secretary of Defense may reimburse the fund 
established to carry out section 43(b) of this Act in the 
amount of the charges waived under subparagraph (A) of this 
paragraph. Any such reimbursement may be made from any funds 
available to the Department of Defense.
    (C) As used in this paragraph--
          (i) the term ``weapon system partnership agreement'' 
        means an agreement between two or more member countries 
        of the Maintenance and Supply Agency of the North 
        Atlantic Treaty Organization that--
                  (I) is entered into pursuant to the terms of 
                the charter of that organization; and
                  (II) is for the common logistic support of a 
                specific weapon system common to the 
                participating countries; and
          (ii) the term ``NATO/SHAPE project'' means a common-
        funded project supported by allocated credits from 
        North Atlantic Treaty Organization bodies or by host 
        nations with NATO Infrastructure funds.
          * * * * * * *
    (g) The President may enter into North Atlantic Treaty 
Organization standardization agreements in carrying out section 
814 of the Act of October 7, 1975 (Public Law 94-106), and may 
enter into [similar agreements with Japan, Australia, and New 
Zealand, and with other countries] similar agreements with 
countries which are major non-NATO allies, for the cooperative 
furnishing of training on a bilateral or multilateral basis, if 
the financial principles of such agreements are based on 
reciprocity. Such agreements shall include reimbursement for 
all direct costs but may exclude reimbursement for indirect 
costs, administrative surcharges, and costs of billeting of 
trainees (except to the extent that members of the United 
States Armed Forces occupying comparable accommodations are 
charged for such accommodations by the United States). Each 
such agreement shall be transmitted promptly to the Speaker of 
the House of Representatives and the Committees on 
Appropriations, Armed Services, and Foreign Relations of the 
Senate. As used in this subsection, the term ``major non-NATO 
allies'' means those countries designated as major non-NATO 
allies [for purposes of section 2350a(i)(3) of title 10, United 
States Code] in accordance with section 517 of the Foreign 
Assistance Act of 1961.
    (h)(1) The President is authorized to provide (without 
charge) quality assurance, inspection, contract administration 
services, and contract audit defense services under this 
section--
          (A) in connection with the placement or 
        administration of any contract or subcontract for 
        defense articles, defense services, or design and 
        construction services entered into after the date of 
        enactment of this subsection by, or under this Act on 
        behalf of, a foreign government which is a member of 
        the North Atlantic Treaty Organization or the 
        Government of Israel, if such government provides such 
        services in accordance with an agreement on a 
        reciprocal basis, without charge, to the United States 
        Government; or
          (B) in connection with the placement or 
        administration of any contract or subcontract for 
        defense articles, defense services, or design and 
        construction services pursuant to the North Atlantic 
        Treaty Organization Infrastructure Program in 
        accordance with an agreement under which the foreign 
        governments participating in such program provide such 
        services, without charge, in connection with similar 
        contracts or subcontracts.
    (2) In carrying out the objectives of this section, the 
President is authorized to provide cataloging data and 
cataloging services, without charge, to the North Atlantic 
Treaty Organization [or to any member government of that 
Organization if that Organization or member government] , any 
member government of that Organization, or the Government of 
Israel, if the Organization, member government, or Government 
of Israel, as the case may be, provides such data and services 
in accordance with an agreement on a reciprocal basis, without 
charge, to the United States Government.
          * * * * * * *
    (k) ``Before entering into the sale under this chapter of 
defense articles that are excess to the stocks of the 
Department of Defense, [the President shall first consider the 
effects of the sale of the articles on the national technology 
and industrial base, particularly the extent, if any, to which 
the sale reduces the opportunities of entities in the national 
technology and industrial base to sell new equipment to the 
country or countries to which the excess defense articles are 
sold.] the President shall determine that the sale of such 
articles will not have an adverse impact on the national 
technology and industrial base and, particularly, will not 
reduce the opportunities of entities in the national technology 
and industrial base to sell new or used equipment to the 
countries to which such articles are transferred.
    Sec. 22. Procurement for Cash Sales.--(a) * * *
          * * * * * * *
    (d) Competitive Pricing.--Procurement contracts made in 
implementation of sales under this section for defense articles 
and defense services wholly paid from funds made available on a 
nonrepayable basis shall be priced on the same costing basis 
with regard to profit, overhead, independent research and 
development, bid and proposal, and other costing elements, as 
is applicable to procurements of like items purchased by the 
Department of Defense for its own use.
    Sec. 23. Credit Sales.--(a) * * *
          * * * * * * *
    (f) Notwithstanding any other provision of this section, 
the President shall not require repayment of any assistance 
provided on a grant basis under this section to a foreign 
country or international organization.
          * * * * * * *
    [Sec. 28. Reports on Price Availability Estimates.--(a) The 
President shall transmit to the Speaker of the House of 
Representatives and the chairman of the Committee on Foreign 
Relations of the Senate, within fifteen days after the end of 
each calendar quarter, a report listing each price and 
availability estimate provided by the United States Government 
during such quarter to a foreign country with respect to a 
possible sale under this Act of major defense equipment for 
$7,000,000 or more, of any other defense articles or defense 
services for $25,000,000 or more, or of any Air-to-Ground or 
Ground-to-Air missiles, or associated launchers (without regard 
to the amount of the possible sale). Each such listing shall 
specify the name of the country to which the estimate was 
provided, the defense articles or services involved, the 
quantity involved, and the price estimate provided.
    [(b) Such reports shall also list each request received by 
the United States Government from a foreign country, during the 
quarter in question, for the issuance of a letter of offer to 
sell defense articles or defense services if (1) the proposed 
sale has not been the subject of a listing pursuant to 
subsection (a) of this section, and (2) the request involves a 
proposed sale of major defense equipment for $7,000,000 or 
more, of any other defense articles or defense services for 
$25,000,000 or more, or of any Air-to-Ground or Ground-to-Air 
missiles, or associated launchers (without regard to the amount 
of the possible sale). Each such listing shall include the name 
of the country making the request, the date of the request, the 
defense articles or services involved, the quantity involved, 
and the price and availability terms requested.]
          * * * * * * *

                  Chapter 3--Military Export Controls

    Sec. 31. Authorization and Aggregate Ceiling on Foreign 
Military Sales Credits.--(a) There are authorized to be 
appropriated to the President to carry out this Act 
$5,371,000,000 for fiscal year 1986 and $5,371,000,000 for the 
fiscal year 1987. Credits may not be extended under section 23 
of this Act in an amount, and loans may not be guaranteed under 
section 24(a) of this Act in a principal amount, which exceeds 
any maximum amount which may be established with respect to 
such credits or such loan guarantees in legislation 
appropriating funds to carry out this Act. Unobligated balances 
of funds made available pursuant to this section are hereby 
authorized to be continued available by appropriations 
legislation to carry out this Act.
          * * * * * * *
    [(c) For fiscal year 1986 and fiscal year 1987, the 
principal amount of credits provided under section 23 at market 
rates of interest with respect to Greece, the Republic of 
Korea, the Philippines, Portugal, Spain, Thailand, and Turkey 
shall (if and to the extent each country so desires) be repaid 
in not more than twenty years, following a grace period of ten 
years on repayment of principal.]
    (c) Loans available under section 23 shall be provided at 
rates of interest that are not less than the current average 
market yield on outstanding marketable obligations of the 
United States of comparable maturities.
    [(d) The aggregate acquisition cost to the United States of 
excess defense articles ordered by the President in any fiscal 
year after fiscal year 1976 for delivery to foreign countries 
or international organizations under the authority of chapter 2 
of part II of the Foreign Assistance Act of 1961 or pursuant to 
sales under this Act may not exceed $250,000,000 (exclusive of 
ships and their onboard stores and supplies transferred in 
accordance with law, and of any defense articles with respect 
to which the President submits a certification under section 
36(b) of this Act).]
          * * * * * * *
    Sec. 36. Reports on Commercial and Governmental Military 
Exports; Congressional Action.--(a) * * *
          * * * * * * *
          (11) a listing of all munitions items (as defined in 
        section 40(l)(1)) which were sold, leased, or otherwise 
        transferred by the Department of Defense to any other 
        department, agency, or other entity of the United 
        States Government during the quarter for which such 
        report is submitted (including the name of the 
        recipient Government entity and a discussion of what 
        that entity will do with those munitions items) if--
          * * * * * * *
For each letter of offer to sell under paragraphs (1) and (2), 
the report shall specify (i) the foreign country or 
international organization to which the defense article or 
service is offered or was sold, as the case may be: (ii) the 
dollar amount of the offer to sell or the sale and the number 
of defense articles offered or sold, as the case may be; (iii) 
a description of the defense article or service offered or 
sold, as the case may be; [and (iv)] (iv) the United States 
Armed Forces or other agency of the United States which is 
making the offer to sell or the sale, as the case may be[.]; 
(v) the comparable kinds and amounts of similar major defense 
equipment or defense articles or services that are available 
from other countries; and (vi) the other countries, if any, to 
which the United States has already offered the major defense 
equipment or defense articles or services.
    (b)(1) In the case of any letter of offer to sell any 
defense articles or services under this Act for $50,000,000 or 
more, any design and construction services for $200,000,000 or 
more, or any major defense equipment for $14,000,000 or more, 
before such letter of offer is issued, the President shall 
submit to the Speaker of the House of Representatives and to 
the chairman of the Committee on Foreign Relations of the 
Senate a numbered certification with respect to such offer to 
sell containing the [information specified in clauses (i) 
through (iv)] information specified in clauses (i) through (vi) 
of subsection (a), or (in the case of a sale of design and 
construction services) the information specified in clauses (A) 
through (D) of paragraph (9) of subsection (a), and a 
description, containing the information specified in paragraph 
(8) of subsection (a), of any contribution, gift, commission, 
or fee paid or offered or agreed to be paid in order to 
solicit, promote, or otherwise to secure such letter of offer. 
Such numbered certifications shall also contain an item, 
classified if necessary, identifying the sensitivity of 
technology contained in the defense articles, defense services, 
or design and construction services proposed to be sold, and a 
detailed justification of the reasons necessitating the sale of 
such articles or services in view of sensitivity of such 
technology. In addition, the President shall, upon the request 
of such committee or the Committee on International Relations 
of the House of Representatives, transmit promptly to both such 
committees a statement setting forth, to the extent specified 
in such request--
          * * * * * * *
                  [(K) an analysis of the extent to which 
                comparable kinds and amounts of defense 
                articles, defense services, or design and 
                construction services are available from other 
                countries;]
                  [(L)] (K) an analysis of the impact of the 
                proposed sale on United States relations with 
                the countries in the region to which the 
                defense articles, defense services, or design 
                and construction services which are the subject 
                of such sale would be delivered;
                  [(M)] (L) a detailed description of any 
                agreement proposed to be entered into by the 
                United States for the purchase or acquisition 
                by the United States of defense articles, 
                defense services, design and construction 
                services or defense equipment, or other 
                articles, services, or equipment of the foreign 
                country or international organization in 
                connection with, or as consideration for, such 
                letter of offer, including an analysis of the 
                impact of such proposed agreement upon United 
                States business concerns which might otherwise 
                have provided such articles, services, or 
                equipment to the United States, an estimate of 
                the costs to be incurred by the United States 
                in connection with such agreement compared with 
                costs which would otherwise have been incurred, 
                an estimate of the economic impact and 
                unemployment which would result from entering 
                into such proposed agreement, and an analysis 
                of whether such costs and such domestic 
                economic impact justify entering into such 
                proposed agreement;
                  [(N)] (M) the projected delivery dates of the 
                defense articles, defense services, or design 
                and construction services to be offered;
                  [(O)] (N) a detailed description of weapons 
                and levels of munitions that may be required as 
                support for the proposed sale; and
                  [(P)] (O) an analysis of the relationship of 
                the proposed sale to projected procurements of 
                the same item.
          * * * * * * *
          [(4) In addition to the other information required to 
        be contained in a certification submitted to the 
        Congress under this subsection, each such certification 
        shall cite any quarterly report submitted pursuant to 
        section 28 of this Act which listed a price and 
        availability estimate, or a request for the issuance of 
        a letter of offer, which was a basis for the proposed 
        sale which is the subject of such certification.]
          * * * * * * *
    (c)(1) In the case of an application by a person (other 
than with regard to a sale under section 21 or section 22 of 
this Act) for a license for the export of any major defense 
equipment sold under a contract in the amount of $14,000,000 or 
more or of defense articles or defense services sold under a 
contract in the amount of $50,000,000 or more, before issuing 
such license the President shall transmit to the Speaker of the 
House of Representatives and to the chairman of the Committee 
on Foreign Relations of the Senate an unclassified numbered 
certification with respect to such application specifying (A) 
the foreign country or international organization to which such 
export will be made, (B) the dollar amount of the items to be 
exported, [and (C)] (C) a description of the items to be 
exported, (D) a statement on the extent to which comparable 
kinds and amounts of similar major defense equipment or defense 
articles or services are available from other countries, and 
(E) the other countries, if any, to which the United States has 
already offered the major defense equipment or defense articles 
or services. In addition, the President shall, upon the request 
of such committee or the Committee on International Relations 
of the House of Representatives, transmit promptly to both such 
committees a statement setting forth, to the extent specified 
in such request a description of the capabilities of the items 
to be exported, an estimate of the total number of United 
States personnel expected to be needed in the foreign country 
concerned in connection with the items to be exported and an 
analysis of the arms control impact pertinent to such 
application, prepared in consultation with the Secretary of 
Defense. A certification transmitted pursuant to this 
subsection shall be unclassified, except that the information 
specified in clause (B) and the details of the description 
specified in clause (C) may be classified if the public 
disclosure thereof would be clearly detrimental to the security 
of the United States.
    (2) Unless the President states in his certification that 
an emergency exists which requires the proposed export in the 
national security interests of the United States, a license for 
export described in paragraph (1)--
          [(A) shall not be issued until at least 30 calendar 
        days after the Congress receives such certification; 
        and
          [(B) shall not be issued then if the Congress, within 
        such 30-day period, enacts a joint resolution 
        prohibiting the proposed export, except that this 
        subparagraph does not apply with respect to a license 
        issued for an export to the North Atlantic Treaty 
        Organization, any member country of that Organization, 
        Japan, Australia, or New Zealand.]
          * * * * * * *
          (A) in the case of a license for an export to the 
        North Atlantic Treaty Organization, any member country 
        of that Organization, or Australia, Japan, or New 
        Zealand, shall not be issued until at least 15 calendar 
        days after the Congress receives such certification, 
        and shall not be issued then if the Congress, within 
        that 15-day period, enacts a joint resolution 
        prohibiting the proposed export; and
          (B) in the case of any other license, shall not be 
        issued until at least 30 calendar days after the 
        Congress receives such certification, and shall not be 
        issued then if the Congress, within that 30-day period, 
        enacts a joint resolution prohibiting the proposed 
        export.
          * * * * * * *
    (d)(1) In the case of an approval under section 38 of this 
Act of a United States commercial technical assistance or 
manufacturing licensing agreement [for or in a country not a 
member of the North Atlantic Treaty Organization] which 
involves the manufacture abroad of any item of significant 
combat equipment on the United States Munitions List, before 
such approval is given, the President shall submit a 
certification with respect to such proposed commercial 
agreement in a manner similar to the certification required 
under subsection (c)(1) containing comparable information, 
except that the last sentence of such subsection shall not 
apply to certifications submitted pursuant to this subsection.
    (2) A certification under this subsection shall be 
submitted--
          (A) at least 15 days before approval is given in the 
        case of an agreement for or in a country which is a 
        member of the North Atlantic Treaty Organization or 
        Australia, Japan, or New Zealand; and
          (B) at least 30 days before approval is given in the 
        case of an agreement for or in any other country; 
        unless the President states in his certification that 
        an emergency exists which requires the immediate 
        approval of the agreement in the national security 
        interests of the United States.
    (3) If the President states in his certification that an 
emergency exists which requires the immediate approval of the 
agreement in the national security interests of the United 
States, thus waiving the requirements of paragraph (4), he 
shall set forth in the certification a detailed justification 
for his determination, including a description of the emergency 
circumstances which necessitate the immediate approval of the 
agreement and a discussion of the national security interests 
involved.
    (4) Approval for an agreement subject to paragraph (1) may 
not be given under section 38 if the Congress, within the 15-
day or 30-day period specified in paragraph (2)(A) or (B), as 
the case may be, enacts a joint resolution prohibiting such 
approval.
    (5)(A) Any joint resolution under paragraph (4) shall be 
considered in the Senate in accordance with the provisions of 
section 601(b) of the International Security Assistance and 
Arms Export Control Act of 1976.
    (B) For the purpose of expediting the consideration and 
enactment of joint resolutions under paragraph (4), a motion to 
proceed to the consideration of any such joint resolution after 
it has been reported by the appropriate committee shall be 
treated as highly privileged in the House of Representatives.
          * * * * * * *
    Chapter 4--General Administrative, and Miscellaneous Provisions

          * * * * * * *
    Sec. 47. Definitions.--For purposes of this Act, the term--
          (1) ``excess defense article'' has the meaning 
        provided by section 644(g) of the Foreign Assistance 
        Act of 1961;
          * * * * * * *
          (7) ``defense articles and defense services'' means, 
        with respect to commercial exports subject to the 
        provisions of section 38 of this Act, those items 
        designated by the President pursuant to subsection 
        (a)(1) of such section; [and]
          (8) ``design and construction services'' means, with 
        respect to sales under section 29 of this Act, the 
        design and construction of real property facilities, 
        including necessary construction equipment and 
        materials, engineering services, construction contract 
        management services relating thereto, and technical 
        advisory assistance in the operation and maintenance of 
        real property facilities provided or performed by any 
        department or agency of the Department of Defense or by 
        a contractor pursuant to a contract with such 
        department or agency[.]; and
          (9) ``significant military equipment'' means 
        articles--
                  (A) for which special export controls are 
                warranted because of the capacity of such 
                articles for substantial military utility or 
                capability; and
                  (B) identified on the United States Munitions 
                List.
              Chapter 5--Special Defense Acquisition Fund

    Sec. 51. Special Defense Acquisition Fund.--(a)(1) Under 
the direction of the President and in consultation with the 
Secretary of State, the Secretary of Defense shall establish a 
Special Defense Acquisition Fund (hereafter in this chapter 
referred to as the ``Fund''), to be used as a revolving fund 
separate from other accounts, under the control of the 
Department of Defense, to finance the acquisition of defense 
articles and defense service in anticipation of their transfer 
pursuant to this Act, the Foreign Assistance Act of 1961, or as 
otherwise authorized by law, to eligible foreign countries and 
international organizations, and may acquire such articles and 
services with the funds in the Fund as he may determine. 
Acquisition under this chapter of items for which the initial 
issue quantity requirements for United States Armed Forces have 
not been fulfilled and are not under current procurement 
contract shall be emphasized when compatible with security 
assistance requirements for the transfer of such items.
          * * * * * * *
    (4)[(A)] The Fund shall also be used to acquire defense 
articles that are particularly suited for use for narcotics 
control purposes and are appropriate to the needs of recipient 
countries, such as small boats, planes (including helicopters), 
and communications equipment.
    [(B) Each report pursuant to section 53(a) shall designate 
the defense articles that have been acquired or are to be 
acquired pursuant to this paragraph and the defense articles 
acquired under this chapter that were transferred for use in 
narcotics control purposes.]
    (b) The Fund shall consist of--
          (1) collections from sales made under letters of 
        offer issued pursuant to section 21(a)(1)(A) of this 
        act representing the actual value of defense articles 
        not intended to be replaced in stock,
          * * * * * * *
    [Sec. 53. Annual Reports to Congress.--(a) Not later than 
December 31 of each year, the President shall submit to the 
Congress a comprehensive report on acquisitions of defense 
articles and defense services under this chapter. Each such 
report shall include--
          [(1) a description of each contract for the 
        acquisition of defense articles or defense services 
        under this chapter which was entered into during the 
        preceding fiscal year;
          [(2) a description of each contract for the 
        acquisition of defense articles or defense services 
        under this chapter which the President anticipates will 
        be entered into during the current fiscal year;
          [(3) a description of each defense article or defense 
        service acquired under this chapter which was 
        transferred to a foreign country or international 
        organization during the preceding fiscal year; and
          [(4) an evaluation of the impact of the utilization 
        of the authority of this chapter on United States 
        defense production and the readiness of the United 
        States Armed Forces.
    [(b) As part of the annual written report to the Congress 
required by section 2431(a) of title 10, United States Code, 
regarding procurement schedules for each weapon system for 
which funding authorization is required, the President shall 
provide a report estimating the likely procurements to be made 
through the Fund.]

     Chapter 6--Leases of Defense Articles and Loan Authority for 
             Cooperative Research and Development Purposes

          * * * * * * *
    Sec. 62. Reports to the Congress.--(a) [Not less than 30 
days before] before entering into or renewing any agreement 
with a foreign country or international organization to lease 
any defense article under this chapter, or to loan any defense 
article under chapter 2 of part II of the Foreign Assistance 
Act of 1961, for a period of one year or longer, the President 
shall transmit to the Speaker of the House of Representatives, 
and to the chairman of the Committee on Foreign Relations of 
the Senate and the chairman of the Committee on Armed Services 
of the Senate, a written certification which specifies--
          (1) the country or international organization to 
        which the defense article is to be leased or loaned;
          (2) the type, quantity, and value (in terms of 
        replacement cost) of the defense article to be leased 
        or loaned;
          (3) the terms and duration of the lease or loan; and
          (4) a justification for the lease or loan, including 
        an explanation of why the defense article is being 
        leased or loaned rather than sold under this Act.
    (b) The President may waive the requirements of this 
section (and in the case of an agreement described in section 
63, may waive the provisions of the section) if he [determines, 
and immediately reports to the Congress], states in his 
certification, that an emergency exists which requires that the 
lease or loan be entered into immediately in the national 
security interests of the United States. If the President 
states in his certification that such an emergency exists, he 
shall set forth in the certification a detailed justification 
for his determination, including a description of the emergency 
circumstances which necessitate that the lease be entered into 
immediately and a discussion of the national security interests 
involved.
    (c) The certification required by subsection (a) shall be 
transmitted--
          (1) not less than 15 calendar days before the 
        agreement is entered into or renewed in the case of an 
        agreement with the North Atlantic Treaty Organization, 
        any member country of that Organization or Australia, 
        Japan, or New Zealand; and
          (2) not less than 30 calendar days before the 
        agreement is entered into or renewed in the case of an 
        agreement with any other organization or country.
    Sec. 63. Legislative Review.--[(a)(1)] (a) In the case of 
any agreement involving the lease under this chapter, or the 
loan under chapter 2 of part II of the Foreign Assistance Act 
of 1961, to any foreign country or international organization 
for a period of one year or longer of any defense articles 
which are either (i) major defense equipment valued (in terms 
of its replacement cost less any depreciation in its value) at 
$14,000,000 or more, or (ii) defense articles valued (in terms 
of their replacement cost less any depreciation in their value) 
at $50,000,000 or more, the agreement may not be entered into 
or renewed if the Congress, within [30 calendar days after 
receiving the certification with respect to that proposed 
agreement pursuant to section 62(a),] the 15-day or 30-day 
period specified in section 62(c)(1) or (2), as the case may 
be, enacts a joint resolution prohibiting the proposed lease or 
loan.
    [(2) This section shall not apply with respect to a loan or 
lease to the North Atlantic Treaty Organization, any member 
country of that Organization, Japan, Australia, or New Zeland.]
          * * * * * * *
    Sec. 65. Loan of Materials, Supplies, and Equipment for 
Research and Development Purposes.--(a)(1) * * *
    (d) For purposes of this section, the term ``NATO [or major 
non-NATO] ally'' means a member country of the North Atlantic 
Treaty Organization (other than the United States). [or a 
foreign country other than a member nation of NATO designated 
as a major non-NATO ally under section 2350a(i)(3) of title 10, 
United States Code.]
                              ----------                              


                          THE PEACE CORPS ACT

          * * * * * * *

                             authorization

    Sec. 3. (a) The President is authorized to carry out 
programs in furtherance of the purposes of this Act, on such 
terms and conditions as he may determine.
    [(b) Authorizations of Appropriations.--There are 
authorized to be appropriated to carry out the purposes of this 
Act $218,146,000 for fiscal year 1993, which are authorized to 
remain available until September 30, 1994.]
    (b) There are authorized to be appropriated to carry out 
the purposes of this Act $234,000,000 for each of the fiscal 
years 1996 and 1997.
                              ----------                              


                        ACT OF OCTOBER 28, 1992

                          (public law 102-565)

          * * * * * * *

SECTION 1. AUTHORIZATIONS OF APPROPRIATIONS.

    Section 3(b) of the Peace Corps Act (22 U.S.C. 2502(b)) is 
amended to read as follows:
          * * * * * * *

SEC. 3. EVALUATION OF HEALTH-CARE SERVICES PROVIDED TO PEACE CORPS 
                    VOLUNTEERS.

    (a) In General.--The Director of the Peace Corps shall 
contract with an eligible organization or organizations to 
conduct before January 1, [1997] 1998, a total of three 
evaluations of the health-care needs of the Peace Corps 
volunteers and the adequacy of the system through which the 
Peace Corps provides health-care services in meeting those 
needs.
          * * * * * * *
    (c) Reports to the Peace Corps.--An organization making an 
evaluation under this section shall submit to the Director of 
the Peace Corps a report containing its findings and 
recommendations not later than May 31, 1993, December 31, 1994, 
and December 31, [1996] 1997, as the case may be. Each report 
shall include recommendations regarding appropriate standards 
and procedures for ensuring the furnishing of quality medical 
care and for measuring the quality of care provided to Peace 
Corps volunteers.
                              ----------                              


                       ASIAN DEVELOPMENT BANK ACT

          * * * * * * *
SEC. 31. FOURTH REPLENISHMENT.

    (a) Subscription Authority.--
          (1) In general.--The United States Government of the 
        Bank may, on behalf of the United States, subscribe to 
        276,105 shares of the increase in the capital stock of 
        the Bank--
                  (A) 5,522 of which shall be shares of paid-in 
                capital stock; and
                  (B) 270,583 of which shall be shares of 
                callable capital stock.
          (2) Subject to appropriations.--The authority 
        provided by paragraph (1) shall be effective only to 
        such extent or in such amounts as are provided in 
        advance in appropriations Acts.
    (b) Limitations of Authorization of Appropriations.--For 
the subscription authorized by subsection (a), there are 
authorized to be appropriated to the Secretary of the Treasury 
$13,320,000 for each of the fiscal years 1996 and 1997.
                              ----------                              

          JORDAN SUPPLEMENTAL ECONOMIC ASSISTANCE ACT OF 1985

                           (public law 99-88)

          * * * * * * *
                               [TITLE IV

     [AUTHORIZATION OF ECONOMIC SUPPORT FUND ASSISTANCE FOR JORDAN

                              [Short title

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

                         [Economic support fund

    [Sec. 402. (a)(1) In addition to funds otherwise available 
for such purposes for such fiscal year, there are authorized to 
be appropriated to the President to carry out chapter 4 of part 
II of the Foreign Assistance Act of 1961, $250,000,000 for the 
fiscal year 1985, which amount shall be available only for 
Jordan.
    [(2) Of the funds authorized to be appropriated by 
paragraph (1)--
          [(A) for the fiscal year 1985, $50,00,000 shall be 
        available only for commodity import programs and 
        $30,000,000 shall be available only for project 
        assistance;
          [(B) for fiscal year 1986, $50,000,000 shall be 
        available only for commodity import programs and 
        $30,000,000 shall be available only for project 
        assistance; and
          [(C) for the fiscal year 1987, $60,000,000 shall be 
        available only for commodity import programs and 
        $30,000,000 shall be available only for project 
        assistance.
    [(b) Amounts appropriated to carry out this section are 
authorized to remain available until September 30, 1987.

                                [Policy

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


                 SPECIAL FOREIGN ASSISTANCE ACT OF 1986

                          (Public law 99-529)

    [Savings Provision.--Except as otherwise provided in this 
Act, the repeal by this Act of any provision of law that 
amended or repealed another provision of law does not affect in 
any way that amendment or repeal.]
          * * * * * * *

SECTION 1. SHORT TITLE

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

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

[SEC. 101. FINDINGS.

    [The Congress finds that--
          [(1) the United Nations Children's Fund (UNICEF) 
        reports that 3.5 million children die annually because 
        they have not been immunized against the six major 
        childhood diseases: polio, measles, whooping cough, 
        diphtheria, tetanus, and tuberculosis;
          [(2) at present less than 20 percent of children in 
        the developing world are fully immunized against these 
        diseases;
          [(3) each year more than five million additional 
        children are permanently disabled and suffer diminished 
        capacities to contribute to economic, social, and 
        political development of their countries because they 
        have not been immunized;
          [(4) ten million additional childhood deaths from 
        immunizable and potentially immunizable diseases could 
        be averted annually by the development of techniques in 
        biotechnology for new and cost-effective vaccines;
          [(5) the World Health Assembly, the Executive Board 
        of the United Nations Children's Fund, and the United 
        Nations General Assembly are calling upon the nations 
        of the world to commit the resources necessary to meet 
        the challenge of universal access to childhood 
        immunization by 1990;
          [(6) at the 1984 ``Bellagio Conference'' it was 
        determined that the goal of universal childhood 
        immunization by 1990 is indeed achievable; and
          [(7) the Congress has expressed its expectation that 
        the Agency for International Development will set as a 
        goal the immunization by 1990 of at least 80 percent of 
        all the children in those countries in which the Agency 
        has a program.

[SEC. 102. UNITED STATES PARTICIPATION IN GLOBAL EFFORT.

    [(a) United States Government Support.--The Congress calls 
upon the President to direct the Agency for International 
Development, working through the Centers for Disease Control 
and other appropriate Federal agencies, to work in a global 
effort to provide enhanced support toward achieving the goal of 
universal access to childhood immunization by 1990 by--
          [(1) assisting in the delivery, distribution, and use 
        of vaccines, including--
                  [(A) the building of locally sustainable 
                systems and technical capacities in developing 
                countries to reach, by the appropriate age, not 
                less than 80 percent of their annually 
                projected target population with the full 
                schedule of required immunizations; and
                  [(B) the development of a sufficient network 
                of indigenous professionals and institutions 
                with responsibility for developing, monitoring, 
                and assessing immunization programs and 
                continually adapting strategies to reach the 
                goal of preventing immunizable diseases; and
          [(2) performing, supporting, and encouraging research 
        and development activities, both in the public and 
        private sector, that will be targeted at developing new 
        vaccines and at modifying and improving existing 
        vaccines to make them more appropriate for use in 
        developing countries.
    [(b) Private Sector Support.--In support of this global 
effort, the President should appeal to the people of the United 
States and the United States private sector to support public 
and private efforts to provide the resources necessary to 
achieve universal access to childhood immunization by 1990.

[SEC. 103. FUNDING LEVELS.

    [(a) Earmarking.--Section 104(c)(3) of the Foreign 
Assistance Act of 1961 is amended by adding at the end thereof 
the following: ``Of the aggregate amounts made available for 
fiscal year 1987 to carry out paragraph (2) of this subsection 
(relating to the Child Survival Fund) and to carry out 
subsection (c) (relating to development assistance for health), 
$50,000,000 shall be used to carry out this paragraph.''.
    [(b) Authorization Level for Child Survival Fund.--Section 
104(c)(2)(B) of that Act is amended by striking out 
``$25,000,000 for fiscal year 1987'' and inserting in lieu 
thereof ``$75,000,000 for fiscal year 1987''.

                [TITLE II--PROMOTING DEMOCRACY IN HAITI

[SEC. 201. FINDINGS CONCERNING HAITI.

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

[SEC. 202 ECONOMIC ASSISTANCE FOR HAITI.

    [(a) Earmarking of Funds.--Not less than $108,000,000 of 
the aggregate amounts available for fiscal year 1987 to carry 
out sections 103 through 106 of the Foreign Assistance Act of 
1961 (relating to development assistance), chapter 4 of part II 
of that Act (relating to the Economic Support Fund), and titles 
I and II of the Agricultural Trade Development and Assistance 
Act of 1954 (relating to the Food for Peace Program) shall be 
available only for Haiti.
    [(b) Use of Development Assistance.--Assistance under 
sections 103 through 106 of the Foreign Assistance Act of 1961 
which is provided for Haiti pursuant to subsection (a) shall be 
used to support a transition to democracy in Haiti, emphasizing 
foreign investment, job creation (especially in the private 
sector), rural development, health care and sanitation, small-
scale irrigation, reforestation and land conservation, and 
literacy education. Such assistance should reflect the need to 
distribute development assistance resources more equitably 
among the various regions in Haiti in order to support 
sustainable development in all of Haiti.
    [(c) Requirement for Segregated Account for Economic 
Support Assistance Funds Paid to Government of Haiti.--Funds 
under chapter 4 of part II of the Foreign Assistance Act of 
1961 which are made available for Haiti pursuant to subsection 
(a) may be paid to the Government of Haiti only if the 
Government of Haiti will maintain those funds in a separate 
account and not commingle them with other funds.
    [(d) Conditions on Economic Support and Development 
Assistance.--Funds may be obligated for assistance for Haiti 
under sections 103 through 106 of chapter 4 of part II of the 
Foreign Assistance Act of 1961 pursuant to subsection (a) only 
if the President determines that the interim Government of 
Haiti--
          [(1) is improving the human rights situation in 
        Haiti;
          [(2) is implementing its timetable for completion of 
        a new constitution that promotes genuine democratic 
        reforms and guarantees the fundamental principles of 
        democracy;
          [(3) is establishing a framework for free and open 
        elections leading to a democratically-elected civilian 
        government, which would include free and functioning 
        political parties and associations, free labor unions, 
        and freedom of the press;
          [(4) is cooperating fully in implementing United 
        States development, food, and other economic assistance 
        programs in Haiti (including programs for prior fiscal 
        years);
          [(5) is maintaining a system of fiscal accountability 
        to ensure that all resources allocated to the 
        development of Haiti are used in the most effective and 
        efficient manner;
          [(6) is continuing its investigation of alleged human 
        rights abuses and corruption by the Duvalier government 
        and is prosecuting, in accordance with due process, 
        those responsible for human rights abuses and 
        corruption;
          [(7) is maintaining a free and independent judiciary 
        system;
          [(8) is continuing to cooperate with the United 
        States in halting illegal emigration to the United 
        States from Haiti; and
          [(9) is encouraging private sector development.
    [(e) Inter-American Foundation.--Section 401(s)(2) of the 
Foreign Assistance Act of 1969 is amended by striking out 
``$11,969,000 for fiscal year 1987'' and inserting in lieu 
thereof ``$12,969,000 for fiscal year 1987 (not less than 
$1,000,000 of which shall be for Haiti)''.
    [(f) Additional Assistance for Economic Development in 
Haiti.--In order to assist economic development in Haiti, a 
Foreign Commercial Service officer should be assigned to the 
United States Embassy in Haiti.

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

    [(a) Authorization of Assistance.--Up to $4,000,000 of the 
aggregate amounts available for fiscal year 1987 to carry out 
chapter 2 of part II of the Foreign Assistance Act of 1961 
(relating to grant military assistance), chapter 5 of part II 
of the Act (relating to international military education and 
training), and the Arms Export Control Act (relating to FMS 
assistance) may be made available for Haiti for education, 
training, and other nonlethal assistance (such as 
transportation equipment, communications equipment, and 
uniforms).
    [(b) Conditions on Military Assistance.--Funds made 
available pursuant to subsection (a) may be obligated only if 
the President certifies to the Congress the following;
          [(1) The Government of Haiti has submitted a formal 
        request to the United States specifying a comprehensive 
        plan for the reform and reorganization of the mission, 
        command, and control structures of the Haitian armed 
        forces consistent with a transition to democracy , the 
        rule of law, constitutional government, and an elected 
        civilian government. Such a plan should include a 
        publicly announced commitment by the armed forces of 
        Haiti to abide by international human rights standards 
        and adoption of a code of conduct to assure adherence 
        to these standards.
          [(2) The Government of Haiti is making substantial 
        efforts--
                  [(A) to prevent the involvement of the 
                Haitian armed forces in human rights abuses and 
                corruption by removing from those forces and 
                prosecuting, in accordance with due process, 
                those military personnel responsible for the 
                human rights abuses and corruption;
                  [(B) to ensure that freedom of speech and 
                assembly are respected;
                  [(C) to conduct investigations into the 
                killings of unarmed civilians in Gonaives, 
                Martissant, and Fort Dimanche, to prosecute, in 
                accordance with due process, those responsible 
                for those killings, and to prevent any similar 
                occurrences in the future;
                  [(D) to provide education and training to the 
                Haitian armed forces with respect to 
                internationally recognized human rights and the 
                civil and political rights essential to 
                democracy, in order to enable those forces to 
                function consistent with those rights; and
                  [(E) to take steps to implement the policy of 
                the Government of Haiti requiring former 
                members of the Volunteers for National Security 
                (VSN) to turn in their weapons and to take the 
                necessary actions to enforce this requirement.
    [(c) Reports.--Not later than three months after the 
President submits his certification under subsection (b) and 
every three months thereafter, the President shall report to 
the Congress on the extent to which the actions of the 
Government of Haiti are consistent with each of the objectives 
specified in subsection (b). Half of the assistance provided 
pursuant to subsection (a) shall be withheld from delivery 
until the President submits the first such report.
    [(d) Notification to Congress.--Funds made available 
pursuant to subsection (a) may be obligated only if the 
Committee on Appropriations and the Committee on Foreign 
Affairs of the House of Representatives and the Committee on 
Appropriations and the Committee on Foreign Relations of the 
Senate are notified fifteen days in advance.
    [(e) Relation to Existing Provision.--Assistance under 
subsection (a) may be provided notwithstanding the limitations 
contained in section 705(e) of the International Security and 
Development Cooperation Act of 1985 and is in addition to the 
assistance allowed under the section.

[SEC. 204. RECOVERY BY HAITI OF ASSETS STOLEN BY DUVALIER REGIME.

    [(a) Findings.--The Congress finds that--
          [(1) the Government of Haiti believes that former 
        president-for-life Jean Claude Duvalier and other 
        individuals associated with the Duvalier regime 
        illegally diverted to their own use sustainable amounts 
        of the assets of the Government of Haiti;
          [(2) the Government of Haiti is attempting to locate 
        and recover those assets through legal means;
          [(3) virtually every relevant jurisdiction, both in 
        the United States and abroad, requires the posting of 
        some form of security to secure the issuance of orders 
        of attachment of other judicial seizures of property;
          [(4) the Government of Haiti is unable, without 
        outside assistance, to post the necessary security 
        because of its lack of assets;
          [(5) Haiti's economic situation could be 
        significantly improved, and the need for external 
        resources reduced, if the Government of Haiti is able 
        to pursue its legal remedies against those who are in 
        large part responsible for the economic crisis in 
        Haiti; and
          [(6) the United States has a substantial foreign 
        policy interest in helping the Government of Haiti 
        recover any assets which were illegally diverted by 
        those associated with the Duvalier regime.
    [(b) Actions to Assists Haiti.--The President shall 
exercise the authorities granted by section 203 of the 
International Emergency Economic Powers Act (50 U.S.C. App. 
1702) to assist the Government of Haiti in its efforts to 
recover, through legal proceedings, assets which the Government 
of Haiti alleges were stolen by former president-for-life Jean 
Claude Duvalier and other individuals associated with the 
Duvalier regime. This subsection shall be deemed to satisfy the 
requirements of section 202 of that Act.

  [TITLE III--PROTECTING TROPICAL FORESTS AND BIOLOGICAL DIVERSITY IN 
                          DEVELOPING COUNTRIES

[SEC. 301. PROTECTING TROPICAL FORESTS.

    [Chapter 1 of part I of the Foreign Assistance Act of 1961 
is amended--
          [(1) by redesignating section 118 as section 117;
          [(2) by striking out subsection (d) of that section; 
        and
          [(3) by inserting after that section the following 
        new section 118:
[``SEC. 118. TROPICAL FORESTS.

    [``(a) Importance of Forests and Tree Cover.--In enacting 
section 103(b)(3) of this Act the Congress recognized the 
importance of forests and tree cover to the developing 
countries. The Congress is particularly concerned about the 
continuing and accelerating alteration, destruction and loss of 
tropical forests in developing countries, which pose a serious 
threat to development and the environment. Tropical forest 
destruction and loss--
          [``(1) result in shortages of wood, especially wood 
        for fuel; loss of biologically productive wetlands; 
        siltation of lakes, reservoirs, and irrigation systems; 
        floods; destruction of indigenous peoples; extinction 
        of plant and animal species; reduced capacity for food 
        production; and loss of genetic resources; and
          [``(2) can result in desertification and 
        destabilization of the earth's climate.
Properly managed tropical forests provide a sustained flow of 
resources essential to the economic growth of developing 
countries, as well as genetic resources of value to developed 
and developing countries alike.
    [``(b) Priorities.--The concerns expressed in subsection 
(a) and the recommendations of the United States Interagency 
Task Force on Tropical Forests shall be given high priority by 
the President--
          [``(1) in formulating and carrying out programs and 
        policies with respect to developing countries, 
        including those relating to bilateral and multilateral 
        assistance and those relating to private sector 
        activities; and
          [``(2) in seeking opportunities to coordinate public 
        and private development and investment activities which 
        affect forests in developing countries.
    [``(c) Assistance to Developing Countries.--In providing 
assistance to developing countries, the President shall do the 
following:
          [``(1) Place a high priority on conservation and 
        sustainable management of tropical forests.
          [``(2) To the fullest extent feasible, engage in 
        dialogues and exchanges of information with recipient 
        countries--
                  [``(A) which stress the importance of 
                conserving and sustainably managing forest 
                resources for the long-term economic benefit of 
                those countries, as well as the irreversible 
                losses associated with forest destruction, and
                  [``(B) which identify and focus on policies 
                of those countries which directly or indirectly 
                contribute to deforestation.
          [``(3) To the fullest extent feasible, support 
        projects and activities--
                  [``(A) which offer employment and income 
                alternatives to those who otherwise would cause 
                destruction and loss of forests, and
                  [``(B) which help developing countries 
                identify and implement alternatives to 
                colonizing forested areas.
          [``(4) To the fullest extent feasible, support 
        training programs, educational efforts, and the 
        establishment or strengthening of institutions which 
        increase the capacity of developing countries to 
        formulate forest policies, engage in relevant land-use 
        planning, and otherwise improve the management of their 
        forests.
          [``(5) To the fullest extent feasible, help end 
        destructive slash-and-burn agriculture by supporting 
        stable and productive farming practices in areas 
        already cleared or degraded and on lands which 
        inevitably will be settled, with special emphasis on 
        demonstrating the feasibility of agroforestry and other 
        techniques which use technologies and methods suited to 
        the local environment and traditional agricultural 
        techniques and feature close consultation with and 
        involvement of local people.
          [``(6) To the fullest extent feasible, help conserve 
        forests which have not yet been degraded, by helping to 
        increase production on lands already cleared or 
        degraded through support of reforestation, fuelwood, 
        and other sustainable forestry projects and practices, 
        making sure that local people are involved at all 
        stages of project design and implementation.
          [``(7) to the fullest extent feasible, support 
        projects and other activities to conserve forested 
        watersheds and rehabilitate those which have been 
        deforested, making sure that local people are involved 
        at all stages of project design and implementation.
          [``(8) To the fullest extent feasible, support 
        training, research, and other actions which lead to 
        sustainable and more environmentally sound practices 
        for timber harvesting, removal, and processing, 
        including reforestation, soil conservation, and other 
        activities to rehabilitate degraded forest lands.
          [``(9) To the fullest extent feasible, support 
        research to expand knowledge of tropical forests and 
        identify alternatives which will prevent forest 
        destruction, loss, or degradation, including research 
        in agroforestry, sustainable management of natural 
        forests, small-scale farms and gardens, small-scale 
        animal husbandry, wider application of adopted 
        traditional practices, and suitable crops and crop 
        combinations.
          [``(10) To the fullest extent feasible, conserve 
        biological diversity in forest areas by--
                  [``(A) supporting and cooperating with United 
                States Government agencies, other donors (both 
                bilateral and multilateral), and other 
                appropriate governmental, intergovernmental, 
                and nongovernmental organizations in efforts to 
                identify, establish, and maintain a 
                representative network of protected tropical 
                forest ecosystems on a world-wide basis;
                  [``(B) whenever appropriate, making the 
                establishment of protected areas a condition of 
                support for activities involving forest 
                clearance or degradation; and
                  [``(C) helping developing countries identify 
                tropical forest ecosystems and species in need 
                of protection and establish and maintain 
                appropriate protected areas.
          [``(11) to the fullest extent feasible, engage in 
        efforts to increase the awareness of United States 
        Government agencies and other donors, both bilateral 
        and multilateral, of the immediate and long-term value 
        of tropical forests.
          [``(12) To the fullest extent feasible, utilize the 
        resources and abilities of all relevant United States 
        Government agencies.
          [``(13) Require that any program or project under 
        this chapter significantly affecting tropical forests 
        (including projects involving the planting of exotic 
        plant species)--
                  [``(A) be based upon careful analysis of the 
                alternatives available to achieve the best 
                sustainable use of the land, and
                  [``(B) take full account of the environmental 
                impacts of the proposed activities on 
                biological diversity,
        as provided for in the environmental procedures of the 
        Agency for International Development.
          [``(14) Deny assistance under this chapter for--
                  [``(A) the procurement or use of logging 
                equipment, unless an environmental assessment 
                indicates that all timber harvesting operations 
                involved will be conducted in an 
                environmentally sound manner which minimizes 
                forest destruction and that the proposed 
                activity will produce positive economic 
                benefits and sustainable forest management 
                systems; and
                  [``(B) actions which significantly degrade 
                national parks or similar protected areas which 
                contain tropical forests or introduce exotic 
                plants or animals or animals into such areas.
          [``(15) Deny assistant under this chapter for the 
        following activities unless an environmental assessment 
        indicates that the proposed activity will contribute 
        significantly and directly to improving the livelihood 
        of the rural poor and will be conducted in an 
        environmentally sound manner which supports sustainable 
        development:
                  [``(A) Activities which would result in the 
                conversion of forest lands to the rearing of 
                livestock.
                  [``(B) The construction, upgrading, or 
                maintenance of roads (including temporary haul 
                roads for logging or other extractive 
                industries) which pass through relatively 
                undegraded forest lands.
                  [``(C) The colonization of forest lands.
                  [``(D) The construction of dams or other 
                water control structures which flood relatively 
                undegraded forest lands.
    [``(d) PVOs and Other Nongovernmental Organizations.--
Whenever feasible, the President shall accomplish the 
objectives of this section through projects managed by private 
and voluntary organizations or international, regional, or 
national nongovernmental organizations which are active in the 
region or country where the project is located.
    [``(e) Country Analysis Requirements.--Each country 
development strategy statement or other country plan prepared 
by the Agency for International Development shall include an 
analysis of--
          [``(1) the actions necessary in that country to 
        achieve conservation and sustainable management of 
        tropical forests, and
          [``(2) the extent to which the actions proposed for 
        support by the Agency meet the needs thus identified.
    ``(f) Annual Report.--Each annual report required by 
section 634(a) of this Act shall include a report on the 
implementation of this section.''.

SEC. 302. PROTECTING BIOLOGICAL DIVERSITY.

    [Section 119 of the Foreign Assistance Act of 1961 is 
amended by striking out subsections (c) and (d) and inserting 
in lieu thereof the following:
    [``(c) Funding Level.--For fiscal year 1987, not less than 
$2,500,000 of the funds available to carry out this part 
(excluding funds made available to carry out section 104(c)(2), 
relating to the Child Survival Fund) shall be allocated for 
assistance pursuant to subsection (b) for activities which were 
not funded prior to fiscal year 1987. In addition, the Agency 
for International Development shall, to the fullest extent 
possible, continue and increase assistance pursuant to 
subsection (b) for activities for which assistance was provided 
in fiscal years prior to fiscal year 1987.
    [``(d) Country Analysis Requirements.--Each country 
development strategy statement or other country plan prepared 
by the Agency for International Development shall include an 
analysis of--
          [``(1) the actions necessary in that country to 
        conserve biological diversity, and
          [``(2) the extent to which the actions proposed for 
        support by the Agency meet the needs thus identified.
    [``(e) Local Involvement.--To the fullest extent possible, 
projects supported under this section shall include close 
consultation with and involvement of local people at all stages 
of design and implementation.
    [``(f) PVOs and Other Nongovernmental Organizations.--
Whenvever feasible, the objectives of this section shall be 
accomplished through projects managed by appropriate private 
and voluntary organizations, or international, regional, or 
national nongovernmental organizations, which are active in the 
region or country where the project is located.
    [``(g) Actions by AID.--The Administrator of the Agency for 
International Development shall--
          [``(1) cooperate with appropriate international 
        organizations, both governmental and nongovernmental;
          [``(2) look to the World Conservation Strategy as an 
        overall guide for actions to conserve biological 
        diversity;
          [``(3) engage in dialogues and exchanges of 
        information with recipient countries which stress the 
        importance of conserving biological diversity for the 
        long-term economic benefit of those countries and which 
        identify and focus on policies of those countries which 
        directly or indirectly contribute to loss of biological 
        diversity;
          [``(4) support training and education efforts which 
        improve the capacity of recipient countries to prevent 
        loss of biological diversity;
          [``(5) whenever possible, enter into long-term 
        agreements in which the recipient country agrees to 
        protect ecosystems or other wildlife habitats 
        recommended for protection by relevant governmental or 
        nongovernmental organizations or as a result of 
        activities undertaken pursuant to paragraph (6), and 
        the United States agrees to provide, subject to 
        obtaining the necessary appropriations, additional 
        assistance necessary for the establishment and 
        maintenance of such protected areas;
          [``(6) support, as necessary and in cooperation with 
        the appropriate governmental and nongovernmental 
        organizations, efforts to identify and survey 
        ecosystems in recipient countries worthy of protection;
          [``(7) cooperate with and support the relevant 
        efforts of other agencies of the United States 
        Government, including the United States Fish and 
        Wildlife Service, the National Park Service, the Forest 
        Service, and the Peace Corps;
          [``(8) review the Agency's environmental regulations 
        and revise them as necessary to ensure that ongoing and 
        proposed actions by the Agency do not inadvertently 
        endanger wildlife species or their critical habitats, 
        harm protected areas, or have other adverse impacts on 
        biological diversity (and shall report to the Congress 
        within a year after the date of enactment of this 
        paragraph on the actions taken pursuant to this 
        paragraph);
          [``(9) ensure that environmental profiles sponsored 
        by the Agency include information needed for 
        conservation of biological diversity; and
          [``(10) deny any direct or indirect assistance under 
        this chapter for actions which significantly degrade 
        national parks or similar protected areas or introduce 
        exotic plants or animals into such areas.
    [``(h) Annual Reports.--Each annual report required by 
section 634(a) of this Act shall include, in a separate volume, 
a report on the implementation of this section''.

    [TITLE IV--MISCELLANEOUS PROVISIONS RELATING TO CERTAIN FOREIGN 
                          ASSISTANCE PROGRAMS

[SEC. 401. INCREASE AUTHORIZATION FOR INTERNATIONAL NARCOTICS CONTROL 
                    PROGRAMS.

    [Section 482(a)(1) of the Foreign Assistance Act of 1961 is 
amended by striking out ``$57,529,000 for the fiscal year 
1987'' and inserting in lieu thereof ``$65,445,000 for the 
fiscal year 1987''.

[SEC. 402 AUTHORIZING A SEPARATE LINE ITEM APPROPRIATION FOR THE 
                    INSPECTOR GENERAL OF THE AGENCY FOR INTERNATIONAL 
                    DEVELOPMENT.

    [Section 667(a)(1) of the Foreign Assistance Act of 1961 is 
amended by inserting after ``Act'' the following: ``, of which 
$21,750,000 for the fiscal year 1987 is authorized for the 
necessary operating expenses of the Office of the Inspector 
General of the Agency for International Development and the 
remaining amount for the fiscal year is authorized for other 
necessary operating expenses of that agency''.

[SEC. 403. ADDITIONAL PROVISIONS.

    [(a) Board of the Inter-American Foundation.--Section 
401(g) of the Foreign Assistance Act of 1969 (22 U.S.C. 
290f.(g)) is amended by striking out ``seven'' in the first 
sentence and ``Four'' in the second sentence and inserting in 
lieu thereof ``nine'' and ``Six, respectively.
    [(b) Effective Date.--The amendments made by subsection (a) 
shall take effect 120 days after the date of enactment of this 
Act.

[SEC. 404. OFFSETTING REDUCTIONS IN CERTAIN FOREIGN ASSISTANCE 
                    PROGRAMS.

    [In order to provide the increased authorizations of 
appropriations contained in section 103(b), section 202(e), and 
section 401 without increasing the overall amount authorized to 
be appropriated for foreign assistance programs for fiscal year 
1987--
          [(1) section 104(g)(1)(B) of the Foreign Assistance 
        Act of 1961 (relating to development assistance for 
        health programs) is amended by striking out 
        ``$205,000,000 for fiscal year 1987'' and inserting in 
        lieu thereof ``$180,000,000 for fiscal year 1987''; and
          [(2) section 302(a)(1) of that Act (relating to 
        international organizations and programs) is amended by 
        striking out ``$270,000,000 for fiscal year 1987'' and 
        insert in lieu thereof ``$236,084,000 for fiscal year 
        1987''.

[SEC. 405. CONFORMING AMENDMENT.

    [Paragraph (6) of section 413(a) of the Omnibus Diplomatic 
Security and Antiterroism Act of 1986 (Public Law 99-399) is 
repealed; and the sentence of section 209(a)(1) of the Foreign 
Service Act of 1980 which was repealed by that paragraph is 
hereby re-enacted.]
    [Approved October 24, 1986.]
                              ----------                              


             African Famine Relief and Recovery Act of 1985

 [AN ACT To authorize appropriations for famine relief and recovery in 
                                 Africa

    [Be it enacted by the Senate and House of Representatives 
of the United States of America in Congress assembled,

[SECTION 1. SHORT TITLE.

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

[SEC. 2. * * *

[SEC. 3. MIGRATION AND REFUGEE ASSISTANCE.

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

[SEC. 4. DEPARTMENT OF DEFENSE ASSISTANCE.

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

[SEC. 5. GENERAL PROVISIONS RELATING TO ASSISTANCE.

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

[SEC. 6. REPORTS ON AFRICAN FAMINE ASSISTANCE.

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


                LEBANON EMERGENCY ASSISTANCE ACT OF 1983

                           (Public Law 98-43)

    [An Act to authorize supplemental assistance to aid Lebanon in 
    rebuilding its economy and armed forces, and for other purposes

    [Be it enacted by the Senate and House of Representatives 
of the United States of America in Congress assembled,

                              short title

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

                         [economic support fund

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

                  [military sales and related programs

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

                 [united states armed forces in lebanon

    [Sec. 4. (a) The President shall obtain statutory 
authorization from the Congress with respect to any substantial 
expansion in the number or role in Lebanon of United States 
Armed Forces, including any introduction of United States Armed 
Forces into Lebanon in conjunction with agreements providing 
for the withdrawal of all foreign troops from Lebanon and for 
the creation of a new multinational peace-keeping force in 
Lebanon.
    [(b) Nothing in this section is intended to modify, limit, 
or suspend any of the standards and procedures prescribed by 
the War Powers Resolution of 1973.
    [Approved June 27, 1983.]
                              ----------                              


   THE INTERNATIONAL SECURITY AND DEVELOPMENT COOPERATION ACT OF 1981

                          (Public Law 97-113)

    [Savings Provision.--Except as otherwise provided in this 
Act, the repeal by this Act of any provision of law that 
amended or repealed another provision of law does not affect in 
any way that amendment or repeal.]
          * * * * * * *

                              short title

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

             [TITLE I--MILITARY SALES AND RELATED PROGRAMS

                        [reports to the congress

    [Sec. 101. (a)(1) Section 3(d)(1) of the Arms Export 
Control Act is amended--
          [(A) in the text preceding subparagraph (A) by 
        striking out ``to a transfer of a defense article, or 
        related training or other defense service, sold under 
        this Act and may not give his consent to such a 
        transfer under section 505(a)(1) or 505(a)(4) of the 
        Foreign Assistance Act of 1961'' and inserting in lieu 
        thereof ``, or under section 505(a)(1) or 505(a)(4) of 
        the Foreign Assistance Act of 1961, to a transfer of 
        any major defense equipment valued (in terms of its 
        original acquisition cost) at $14,000,000 or more, or 
        any defense article or related training or other 
        defense service valued (in terms of its original 
        acquisition cost) at $50,000,000 or more,'';
          [(B) by amending subparagraph (B) to read as follows:
          [``(B) a description of the article or service 
        proposed to be transferred, including its acquisition 
        cost.'';
          [(C) in subparagraph (C) by striking out ``defense 
        article or related training or other defense service'' 
        and inserting in lieu thereof ``article or service''; 
        and
          [(D) in the last sentence by striking out ``defense 
        articles, or related training or other defense 
        services,'' and inserting in lieu thereof ``articles or 
        services''.
    [(2) Section 3(d)(3) of such Act is amended by striking out 
all that follows ``The President may not give his consent'' 
through ``section 38 of this Act,'' and inserting in lieu 
thereof ``to the transfer of any major defense equipment valued 
(in terms of its original acquisition cost) at $14,000,000 or 
more, or of any defense article or defense service valued (in 
terms of its original acquisition cost) at $50,000,000 or more, 
the export of which has been licensed or approved under section 
39 of this Act,''.
    [(3) Section 3(d)(4) of such Act is amended--
          [(A) by inserting ``or'' at the end of subparagraph 
        (B);
          [(B) by striking out ``; or'' at the end of 
        subparagraph (C) and inserting in lieu thereof a 
        period; and
          [(C) by striking out subparagraph (D).
    [(b)(1) Section 28(a) of such Act is amended by striking 
out ``five'' and inserting in lieu thereof ``fifteen''.
    [(2) Section 28(b) of such Act is amended by striking out 
``the issuance of a letter of offer in accordance with such 
request would be subject to the requirements of section 36(b) 
of this Act'' and inserting in lieu thereof ``the request 
involves a proposed sale of major defense equipment for 
$7,000,000 or more or of any other defense articles or defense 
services for $25,000,000 or more''.
    [(c) The first sentence of section 36(b)(1) of such Act is 
amended--
          [(1) by striking out ``$25,000,000'' and inserting in 
        lieu thereof ``$50,000,000''; and
          [(2) by striking out ``$7,000,000'' and by inserting 
        in lieu thereof ``$14,000,000''.
    [(d) Section 36(c) of such Act is amended in the first 
sentence of paragraph (1)--
          [(1) by striking out ``$7,000,000'' and inserting in 
        lieu thereof ``$14,000,000''; and
          [(2) by striking out ``25,000,000'' and inserting in 
        lieu thereof ``$50,000,000''.
    [(e) Section 36(d) of such Act is amended by striking out 
``(c)'' and inserting in lieu thereof ``(c)(1)''.

[proposed transfers or sales to the north atlantic treaty organization, 
                    japan, australia, or new zealand

    [Sec. 102. (a) Section 3(d)(2) of the Arms Export Control 
Act is amended--
          [(1) by striking out ``(2) Unless'' and inserting in 
        lieu thereof ``(2)(A) except as provided in 
        subparagraph (B), unless''; and
          [(2) by adding at the end thereof the following:
    [``(B) In the case of a proposed transfer to the North 
Atlantic Treaty Organization, or any member country of such 
Organization, Japan, Australia, or New Zealand, unless the 
President states in the certification submitted pursuant to 
paragraph (1) of this subsection that an emergency exists which 
requires that consent to the proposed transfer become effective 
immediately in the national security interests of the United 
States, such consent shall not become effective until fifteen 
calendar days after the date of such submission and such 
consent shall become effective then only if the Congress does 
not adopt, within such fifteen-day period, a concurrent 
resolution disapproving the proposed transfer.''.
    [(b)(1) Section 36(b)(1) of such Act is amended in the 
fifth sentence by striking out ``if the Congress, within thirty 
calendar days after receiving such certification,'' and 
inserting in lieu thereof the following: ``, with respect to a 
proposed sale to the North Atlantic Treaty Organization, any 
member country of such Organization, Japan, Australia, or New 
Zealand, if the Congress, within fifteen calendar days after 
receiving such certification, or with respect to a proposed 
sale to any other country or organization, if the Congress 
within thirty calendar days after receiving such 
certification,''.
    [(2) Section 36(b)(2) of such Act is amended by inserting 
before the period at the end thereof a comma and the following: 
``except that for purposes of consideration of any resolution 
with respect to the North Atlantic Treaty Organization, any 
member country of such Organization, Japan, Australia, or New 
Zealand, it shall be in order in the Senate to move to 
discharge a committee to which such resolution was referred if 
such committee has not reported such resolution at the end of 
five calendar days after its introduction''.

                 [personnel performing defense services

    [Sec. 103. Section 21(c)(2) of the Arms Export Control Act 
is amended to read as follows:
          [``(2) Within forty-eight hours of the existence of, 
        or a change in status of significant hostilities or 
        terrorist acts or a series of such acts, which may 
        endanger American lives or property, involving a 
        country in which United States personnel are performing 
        defense services pursuant to this Act or the Foreign 
        Assistance Act of 1961, the President shall submit to 
        the Speaker of the House of Representatives and to the 
        President pro tempore of the Senate a report, in 
        writing, classified if necessary, setting forth--
                  [``(A) the identity of such country;
                  [``(B) a description of such hostilities or 
                terrorist acts; and
                  [``(C) the number of members of the United 
                States Armed Forces and the number of United 
                States civilian personnel that may be 
                endangered by such hostilities or terrorist 
                acts.''

[charges for use and nonrecurring research, development, and production 
                                 costs

    [Sec. 104. Section 21(e)(2) of the Arms Export Control Act 
is amended by inserting ``standardization with the Armed Forces 
of Japan, Australia, or New Zealand in furtherance of the 
mutual defense treaties between the United States and those 
countries,'' immediately after ``standardization,''.

      [foreign military sales authorization and aggregate ceilings

    [Sec. 105. (a) Section 31(a) of the Arms Export Control Act 
is amended by striking out ``$500,000,000 for the fiscal year 
1981'' and inserting in lieu thereof ``$800,000,000 for the 
fiscal year 1982 and $800,000,000 for the fiscal year 1983''.
    [(b) Section 31(b) of such Act is amended to read as 
follows:
    [``(b)(1) The total amount of credits (or participations in 
credits) extended under section 23 of this Act shall not exceed 
$800,000,000 for the fiscal year 1982 and $800,000,000 for the 
first year 1983.
    [``(2) The total principal amount of loans guaranteed under 
section 24(a) of this Act shall not exceed $3,269,525,000 for 
the fiscal year 1982 and 3,269,525,000 for the fiscal year 
1983.
    [``(3) Of the aggregate total of credits (or participations 
in credits) under Section 23 of this Act, and of the total 
principal amount of loans guaranteed under section 24(a) of 
this Act, not less than $1,400,000,000 for the fiscal year 1982 
and not less than $1,400,000,000 for the fiscal year 1983 shall 
be available only for Israel, of which not less than 
$550,000,000 for each such year shall be available as credits 
under section 23 of this Act.
    [``(4) Of the amount available under paragraph (2) of this 
subsection for loan guaranties under section 24(a) of this Act, 
not less than $280,000,000 for the fiscal year 1982 and not 
less than $280,000,000 for the fiscal year 1983 shall be 
available only for Greece.
    [``(5) The principal amount of loans guaranteed under 
section 24(a) of this Act for the fiscal year 1982, and for the 
fiscal year 1983 with respect to Egypt, Greece, Sudan, Somalia, 
and Turkey shall (if and to the extent each such country so 
desires) be repaid in not more than twenty years, following a 
grace period of ten years on repayment of principal.
    [``(6) Of the total amount of credits (or participations in 
credits) extended under section 23 of this Act for the fiscal 
years 1982 and 1983, not less than $200,000,000 for each such 
year shall be available only for Egypt, and Egypt shall be 
released from its contractual liability to repay the United 
States Government with respect to such credits and 
participations in credits.
    [``(7) Of the total amount of credits (or participations in 
credits) extended under section 23 of this Act for the fiscal 
years 1982 and 1983, not less than $50,000,000 for each such 
year shall be available only for the Sudan, and the Sudan shall 
be released from its contractual liability to repay the United 
States Government with respect to such credits and 
participations in credits.''.
    [(c) Section 31(c) of such Act is amended--
          [(1) in the first sentence by striking out ``fiscal 
        year 1981'' and inserting in lieu thereof ``fiscal year 
        1982 and for the fiscal year 1983'';
          [(2) in the last sentence by striking out 
        ``$500,000,000'' and inserting in lieu thereof 
        ``$550,000,000''; and
          [(3) in the last sentence by inserting ``each'' 
        immediately before ``such year''.

                 [repeal of ceiling on commercial sales

    [Sec. 106. Section 38(b)(3) of the Arms Export Control Act 
is repealed.

            [periodic review of items on the munitions list

    [Sec. 107. Section 38 of the Arms Export Control Act is 
amended by adding at the end thereof the following new 
subsection:
    [``(f) The President shall periodically review the items on 
the United States Munitions List to determine what items, if 
any, no longer warrant export controls under this section. The 
results of such reviews shall be reported to the Speaker of the 
House of Representatives and to the Committee on Foreign 
Relations and the Committee on Banking, Housing, and Urban 
Affairs of the Senate. Such a report shall be submitted at 
least 30 days before any item is removed from the Munitions 
List and shall describe the nature of any controls to be 
imposed on that item under the Export Administration Act of 
1979.''.

                   [special defense acquisition fund

    [Sec. 108. (a) The Arms Export Control Act is amended by 
adding at the end thereof the following new chapter:

             [``CHAPTER 5--SPECIAL DEFENSE ACQUISITION FUND

    [``Sec. 51. Special Defense Acquisition Fund.--(a)(1) Under 
the direction of the President and in consultation with the 
Secretary of State, the Secretary of Defense shall establish a 
Special Defense Acquisition Fund (hereafter in this chapter 
referred to as the `Fund'), to be used as a revolving fund 
separate from other accounts, under the control of the 
Department of Defense, to finance the acquisition of defense 
articles and defense service in anticipation of their transfer 
pursuant to this Act, the Foreign Assistance Act of 1961, or as 
otherwise authorized by law, to eligible foreign countries and 
international organizations, and may acquire such articles and 
services with the funds in the Fund as he may determine. 
Acquisition under this chapter of items for which the initial 
issue quantity requirements for United States Armed Forces have 
not been fulfilled and are not under current procurement 
contract shall be emphasized when compatible with security 
assistance requirements for the transfer of such items.
    [``(2) Nothing in this chapter may be construed to limit or 
impair any responsibilities conferred upon the Secretary of 
State or the Secretary of Defense under this Act or the Foreign 
Assistance Act of 1961.
    [``(b) The Fund shall consist of--
          [``(1) collections from sales made under letters of 
        offer issued pursuant to section 21(a)(1) of this Act 
        representing the actual value of defense articles not 
        intended to be replaced in stock,
          [``(2) collections from sales representing the value 
        of asset use charges (including contractor rental 
        payments for United States Government-owned plant and 
        production equipment) and charges for the proportionate 
        recoupment of nonrecurring research, development, and 
        production costs, and
          [``(3) collections from sales made under letters of 
        offer (or transfers made under the Foreign Assistance 
        Act of 1961) of defense articles and defense services 
        acquired under this chapter, representing the value of 
        such items calculated in accordance with paragraph (2) 
        or (3) of section 21(a) or section 22 of this Act or 
        section 644(m) of the Foreign Assistance Act of 1961, 
        as appropriate,
[together with such funds as may be authorized and appropriated 
or otherwise made available for the purposes of the Fund.
    [``(c)(1) The size of the Fund may not exceed such dollar 
amount as is prescribed in section 138(g) of title 10, United 
States Code. For purposes of this limitation, the size of the 
Fund is the amounts in the Fund plus the value (in terms of 
acquisition cost) of the defense articles acquired under this 
chapter which have not been transferred from the Fund in 
accordance with this chapter.
    [``(2) Amounts in the Fund shall be available for 
obligation in any fiscal year only to such extent or in such 
amounts as are provided in advance in appropriation Acts.
    [``Sec. 52. Use and Transfer of Items Procured by the 
Fund.--(a) No defense article or defense service acquired by 
the Secretary of Defense under this chapter may be transferred 
to any foreign country or international organization unless 
such transfer is authorized by this Act, the Foreign Assistance 
Act of 1961, or other law.
    [``(b) The President may authorize the temporary use by the 
United States Armed Forces of defense articles and defense 
services acquired under this chapter prior to their transfer to 
a foreign country or international organization, if such is 
necessary to meet national defense requirements and the United 
States Armed Forces bear the costs of operation and maintenance 
of such articles or services while in their use and the costs 
of restoration or replacement upon the termination of such use.
    [``(c) Except as provided in subsection (b) of this 
section, the Fund may be used to pay for storage, maintenance, 
and other costs related to the preservation and preparation for 
transfer of defense articles and defense services acquired 
under this chapter prior to their transfer, as well as the 
administrative costs of the Department of Defense incurred in 
the acquisition of such items to the extent not reimbursed 
pursuant to section 43(b) of this Act.
    [``Sec. 53. Annual Reports to Congress.--(a) Not later than 
December 31 of each year, the President shall submit to the 
Congress a comprehensive report on acquisitions of defense 
articles and defense services under this chapter. Each such 
report shall include--
          [``(1) a description of each contract for the 
        acquisition of defense articles or defense services 
        under this chapter which was entered into during the 
        preceding fiscal year;
          [``(2) a description of each contract for the 
        acquisition of defense articles or defense services 
        under this chapter which the President anticipates will 
        be entered into during the current fiscal year;
          [``(3) a description of each defense article or 
        defense service acquired under this chapter which was 
        transferred to a foreign country or international 
        organization during the preceding fiscal year; and
          [``(4) an evaluation of the impact of the utilization 
        of the authority of this chapter on United States 
        defense production and the readiness of the United 
        States Armed Forces.
    [``(b) As part of the annual written report to the Congress 
required by section 139(a) of title 10, United States Code, 
regarding procurement schedules for each weapon system for 
which funding authorization is required, the President shall 
provide a report estimating the likely procurements to be made 
through the Fund.''.
    [(b) Section 138 of title 10, United States Code, is 
amended by adding immediately following subsection (f) the 
following new subsection:
    [``(g) The size of the Special Defense Acquisition Fund 
established pursuant to chapter 5 of the Arms Export Control 
Act may not exceed $300,000,000 in fiscal year 1982 and may not 
exceed $600,000,000 in fiscal year 1983 or any fiscal year 
thereafter.''.

                      [leasing of defense articles

    [Sec. 109. (a) The Arms Export Control Act, as amended by 
section 108 of this Act, is further amended by adding at the 
end thereof the following new chapter:

                [``CHAPTER 6--LEASES OF DEFENSE ARTICLES

    [``Sec. 61. Leasing Authority.--(a) The President may lease 
defense articles in the stocks of the Department of Defense to 
an eligible foreign country or international organization if--
          [``(1) he determines that there are compelling 
        foreign policy and national security reasons for 
        providing such articles on a lease basis rather than on 
        a sales basis under this Act;
          [``(2) he determines that the articles are not for 
        the time needed for public use; and
          [``(3) the country or international organization has 
        agreed to pay in United States dollars all costs 
        incurred by the United States Government in leasing 
        such articles, including reimbursement for depreciation 
        of such articles while leased, the costs of restoration 
        or replacement if the articles are damaged while 
        leased, and the replacement cost (less any depreciation 
        in the value) of the articles if the articles are lost 
        or destroyed while leased.
[The requirement of paragraph (3) shall not apply to leases 
entered into for purposes of cooperative research or 
development, military exercises, or communications or 
electronics interface projects, or to any defense article which 
has passed three-quarters of its normal service life.
    [``(b) Each lease agreement under this section shall be for 
a fixed duration of not to exceed five years and shall provide 
that, at any time during the duration of the lease, the 
President may terminate the lease and require the immediate 
return of the leased articles.
    [``(c) Defense articles in the stocks of the Department of 
Defense may be leased or loaned to a foreign country or 
international organization only under the authority of this 
chapter or chapter 2 of part II of the Foreign Assistance Act 
of 1961, and may not be leased to a foreign country or 
international organization under the authority of section 2667 
of title 10, United States Code.
    [``Sec. 62. Reports to the Congress.--(a) Not less than 30 
days before entering into or renewing any agreement with a 
foreign country or international organization to lease any 
defense article under this chapter, or to loan any defense 
article under chapter 2 of part II of the Foreign Assistance 
Act of 1961, for a period of one year or longer, the President 
shall transmit to the Speaker of the House of Representatives, 
and to the chairman of the Committee on Foreign Relations of 
the Senate and the chairman of the Committee on Armed Services 
of the Senate, a written certification which specifies--
          [``(1) the country or international organization to 
        which the defense article is to be leased or loaned;
          [``(2) the type, quantity, and value (in terms of 
        replacement cost) of the defense article to be leased 
        or loaned;
          [``(3) the terms and duration of the lease or loan; 
        and
          [``(4) a justification for the lease or loan, 
        including an explanation of why the defense article is 
        being leased or loaned rather than sold under this Act.
    [``(b) The President may waive the requirements of this 
section (and in the case of an agreement described in section 
63, may waive the provisions of that section) if he determines, 
and immediately reports to the Congress, that an emergency 
exists which requires that the lease or loan be entered into 
immediately in the national security interests of the United 
States.
    [``Sec. 63. Legislative Review.--(a)(1) In the case of any 
agreement involving the lease under this chapter, or the loan 
under chapter 2 of part II of the Foreign Assistance Act of 
1961, to any foreign country or international organization for 
a period of one year or longer of any defense articles which 
are either (i) major defense equipment valued (in terms of its 
replacement cost less any depreciation in its value) at 
$14,000,000 or more, or (ii) defense articles valued (in terms 
of their replacement cost less any depreciation in their value) 
at $50,000,000 or more, the agreement may not be entered into 
or renewed if the Congress, within 30 calendar days after 
receiving the certification with respect to that proposed 
agreement pursuant to section 62(a), adopts a concurrent 
resolution stating that it objects to the proposed lease or 
loan.
    [``(2) This section shall not apply with respect to a loan 
or lease to the North Atlantic Treaty Organization, any member 
country of that Organization, Japan, Australia, or New Zealand.
    [``(b) Any resolution under subsection (a) shall be 
considered in the Senate in accordance with the provisions of 
section 601(b) of the International Security Assistance and 
Arms Export Control Act of 1976.
    [``(c) For the purpose of expediting the consideration and 
adoption of concurrent resolutions under subsection (a), a 
motion to proceed to the consideration of any such resolution 
after it has been reported by the appropriate committee shall 
be treated as highly privileged in the House of 
Representatives.
    [``Sec. 64. Application of Other Provisions of Law.--Any 
reference to sales of defense articles under this Act in any 
provision of law restricting the countries or organizations to 
which such sales may be made shall be deemed to include a 
reference to leases of defense articles under this chapter.''.
    [(b) Such Act is further amended--
          [(1) in section 2(b)--
                  [(A) by inserting ``, leases,'' immediately 
                after ``sales'' both places it appears,
                  [(B) by inserting ``whether there shall be a 
                lease to a country,'' immediately after 
                ``thereof,'' , and
                  [(C) by inserting ``, lease,'' immediately 
                after ``sale'' the second place it appears;
          [(2) in section 3(a)--
                  [(A) in the text preceding paragraph (1) by 
                inserting ``or leased'' immediately after 
                ``sold'', and
                  [(B) in paragraph (4) by inserting ``or 
                lease'' immediately after ``purchase''; and
          [(3) in section 4 by inserting ``or leased'' 
        immediately after ``sold'' in the first sentence.
    [(c) Paragraph (5) of section 503(b) of the Foreign 
Assistance Act of 1961 is amended to read as follows:
          [``(5) the loan agreement provides that (A) if the 
        defense article is damaged while on loan, the country 
        or international organization to which it was loaned 
        will reimburse the United States for the cost of 
        restoring or replacing the defense article, and (B) if 
        the defense article is lost or destroyed while on loan, 
        the country or international organization to which it 
        was loaned will pay to the United States an amount 
        equal to the replacement cost (less any depreciation in 
        the value) of the defense article.''.
    [(d)(1) Section 109 of the International Security and 
Development Cooperation Act of 1980 is repealed.
    [(2) Section 36(a) of the Arms Export Control Act is 
amended--
          [(A) by inserting ``and'' at the end of paragraph 
        (8);
          [(B) by striking out ``; and'' at the end of 
        paragraph (9) and inserting in lieu thereof a period; 
        and
          [(C) by striking out paragraph (10).

                          [military assistance

    [Sec. 110. (a) Section 504(a) of the Foreign Assistance Act 
of 1961 is amended to read as follows:
    [``(a)(1) There are authorized to be appropriated to the 
President to carry out the purposes of this chapter not to 
exceed $238,500,000 for the fiscal year 1982 and not to exceed 
$238,500,000 for the fiscal year 1983.
    [``(2) Amounts appropriated under this subsection are 
authorized to remain available until expended.''.
    [(b) Section 506(a) of such Act is amended by striking out 
``$50,000,000'' and inserting in lieu thereof ``$75,000,000''.
    [(c) Section 503(a)(3) of such Act is amended by striking 
out ``specified in section 504(a)(1) of this Act, within the 
dollar limitations of that section,'' and inserting in lieu 
thereof ``country,''.
    [(d) Section 516 of such Act is repealed.
         [STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES

    [Sec. 111. Section 514(b)(2) of the Foreign Assistance Act 
of 1961 is amended by striking out ``$85,000,000 for the fiscal 
year 1981'' and inserting in lieu thereof ``$130,000,000 for 
the fiscal year 1982 and $125,000,000 for the fiscal year 
1983''.

    [international military assistance and sales program management

    [Sec. 112. Section 515 of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``Sec. 515. Overseas Management of Assistance and Sales 
Programs.--(a) In order to carry out his responsibilities for 
the management of international security assistance programs 
conducted under this chapter, chapter 5 of this part, and the 
Arms Export Control Act, the President may assign members of 
the Armed Forces of the United States to a foreign country to 
perform one or more of the following functions:
          [``(1) equipment and services case management;
          [``(2) training management;
          [``(3) program monitoring;
          [``(4) evaluation and planning of the host 
        government's military capabilities and requirements;
          [``(5) administrative support;
          [``(6) promoting rationalization, standardization, 
        interoperability, and other defense cooperation 
        measures among members of the North Atlantic Treaty 
        Organization and with the Armed Forces of Japan, 
        Australia, and New Zealand; and
          [``(7) liaison functions exclusive of advisory and 
        training assistance.
    [``(b) Advisory and training assistance conducted by 
military personnel assigned under this section shall be kept to 
an absolute minimum. It is the sense of the Congress that 
advising and training assistance in countries to which military 
personnel are assigned under this section shall be provided 
primarily by other personnel who are not assigned under this 
section and who are detailed for limited periods to perform 
specific tasks.
    [``(c)(1) The number of members of the Armed Forces 
assigned to a foreign country under this section may not exceed 
six unless specifically authorized by the Congress. The 
President may waive this limitation if he determines and 
reports to the Committee on Foreign Relations of the Senate and 
the Committee on Foreign Affairs of the House of 
Representatives, 30 days prior to the introduction of the 
additional military personnel, that United States national 
interests require that more than six members of the Armed 
Forces be assigned under this section to carry out 
international security assistance programs in a country not 
specified in this paragraph. For the fiscal year 1982 and the 
fiscal year 1983, Indonesia, the Republic of Korea, the 
Philippines, Thailand, Egypt, Jordan, Morocco, Saudi Arabia, 
Greece, Portugal, Spain, and Turkey are authorized to have 
military personnel strengths larger than six under this section 
to carry out international security assistance programs.
    [``(2) The total number of members of the Armed Forces 
assigned under this section to a foreign country in a fiscal 
year may not exceed the number justified to the Congress for 
that country in the congressional presentation materials for 
that fiscal year, unless the Committee on Foreign Relations of 
the Senate and the Committee on Foreign Affairs of the House of 
Representatives are notified 30 days in advance of the 
introduction of the additional military personnel.
    [``(d) Effective October 1, 1982, the entire costs 
(including salaries of United States military personnel) of 
overseas management of international security assistance 
programs under this section shall be charged to or reimbursed 
from funds made available to carry out this chapter, other than 
any such costs which are either paid directly for such defense 
services under section 21(a) of the Arms Export Control Act or 
reimbursed from charges for services collected from foreign 
governments pursuant to section 21(e) and section 43(b) of that 
Act.
    [``(e) Members of the Armed Forces assigned to a foreign 
country under this section shall serve under the direction and 
supervision of the Chief of the United States Diplomatic 
Mission to that country.
    [``(f) The President shall continue to instruct United 
States diplomatic and military personnel in the United States 
missions abroad that they should not encourage, promote, or 
influence the purchase by any foreign country of United States-
made military equipment, unless they are specifically 
instructed to do so by an appropriate official of the executive 
branch.''.

             [international military education and training

    [Sec. 113. Section 542 of the Foreign Assistance Act of 
1961 is amended by striking out ``$34,000,000 for the fiscal 
year 1981'' and inserting in lieu thereof ``$42,000,000 for the 
fiscal year 1982 and $42,000,000 for the fiscal year 1983''.

                        [peacekeeping operations

    [Sec. 114. (a) Section 552(a) of the Foreign Assistance Act 
of 1961 is amended by striking out ``$25,000,000 for the fiscal 
year 1981'' and inserting in lieu thereof ``$19,000,000 for the 
fiscal year 1982 and $19,000,000 for the fiscal year 1983''.
    [(b) Section 552(c) of such Act is amended by striking out 
``(1)'' and all that follows through ``may not be transferred'' 
and inserting in lieu thereof ``the total amount so transferred 
in any fiscal year may not exceed $15,000,000''.

   [foreign intimidation and harassment of individuals in the united 
                                 states

    [Sec. 115. Chapter 1 of the Arms Export Control Act is 
amended by adding at the end thereof the following new section:
    [``Sec. 6. Foreign Intimidation and Harassment of 
Individuals in the United States.--No letters of offer may be 
issued, no credits or guarantees may be extended, and no export 
licenses may be issued under this Act with respect to any 
country determined by the President to be engaged in a 
consistent pattern of acts of intimidation or harassment 
directed against individuals in the United States. The 
President shall report any such determination promptly to the 
Speaker of the House of Representatives and to the chairman of 
the Committee on Foreign Relations of the Senate.''.

                    [TITLE II--ECONOMIC SUPPORT FUND

                    [authorization of appropriations

    [Sec. 201. Section 531(b)(1) of the Foreign Assistance Act 
of 1961 is amended by striking out ``for the fiscal year 1981, 
$2,065,300,000'' and inserting in lieu thereof ``$2,623,500,000 
for the fiscal year 1982 and $2,723,500,000 for the fiscal year 
1983''.
                  [provisions relating to use of funds

    [Sec. 202. Chapter 4 of part II of the Foreign Assistance 
Act of 1961 is amended by striking out sections 532 and 533 and 
inserting in lieu thereof the following new sections:
    [``Sec. 532. Middle East Programs.--(a)(1) Of the funds 
authorized to be appropriated to carry out this chapter for the 
fiscal year 1982 and for the fiscal year 1983, not less than 
$785,000,000 for each such year shall be available only for 
Israel and not less than $750,000,000 for each such year shall 
be available only for Egypt. Amounts made available for Israel 
and Egypt for the fiscal year 1982 pursuant to this paragraph 
shall be in addition to the amounts made available to those 
countries pursuant to paragraph (4) of this subsection.
    [``(2) All of the funds made available to Israel and to 
Egypt under this chapter for the fiscal years 1982 and 1983 
shall be provided on a grant basis.
    [``(3) The total amount of funds allocated for Israel under 
this chapter for the fiscal year 1982 and for the fiscal year 
1983 may be made available as a cash transfer. In exercising 
the authority of this paragraph, the President shall ensure 
that the level of cash transfers made to Israel does not cause 
an adverse impact on the total amount of nonmilitary exports 
from the United States to Israel.
    [``(4) In addition to the amounts requested for Israel and 
Egypt under this chapter for the fiscal year 1982, $21,000,000 
shall be made available for Israel for the fiscal year 1982 and 
$21,000,000 shall be made available for Egypt for the fiscal 
year 1982 in order to replace the funds which were authorized 
and appropriated for those countries in the fiscal year 1981 
but which were reprogrammed in order to provide assistance for 
Liberia and El Salvador.
    [``(5) Of the amounts provided to Egypt under this chapter 
for the fiscal year 1982 and for the fiscal year 1983, up to 
$50,000,000 for each such year may be used under title XII of 
chapter 2 of part I of this Act in building agricultural 
extension services in Egypt for the small farmer in order to 
upgrade the skills of the agricultural faculty in provincial 
universities, improve the agricultural curriculum offered and 
the equipment available in provincial universities, and 
establish a provincial university extension service with an 
outreach program which can directly reach the Egyptian small 
farmer.
    [``(b)(1) Of the funds authorized to be appropriated to 
carry out this chapter for the fiscal year 1982 and for the 
fiscal year 1983, $11,000,000 for each such year may be used 
for special requirements in the Middle East, including regional 
cooperative projects of a scientific and technological nature 
in accordance with paragraph (2) of this subsection, other 
regional programs, development programs on the West Bank and in 
Gaza, population programs, project development and support, and 
programs of participant training.
    [``(2) It is the sense of the Congress that, in order to 
continue to build the structure of peace in the Middle East, 
the United States should finance, and where appropriate 
participate in, cooperative projects of a scientific and 
technological nature involving Israel and Egypt and other 
Middle East countries wishing to participate. These cooperative 
projects should include projects in the fields of agriculture, 
health, energy, the environment, education, water resources, 
and the social sciences. Of the funds available under paragraph 
(1) of this subsection for the fiscal year 1982 and for the 
fiscal year 1983, $4,000,000 for each such year may be used in 
accordance with this paragraph for scientific and technological 
projects which will promote regional cooperation among Israel 
and Egypt and other Middle East countries.
    [``(3) The President may obligate funds under paragraph (1) 
of this subsection only if, in accordance with the established 
prenotification procedures under section 634A of this Act, he 
transmits a report to the Committee on Foreign Affairs and the 
Committee on Appropriations of the House of Representatives, 
and to the Committee on Foreign Relations and the Committee on 
Appropriations of the Senate, at least 15 days prior to such 
obligation. This report shall set forth--
        [``(A) the name of the proposed recipient of such 
        funds,
        [``(B) the amount of funds to be made available to such 
        recipient, and
        [``(C) the purpose for which such funds are to be made 
        available.
    [``(4) At the end of the fiscal year 1981, at the end of 
the fiscal year 1982, and at the end of the fiscal year 1983, 
the President shall report to the Congress on the use of funds 
under this chapter during that fiscal year for special 
requirements in the Middle East.
    [``(c) None of the funds appropriated to carry out this 
chapter for the fiscal year 1982 or the fiscal year 1983 may be 
made available to Syria.
    [``(d) It is the sense of the Congress that, of the funds 
authorized to be appropriated to carry out this chapter, 
$7,000,000 for the fiscal year 1982 and $7,000,000 or more for 
the fiscal year 1983 should be made available for Lebanon for 
relief and rehabilitation programs of international and private 
voluntary agencies and other not-for-profit United States 
organizations operating in Lebanon.
    [``Sec. 533. Eastern Mediterranean Programs.--(a) Not less 
than two-thirds of the funds made available to Turkey under 
this chapter for each of the fiscal years 1982 and 1983 shall 
be provided on a grant basis.
    [``(b) Of the funds authorized to be appropriated to carry 
out this chapter for the fiscal year 1982 and for the fiscal 
year 1983, $15,000,000 for each such year shall be available 
only for Cyprus. Of that amount, $5,000,000 for the fiscal year 
1982 and $10,000,000 for the fiscal year 1983 shall be for 
scholarship programs to bring Cypriots to the United States for 
education.
    [``Sec. 534. Prohibition on Use of Funds for Nuclear 
Facilities.--Funds available to carry out this chapter for the 
fiscal year 1982 and for the fiscal year 1983 may not be used 
to finance the construction of, the operation or maintenance 
of, or the supplying of fuel for, any nuclear facility in a 
foreign country unless the President certifies to the Congress 
that use of funds for such purpose is indispensable to the 
achievement of nonproliferation objectives which are uniquely 
significant and of paramount importance to the United States.
    [``Sec. 535. Emergency Assistance.--(a) Of the funds 
appropriated to carry out this chapter, up to $75,000,000 for 
the fiscal year 1982 and up to $75,000,000 for the fiscal year 
1983 may be made available for emergency use under this chapter 
when the national interests of the United States urgently 
require economic support to promote economic or political 
stability.
    [``(b) Notwithstanding any provision of this chapter or of 
an appropriations Act (including a joint resolution making 
continuing appropriations) which earmarks funds available to 
carry out this chapter for a specific country or purpose, up to 
5 percent of each amount so earmarked may be used to carry out 
this section.
    [``Sec. 536. Special Requirements Fund.--Of the amounts 
appropriated to carry out this chapter, up to $75,000,000 for 
the fiscal year 1982 may be made available as a special 
requirements fund, except that such funds may not be obligated 
unless the Committee on Foreign Relations of the Senate, the 
Committee on Foreign Affairs of the House of Representatives, 
and the Committee on Appropriations of each House of the 
Congress are notified fifteen days in advance of such 
obligation.
    [``Sec. 537. Tunisia.--Of of the funds authorized to be 
appropriated to carry out this chapter for the fiscal year 1982 
and 1983, not less than $5,000,000 for each such year shall be 
available for Tunisia.
    [``Sec. 538. Costa Rica.--Of the funds authorized to be 
appropriated to carry out this chapter for the fiscal years 
1982 and 1983, not less than $15,000,000 for each such year 
shall be available only for Costa Rica for the purposes of 
economic assistance.
    [``Sec. 539. Nicaragua.--Of the funds authorized to be 
appropriated to carry out this chapter, $20,000,000 for the 
fiscal year 1982 and $20,000,000 for the fiscal year 1983 shall 
be available only for Nicaragua.''.

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

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

                   [TITLE III--DEVELOPMENT ASSISTANCE

             [agriculture, rural development, and nutrition

    [Sec. 301. (a) The first sentence of section 103(a)(2) of 
the Foreign Assistance Act of 1961 is amended by striking out 
``$713,500,000 for the fiscal year 1981'' and inserting in lieu 
thereof ``$700,000,000 for the fiscal year 1982 and 
$700,000,000 for the fiscal year 1983, of which up to 
$1,000,000 for each such fiscal year shall be available only to 
carry out section 316 of the International Security and 
Development Cooperation Act of 1980''.
    [(b)(1) It is the sense of the Congress that the United 
States should strongly support the efforts of developing 
countries to improve infant feeding practices, in particular 
through the promotion of breast feeding. As a demonstration of 
that support, the President is authorized to use up to 
$5,000,000 of the funds made available for the fiscal year 1982 
to carry out the purposes of sections 103 and 104(c) of the 
Foreign Assistance Act of 1961 in order to assist developing 
countries establish or improve programs to encourage improved 
infant feeding practices. In carrying out this paragraph, the 
Agency for International Development should provide funds for 
necessary research to obtain better information on the precise 
nature and magnitude of problems relating to infant feeding 
practices, including the use of infant formula, in developing 
countries.
    [(2) The President shall, as part of the congressional 
presentation documentation for the fiscal years 1983 and 1984, 
include information relevant to the implementation of this 
subsection, including--
          [(A) a description of actions taken by the Agency for 
        International Development to promote breast feeding and 
        to improve supplemental infant feeding practices in 
        developing countries through funds made available in 
        this subsection and through its regular programs in the 
        fields of health, nutrition, and population activities;
          [(B) a summary of the results of studies authorized 
        by this subsection on the nature and magnitude of 
        problems in developing countries related to infant 
        feeding practices; and
          [(C) a summary of reports by member countries of the 
        World Health Organization on their actions to implement 
        the International Code of Marketing of Breast Milk 
        Substitutes.
    [(c) Section 103 of such Act is amended by adding at the 
end thereof the following new subsection:
    [``(g) In order to carry out the purposes of this section, 
the President may continue to participate in and may provide, 
on such terms and conditions as he may determine, up to 
$180,000,000 to the International Fund for Agriculture 
Development. There are authorized to be appropriated to the 
President for the purposes of this subsection $180,000,000, 
except that not more than $40,500,000 may be appropriated under 
this subsection for the fiscal year 1982. Amounts appropriated 
under this subsection are authorized to remain available until 
expended.''.

                         [population and health

    [Sec. 302. (a) Section 104(g) of the Foreign Assistance Act 
of 1961 is amended by striking out the first sentence and 
inserting in lieu thereof the following: ``There are authorized 
to be appropriated to the President, in addition to funds 
otherwise available for such purposes--
          [``(1) $211,000,000 for the fiscal year 1982 and 
        $211,000,000 for the fiscal year 1983 to carry out 
        subsection (b) of this section; and
          [``(2) $133,405,000 for the fiscal year 1982 and 
        $133,405,000 for the fiscal year 1983 to carry out 
        subsection (c) of this section.
[Of the funds appropriated for each of the fiscal years 1982 
and 1983 to carry out subsection (b) of this section, not less 
than 16 percent or $38,000,000, whichever amount is less, shall 
be available only for the United Nations Fund for Population 
Activities.''.
    [(b) Section 104(f) of such Act is amended by adding at the 
end thereof the following:
    [``(3) None of the funds made available to carry out this 
part may be used to pay for any biomedical research which 
relates, in whole or in part, to methods of, or the performance 
of abortions or involuntary sterilization as a means of family 
planning.''.

               [education and human resources development

    [Sec. 303. (a) The second sentence of section 105(a) of the 
Foreign Assistance Act of 1961 is amended by striking out 
``$101,000,000 for the fiscal year 1981'' and inserting in lieu 
thereof ``$103,600,000 for the fiscal year 1982 and 
$103,600,000 for the fiscal year 1983''.
    [(b) Such section is further amended by adding at the end 
thereof the following: ``For each of the fiscal years 1982 and 
1983, the President shall use not less than $4,000,000 of the 
funds made available for the purposes of this section to 
finance scholarships for undergraduate or professional 
education in the United States for South African students who 
are disadvantaged by virtue of legal restrictions on their 
ability to get an adequate undergraduate or professional 
education, except that up to $1,000,000 of the funds made 
available for each such fiscal year under chapter 4 of part II 
of this Act for southern African regional programs may be used 
to finance such scholarships in lieu of an equal amount under 
this section.''.
  [energy, private voluntary organizations, and selected development 
                               activities

    [Sec. 304. (a) Section 106(d)(3) of the Foreign Assistance 
Act of 1961 is amended by inserting immediately before the 
semicolon at the end thereof the following: ``and programs of 
disaster preparedness, including the prediction of and 
contingency planning for natural disasters abroad''.
    [(b) Section 106(e)(1) of such Act is amended by striking 
out ``$140,000,000 for the fiscal year 1981'' and inserting in 
lieu thereof ``$147,200,000 for the fiscal year 1982 and 
$147,200,000 for the fiscal year 1983''.

                    [united nations decade for women

    [Sec. 305. Section 113 of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
subsection:
    [``(c) Not less than $500,000 of the funds made available 
under this chapter for the fiscal year 1982 shall be expended 
on international programs which support the original goals of 
the United Nations Decade for Women.''.

                             [human rights

    [Sec. 306. The first sentence of section 116(e) of the 
Foreign Assistance Act of 1961 is amended by striking out ``the 
fiscal year 1981'' and inserting in lieu thereof ``each of the 
fiscal years 1982 and 1983''.

                   [environment and natural resources

    [Sec. 307. Section 118 of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``Sec. 118. Environment and Natural Resources.--(a) The 
Congress funds that if current trends in the degradation of 
natural resources in developing countries continue, they will 
severely undermine the best efforts to meet basic human needs, 
to achieve sustained economic growth, and to prevent 
international tension and conflict. The Congress also finds 
that the world faces enormous, urgent, and complex problems, 
with respect to natural resources, which require new forms of 
cooperation between the United States and developing countries 
to prevent such problems from becoming unmanageable. It is, 
therefore, in the economic and security interests of the United 
States to provide leadership both in thoroughly reassessing 
policies relating to natural resources and the environment, and 
in cooperating extensively with developing countries in order 
to achieve environmentally sound development.
    [``(b) In order to address the serious problems described 
in subsection (a), the President is authorized to furnish 
assistance under this part for developing and strengthening the 
capacity of developing countries to protect and manage their 
environment and natural resources. Special efforts shall be 
made to maintain and where possible to restore the land, 
vegetation, water, wildlife, and other resources upon which 
depend economic growth and human well-being, especially of the 
poor.
    [``(c)(1) The President, in implementing programs and 
projects under this chapter, shall take fully into account the 
impact of such programs and projects upon the environment and 
natural resources of developing countries. Subject to such 
procedures as the President considers appropriate, the 
President shall require all agencies and officials responsible 
for programs or projects under this chapter--
          [``(A) to prepare and take fully into account an 
        environmental impact statement for any program or 
        project under this chapter significantly affecting the 
        environment of the global commons outside the 
        jurisdiction of any country, the environment of the 
        United States, or other aspects of the environment 
        which the President may specify; and
          [``(B) to prepare and take fully into account an 
        environmental assessment of any proposed program or 
        project under this chapter significantly affecting the 
        environment of any foreign country.
[Such agencies and officials should, where appropriate, use 
local technical resources in preparing environmental impact 
statements and environmental assessments pursuant to this 
subsection.
    [``(2) The President may establish exceptions from the 
requirements of this subsection for emergency conditions and 
for cases in which compliance with those requirements would be 
seriously detrimental to the foreign policy interests of the 
United States.
    [``(d)(1) In enacting section 103(b)(3) of this Act the 
Congress recognized the importance of forests and tree cover to 
the developing countries. The Congress is particularly 
concerned about the continuing and accelerating alteration, 
destruction, and loss of tropical forests in developing 
countries. Tropical forests constitute a major world resource. 
Their destruction and loss pose a serious threat to development 
and the environment in developing countries. Tropical forest 
destruction and loss result in shortages of wood, especially 
wood for fuel; siltation of lakes, reservoirs and irrigation 
systems; floods; destruction of indigenous peoples; extinction 
of plant and animal species; reduced capacity for food 
production; and loss of genetic resources; and can result in 
desertification and in destabilization of the earth's climate. 
Properly managed tropical forests provide a sustained source of 
fiber and other commodities essential to the economic growth of 
developing countries.
    [``(2) The concerns expressed in paragraph (1) and the 
recommendations of the United States Interagency Task Force on 
Tropical Forests shall be considered by the President--
          [``(A) in formulating and carrying out programs and 
        policies with respect to developing countries, 
        including those relating to bilateral and multilateral 
        assistance and those relating to private sector 
        activities, and
          [``(B) in seeking opportunities to coordinate public 
        and private development and investment activities which 
        affect forests in developing countries.
    [``(3) It is the sense of the Congress that the President 
should instruct the representatives of the United States to the 
United Nations and to other appropriate international 
organizations to urge--
          [``(A) that higher priority be given in the programs 
        of these organizations to the problems of tropical 
        forest alteration and loss, and
          [``(B) that there be improved cooperation and 
        coordination among these organizations with respect to 
        tropical forest activities.''.
               [sahel development program--implementation

    [Sec. 308. (a) Section 121(c) of the Foreign Assistance Act 
of 1961 is amended in the third sentence by striking out 
``$88,442,000 for the fiscal year 1981'' and inserting in lieu 
thereof ``$86,558,000 for the fiscal year 1982 and $86,558,000 
for the fiscal year 1983''.
    [(b) Section 121 of such Act is amended by adding at the 
end thereof the following new subsection:
    [``(d) Funds available to carry out this section (including 
foreign currencies acquired with funds appropriated to carry 
out this section) may not be made available to any foreign 
government for disbursement unless the Administrator of the 
Agency for international Development determines that the 
foreign government will maintain a system of accounts with 
respect to those funds which will provide adequate 
identification of and control over the receipt and expenditure 
of those funds.''.

                  [private and voluntary organizations

    [Sec. 309. Section 123 of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
subsections:
    [``(f) For each of the fiscal years 1982, 1983, and 1984, 
funds in an amount not less than 12 percent of the aggregate 
amount appropriated for that fiscal year to carry out sections 
103(a), 104(b), 104(c), 105, 106, 121, and 491 of this Act 
shall be made available for the activities of private and 
voluntary organizations, and the President shall seek to 
channel funds in an amount not less than 16 percent of such 
aggregate amount for the activities of private and voluntary 
organizations.
    [``(g) After December 31, 1984, funds made available to 
carry out section 103(a), 104(b), 104(c), 105, 106, 121, or 491 
of this Act may not be made available for programs of any 
United States private and voluntary organization which does not 
obtain at least 20 percent of its total annual financial 
support for its international activities from sources other 
than the United States Government, except that this restriction 
does not apply with respect to programs which, as of that date, 
are receiving financial support from the agency primarily 
responsible for administering this part. The Administrator of 
the agency primarily responsible for administering this part 
may, on a case-by-case basis, waive the restriction established 
by this subsection, after taking into account the effectiveness 
of the overseas development activities of the organization, its 
level of volunteer support, its financial viability and 
stability, and the degree of its dependence for its financial 
support on the agency primarily responsible for administering 
this part.''.

                       [housing guaranty programs

    [Sec. 310. (a) Section 222(a) of the Foreign Assistance Act 
of 1961 is amended--
          [(1) in the second sentence by striking out 
        ``$1,555,000,000'' and inserting in lieu thereof 
        ``$1,718,000,000''; and
          [(2) in the third sentence by striking out 
        ``September 30, 1982'' and inserting in lieu thereof 
        ``September 30, 1984''.
    [(b) Section 223(b) of such Act is amended by adding at the 
end thereof the following: ``All of the foregoing fees referred 
to in this section together with earnings thereon and other 
income arising from guaranty operations under this title shall 
be held in a revolving fund account maintained in the Treasury 
of the United States. All funds in such account may be invested 
in obligations of the United States. Any interest or other 
receipts derived from such investments shall be credited to 
such account and may be used for the purposes cited in this 
section.''.

               [international organizations and programs

    [Sec. 311. (a) Section 301 of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
subsection:
    [``(h) The President is authorized to permit the United 
States to participate in and to use any of the funds made 
available under this part after the date of enactment of this 
subsection for the purpose of furnishing assistance (on such 
terms and conditions as the President may determine) to the 
International Food Policy Research Institute.''.
    [(b) Section 302(a)(1) of such Act is amended by striking 
out ``$233,350,000 for the fiscal year 1981'' and inserting in 
lieu thereof ``$218,600,000 for the fiscal year 1982 and 
$218,600,000 for the fiscal year 1983. Of the funds 
appropriated under this paragraph for each of the fiscal years 
1982 and 1983, (A) not less than 19.6 percent or $45,000,000, 
whichever amount is less, shall be available only for the 
United States Children's Fund, (B) not less than 59.5 percent 
or $134,500,000, whichever amount is less, shall be available 
only for the United Nations Development Fund, (C) not less than 
4.4 percent or $10,000,000, whichever amount is less, shall be 
available only for the United Nations Environment Fund, (D) not 
less than 0.159 percent or $400,000, whichever amount is less, 
shall be available only for the United Nations Trust Fund for 
Southern Africa, and (E) not less than 0.196 percent or 
$500,000, whichever amount is less, shall be available only for 
the United Nations Institute for Training and Research''.

                     [trade and development program

    [Sec. 312. (a) The section caption of section 661 of the 
Foreign Assistance Act of 1961 is amended by striking out 
``reimbursable development programs'' and inserting in lieu 
thereof ``trade and development program''.
    [(b) Such section 661 is further amended--
          [(1) by inserting ``(a)'' immediately before ``The 
        President'';
          [(2) in the first sentence by striking out ``to use 
        $4,000,000 of the funds made available for the fiscal 
        year 1981 for the purposes of this Act''; and
          [(3) by adding at the end thereof the following new 
        subsection:
    [``(b) There are authorized to be appropriated to the 
President for purposes of this section, in addition to funds 
otherwise available for such purposes, $6,907,000 for the 
fiscal year 1982 and $6,907,000 for the fiscal year 1983. 
Amounts appropriated under this subsection are authorized to 
remain available until expended.''.

                    [african development foundation

    [Sec. 313. Section 510 of the international Security and 
Development Cooperation Act of 1980 is amended--
          [(1) by striking out ``for the fiscal year 1981''; 
        and
          [(2) by striking out ``$2,000,000'' and inserting in 
        lieu thereof ``not less than $2,000,000 for the fiscal 
        year 1982 and up to $2,000,000 for the fiscal year 
        1983''.
                   [TITLE IV--FOOD FOR PEACE PROGRAMS

            [repeal of obsolete foreign currency provisions

    [Sec. 401. The Agricultural Trade Development and 
Assistance Act of 1954 is amended--
          [(1) in section 101, by striking out ``for foreign 
        currencies'' and inserting in lieu thereof ``, to the 
        extent that sales for dollars under the terms 
        applicable to such sales are not possible, for foreign 
        currencies on credit terms and on terms which permit 
        conversion to dollars at the exchange rate applicable 
        to the sales agreement'';
          [(2) by amending section 103(b) to read as follows:
          [``(b) except where the President determines that it 
        would be inconsistent with the objectives of this Act, 
        determine the amount of foreign currencies needed for 
        the uses specified in subsections (a), (b), (e), and 
        (h) of section 104 and in title III, and the agreements 
        for credit sales shall provide for payment of such 
        amounts in dollars or in foreign currencies upon 
        delivery of the agricultural commodities; and such 
        payment may be considered as an advance payment of the 
        earliest installments;'';
          [(3) in section 103(d), by striking out ``(1)'' and 
        by striking out ``, or (2) for the purpose only of 
        sales of agricultural commodities for foreign 
        currencies under title I of this Act, any country or 
        area dominated by a Communist government'';
          [(4) in section 103(l), by striking out ``obtain 
        commitments from friendly'' and all that follows 
        through ``United States of America, and'';
          [(5) in section 104--
                  [(A) in the text preceding subsection (a), by 
                striking out ``this title'' and inserting in 
                lieu thereof ``agreements for such sales 
                entered into prior to January 1, 1972,''; and
                  [(B) in paragraph (3) of the proviso 
                following subsection (k), by striking out 
                ``(except as provided in subsection (c) of this 
                section),'';
          [(6) in section 106(a)--
                  [(A) by inserting ``(1)'' after ``(a)''; and
                  [(B) by adding at the end thereof the 
                following:
          [``(2) Payment by any friendly country for 
        commodities purchased for foreign currencies on credit 
        terms and on terms which permit conversion to dollars 
        shall be upon terms no less favorable to the United 
        States than those for development loans made under 
        section 122 of the Foreign Assistance Act of 1961.'';
                  [(7) by repealing section 108; and
                  [(8) by repealing section 109(b).

            [emergency or extraordinary relief requirements

    [Sec. 402. Section 104(d) of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by striking 
out ``$5,000,000'' and inserting in lieu thereof 
``$10,000,000''.

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

    [Sec. 403. (a) Section 109(a) of the Agricultural Trade 
Development and Assistance Act of 1954 is amended--
          [(1) by inserting in paragraph (3) immediately before 
        the semicolon ``, and reducing illiteracy among the 
        rural poor'';
          [(2) by striking out the period at the end of 
        paragraph (10) and inserting in lieu thereof ``; and''; 
        and
          [(3) by inserting the following new paragraph 
        immediately after paragraph (10);
          [``(11) carrying out programs to improve the health 
        of the rural poor.''.
    [(b) Section 109 of the Agricultural Trade Development and 
Assistance Act of 1954 is amended by adding at the end thereof 
a new subsection as follows:
    [``(d)(1) In each agreement entered into under this title 
and in each amendment to such an agreement, the economic 
development and self-help measures which the recipient country 
agrees to undertake shall be described (A) to the maximum 
extent feasible, in specific and measurable terms, and (B) in a 
manner which ensures that the needy people in the recipient 
country will be the major beneficiaries of the self-help 
measures pursuant to each agreement.
    [``(2) The President shall, to the maximum extent feasible, 
take appropriate steps to assure that, in each agreement 
entered into under this title and in each amendment to such an 
agreement, the self-help measures agreed to are additional to 
the measures that the recipient country otherwise would have 
undertaken irrespective of that agreement or amendment.
    [``(3) The President shall take all appropriate steps to 
determine whether the economic development and self-help 
provisions of each agreement entered into under this title, and 
of each amendment to such an agreement, are being fully carried 
out.''.
    [(c) The amendments made by this section shall not be 
effective if the Agriculture and Food Act of 1981 is enacted 
(either before or after the enactment of this Act) and contains 
the same amendments.

                           [title ii minimum

    [Sec. 404. Section 201(b)(3) of the Agricultural Trade 
Development and Assistance Act of 1954 is amended by striking 
out ``1,400,000 metric tons'' and inserting in lieu thereof, 
``1,200,000 metric tons for nonemergency programs''.

                  [TITLE V--OTHER ASSISTANCE PROGRAMS

                 [american schools and hospitals abroad

    [Sec. 501. Section 214(c) of the Foreign Assistance Act of 
1961 is amended by striking out ``$30,000,000 for the fiscal 
year 1981'' and inserting in lieu thereof ``$20,000,000 for the 
fiscal year 1982 and $20,000,000 for the fiscal year 1983''.

                    [international narcotics control

    [Sec. 502. (a)(1) Section 481(d) of the Foreign Assistance 
Act of 1961 is amended to read as follows:
    [``(d)(1) The Secretary of State shall inform the Secretary 
of Health and Human Services of the use or intended use by any 
country or international organization of any herbicide to 
eradicate marihuana in a program receiving assistance under 
this chapter.
    [``(2) The Secretary of Health and Human Services shall 
monitor the impact on the health of persons who may use or 
consume marihuana of the spraying of a herbicide to eradicate 
such marihuana in a program receiving assistance under this 
chapter, and if the Secretary determines that such persons are 
exposed to amounts of such herbicide which are harmful to their 
health, the Secretary shall prepare and transmit a report to 
the Congress setting forth such determination together with any 
recommendations the Secretary may have.
    [``(3) Of the fund authorized to be appropriated for the 
fiscal year 1982 under section 482, the President is urged to 
use not less than $100,000 to develop a substance that clearly 
and readily warns persons who may use or consume marihuana that 
it has been sprayed with the herbicide paraquat or other 
herbicide harmful to the health of such persons.
    [``(4) If the Secretary of Agriculture determines that a 
substance has been developed that clearly and readily warns 
persons who may use or consume marihuana that it has been 
sprayed with the herbicide paraquat or other herbicide harmful 
to the health of such persons, such substance shall be used in 
conjunction with the spraying of paraquat or such other 
herbicide in any program receiving assistance under this 
chapter.''.
    [(2) Assistance provided from funds appropriated, before 
the enactment of this Act, to carry out section 481 of the 
Foreign Assistance Act of 1961 may be made available for 
purposes prohibited by subsection (d) of such section as in 
effect immediately before the enactment of this subsection.
    [(3) Fund appropriated for the fiscal year 1980 to carry 
out section 481 of the Foreign Assistance Act of 1961 which 
were obligated for assistance for the Republic of Colombia may 
be used for purposes other than those set forth in section 
482(a)(2) of that Act as in effect immediately before the 
enactment of the International Security and Development 
Cooperation Act of 1980.
    [(4) Paragraphs (2) and (3) of this subsection shall apply 
only to the extent provided in advance in an appropriations 
Act. For such purpose, the funds described in those paragraphs 
are authorized to be made available for the purposes specified 
in those paragraphs.
    [(b) Section 481 of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new 
subsection:
    [``(e) Not later than February 1 of each year, the 
President shall transmit to the Speaker of the House of 
Representatives, and to the Committee on Foreign Relations of 
the Senate, a report on the status of the United States policy 
to establish and encourage an international strategy to prevent 
the illicit production of and to interdict and intercept 
trafficking in narcotics.''.
    [(c) Section 482(a) of such Act is amended to read as 
follows:
    [``(a)(1) To carry out the purposes of section 481, there 
are authorized to be appropriated to the President $37,700,000 
for the fiscal year 1982 and $37,700,000 for the fiscal year 
1983.
    [``(2) Amounts appropriated under this subsection are 
authorized to remain available until expended.''.

                   [international disaster assistance

    [Sec. 503. Section 492(a) of the Foreign Assistance Act of 
1961 is amended by striking out ``$25,000,000 for the fiscal 
year 1981'' and inserting in lieu thereof ``$27,000,000 for the 
fiscal year 1982 and $27,000,000 for the fiscal year 1983''.
          [assistance for displaced persons in central america

    [Sec. 504. Chapter 9 of part I of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following new section:
    [``Sec. 495I. Assistance for Displaced Persons in Central 
America.--(a)(1) The Congress recognizes that prompt United 
States assistance is necessary to help meet the basic human 
needs of persons displaced by strife in El Salvador. Therefore, 
the President is authorized to furnish assistance, on such 
terms and conditions as he may determine, to help alleviate the 
suffering of these displaced persons. Assistance provided under 
this section shall be for humanitarian purposes, with emphasis 
on the provision of food, medicine, medical care, and shelter 
and, where possible, implementation of other relief and 
rehabilitation activities. The Congress encourages the use, 
where appropriate, of the services of private and voluntary 
organizations and international relief agencies in the 
provision of assistance under this section.
    [``(2) The Congress understands that the country of Belize 
has expressed interest and willingness in the resettlement in 
its territory of Haitian nationals who desire to settle in 
Belize. Therefore, the President is authorized to furnish 
assistance, on such terms and conditions as he may determine, 
to assist the Government of Belize in the resettlement of 
Haitian nationals in the national territory of Belize.
    [``(b) There are authorized to be appropriated to the 
President for the purposes of this section, in addition to 
amounts otherwise available for such purposes, $5,000,000 for 
the fiscal year 1982 and $5,000,000 for the fiscal year 1983. 
Amounts appropriated under this section are authorized to 
remain available until expended.
    [``(c) Assistance under this section shall be provided in 
accordance with the policies and utilizing the general 
authorities provided in section 491.''.

                         [TITLE VI--PEACE CORPS

                [establishment as an independent agency

    [Sec. 601. (a) The Peace Corps Act (22 U.S.C. et seq.) is 
amended by inserting the following new section 2A immediately 
after section 2:

                [``peace corps as an independent agency

    [``Sec. 2A. Effective on the date of the enactment of the 
International Security and Development Cooperation Act of 1981, 
the Peace Corps shall be an independent agency within the 
executive branch and shall not be an agency within the ACTION 
Agency or any other department or agency of the United 
States.''.
    [(b) There are transferred to the Director of the Peace 
Corps all functions relating to the Peace Corps which were 
vested in the Director of the ACTION Agency on the day before 
the date of the enactment of this Act.
    [(c)(1) All personnel, assets, liabilities, contracts, 
property, records, and unexpended balances of appropriations, 
authorizations, allocations, and other funds as are determined 
by the Director of the Office of Management and Budget, after 
consultation with the comptroller General of the United States, 
the Director of the Peace Corps, and the Director of the ACTION 
Agency, to be employed, held, used, or assumed primarily in 
connection with any function relating to the Peace Corps before 
the date of the enactment of this Act are transferred to the 
Peace Corps. The transfer of unexpended balances pursuant to 
the preceding sentence shall be subject to section 202 of the 
Budget and Accounting Procedures Act of 1950 (31 U.S.C. 581c).
    [(2)(A) The transfer pursuant to this subsection of full-
time personnel (except special Government employees) and part-
time personnel holding permanent positions shall not cause any 
employee to be separated or reduced in rank, class, grade, or 
compensation, or otherwise suffer a loss of employment benefits 
for one year after--
          [(i) the date on which the Director of the Office of 
        Management and Budget submits the report required by 
        subsection (f)(1) of this section, or
          [(ii) the effective date of the transfer of such 
        employee, whichever occurs later.
    [(B) The personnel transferred pursuant to this subsection 
shall, to the maximum extent feasible, be assigned to such 
related functions and organizational units in the Peace Corps 
as such personnel were assigned to immediately before the date 
of the enactment of this Act.
    [(C) Collective-bargaining agreements in effect on the date 
of the enactment of this Act covering personnel transferred 
pursuant to this subsection or employed on such date of 
enactment by the Peace Corps shall continue to be recognized by 
the Peace Corps until the termination date of such agreements 
or until such agreements are modified in accordance with 
applicable procedures.
    [(3) Under such regulations as the President may prescribe, 
each person who, immediately before the date of the enactment 
of this Act, does not hold an appointment under section 7(a)(2) 
of the Peace Corps Act and who is determined under paragraph 
(1) of this subsection to be employed primarily in connection 
with any function relating to the Peace Corps shall, effective 
on the date of the enactment of this Act, and notwithstanding 
subparagraph (B) of section 7(a)(2) of the Peace Corps Act, be 
appointed a member of the Foreign Service under section 7(a)(2) 
of the Peace Corps Act, and be appointed or assigned to an 
appropriate class of the Foreign Service, except that----
          [(A) any person who, immediately before such date of 
        enactment, holds a career or career-conditional 
        appointment shall not, without the consent of such 
        person, be so appointed until three years after such 
        date of enactment, during which period any such person 
        not consenting to be so appointed may continue to hold 
        such career or career-conditional appointment; and
          [(B) each person so appointed who, immediately before 
        such date of enactment, held a career or career-
        conditional appointment at grade GS-8 or lower of the 
        General Schedule established by section 5332 of title 
        5, United States Code, shall be appointed a member of 
        the Foreign Service for the duration of operations 
        under the Peace Corps Act.
[Each person appointed under this paragraph shall receive basic 
compensation at the rate of such person's class determined by 
the President to be appropriate, except that the rate of basic 
compensation received by such person immediately before the 
effective date of such person's appointment under this 
paragraph shall not be reduced as a result of the provisions of 
this paragraph.
    [(d)(1) Section 4(b) of the Peace Corps Act (22 U.S.C. 
2503(b)) is amended by striking out ``such agency or officer of 
the United States Government as he shall direct. The head of 
any such agency or any such officer'' and inserting in lieu 
thereof ``the Director of the Peace Corps. The Director of the 
Peace Corps''.
    [(2) The Director of the Peace Corps shall continue to 
exercise all the functions under the Peace Corps Act or any 
other law or authority which the Director was performing on 
December 14, 1981.
    [(e)(1) Section 3 of the Peace Corps Act (22 U.S.C. 2502) 
is amended by repealing subsections (d), (e), and (f) and by 
redesignating subsection (g) as subsection (d).
    [(2) The amendment made by paragraph (1) of this subsection 
shall not alter or affect (A) the validity of any action taken 
before the date of the enactment of this Act under those 
provisions of law repealed by that amendment, or (B) the 
liability of any person for any payment described in section 
3(f) of the Peace Corps Act as in effect immediately before the 
date of the enactment of this Act.
    [(f)(1) Not later than the thirtieth day after the date of 
the enactment of this Act, or February 15, 1982, whichever 
occurs later, the Director of the Office of Management and 
Budget, after consultation with the Director of the Peace Corps 
and the Director of the ACTION Agency, shall submit to the 
appropriate committees of the Congress and to the Comptroller 
General a report on the steps taken to implement the provisions 
of this title, including descriptions of the dispositions of 
administrative matters, including matters relating to 
personnel, assets, liabilities, contracts, property, records, 
and unexpended balances or appropriations, authorizations, 
allocations, and other funds employed, used, held, available, 
or to be made available in connection with functions or 
activities relating to the Peace Corps.
    [(2) Not later than the forty-fifth day after the date of 
the enactment of this Act, or March 1, 1982, whichever occurs 
later, the Comptroller General shall submit to the appropriate 
committees of the Congress a report stating whether, in the 
judgment of the Comptroller General, determinations made by the 
Director of the Office of Management and Budget under 
subsection (c)(1) of this section were equitable.
    [(g) References in any statute, reorganization plan, 
Executive order, regulation, or other official document or 
proceeding to the ACTION Agency or the Director of the ACTION 
Agency with respect to functions or activities relating to the 
Peace Corps shall be deemed to refer to the Peace Corps or the 
Director of the Peace Corps, respectively.

                    [authorization of appropriations

    [Sec. 602. (a) Section 3(b) of the Peace Corps Act (22 
U.S.C. 2502(b)) is amended by striking out ``fiscal year 1981 
not to exceed $118,000,000'' and inserting in lieu thereof 
``the fiscal year 1982 not to exceed $105,000,000 and for the 
fiscal year 1983 not to exceed $105,000,000''.
    [(b) Section 3(c) of such Act is amended by striking out 
``fiscal year 1981'' and inserting in lieu thereof ``each 
fiscal year''.

                    [integration of disabled people

    [Sec. 603. Section 3 of the Peace Corps Act (22 U.S.C. 
2502) is amended by adding at the end thereof the following new 
subsection:
    [``(h) In recognition of the fact that there are over 
400,000,000 disabled people in the world, 95 percent of whom 
are among the poorest of the poor, the Peace Corps shall be 
administered so as to give particular attention to programs, 
projects, and activities which tend to integrate disabled 
people into the national economies of developing countries, 
thus improving their status and assisting the total development 
effort.''.

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

    [Sec. 604. (a) Section 10 of the Peace Corps Act (22 U.S.C. 
2509) is amended by adding at the end thereof the following new 
subsections:
    [``(i) The Director of the Peace Corps shall have the same 
authority as is available to the Secretary of State under 
section 26(a) of the State Department Basic Authorities Act of 
1956. For purposes of this subsection, the reference in such 
section 26(a) to a principal officer of the Foreign Service 
shall be deemed to be a reference to a Peace Corps 
representative and the reference in such section to a member of 
the Foreign Service shall be deemed to be reference to a person 
employed, appointed, or assigned under this Act.
    [``(j) The provisions of section 30 of the State Department 
Basic Authorities Act of 1956 shall apply to volunteers and 
persons employed, appointed, or assigned under this Act. For 
purposes of this subsection, references to the Secretary in 
subsection (b) of such section shall be deemed to be references 
to the Director of the Peace Corps, references to the Secretary 
in subsection (f) of such section shall be deemed to be 
references to the President, and the reference in subsection 
(g) of such section to a principal representative of the United 
States shall be deemed to be a reference to a Peace Corps 
representative.''.
    [(b) Section 5(h) of such Act is amended by striking out 
the last two sentences.
    [(c) To the extent that the authorities provided by the 
amendments made by subsection (a) are authorities which are not 
applicable with respect to the Peace Corps immediately before 
the enactment of this Act and which require the expenditure of 
funds, those authorities may not be exercised using any funds 
appropriated after February 15, 1981, and before the date of 
the enactment of this Act.

                 [miscellaneous--conforming amendments

    [Sec. 605. (a) Section 9 of the Peace Corps Act (22 U.S.C. 
2508) is amended by striking out ``section 10(a)(4)'' in the 
second sentence and inserting in lieu thereof ``section 
10(a)(5)''.
    [(b) Section 18 of such Act (22 U.S.C. 2517) is repealed.

                        [readjustment allowance

    [Sec. 606. The first sentence of section 5(c) of the Peace 
Corps Act (22 U.S.C. 2504(c)) is amended by striking out ``not 
to exceed $125'' and inserting in lieu thereof ``not less than 
$125''.

                  [TITLE VII--MISCELLANEOUS PROVISIONS

                    [advance acquisition of property

    [Sec. 701. Section 608(a) of the Foreign Assistance Act of 
1961 is amended--
          [(1) in the first sentence--
                  [(A) by inserting ``, or (if a substantial 
                savings would occur) other property already 
                owned by an agency of the United States 
                Government,'' immediately after ``excess 
                personal property'', and
                  [(B) by inserting ``or supplementary to'' 
                immediately after ``in lieu of''; and
          [(2) in the second sentence by inserting ``any 
        property available from an agency of the United States 
        Government,'' immediately before ``or other property''.

            [construction of productive enterprises in egypt

    [Sec. 702. The first sentence of section 620(k) of the 
Foreign Assistance Act of 1961 is amended by striking out ``for 
fiscal year 1977, fiscal year 1980, or fiscal year 1981''.

            [compensation for participating agency employees

    [Sec. 703. The first sentence of section 625(d) of the 
Foreign Assistance Act of 1961 is amended by striking out 
``together with allowances and benefits under that Act'' and 
inserting in lieu thereof ``or under chapter 53 of title 5, 
United States Code, or at any other rate authorized by law, 
together with allowances and benefits under the Foreign Service 
Act of 1980''.

                    [notification of program changes

    [Sec. 704. Section 634A of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following: 
``Whenever a proposed reprogramming exceeds $1,000,000 and the 
total amount proposed for obligation for a country under this 
Act in a fiscal year exceeds by more than $5,000,000 the amount 
specified for that country in the report required by section 
653(a) of this Act, notifications of such proposed 
reprogrammings shall specify--
          [``(1) the nature and purpose of such proposed 
        obligation, and
          [``(2) to the extent possible at the time of the 
        proposed obligation, the country for which such funds 
        would otherwise have been obligated.''.

                           [inspector general

    [Sec. 705. (a) The Inspector General Act of 1978 is 
amended--
          [(1) in paragraph (1) of section 2, by inserting 
        ``the Agency for International Development,'' 
        immediately after ``Department of Transportation,'';
          [(2) in section 11--
                  [(A) in paragraph (1), by inserting ``the 
                Agency for International Development,'' 
                immediately after ``Administrator of''; and
                  [(B) in paragraph (2), by inserting ``the 
                Agency for International Development,'' 
                immediately after ``Transportation or''; and
        [(3) by inserting immediately after section 8 the 
        following new section 8A:

    [``special provisions relating to the agency for international 
                              development

    [``Sec. 8A. (a) In addition to the other duties and 
responsibilities specified in this Act, the Inspector General 
of the Agency for International Development--
          [``(1) shall supervise, direct, and control all 
        security activities relating to the programs and 
        operations of that Agency, subject to the supervision 
        of the Administrator of that Agency; and
          [``(2) to the extent requested by the Director of the 
        United States International Development Cooperation 
        Agency (after consultation with the Administrator of 
        the Agency for International Development), shall 
        supervise, direct, and control all audit, 
        investigative, and security activities relating to 
        programs and operations within the United States 
        International Development Cooperation Agency.
    [``(b) In addition to the Assistant Inspector Generals 
provided for in section 3(d) of this Act, the Inspector General 
of the Agency for International Development shall, in 
accordance with applicable laws and regulations governing the 
civil service, appoint an Assistant Inspector General for 
Security who shall have the responsibility for supervising the 
performance of security activities relating to programs and 
operations of the Agency for International Development.
    [``(c) The semiannual reports required to be submitted to 
the Administrator of the Agency for International Development 
pursuant to section 5(b) of this Act shall also be submitted to 
the Director of the United States International Development 
Cooperation Agency.
    [``(d) In addition to the officers and employees provided 
for in section 6(a)(6) of this Act, members of the Foreign 
Service may, at the request of the Inspector General of the 
Agency for International Development, be assigned as employees 
of the Inspector General. Members of the Foreign Service so 
assigned shall be responsible solely to the Inspector General, 
and the Inspector General (or his or her designee) shall 
prepare the performance evaluation reports for such members.
    [``(e) In establishing and staffing field offices pursuant 
to section 6(c) of this Act, the Administrator of the Agency 
for International Development shall not be bound by overseas 
personnel ceilings established under the Monitoring Overseas 
Direct Employment policy.
    [``(f) The reference in section 7(a) of this Act to an 
employee of the establishment shall, with respect to the 
Inspector General of the Agency for International Development, 
be construed to include an employee of or under the United 
States International Development Cooperation Agency.
    [``(g) The Inspector General of the Agency for 
International Development shall be in addition to the officers 
provided for in section 624(a) of the Foreign Assistance Act of 
1961.
    [``(h) As used in this Act, the term `Agency for 
International Development' includes any successor agency 
primarily responsible for administering part I of the Foreign 
Assistance Act of 1961.''.
    [(b)(1) Section 624(g) of the Foreign Assistance Act of 
1961 is repealed.
    [(2) Section 239(e) of such Act is amended by striking out 
``Auditor General'' each of the three places it appears and 
inserting in lieu thereof ``Inspector General''.
    [(3) Section 5316 of title 5, United States Code, is 
amended by striking out ``Auditor General of the Agency for 
International Development'' and inserting in lieu thereof 
``Inspector General, Agency for International Development''.
    [(c) The individual holding the position of Inspector 
General of the Agency for International Development on the date 
of enactment of this section shall not be required to be 
reappointed by reason of the enactment of this section.

                          [operating expenses

    [Sec. 706. Section 667(a) of the Foreign Assistance Act of 
1961 is amended--
          [(1) by striking out ``, for the fiscal year 1981''; 
        and
          [(2) in paragraph (1) by striking out 
        ``$293,800,000'' and inserting in lieu thereof 
        ``$335,600,000 for the fiscal year 1982 and 
        $335,600,000 for the fiscal year 1983''.

                          [technical amendment

    [Sec. 707. The last sentence of section 620(f) of the 
Foreign Assistance Act of 1961 is amended to read as follows: 
``For the purposes of this subsection, the phrase `Communist 
country' includes specifically, but is not limited to, the 
following countries:
          [``Czechoslovak Socialist Republic,
          [``Democratic People's Republic of Korea,
          [``Estonia,
          [``German Democratic Republic,
          [``Hungarian People's Republic,
          [``Latvia,
          [``Lithuania,
          [``Mongolian People's Republic,
          [``Peoples Republic of Albania,
          [``People's Republic of Bulgaria,
          [``People's Republic of China,
          [``Polish People's Republic,
          [``Republic of Cuba,
          [``Socialist Federal Republic of Yugoslavia,
          [``Socialist Republic of Romania,
          [``Socialist Republic of Vietnam,
          [``Tibet,
          [``Union of Soviet Socialist Republics (including its 
        captive constituent republics).''.

         [emergency humanitarian help for the people of poland

    [Sec. 708. (a) The people of Poland, with whom the people 
of the United States have a longstanding friendship, now face 
serious domestic food shortages which will be worsened by 
large-scale loss of their livestock this winter if feed 
supplies do not arrive quickly. Therefore, the President is 
urged, for urgent humanitarian reasons, to use existing 
authorities promptly in order to provide to the people of 
Poland, under as favorable terms as possible, feed grains from 
Commodity Credit Corporation stocks or other appropriate 
commodities.
    [(b) For the longer term, the President is encouraged to 
pursue discussions with other Western countries about a 
multilateral effort to help the people of Poland achieve self-
sustaining economic recovery in the years ahead.
    [(c) Chapter 4 of part II of the Foreign Assistance Act of 
1961, as amended by section 202 of this Act, is further amended 
by adding at the end thereof the following new section:
    [``Sec. 540. Poland.--Notwithstanding any other provision 
of law, $5,000,000 of the amount authorized to be appropriated 
to carry out this chapter for the fiscal year 1982 shall be 
available only for Poland for the purchase, transportation, and 
distribution of food and medical supplies through private and 
voluntary agencies where appropriate.''.

                   [use of certain polish currencies

    [Sec. 709. (a) Notwithstanding section 1415 of the 
Supplemental Appropriation Act, 1953, section 508 of the 
General Government Matters, Department of Commerce, and Related 
Agencies Appropriation Act, 1962, or any other provision of 
law, the currencies or credits received by the United States 
from the April 1981 sale and from the October 1981 sale of 
United States Government-held surplus dairy products to Poland 
shall, to such extent as may be provided in advance in an 
appropriation Act, be used by the President in Poland to serve 
United States interests, including use for activities of common 
benefit to the people of the United States and the people of 
Poland, such as joint programs in energy, agriculture, 
education, science, health, and culture, or for humanitarian 
activities.
    [(b) Notwithstanding any other provision of law, the 
availability or expenditure of such foreign currencies or 
credits shall not affect or reduce appropriations otherwise 
available for the purposes described in subsection (a).

                  [findings regarding global security

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

                     [world food security reserves

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

       [Findings and Declaration of Policy Regarding World Hunger

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

         [reaffirmation of support for human rights provisions

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

                      [immigrant visas for taiwan

    [Sec. 714. The approval referred to in the first sentence 
of section 202(b) of the Immigration and Nationality Act shall 
be considered to have been granted with respect to Taiwan 
(China).

                                [lebanon

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

                   [use of chemical and toxin weapons

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

    [financial obligations of the soviet union to the united nations

    [Sec. 717. (a) The Congress finds and declares that--
          [(1) the financing of the United Nations is the 
        collective responsibility of all member nations;
          [(2) the International Court of Justice has 
        determined that the expenses of the United Nations 
        incurred in its peacekeeping operations are properly 
        included as a part of the regular expenses of the 
        United Nations;
          [(3) peacekeeping operations are vital to the mission 
        of the United Nations and must be adequately financed 
        if such operations are to continue; and
          [(4) the Government of the Union of Soviet Socialist 
        Republics is currently $180,000,000 in arrears on its 
        payments to the United Nations, primarily as a result 
        of its refusal to pay for the peacekeeping operations 
        of the United Nations.
    [(b) It is the sense of the Congress that the President, 
acting through the Permanent Representative of the United 
States to the United Nations, should undertake a diplomatic 
initiative to obtain payment by the Government of the Union of 
Soviet Socialist Republics of all its outstanding financial 
obligations to the United Nations, including its assessments 
with repect to the peacekeeping operations of the United 
Nations.

   [condemnation of libya for its support of international terrorist 
                               movements

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

    [united states citizens acting in the service of international 
                               terrorism

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

                         [nonaligned countries

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

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

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

             [comprehensive analysis of foreign assistance

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

          [external debt burdens of egypt, israel, and turkey

    [Sec. 732. The Congress finds that the Governments of 
Egypt, Israel, and Turkey each have an enormous external debt 
burden which may be made more difficult by virtue of financing 
provided for those governments under various United States 
assistance programs. In order to assist the Congress in 
examining United States assistance for these countries, the 
President shall report to the Speaker of the House of 
Representatives and to the chairman of the Committee on Foreign 
Relations of the Senate, not later than one hundred and twenty 
days after the date of enactment of this Act and not later than 
one year after the date of enactment of this Act, regarding 
economic conditions prevailing in Egypt, Israel, and Turkey 
which may affect their respective ability to meet their 
international debt obligations and to stabilize their 
economies. These reports shall also analyze the impact on 
Egypt's economy of Arab sanctions against Egypt.

                               [nicaragua

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

                  [assistance and sales for argentina

    [Sec. 725. (a) Section 620B of the Foreign Assistance Act 
of 1961 is repealed.
    [(b) Notwithstanding any other provision of law, assistance 
may be provided to Argentina under chapter 2, 4, 5, or 6 of 
part II of the Foreign Assistance Act of 1961, credits 
(including participations in credits) may be extended and loans 
may be guaranteed with respect to Argentina under the Arms 
Export Control Act, defense articles and defense services may 
be sold to Argentina under the Arms Export Control Act, and 
export licenses may be issued to or for the Government of 
Argentina under section 38 of the Arms Export Control Act, only 
if the President has submitted to the Speaker of the House of 
Representatives and the chairman of the Committee on Foreign 
Relations of the Senate a detailed report certifying that--
          [(1) the Government of Argentina has made significant 
        progress in complying with internationally recognized 
        principles of human rights; and
          [(2) the provision of such assistance, credits, loan 
        guarantees, defense articles, defense services, or 
        export licenses is in the national interests of the 
        United States.
    [(c) The Congress welcomes the actions of the Government of 
Argentina to adjudicate numerous cases of those detained under 
the national executive power of the Argentine Government, and 
the Congress hopes that progress will continue, especially with 
regard to providing information on citizens listed as 
``disappeared'' and prisoners remaining at the disposition of 
the national executive power. In the process of making the 
determination required in paragraph (1) of subsection (b), 
among other things, the President shall consider--
          [(1) efforts by the Government of Argentina to 
        provide information on citizens identified as 
        ``disappeared''; and
          [(2) efforts by the Government of Argentina to 
        release or bring to justice those prisoners held at the 
        disposition of the national executive power (PEN).

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

    [Sec. 726. (a) Section 406 of the International Security 
Assistance and Arms Export Control Act of 1976 (22 U.S.C. 2370 
note) is repealed.
    [(b) Notwithstanding any other provisions of law--
          [(1) no assistance may be furnished under chapter 2, 
        4, 5, or 6 of part II of the Foreign Assistance Act of 
        1961 to Chile;
          [(2) no sale of defense articles or services may be 
        made under the Arms Export Control Act to Chile;
          [(3) no credits (including participation in credits) 
        may be extended and no loan may be guaranteed under the 
        Arms Export Control Act with respect to Chile; and
          [(4) no export licenses may be issued under section 
        38 of the Arms Export Control Act to or for the 
        Government of Chile;
[unless and until the President submits to the Speaker of the 
House of Representatives and the chairman of the Committee on 
Foreign Relations of the Senate a detailed report certifying--
          [(A) that the Government of Chile has made 
        significant progress in complying with internationally 
        recognized principles of human rights;
          [(B) that the provisions of such assistance, articles 
        or services is in the national interest of the United 
        States; and
          [(C) that the Government of Chile is not aiding or 
        abetting international terrorism and has taken 
        appropriate steps to cooperate to bring to justice by 
        all legal means available in the United States or Chile 
        those indicted by a United States grand jury in 
        connection with the murders of Orlando Letelier and 
        Ronni Moffitt.

                      [assistance for el salvador

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

     [restrictions on military assistance and sales to el salvador

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

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

                  [RESTRICTIONS ON AID TO EL SALVADOR

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

                        [EL SALVADORAN REFUGEES

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

             [Consolidated Reports: Arms Export Control Act

    [Sec. 732. Section 25 of the Arms Export Control Act is 
amended to read as follows:
    [``Sec. 25. Annual Estimate and Justification for Sales 
Program.--(a) No later than February 1 of each year, the 
President shall transmit to the Congress, as a part of the 
annual presentation materials for security assistance programs 
proposed for the next fiscal year, a report which sets forth--
          [``(1) an arms sales proposal covering all sales and 
        licensed commercial exports under this Act of major 
        weapons or weapons-related defense equipment for 
        $7,000,000 or more, or of any other weapons or weapons-
        related defense equipment for $25,000,000 or more, 
        which are considered eligible for approval during the 
        current calendar year, together with an indication of 
        which sales and licensed commercial exports are deemed 
        most likely actually to result in the issuance of a 
        letter of offer or of an export license during such 
        year;
          [``(2) an estimate of the total amount of sales and 
        licensed commercial exports expected to be made to each 
        foreign nation from the United States;
          [``(3) the United States national security 
        considerations involved in expected sales or licensed 
        commercial exports to each country, an analysis of the 
        relationship between anticipated sales to each country 
        and arms control efforts concerning such country and an 
        analysis of the impact of such anticipated sales on the 
        stability of the region that includes such country;
          [``(4) an estimate with regard to the international 
        volume of arms traffic to and from nations purchasing 
        arms as set forth in paragraphs (1) and (2) of this 
        subsection, together with best estimates of the sale 
        and delivery of weapons and weapons-related defense 
        equipment by all major arms suppliers to all major 
        recipient countries during the preceding fiscal year;
          [``(5) an estimate of the aggregate dollar value and 
        quantity of defense articles and defense services, 
        military education and training, grant military 
        assistance, and credits and guarantees, to be furnished 
        by the United States to each foreign country and 
        international organization in the next fiscal year;
          [``(6) an analysis and description of the services 
        performed during the preceding fiscal year by officers 
        and employees of the United States Government carrying 
        out functions on a full-time basis under this Act for 
        which reimbursement is provided under section 43(b) or 
        section 21(a) of this Act, including the number of 
        personnel involved in performing such services;
          [``(7) the total amount of funds in the reserve under 
        section 24(c) at the end of the fiscal year immediately 
        preceding the fiscal year in which a report under this 
        section is made, together with an assessment of the 
        adequacy of such total amount of funds as a reserve for 
        the payment of claims under guarantees issued pursuant 
        to section 24 in view of the current debt servicing 
        capacity of borrowing countries, as reported to the 
        Congress pursuant to section 634(a)(5) of the Foreign 
        Assistance Act of 1961;
          [``(8) a list of all countries with respect to which 
        findings made by the President pursuant to section 
        3(a)(1) of this Act are in effect on the date of such 
        transmission;
          [``(9) the progress made under the program of the 
        Republic of Korea to modernize its armed forces, the 
        role of the United States in mutual security efforts in 
        the Republic of Korea and the military balance between 
        the People's Republic of Korea and the Republic of 
        Korea;
          [``(10) the amount and nature of Soviet military 
        assistance to the armed forces of Cuba during the 
        preceding fiscal year and the military capabilities of 
        those armed forces;
          [``(11) the status of each loan and each contract of 
        guaranty or insurance theretofore made under the 
        Foreign Assistance Act of 1961, predecessor Acts, or 
        any Act authorizing international security assistance, 
        with respect to which there remains outstanding any 
        unpaid obligation or potential liability; the status of 
        each extension of credit for the procurement of defense 
        articles or defense services, and of each contract of 
        guaranty in connection with any such procurement, 
        theretofore made under the Arms Export Control Act with 
        respect to which there remains outstanding any unpaid 
        obligation or potential liability; and
          [``(12) such other information as the President may 
        deem necessary.
    [``(b) Not later than thirty days following the receipt of 
a request made by the Committee on Foreign Relations of the 
Senate or the Committee on Foreign Affairs of the House of 
Representatives for additional information with respect to any 
information submitted pursuant to subsection (a), the President 
shall submit such information to such committee.
    [``(c) The President shall make every effort to submit all 
of the information required by subsection (a) or (b) wholly is 
unclassified form. Whenever the President submits any such 
information in classified form, he shall submit each classified 
information in an addendum and shall also submit simultaneously 
a detailed summary, in unclassified form, of such classified 
information.''.

         [consolidated reports: foreign assistance act of 1961

    [Sec. 733. Section 634(a) of the Foreign Assistance Act of 
1961 is amended--
          [(1) by amending the first sentence to read as 
        follows: ``In order that the Congress and the American 
        people may be better and more currently informed 
        regarding American foreign policy and the effectiveness 
        of assistance provided by the United States Government 
        to other countries and to international organizations, 
        the Chairman of the Development Coordination Committee 
        shall prepare and transmit to the Congress, no later 
        than February 1 of each year, as a part of the annual 
        presentation materials for foreign assistance, a report 
        as described in this subsection. This report shall 
        include--'';
          [(2) in paragraph (1)(B) by striking out ``the 
        progressive developing countries are making toward 
        achieving those objectives which are indicative of 
        improved well-being of the poor majority, which 
        objectives shall include but not be limited to'';
          [(3) in paragraph (2)--
                  [(A) by striking out ``and'' at the end of 
                subparagraph (D);
                  [(B) by adding ``and'' at the end of 
                subparagraph (E); and
                  [(C) by adding at the end thereof the 
                following:
                  [(F) of any contract in excess of $100,000 
                administered by the Agency for International 
                Development which was entered into in the 
                preceding fiscal year without competitive 
                selection procedures, and the reasons for doing 
                so;'';
          [(4) by amending paragraph (4) to read as follows:
          [``(4) the status of each sale of agricultural 
        commodities on credit terms theretofore made under the 
        Agricultural Trade Development and Assistance Act of 
        1954 with respect to which there remains outstanding 
        any unpaid obligation; and the status of each 
        transaction with respect to which a loan, contract or 
        guarantee of insurance, or extension of credit (or 
        participation therein) was theretofore made under the 
        Export-Import Bank Act of 1945 with respect to which 
        there remains outstanding any unpaid obligation or 
        potential liability; except that such report shall 
        include individually only any loan, contract, sale, 
        extension of credit, or other transactions listed in 
        this paragraph which is in excess of $1,000,000;'';
          [(5) In paragraph (7), by striking out ``and'' after 
        the semicolon; and
          [(6) by striking out paragraph (8) and inserting in 
        lieu thereof the following new paragraphs:
          [``(8) the amount of all foreign currencies acquired 
        without payment of dollars on hand of each foreign 
        country as of September 30 of the preceding fiscal 
        year;
          [``(9) the Development Coordination Committee's 
        operations pursuant to section 640B(f) of this Act;
          [``(10) the aggregate dollar value and quantity of 
        grant military assistance, military education and 
        training, and any other defense articles and services 
        furnished under this Act by the United States to each 
        foreign country and international organization for the 
        preceding fiscal year;
          [``(11) information concerning the activities of the 
        Minority Resource Center during the preceding fiscal 
        year; and
          [``(12) other information appropriate to the conduct 
        of the foreign assistance program of the United States 
        Government.''.

                                [repeals

    [Sec. 734. (a) The following provisions of the following 
Acts are repealed:
          [(1) The Foreign Assistance Act of 1961: Sections 
        125(b), 301(b), 301(e)(3), 302(a)(3), 451(b), 
        481(c)(2), 495D(e), 495H(c)(2), 513, 601(e)(2), 613(c), 
        620(b), 620(i), 620(m), 640B(g), 657, 659, and 668, and 
        the second sentence of section 542.
          [(2) The International Security and Development 
        Cooperation Act of 1980; Sections 108, 313(b), 603, 
        713, 714, 720, and 721.
          [(3) The International Development Cooperation Act of 
        1979: Sections 124, 504(b), 506, 507(b), 508(b), and 
        509(c).
          [(4) The Special International Security Assistance 
        Act of 1979: Sections 4(e)(2), 7(b), 8(c), and 9.
          [(5) The International Development and Food 
        Assistance Act of 1978: Sections 117(b)(2), 122(b), 
        201, 303, and 603(a)(1).
          [(6) The International Development and Food 
        Assistance Act of 1977: Sections 132(a), 133(c)(6), and 
        214.
          [(7) Section 213 of the International Development and 
        Food Assistance Act of 1975.
          [(8) The Foreign Assistance Act of 1974: Sections 3, 
        25, 26, 27, 43, 49, 50(c) and 51(c).
          [(9) The Foreign Assistance Act of 1973: Sections 
        36(e), 37, and 38.
          [(10) The Arms Export Control Act: Section 43(c), and 
        the fifth paragraph of section 1.
          [(11) The International Security Assistance Act of 
        1979: Sections 6(b), 20(a), 25, and 28.
          [(12) The International Security Assistance Act of 
        1978: Sections 15(b), 23(d), 23(e)(2), 24(c), 25, and 
        27.
          [(13) The International Security Assistance Act of 
        1977: Sections 14, 22, 24(c), 25, and 28(a)(2).
          [(14) Section 507 of the International Security 
        Assistance and Arms Export Control Act of 1976.
          [(15) Section 7 of the Act entitled ``An Act to amend 
        the Foreign Military Sales Act, and for other 
        purposes'', approved January 12, 1971 (22 U.S.C. 
        2410a).
    [(b) Section 620(s)(1) of the Foreign Assistance Act of 
1961 is amended--
          [(1) in subparagraph (A) by inserting ``and'' after 
        the semicolon;
          [(2) in subparagraph (B)--
                  [(A) by inserting ``or other'' after 
                ``foreign exchange'', and
                  [(B) by striking out ``; and'' and inserting 
                in lieu thereof a period; and
          [(3) by repealing subparagraph (C).
    [(c) Except as otherwise explicitly provided by their 
terms, amendments to the Foreign Assistance Act of 1961 and the 
Arms Export Control Act which are applicable only to a single 
fiscal or calendar year or which require reports or other 
actions on a nonrecurring basis shall be deemed to have expired 
and shall be removed from law upon the expiration of the 
applicable time periods for the fulfillment of the required 
actions.

                     [report on nuclear activities

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

                        [assistance to pakistan

    [Sec. 736. Chapter 1 of part III of the Foreign Assistance 
Act of 1961 is amended by adding at the end thereof the 
following:
    [``Sec. 620E. Assistance to Pakistan.--(a) The Congress 
recognizes that Soviet forces occupying Afghanistan pose a 
security threat to Pakistan. The Congress also recognizes that 
an independent and democratic Pakistan with continued friendly 
ties with the United States is in the interest of both nations. 
The Congress finds that United States assistance will help 
Pakistan maintain its independence. Assistance to Pakistan is 
intended to benefit the people of Pakistan by helping them meet 
the burdens imposed by the presence of Soviet forces in 
Afghanistan and by promoting economic development. In 
authorizing assistance to Pakistan, it is the intent of 
Congress to promote the expeditious restoration of full civil 
liberties and representative government in Pakistan. The 
Congress further recognizes that it is in the mutual interest 
of Pakistan and the United States to avoid the profoundly 
destabilizing effects of the proliferation of nuclear explosive 
devices or the capacity to manufacture or otherwise acquire 
nuclear devices.
    [``(b) The United States reaffirms the commitment made in 
its 1959 bilateral agreement with Pakistan relating to 
aggression from a Communist or Communist-dominated state.
    [``(c) Security assistance for Pakistan shall be made 
available in order to assist Pakistan in dealing with the 
threat to its security posed by the Soviet presence in 
Afghanistan. The United States will take appropriate steps to 
ensure that defense articles provided by the United States to 
Pakistan are used for defensive purposes.
    [``(d) The President may waive the prohibitions of section 
669 of this Act at any time during the period beginning on the 
date of enactment of this section and ending on September 30, 
1987, to provide assistance to Pakistan during that period if 
he determines that to do so is in the national interest of the 
United States.''.

  [prohibitions relating to nuclear transfers and nuclear detonations

    [Sec. 737. (a) The Congress finds that any transfer of a 
nuclear explosive device to an non-nuclear-weapon state or, in 
the case of a non-nuclear-weapon state, any receipt or 
detonation of a nuclear explosive device would cause grave 
damage to bilateral relations between the United States and 
that country.
    [(b) Section 669(b)(2) of the Foreign Assistance Act of 
1961 is amended to read as follows:
    [``(2)(A) A certification under paragraph (1) of this 
subsection shall take effect on the date on which the 
certification is received by the Congress. However, if, within 
thirty calendar days after receiving this certification, the 
Congress adopts a concurrent resolution stating in substance 
that the Congress disapproves the furnishing of assistance 
pursuant to the certification, then upon the adoption of that 
resolution the certification shall cease to be effective and 
all deliveries of assistance furnished under the authority of 
that certification shall be suspended immediately.
    [``(B) Any concurrent resolution under this paragraph shall 
be considered in the Senate in accordance with the provisions 
of section 601(b) of the International Security Assistance and 
Arms Export Control Act of 1976.
    [``(C) For the purpose of expediting the consideration and 
adoption of concurrent resolutions under this paragraph, a 
motion to proceed to the consideration of any such resolution 
after it has been reported by the appropriate committee shall 
be treated as highly privileged in the House of 
representatives.''.
    [(c) Section 670 of such Act is amended to read as follows:
    [``Sec. 670. Nuclear Reprocessing Transfers, Transfers of 
Nuclear Explosive Devices, and Nuclear Detonations.--(a)(1) 
Except as provided in paragraph (2) of this subsection, no 
funds authorized to be appropriated by this Act or the Arms 
Export Control Act may be used for the purpose of providing 
economic assistance (including assistance under chapter 4 of 
part II), providing military assistance or grant military 
education and training, providing assistance under chapter 6 of 
part II, or extending military credits or making guarantees, to 
any country which on or after the date of enactment of the 
International Security Assistance Act of 1977 delivers nuclear 
reprocessing equipment, materials, or technology to any other 
country or receives such equipment, materials, or technology 
from any other country (except for the transfer of reprocessing 
technology associated with the investigation, under 
international evaluation programs in which the United States 
participates, of technologies which are alternatives to pure 
plutonium reprocessing).
    [``(2) Notwithstanding paragraph (1) of this subsection, 
the President may furnish assistance which would otherwise be 
prohibited under that paragraph if he determines and certifies 
in writing to the Speaker of the House of Representatives and 
the Committee on Foreign Relations of the Senate that the 
termination of such assistance would be seriously prejudicial 
to the achievement of United States nonproliferation objectives 
or otherwise jeopardize the common defense and security. The 
President shall transmit with such certification a statement 
setting forth the specific reasons therefor.
    [``(3)(A) A certification under paragraph (2) of this 
subsection shall take effect on the date on which the 
certification is received by the Congress. However, if, within 
30 calendar days after receiving this certification, the 
Congress adopts a concurrent resolution stating in substance 
that the Congress disapproves the furnishing of assistance 
pursuant to the certification, then upon the adoption of that 
resolution the certification shall cease to be effective and 
all deliveries of assistance furnished under the authority of 
that certification shall be suspended immediately.
    [(B) Any concurrent resolution under this paragraph shall 
be considered in the Senate in accordance with the provisions 
of section 601(b) of the International Security Assistance and 
Arms Export Control Act of 1976.
    [(C) For the purpose of expediting the consideration and 
adoption of concurrent resolutions under this paragraph, a 
motion to proceed to the consideration of any such resolution 
after it has been reported by the appropriate committee shall 
be treated as highly privileged in the House of 
Representatives.
    [(b)(1) Except as provided in paragraphs (2) and (3) of 
this subsection, no funds authorized to be appropriated by this 
Act or the Arms Export Control Act may be used for the purpose 
of providing economic assistance (including assistance under 
chapter 4 of part II), providing military assistance or grant 
military education and training providing assistance under 
chapter 6 of part II, or extending military credits or making 
guarantees, to any country which on or after the date of 
enactment of the International Security Assistance Act of 
1977--
          [``(A) transfers a nuclear explosive device to a non-
        nuclear-weapon state, or
          [``(B) is a non-nuclear-weapon state and either--
                  [``(i) receives a nuclear explosive device, 
                or
                  [``(ii) detonates a nuclear explosive device.
    [``(2)(A) Notwithstanding paragraph (1) of this subsection, 
the President may, for a period of not more than 30 days of 
continuous session, furnish assistance which would otherwise be 
prohibited under paragraph (1) of this subsection if, before 
furnishing such assistance, the President transmits to the 
Speaker of the House of Representatives, and to the chairman of 
the Committee on Foreign Relations of the Senate, a 
certification that he has determined that an immediate 
termination of assistance to that country would be detrimental 
to the national security of the United States. Not more than 
one such certification may be transmitted for a country with 
respect to the same detonation, transfer, or receipt or a 
nuclear explosive device.
    [``(B) If the President transmits a certification to the 
Congress under subparagraph (A), a joint resolution which would 
permit the President to exercise the waiver authority of 
paragraph (3) of this subsection shall, if introduced in either 
House within thirty days of continuous session after the 
Congress receives this certification, be considered in the 
Senate and House of Representatives in accordance with 
subparagraphs (C) and (D) of this paragraph.
    [``(C) Any joint resolution under this paragraph shall be 
considered in the Senate in accordance with the provisions of 
section 601(b) of the International Security Assistance and 
Arms Export Control Act of 1976.
    [``(D) For the purpose of expediting the consideration and 
adoption of joint resolutions under this paragraph, a motion to 
proceed to the consideration of such a joint resolution after 
it has been reported by the appropriate committee shall be 
treated as highly privileged in the House of Representatives.
    [``(E) For purposes of this paragraph, the term `joint 
resolution' means a joint resolution the matter after the 
resolving clause of which is as follows: `That the Congress 
having received on ------------ a certification by the 
President under section 670(b)(2) of the Foreign Assistance Act 
of 1961 with respect to --------, the Congress hereby 
authorizes the President to exercise the waiver authority 
contained in section 670(b)(3) of that Act', with the date of 
receipt of the certification inserted in the first blank and 
the name of the country inserted in the second blank.
    [``(3) Notwithstanding paragraph (1) of this subsection, if 
the Congress enacts a joint resolution under paragraph (2) of 
this subsection, the President may furnish assistance which 
would otherwise be prohibited under paragraph (1) if he 
determines and certifies in writing to the Speaker of the House 
of Representatives and the Committee on Foreign Relations of 
the Senate that the termination of such assistance would be 
seriously prejudicial to the achievement of United States 
nonproliferation objectives or otherwise jeopardize the common 
defense and security. The President shall transmit with such 
certification a statement setting forth the specific reasons 
therefor.
    [``(4) For purposes of this subsection, continuity of 
session is broken only by an adjournment of Congress sine die 
and the days on which either House is not in session because of 
an adjournment of more than three days to a day certain are 
excluded in the computation of any period of time in which 
Congress is in continuous session.
    [``(5) As used in this subsection, the term `non-nuclear-
weapon state' means any country which is not a nuclear-weapon 
state, as defined in article IX(3) of the Treaty on the Non-
Proliferation of Nuclear Weapons.''.
    [Approved December 29, 1981.]
                              ----------                              

  THE INTERNATIONAL SECURITY AND DEVELOPMENT AUTHORIZATION ACT OF 1983

                          (public law 98-151)

    [Savings Provision.--Except as otherwise provided in this 
Act, the repeal by this Act, of any provision of law that 
amended or repealed another provision of law does not affect in 
any way that amendment or repeal.

                           [Joint Resolution

  [Making further continuing appropriations for the fiscal year 1984.

    [Resolved by the Senate and House of Representatives of the 
United States of America in Congress assembled, That the 
following sums are hereby appropriated, out of any money in the 
Treasury not otherwise appropriated, and out of applicable 
corporate or other revenues, receipts, and funds, for the 
several departments, agencies, corporations, and other 
organizational units of the Government for the fiscal year 
1984, and for other purposes, namely:
    [Sec. 101. (a) Pending enactment of the Department of 
Defense Appropriation Act, 1984, such amounts as may be 
necessary for continuing activities, not otherwise specifically 
provided for elsewhere in this joint resolution, which were 
conducted in fiscal year 1983, for which provision was made in 
the Department of Defense Appropriation Act, 1983, but such 
activities shall be funded at not to exceed an annual rate for 
new obligational authority of $247,000,000,000, which is an 
increase above the current rate, and this level shall be 
distributed on a pro rata basis to each appropriation account 
utilizing the fiscal year 1984 amended budget request as the 
base for such distribution and shall be available under the 
terms and conditions provided for in the applicable 
appropriation Acts for fiscal year 1983. Provided, That, unless 
approved by both the House and the Senate in H.R. 4185, no 
appropriation or funds made available or authority granted 
pursuant to this subsection shall be used to initiate multiyear 
procurements, utilizing advance procurement funding for 
economic order quantity procurement unless specifically 
appropriated later: Provided further, That none of the funds 
appropriated or made available pursuant to this subsection 
shall be available for the conversion of any full-time 
positions in support of the Army Reserve, Air Reserve, Army 
National Guard, and Air National Guard by Active or Reserve 
Military Personnel, from civilian positions designated 
``military technicians'' to military positions: Provided 
further, That, unless approved by both the House and the Senate 
in H.R. 4185, no appropriation or funds made available or 
authority granted pursuant to this subsection shall be used to 
initiate or resume any project, activity, operation or 
organization, which is defined as any project, subproject, 
activity, budget activity, program element, and subprogram 
within a program element, and for investment items is further 
defined as a P-1 line item in a budget activity within an 
appropriation account and a R-1 line item which includes a 
program element and subprogram element within an appropriation 
account, for which appropriations, funds or other authority 
were not available during the fiscal year 1983.
    [(b)(1) Such amounts as may be necessary for continuing the 
activities under the purview of the Foreign Assistance 
Appropriations Act as provided for in Public Law 97-377 and 
Public Law 98-63, under the terms and conditions, and at the 
rate, provided for in those Acts or at the rate provided for in 
the budget estimates, whichever is lower, and under the more 
restrictive authority: Provided, That such terms and conditions 
shall be applied without regard to the earmarkings, ceilings or 
transfers of funds contained in such Acts, except that the 
provisions of title V of Public Law 97-121 shall apply 
including the provisions of section 523 of such title: Provided 
further, That notwithstanding the provisions of this subsection 
making amounts available or otherwise providing for levels of 
program authority, the following amounts only shall be provided 
for the following accounts or under the following headings: 
$79,720,549 for payment to the ``International Bank for 
Reconstruction and Development'', to remain available until 
expended, and not to exceed $983,220,105 in callable capital 
subscriptions; $118,423,983 for payment to the ``Inter-American 
Development Bank'', to remain available until expended, of 
which not more than $80,423,000 shall be available for the Fund 
for Special Operations, as authorized by sections 26, 29, and 
30 of the Inter-American Development Bank Act, and not to 
exceed $806,464,582 in callable capital subscriptions; 
$945,000,000 for payment to the ``International Development 
Association'', to remain available until expended; $13,232,676 
for payment to the ``Asian Development Bank'', to remain 
available until expended, and not to exceed $251,377,943 in 
callable capital subscriptions; $100,000,000 for payment to the 
``Asian Development Fund'', to remain available until expended; 
$17,986,678 for payment to the ``African Development Bank'', to 
remain available until expended, and not to exceed $53,960,036 
in callable capital subscriptions; $50,000,000 for payment to 
the ``African Development Fund'', to remain available until 
expended; $314,164,000 for ``International Organizations and 
Programs'', including the provisions of section 103(g) of the 
Foreign Assistance Act of 1961, except that such funds shall be 
made available only in accordance with the Joint Explanatory 
Statement of the Committee of Conference accompanying the 
conference report on this joint resolution (H.R. Res. 413); 
$715,106,500 for ``Agriculture, rural development, and 
nutrition, Development Assistance''; $240,000,000 for 
``Population, Development Assistance''; $125,000,000 for 
``Health, Development Assistance''; $116,477,000 for 
``Education and human resources development, Development 
Assistance'', of which $4,000,000 shall be available only for 
scholarships for South African students in accordance with the 
last sentence of section 105(a) of the Foreign Assistance Act 
of 1961; $140,288,000 for ``Energy and selected development 
activities, Development Assistance''; $10,000,000 for ``Science 
and technology, Development Assistance'': Provided further, 
That of the funds made available to carry out the provisions of 
sections 103 through 106 of the Foreign Assistance Act of 1961, 
as amended, not less than $10,000,000 shall be available for 
Botswana: Provided further, That funds made available as loans 
to carry out the provisions of section 103 through 106 of the 
Foreign Assistance Act of 1961 shall remain available for 
obligation until September 30, 1985; up to $20,000,000 of the 
funds appropriated by this subsection to carry out the 
provisions of chapter 1 of part I are available for the 
``Private Sector Revolving Fund'', which shall be available for 
obligation until September 30, 1985, except that amounts 
hereafter deobligated from the Private Sector Revolving Fund 
are hereby continued available for reobligation for the 
purposes of such fund; $30,000,000 for ``American schools and 
hospitals abroad''; $103,000,000 for ``Sahel development 
program''; $36,537,000 for ``Payment to the Foreign Service 
Retirement and Disability Fund''; $25,000,000 for 
``International disaster assistance'', to remain available 
until expended, of which $10,000,000 shall be used only for 
earthquake relief and reconstruction in southern Italy, which 
amount may be derived either from amounts appropriated to carry 
out the provisions of section 491 of the Foreign Assistance Act 
of 1961 or from up to $10,000,000 of amounts heretofore 
appropriated pursuant to chapter 4 of part II of such Act for 
Syria which are, if deobligated, hereby continued available for 
the purposes of section 491 or for other programs for Italy 
consistent with sections 103 through 106 of such Act, and up to 
$15,000,000 of such deobligated amounts are hereby continued 
available and may be used for grant economic assistance 
programs for Grenada, except that such funds for Grenada may 
not be made available for obligation unless the Appropriations 
Committees of both Houses of Congress are previously notified 
15 days in advance; $1,100,000 in foreign currencies for 
``Overseas training and special development activities (foreign 
currency program)''; $2,903,250,000 for the ``Economic Support 
Fund'', of which not less than $910,000,000 shall be available 
for Israel, not less than $750,000,000 shall be available for 
Egypt, not less than $15,000,000 shall be available for Cyprus, 
and, notwithstanding section 660 of the Foreign Assistance Act 
of 1961, not less than $3,000,000 shall be available for 
programs and projects in El Salvador to promote the creation of 
judicial investigative capabilities, protection for key 
participants in pending judicial cases, and modernization of 
penal and evidentiary codes; $46,200,000 for ``Peacekeeping 
operations''; $361,533,250 for ``Operating expenses of the 
Agency for International Development'', subject to the 
limitation on transfers of funds into this account and payment 
for Foreign Affairs Administrative Support contained in Public 
Law 97-377; $16,250,000 for ``Trade and Development''; 
$41,200,000 for ``International narcotics control''; $3,000,000 
for the ``African Development Foundation''; $13,000,000 for the 
``Inter-American Foundation''; not to exceed $10,000,000 for 
gross obligations for the amount of direct loans and not to 
exceed $100,000,000 of contingent liability for total 
commitments to guarantee loans for the ``Overseas Private 
Investment Corporation''; $115,000,000 for the ``Peace Corps''; 
$323,000,000 for ``Migration and Refugee Assistance''; 
$2,500,000 for ``Anti-Terrorism Assistance''; $510,000,000 for 
necessary expenses to carry out the provisions of section 503 
of the Foreign Assistance Act of 1961; $51,532,000 for 
``International Military Education and Training''; 
$1,315,000,000 for necessary expenses to carry out sections 23 
and 24 of the Arms Export Control Act, of which not less than 
$850,000,000 shall be available for Israel ($1,700,000,000 of 
the amount provided for the total aggregate credit sale ceiling 
during the fiscal year 1984 shall be available only to Israel), 
and not less than $465,000,000 shall be available for Egypt; 
$4,401,250,000 of contingent liability for total commitments to 
guarantee loans under ``Foreign Military Credit Sales'': 
Provided further, That of the total aggregate credit ceiling 
made available to Israel, up to $300,000,000 shall be made 
available for research and development activities in the United 
States and $250,000 shall be made available for the procurement 
of defense articles and defense services in Israel for the Lavi 
program: Provided further, That not more than $64,800,000 of 
the total funds and authorities made available under this 
subsection for programs for military assistance shall be 
available for El Salvador; not to exceed $225,000,000 are 
authorized to be made available for the ``Special Defense 
Acquisition Fund''; and not to exceed $3,865,000,000 of gross 
obligations for the principal amount of direct loans and 
$10,000,000,000 of total commitments to guarantee loans under 
``Export-Import Bank of the United States'', and not to exceed 
$16,899,000 shall be available for administrative expenses: 
Provided further, That no funds in this subsection shall be 
available for Guatemala except for economic development 
projects through private voluntary organizations: Provided 
further, That none of the funds appropriated or otherwise made 
available to the Agency for International Development shall be 
used to fund projects or programs where comparable American 
private enterprise funding is available: Provided further, That 
the Secretary of the Treasury and the Secretary of State are 
directed to submit to the Committees on Foreign Affairs and the 
Committees on Appropriations by February 1, 1984, a report on 
the domestic economic policies of those nations receiving 
economic assistance, either directly or indirectly from the 
United States including, where appropriate, an analysis of the 
foreign assistance programs conducted by these recipient 
nations: Provided further, That appropriations made available 
and authority provided by this subsection shall remain 
available until September 30, 1984, notwithstanding section 102 
of this joint resolution.
    [Not later than January 31 of each year, or at the time of 
the transmittal by the President to the Congress of the annual 
presentation materials on foreign assistance, whichever is 
earlier, the President shall transmit to the Speaker of the 
House of Representatives and the President of the Senate a full 
and complete report which assesses, with respect to each 
foreign country, the degree of support by the government of 
each such country during the preceding twelve-month period for 
the foreign policy of the United States. Such report shall 
include, with respect to each such country which is a member of 
the United Nations, information to be compiled and supplied by 
the Permanent Representative of the United States to the United 
Nations, consisting of a comparison of the overall voting 
practices in the principal bodies of the United Nations during 
the preceding twelve-month period of such country and the 
United States, with special note of the voting and speaking 
records of such country on issues of major importance to the 
United States in the General Assembly and the Security Council, 
and shall also include a report on actions with regard to the 
United States in important related documents such as the Non-
Aligned Communique. A full compilation of the information 
supplied by the Permanent Representative of the United States 
to the United Nations for inclusion in such report shall be 
provided as an addendum to such report. None of the funds 
appropriated or otherwise made available pursuant to this 
subsection shall be obligated or expended to finance directly 
any assistance to a country which the President finds, based on 
the contents of the report required to be transmitted under 
this paragraph, is engaged in a consistent pattern of 
opposition to the foreign policy of the United States.
    [None of the funds heretofore appropriated otherwise made 
available for Syria for the purposes of carrying out the 
provisions of chapter 4 of part II of the Foreign Assistance 
Act of 1961 shall be expended after the date of enactment of 
this joint resolution. The Administrator of the Agency for 
International Development is directed to terminate the economic 
assistance program to Syria and to deobligate all funds 
heretofore obligated for assistance to Syria, except that such 
funds may continue to be available to finance the training or 
studies outside of Syria of students whose course of study or 
training program began before enactment of this joint 
resolution. The Administrator of the Agency for International 
Development is authorized to adopt as a contract of the United 
States Government, and assume any liabilities arising 
thereunder (in whole or in part), any contract with a United 
States contractor which had been funded by the Agency for 
International Development prior to the date of enactment of 
this joint resolution. Amounts certified pursuant to section 
1311 of the Supplemental Appropriations Act, 1955, as having 
been obligated against appropriations heretofore made pursuant 
to chapter 4 of part II of the Foreign Assistance Act of 1961 
(and predecessor legislation) for Syria are hereby continued 
available until expended to meet necessary expenses arising 
from the termination under this subsection of assistance 
programs for Syria authorized by such chapter: Provided, That 
this shall not be construed as permitting payments or 
reimbursements of any kind to the Government of Syria.
    [None of the funds appropriated or otherwise made available 
under this subsection may be available for any country during 
any three-month period beginning on or after October 1, 1983, 
immediately following a certification by the President to the 
Congress that the government of such country is failing to take 
adequate measures to prevent narcotic drugs or other controlled 
substances (as listed in the schedules in section 202 of the 
Comprehensive Drug Abuse and Prevention Control Act of 1971 (21 
U.S.C. 812)) which are cultivated, produced, or processed 
illicitly, in whole or in part, in such country, or transported 
through such country from being sold illegally within the 
jurisdiction of such country to United States Government 
personnel or their dependents or from entering the United 
States unlawfully.
    [Amounts certified pursuant to section 1311 of the 
Supplemental Appropriations Act, 1955, as having been obligated 
against appropriations heretofore made under the authority of 
the Foreign Assistance Act of 1961, as amended, for the same 
general purpose as any of the subparagraphs under ``Agency for 
International Development'' in prior appropriations Acts, are, 
if deobligated, hereby continued available for development 
project assistance for the same period as the respective 
appropriations in such subparagraphs for the same general 
purpose and for the same country as originally obligated or for 
relief, rehabilitation, and reconstruction activities in the 
Andean region: Provided, That the Appropriations Committees of 
both Houses of the Congress are notified fifteen days in 
advance of the deobligation or reobligation of such funds.
    [Section 101(b)(1) of this joint resolution may be cited as 
the ``Foreign Assistance and Related Programs Appropriations 
Act, 1984''.
    [(2) Section 101(b)(2) of this joint resolution may be 
cited as the ``International Security and Development 
Assistance Authorizations Act of 1983''.

                   [authorizations of appropriations

    [There is authorized to be appropriated to the President 
$1,315,000,000 for the fiscal year 1984 to carry out section 23 
of the Arms Export Control Act. The total principal amount of 
loans guaranteed under section 24(a) of the Arms Export Control 
Act shall not exceed $4,446,500,000 for the fiscal year 1984.
    [There are authorized to be appropriated for the fiscal 
year 1984 the following amounts to carry out the following 
provisions of the Foreign Assistance Act of 1961:
          [(1) $725,213,000 to carry out section 103.
          [(2) $244,600,000 to carry out section 104(b).
          [(3) $133,400,000 to carry out section 104(c).
          [(4) $121,477,000 to carry out section 105.
          [(5) $160,000,000 to carry out section 106.
          [(6) $103,000,000 to carry out section 121.
          [(7) $30,000,000 to carry out section 214
          [(8) $266,214,000 to carry out chapter 3 of part I.
          [(9) $47,000,000 to carry out section 481.
          [(10) $25,000,000 to carry out section 491.
          [(11) $3,074,000,000 to carry out chapter 4 of part 
        II.
          [(12) $639,700,000 to carry out section 503.
          [(13) $56,452,000 to carry out chapter 5 of part II.
          [(14) $46,200,000 to carry out chapter 6 of part II.
          [(15) $22,000,000 to carry out section 661.
          [(16) $370,000,000 to carry out section 667.
    [There is authorized to be appropriated to the President to 
carry out the African Development Foundation Act $3,000,000 for 
the fiscal year 1984.
    [There is authorized to be appropriated to carry out the 
Peace Corps Act $1116,000,000 for the fiscal year 1984.
    [Section 10 of Public Law 91-672 and section 15(a) of the 
State Department Basic Authorities Act of 1956 shall not apply 
with respect to funds appropriated for ``Migration and Refugee 
Assistance'' or for the Inter-American Foundation by the joint 
resolution of October 1, 1983 (Public Law 98-107), as amended 
by this joint resolution.

                    [assistance for Israel and Egypt

    [Section 31(b)(3) of the Arms Export Control ACt is amended 
to read as follows:
    [``(3) Of the aggregate total of credits (or participations 
in credits) extended under section 23 of this Act and of the 
total principal amount of loans guaranteed under section 24(a) 
of this Act, not less than $1,700,000,000 for the fiscal year 
1984 shall be available only for Israel, of which not less than 
$850,000,000 shall be credits under section 23. Of the total 
aggregate credit ceiling made available to Israel, up to 
$300,000,000 shall be made available to Israel, up to 
$300,000,000 shall be made available for research and 
development activities in the United States and $250,000,000 
shall be made available for the procurement of defense articles 
and defense services in Israel for the Lavi program.''.
    [Section 31(c) of such Act is amended--
          [(a) in the first sentence by striking out ``for the 
        fiscal year 1982 and for the fiscal year 1983'' and 
        inserting in lieu thereof ``for the fiscal year 1984''; 
        and
          [(b) in the last sentence--
                  [(1) by striking out ``$550,000,000'' and 
                inserting in lieu thereof ``$850,000,000 for 
                the fiscal year 1984''; and
                  [(2) by striking out ``for each such year''.
    [Section 31(b)(6) of such Act is amended to read as 
follows:
    [``(6) Of the total amounts of credits (participations in 
credits) extended under section 23 of this Act, not less than 
$465,000,000 for the fiscal year 1984 shall be available only 
for Egypt, and Egypt shall be released from its contractual 
liability to repay the United States Government with respect to 
such credits (and participations in credits). Of the total 
principal amount of loans guaranteed under section 24(a) of 
this Act, not less than $900,000.000 for the fiscal year 1984 
shall be available only for Egypt.''.
    [Section 31(b)(5) of such Act is amended by striking out 
``for the fiscal year 1982 and for the fiscal year 1983'' and 
inserting in lieu thereof ``for the fiscal year 1984''.
    [Section 532 of the Foreign Assistance Act of 1961 is 
amended to read as follows:
    [``Sec. 532. Earmarking For Israel and Egypt.--Of the funds 
authorized to be appropriated to carry out this chapter for the 
fiscal year 1984, not less than $910,000,000 shall be available 
only for Israel and not less than $750,000,000 shall be 
available only for Egypt.''.

           [conditions on military assistance for el salvador

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

                          [minority set-aside

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

                       [minority resource center

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

  [promoting the development of the Haitian people and providing for 
                     orderly emigration from Haiti

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

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

                   [antiterrorism assistance program

    [The amendments contained in title II of H.R. 2992, as 
reported by the Committee on Foreign Affairs of the House of 
Representatives on May 17, 1983, are hereby enacted, except 
that, for purposes of such enactment, section 575 of the 
Foreign Assistance Act of 1961 shall read as follows:
    [``Sec. 575. Appropriations.--There is authorized to be 
appropriated to the President to carry out this chapter 
$5,000,000 for the fiscal year 1984. Amounts appropriated under 
this section are authorized to remain available until 
expended.''.
    [(c) Notwithstanding any other provision of this joint 
resolution, except section 102, such amounts as may be 
necessary for continuing the following activities, not 
otherwise provided for in this joint resolution, which were 
conducted in the fiscal year 1983, under the terms and 
conditions provided in applicable appropriation Acts for the 
fiscal year 1983, at the current rate:
          [Health planning activities authorized by title XV of 
        the Public Health Service Act;
          [National Research Service Awards authorized by 
        section 472(d) of the Public Health Service Act;
          [National Arthritis Advisory Board, National Diabetes 
        Advisory Board, and National Digestive Diseases 
        Advisory Board authorized by section 437 of the Public 
        Health Service Act;
          [Medical Library Assistance programs authorized by 
        title III of the Public Health Service Act;
          [Refugee and entrant assistance activities under the 
        provisions of title IV of the Immigration and 
        Nationality Act, title IV and part B of title III of 
        the Refugee Act of 1980, and sections 501 (a) and (b) 
        of the Refugee Education Assistance Act of 1980: 
        Provided, That such funds may be expended for 
        individuals who would meet the definition of ``Cuban 
        and Haitian entrant'' under section 501(e) of the 
        Refugee Education Assistance Act of 1980 but for the 
        application of paragraph (2)(B) thereof: Provided 
        further, That none of the funds made available under 
        this joint resolution may be used to implement any 
        administratively proposed block grant, per capita 
        grant, or similar consolidation of the Refugee 
        Resettlement Program, or to distribute any funds under 
        any such administrative proposal;
          [Child abuse prevention and treatment and adoption 
        opportunities activities authorized by the Child Abuse 
        Prevention and Treatment Act;
          [Activities under the Domestic Volunteer Service Act 
        of 1973, as amended; and
          [Activities of the Department of Defense, Army 
        National Guard and Army Reserve Operation and 
        Maintenance and National Guard and Reserve Equipment 
        Procurement.
    [(d) Notwithstanding any other provisions of this joint 
resolution, except section 102, such sums as may be necessary 
for programs, projects, or activities provided for in the 
Agriculture, Rural Development and Related Agencies 
Appropriation Act, 1984 (H.R. 3223), to the extent and in the 
manner provided for in the conference report and joint 
explanatory statement of the Committee of Conference (House 
Report Number 98-450), filed in the House of Representatives on 
October 27, 1983, as if such Act had been enacted into law.
    [(e) Notwithstanding any other provision of this joint 
resolution except section 102, such amounts as may be necessary 
for programs, projects, or activities not otherwise 
specifically provided for in this joint resolution for which 
appropriations, funds, or other authority would be available in 
the Commerce, Justice, and State, the Judiciary, and Related 
Agencies Appropriation Act, 1984 (H.R. 3222), at a rate for 
operations and to the extent and in the manner that was 
provided for in Public Law 98-107: Provided, That none of the 
funds made available in this joint resolution for the 
Department of Justice and the Federal Trade Commission may be 
used for any activity, the purpose of which is to overturn or 
alter the per se prohibition on resale price maintenance in 
effect under Federal antitrust laws: Provided further, That 
nothing in this provision shall prohibit any employee of the 
Department of Justice or the Federal Trade Commission from 
presenting testimony on this matter before appropriate 
committees of the House and Senate.
    [(f) Such amounts as may be necessary for continuing the 
activities, not otherwise specifically provided for in this 
joint resolution, which were provided for in H.R. 4139, the 
Treasury, Postal Service and General Government Appropriations 
Act, 1984, as passed by the House of Representatives on October 
27, 1983, to the extent and in the manner provided for in such 
Act, and at a rate for operations as was provided for in S. 
1646, the Treasury, Postal Service and General Government 
Appropriations Bill, 1984, as reported to the Senate (S. Rept. 
98-186) on July 20, 1983: Provided, That any activity included 
in the Senate reported bill (S. 1646), but not included in the 
House passed bill (H.R. 4139), shall be continued at the rate 
and under the terms and conditions of the Senate reported bill 
(S. 1646).
    [(g) Notwithstanding any other provision of this joint 
resolution, the following amounts are hereby made available, in 
addition to funds otherwise available, for the following 
purposes:

                     [education for the handicapped

    [For an additional amount for carrying out section 611 of 
the Education of the Handicapped Act, $25,000,000 to become 
available on July 1, 1984 and to remain available until 
September 30, 1985.

           [rehabilitation services and handicapped research

    [For an additional amount for carrying out section 
100(b)(1) of the Rehabilitation Act of 1973, $10,000,000.

       [grants to schools with substantial numbers of immigrants

    [For carrying out emergency immigrant education assistance 
under title V of H.R. 3520 as passed the House of 
Representatives September 13, 1983, $30,000,000.
                           [higher education

    [For an additional amount for work-study programs under 
title IV of the Higher Education Act of 1965, $5,000,000.
    [For an additional amount for supplemental educational 
opportunity grants under title IV of the Higher Education Act 
of 1965, $5,000,000.

                       [community health centers

    [For an additional amount for carrying out titles III and 
XIX of the Public Health Service Act with respect to community 
health centers, $10,000,000.

               [national technical institute for the deaf

    [For an additional amount for carrying out the National 
Technical Institute for the Deaf Act, $1,700,000.

                           [gallaudet college

    [For an additional amount for carrying out the Act of June 
18, 1954 (68 Stat. 265), relating to Gallaudet College, 
$2,000,000.

               [food distribution and emergency shelters

    [There is hereby appropriated, out of any money in the 
Treasury not otherwise appropriated, $10,000,000 to the Federal 
Emergency Management Agency to carry out an emergency food and 
shelter program. Notwithstanding any other provision of this 
joint resolution or any other provision of law, such amount 
shall be made available under the terms and conditions of the 
following paragraphs:
    [The Director of the Federal Emergency Management Agency 
shall, as soon as practicable after enactment of this Act, 
constitute a national board for the purpose of determining how 
the program funds are to be distributed to individual 
localities. The national board shall consist of seven members. 
The United Way of America, the Salvation Army, the Council of 
Churches, the National Conference of Catholic Charities, the 
Council of Jewish Federations, Inc., the American Red Cross, 
and the Federal Emergency Management Agency shall each 
designate a representative to sit on the national board. The 
representative of the Federal Emergency Management Agency shall 
chair the national board.
    [Each locality designated by the national board to receive 
funds shall constitute a local board for the purpose of 
determining how its funds will be distributed. The local board 
shall consist, to the extent practicable, of representatives of 
the same organizations as the national board except that the 
mayor or appropriate head of government will replace the 
Federal Emergency Management Agency member.
    [The Director of the Federal Emergency Management Agency 
shall award a grant for $10,000,000 to the national board 
within thirty days after enactment of this Act for the purpose 
of providing emergency food and shelter to needy individuals 
through private voluntary organizations.
    [Eligible private voluntary organizations should be 
nonprofit, have a voluntary board, have an accounting system, 
and practice nondiscrimation.
    [Participation in the program should be based upon a 
private voluntary organization's ability to deliver emergency 
food and shelter to needy individuals and such other factors as 
are determined by the local boards.
    [Total administrative costs shall not exceed 2 per centum 
of the total appropriation.
    [As authorized by the Charter of the Commodity Credit 
Corporation, the Corporation shall process and distribute 
surplus food owned or to be purchased by the Corporation under 
the food distribution and emergency shelter program in 
cooperation with the Federal Emergency Management Agency.
    [Sec. 102. Appropriations and funds made available and 
authority granted pursuant to this joint resolution shall be 
available from November 10, 1983, and shall remain available 
until (a) enactment into law of an appropriation for any 
project or activity provided for in this joint resolution, or 
(b) enactment of the applicable appropriation Act by both 
Houses without any provision for such project or activity, or 
(c) September 30, 1984, whichever first occurs.
    [Sec. 103. Appropriations made and authority granted 
pursuant to this joint resolution shall cover all obligations 
or expenditures incurred for any project or activity during the 
period for which funds or authority for such project or 
activity are available under this joint resolution.
    [Sec. 104. Expenditures made pursuant to this joint 
resolution shall be charged to the applicable appropriation, 
fund, or authorization whenever a bill in which such applicable 
appropriation, fund, or authorization is contained is enacted 
into law.
    [Sec. 105. No provision in any appropriation Act for the 
fiscal year 1984 referred to in section 101 of this joint 
resolution that makes the availability of any appropriation 
provided therein dependent upon the enactment of additional 
authorizing or other legislation shall be effective before the 
date set forth in section 102(c) of this joint resolution.
    [Sec. 106. Notwithstanding any other provision of this 
joint resolution except section 102, there are appropriated to 
the Postal Service Fund sufficient amounts so that postal rates 
for all preferred-rate mailers covered by section 3626 of title 
39, United States Code, shall be continued at the rates in 
effect on September 1, 1983 (step 14): Provided, That mail for 
overseas voting and mail for the bind shall continue to be 
free: Provided further, That six-day delivery and rural 
delivery of mail shall continue at the 1983 level.
    [Sec. 107. All obligations incurred in anticipation of the 
appropriations and authority provided in this joint resolution 
for the purposes of maintaining the minimum level of essential 
activities necessary to protect life and property and bringing 
about orderly termination of other functions are hereby 
ratified and confirmed if otherwise in accordance with the 
provisions of this joint resolution.
    [Sec. 108. Notwithstanding any other provision of this 
joint resolution, funds available to the Federal Building Fund 
within the General Services Administration may be used to 
initiate new construction, purchase, advance design, and 
repairs and alteration line-items projects which are included 
in the Treasury, Postal Service and General Government 
Appropriation Act, 1984, as passed by the House or as reported 
to the Senate.
    [Sec. 110. Notwithstanding any other provision of this 
joint resolution, within available funds not to exceed $100,000 
is available to the Federal Law Enforcement Training Center and 
may be used for plans, major maintenance, and improvements to 
Center lands and facilities, to remain available until 
expended.
    [Sec. 112. Notwithstanding any other provision of law, none 
of the funds made available to the General Services 
Administration pursuant to section 210(f) of the Federal 
Property and Administrative Services Act of 1949 shall be 
obligated or expended after the date of enactment of this joint 
resolution for the procurement by contract of any service 
which, before such date, was performed by individuals in their 
capacity as employees of the General Services Administration in 
any position of guards, elevator operators, messengers, and 
custodians, except that such funds may be obligated or expended 
for the procurement by contract of the covered services with 
sheltered workshops employing the severely handicapped under 
Public Law 92-28.
    [Sec. 113. Notwithstanding any other provision of this 
joint resolution, $7,400,000 is appropriated to the Tennessee 
Valley Authority, to be available for the purpose of providing 
recreation on the Ocoee River, $6,400,000 of which is for 
reimbursement of the power program for additional costs of 
power operations resulting from recreational releases of water, 
all of which shall be reimbursed from imposition of fees for 
such recreation activities.
    [Sec. 114. The head of any department or agency of the 
Federal Government in carrying out any loan guarantee or 
insurance program for the fiscal year 1984 shall enter into 
commitments to guarantee or insure loans pursuant to such 
program in the full amount provided by law subject only to (1) 
the availability of qualified applicants for such guarantee or 
insurance, and (2) limitations contained in appropriation Acts.
    [Sec. 115. (a) Chapter 25 of title 18, United States Code, 
is amended by adding the following new section:

[``Sec. 510. Forging  endorsements  on  Treasury  checks  or  bonds  or 
                     securities  of  the United States

    [``(a) Whoever, with intent to defraud--
          [``(1) falsely makes or forges any endorsement or 
        signature on a Treasury check or bond or security of 
        the United States; or
          [``(2) passes, utters, or publishes, or attempts to 
        pass, utter, or publish, any Treasury check or bond or 
        security of the United States bearing a falsely made or 
        forged endorsement or signature shall be fined not more 
        than $10,000 or imprisoned not more than ten years, or 
        both.
    [``(b) Whoever, with knowledge that such Treasury check or 
bond or security of the United States is stolen or bears a 
falsely made or forged endorsement or signature buys, sells, 
exchanges, receives, delivers, retains, or conceals any such 
Treasury check or bond or security of the United States that in 
fact is stolen or bears a forged or falsely made endorsement or 
signature shall be fined not more than $10,000 or imprisoned 
not more than ten years, or both.
    [``(c) If the face value of the Treasury check or bond or 
security of the United States or the aggregate face value, if 
more than one Treasury check or bond or security of the United 
States, does not exceed $500, in any of the above-mentioned 
offenses, the penalty shall be a fine of not more than $1,000 
or imprisonment for not more than one year, or both.''.
    [(b) Section 3056(a) of title 18, United States Code, is 
amended by inserting in the fifth clause the number ``510,'' 
after ``509.''.
    [(c) The analysis of chapter 25, of title 18, United States 
Code, immediately preceding section 471 of such title, is 
amended by adding at the end thereof the following:

[``510. Forging endorsements on Treasury checks or bonds or securities 
          of the United States.''.

    [Sec. 116. There is appropriated to the Department of 
Justice a total of not more than $100,000 which shall be paid 
to the person or persons giving information which leads to the 
arrest and conviction for the bombing of the Senate Wing of the 
United States Capitol on November 7, 1983, to be paid with the 
written approval of the Attorney General. Any officer or 
employee of the United States or any State or local government 
who furnishes information or renders service in the performance 
of his official duties is ineligible for payment under this 
section.
    [Sec. 117. Notwithstanding any other provision of law, the 
ban on the use of United States Route 209 by commercial 
vehicular traffic established in Public Law 98-63 is extended 
until December 31, 1985: Provided, That up to 150 northbound 
and up to 150 southbound commercial vehicles per day serving 
businesses or persons in Orange County, New York are exempted 
from such ban: Provided further, That the exemption established 
herein is subject to reevaluation for safety by the five member 
United States Route 209 commission which shall make 
recommendations to the National Park Service for modification 
of such ban.
    [Sec. 118. (a)(1) Section 5723(a)(1) of title 5, United 
States Code, is amended--
          [(A) by inserting ``(A)'' after ``travel expenses'';
          [(B) by striking out ``manpower shortage or'' and 
        inserting in lieu thereof ``manpower shortage, (B)''; 
        and
          [(C) by inserting ``, or (B) of any person appointed 
        by the President, by and with the advice and consent of 
        the Senate, to a position the rate of pay for which is 
        equal to or higher than the minimum rate of pay 
        prescribed for GS-16'' after ``Senior Executive 
        Service''.
    [(2) Sections 5724(a)(2) and 5726(b) of title 5, United 
States Code, are each amended by striking out ``11,000'' and 
inserting in lieu thereof ``18,000''.
    [(3) Section 5724(b)(1) of title 5, United States Code, is 
amended by striking out ``not in excess of 20 cents a mile''.
    [(4) Section 5724 of title 5, United States Code, is 
amended by adding at the end thereof the following new 
subsection:
    [``(j) The regulations prescribed under this section shall 
provide that the reassignment or transfer of any employee, for 
permanent duty, from one official station or agency to another 
which is outside the employee's commuting area shall take 
effect only after the employee has been given advance notice 
for a reasonable period. Emergency circumstances shall be taken 
into account in determining whether the period of advance 
notice is reasonable.''.
    [(5) Section 5724a(a)(3) of title 5, United States Code, is 
amended--
          [(A) in the first sentence thereof, by striking out 
        ``30 days'' and inserting in lieu thereof ``60 days''; 
        and
          [(B) by striking out the second and fourth sentences 
        thereof and inserting after the first sentence the 
        following: ``The period of residence in temporary 
        quarters may be extended for an additional 60 days if 
        the head of the agency concerned or his designee 
        determines that there are compelling reasons for the 
        continued occupancy of temporary quarters.''.
    [(6) Section 5724a(a)(4) of title 5, United States Code, is 
amended--
          [(A) by inserting ``(A)'' after ``(4)''; and
          [(B) by adding at the end thereof the following new 
        subparagraph:
          [``(B)(i) In connection with the sale of the 
        residence of the old official station, reimbursement 
        under this paragraph shall not exceed 10 percent of the 
        sale price or $15,000, whichever is the lesser amount.
          [``(ii) In connection with the purchase of a 
        residence at the new official station, reimbursement 
        under this paragraph shall not exceed 5 percent of the 
        purchase price or $7,500, whichever is the lesser 
        amount.
          [``(iii) Effective October 1 of each year, the 
        respective maximum dollar amounts applicable under 
        clauses (i) and (ii) shall be increased by the percent 
        change, if any, in the Consumer Price Index published 
        for December of the preceding year over that published 
        for December of the second preceding year, adjusted to 
        the nearest one-tenth of 1 percent. For the purpose of 
        this clause, `Consumer Price Index' means the Consumer 
        Price Index for All Urban Consumers, United States City 
        Average, Housing Component (1967=100), prepared by the 
        Bureau of Labor Statistics, Department of Labor.''.
    [(7)(A)(i) Subchapter II of chapter 57 of title 5, United 
States Code, is amended by adding after section 5724a the 
following new sections:

[``Sec. 5724b. Taxes on reimbursements for travel, transportation, and 
                    relocation expenses of employees transferred

    [``(a) Under such regulations as the President may 
prescribe and to the extent considered necessary and 
appropriate, as provided therein, appropriations or other funds 
available to an agency for administrative expenses are 
available for the reimbursement of all or part of the Federal, 
State, and city income taxes incurred by an employee, or by an 
employee and such employee's spouse (if filing jointly), for 
any moving or storage expenses furnished in kind, or for which 
reimbursement or an allowance is provided (but only to the 
extent of the expenses paid or incurred). Reimbursements under 
this subsection shall also include an amount equal to all 
income taxes for which the employee, or the employee and 
spouse, as the case may be, would be liable due to the 
reimbursement for the taxes referred to in the first sentence 
of this subsection.
    [``(b) For the purpose of this section, `moving or storage 
expenses' means travel and transportation expenses (including 
storage of household goods and personal effects under section 
5724 of this title) and other relocation expenses under 
sections 5724a and 5726(c) of this title.

[``Sec. 5724c. Relocation services

    [``Each agency is authorized to enter into contracts to 
provide relocation services to agencies and employees for the 
purpose of carrying out the provisions of this subchapter. Such 
services include but need not be limited to arranging for the 
purchase of a transferred employee's residence.''.
    [(ii) The chapter analysis at the beginning of chapter 57 
of title 5, United States Code, is amended by inserting after 
the item relating to section 5724a the following new items:

[``5724b. Taxes on reimbursements for travel, transportation, and 
          relocation expenses of employees transferred.
[``5724c. Relocation services.''.

    [(B) Section 5724(i) of title 5, United States Code, is 
amended by striking out ``5724a'' and inserting in lieu thereof 
``5724a, 5724b,''.
    [(b) The amendments made by subsection (a) shall be carried 
out by agencies by the use of funds appropriated or otherwise 
available for the administrative expenses of each of such 
respective agencies. The amendments made by such subsection do 
not authorize the appropriation of funds in amounts exceeding 
the sums already authorized to be appropriated for such 
agencies.
    [(c)(1) The amendments made by subsection (a) shall take 
effect on the date of the enactment of this joint resolution.
    [(2) Not later than thirty days after the date of the 
enactment of this joint resolution, the President shall 
prescribe the regulations required under the amendments made by 
subsection (a). Such regulations shall take effect as of such 
date of enactment.
    [Sec. 119. (a) Notwithstanding any other provision of this 
joint resolution, the project for navigation at Eastport 
Harbor, Maine, authorized by section 101 of the River and 
Harbor Act of 1960 (74 Stat. 480), is not authorized after the 
date of enactment of this joint resolution.
    [(b) The Secretary of the Army shall transfer without 
consideration to the city of Eastport, Maine, title to any 
facilities and improvements constructed by the United States as 
part of the project described in subsection (a) of this 
section. Such transfer shall be made as soon as practicable 
after the date of enactment of this joint resolution. Nothing 
in this section shall require the conveyance of any interest in 
land underlying such project title to which is held by the 
State of Maine.
    [Sec. 121. Funds appropriated or otherwise made available 
for fiscal year 1984 pursuant to section 101(e) of this joint 
resolution or the enactment into law of H.R. 3222 shall be 
available notwithstanding section 15(a) of the State Department 
Basic Authorities Act of 1956 and section 701 of the United 
States Information and Exchange Act of 1948, as amended, until 
November 18, 1983.
    [Sec. 123. Section 5132(a)(1) of title 31, United States 
Code, is amended by inserting after the second sentence thereof 
the following: ``The Secretary shall annually sell to the 
public, directly and by mail, sets of uncirculated and proof 
coins, and shall solicit such sales through the use of the 
customer list of the Bureau of the Mint.''.
    [Sec. 125. Notwithstanding any other provision of this 
joint resolution, there are hereby appropriated $165,000 for 
the Joint Study Panel on the Social Security Administration for 
purposes of carrying out the study required by section 338 of 
the Social Security Amendments of 1983, to remain available 
until September 30, 1984.
    [Sec. 126. For payments to defray the costs of training and 
provision of incentives to employers to hire and train certain 
wartime veterans who have been unemployed for long periods of 
time as authorized by law (the Emergency Veterans' Job Training 
Act of 1983, Public Law 98-77), $75,000,000, to remain 
available until September 30, 1986: Provided, That not more 
than $25,000,000 of the amount appropriated shall be available 
for transfer to the ``Readjustment benefits'' appropriation for 
educational assistance payments under the provisions of section 
18 of Public Law 98-77. Any unused portion of the amount so 
transferred may be returned to this appropriation at any time, 
but not later than December 31, 1984.
    [Sec. 127. The paragraph under the heading ``Housing 
Programs, Annual Contributions for Assisted Housing'' in the 
Department of Housing and Urban Development-Independent 
Agencies Appropriation Act, 1984 (Public Law 98-45, 97 Stat. 
219, 220), is amended by striking out the period at the end 
thereof and inserting a colon in lieu thereof and the 
following: ``Provided further, That $6,000,000 of contract 
authority and $30,000,000 of budget authority provided in or 
subject to the fourth proviso of this paragraph are approved 
for use to extend annual contributions contracts in accordance 
with section 504 of the Housing and Urban Development Act of 
1970, as amended by section 6 of Public Law 98-35 (97 Stat. 
197, 198-199): Provided further, That upon enactment of this 
joint resolution, $2,217,150,000 of budget authority shall be 
used only for the section 8 existing housing program (42 U.S.C. 
1437f), $540,000,000 of budget authority shall be used only for 
the section 8 moderate rehabilitation program (42 U.S.C. 
1437f), and $900,000,000 of budget authority shall be used only 
for the development or acquisition costs of public housing 
other than for Indian families: Provided further, That if no 
authorization Act for fiscal year 1984 for the assisted housing 
programs of the Department of Housing and Urban Development is 
enacted before January 1, 1984, then the amount of budget 
authority to be used only for the section 8 existing housing 
program is increased to $3,922,650,000 as of January 1, 1984, 
the amount of contracts for annual contributions as provided 
under this heading in Public Law 98-45 is hereby increased by 
$23,551,393, and the $1,500,000,000 of budget authority 
deferred until January 1, 1984 in the second proviso under this 
heading in Public Law 98-45, shall, on January 1, 1984, be 
added to and merged with budget authority which is subject to 
the fourth proviso under such heading: Provided further, That 
if an authorization Act for fiscal year 1984 for the assisted 
housing programs of the Department of Housing and Urban 
Development is enacted before January 1, 1984 then the 
paragraph under this heading and the amendments provided in 
this joint resolution are modified as follows: (1) the 
$1,500,000,000 of budget authority otherwise deferred until 
January 1, 1984 in the second proviso under this heading in 
Public Law 98-45 shall not become available until March 31, 
1984, and at such time shall be added to and merged with budget 
authority which is subject to the fourth proviso under such 
heading; (2) the amount of budget authority that shall only be 
used for the section 8 existing housing program (42 U.S.C. 
1437f) would be $2,217,150,000; and (3) the $23,551,393 of 
additional contract authority in the previous proviso would not 
become available for contracts for annual contributions under 
section 5 of the United States Housing Act of 1937 (42 U.S.C. 
1437c).''
    [Sec. 129. No funds made available by this joint resolution 
or any other Act may be expended by the General Services 
Administration to sell, dispose, transfer, donate, or lease the 
real property and improvements known as the Hickam Air Force 
Base Administrative Annex (identified by the General Services 
Administration control number 9-D-HI-477-B) unless such sale, 
disposal, transfer, donation, or lease is to the State of 
Hawaii or any agency thereof for use for airport development 
purposes.
    [Sec. 130. Notwithstanding any other provision of law, 
$1,000,000 of the unobligated funds as of September 30, 1983 
from the appropriation for closeout activities of the Community 
Services Administration shall remain available through 
September 30, 1988.
    [Sec. 131. Notwithstanding any other provision of this 
joint resolution $2,650,000 is appropriated for the repair of 
the Pension Building in Washington, D.C.
    [Sec. 134. Upon application, prior to January 1, 1984, by a 
subsidized United States-flag liner company holding a written 
option to purchase foreign-built liner vessels executed prior 
to November 16, 1983, the Secretary of Transportation shall 
permit the acquisition of no more than 4 existing foreign-built 
vessels for operation under United States flag, and shall 
require conversion of two such vessels in a United States 
shipyard. Upon application prior to June 1, 1984, by a 
subsidized United States-flag liner company which has taken 
delivery from United States shipyards of new United States, 
these vessels shall be deemed to have been United States-built 
liner vessels that were introduced into subsidized service 
within two years preceding the date of enactment of this joint 
resolution, the Secretary of Transportation shall permit the 
acquisition of no more than two existing foreign-built vessels 
for operation under United States flag, and shall require 
conversion of one such ship in a United States shipyard. Upon 
acquisition and documentation under the laws of the United 
States, these vessels shall be deemed to have been United 
States-built for purposes of title VI, except section 607, of 
the Merchant Marine Act, 1936, as amended, section 901(b) of 
said Act, and chapter 37 of title 46, United States Code.
    [Sec. 135. Notwithstanding any other provision of this 
joint resolution, the project for navigation, San Francisco 
Harbor, California--Fisherman's Wharf Area--is hereby 
authorized to be prosecuted by the Secretary of the Army 
substantially in accordance with the plans and subject to the 
conditions recommended in the report of the Chief of Engineers 
dated February 3, 1978, as amended by the supplemental report 
of the Chief of Engineers dated June 7, 1979. Within available 
funds, the Corps of Engineers should proceed with the 
construction of the project.
    [Sec. 137. No funds in this or any other Act shall be used 
to process or grant oil and gas lease applications on any 
Federal lands outside of Alaska that are in units of the 
National Wildlife Refuge System, except where there are valid 
existing rights or except where it is determined that any of 
the lands are subject to drainage as defined in 43 CFR 3100.2, 
unless and until the Secretary of the Interior first 
promulgates, pursuant to section 553 of the Administrative 
Procedure Act, revisions to his existing regulations so as to 
explicitly authorize the leasing of such lands, holds a public 
hearing with respect to such revisions, and prepares an 
environmental impact statement with respect thereto.
    [Sec. 139. Notwithstanding any other provision of this 
joint resolution, there is hereby appropriated $9,000,000 from 
the Federal Buildings Fund, for design of a Federal Building-
United States Courthouse in Newark, New Jersey, and $550,000 
from the Federal Buildings Fund, for design necessary for 
repair of the Customhouse-United States Courthouse in St. 
Louis, Missouri.
    [Sec. 140. Section 101(d) of Public Law 98-107 is hereby 
amended to read as follows:
    [``(d) Such amounts as may be necessary for continuing the 
activities, not otherwise specifically provided for in this 
joint resolution, which were provided for in H.R. 4139, the 
Treasury, Postal Service and General Government Appropriation 
Act, 1984, as passed the House of Representatives on October 
27, 1983, at a rate for operations and to the extent and in the 
manner provided for in such Act.''.
    [Approved November 14, 1983.]
                              ----------                              


   THE INTERNATIONAL SECURITY AND DEVELOPMENT COOPERATION ACT OF 1985

                           (Public law 99-83)

    [Savings Provision.--Except as otherwise provided in this 
Act, the repeal by this Act of any provision of law that 
amended or repealed another provision of law does not affect in 
any way that amendment or appeal.]
          * * * * * * *

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

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

      [TITLE I--MILITARY ASSISTANCE AND SALES AND RELATED PROGRAMS

[SEC. 101. FOREIGN MILITARY SALES CREDITS.

    [(a) Authorizations of Appropriations.--The first sentence 
of section 31(a) of the Arms Export Control Act is amended to 
read as follows: ``There are authorized to be appropriated to 
the President to carry out this Act $5,371,000,000 for fiscal 
year 1986 and $5,371,000,000 for fiscal year 1987.''.
    [(b) Aggregate Ceilings and Extended Repayment Terms.--
Sections 31 (b) and (c) of such Act are amended to read as 
follows:
    [``(b)(1) The total amount of credits extended under 
section 23 of this Act shall not exceed $5,371,000,000 for 
fiscal year 1986 and $5,371,000,000 for fiscal year 1987.
    [``(2) Of the aggregate amount of financing provided under 
this section, not more than $553,900,000 for fiscal year 1986 
and not more than $553,900,000 for fiscal year 1987 may be made 
available at concessional rates of interest. If a country is 
released from its contractual liability to repay the United 
States Government with respect to financing provided under this 
section, such financing shall not be considered to be financing 
provided at concessional rates of interest for purposes of the 
limitation established by this paragraph
    [``(c) For fiscal year 1986 and fiscal year 1987, the 
principal amount of credits provided under section 23 at market 
rates of interest with respect to Greece, the Republic of 
Korea, the Philippines, Portugal, Spain, Thailand, and Turkey 
shall (if and to the extent each country so desires) be repaid 
in not more than twenty years, following a grace period of ten 
years on repayment of principal.''.
    [(c) FMS Financing for Israel.--(1) Of the total amount of 
credits extended under section 23 of the Arms Export Control 
Act, not less than $1,800,000,000 for fiscal year 1986 and not 
less than $1,800,000,000 for fiscal year 1987 shall be 
available only for Israel.
    [(2) Israel shall be released from its contractual 
liability to repay the United States Government with respect to 
the credits provided pursuant to paragraph (1).
    [(3) If the Government of Israel requests that funds be 
used for such purposes--
          [(A) up to $150,000,000 of the amount of credits made 
        available for Israel pursuant to paragraph (1) for each 
        of the fiscal years 1986 and 1987 shall be available 
        for research and development in the United States for 
        the Lavi program, and
          [(B) not less than $250,000,000 of the amount of 
        credits made available for Israel pursuant to paragraph 
        (1) for each of the fiscal years 1986 and 1987 shall be 
        available for the procurement in Israel of defense 
        articles and defense services (including research and 
        development) for the Lavi program.
    [(d) FMS Financing for Egypt.--(1) Of the total amount of 
credits extended under section 23 of the Arms Export Control 
Act, not less than $1,300,000,000 for fiscal year 1986 and not 
less than $1,300,000,000 for fiscal year 1987 shall be 
available only for Egypt.
    [(2) Egypt shall be released from its contractual liability 
to repay the United States Government with respect to the 
credits extended pursuant to paragraph (1).
    [(e) FMS Financing for Greece.--(1) Of the total amount of 
credits extended under section 23 of the Arms Export Control 
Act, $500,000,000 for each of the fiscal years 1986 and 1987 
shall be available only for Greece.
    [(2) For each of the fiscal years 1986 and 1987, of the 
total amount of credits extended for Greece under section 23 of 
the Arms Export Control Act, Greece shall receive the same 
proportion of credits extended at concessional rates of 
interest as the proportion of credits extended at concessional 
rates of interest which Turkey receives out of the total amount 
of credits extended for Turkey under that section, and the 
average annual rate of interest on the credits extended for 
Greece at concessional rates of interest shall be comparable to 
the average annual rate of interest on the credits extended for 
Turkey at concessional rates of interests. Credits extended for 
Greece for each of the fiscal years 1986 and 1987 at 
concessional rates of interest shall not be counted toward any 
ceiling established by law on concessional financing under the 
Arms Export Control Act.
    [(f) FMS Financing and MAP for Turkey.--For each of the 
fiscal years 1986 and 1987, the aggregate total of financing 
under the Arms Export Control Act and assistance under chapter 
2 of part II of the Foreign Assistance Act of 1961 provided for 
Turkey may not exceed $714,280,000. Of this amount, up to 
$215,000,000 may be used for assistance under chapter 2 of part 
II of the Foreign Assistance Act of 1961, with the 
understanding that the United States Government is acting with 
urgency and determination to oppose any actions aimed at 
effecting a permanent bifurcation of Cyprus.

[SEC. 102. TERMS OF FOREIGN MILITARY SALES CREDITS.

    [Section 23 of the Arms Export Control Act is amended to 
read as follows:
    [``Sec. 23. Credit Sales.--(a) The President is authorized 
to finance the procurement of defense articles, defense 
services, and design and construction services by friendly 
foreign countries and international organizations, on such 
terms and conditions as he may determine consistent with the 
requirements of this section.
    [``(b) The President shall require repayment in United 
States dollars within a period not to exceed twelve years after 
the loan agreement with the country or international 
organization is signed on behalf of the United States 
Government, unless a longer period is specifically authorized 
by statute for that country or international organization.
    [``(c)(1) The President shall charge interest under this 
section at such rate as he may determine, except that such rate 
may not be less than 5 percent per year.
    [``(2) For purposes of financing provided under this 
section--
          [``(A) the term `concessional rate of interest' means 
        any rate of interest which is less than market rates of 
        interest; and
          [``(B) the term `market rate of interest' means any 
        rate of interest which is equal to or greater than the 
        current average interest rate (as of the last day of 
        the month preceding the financing of the procurement 
        under this section) that the United States Government 
        pays on outstanding marketable obligations of 
        comparable maturity.
    [``(d) Reference in any law to credits extended under this 
section shall be deemed to include reference to participations 
in credits.''.

[SEC. 103. MILITARY ASSISTANCE.

    [Section 504(a)(1) of the Foreign Assistance Act of 1961 is 
amended to read as follows:
    [``(a)(1) There are authorized to be appropriated to the 
President to carry out the purposes of this chapter 
$805,100,000 for fiscal year 1986 and $805,100,000 for fiscal 
year 1987.''

[SEC. 104. INTERNATIONAL MILITARY EDUCATION AND TRAINING.

    [Section 542 of the Foreign Assistance Act of 1961 is 
amended to read as follows:
    [``Sec. 542. Authorizations of Appropriations.--There are 
authorized to be appropriated to the President to carry out the 
purposes of this chapter $56,221,000 for fiscal year 1986 and 
$56,221,000 for fiscal year 1987.''

[SEC. 105. PEACEKEEPING OPERATIONS.

    [(a) Authorizations.--Section 552(a) of the Foreign 
Assistance Act of 1961 is amended to read as follows:
    [``(a) There are authorized to be appropriated to the 
President to carry out the purposes of this chapter, in 
addition to amounts otherwise available for such purposes, 
$37,000,000 for fiscal year 1986 and $37,000,000 for fiscal 
year 1987.''.
    [(b) Peacekeeping Operations Emergencies.--(1) Section 552 
of such Act is amended--
          [(A) by inserting in subsection (c) ``(1)'' 
        immediately after the President may'';
          [(B) by inserting in subsection (c) immediately 
        before the period at the end of the subsection ``; and 
        (2) in the event the President also determines that 
        such unforeseen emergency requires the immediate 
        provision of assistance under this chapter, direct the 
        drawdown of commodities and services from the inventory 
        and resources of any agency of the United States 
        Government of an aggregate value not to exceed 
        $25,000,000 in any fiscal year''; and
          [(C) by inserting at the end thereof the following 
        new subsection:
    [``(d) There are authorized to be appropriated to the 
President such sums as may be necessary to reimburse the 
applicable appropriation, fund, or account for commodities and 
services provided under subsection (c)(2).''.
    [``(2) Section 652 of such Act is amended by inserting ``, 
552(c)(2),'' immediately after ``under section 506(a)''.

[SEC. 106. GUARANTY RESERVE FUND.

    [(a) Report on Replenishment.--For the purpose of providing 
recommendations for improving the security interests of the 
United States and the friends and allies of the United States, 
the President shall prepare and transmit to the Congress within 
90 days after the date of enactment of this Act a report which 
sets forth the history of United States foreign military sales 
financing under the Foreign Assistance Act of 1961 and the Arms 
Export Control Act. Such report shall include recommendations 
on replenishing the Guaranty Reserve Fund under section 24 of 
the Arms Export Control Act and recommendations on other 
matters agreed to in consultation with the chairman and ranking 
minority member of the Committee on Foreign Relations of the 
Senate and of the Committee on Foreign Affairs of the House of 
Representatives.
    [(b) Additional Funds for Payment of Claims.--The second 
sentence of section 24(c) of the Arms Export Control Act is 
amended to read as follows: ``Funds authorized to be 
appropriated by section 31(a) to carry out this Act which are 
allocated for credits at market rates of interest may be used 
to pay claims under such guarantees to the extent funds in the 
Guaranty Reserve Fund are inadequate for that purpose.''.
    [(c) Designation as Guaranty Reserve Fund.--Such section is 
further amended by inserting after the first sentence the 
following new sentence: ``That single reserve may, on and after 
the date of enactment of the International Security and 
Development Cooperation Act of 1985, be referred to as the 
`Guaranty Reserve Fund'.''.

[SEC. 107. VALUATION OF CERTAIN DEFENSE ARTICLES.

    [(a) Certain Naval Vessels.--Section 21(a) of the Arms 
Export Control Act is amended--
          [(1) by redesignating paragraphs (1), (2), and (3) as 
        subparagraphs (A), (B), and (C), respectively;
          [(2) by inserting ``(1)'' immediately after ``(a)''; 
        and
          [(3) by adding at the end thereof the following new 
        paragraph:
    [``(2) For purposes of subparagraph (A) of paragraph (1), 
the actual value of a naval vessel of 3,000 tons or less and 20 
years or more of age shall be considered to be not less than 
the greater of the scrap value or fair value (including 
conversion costs) of such vessel, as determined by the 
Secretary of Defense.''.
    [``(b) Conforming Amendment.--Section 47 of such Act is 
amended in paragraph (2) by inserting ``, except as otherwise 
provided in section 21(a),'' after ``excess defense article''.

[SEC. 108. FULL COSTING OF FMS SALES OF TRAINING.

    [(a) FMS Sales.--Section 21(a)(1)(C) of the Arms Export 
Control Act, as so redesignated by the preceding section of 
this Act, is amended to read as follows:
          [``(C) in the case of the sale of a defense service, 
        the full cost to the United States Government of 
        furnishing such service, except that in the case of 
        training sold to a purchaser who is concurrently 
        receiving assistance under chapter 5 of part II of the 
        Foreign Assistance Act of 1961, only those additional 
        costs that are incurred by the United States Government 
        in furnishing such assistance.''.
    [(b) NATO Standardization Agreements.--Section 21 of such 
Act is amended by inserting the following new subsection after 
subsection (f):
    [``(g) The President may enter into North Atlantic Treaty 
Organization standardization agreements in carrying out section 
814 of the Act of October 7, 1975 (Public Law 94-106), and may 
enter into similar agreements with Japan, Australia, and New 
Zealand, for the cooperative furnishing of training on 
bilateral or multilateral basis, if the financial principles of 
such agreements are based on reciprocity. Such agreements shall 
include reimbursement for all direct costs but may exclude 
reimbursement for indirect costs, administrative surcharges, 
and costs of billeting of trainees (except to the extent that 
members of the United States Armed Forces occupying comparable 
accommodations are charged for such accommodations by the 
United States). Each such agreement shall be transmitted 
promptly to the Speaker of the House of Representatives and the 
Committees on Appropriations, Armed Services, and Foreign 
Relations of the Senate.''.

[SEC. 109. ADMINISTRATIVE SURCHARGE.

    [Subparagraph (A) of section 21(e)(1) of the Arms Export 
Control Act is amended by inserting ``(excluding a pro rata 
share of fixed base operation costs)'' immediately after ``full 
estimated costs''.

[SEC. 110. CONTRACT ADMINISTRATION SERVICES.

    [Section 21(h) of the Arms Export Control Act is amended by 
inserting ``contract administration services,'' immediately 
after ``inspection,'' in the text preceding paragraph (1).

[SEC. 111. CATALOG DATA AND SERVICES.

    [Section 21(h) of the Arms Export Control Act is further 
amended--
          [(1) by inserting ``(1)'' immediately after ``(h)'';
          [(2) by striking out ``(1)'' and ``(2)'' and 
        inserting in lieu thereof ``(A)'' and ``(B)'', 
        respectively; and
          [(3) by adding at the end thereof the following:
    [``(2) In carrying out the objectives of this section, the 
President is authorized to provide cataloging data and 
cataloging services, without charge, to the North Atlantic 
Treaty Organization or to any member government of that 
Organization if that Organization or member government provides 
such data and services in accordance with an agreement on a 
reciprocal basis, without charge, to the United States 
Government.''.
[SEC. 112. REPORTS ON CASH FLOW FINANCING.

    [(a) Annual Reports.--Section 25 of the Arms Export Control 
Act is amended in paragraph (5) of subsection (a)--
          [(1) by inserting ``(A)'' immediately after ``(5)'';
          [(2) by adding ``and'' after the semicolon at the end 
        of paragraph; and
          [(3) by adding at the end of the paragraph the 
        following new subparagraph:
          [``(B) for each country that is proposed to be 
        furnished credits or guaranties under this Act in the 
        next fiscal year and that has been approved for cash 
        flow financing (as defined in subsection (d) of this 
        section) in excess of $100,000,000 as of October 1 of 
        the current fiscal year--
                  [``(i) the amount of such approved cash flow 
                financing,
                  [``(ii) a description of administrative 
                ceilings and controls applied, and
                  [``(iii) a description of the financial 
                resources otherwise available to such country 
                to pay such approved cash flow f