[DOCID: f:hr094.105]
From the House Reports Online via GPO Access
[wais.access.gpo.gov]
105th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 105-94
_______________________________________________________________________
FOREIGN POLICY REFORM ACT
_______
May 9, 1997.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Gilman, from the Committee on International Relations, submitted
the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 1486]
The Committee on International Relations, to whom was
referred the bill (H.R. 1486) to consolidate international
affairs agencies, to reform foreign assistance programs, to
authorize appropriations for foreign assistance programs and
for the Department of State and related agencies for fiscal
years 1998 and 1999, and for other purposes, having considered
the same, report favorably thereon with an amendment and
recommend that the bill as amended do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Foreign Policy Reform Act''.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.
(a) Divisions.--This Act is organized into three divisions as
follows:
(1) Division A--International Affairs Agency Consolidation,
Foreign Assistance Reform, and Foreign Assistance
Authorizations.
(2) Division B--Foreign Relations Authorizations.
(3) Division C--Funding Levels.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
DIVISION A--INTERNATIONAL AFFAIRS AGENCY CONSOLIDATION, FOREIGN
ASSISTANCE REFORM, AND FOREIGN ASSISTANCE AUTHORIZATIONS
TITLE I--GENERAL PROVISIONS
Sec. 101. Short title.
Sec. 102. Declaration of policy.
TITLE II--CONSOLIDATION OF CERTAIN INTERNATIONAL AFFAIRS AGENCIES
Chapter 1--General Provisions
Sec. 201. Short title
Sec. 202. Definitions.
Chapter 2--United States International Development Cooperation Agency
SUBCHAPTER A--ABOLITION OF UNITED STATES INTERNATIONAL DEVELOPMENT
COOPERATION AGENCY AND TRANSFER OF FUNCTIONS TO UNITED STATES AGENCY FOR
INTERNATIONAL DEVELOPMENT
Sec. 211. Abolition of United States International Development
Cooperation Agency.
Sec. 212. Transfer of functions to United States Agency for
International Development.
Sec. 213. Transition provisions.
SUBCHAPTER B--CONTINUATION OF UNITED STATES AGENCY FOR INTERNATIONAL
DEVELOPMENT AND PLACEMENT OF ADMINISTRATOR OF AGENCY UNDER THE DIRECTION
OF THE SECRETARY OF STATE
Sec. 221. Continuation of United States Agency for International
Development and placement of Administrator of Agency under the
direction of the Secretary of State.
SUBCHAPTER C--CONFORMING AMENDMENTS
Sec. 231. Conforming amendments.
Sec. 232. Other references.
Sec. 233. Effective date.
TITLE III--FOREIGN ASSISTANCE REFORM
Sec. 301. Graduation from development assistance.
Sec. 302. Limitation on government-to-government assistance.
Sec. 303. Micro- and small enterprise development credits.
Sec. 304. Microenterprise development grant assistance.
Sec. 305. Private sector enterprise funds.
Sec. 306. Development credit authority.
Sec. 307. Foreign government parking fines.
Sec. 308. Withholding United States assistance to countries that aid
the Government of Cuba.
TITLE IV--DEFENSE AND SECURITY ASSISTANCE
Chapter 1--Narcotics Control Assistance
Sec. 401. Definition.
Sec. 402. Authorization of appropriations.
Sec. 403. Authority to withhold bilateral assistance and oppose
multilateral development assistance for major illicit drug producing
countries, drug-transit countries, and money laundering countries.
Chapter 2--Nonproliferation, antiterrorism, demining, and related
programs
Sec. 411. Nonproliferation, antiterrorism, demining, and related
programs.
Chapter 3--Foreign Military Financing Program
Sec. 421. Authorization of appropriations.
Sec. 422. Assistance for Israel.
Sec. 423. Assistance for Egypt.
Sec. 424. Authorization of assistance to facilitate transition to NATO
membership under NATO Participation Act of 1994.
Sec. 425. Loans for Greece and Turkey.
Sec. 426. Limitations on loans.
Sec. 427. Administrative expenses.
Chapter 4--International Military Education and Training
Sec. 431. Authorization of appropriations.
Sec. 432. IMET eligibility for Panama and Haiti.
Chapter 5--Transfer Of Naval Vessels to Certain Foreign Countries
Sec. 441. Authority to transfer naval vessels.
Sec. 442. Costs of transfers.
Sec. 443. Expiration of authority.
Sec. 444. Repair and refurbishment of vessels in United States
shipyards.
Chapter 6--Indonesia Military Assistance Accountability Act
Sec. 451. Short title.
Sec. 452. Findings.
Sec. 453. Limitation on military assistance to the Government of
Indonesia.
Sec. 454. United States military assistance and arms transfers defined.
Chapter 7--Other Provisions
Sec. 461. Excess defense articles for certain European countries.
Sec. 462. Transfer of certain obsolete or surplus defense articles in
the war reserve allies stockpile to the Republic of Korea.
Sec. 463. Additional requirements relating to stockpiling of defense
articles for foreign countries.
Sec. 464. Delivery of drawdown by commercial transportation services.
Sec. 465. Cash Flow Financing Notification.
Sec. 466. Multinational arms sales code of conduct.
TITLE V--ECONOMIC ASSISTANCE
Chapter 1--Economic Support Assistance
Sec. 501. Economic support fund.
Sec. 502. Assistance for Israel.
Sec. 503. Assistance for Egypt.
Sec. 504. International Fund for Ireland.
Sec. 505. Assistance for training of civilian personnel of the Ministry
of Defense of the Government of Nicaragua.
Sec. 506. Availability of amounts for Cuban Liberty and Democratic
Solidarity (LIBERTAD) Act of 1996 and the Cuban Democracy Act of 1992.
Chapter 2--Development Assistance
SUBCHAPTER A--DEVELOPMENT ASSISTANCE AUTHORITIES
Sec. 511. Authorization of appropriations.
Sec. 512. Child survival activities.
Sec. 513. Requirement on assistance for Russian Federation.
Sec. 514. Humanitarian assistance for Armenia and Azerbaijan.
Sec. 515. Agricultural development and research assistance.
Sec. 516. Activities and programs in Latin America and the Caribbean
region and the Asia and the Pacific region.
Sec. 517. Support for agricultural development assistance.
SUBCHAPTER B--OPERATING EXPENSES
Sec. 521. Operating expenses generally.
Sec. 522. Operating expenses of the Office of the Inspector General.
Chapter 3--Urban And Environmental Credit Program
Sec. 531. Urban and environmental credit program.
Chapter 4--The Peace Corps
Sec. 541. Authorization of appropriations.
Sec. 542. Activities of the Peace Corps in the former Soviet Union and
Mongolia.
Sec. 543. Amendments to the Peace Corps Act.
Chapter 5--International Disaster Assistance
Sec. 551. Authority to provide reconstruction assistance.
Sec. 552. Authorizations of appropriations.
Chapter 6--Debt Relief
Sec. 561. Debt restructuring for foreign assistance.
Sec. 562. Debt buybacks or sales for debt swaps.
Chapter 7--Other Assistance Provisions
Sec. 571. Exemption from restrictions on assistance through
nongovernmental organizations.
Sec. 572. Funding requirements relating to United States private and
voluntary organizations.
Sec. 573. Documentation requested of private and voluntary
organizations.
Sec. 574. Encouragement of free enterprise and private participation.
Sec. 575. Sense of the Congress relating to United States cooperatives
and credit unions.
Sec. 576. Food assistance to the Democratic People's Republic of Korea.
Sec. 577. Withholding of assistance to countries that provide nuclear
fuel to Cuba.
TITLE VI--TRADE AND DEVELOPMENT AGENCY
Sec. 601. Authorization of appropriations.
TITLE VII--SPECIAL AUTHORITIES AND OTHER PROVISIONS
Chapter 1--Special Authorities
Sec. 701. Enhanced transfer authority.
Sec. 702. Authority to meet unanticipated contingencies.
Sec. 703. Special waiver authority.
Sec. 704. Termination of assistance.
Sec. 705. Local assistance to human rights groups in Cuba.
Chapter 2--Repeals
Sec. 711. Repeal of obsolete provisions.
DIVISION B--FOREIGN RELATIONS AUTHORIZATIONS ACT
TITLE X--GENERAL PROVISIONS
Sec. 1001. Short title.
Sec. 1002. Statement of history of legislation.
Sec. 1003. Definitions.
TITLE XI--AUTHORIZATION OF APPROPRIATIONS FOR DEPARTMENT OF STATE AND
CERTAIN INTERNATIONAL AFFAIRS FUNCTIONS AND ACTIVITIES
Sec. 1101. Administration of Foreign Affairs.
Sec. 1102. International organizations, programs, and conferences.
Sec. 1103. International commissions.
Sec. 1104. Migration and refugee assistance.
Sec. 1105. Asia Foundation.
Sec. 1106. United States informational, educational, and cultural
programs.
Sec. 1107. United States arms control and disarmament.
TITLE XII--DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES
Chapter 1--Authorities And Activities
Sec. 1201. Revision of Department of State rewards program.
Sec. 1202. Foreign Service National Separation Liability Trust Fund.
Sec. 1203. Capital Investment Fund.
Sec. 1204. International Center reserve funds.
Sec. 1205. Proceeds of sale of foreign properties.
Sec. 1206. Reduction of reporting.
Sec. 1207. Contracting for local guards services overseas.
Sec. 1208. Preadjudication of claims.
Sec. 1209. Expenses relating to certain international claims and
proceedings.
Sec. 1210. Establishment of fee account and providing for passport
information services.
Sec. 1211. Establishment of machine readable fee account.
Sec. 1212. Retention of additional defense trade controls registration
fees.
Sec. 1213. Training.
Sec. 1214. Recovery of costs of health care services.
Sec. 1215. Fee for use of diplomatic reception rooms.
Sec. 1216. Fees for commercial services.
Sec. 1217. Budget presentation documents.
Sec. 1218. Extension of certain adjudication provisions.
Sec. 1219. Grants to overseas educational facilities.
Sec. 1220. Grants to remedy international child abductions.
Chapter 2--Consular Authorities of the Department of State
Sec. 1241. Use of certain passport processing fees for enhanced
passport services.
Sec. 1242. Consular officers.
Sec. 1243. Repeal of outdated consular receipt requirements.
Sec. 1244. Elimination of duplicate publication requirements.
Chapter 3--Refugees And Migration
Sec. 1261. Report to Congress concerning Cuban emigration policies.
Sec. 1262. Reprogramming of migration and refugee assistance funds.
TITLE XIII--ORGANIZATION OF THE DEPARTMENT OF STATE; DEPARTMENT OF
STATE PERSONNEL; THE FOREIGN SERVICE
Chapter 1--Organization Of the Department of State
Sec. 1301. Coordinator for counterterrorism.
Sec. 1302. Elimination of statutory establishment of certain positions
of the Department of State.
Sec. 1303. Establishment of Assistant Secretary of State for Human
Resources.
Sec. 1304. Establishment of Assistant Secretary of State for Diplomatic
Security.
Sec. 1305. Special envoy for Tibet.
Sec. 1306. Responsibilities for bureau charged with refugee assistance.
Chapter 2--Personnel of the Department of State; the Foreign Service
Sec. 1321. Authorized strength of the Foreign Service.
Sec. 1322. Nonovertime differential pay.
Sec. 1323. Authority of Secretary to separate convicted felons from
service.
Sec. 1324. Career counseling.
Sec. 1325. Report concerning minorities and the Foreign Service.
Sec. 1326. Retirement benefits for involuntary separation.
Sec. 1327. Availability pay for certain criminal investigators within
the diplomatic security service.
Sec. 1328. Labor management relations.
Sec. 1329. Office of the Inspector General.
TITLE XIV--UNITED STATES PUBLIC DIPLOMACY: AUTHORITIES AND ACTIVITIES
FOR UNITED STATES INFORMATIONAL, EDUCATIONAL, AND CULTURAL PROGRAMS
Sec. 1401. Extension of au pair programs.
Sec. 1402. Retention of interest.
Sec. 1403. Center for Cultural and Technical Interchange Between North
and South.
Sec. 1404. Use of selected program fees.
Sec. 1405. Muskie fellowship program.
Sec. 1406. Working group on United States Government sponsored
international exchanges and training.
Sec. 1407. Educational and cultural exchanges and scholarships for
Tibetans and Burmese.
Sec. 1408. United States-Japan commission.
Sec. 1409. Surrogate broadcasting studies.
Sec. 1410. Authority to administer summer travel/work programs.
Sec. 1411. Permanent administrative authorities regarding
appropriations.
Sec. 1412. Authorities of the broadcasting board of governors.
TITLE XV--INTERNATIONAL ORGANIZATIONS; UNITED NATIONS AND RELATED
AGENCIES
Chapter 1--General Provisions
Sec. 1501. Service in international organizations.
Sec. 1502. Organization of American States.
Chapter 2--United Nations and Related Agencies
Sec. 1521. Reform in budget decisionmaking procedures of the United
Nations and its specialized agencies.
Sec. 1522. Reports on efforts to promote full equality at the United
Nations for Israel.
Sec. 1523. United Nations Population Fund.
Sec. 1524. Continued extension of privileges, exemptions, and
immunities of the International Organizations Immunities Act to UNIDO.
TITLE XVI--ARMS CONTROL AND DISARMAMENT AGENCY
Sec. 1601. Comprehensive compilation of arms control and disarmament
studies.
Sec. 1602. Use of funds.
TITLE XVII--FOREIGN POLICY PROVISIONS
Sec. 1701. United States policy regarding the involuntary return of
refugees.
Sec. 1702. United States policy with respect to the involuntary return
of persons in danger of subjection to torture.
Sec. 1703. Reports on claims by United States firms against the
Government of Saudi Arabia.
Sec. 1704. Human rights reports.
Sec. 1705. Reports on determinations under title IV of the Libertad
Act.
Sec. 1706. Reports and policy concerning diplomatic immunity.
Sec. 1707. Congressional statement with respect to efficiency in the
conduct of foreign policy.
Sec. 1708. Congressional statement concerning Radio Free Europe/Radio
Liberty.
Sec. 1709. Programs or projects of the International Atomic Energy
Agency in Cuba.
Sec. 1710. United States policy with respect to Jerusalem as the
capital of Israel.
Sec. 1711. Report on compliance with the Hague Convention on
International Child Abduction.
Sec. 1712. Sense of Congress relating to recognition of the ecumenical
patriarchate by the government of Turkey.
Sec. 1713. Return of Hong Kong to People's Republic of China.
Sec. 1714. Development of democracy in the Republic of Serbia.
Sec. 1715. Relations with Vietnam.
Sec. 1716. Statement concerning return of or compensation for wrongly
confiscated foreign properties.
DIVISION C--FUNDING LEVELS
Sec. 2001. Authorization of appropriations for certain programs.
DIVISION A--INTERNATIONAL AFFAIRS AGENCY CONSOLIDATION, FOREIGN
ASSISTANCE REFORM, AND FOREIGN ASSISTANCE AUTHORIZATIONS
TITLE I--GENERAL PROVISIONS
SEC. 101. SHORT TITLE.
This division may be cited as the ``Foreign Assistance Reform Act of
1997''.
SEC. 102. DECLARATION OF POLICY.
The Congress declares the following:
(1) United States leadership overseas must be maintained to
support America's vital national security, economic, and
humanitarian overseas interests.
(2) As part of this leadership, United States foreign
assistance programs are essential to support America's overseas
interests.
(3) Following the end of the Cold War, foreign assistance
programs must be reformed to take advantage of the
opportunities for the United States in the 21st century.
TITLE II--CONSOLIDATION OF CERTAIN INTERNATIONAL AFFAIRS AGENCIES
CHAPTER 1--GENERAL PROVISIONS
SEC. 201. SHORT TITLE
This title may be cited as the ``International Affairs Agency
Consolidation Act of 1997''.
SEC. 202. DEFINITIONS.
The following terms have the following meanings for the purposes of
this title:
(1) The term ``USAID'' means the United States Agency for
International Development.
(2) The term ``Federal agency'' has the meaning given to the
term ``agency'' by section 551(1) of title 5, United States
Code.
(3) The term ``function'' means any duty, obligation, power,
authority, responsibility, right, privilege, activity, or
program.
CHAPTER 2--UNITED STATES INTERNATIONAL DEVELOPMENT COOPERATION AGENCY
Subchapter A--Abolition of United States International Development
Cooperation Agency and Transfer of Functions to United States Agency
for International Development
SEC. 211. ABOLITION OF UNITED STATES INTERNATIONAL DEVELOPMENT
COOPERATION AGENCY.
(a) In General.--The United States International Development
Cooperation Agency is hereby abolished.
(b) Conforming Amendments.--The following shall cease to be
effective:
(1) Reorganization Plan Numbered 2 of 1979 (5 U.S.C. App.).
(2) Sections 1-101 through 1-103, sections 1-401 through 1-
403, and such other provisions that relate to the United States
International Development Cooperation Agency or the Director of
such Agency, of Executive Order 12163 (22 U.S.C. 2381 note;
relating to administration of foreign assistance and related
functions).
(3) The International Development Cooperation Agency
Delegation of Authority Numbered 1 (44 Fed. Reg. 57521), except
for section 1-6 of such Delegation of Authority.
(4) Section 3 of Executive Order 12884 (58 Fed. Reg. 64099;
relating to the delegation of functions under the Freedom for
Russia and Emerging Eurasian Democracies and Open Markets
Support Act of 1992, the Foreign Assistance Act of 1961, the
Foreign Operations, Export Financing and Related Programs
Appropriations Act, 1993, and section 301 of title 3, United
States Code).
(c) Effective Date.--This section shall take effect 6 months after
the date of the enactment of this Act.
SEC. 212. TRANSFER OF FUNCTIONS TO UNITED STATES AGENCY FOR
INTERNATIONAL DEVELOPMENT.
(a) In General.--There are transferred to the Administrator of the
United States Agency for International Development all functions of the
Director of United States International Development Cooperation Agency
and all functions of such Agency and any officer or component of such
agency under any statute, reorganization plan, Executive order, or
other provision of law before the effective date of this title.
(b) Effective Date.--This section shall take effect 6 months after
the date of the enactment of this Act.
SEC. 213. TRANSITION PROVISIONS.
(a) Transfer of Personnel, Property, Records, and Unexpended
Balances.--
(1) Personnel, property, and records.--So much of the
personnel, property, and records of the United States
International Development Cooperation Agency as the Director of
the Office of Management and Budget shall determine shall be
transferred to the United States Agency for International
Development at such time or times as the Director of the Office
of Management and Budget shall provide.
(2) Unexpended balances.--To the extent provided in advance
in appropriations Acts, so much of the unexpended balances of
appropriations, allocations, and other funds employed, used,
held, available, or to be made available to the United States
International Development Cooperation Agency as the Director of
the Office of Management and Budget shall determine shall be
transferred to the United States Agency for International
Development at such time or times as the Director of Office of
Management and Budget shall provide, except that no such
unexpended balances transferred shall be used for purposes
other than those for which the appropriation was originally
made.
(b) Terminating Agency Affairs.--The Director of the Office of
Management and Budget shall provide for terminating the affairs of the
United States International Development Cooperation Agency and for such
further measures and dispositions as such Director deems necessary to
accomplish the purposes of this subchapter.
Subchapter B--Continuation of United States Agency for International
Development and Placement of Administrator of Agency under the
Direction of the Secretary of State
SEC. 221. CONTINUATION OF UNITED STATES AGENCY FOR INTERNATIONAL
DEVELOPMENT AND PLACEMENT OF ADMINISTRATOR OF
AGENCY UNDER THE DIRECTION OF THE SECRETARY OF
STATE.
(a) Continuation of USAID as Federal Agency.--The United States
Agency for International Development, established in the Department of
State pursuant to the State Department Delegation of Authority Numbered
104 (26 Fed. Reg. 10608) and subsequently transferred to the United
States International Development Cooperation Agency pursuant to the
International Development Cooperation Agency Delegation of Authority
Numbered 1 (44 Fed. Reg. 57521), shall be continued in existence as a
Federal agency of the United States.
(b) Placement of Administrator of USAID Under Direction of Secretary
of State.--
(1) In general.--The Administrator of the United States
Agency for International Development, appointed pursuant to
section 624(a) of the Foreign Assistance Act of 1961 (22 U.S.C.
2384(a))--
(A) shall continue to head such Agency; and
(B) shall be under the direction of the Secretary of
State.
(2) Other requirements.--Except to the extent inconsistent
with other provisions of this Act, the Administrator--
(A) shall continue to exercise all functions that the
Administrator exercised before the effective date of
this Act; and
(B) shall exercise all functions transferred to the
Administrator pursuant to section 212.
(c) Other Officers of AID.--The other officers of the United States
Agency for International Development, appointed pursuant to section
624(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2384(a)), shall
continue to exercise such functions as the Administrator deems
appropriate.
Subchapter C--Conforming Amendments
SEC. 231. CONFORMING AMENDMENTS.
(a) Title 5, United States Code.--Section 7103(a)(2)(iv) of title 5,
United States Code, is amended by striking ``the United States
International Development Cooperation Agency'' and inserting ``the
United States Agency for International Development''.
(b) Inspector General Act of 1978.--Section 8A of the Inspector
General Act of 1978 (5 U.S.C. App. 8A) is amended--
(1) in subsection (a)--
(A) by striking paragraph (2);
(B) by striking ``Agency for International
Development--'' and all that follows through ``shall
supervise'' and inserting ``Agency for International
Development shall supervise''; and
(C) by striking ``; and'' at the end and inserting a
period;
(2) by striking subsection (c); and
(3) by striking subsection (f).
(c) International Security and Development Cooperation Act of 1980.--
Section 316 of the International Security and Development Cooperation
Act of 1980 (22 U.S.C. 2151 note) is amended--
(1) in subsection (a)--
(A) in the first sentence, by striking ``Director of
the United States International Development Cooperation
Agency'' and inserting ``Administrator of the United
States Agency for International Development''; and
(B) in the second sentence, by striking ``Director''
and inserting ``Administrator''; and
(2) in subsection (b), by striking ``Director'' and inserting
``Administrator''.
(d) State Department Basic Authorities Act of 1956.--(1) Section
25(f) of the State Department Basic Authorities Act of 1956 (22 U.S.C.
2697(f)) is amended by striking ``Director of the United States
International Development Cooperation Agency'' and inserting
``Administrator of the United States Agency for International
Development''.
(2) Section 26(b) of such Act (22 U.S.C. 2698(b)) is amended by
striking ``Director of the United States International Development
Cooperation Agency'' and inserting ``Administrator of the United States
Agency for International Development''.
(3) Section 32 of such Act (22 U.S.C. 2704) is amended in the second
sentence by striking ``Director of the United States International
Development Cooperation Agency'' and inserting ``Administrator of the
United States Agency for International Development''.
(e) Foreign Service Act of 1980.--(1) Section 202(a)(1) of the
Foreign Service Act of 1980 (22 U.S.C. 3922(a)(1)) is amended by
striking ``Director of the United States International Development
Cooperation Agency'' and inserting ``Administrator of the United States
Agency for International Development''.
(2) Section 210 of such Act (22 U.S.C. 3930) is amended in the second
sentence by striking ``United States International Development
Cooperation Agency'' and inserting ``United States Agency for
International Development''.
(3) Section 1003(a) of such Act (22 U.S.C. 4103(a)) is amended by
striking ``United States International Development Cooperation Agency''
and inserting ``United States Agency for International Development''.
(4) Section 1101(c) of such Act (22 U.S.C. 4131(c)) is amended by
striking ``United States International Development Cooperation Agency''
and inserting ``United States Agency for International Development''.
(f) Internal Revenue Code of 1986.--(1) Section 170(m)(7) of the
Internal Revenue Code of 1986, is amended by striking ``Director of the
United States International Development Cooperation Agency'' and
inserting ``Administrator of the United States Agency for International
Development''.
(2) Section 2055(g)(6) of the Internal Revenue Code of 1986, is
amended by striking ``Director of the United States International
Development Cooperation Agency'' and inserting ``Administrator of the
United States Agency for International Development''.
(g) Title 49, United States Code.--Section 40118(d) of title 49,
United States Code, is amended by striking ``Director of the United
States International Development Cooperation Agency'' and inserting
``Administrator of the United States Agency for International
Development''.
(h) Export Administration Act of 1979.--Section 6(g) of the Export
Administration Act of 1979 (50 U.S.C. App. 2405(g)) is amended--
(1) in the third sentence, by striking ``Director of the
United States International Development Cooperation Agency''
and inserting ``Administrator of the United States Agency for
International Development'';
(2) in the fourth sentence, by striking ``Director'' and
inserting ``Administrator''; and
(3) in the sixth sentence, by striking ``Director of the
United States International Development Cooperation Agency''
and inserting ``Administrator of the United States Agency for
International Development''.
SEC. 232. OTHER REFERENCES.
Any reference in any statute, reorganization plan, Executive order,
regulation, agreement, determination, or other official document or
proceeding to--
(1) the Director of the United States International
Development Cooperation Agency or any other officer or employee
of the United States International Development Cooperation
Agency shall be deemed to refer to the Administrator of the
United States Agency for International Development; and
(2) the United States International Development Cooperation
Agency shall be deemed to refer to the United States Agency for
International Development.
SEC. 233. EFFECTIVE DATE.
This subchapter shall take effect 6 months after the date of the
enactment of this Act.
TITLE III--FOREIGN ASSISTANCE REFORM
SEC. 301. GRADUATION FROM DEVELOPMENT ASSISTANCE.
Section 634 of the Foreign Assistance Act of 1961 (22 U.S.C. 2394) is
amended to read as follows:
``SEC. 634. CONGRESSIONAL PRESENTATION DOCUMENTS.
``(a) Requirement for Submission.--As part of the annual requests for
enactment of authorizations and appropriations for foreign assistance
programs for each fiscal year, the President shall prepare and transmit
to the Congress annual congressional presentation documents for the
programs authorized under this Act and the Arms Export Control Act (22
U.S.C. 2751 et seq.).
``(b) Materials To Be Included.--The documents submitted pursuant to
subsection (a) shall include--
``(1) the rationale and direct United States national
interest for the allocation of assistance or contributions to
each country, regional, or centrally-funded program, or
organization, as the case may be;
``(2) a description of how each such program or contribution
supports the objectives of this Act or the Arms Export Control
Act, as the case may be;
``(3) a description of planned country, regional, or
centrally-funded programs or contributions to international
organizations and programs for the coming fiscal year; and
``(4) for each country for which assistance is requested
under this Act or the Arms Export Control Act--
``(A) the total number of years since 1946 that the
United States has provided assistance;
``(B) the total amount of bilateral assistance
provided by the United States since 1946, including the
principal amount of all loans, credits, and guarantees;
and
``(C) the total amount of assistance provided to such
country from all multilateral organizations to which
the United States is a member, including all
international financial institutions, the United
Nations, and other international organizations.
``(c) Graduation From Development Assistance.--
``(1) Determination.--As part of the congressional
presentation documents transmitted to the Congress under this
section, the President shall make a separate determination for
each country identified in such documents for which bilateral
development assistance is requested, estimating the year in
which each such country will no longer be receiving bilateral
development assistance.
``(2) Development assistance defined.--For purposes of this
section, the term `development assistance' means assistance
under--
``(A) chapter 1 of part I of this Act;
``(B) chapter 10 of part I of this Act;
``(C) chapter 11 of part I of this Act; and
``(D) the Support for East European Democracy (SEED)
Act of 1989 (22 U.S.C. 5401 et seq.).''.
SEC. 302. LIMITATION ON GOVERNMENT-TO-GOVERNMENT ASSISTANCE.
(a) In General.--For each of the fiscal years 1998 and 1999, the
President should allocate an aggregate level to private and voluntary
organizations and cooperatives under the Foreign Assistance Act of 1961
(22 U.S.C. 2151 et seq.) which reflects an increasing level allocated
to such organizations and cooperatives under such Act since fiscal year
1995.
(b) Definition.--For purposes of this section, the term ``private and
voluntary organization'' means a private non-governmental organization
which--
(1) is organized under the laws of a country;
(2) receives funds from private sources;
(3) operates on a not-for-profit basis with appropriate tax-
exempt status if the laws of the country grant such status to
not-for-profit organizations;
(4) is voluntary in that it receives voluntary contributions
of money, time, or in-kind support from the public; and
(5) is engaged or intends to be engaged in voluntary,
charitable, development, or humanitarian assistance activities.
(c) Report.--
(1) In general.--Not later than September 30, 1997, the
United States Agency for International Development shall submit
a report to the Congress on the amount of its funding being
channeled through and private and voluntary organizations.
(2) Additional requirements.--(A) The report should use
fiscal year 1995 as a baseline and include an implementation
plan for steadily increasing the percentage of assistance
channeled through such organizations, consistent with the
funding commitment announced by Vice President Gore in March
1995.
(B) The report should also indicate the proportion of funds
made available under the following provisions and channeled
through such organizations:
(i) Chapter 11 of part I of the Foreign Assistance
Act of 1961 (22 U.S.C. 2295 et seq.).
(ii) The Support for East European Democracy (SEED)
Act of 1989 (22 U.S.C. 5401 et seq.).
(iii) Chapter 4 of part II of the Foreign Assistance
Act of 1961 (22 U.S.C. 2346).
SEC. 303. MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS.
Section 108 of the Foreign Assistance Act of 1961 (22 U.S.C. 2151f)
is amended to read as follows:
``SEC. 108. MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS.
``(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 stable 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;
``(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; and
``(4) programs that provide credit, training, and technical
assistance to private institutions can serve as a valuable
complement to grant assistance provided for the purpose of
benefiting micro- and small private enterprise.
``(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.
``(c) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated the
following amounts for the following purposes (in addition to
amounts otherwise available for such purposes):
``(A)(i) $1,500,000 for each of the fiscal years 1998
and 1999 to carry out subsection (b)(1).
``(ii) Funds authorized to be appropriated under this
subparagraph shall be made available for the subsidy
cost, as defined in section 502(5) of the Federal
Credit Reform Act of 1990, for activities under such
subsection.
``(B) $500,000 for each of the fiscal years 1998 and
1999 to carry out paragraphs (2) and (3) of subsection
(b).
``(2) Availability of amounts.--Amounts authorized to be
appropriated under paragraph (1) are authorized to remain
available until expended.''.
SEC. 304. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.
Chapter 1 of part I of the Foreign Assistance Act of 1961 (22 U.S.C.
2151 et seq.) is amended by inserting after section 108, as amended by
this Act, the following new section:
``SEC. 108A. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.
``(a) Authorization.--(1) In carrying out this part, the
Administrator of the United States Agency for International Development
is authorized to provide grant assistance for programs of credit and
other assistance for micro enterprises in developing countries.
``(2) Assistance authorized under paragraph (1) shall be provided
through organizations that have a capacity to develop and implement
microenterprise programs, including particularly--
``(A) United States and indigenous private and
voluntary organizations;
``(B) United States and indigenous credit unions and
cooperative organizations; or
``(C) other indigenous governmental and
nongovernmental organizations.
``(3) Approximately one-half of the credit assistance authorized
under paragraph (1) shall be used for poverty lending programs,
including the poverty lending portion of mixed programs. Such
programs--
``(A) shall meet the needs of the very poor members of
society, particularly poor women; and
``(B) should provide loans of $300 or less in 1995 United
States dollars to such poor members of society.
``(4) The Administrator should continue support for mechanisms that--
``(A) provide technical support for field missions;
``(B) strengthen the institutional development of the
intermediary organizations described in paragraph (2); and
``(C) share information relating to the provision of
assistance authorized under paragraph (1) between such field
missions and intermediary organizations.
``(b) Monitoring System.--In order to maximize the sustainable
development impact of the assistance authorized under subsection
(a)(1), the Administrator shall, in accordance with section 1115 of
title 31, United States Code (relating to performance plans), establish
a monitoring system that--
``(1) establishes performance goals for such assistance and
expresses such goals in an objective and quantifiable form, to
the extent feasible;
``(2) establishes performance indicators to be used in
measuring or assessing the achievement of the goals and
objectives of such assistance; and
``(3) provides a basis for recommendations for adjustments to
such assistance to enhance the sustainable development impact
of such assistance, particularly the impact of such assistance
on the very poor, particularly poor women.''.
SEC. 305. PRIVATE SECTOR ENTERPRISE FUNDS.
The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is
amended by inserting after section 601 the following new section:
``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 (22 U.S.C. 5401 et seq.).
``(2) Funds may be made available under this section notwithstanding
any other provision of law, except sections 502B and 490 of this Act.
``(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 (22 U.S.C. 5421(d)).
``(2) The authority of paragraph (1) shall not apply to any country
with respect to which the President is authorized to designate an
enterprise fund under section 498B(c) of this Act or section 201 of the
Support for East European Democracy (SEED) Act of 1989 (22 U.S.C.
5421).
``(c) Treatment Equivalent to Enterprise Funds for Poland and
Hungary.--Except as otherwise specifically provided in this section,
the provisions contained in section 201 of the Support for East
European Democracy (SEED) Act of 1989 (22 U.S.C. 5421) (excluding the
authorizations of appropriations provided in subsection (b) of that
section) shall apply to any Enterprise Fund that receives Funds and
support under this section. The officers, members, or employees of an
Enterprise Fund that 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 section 201 of the Support for East European Democracy (SEED) Act
of 1989 (22 U.S.C. 5421).
``(d) Reporting Requirement.--Notwithstanding any other provision of
this section, the requirement of section 201(p) of the Support for East
European Democracy (SEED) Act of 1989 (22 U.S.C. 5421(p)), that an
Enterprise Fund shall be required to publish an annual report not later
than January 31 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.
``(e) Funding.--(1) Amounts made available for a fiscal year to carry
out chapter 1 of part I of this Act (relating to development
assistance) and to carry out chapter 4 of part II of this Act (relating
to the economic support fund) shall be available for such fiscal year
to carry out this section, in addition to amounts otherwise available
for such purposes.
``(2) In addition to amounts available under paragraph (1) for a
fiscal year, amounts made available for such fiscal year to carry out
chapter 10 of part I of this Act (relating to the Development Fund for
Africa) shall be available for such fiscal year to carry out this
section with respect to countries in Africa.''.
SEC. 306. DEVELOPMENT CREDIT AUTHORITY.
The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is
amended by inserting after section 106 the following:
``SEC. 107A. DEVELOPMENT CREDIT AUTHORITY.
``(a) General Authority.--The President is authorized to use credit
authority (loans, loan guarantees, and other investments involving the
extension of credit) to achieve any of the development purposes of this
part in cases where--
``(1) the borrowers or activities are deemed sufficiently
creditworthy and do not otherwise have access to such credit;
and
``(2) the use of credit authority would be appropriate to the
achievement of such development purposes.
``(b) Priority Sector Policies and Activities.--
``(1) In general.--To the maximum extent practicable,
preference shall be given to the use of credit authority to
promote--
``(A) micro- and small enterprise development
policies of section 108;
``(B) sustainable urban and environmental activities
pursuant to the policy directives set forth in this
part; and
``(C) other development activities that will support
and enhance grant-financed policy and institutional
reforms under this part.
``(2) Development credit authority.--The credit authority
described in paragraph (1) shall be known as the `Development
Credit Authority'.
``(c) General Authority.--
``(1) Authority.--Of the amounts made available to carry out
this chapter, chapters 10 and 11 of this part, chapter 4 of
part II of this Act, and the Support for East European
Democracy (SEED) Act of 1989 for fiscal years 1998 and 1999,
not more than $13,000,000 for each such fiscal year may be made
available to carry out this section.
``(2) Limitations.--(A) Funds made available under paragraph
(1) shall be used for activities in the same geographic region
for which such funds were originally allocated.
``(B) The President shall notify the congressional committees
specified in section 634A at least fifteen days in advance of
each transfer of funds under paragraph (1) in accordance with
procedures applicable to reprogramming notifications under such
section.
``(3) Subsidy cost.--Amounts made available under paragraph
(1) shall be made available for the subsidy cost, as defined in
section 502(5) of the Federal Credit Reform Act of 1990, for
activities under this section.
``(4) Administrative expenses.--
``(A) Amounts made available.--Of the amounts made
available under paragraph (1) for a fiscal year, not
more than $1,500,000 may be made available for
administrative expenses to carry out this section.
``(B) Authorization of appropriations.--In addition
to amounts made available under subparagraph (A), there
are authorized to be appropriated for administrative
expenses to carry out this section and section 221
$6,000,000 for each of the fiscal years 1998 and 1999.
``(C) Transfer authority.--Amounts made available
under and subparagraph (A) and amounts authorized to be
appropriated under subparagraph (B) may be transferred
and merged with amounts made available for `Operating
Expenses of the Agency for International Development'.
``(5) Availability.--Amounts made available under paragraph
(1) are authorized to remain available until expended.
``(d) General Provisions Applicable to Development Credit
Authority.--
``(1) Policy provisions.--In providing the credit assistance
authorized by this section, the President should apply, as
appropriate, the policy provisions in this part applicable to
development assistance activities.
``(2) Default and procurement provisions.--
``(A) Default provision.--The provisions of section
620(q) of this Act, or any comparable provisions of
law, shall not be construed to prohibit assistance to a
country in the event that a private sector recipient of
assistance furnished under this section is in default
in its payment to the United States for the period
specified in such section.
``(B) Procurement provision.--Assistance may be
provided under this section without regard to section
604(a) of this Act.
``(3) Terms and conditions of credit assistance.--(A)
Assistance provided under this section shall be offered on such
terms and conditions, including fees charged, as the President
may determine.
``(B) The principal amount of loans made or guaranteed under
this section in any fiscal year, with respect to any single
country or borrower, may not exceed $100,000,000.
``(C) No payment may be made under any guarantee issued under
this section for any loss arising out of fraud or
misrepresentation for which the party seeking payment is
responsible.
``(4) Full faith and credit.--All guarantees issued under
this section shall constitute obligations, in accordance with
the terms of such guarantees, of the United States of America
and the full faith and credit of the United States of America
is hereby pledged for the full payment and performance of such
obligations to the extent of the guarantee.
``(5) Co-financing and risk sharing.--
``(A) In general.--(i) Assistance provided under this
section shall be in the form of co-financing or risk
sharing.
``(ii) Credit assistance may not be provided to a
borrower under this section unless the Administrator of
the United States Agency for International Development
determines that there are reasonable prospects of
repayment by such borrower.
``(B) Additional requirement.--The investment or risk
of the United States in any one development activity
may not exceed 80 percent of the total outstanding
investment or risk.
``(6) Eligible borrowers.--
``(A) In general.--In order to be eligible to receive
credit assistance under this section, a borrower shall
be sufficiently credit worthy so that the estimated
costs (as defined in section 502 of the Federal Credit
Reform Act of 1990) of the proposed credit assistance
for the borrower does not exceed 30 percent of the
principal amount of credit assistance to be received.
``(B) Additional requirement.--(i) In addition, with
respect to the eligibility of foreign governments as an
eligible borrowers under this section, the
Administrator of the United States Agency for
International Development shall make a determination
that the additional debt of the government will not
exceed the debt repayment capacity of the government.
``(ii) In making the determination under clause (i),
the Administrator shall consult, as appropriate, with
international financial institutions and other
institutions or agencies that assess debt service
capacity.
``(7) Assessment of credit risk.--(A) The Administrator of
the United States Agency for International Development shall
use the Interagency Country Risk Assessment System (ICRAS) and
the methodology approved by the Office of Management and Budget
to assess the cost of risk credit assistance provided under
this section to foreign governments.
``(B) With respect to the provision of credit to
nongovernmental organizations, the Administrator--
``(i) shall consult with appropriate private sector
institutions, including the two largest United States
private sector debt rating agencies, prior to
establishing the risk assessment standards and
methodologies to be used; and
``(ii) shall periodically consult with such
institutions in reviewing the performance of such
standards and methodologies.
``(C) In addition, if the anticipated share of financing
attributable to public sector owned or controlled entities,
including the United States Agency for International
Development, exceeds 49 percent, the Administrator shall
determine the cost (as defined in section 502(5) of the Federal
Credit Reform Act of 1990) of such assistance by using the cost
and risk assessment determinations of the private sector co-
financing entities.
``(8) Use of united states technology, firms, and
equipment.--Activities financed under this section shall, to
the maximum extent practicable, use or employ United States
technology, firms, and equipment.''.
SEC. 307. FOREIGN GOVERNMENT PARKING FINES.
(a) In General.--Chapter 1 of part III of the Foreign Assistance Act
of 1961 (22 U.S.C. 2351 et seq.), as amended by this Act, is further
amended by adding at the end the following new section:
``SEC. 620K. FOREIGN GOVERNMENT PARKING FINES.
``(a) In General.--An amount equivalent to 110 percent of the total
unpaid fully adjudicated parking fines and penalties owed to the
District of Columbia, Virginia, Maryland, New York, and New York City
by the government of a foreign country as of the end of a fiscal year,
as certified and transmitted to the President by the chief executive
officer of each State, City, 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) 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, Maryland, and
New York.
``(c) Appropriate Congressional Committees Defined.--For purposes of
this section, the term `appropriate congressional committees' means the
Committee on International Relations and the Committee on
Appropriations of the House of Representatives and the Committee on
Foreign Relations and the Committee on Appropriations of the Senate.''.
(b) Effective Date.--The amendment made by subsection (a) shall apply
with respect to fines certified as of the end of fiscal year 1998 or
any fiscal year thereafter.
(c) Technical Amendment.--The second section 620G of the Foreign
Assistance Act of 1961, as added by section 149 of Public Law 104-164
(110 Stat. 1436), is amended--
(1) by redesignating such section as section 620J of such
Act; and
(2) by inserting such section after section 620I of such Act.
SEC. 308. WITHHOLDING UNITED STATES ASSISTANCE TO COUNTRIES THAT AID
THE GOVERNMENT OF CUBA.
(a) In General.--Except as provided in subsection (b), not later than
180 days after the date of the enactment of this Act, the President
shall withhold assistance under the Foreign Assistance Act of 1961 to
any foreign government providing economic, development, or security
assistance for, or engaging in nonmarket based trade with the
Government of Cuba.
(b) Waiver.--The President may waive the provisions of subsection (a)
if the President certifies to the appropriate congressional committees
that the provision of United States assistance is important to the
national security of the United States.
(c) Nonmarket Based Trade Defined.--For the purpose of this section,
the term ``nonmarket based trade'' means exports, imports, exchanges,
or other arrangements that are provided for goods and services on terms
more favorable than those generally available in applicable markets or
for comparable commodities, including--
(1) exports to the Cuban Government on terms that involve a
grant, concessional price, guaranty, insurance, or subsidy;
(2) imports from the Cuban Government at preferential tariff
rates;
(3) exchange arrangements that include advance delivery of
commodities, arrangements in which the Cuban Government is not
held accountable for unfulfilled exchange contracts, and
arrangements under which Cuba does not pay appropriate
transportation, insurance, or finance costs; and
(4) the exchange, reduction, or forgiveness of debt of the
Cuban Government in exchange for a grant by the Cuban
Government of an equity interest in a property, investment, or
operation of the Cuban Government or of a Cuban national.
TITLE IV--DEFENSE AND SECURITY ASSISTANCE
CHAPTER 1--NARCOTICS CONTROL ASSISTANCE
SEC. 401. DEFINITION.
(a) In General.--Section 481(e)(4) of the Foreign Assistance Act of
1961 (22 U.S.C. 2291(e)(4)) is amended--
(1) in subparagraph (A)(ii), inserting ``or under chapter 5
of part II'' after ``(including chapter 4 of part II)''; and
(2) in subparagraph (B), by inserting before the semicolon at
the end the following: ``, other than sales or financing
provided for narcotics-related purposes following notification
in accordance with procedures applicable to reprogramming
notifications under section 634A of this Act''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply with respect to assistance provided on or after the date of the
enactment of this Act.
SEC. 402. AUTHORIZATION OF APPROPRIATIONS.
Section 482(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C.
2291a(a)(1)) is amended by striking ``$147,783,000 for fiscal year 1993
and $171,500,000 for fiscal year 1994'' and inserting ``$230,000,000
for each of the fiscal years 1998 and 1999''.
SEC. 403. AUTHORITY TO WITHHOLD BILATERAL ASSISTANCE AND OPPOSE
MULTILATERAL DEVELOPMENT ASSISTANCE FOR MAJOR
ILLICIT DRUG PRODUCING COUNTRIES, DRUG-TRANSIT
COUNTRIES, AND MONEY LAUNDERING COUNTRIES.
(a) In General.--Section 490 of the Foreign Assistance Act of 1961
(22 U.S.C. 2291j) is amended to read as follows:
``SEC. 490. AUTHORITY TO WITHHOLD BILATERAL ASSISTANCE AND OPPOSE
MULTILATERAL DEVELOPMENT ASSISTANCE FOR MAJOR
ILLICIT DRUG PRODUCING COUNTRIES, DRUG-TRANSIT
COUNTRIES, AND MONEY LAUNDERING COUNTRIES.
``(a) In General.--For every country identified in the report under
section 489(a)(3), the President shall, on or after March 1, 1998, and
March 1 of each succeeding year, to the extent considered necessary by
the President to achieve the purposes of this chapter, take one or more
of the following actions:
``(1) Withhold from obligation and expenditure any or all
United States assistance allocated each fiscal year in the
report required by section 653 for each such country.
``(2) Instruct the Secretary of the Treasury to 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 such country.
``(b) Considerations.--In determining whether or not take one or more
actions described in subsection (a), the President shall consider the
extent to which--
``(1) the country has--
``(A) met the goals and objectives of the United
Nations Convention Against Illicit Traffic in Narcotic
Drugs and Psychotropic Substances, including action on
such issues as illicit cultivation, production,
distribution, sale, transport and financing, and money
laundering, asset seizure, extradition, mutual legal
assistance, law enforcement and transit cooperation,
precursor chemical control, and demand reduction;
``(B) accomplished the goals described in an
applicable bilateral narcotics agreement with the
United States or a multilateral agreement;
``(C) reached agreement, or is negotiating in good
faith to reach agreement, to ensure that banks and
other financial institutions of the country maintain
adequate records of large United States currency
transactions;
``(D) reached agreement, or is negotiating in good
faith to reach agreement, to establish a mechanism for
exchanging adequate records on international currency
transactions in connection with narcotics
investigations and proceedings; and
``(E) taken legal and law enforcement measures to
prevent and punish public corruption, especially by
senior government officials, that facilitates the
production, processing, or shipment of narcotic and
psychotropic drugs and other controlled substances, or
that discourages the investigation or prosecution of
such acts; and
``(2) such actions will--
``(A) promote the purposes of this chapter; and
``(B) affect other United States national interests.
``(c) Consultations with the Congress.--
``(1) Consultations.--The President shall consult with the
Congress on the status of counter-narcotics cooperation between
the United States and each major illicit drug producing
country, major drug-transit country, or major money laundering
country.
``(2) Purpose.--
``(A) In general.--The purpose of the consultations
under paragraph (1) shall be to facilitate improved
discussion and understanding between the Congress and
the President on United States counter-narcotics goals
and objectives with regard to the countries described
in paragraph (1), including the strategy for achieving
such goals and objectives.
``(B) Regular and special consultations.--In order to
carry out subparagraph (A), the President (or senior
officials designated by the President who are
responsible for international narcotics programs and
policies) shall meet with Members of Congress--
``(i) on a quarterly basis for discussions
and consultations; and
``(ii) whenever time-sensitive issues arise.
``(d) Definition.--For purposes of this section, 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) Conforming Amendments.--(1) Section 481(e)(8) of such Act (22
U.S.C. 2291(e)(8)) is amended by striking ``Committee on Foreign
Affairs'' and inserting ``Committee on International Relations''.
(2) Section 485(b) of such Act (22 U.S.C. 2291d(b)) is amended by
striking ``Committee on Foreign Affairs'' and inserting ``Committee on
International Relations''.
(3) Section 488(a)(3) of such Act (22 U.S.C. 2291g(a)(3)) is amended
by striking ``Committee on Foreign Affairs'' and inserting ``Committee
on International Relations''.
(4) Section 489(a) of such Act (22 U.S.C. 2291h(a)) is amended--
(A) in paragraph (3)(A), by striking ``as determined under
section 490(h)''; and
(B) in the matter preceding subparagraph (A) of paragraph
(7), by striking ``paragraph (3)(D)'' and inserting ``paragraph
(3)(C)''.
CHAPTER 2--NONPROLIFERATION, ANTITERRORISM, DEMINING, AND RELATED
PROGRAMS
SEC. 411. NONPROLIFERATION, ANTITERRORISM, DEMINING, AND RELATED
PROGRAMS.
(a) In General.--Part II of the Foreign Assistance Act of 1961 (22
U.S.C. 2301 et seq.) is amended by adding at the end the following:
``CHAPTER 9--NONPROLIFERATION, ANTITERRORISM, DEMINING AND RELATED
PROGRAMS
``SEC. 581. NONPROLIFERATION AND DISARMAMENT FUND.
``(a) Establishment of Fund.--The President shall establish a
Nonproliferation and Disarmament Fund, which may be used
notwithstanding any other provision of law, to promote bilateral and
multilateral nonproliferation and disarmament activities--
``(1) to halt the proliferation of nuclear, biological, and
chemical weapons, their delivery systems, related technologies,
and other weapons;
``(2) to dismantle and destroy nuclear, biological, and
chemical weapons, their delivery systems, and conventional
weapons;
``(3) to prevent the diversion of weapons-related scientific
and technical expertise; and
``(4) to support science and technology centers in Russia and
the Ukraine.
``(b) Prohibited Activities.--Amounts made available to carry out
subsection (a) may not be used to implement United States obligations
pursuant to bilateral or multilateral arm control treaties or
nonproliferation accords, including the payment of salaries and
expenses.
``(c) Additional Requirements.--
``(1) Notification.--Amounts made available to carry out
subsection (a) may be provided only if the congressional
committees specified in section 634A of this Act are notified
at least fifteen days before providing funds under such
subsection in accordance with procedures applicable to
reprogramming notifications under such section.
``(2) Assistance for the independent states of the former
soviet union and international organizations.--Amounts made
available to carry out subsection (a) may only be provided for
the independent states of the former Soviet Union and
international organizations if the Secretary of State--
``(A) determines it is in the national interest of
the United States to do so; and
``(B) includes such determination in the notification
described in paragraph (1).
``(d) Availability of Amounts.--
``(1) In general.--Of the amounts made available to carry out
this chapter for fiscal years 1998 and 1999--
``(A) not less than $15,000,000 for each such fiscal
year may be made available to carry out subsection (a);
and
``(B) not more than $5,000,000 of the amount made
available under subparagraph (A) for fiscal year 1998,
and not more than $3,000,000 of such amount made
available in fiscal year 1999, may be used to support
export control programs.
``(2) Availability.--Amounts made available under paragraph
(1) are authorized to remain available until expended.
``SEC. 582. ASSISTANCE FOR ANTITERRORISM.
``Amounts made available to carry out this chapter for fiscal years
1998 and 1999 may be made available to carry out chapter 8 of part II
of this Act.
``SEC. 583. ASSISTANCE FOR DEMINING.
``The President is authorized to provide assistance for demining
activities, notwithstanding any other provision of law, including--
``(1) to enhance the ability of countries, international
organizations, and nongovernmental organizations to detect and
clear landmines; and
``(2) to educate affected populations about the dangers of
landmines.
``SEC. 584. ASSISTANCE FOR RELATED PROGRAMS.
``(a) In General.--Amounts made available to carry out this chapter
for fiscal years 1998 and 1999 may be made available to carry out
section 301 of this Act for voluntary contributions to the
International Atomic Energy Agency (IAEA) and the Korean Peninsula
Energy Development Organization (KEDO) and to programs administered by
such organizations.
``(b) Limitation.--Of the amounts made available under subsection (a)
for fiscal years 1998 and 1999, not more than $30,000,000 may be made
available for each fiscal year to KEDO for the administrative expenses
and heavy fuel oil costs associated with implementation of the Agreed
Framework.
``SEC. 585. DEFINITIONS.
``As used in this chapter--
``(1) Agreed framework.--The term `Agreed Framework' means
the documents agreed to between the United States and the
Democratic People's Republic of Korea on October 21, 1994,
regarding elimination of the nuclear weapons program of the
Democratic People's Republic of Korea and the provision of
certain assistance to that country.
``(2) Independent states of the former soviet union.--The
term `independent states of the former Soviet Union' has the
meaning given such term in section 3 of the Freedom for Russia
and Emerging Eurasian Democracies and Open Markets Support Act
of 1992 (22 U.S.C. 5801).
``SEC. 586. AUTHORIZATION OF APPROPRIATIONS.
``(a) Authorization of Appropriations.--There are authorized to be
appropriated $110,000,000 for fiscal year 1998 and $111,000,000 for
fiscal year 1999, in addition to amounts otherwise available for such
purposes, to carry out the purpose of this chapter.
``(b) Administrative Authorities.--Any agency of the United States
Government may utilize such funds in accordance with authority granted
under this Act or under authority governing the activities of that
agency.
``(c) Designation of Account.--Appropriations pursuant to subsection
(a) may be referred to as the `Nonproliferation, Antiterrorism,
Demining and Related Programs Account' or `NADR Account'.''.
(b) Reference in Other Provisions of Law.--A reference in any other
provision of law to section 504 of the Freedom for Russia and Emerging
Eurasian Democracies and Open Markets Support Act of 1992 (22 U.S.C.
5854) shall be deemed to include a reference to chapter 9 of part II of
the Foreign Assistance Act of 1961, as added by subsection (a).
(c) Conforming Amendments.--(1) Section 504 of the Freedom for Russia
and Emerging Eurasian Democracies and Open Markets Support Act of 1992
(22 U.S.C. 5854) is hereby repealed.
(2) The table of contents of such Act is amended by striking the item
relating to section 504.
CHAPTER 3--FOREIGN MILITARY FINANCING PROGRAM
SEC. 421. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the President for grant
assistance under section 23 of the Arms Export Control Act (22 U.S.C.
2763) and for the subsidy cost, as defined in section 502(5) of the
Federal Credit Reform Act of 1990, of direct loans under such section--
(1) $3,318,000,000 for fiscal year 1998; and
(2) $3,274,250,000 for fiscal year 1999.
SEC. 422. ASSISTANCE FOR ISRAEL.
(a) Minimum Allocation.--Of the amounts made available for fiscal
years 1998 and 1999 for assistance under section 23 of the Arms Export
Control Act (22 U.S.C. 2763; relating to the ``Foreign Military
Financing Program''), not less than $1,800,000,000 for each such fiscal
year shall be available only for Israel.
(b) Terms of Assistance.--
(1) Grant basis.--The assistance provided for Israel for each
fiscal year under subsection (a) shall be provided on a grant
basis.
(2) Expedited disbursement.--Such assistance shall be
disbursed--
(A) with respect to fiscal year 1998, not later than
30 days after the date of the enactment of the Foreign
Operations, Export Financing, and Related Programs
Appropriations Act, 1998, or by October 31, 1997,
whichever is later; and
(B) with respect to fiscal year 1999, not later than
30 days after the date of the enactment of the Foreign
Operations, Export Financing, and Related Programs
Appropriations Act, 1999, or by October 31, 1998,
whichever is later.
(3) Advanced weapons systems.--To the extent that the
Government of Israel requests that funds be used for such
purposes, funds described in subsection (a) shall, as agreed by
the Government of Israel and the Government of the United
States, be available for advanced weapons systems, of which not
less than $475,000,000 for each fiscal year shall be available
only for procurement in Israel of defense articles and defense
services, including research and development.
SEC. 423. ASSISTANCE FOR EGYPT.
(a) Minimum Allocation.--Of the amounts made available for fiscal
years 1998 and 1999 for assistance under section 23 of the Arms Export
Control Act (22 U.S.C. 2763; relating to the ``Foreign Military
Financing Program'' account), not less than $1,300,000,000 for each
such fiscal year shall be available only for Egypt.
(b) Terms of Assistance.--The assistance provided for Egypt for each
fiscal year under subsection (a) shall be provided on a grant basis.
SEC. 424. AUTHORIZATION OF ASSISTANCE TO FACILITATE TRANSITION TO NATO
MEMBERSHIP UNDER NATO PARTICIPATION ACT OF 1994.
(a) Minimum Allocation.--Of the amounts made available for fiscal
years 1998 and 1999 for assistance under section 23 of the Arms Export
Control Act (22 U.S.C. 2763; relating to the ``Foreign Military
Financing Program''), not less than $50,900,000 for each such fiscal
year shall be made available for the program established under section
203(a) of the NATO Participation Act of 1994 (title II of Public Law
103-447; 22 U.S.C. 1928 note).
(b) Terms of Assistance.--The assistance provided under subsection
(a) may be provided on a grant basis, and may also be made available
for the subsidy cost, as defined in section 502(5) of the Federal
Credit Reform Act of 1990, of direct loans to countries eligible for
assistance under the program established under section 203(a) of the
NATO Participation Act of 1994 (title II of Public Law 103-447; 22
U.S.C. 1928 note).
SEC. 425. LOANS FOR GREECE AND TURKEY.
Of the amounts made available for fiscal year 1998 under section 23
of the Arms Export Control Act (22 U.S.C. 2763)--
(1) not more than $12,850,000 shall be made available for the
subsidy cost, as defined in section 502(5) of the Federal
Credit Reform Act of 1990, of direct loans for Greece; and
(2) not more than $33,150,000 shall be made available for
such subsidy cost of direct loans for Turkey.
SEC. 426. LIMITATIONS ON LOANS.
Of the amounts made available for fiscal year 1999 under section 23
of the Arms Export Control (22 U.S.C. 2763) for the subsidy cost, as
defined in section 502(5) of the Federal Credit Reform Act of 1990, of
direct loans, no such amounts shall be made available to any country
which has an Inter-Agency Country Risk Assessment Systems (ICRAS)
rating of less than grade C-.
SEC. 427. ADMINISTRATIVE EXPENSES.
Of the amounts made available for fiscal years 1998 and 1999 for
assistance under section 23 of the Arms Export Control Act (22 U.S.C.
2763; relating to the ``Foreign Military Financing Program''), not more
than $23,250,000 for each of the fiscal years 1998 and 1999 may be made
available for necessary expenses for the general costs of
administration of military assistance and sales, including expenses
incurred in purchasing passenger motor vehicles for replacement for use
outside the United States.
CHAPTER 4--INTERNATIONAL MILITARY EDUCATION AND TRAINING
SEC. 431. AUTHORIZATION OF APPROPRIATIONS.
Section 542 of the Foreign Assistance Act of 1961 (22 U.S.C. 2347a)
is amended by striking ``$56,221,000 for the fiscal year 1986 and
$56,221,000 for the fiscal year 1987'' and inserting ``$50,000,000 for
each of the fiscal years 1998 and 1999''.
SEC. 432. IMET ELIGIBILITY FOR PANAMA AND HAITI.
Notwithstanding section 660(c) of the Foreign Assistance Act of 1961
(22 U.S.C. 2420(c)), assistance under chapter 5 of part II of such Act
(22 U.S.C. 2347) may be provided to Panama and Haiti for each of the
fiscal years 1998 and 1999.
CHAPTER 5--TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES
SEC. 441. AUTHORITY TO TRANSFER NAVAL VESSELS.
(a) Brazil.--The Secretary of the Navy is authorized to transfer to
the Government of Brazil the ``HUNLEY'' class submarine tender HOLLAND
(AS 32).
(b) Chile.--The Secretary of the Navy is authorized to transfer to
the Government of Chile the ``KAISER'' class oiler ISHERWOOD (T-AO
191).
(c) Egypt.--The Secretary of the Navy is authorized to transfer to
the Government of Egypt the ``KNOX'' class frigates PAUL (FF 1080),
MILLER (FF 1091), JESSE L. BROWN (FFT 1089), and MOINESTER (FFT 1097),
and the ``OLIVER HAZARD PERRY'' class frigates FAHRION (FFG 22) and
LEWIS B. PULLER (FFG 23).
(d) Israel.--The Secretary of the Navy is authorized to transfer to
the Government of Israel the ``NEWPORT'' class tank landing ship PEORIA
(LST 1183).
(e) Malaysia.--The Secretary of the Navy is authorized to transfer to
the Government of Malaysia the ``NEWPORT'' class tank landing ship
BARBOUR COUNTY (LST 1195).
(f) Mexico.--The Secretary of the Navy is authorized to transfer to
the Government of Mexico the ``KNOX'' class frigate ROARK (FF 1053).
(g) Taiwan.--The Secretary of the Navy is authorized to transfer to
the Taipei Economic and Cultural Representative Office in the United
States (which is the Taiwan instrumentality designated pursuant to
section 10(a) of the Taiwan Relations Act) the ``KNOX'' class frigates
WHIPPLE (FF 1062) and DOWNES (FF 1070).
(h) Thailand.--The Secretary of the Navy is authorized to transfer to
the Government of Thailand the ``NEWPORT'' class tank landing ship
SCHENECTADY (LST 1185).
(i) Form of transfers.--Each transfer authorized by this section
shall be on a sales basis under section 21 of the Arms Export Control
Act (22 U.S.C. 2761; relating to the foreign military sales program).
SEC. 442. COSTS OF TRANSFERS.
Any expense of the United States in connection with a transfer
authorized by this chapter shall be charged to the recipient.
SEC. 443. EXPIRATION OF AUTHORITY.
The authority granted by section 451 shall expire at the end of the
2-year period beginning on the date of the enactment of this Act.
SEC. 444. REPAIR AND REFURBISHMENT OF VESSELS IN UNITED STATES
SHIPYARDS.
The Secretary of the Navy shall require, to the maximum extent
possible, as a condition of a transfer of a vessel under this chapter,
that the country to which the vessel is transferred have such repair or
refurbishment of the vessel as is needed, before the vessel joins the
naval forces of that country, performed at a shipyard located in the
United States, including a United States Navy shipyard.
CHAPTER 6--INDONESIA MILITARY ASSISTANCE ACCOUNTABILITY ACT
SEC. 451. SHORT TITLE.
This chapter may be cited as the ``Indonesia Military Assistance
Accountability Act''.
SEC. 452. FINDINGS.
The Congress finds the following:
(1)(A) Despite a surface adherence to democratic forms, the
Indonesian political system remains strongly authoritarian.
(B) The government is dominated by an elite comprising
President Soeharto (now in his sixth 5-year term), his close
associates, and the military.
(C) The government requires allegiance to a state ideology
known as ``Pancasila'', which stresses consultation and
consensus, but is also used to limit dissent, to enforce social
and political cohesion, and to restrict the development of
opposition elements.
(2) The Government of Indonesia recognizes only one official
trade union, has refused to register independent trade unions
such as the Indonesian Prosperity Trade Union (SBSI), has
arrested Muchtar Pakpahan, the General Chairman of the SBSI, on
charges of subversion, and other labor activists, and has
closed the offices and confiscated materials of the SBSI.
(3) Civil society organizations in Indonesia, such as
environmental organizations, election-monitoring organizations,
legal aid organizations, student organizations, trade union
organizations, and community organizations, have been harassed
by the Government of Indonesia through such means as
detentions, interrogations, denial of permission for meetings,
banning of publications, repeated orders to report to security
forces or judicial courts, and illegal seizure of documents.
(4)(A) The armed forces of Indonesia continue to carry out
torture and other severe violations of human rights in East
Timor, Irian Jaya, and other parts of Indonesia, to detain and
imprison East Timorese and others for nonviolent expression of
political views, and to maintain unjustifiably high troop
levels in East Timor.
(B) Indonesian civil authorities must improve their human
rights performance in East Timor, Irian Jaya, and elsewhere in
Indonesia, and aggressively prosecute violations.
(5) The Nobel Prize Committee awarded the 1996 Nobel Peace
Prize to Bishop Carlos Felipe Ximenes Belo and Jose Ramos Horta
for their tireless efforts to find a just and peaceful solution
to the conflict in East Timor.
(6) In 1992, the Congress suspended the international
military and education training (IMET) program for Indonesia in
response to a November 12, 1991, shooting incident in East
Timor by Indonesian security forces against peaceful Timorese
demonstrators in which no progress has been made in accounting
for the missing persons either in that incident or others who
disappeared in 1995-96.
(7) On August 1, 1996, then Secretary of State Warren
Christopher stated in testimony before the Committee on Foreign
Relations of the Senate, ``I think there's a strong interest in
seeing an orderly transition of power there [in Indonesia] that
will recognize the pluralism that should exist in a country of
that magnitude and importance.''.
(8) The United States has important economic, commercial, and
security interests in Indonesia because of its growing economy
and markets and its strategic location astride a number of key
international straits which will only be strengthened by
democratic development in Indonesia and a policy which promotes
political pluralism and respect for universal human rights.
SEC. 453. LIMITATION ON MILITARY ASSISTANCE TO THE GOVERNMENT OF
INDONESIA.
(a) In General.--The United States shall not provide military
assistance and arms transfers programs for a fiscal year to the
Government of Indonesia unless the President determines and certifies
to the Congress for that fiscal year that the Government of Indonesia
meets the following requirements:
(1) Domestic monitoring of elections.--(A) The Government of
Indonesia provides official accreditation to independent
election-monitoring organizations, including the Independent
Election Monitoring Committee (KIPP), to observe national
elections without interference by personnel of the Government
or of the armed forces.
(B) In addition, such organizations are allowed to assess
such elections and to publicize or otherwise disseminate the
assessments throughout Indonesia.
(2) Protection of nongovernmental organizations.--The police
or military of Indonesia do not confiscate materials from or
otherwise engage in illegal raids on the offices or homes of
members of both domestic or international nongovernmental
organizations, including election-monitoring organizations,
legal aid organizations, student organizations, trade union
organizations, community organizations, environmental
organizations, and religious organizations.
(3) Accountability for attack on pdi headquarters.--As
recommended by the Government of Indonesia's National Human
Rights Commission, the Government of Indonesia has investigated
the attack on the headquarters of the Democratic Party of
Indonesia (PDI) on July 27, 1996, prosecuted individuals who
planned and carried out the attack, and made public the
postmortem examination of the five individuals killed in the
attack.
(4) Resolution of conflict in east timor.--
(A) Establishment of dialogue.--The Government of
Indonesia is doing everything possible to enter into a
process of dialogue, under the auspices of the United
Nations, with Portugal and East Timorese leaders of
various viewpoints to discuss ideas toward a resolution
of the conflict in East Timor and the political status
of East Timor.
(B) Reduction of troops.--The Government of Indonesia
has established and implemented a plan to reduce the
number of Indonesian troops in East Timor.
(C) Release of political prisoners.--Individuals
detained or imprisoned for the non-violent expression
of political views in East Timor have been released
from custody.
(5) Improvement in labor rights.--The Government of Indonesia
has taken the following actions to improve labor rights in
Indonesia:
(A) The Government has dropped charges of subversion,
and previous charges against the General Chairman of
the SBSI trade union, Muchtar Pakpahan, and released
him from custody.
(B) The Government has substantially reduced the
requirements for legal recognition of the SBSI or other
legitimate worker organizations as a trade union.
(b) Waivers.--
(1) In general.--The limitation on United States military
assistance and arms transfers under subsection (a) shall not
apply if the President determines and notifies the Congress
that--
(A) an emergency exists that requires providing such
assistance or arms transfers for the Government of
Indonesia; or
(B) subject to paragraph (2), it is in the national
interest of the United States to provide such
assistance or arms transfers for the Government of
Indonesia.
(2) Applicability.--A determination under paragraph (1)(B)
shall not become effective until 15 days after the date on
which the President notifies the Congress in accordance with
such paragraph.
(c) Effective Date.--The limitation on United States military
assistance and arms transfers under subsection (a) shall apply only
with respect to assistance provided for, and arms transfers made
pursuant to agreements entered into, fiscal years beginning after the
date of enactment of this Act.
SEC. 454. UNITED STATES MILITARY ASSISTANCE AND ARMS TRANSFERS
DEFINED.
As used in this chapter, the term ``military assistance and arms
transfers'' means--
(1) small arms, crowd control equipment, armored personnel
carriers, and such other items that can commonly be used in the
direct violation of human rights; and
(2) assistance under chapter 5 of part II of the Foreign
Assistance Act of 1961 (22 U.S.C. 2347 et seq.; relating to
international military education and training or ``IMET''),
except such term shall not include Expanded IMET, pursuant to
section 541 of such Act.
CHAPTER 7--OTHER PROVISIONS
SEC. 461. EXCESS DEFENSE ARTICLES FOR CERTAIN EUROPEAN COUNTRIES.
Section 105 of Public Law 104-164 (110 Stat. 1427) is amended by
striking ``1996 and 1997'' and inserting ``1998 and 1999''.
SEC. 462. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS DEFENSE ARTICLES IN
THE WAR RESERVE ALLIES STOCKPILE TO THE REPUBLIC OF
KOREA.
(a) Authority.--
(1) In general.--Notwithstanding section 514 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2321h), the President is
authorized to transfer to the Republic of Korea, in return for
concessions to be negotiated by the Secretary of Defense, with
the concurrence of the Secretary of State, any or all of the
items described in paragraph (2).
(2) Items described.--The items described in this paragraph
are equipment, tanks, weapons, repair parts, and ammunition
that--
(A) are obsolete or surplus items;
(B) are in the inventory of the Department of
Defense;
(C) are intended for use as reserve stocks for the
Republic of Korea; and
(D) as of the date of enactment of this Act, are
located in a stockpile in the Republic of Korea.
(b) Concessions.--The value of the concessions negotiated pursuant to
subsection (a) shall be at least equal to the fair market value of the
items transferred. The concessions may include cash compensation,
services, waiver of charges otherwise payable by the United States, and
other items of value.
(c) Advance Notification of Transfer.--Not less than 30 days before
making a transfer under the authority of this section, the President
shall transmit to the Committee on Foreign Relations of the Senate, the
Committee on International Relations of the House of Representatives,
and the congressional defense committees a notification of the proposed
transfer. The notification shall identify the items to be transferred
and the concessions to be received.
(d) Expiration of Authority.--No transfer may be made under the
authority of this section more than two years after the date of the
enactment of this Act.
SEC. 463. ADDITIONAL REQUIREMENTS RELATING TO STOCKPILING OF DEFENSE
ARTICLES FOR FOREIGN COUNTRIES.
(a) Value of Additions to Stockpiles.--Section 514(b)(2)(A) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2321h(b)(2)(A)) is amended by
inserting before the period at the end the following: ``and $60,000,000
for fiscal year 1998''.
(b) Requirements Relating to the Republic of Korea and Thailand.--
Section 514(b)(2)(B) of such Act (22 U.S.C 2321h(b)(2)(B)) is amended
by adding at the end the following: ``Of the amount specified in
subparagraph (A) for fiscal year 1998, not more than $40,000,000 may be
made available for stockpiles in the Republic of Korea and not more
than $20,000,000 may be made available for stockpiles in Thailand.''.
SEC. 464. DELIVERY OF DRAWDOWN BY COMMERCIAL TRANSPORTATION SERVICES.
Section 506 of the Foreign Assistance Act of 1961 (22 U.S.C.2318) is
amended--
(1) in subsection (b)(2), by striking the period and
inserting the following: ``, including providing the Congress
with a report detailing all defense articles, defense services,
and military education and training delivered to the recipient
country or international organization upon delivery of such
articles or upon completion of such services or education and
training. Such report shall also include whether any savings
were realized by utilizing commercial transport services rather
than acquiring those services from United States Government
transport assets.'';
(2) by redesignating subsection (c) as subsection (d); and
(3) by inserting after subsection (b) the following:
``(c) For the purposes of any provision of law that authorizes the
drawdown of defense or other articles or commodities, or defense or
other services from an agency of the United States Government, such
drawdown may include the supply of commercial transportation and
related services that are acquired by contract for the purposes of the
drawdown in question if the cost to acquire such commercial
transportation and related services is less than the cost to the United
States Government of providing such services from existing agency
assets.''.
SEC. 465. CASH FLOW FINANCING NOTIFICATION.
Section 25 of the Arms Export Control Act (22 U.S.C. 2765) is
amended--
(1) in the second subsection (d)--
(A) by striking ``(d)'' and inserting ``(e)''; and
(B) by striking the semicolon at the end and
inserting a period; and
(2) by adding at the end the following:
``(f) For each country that has been approved for cash flow financing
(as defined in subsection (e)) under section 23 of this Act (relating
to the `Foreign Military Financing Program'), any letter of offer and
acceptance or other purchase agreement, or any amendment thereto, for a
procurement in excess of $100,000,000 that is to be financed in whole
or in part with funds made available under this Act shall be submitted
in accordance with the procedures applicable to reprogramming
notifications pursuant to section 634A of this Act and through the
regular notification procedures of the Committee on Appropriations.''.
SEC. 466. MULTINATIONAL ARMS SALES CODE OF CONDUCT.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the President shall convene negotiations with
all Wassenaar Arrangement countries for the purpose of establishing a
multinational arms sales code of conduct.
(b) Conduct of Negotiations.--Such negotiations shall achieve
agreement on restricting or prohibiting arms transfers to countries
that--
(1) do not respect democratic processes and the rule of law;
(2) do not adhere to internationally-recognized norms on
human rights; or
(3) are engaged in acts of armed aggression.
(c) Report.--Not later than 1 year after the date of the enactment of
this Act, the President shall prepare and transmit to the Committee on
International Relations of the House of Representative and the
Committee on Foreign Relations of the Senate a report on--
(1) efforts to establish a multinational arms sales code of
conduct;
(2) progress toward establishing such code of conduct; and
(3) any obstacles that impede the establishment of such code
of conduct.
TITLE V--ECONOMIC ASSISTANCE
CHAPTER 1--ECONOMIC SUPPORT ASSISTANCE
SEC. 501. ECONOMIC SUPPORT FUND.
Section 532(a) of the Foreign Assistance Act of 1961 (22 U.S.C.
2346a(a)) is amended to read as follows:
``(a) There are authorized to be appropriated to the President to
carry out the purposes of this chapter $2,388,350,000 for fiscal year
1998 and $2,350,600,000 for fiscal year 1999.''.
SEC. 502. ASSISTANCE FOR ISRAEL.
(a) Minimum Allocation.--Of the amounts made available for fiscal
years 1998 and 1999 for assistance under chapter 4 of part II of the
Foreign Assistance Act of 1961 (22 U.S.C. 2346; relating to the
economic support fund), not less than $1,200,000,000 for each such
fiscal year shall be available only for Israel.
(b) Terms of Assistance.--
(1) Cash transfer.--The total amount of funds allocated for
Israel for each fiscal year under subsection (a) shall be made
available on a grant basis as a cash transfer.
(2) Expedited disbursement.--Such funds shall be disbursed--
(A) with respect to fiscal year 1998, not later than
30 days after the date of the enactment of the Foreign
Operations, Export Financing, and Related Programs
Appropriations Act, 1998, or by October 31, 1997,
whichever is later; and
(B) with respect to fiscal year 1999, not later than
30 days after the date of the enactment of the Foreign
Operations, Export Financing, and Related Programs
Appropriations Act, 1999, or by October 31, 1998,
whichever is later.
(3) Additional requirement.--In exercising the authority of
this subsection, the President shall ensure that the amount of
funds provided as a cash transfer to Israel does not cause an
adverse impact on the total level of nonmilitary exports from
the United States to Israel.
SEC. 503. ASSISTANCE FOR EGYPT.
(a) Minimum Allocation.--Of the amounts made available for fiscal
years 1998 and 1999 for assistance under chapter 4 of part II of the
Foreign Assistance Act of 1961 (22 U.S.C. 2346; relating to the
economic support fund), not less than $815,000,000 for each such fiscal
year shall be available only for Egypt.
(b) Additional Requirement.--In exercising the authority of this
section, the President shall ensure that the amount of funds provided
as a cash transfer to Egypt does not cause an adverse impact on the
total level of nonmilitary exports from the United States to Egypt.
(c) Declaration of Policy.--The Congress declares the following:
(1) Assistance to Egypt is based in great measure upon
Egypt's continued implementation of the Camp David accords and
the Egyptian-Israeli peace treaty.
(2) Fulfillment by Egypt of its obligations under the
agreements described in paragraph (1) has been disappointing,
particularly the failure by Egypt to meet fully its commitment
made at Camp David to establish with Israel ``relationships
normal to states at peace with one another'', and in its recent
support for reimposing the Arab economic boycott of Israel.
(3) Support for future funding levels of assistance for Egypt
will be determined largely on whether Egypt fulfills its
obligations to develop normal relations with Israel and to
promote peace with Israel and other critical United States
interests both in Egypt and the wider Arab world.
SEC. 504. INTERNATIONAL FUND FOR IRELAND.
(a) Funding.--Of the amounts made available for fiscal years 1998 and
1999 for assistance under chapter 4 of part II of the Foreign
Assistance Act of 1961 (22 U.S.C. 2346; relating to the economic
support fund), not more than $19,600,000 for each of the fiscal years
1998 and 1999 shall be available for the United States contribution to
the International Fund for Ireland in accordance with the Anglo-Irish
Agreement Support Act of 1986 (Public Law 99-415).
(b) Additional Requirements.--
(1) Purposes.--Section 2(b) of the Anglo-Irish Agreement
Support Act of 1986 (Public Law 99-415; 100 Stat. 947) is
amended by adding at the end the following new sentences:
``United States contributions shall be used in a manner that
effectively increases employment opportunities in communities
with rates of unemployment significantly higher than the local
or urban average of unemployment in Northern Ireland. In
addition, such contributions shall be used to benefit
individuals residing in such communities.''.
(2) Conditions and understandings.--Section 5(a) of such Act
is amended--
(A) in the first sentence--
(i) by striking ``The United States'' and
inserting the following:
``(1) In general.--The United States'';
(ii) by striking ``in this Act may be used''
and inserting the following: ``in this Act--
``(A) may be used'';
(iii) by striking the period and inserting
``; and''; and
(iv) by adding at the end the following:
``(B) may be provided to an individual or entity in
Northern Ireland only if such individual or entity is
in compliance with the principles of economic
justice.''; and
(B) in the second sentence, by striking ``The
restrictions'' and inserting the following:
``(2) Additional requirements.--The restrictions''.
(3) Prior certifications.--Section 5(c)(2) of such Act is
amended--
(A) in subparagraph (A), by striking ``principle of
equality'' and all that follows and inserting
``principles of economic justice; and''; and
(B) in subparagraph (B), by inserting before the
period at the end the following: ``and will create
employment opportunities in regions and communities of
Northern Ireland suffering the highest rates of
unemployment''.
(4) Annual reports.--Section 6 of such Act is amended--
(A) in paragraph (2), by striking ``and'' at the end;
(B) in paragraph (3), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following new paragraph:
``(4) each individual or entity receiving assistance from
United States contributions to the International Fund has
agreed in writing to comply with the principles of economic
justice.''.
(5) Requirements relating to funds.--Section 7 of such Act is
amended by adding at the end the following:
``(c) Prohibition.--Nothing included herein shall require quotas or
reverse discrimination or mandate their use.''.
(6) Definitions.--Section 8 of such Act is amended--
(A) in paragraph (1), by striking ``and'' at the end;
(B) in paragraph (2), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following new
paragraphs:
``(3) the term `Northern Ireland' includes the counties of
Antrim, Armagh, Derry, Down, Tyrone, and Fermanagh; and
``(4) the term `principles of economic justice' means the
following principles:
``(A) Increasing the representation of individuals
from underrepresented religious groups in the
workforce, including managerial, supervisory,
administrative, clerical, and technical jobs.
``(B) Providing adequate security for the protection
of minority employees at the workplace.
``(C) Banning provocative sectarian or political
emblems from the workplace.
``(D) Providing that all job openings be advertised
publicly and providing that special recruitment efforts
be made to attract applicants from underrepresented
religious groups.
``(E) Providing that layoff, recall, and termination
procedures do not favor a particular religious group.
``(F) Abolishing job reservations, apprenticeship
restrictions, and differential employment criteria
which discriminate on the basis of religion.
``(G) Providing for the development of training
programs that will prepare substantial numbers of
minority employees for skilled jobs, including the
expansion of existing programs and the creation of new
programs to train, upgrade, and improve the skills of
minority employees.
``(H) Establishing procedures to assess, identify,
and actively recruit minority employees with the
potential for further advancement.
``(I) Providing for the appointment of a senior
management staff member to be responsible for the
employment efforts of the entity and, within a
reasonable period of time, the implementation of the
principles described in subparagraphs (A) through
(H).''.
(7) Effective date.--The amendments made by this subsection
shall take effect 180 days after the date of the enactment of
this Act.
SEC. 505. ASSISTANCE FOR TRAINING OF CIVILIAN PERSONNEL OF THE MINISTRY
OF DEFENSE OF THE GOVERNMENT OF NICARAGUA.
Notwithstanding section 531(e) of the Foreign Assistance Act of 1961
(22 U.S.C. 2346(e)), amounts made available for fiscal years 1998 and
1999 for assistance under chapter 4 of part II of such Act (22 U.S.C.
2346; relating to the economic support fund) may be made available for
assistance and training for civilian personnel of the Ministry of
Defense of the Government of Nicaragua if, prior to the provision of
such assistance, the Secretary of State determines and reports to the
Congress that such assistance is necessary to establishing a civilian
Ministry of Defense capable of effective oversight and management of
the Nicaraguan armed forces and ensuring respect for civilian authority
and human rights.
SEC. 506. AVAILABILITY OF AMOUNTS FOR CUBAN LIBERTY AND DEMOCRATIC
SOLIDARITY (LIBERTAD) ACT OF 1996 AND THE CUBAN
DEMOCRACY ACT OF 1992.
Of the amounts made available for fiscal years 1998 and 1999 for
assistance under chapter 4 of part II of the Foreign Assistance Act of
1961 (22 U.S.C. 2346; relating to the economic support fund), not less
than $2,000,000 for each such fiscal year shall be made available to
carry out the programs and activities under the Cuban Liberty and
Democratic Solidarity (LIBERTAD) Act of 1996 (22 U.S.C. 6021 et seq.)
and the Cuban Democracy Act of 1992 (22 U.S.C. 6001 et seq.).
CHAPTER 2--DEVELOPMENT ASSISTANCE
Subchapter A--Development Assistance Authorities
SEC. 511. AUTHORIZATION OF APPROPRIATIONS.
(a) Development Assistance Fund.--The Foreign Assistance Act of 1961
(22 U.S.C. 2151 et seq.) is amended by inserting after section 106 and
before section 107A, as added by this Act, the following:
``SEC. 107. DEVELOPMENT ASSISTANCE FUND.
``(a) Authorization of Appropriations.--There are authorized to be
appropriated to the President to carry out sections 103 through 106, in
addition to amounts otherwise available for such purposes,
$1,203,000,000 for each of the fiscal years 1998 and 1999.
``(b) Additional Use of Amounts.--Of the amounts authorized to be
appropriated under subsection (a)--
``(1) the President may use such amounts as he deems
appropriate to carry out the provisions of section 316 of the
International Security and Development Cooperation Act of 1980;
``(2) $2,500,000 for fiscal year 1998 and $4,000,000 for
fiscal year 1999 may be made available to carry out section 510
of the International Security and Development Cooperation Act
of 1980 (relating to the African Development Foundation) (such
amounts are in addition to amounts otherwise made available to
carry out section 510 of such Act); and
``(3) $2,000,000 for fiscal year 1998 and $7,000,000 for
fiscal year 1999 may be made available to carry out section 401
of the Foreign Assistance Act of 1969 (relating to the Inter-
American Foundation) (such amounts are in addition to amounts
otherwise made available to carry out section 401 of such Act).
``(c) Availability.--The amounts authorized to be appropriated under
subsection (a) are authorized to remain available until expended.''.
(b) Development Fund for Africa.--Section 497 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2294) is amended to read as follows:
``SEC. 497. AVAILABILITY OF AMOUNTS.
``(a) In General.--Of the amounts made available to carry out
sections 103 through 106 (including section 104(c)) for fiscal years
1998 and 1999, not less than $700,000,000 for each of the fiscal years
1998 and 1999 shall be made available to carry out this chapter (in
addition to amounts otherwise available for such purposes).
``(b) Availability.--Amounts made available under subsection (a) are
authorized to remain available until expended.''.
(c) Assistance for the Independent States of the Former Soviet
Union.--Section 498C(a) of the Foreign Assistance Act of 1961 (22
U.S.C. 2295c(a)) is amended by striking ``for fiscal year 1993
$410,000,000'' and inserting ``for economic assistance and related
programs, $839,900,000 for fiscal year 1998 and $789,900,000 for fiscal
year 1999''.
(d) Assistance for East European Countries.--
(1) In general.--There are authorized to be appropriated to
the President, in addition to amounts otherwise available for
such purposes, $471,000,000 for fiscal year 1998 and
$337,000,000 for fiscal year 1999 for economic assistance and
related programs for Eastern Europe and the Baltic states under
the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) and
the Support for East European Democracy (SEED) Act of 1989 (22
U.S.C. 5401 et seq.).
(2) Debt relief for bosnia and herzegovina.--Notwithstanding
any other provision of law, of the amounts authorized to be
appropriated for fiscal years 1998 and 1999 under paragraph
(1), not more than $5,000,000 may be made available for the
cost, as defined in section 502 of the Federal Credit Reform
Act of 1990, of modifying direct loans and loan guarantees for
Bosnia and Herzegovina.
(3) Availability.--Amounts authorized to be appropriated
under paragraph (1) are authorized to remain available until
expended.
(e) Inter-American Foundation.--Section 401(s)(2) of the Foreign
Assistance Act of 1969 (22 U.S.C. 290f(s)(2)) is amended to read as
follows:
``(2)(A) There are authorized to be appropriated to the President to
carry out programs under this section, in addition to amounts otherwise
available for such purposes, $20,000,000 for fiscal year 1998 and
$15,000,000 for fiscal year 1999.
``(B) Amounts authorized to be appropriated under subparagraph (A)
are authorized to remain available until expended.''.
(f) African Development Foundation.--The first sentence of section
510 of the International Security and Development Cooperation Act of
1980 (22 U.S.C. 290h-8) is amended by striking ``$3,872,000 for fiscal
year 1986 and $3,872,000 for fiscal year 1987'' and inserting
``$11,500,000 for fiscal year 1998 and $10,000,000 for fiscal year
1999.''.
SEC. 512. CHILD SURVIVAL ACTIVITIES.
Section 104(c) of the Foreign Assistance Act of 1961 (22 U.S.C.
2151b(c)) is amended to read as follows:
``(c) Assistance for Child Survival, Health, Basic Education for
Children, and Disease Prevention.--
``(1) Authority.--The President is authorized to furnish
assistance, on such terms and conditions as he may determine,
for child survival and health programs, including programs that
address the special health and nutrition needs of children and
mothers, and basic education programs for children. Assistance
under this subsection may be used for the following:
``(A) Activities whose primary purpose is to reduce
child morbidity and child mortality and which have a
substantial, direct, and measurable impact on child
morbidity and child mortality, such as--
``(i) immunization;
``(ii) oral rehydration;
``(iii) activities relating to Vitamin A
deficiency, iodine deficiency, and other
micronutrients;
``(iv) programs designed to reduce child
malnutrition;
``(v) programs to prevent and treat acute
respiratory infections;
``(vi) programs for the prevention,
treatment, and control of, and research on,
polio, malaria and other diseases primarily
affecting children; and
``(vii) programs whose primary purpose is to
prevent neonatal mortality.
``(B) Other child survival activities such as--
``(i) basic integrated health services;
``(ii) assistance for displaced and orphaned
children;
``(iii) safe water and sanitation;
``(iv) health programs, and related education
programs, which primarily address the needs of
mothers and children; and
``(v) related health planning and research.
``(C) Basic education programs for mothers and
children.
``(D) Other disease activities such as programs for
the prevention, treatment and control of, and research
on, tuberculosis, HIV/AIDS, and other diseases.
``(2) Priority.--Child survival activities administered by
the United States Agency for International Development under
this subsection shall be primarily devoted to activities of the
type described in paragraph (1)(A).
``(3) Application of other authorities.--Funds made available
to carry out this subsection that are provided for countries
receiving assistance under chapters 10 and 11 of part I of this
Act or the Support for East European Democracy (SEED) Act of
1989, may be made available--
``(A) only for the activities described in paragraph
(1); and
``(B) except to the extent inconsistent with
subparagraph (A), pursuant to the authorities otherwise
applicable to the provision of assistance for such
countries.
``(4) International organizations.--Funds made available to
carry out this subsection may be used to make contributions on
a grant basis to the United Nations Children's Fund (UNICEF)
pursuant to section 301 of this Act.
``(5) PVO/child survival grants program.--Of amounts made
available to carry out this subsection for a fiscal year, not
less than $30,000,000 should be provided to the private and
voluntary organizations under the PVO/Child Survival grants
program carried out by the United States Agency for
International Development.
``(6) Report.--The Administrator of the United States Agency
for International Development shall report to Congress, as part
of the congressional presentation document required under
section 634 of this Act, the total amounts to be provided for
activities under each subparagraph of paragraph (1).
``(7) Authorization of appropriations.--(A) In addition to
amounts otherwise available for such purposes, and in addition
to amounts made available under section 107, there are
authorized to be appropriated to the President $600,000,000 for
each of the fiscal years 1998 and 1999 for use in carrying out
this subsection.
``(B) Amounts appropriated under this paragraph are
authorized to remain available until expended.
``(8) Designation of fund.--Appropriations pursuant to this
subsection may be referred to as the `Child Survival and
Disease Programs Fund'.''.
SEC. 513. REQUIREMENT ON ASSISTANCE TO THE RUSSIAN FEDERATION.
(a) In General.--Of the amounts made available to carry out chapter
11 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2295 et
seq.) for fiscal years 1998 and 1999, not more than $95,000,000 for
each such fiscal year may be provided to the Russian Federation unless
the President determines and reports to the Congress for each such
fiscal year that--
(1) the Government of the Russian Federation has terminated
all official cooperation with, and transfers of goods and
technology to, ballistic missile or nuclear programs in Iran,
and has taken all appropriate steps to prevent cooperation
with, and transfers of goods and technology to, such programs
in Iran by persons and entities subject to its jurisdiction;
and
(2) the Government of the Russian Federation has terminated
all official cooperation with, and transfers of goods and
technology to, nuclear reactor projects in Cuba, and has taken
all appropriate steps to prevent cooperation with, and
transfers of goods and technology to, such projects in Cuba by
persons and entities subject to its jurisdiction.
(b) Additional Limitation.--
(1) In general.--Notwithstanding subsection (a), none of the
funds made available to carry out chapter 11 of part I of the
Foreign Assistance Act of 1961 (22 U.S.C. 2295 et seq.) for
fiscal years 1998 and 1999 may be made available for the
Russian Federation if the Russian Federation, on or after the
date of the enactment of this Act, transfers an SS-N-22 missile
system to the People's Republic of China.
(2) Exception.--Paragraph (1) shall not apply if the
President determines that making such funds available is
important to the national security interest of the United
States. Any such determination shall cease to be effective 6
months after being made unless the President determines that
its continuation is important to the national security interest
of the United States.
SEC. 514. HUMANITARIAN ASSISTANCE FOR ARMENIA AND AZERBAIJAN.
(a) Sense of the Congress.--It is the sense of the Congress that the
President should seek cooperation from the governments of Armenia and
Azerbaijan to ensure that humanitarian assistance, including assistance
delivered through nongovernmental organizations and private and
voluntary organizations, shall be available to all needy citizens
within Armenia and Azerbaijan, including those individuals in the
region of Nagorno-Karabakh.
(b) Report.--The President shall prepare and transmit a report to the
Congress on humanitarian needs throughout Armenia and Azerbaijan and
the provision of assistance to meet such needs by United States and
other donor organizations and states.
SEC. 515. AGRICULTURAL DEVELOPMENT AND RESEARCH ASSISTANCE.
(a) Findings.--The Congress finds that the proportion of United
States development assistance devoted to agricultural development and
research has declined sharply from 17 percent in 1990 to 8 percent in
1996.
(b) Sense of the Congress.--It is the sense of the Congress that--
(1) United States investment in international agricultural
development and research has been a critical part of many
economic development successes;
(2) agricultural development and research advance food
security, thereby reducing poverty, increasing political
stability, and promoting United States exports; and
(3) the United States Agency for International Development
should increase the emphasis it places on agricultural
development and research and expand the role of agricultural
development and research in poverty relief, child survival, and
environmental programs.
SEC. 516. ACTIVITIES AND PROGRAMS IN LATIN AMERICA AND THE CARIBBEAN
REGION AND THE ASIA AND THE PACIFIC REGION.
Of the amounts made available for fiscal years 1998 and 1999 for
assistance under sections 103 through 106 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2151a through 2151d), including assistance under
section 104(c) of such Act (22 U.S.C. 2151b(c)), the amount made
available for activities and programs in Latin America and the
Caribbean region and the Asia and the Pacific region should be in at
least the same proportion to the total amount of such assistance made
available as the amount identified in the congressional presentation
documents for development assistance for each of the fiscal years 1998
and 1999, respectively, for each such region is to the total amount
requested for development assistance for each such fiscal year.
SEC. 517. SUPPORT FOR AGRICULTURAL DEVELOPMENT ASSISTANCE.
(a) In General.--For each of the fiscal years 1998 and 1999 the
President should allocate an aggregate level to programs under section
103 of the Foreign Assistance Act of 1961 (22 U.S.C. 2151a; relating to
agriculture, rural development, and nutrition) in amounts equal to the
level provided to such programs in fiscal year 1997.
(b) Increasing Levels.--If appropriations for programs under chapter
1 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et
seq.; relating to development assistance) increase in fiscal year 1998
or 1999 above levels provided in fiscal year 1997, the President should
allocate an increasing level for programs under section 103 of such Act
(22 U.S.C. 2151a; relating to agriculture, rural development, and
nutrition).
Subchapter B--Operating Expenses
SEC. 521. OPERATING EXPENSES GENERALLY.
Section 667(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C.
2427(a)(1)) is amended to read as follows:
``(1) $473,000,000 for fiscal year 1998 and $465,000,000 for
fiscal year 1999 for necessary operating expenses of the United
States Agency for International Development (other than the
Office of the Inspector General of such agency);''.
SEC. 522. OPERATING EXPENSES OF THE OFFICE OF THE INSPECTOR GENERAL.
Section 667(a) of the Foreign Assistance Act of 1961 (22 U.S.C.
2427(a)), as amended by this Act, is further amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following:
``(2) $29,047,000 for each of the fiscal years 1998 and 1999
for necessary operating expenses of the Office of the Inspector
General of such agency; and''.
CHAPTER 3--URBAN AND ENVIRONMENTAL CREDIT PROGRAM
SEC. 531. URBAN AND ENVIRONMENTAL CREDIT PROGRAM.
(a) In General.--The heading for title III of chapter 2 of part I of
the Foreign Assistance Act of 1961 is amended to read as follows:
``TITLE III--URBAN AND ENVIRONMENTAL CREDIT PROGRAM''.
(b) Repeals.--(1) Section 222(k) of the Foreign Assistance Act of
1961 (22 U.S.C. 2182(k)) is hereby repealed.
(2) Section 222A of such Act (22 U.S.C. 2182a) is hereby repealed.
(3) Section 223(j) of such Act (22 U.S.C. 2183(j)) is hereby
repealed.
CHAPTER 4--THE PEACE CORPS
SEC. 541. AUTHORIZATION OF APPROPRIATIONS.
Section 3(b) of the Peace Corps Act (22 U.S.C. 2502(b)) is amended to
read as follows:
``(b)(1) There are authorized to be appropriated to carry out the
purposes of this Act $222,000,000 for fiscal year 1998 and $225,000,000
for fiscal year 1999.
``(2) Amounts authorized to be appropriated under paragraph (1)--
``(A) with respect to fiscal year 1998 are authorized to
remain available until September 30, 1999; and
``(B) with respect to fiscal year 1999 are authorized to
remain available until September 30, 2000.''.
SEC. 542. ACTIVITIES OF THE PEACE CORPS IN THE FORMER SOVIET UNION AND
MONGOLIA.
Of the amounts made available for fiscal years 1998 and 1999 to carry
out chapter 11 of part I of the Foreign Assistance Act of 1961 (22
U.S.C. 2295 et seq.; relating to assistance for the independent states
of the former Soviet Union), not more than $11,000,000 for each such
fiscal year shall be available for activities of the Peace Corps in the
independent states of the former Soviet Union (as defined in section 3
of the Freedom for Russia and Emerging Eurasian Democracies and Open
Markets Support Act of 1992) and Mongolia.
SEC. 543. AMENDMENTS TO THE PEACE CORPS ACT.
(a) Terms and Conditions of Volunteer Service.--Section 5 of the
Peace Corps Act (22 U.S.C. 2504) is amended--
(1) in subsection (f)(1)(B), by striking ``Civil Service
Commission'' and inserting ``Office of Personnel Management'';
(2) in subsection (h), by striking ``the Federal Voting
Assistance Act of 1955'' and all that follows through the end
of the subsection and inserting ``sections 5584 and 5732 of
title 5, United States Code (and readjustment allowances paid
under this Act shall be considered as pay for purposes of such
section 5732), section 1 of the Act of June 4, 1920 (22 U.S.C.
214), and section 3342 of title 31, United States Code.''; and
(3) in subsection (j), by striking ``section 1757 of the
Revised Statutes'' and all that follows through the end of the
subsection and inserting ``section 3331 of title 5, United
States Code.''.
(b) General Powers and Authorities.--Section 10 of such Act (22
U.S.C. 2509) is amended--
(1) in subsection (a)(4), by striking ``31 U.S.C. 665(b)''
and inserting ``section 1342 of title 31, United States Code'';
and
(2) in subsection (a)(5), by striking ``Provided, That'' and
all that follows through the end of the paragraph and inserting
``, except that such individuals shall not be deemed employees
for the purpose of any law administered by the Office of
Personnel Management.''.
(c) Utilization of Funds.--Section 15 of such Act (22 U.S.C. 2514) is
amended--
(1) in the first sentence of subsection (c)--
(A) by striking ``Public Law 84-918 (7 U.S.C. 1881 et
seq.)'' and inserting ``subchapter VI of chapter 33 of
title 5, United States Code (5 U.S.C. 3371 et seq.)'';
and
(B) by striking ``specified in that Act'' and
inserting ``or other organizations specified in section
3372(b) of such title''; and
(2) in subsection (d)--
(A) in paragraph (2), by striking ``section 9 of
Public Law 60-328 (31 U.S.C. 673)'' and inserting
``section 1346 of title 31, United States Code'';
(B) in paragraph (6), by striking ``without regard to
section 3561 of the Revised Statutes (31 U.S.C. 543)'';
(C) in paragraph (11)--
(i) by striking ``Foreign Service Act of
1946, as amended (22 U.S.C. 801 et seq.),'' and
inserting ``Foreign Service Act of 1980 (22
U.S.C. 3901 et seq.)''; and
(ii) by striking ``and'' at the end;
(D) in paragraph (12), by striking the period at the
end and by inserting ``; and''; and
(E) by adding at the end the following:
``(13) the transportation of Peace Corps employees, Peace
Corps volunteers, dependents of employees and volunteers, and
accompanying baggage, by a foreign air carrier when the
transportation is between 2 places outside the United States
without regard to section 40118 of title 49, United States
Code.''.
(d) Prohibition on use of Funds for Abortions.--Section 15 of such
Act (22 U.S.C. 2514) is amended, as amended by this Act, is further
amended by adding at the end the following new subsection:
``(e) Funds made available for the purposes of this Act may not be
used to pay for abortions.''.
CHAPTER 5--INTERNATIONAL DISASTER ASSISTANCE
SEC. 551. AUTHORITY TO PROVIDE RECONSTRUCTION ASSISTANCE.
Section 491 of the Foreign Assistance Act of 1961 (22 U.S.C. 2292) is
amended--
(1) in subsection (a), by striking ``and rehabilitation'' and
inserting ``, rehabilitation, and reconstruction, as the case
may be,'';
(2) in subsection (b), by striking ``and rehabilitation'' and
inserting ``, rehabilitation, and reconstruction''; and
(3) in subsection (c), by striking ``and rehabilitation'' and
inserting ``, rehabilitation, and reconstruction''.
SEC. 552. AUTHORIZATIONS OF APPROPRIATIONS.
Section 492(a) of the Foreign Assistance Act of 1961 (22 U.S.C.
2292a(a)) is amended in the first sentence to read as follows: ``There
are authorized to be appropriated to the President to carry out section
491, in addition to funds otherwise available for such purposes,
$190,000,000 for each of the fiscal years 1998 and 1999.''.
CHAPTER 6--DEBT RELIEF
SEC. 561. DEBT RESTRUCTURING FOR FOREIGN ASSISTANCE.
Chapter 6 of part I of the Foreign Assistance Act of 1961 (22 U.S.C.
2271 et seq.) is amended to read as follows:
``CHAPTER 6--DEBT RELIEF
``SEC. 461. SPECIAL DEBT RELIEF FOR POOR COUNTRIES.
``(a) Authority to Reduce Debt.--The President may reduce amounts
owed to the United States Government by a country described in
subsection (b) as a result of--
``(1) loans or guarantees issued under this Act; or
``(2) credits extended or guarantees issued under the Arms
Export Control Act (22 U.S.C. 2751 et seq.).
``(b) Country Described.--A country described in this subsection is a
country--
``(1) with a heavy debt burden that is eligible to borrow
from the International Development Association but not from the
International Bank for Reconstruction and Development (commonly
referred to as an `IDA-only' country);
``(2) the government of which--
``(A) does not have an excessive level of military
expenditures;
``(B) has not repeatedly provided support for acts of
international terrorism; and
``(C) is not failing to cooperate with the United
States on international narcotics control matters;
``(3) the government (including the military or other
security forces of such government) of which does not engage in
a consistent pattern of gross violations of internationally
recognized human rights; and
``(4) that is not ineligible for assistance because of the
application of section 527(a) of the Foreign Relations
Authorization Act, Fiscal Years 1994 and 1995.
``(c) Limitations.--The authority under subsection (a) may be
exercised--
``(1) only to implement multilateral official debt relief ad
referendum agreements (commonly referred to as `Paris Club
Agreed Minutes'); and
``(2) only to the extent that appropriations for the cost of
the modification, as defined in section 502 of the
Congressional Budget Act of 1974, are made in advance.
``(d) Certain Prohibitions Inapplicable.--A reduction of debt
pursuant to the exercise of authority under subsection (a)--
``(1) shall not be considered assistance for purposes of any
provision of law limiting assistance to a country; and
``(2) may be exercised notwithstanding section 620(r) of this
Act or any comparable provision of law.
``(e) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated to
the President for the purpose of carrying out this section and
the Foreign Operations, Export Financing, and Related Programs
Supplemental Appropriations Act, 1994 (title VI of the Foreign
Operations, Export Financing, and Related Programs
Appropriations Act, 1994; Public Law 103-306) $32,000,000 for
each of the fiscal years 1998 and 1999.
``(2) Availability.--Amounts authorized to be appropriated
under paragraph (1) are authorized to remain available until
expended.''.
SEC. 562. DEBT BUYBACKS OR SALES FOR DEBT SWAPS.
Part IV of the Foreign Assistance Act of 1961 (22 U.S.C. 2430 et
seq.) is amended by adding at the end the following:
``SEC. 711. AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES.
``(a) Loans Eligible for Sale, Reduction, or Cancellation.--
``(1) Authority to sell, reduce, or cancel certain loans.--
Notwithstanding any other provision of law, the President may,
in accordance with this section, sell to any eligible purchaser
any concessional loan or portion thereof made before January 1,
1995, pursuant to this Act, to the government of any eligible
country, as defined in section 702(6), or on receipt of payment
from an eligible purchaser or such eligible country, reduce or
cancel such loan or portion thereof, only for the purpose of
facilitating--
``(A) debt-for-equity swaps, debt-for-development
swaps, or debt-for-nature swaps; or
``(B) a debt buyback by an eligible country of its
own qualified debt, only if the eligible country uses
an additional amount of the local currency of the
eligible country, equal to not less than 40 percent of
the price paid for such debt by such eligible country,
or the difference between the price paid for such debt
and the face value of such debt, to support activities
(i) that link conservation and sustainable use of
natural resources with local community development, and
(ii) for child survival and other child development
activities, in a manner consistent with sections 707
through 710, if the sale, reduction, or cancellation
would not contravene any term or condition of any prior
agreement relating to such loan.
``(2) Terms and conditions.--Notwithstanding any other
provision of law, the President shall, in accordance with this
section, establish the terms and conditions under which loans
may be sold, reduced, or canceled pursuant to this section.
``(3) Administration.--The Facility, as defined in section
702(8), shall notify the Administrator of the United States
Agency for International Development of purchasers that the
President has determined to be eligible, and shall direct such
agency to carry out the sale, reduction, or cancellation of a
loan pursuant to this section. Such agency shall make an
adjustment in its accounts to reflect the sale, reduction, or
cancellation.
``(4) Limitation.--To the extent that appropriations for the
cost of the modification, as defined in section 502 of the
Congressional Budget Act of 1974, are necessary, the
authorities of this subsection shall be available only where
such appropriations are made in advance.
``(b) Deposit of Proceeds.--The proceeds from the sale, reduction, or
cancellation of any loan sold, reduced, or canceled pursuant to this
section shall be deposited in an account or accounts established in the
Treasury for the repayment of such loan.
``(c) Eligible Purchasers.--A loan may be sold pursuant to subsection
(a)(1)(A) only to a purchaser who presents plans satisfactory to the
President for using the loan for the purpose of engaging in debt-for-
equity swaps, debt-for-development swaps, or debt-for-nature swaps.
``(d) Debtor Consultations.--Before the sale to any eligible
purchaser, or any reduction or cancellation pursuant to this section,
of any loan made to an eligible country, the President shall consult
with the country concerning the amount of loans to be sold, reduced, or
canceled and their uses for debt-for-equity swaps, debt-for-development
swaps, or debt-for-nature swaps.''.
CHAPTER 7--OTHER ASSISTANCE PROVISIONS
SEC. 571. EXEMPTION FROM RESTRICTIONS ON ASSISTANCE THROUGH
NONGOVERNMENTAL ORGANIZATIONS.
Section 123(e) of the Foreign Assistance Act of 1961 (22 U.S.C.
2151u(e)) is amended to read as follows:
``(e)(1) Subject to paragraph (3), restrictions contained in this Act
or any other provision of law with respect to assistance for a country
shall not be construed to restrict assistance under this chapter,
chapter 10, and chapter 11 of this part, chapter 4 of part II, or the
Support for East European Democracy (SEED) Act of 1989 (22 U.S.C. 5401
et seq.), in support of programs of nongovernmental organizations.
``(2) The President shall take into consideration, in any case in
which a restriction on assistance for a country would be applicable but
for this subsection, whether assistance for programs of nongovernmental
organizations is in the national interest of the United States.
``(3) Whenever the authority of this subsection is used to furnish
assistance in support of a program of a nongovernmental organization,
the President shall notify the congressional committees specified in
section 634A(a) of this Act in accordance with procedures applicable to
reprogramming notifications under that section. Such notification shall
describe the program assisted, the assistance provided, and the reasons
for furnishing such assistance.''.
SEC. 572. FUNDING REQUIREMENTS RELATING TO UNITED STATES PRIVATE AND
VOLUNTARY ORGANIZATIONS.
(a) In General.--Section 123(g) of the Foreign Assistance Act of 1961
(22 U.S.C. 2151u(g)) is amended to read as follows:
``(g) Funds made available to carry out this chapter or chapter 10 of
this part may not be made available to any United States private and
voluntary organization, except any cooperative development
organization, that obtains less than 20 percent of its total annual
funding for its international activities from sources other than the
United States Government.''.
(b) Effective Date.--The amendment made by subsection (a) applies
with respect to funds made available for programs of any United States
private and voluntary organization on or after the date of the
enactment of this Act.
SEC. 573. DOCUMENTATION REQUESTED OF PRIVATE AND VOLUNTARY
ORGANIZATIONS.
Section 620 of the Foreign Assistance Act of 1961 (22 U.S.C. 2370) is
amended by inserting after subsection (u) the following:
``(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
United States Agency for International Development; or
``(2) is not registered with the United States Agency for
International Development.''.
SEC. 574. ENCOURAGEMENT OF FREE ENTERPRISE AND PRIVATE PARTICIPATION.
Section 601(a) of the Foreign Assistance Act of 1961 (22 U.S.C.
2351(a)) is amended--
(1) by striking ``(a)'' and inserting ``(a)(1)''; and
(2) by adding the following:
``(2) To the maximum extent feasible, in providing assistance under
Part I of this Act, the President should give special emphasis to
programs and activities thatencourage the creation and development of
private enterprise and free market systems, including--
``(A) the development of private cooperatives, credit unions,
labor unions, and civic and professional associations;
``(B) the reform and restructuring of banking and financial
systems; and
``(C) the development and strengthening of commercial laws
and regulations, including laws and regulations to protect
intellectual property.''.
SEC. 575. SENSE OF THE CONGRESS RELATING TO UNITED STATES COOPERATIVES
AND CREDIT UNIONS.
It is the sense of the Congress that--
(1) United States cooperatives and cooperative development
organizations and credit unions can provide an opportunity for
people in developing countries to participate directly in
democratic decisionmaking for their economic and social benefit
through ownership and control of business enterprises and
through the mobilization of local capital and savings; and
(2) such organizations should be utilized in fostering
democracy, free markets, community-based development, and self-
help projects.
SEC. 576. FOOD ASSISTANCE TO THE DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.
None of the funds made available in this division and the amendments
made by this division shall be made available for assistance for food
to the Democratic People's Republic of Korea unless the President
certifies to the Congress that--
(1) the Government of the Republic of Korea does not oppose
the delivery of United States assistance for food to the
Democratic People's Republic of Korea;
(2) the United States Government is confident that previous
United States assistance for food and official concessional
food deliveries have not been diverted to military needs;
(3) military stocks of the Democratic People's Republic of
Korea have been tapped to respond to unmet food aid needs;
(4) the World Food Program and other international food
delivery organizations have been permitted to take and have
taken all reasonable steps to ensure that all upcoming food aid
deliveries will not be diverted from intended recipients; and
(5) the Government of the United States has directly acted to
encourage, and acting through appropriate international
organizations, has encouraged such organizations to urge, the
Democratic People's Republic of Korea to initiate fundamental
structural reforms of its agricultural sector.
SEC. 577. WITHHOLDING OF ASSISTANCE TO COUNTRIES THAT PROVIDE NUCLEAR
FUEL TO CUBA.
(a) In General.--Section 620 of the Foreign Assistance Act of 1961
(22 U.S.C. 2370), as amended by this Act, is further amended by adding
at the end the following:
``(y)(1) Except as provided in paragraph (2), the President shall
withhold from amounts made available under this Act or any other Act
and allocated for a country for a fiscal year an amount equal to the
aggregate value of nuclear fuel and related assistance and credits
provided by that country, or any entity of that country, to Cuba during
the preceding fiscal year.
``(2) The requirement to withhold assistance for a country for a
fiscal year under paragraph (1) shall not apply if Cuba--
``(A) has ratified the Treaty on the Non-
Proliferation of Nuclear Weapons (21 UST 483) or the
Treaty of Tlatelelco, and Cuba is in compliance with
the requirements of either such Treaty;
``(B) has negotiated and is in compliance with full-
scope safeguards of the International Atomic Energy
Agency not later than two years after ratification by
Cuba of such Treaty; and
``(C) incorporates and is in compliance with
internationally accepted nuclear safety standards.
``(3) The Secretary of State shall prepare and submit to the Congress
each year a report containing a description of the amount of nuclear
fuel and related assistance and credits provided by any country, or any
entity of a country, to Cuba during the preceding year, including the
terms of each transfer of such fuel, assistance, or credits.''.
(b) Effective Date.--Section 620(y) of the Foreign Assistance Act of
1961, as added by subsection (a), shall apply with respect to
assistance provided in fiscal years beginning on or after the date of
the enactment of this Act.
TITLE VI--TRADE AND DEVELOPMENT AGENCY
SEC. 601. AUTHORIZATION OF APPROPRIATIONS.
Section 661(f)(1)(A) of the Foreign Assistance Act of 1961 (22 U.S.C.
2421(f)(1)(A)) is amended to read as follows:
``(1) Authorization.--(A) There are authorized to be
appropriated for purposes of this section, in addition to funds
otherwise available for such purposes, $43,000,000 for each of
the fiscal years 1998 and 1999.''.
TITLE VII--SPECIAL AUTHORITIES AND OTHER PROVISIONS
CHAPTER 1--SPECIAL AUTHORITIES
SEC. 701. ENHANCED TRANSFER AUTHORITY.
Section 610 of the Foreign Assistance Act of 1961 (22 U.S.C. 2360) is
amended to read as follows:
``SEC. 610. TRANSFER BETWEEN ACCOUNTS.
``(a) General Authority.--Whenever the President determines it to be
necessary for the purposes of this Act or the Arms Export Control Act
(22 U.S.C. 2751 et seq.), not to exceed 20 percent of the funds made
available to carry out any provision of this Act (except funds made
available pursuant to title IV of chapter 2 of part I) or section 23 of
the Arms Export Control Act (22 U.S.C. 2763)--
``(1) may be transferred to, and consolidated with, the funds
in any other account or fund available to carry out any
provision of this Act or the Arms Export Control Act; and
``(2) may be used for any purpose for which funds in that
account or fund may be used.
``(b) Limitation on Amount of Increase.--The total amount in the
account or fund for the benefit of which transfer is made under
subsection (a) during any fiscal year may not be increased by more than
20 percent of the amount of funds otherwise made available.
``(c) Notification.--The President shall notify in writing the
congressional committees specified in section 634A at least fifteen
days in advance of each such transfer between accounts in accordance
with procedures applicable to reprogramming notifications under such
section.''.
SEC. 702. AUTHORITY TO MEET UNANTICIPATED CONTINGENCIES.
Paragraph (1) of section 451(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2261(a)(1)) is amended by striking ``$25,000,000'' and
inserting ``$50,000,000''.
SEC. 703. SPECIAL WAIVER AUTHORITY.
(a) Laws Affected.--Section 614 of the Foreign Assistance Act of 1961
(22 U.S.C. 2364) is amended by striking subsections (a)(1) and (a)(2)
and inserting the following:
``(a) Authority To Authorize Assistance, Sales, and Other Actions;
Limitations.--(1) The President may authorize assistance, sales, or
other action under this Act, the Arms Export Control Act, or any annual
(or periodic) foreign assistance authorization or appropriations
legislation, without regard to any of the provisions described in
subsection (b), if the President determines, and notifies in writing
the Speaker of the House of Representatives and the chairman of the
Committee on Foreign Relations of the Senate--
``(A) with respect to assistance or other actions under
chapter 2 or 5 of part II of this Act, or assistance, sales, or
other actions under the Arms Export Control Act, that to do so
is vital to the national security interests of the United
States; and
``(B) with respect to other assistance or actions that to do
so is important to the national interests of the United States.
``(2) The President may waive any provision described in paragraph
(1), (2), or (3) of subsection (b) that would otherwise prohibit or
restrict assistance or other action under any provision of law not
described in those paragraphs if the President determines, and notifies
in writing the Speaker of the House of Representatives andthe chairman
of the Committee on Foreign Relations of the Senate, that to do so is
important to the national interests of the United States.''.
(b) Annual Ceilings.--Section 614(a)(4) of such Act (22 U.S.C.
2364(a)(4)) is amended--
(1) in subparagraph (A)--
(A) in clause (i), by striking ``$750,000,000'' and
inserting ``$1,000,000,000'';
(B) in clause (ii), by striking ``$250,000,000'' and
inserting ``$500,000,000''; and
(C) in clause (iii), by striking ``$100,000,000'' and
inserting ``$200,000,000''; and
(2) in subparagraph (C)--
(A) by striking ``$50,000,000'' and inserting
``$75,000,000''; and
(B) by striking $1,000,000,000'' and inserting
``$1,500,000,000''.
(c) Laws Which May Be Waived.--Section 614 of such Act (22 U.S.C.
2364) is amended by striking subsections (b) and (c) and inserting the
following:
``(b) Laws Which May Be Waived.--The provisions referred to in
paragraphs (1) and (2) of subsection (a) are--
``(1) the provisions of this Act;
``(2) the provisions of the Arms Export Control Act;
``(3) the provisions of any annual (or periodic) foreign
assistance authorization or appropriations legislation,
including any amendment made by any such Act;
``(4) any other provision of law that restricts assistance,
sales or leases, or other action under the Acts referred to in
paragraph (1), (2), or (3); and
``(5) any law relating to receipts and credits accruing to
the United States.''.
(d) Conforming Amendment.--Section 614(a)(4)(B) of such Act (22 U.S.C
2364(a)(4)(B)) is amended by striking ``the Arms Export Control Act or
under''.
SEC. 704. TERMINATION OF ASSISTANCE.
Section 617 of the Foreign Assistance Act of 1961 (22 U.S.C. 2367) is
amended to read as follows:
``SEC. 617. TERMINATION OF ASSISTANCE.
``(a) In General.--(1) In order to ensure the effectiveness of
assistance provided under this Act, notwithstanding any other provision
of law, funds made available under this Act or the Arms Export Control
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
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 programs, 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. 705. LOCAL ASSISTANCE TO HUMAN RIGHTS GROUPS IN CUBA.
Section 109 of the Cuban Liberty and Democratic Solidarity (LIBERTAD)
Act of 1996 (22 U.S.C. 6039) is amended by adding at the end the
following:
``(d) Local Assistance.--
``(1) In general.--For the purposes of providing assistance
to independent nongovernmental organizations and individuals in
Cuba as authorized by subsection (a), amounts made available
under such subsection may be used for assistance to individuals
and nongovernmental organizations in Cuba and for local costs
incurred in delivering such assistance.
``(2) Certification.--A certification by a representative of
a United States or local nongovernmental organization, or other
entity, administering assistance described in paragraph (1),
that such assistance is being used for its intended purpose,
shall be deemed to satisfy any accountability requirement of
the United States Agency for International Development for the
administration of such assistance.''.
CHAPTER 2--REPEALS
SEC. 711. REPEAL OF OBSOLETE PROVISIONS.
(a) 1987 Foreign Assistance Appropriations Act.--Section 539(g)(2) of
the Foreign Assistance and Related Programs Appropriations Act, 1987,
as included in Public Law 99-591, is hereby repealed.
(b) 1986 Assistance Act.--The Special Foreign Assistance Act of 1986
is hereby repealed except for section 1, section 204, and title III of
such Act.
(c) 1985 Assistance Act.--The International Security and Development
Cooperation Act of 1985 is hereby repealed except for section 1,
section 131, section 132, section 502, section 504, section 505, part B
of title V (other than section 558 and section 559), section 1302,
section 1303, and section 1304.
(d) 1985 Jordan Supplemental Act.--The Jordan Supplemental Economic
Assistance Authorization Act of 1985 is hereby repealed.
(e) 1985 African Famine Act.--The African Famine Relief and Recovery
Act of 1985 is hereby repealed.
(f) 1983 Assistance Act.--The International Security and Development
Assistance Authorization Act of 1983 is hereby repealed.
(g) 1983 Lebanon Assistance Act.--The Lebanon Emergency Assistance
Act of 1983 is hereby repealed.
(h) 1981 Assistance Act.--The International Security and Development
Cooperation Act of 1981 is hereby repealed except for section 1,
section 709, and section 714.
(i) 1980 Assistance Act.--The International Security and Development
Cooperation Act of 1980 is hereby repealed except for section 1,
section 110, section 316, and title V.
(j) 1979 Development Assistance Act.--The International Development
Cooperation Act of 1979 is hereby repealed.
(k) 1979 Security Assistance Act.--The International Security
Assistance Act of 1979 is hereby repealed.
(l) 1979 Special Security Assistance Act.--The Special International
Security Assistance Act of 1979 is hereby repealed.
(m) 1978 Development Assistance Act.--The International Development
and Food Assistance Act of 1978 is hereby repealed, except for section
1, title IV, and section 603(a)(2).
(n) 1978 Security Assistance Act.--The International Security
Assistance Act of 1978 is hereby repealed.
(o) 1977 Development Assistance Act.--The International Development
and Food Assistance Act of 1977 is hereby repealed except for section
1, section 132(b), and section 133.
(p) 1977 Security Assistance Act.--The International Security
Assistance Act of 1977 is hereby repealed.
(q) 1976 Security Assistance Act.--The International Security
Assistance and Arms Export Control Act of 1976 is hereby repealed
except for section 1, section 201(b), section 212(b), section 601, and
section 608.
(r) 1975 Development Assistance Act.--The International Development
and Food Assistance Act of 1975 is hereby repealed.
(s) 1975 BIB Act.--Public Law 94-104 is hereby repealed.
(t) 1974 Assistance Act.--The Foreign Assistance Act of 1974 is
hereby repealed.
(u) 1973 Emergency Assistance Act.--The Emergency Security Assistance
Act of 1973 is hereby repealed.
(v) 1973 Assistance Act.--The Foreign Assistance Act of 1973 is
hereby repealed.
(w) 1971 Assistance Act.--The Foreign Assistance Act of 1971 is
hereby repealed.
(x) 1971 Special Assistance Act.--The Special Foreign Assistance Act
of 1971 is hereby repealed.
(y) 1969 Assistance Act.--The Foreign Assistance Act of 1969 is
hereby repealed except for the first section and part IV.
(z) 1968 Assistance Act.--The Foreign Assistance Act of 1968 is
hereby repealed.
(aa) 1964 Assistance Act.--The Foreign Assistance Act of 1964 is
hereby repealed.
(bb) Latin American Development Act.--The Latin American Development
Act is hereby repealed.
(cc) 1959 Mutual Security Act.--The Mutual Security Act of 1959 is
hereby repealed.
(dd) 1954 Mutual Security Act.--Sections 402 and 417 of the Mutual
Security Act of 1954 are hereby repealed.
(ee) Department of State Authorization Act, Fiscal Years 1982 and
1983.--Section 109 of the Department of State Authorization Act, Fiscal
Years 1982 and 1983, is hereby repealed.
(ff) Department of State Authorization Act, Fiscal Years 1984 and
1985.--Sections 1004 and 1005(a) of the Department of State
Authorization Act, Fiscal Years 1984 and 1985, are hereby repealed.
(gg) 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.
DIVISION B--FOREIGN RELATIONS AUTHORIZATIONS ACT
TITLE X--GENERAL PROVISIONS
SEC. 1001. SHORT TITLE.
This division may be cited as the ``Foreign Relations Authorization
Act, Fiscal Years 1998 and 1999'' and shall be effective for all
purposes as if enacted as a separate Act.
SEC. 1002. STATEMENT OF HISTORY OF LEGISLATION.
This division consists of H.R. 1253, the Foreign Relations
Authorization Act, Fiscal Years 1998 and 1999, which was introduced by
Representative Smith of New Jersey on April 9, 1997, and amended and
reported by the Subcommittee on International Operations and Human
Rights of the Committee on International Relations on April 10, 1997.
SEC. 1003. DEFINITIONS.
The following terms have the following meanings for the purposes of
this division:
(1) The term ``AID'' means the Agency for International
Development.
(2) The term ``ACDA'' means the United States Arms Control
and Disarmament Agency.
(3) The term ``appropriate congressional committees'' means
the Committee on International Relations of the House of
Representatives and the Committee of Foreign Relations of the
Senate.
(4) The term ``Department'' means the Department of State.
(5) The term ``Federal agency'' has the meaning given to the
term ``agency'' by section 551(1) of title 5, United States
Code.
(6) The term ``Secretary'' means the Secretary of State.
(7) The term ``USIA'' means the United States Information
Agency.
TITLE XI--AUTHORIZATION OF APPROPRIATIONS FOR DEPARTMENT OF STATE AND
CERTAIN INTERNATIONAL AFFAIRS FUNCTIONS AND ACTIVITIES
SEC. 1101. ADMINISTRATION OF FOREIGN AFFAIRS.
The following amounts are authorized to be appropriated for the
Department of State under ``Administration of Foreign Affairs'' to
carry out the authorities, functions, duties, and responsibilities in
the conduct of the foreign affairs of the United States and for other
purposes authorized by law, including the diplomatic security program:
(1) Diplomatic and consular programs.--For ``Diplomatic and
Consular Programs'', of the Department of State $1,291,977,000
for the fiscal year 1998 and $1,291,977,000 for the fiscal year
1999.
(2) Salaries and expenses.--
(A) Authorization of appropriations.--For ``Salaries
and Expenses'', of the Department of State $363,513,000
for the fiscal year 1998 and $363,513,000 for the
fiscal year 1999.
(B) Limitations.--Of the amounts authorized to be
appropriated by subparagraph (A) $2,000,000 for fiscal
year 1998 and $2,000,000 for fiscal year 1999 are
authorized to be appropriated only for the recruitment
of minorities for careers in the Foreign Service and
international affairs.
(3) Capital investment fund.--For ``Capital Investment
Fund'', of the Department of State $64,600,000 for the fiscal
year 1998 and $64,600,000 for the fiscal year 1999.
(4) Security and maintenance of buildings abroad.--For
``Security and Maintenance of Buildings Abroad'', $373,081,000
for the fiscal year 1998 and $373,081,000 for the fiscal year
1999.
(5) Representation allowances.--For ``Representation
Allowances'', $4,300,000 for the fiscal year 1998 and
$4,300,000 for the fiscal year 1999.
(6) Emergencies in the diplomatic and consular service.--For
``Emergencies in the Diplomatic and Consular Service'',
$5,500,000 for the fiscal 1998 and $5,500,000 for the fiscal
year 1999.
(7) Office of the inspector general.--For ``Office of the
Inspector General'', $28,300,000 for the fiscal year 1998 and
$28,300,000 for the fiscal year 1999.
(8) Payment to the american institute in taiwan.--For
``Payment to the American Institute in Taiwan'', $14,490,000
for the fiscal year 1998 and $14,490,000 for the fiscal year
1999.
(9) Protection of foreign missions and officials.--For
``Protection of Foreign Missions and Officials'', $7,900,000
for the fiscal year 1998 and $7,900,000 for the fiscal year
1999.
(10) Repatriation loans.--For ``Repatriation Loans'',
$1,200,000 for the fiscal year 1998 and $1,200,000 for the
fiscal year 1999, for administrative expenses.
SEC. 1102. INTERNATIONAL ORGANIZATIONS, PROGRAMS, AND CONFERENCES.
(a) Assessed Contributions to International Organizations.--There are
authorized to be appropriated for ``Contributions to International
Organizations'', $960,389,000 for the fiscal year 1998 and $987,590,000
for the fiscal year 1999 for the Department of State to carry out the
authorities, functions, duties, and responsibilities in the conduct of
the foreign affairs of the United States with respect to international
organizations and to carry out other authorities in law consistent with
such purposes.
(b) Voluntary Contributions to International Organizations.--
(1) Authorization of appropriations.--There are authorized to
be appropriated for ``Voluntary Contributions to International
Organizations'', $199,725,000 for the fiscal year 1998 and
$199,725,000 for the fiscal year 1999.
(2) Limitations.--
(A) World food program.--Of the amounts authorized to
be appropriated under paragraph (1), $5,000,000 for the
fiscal year 1998 and $5,000,000 for the fiscal year
1999 are authorized to be appropriated only for a
United States contribution to the World Food Program.
(B) United nations voluntary fund for victims of
torture.--Of the amount authorized to be appropriated
under paragraph (1), $3,000,000 for the fiscal year
1998 and $3,000,000 for the fiscal year 1999 are
authorized to be appropriated only for a United States
contribution to the United Nations Voluntary Fund for
Victims of Torture.
(C) International program on the elimination of child
labor.--Of the amounts authorized to be appropriated
under paragraph (1), $10,000,000 for the fiscal year
1998 and $10,000,000 for the fiscal year 1999 are
authorized to be appropriated only for a United States
contribution to the International Labor Organization
for the activities of the International Program on the
Elimination of Child Labor.
(3) Availability of funds.--Amounts authorized to be
appropriated under paragraph (1) are authorized to remain
available until expended.
(c) Assessed Contributions for International Peacekeeping
Activities.--There are authorized to be appropriated for
``Contributions for International Peacekeeping Activities'',
$240,000,000 for the fiscal year 1998 and $240,000,000 for the fiscal
year 1999 for the Department of State to carry out the authorities,
functions, duties, and responsibilities in the conduct of the foreign
affairs of the United States with respect to international peacekeeping
activities and to carry out other authorities in law consistent with
such purposes.
(d) Voluntary Contributions to Peacekeeping Operations.--There are
authorized to be appropriated for ``Peacekeeping Operations'',
$87,600,000 for the fiscal year 1998 and $67,000,000 for the fiscal
year 1999 for the Department of State to carry out section 551 of
Public Law 87-195.
(e) International Conferences and Contingencies.--There are
authorized to be appropriated for ``International Conferences and
Contingencies'', $3,000,000 for the fiscal year 1998 and $3,000,000 for
the fiscal year 1999 for the Department of State to carry out the
authorities, functions, duties, and responsibilities in the conduct of
the foreign affairs of the United States with respect to international
conferences and contingencies and to carry out other authorities in law
consistent with such purposes.
(f) Foreign Currency Exchange Rates.--In addition to amounts
otherwise authorized to be appropriated by subsections (a) and (b) of
this section, there are authorized to be appropriated such sums as may
be necessary for each of the fiscal years 1998 and 1999 to offset
adverse fluctuations in foreign currency exchange rates. Amounts
appropriated under this subsection shall be available for obligation
and expenditure only to the extent that the Director of the Office of
Management and Budget determines and certifies to Congress that such
amounts are necessary due to such fluctuations.
(g) Limitation on United States Voluntary Contributions to United
Nations Development Program.--
(1) Of the amounts made available for fiscal years 1998 and
1999 for United States voluntary contributions to the United
Nations Development Program an amount equal to the amount the
United Nations Development Program will spend in Burma during
each fiscal year shall be withheld unless during such fiscal
year, the President submits to the appropriate congressional
committees the certification described in paragraph (2).
(2) The certification referred to in paragraph (1) is a
certification by the President that all programs and activities
of the United Nations Development Program (including United
Nations Development Program--Administered Funds) in Burma--
(A) are focused on eliminating human suffering and
addressing the needs of the poor;
(B) are undertaken only through international or
private voluntary organizations that have been deemed
independent of the State Law and Order Restoration
Council (SLORC), after consultation with the leadership
of the National League for Democracy and the leadership
of the National Coalition Government of the Union of
Burma;
(C) provide no financial, political, or military
benefit to the SLORC; and
(D) are carried out only after consultation with the
leadership of the National League for Democracy and the
leadership of the National Coalition Government of the
Union of Burma.
SEC. 1103. INTERNATIONAL COMMISSIONS.
The following amounts are authorized to be appropriated under
``International Commissions'' for the Department of State to carry out
the authorities, functions, duties, and responsibilities in the conduct
of the foreign affairs of the United States and for other purposes
authorized by law:
(1) International boundary and water commission, united
states and mexico.--For ``International Boundary and Water
Commission, United States and Mexico''--
(A) for ``Salaries and Expenses'' $18,490,000 for the
fiscal year 1998 and $18,490,000 for the fiscal year
1999; and
(B) for ``Construction'' $6,493,000 for the fiscal
year 1998 and $6,493,000 for the fiscal year 1999.
(2) International boundary commission, united states and
canada.--For ``International Boundary Commission, United States
and Canada'', $785,000 for the fiscal year 1998 and $785,000
for the fiscal year 1999.
(3) International joint commission.--For ``International
Joint Commission'', $3,225,000 for the fiscal year 1998 and
$3,225,000 for the fiscal year 1999.
(4) International fisheries commissions.--For ``International
Fisheries Commissions'', $14,549,000 for the fiscal year 1998
and $14,549,000 for the fiscal year 1999.
SEC. 1104. MIGRATION AND REFUGEE ASSISTANCE.
(a) Migration and Refugee Assistance.--
(1) Authorization of appropriations.--There are authorized to
be appropriated for ``Migration and Refugee Assistance'' for
authorized activities, $623,000,000 for the fiscal year 1998
and $623,000,000 for the fiscal year 1999.
(2) Limitation Regarding Tibetan Refugees in India and
Nepal.--Of the amounts authorized to be appropriated in
paragraph (1), $1,000,000 for the fiscal year 1998 and
$1,000,000 for the fiscal year 1999 are authorized to be
available only for humanitarian assistance, including but not
limited to food, medicine, clothing, and medical and vocational
training, to Tibetan refugees in India and Nepal who have fled
Chinese-occupied Tibet.
(b) Refugees Resettling in Israel.--There are authorized to be
appropriated $80,000,000 for the fiscal year 1998 and $80,000,000 for
the fiscal year 1999 for assistance for refugees resettling in Israel
from other countries.
(c) Humanitarian Assistance for Displaced Burmese.--There are
authorized to be appropriated $1,500,000 for the fiscal year 1998 and
$1,500,000 for the fiscal year 1999 for humanitarian assistance,
including but not limited to food, medicine, clothing, and medical and
vocational training, to persons displaced as a result of civil conflict
in Burma, including persons still within Burma.
(d) Availability of Funds.--Funds appropriated pursuant to this
section are authorized to be available until expended.
SEC. 1105. ASIA FOUNDATION.
There are authorized to be appropriated for ``Asia Foundation'',
$10,000,000 for the fiscal year 1998 and $10,000,000 for the fiscal
year 1999 for the Department of State to carry out the authorities,
functions, duties, and responsibilities in the conduct of the foreign
affairs of the United States with respect to Asia Foundation and to
carry out other authorities in law consistent with such purposes.
SEC. 1106. UNITED STATES INFORMATIONAL, EDUCATIONAL, AND CULTURAL
PROGRAMS.
The following amounts are authorized to be appropriated to carry out
international information activities and educational and cultural
exchange programs under the United States Information and Educational
Exchange Act of 1948, the Mutual Educational and Cultural Exchange Act
of 1961, Reorganization Plan Number 2 of 1977, the United States
International Broadcasting Act of 1994, the Radio Broadcasting to Cuba
Act, the Television Broadcasting to Cuba Act, the Board for
International Broadcasting Act, the North/South Center Act of 1991, the
National Endowment for Democracy Act, and to carry out other
authorities in law consistent with such purposes:
(1) Salaries and expenses.--For ``Salaries and Expenses'',
$434,097,000 for the fiscal year 1998 and $434,097,000 for the
fiscal year 1999.
(2) Technology fund.--For ``Technology Fund'' for the United
States Information Agency, $6,350,000 for the fiscal year 1998
and $6,350,000 for the fiscal year 1999.
(3) Educational and cultural exchange programs.--
(A) Fulbright academic exchange programs.--For the
``Fulbright Academic Exchange Programs'', $94,236,000
for the fiscal year 1998 and $94,236,000 for the fiscal
year 1999.
(B) South pacific exchanges.--For the ``South Pacific
Exchanges'', $500,000 for the fiscal year 1998 and
$500,000 for the fiscal year 1999.
(C) East timorese scholarships.--For the ``East
Timorese Scholarships'', $500,000 for the fiscal year
1998 and $500,000 for the fiscal year 1999.
(D) Tibetan exchanges.--For the ``Educational and
Cultural Exchanges with Tibet'' under section 236 of
the Foreign Relations Authorization Act, Fiscal Years
1994 and 1995 (Public Law 103-236), $500,000 for the
fiscal year 1998 and $500,000 for the fiscal year 1999.
(E) Other programs.--For ``Hubert H. Humphrey
Fellowship Program'', ``Edmund S. Muskie Fellowship
Program'', ``International Visitors Program'', ``Mike
Mansfield Fellowship Program'', ``Claude and Mildred
Pepper Scholarship Program of the Washington Workshops
Foundation'', ``Citizen Exchange Programs'',
``Congress-Bundestag Exchange Program'', ``Newly
Independent States and Eastern Europe Training'', and
``Institute for Representative Government'',
$97,995,000 for the fiscal year 1998 and $97,995,000
for the fiscal year 1999.
(4) International broadcasting activities.--
(A) Authorization of appropriations.--For
``International Broadcasting Activities'', $334,655,000
for the fiscal year 1998, and $334,655,000 for the
fiscal year 1999.
(B) Allocation.--Of the amounts authorized to be
appropriated under subparagraph (A), the Director of
the United States Information Agency and the Board of
Broadcasting Governors shall seek to ensure that the
amounts made available for broadcasting to nations
whose people do not fully enjoy freedom of expression
do not decline in proportion to the amounts made
available for broadcasting to other nations.
(5) Radio construction.--For ``Radio Construction'',
$30,000,000 for the fiscal year 1998, and $30,000,000 for the
fiscal year 1999.
(6) Radio free asia.--For ``Radio Free Asia'', $10,000,000
for the fiscal year 1998 and $10,000,000 for the fiscal year
1999.
(7) Broadcasting to cuba.--For ``Broadcasting to Cuba'',
$22,095,000 for the fiscal year 1998 and $22,095,000 for the
fiscal year 1999.
(8) Center for cultural and technical interchange between
east and west.--For ``Center for Cultural and Technical
Interchange between East and West'', $10,000,000 for the fiscal
year 1998 and $10,000,000 for the fiscal year 1999.
(9) National endowment for democracy.--For ``National
Endowment for Democracy'', $30,000,000 for the fiscal year 1998
and $30,000,000 for the fiscal year 1999.
(10) Center for cultural and technical interchange between
north and south.--For ``Center for Cultural and Technical
Interchange between North and South'', $2,000,000 for the
fiscal year 1998 and $2,000,000 for the fiscal year 1999.
SEC. 1107. UNITED STATES ARMS CONTROL AND DISARMAMENT.
There are authorized to be appropriated to carry out the purposes of
the Arms Control and Disarmament Act--
(1) $44,000,000 for the fiscal year 1998 and $44,000,000 for
the fiscal year 1999; and
(2) such sums as may be necessary for each of the fiscal
years 1998 and 1999 for increases in salary, pay, retirement,
other employee benefits authorized by law, and to offset
adverse fluctuations in foreign currency exchange rates.
TITLE XII--DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES
CHAPTER 1--AUTHORITIES AND ACTIVITIES
SEC. 1201. REVISION OF DEPARTMENT OF STATE REWARDS PROGRAM.
(a) In General.--Section 36 of the State Department Basic Authorities
Act of 1956 (22 U.S.C. 2708) is amended to read as follows:
``SEC. 36. DEPARTMENT OF STATE REWARDS PROGRAM.
``(a) Establishment.--(1) There is established a program for the
payment of rewards to carry out the purposes of this section.
``(2) The rewards program established by this section shall be
administered by the Secretary of State, in consultation, where
appropriate, with the Attorney General.
``(b) Purpose.--(1) The rewards program established by this section
shall be designed to assist in the prevention of acts of international
terrorism, international narcotics trafficking, and other related
criminal acts.
``(2) At the sole discretion of the Secretary of State and in
consultation, as appropriate, with the Attorney General, the Secretary
may pay a reward to any individual who furnishes information leading
to--
``(A) the arrest or conviction in any country of any
individual for the commission of an act of international
terrorism against a United States person or United States
property;
``(B) the arrest or conviction in any country of any
individual conspiring or attempting to commit an act of
international terrorism against a United States person or
United States property;
``(C) the arrest or conviction in any country of any
individual for committing, primarily outside the territorial
jurisdiction of the United States, any narcotics-related
offense if that offense involves or is a significant part of
conduct that involves--
``(i) a violation of United States narcotics laws and
which is such that the individual would be a major
violator of such laws; or
``(ii) the killing or kidnapping of--
``(I) any officer, employee, or contract
employee of the United States Government while
such individual is engaged in official duties,
or on account of that individual's official
duties, in connection with the enforcement of
United States narcotics laws or the
implementing of United States narcotics control
objectives; or
``(II) a member of the immediate family of
any such individual on account of that
individual's official duties, in connection
with the enforcement of United States narcotics
laws or the implementing of United States
narcotics control objectives; or
``(iii) an attempt or conspiracy to commit any of the
acts described in clause (i) or (ii); or
``(D) the arrest or conviction in any country of any
individual aiding or abetting in the commission of an act
described in subparagraphs (A) through (C); or
``(E) the prevention, frustration, or favorable resolution of
an act described in subparagraphs (A) through (C).
``(c) Coordination.--(1) To ensure that the payment of rewards
pursuant to this section does not duplicate or interfere with the
payment of informants or the obtaining of evidence or information, as
authorized to the Department of Justice, the offering, administration,
and payment of rewards under this section, including procedures for--
``(A) identifying individuals, organizations, and offenses
with respect to which rewards will be offered;
``(B) the publication of rewards;
``(C) offering of joint rewards with foreign governments;
``(D) the receipt and analysis of data; and
``(E) the payment and approval of payment
shall be governed by procedures developed by the Secretary of State, in
consultation with the Attorney General.
``(2) Before making a reward under this section in a matter over
which there is Federal criminal jurisdiction, the Secretary of State
shall advise and consult with the Attorney General.
``(d) Funding.--(1) There is authorized to be appropriated to the
Department of State from time to time such amounts as may be necessary
to carry out the purposes of this section, notwithstanding section 102
of the Foreign Relations Authorization Act, Fiscal Years 1986 and 1987
(Public Law 99-93).
``(2) No amount of funds may be appropriated which, when added to the
amounts previously appropriated but not yet obligated, would cause such
amounts to exceed $15,000,000.
``(3) To the maximum extent practicable, funds made available to
carry out this section should be distributed equally for the purpose of
preventing acts of international terrorism and for the purpose of
preventing international narcotics trafficking.
``(4) Amounts appropriated to carry out the purposes of this section
shall remain available until expended.
``(e) Limitation and Certification.--(1) A reward under this section
may not exceed $2,000,000.
``(2) A reward under this section of more than $100,000 may not be
made without the approval of the President or the Secretary of State.
``(3) Any reward granted under this section shall be approved and
certified for payment by the Secretary of State.
``(4) The authority of paragraph (2) may not be delegated to any
other officer or employee of the United States Government.
``(5) If the Secretary determines that the identity of the recipient
of a reward or of the members of the recipient's immediate family must
be protected, the Secretary may take such measures in connection with
the payment of the reward as he considers necessary to effect such
protection.
``(f) Ineligibility.--An officer or employee of any governmental
entity who, while in the performance of his or her official duties,
furnishes information described in subsection (b) shall not be eligible
for a reward under this section.
``(g) Reports.--(1) Not later than 30 days after paying any reward
under this section, the Secretary of State shall submit a report to the
appropriate congressional committees with respect to such reward. The
report, which may be submitted on aclassified basis if necessary, shall
specify the amount of the reward paid, to whom the reward was paid, and
the acts with respect to which the reward was paid. The report shall
also discuss the significance of the information for which the reward
was paid in dealing with those acts.
``(2) Not later than 60 days after the end of each fiscal year, the
Secretary of State shall submit an annual report to the appropriate
congressional committees with respect to the operation of the rewards
program authorized by this section. Such report shall provide
information on the total amounts expended during such fiscal year to
carry out the purposes of this section, including amounts spent to
publicize the availability of rewards.
``(h) Publication Regarding Rewards Offered by Foreign Governments.--
Notwithstanding any other provision of this section, at the sole
discretion of the Secretary of State the resources of the rewards
program authorized by this section, shall be available for the
publication of rewards offered by foreign governments regarding acts of
international terrorism which do not involve United States persons or
property or a violation of the narcotics laws of the United States.
``(i) Definitions.--As used in this section--
``(1) the term `appropriate congressional committees' means
the Committee on International Relations of the House of
Representatives and the Committee on Foreign Relations of the
Senate;
``(2) the term `act of international terrorism' includes, but
is not limited to--
``(A) any act substantially contributing to the
acquisition of unsafeguarded special nuclear material
(as defined in section 830(8) of the Nuclear
Proliferation Prevention Act of 1994) or any nuclear
explosive device (as defined in section 830(4) of that
Act) by an individual, group, or non-nuclear weapon
state (as defined in section 830(5) of that Act); and
``(B) any act, as determined by the Secretary of
State, which materially supports the conduct of
international terrorism, including the counterfeiting
of United States currency or the illegal use of other
monetary instruments by an individual, group, or
country supporting international terrorism as
determined for purposes of section 6(j) of the Export
Administration Act of 1979;
``(3) the term `United States narcotics laws' means the laws
of the United States for the prevention and control of illicit
traffic in controlled substances (as such term is defined for
purposes of the Controlled Substances Act); and
``(4) the term `member of the immediate family' includes--
``(A) a spouse, parent, brother, sister, or child of
the individual;
``(B) a person to whom the individual stands in loco
parentis; and
``(C) any other person living in the individual's
household and related to the individual by blood or
marriage.
``(j) Determinations of the Secretary.--A determination made by the
Secretary of State under this section shall be final and conclusive and
shall not be subject to judicial review.''.
(b) Use of Earnings From Frozen Assets for Program.--
(1) Amounts to be made available.--Up to 2 percent of the
earnings accruing, during periods beginning October 1, 1998, on
all assets of foreign countries blocked by the President
pursuant to the International Emergency Powers Act (50 U.S.C.
1701 and following) shall be available, subject to
appropriations Acts, to carry out section 36 of the State
Department Basic Authorities Act, as amended by this section,
except that the limitation contained in subsection (d)(2) of
such section shall not apply to amounts made available under
this paragraph.
(2) Control of funds by the president.--The President is
authorized and directed to take possession and exercise full
control of so much of the earnings described in paragraph (1)
as are made available under such paragraph.
SEC. 1202. FOREIGN SERVICE NATIONAL SEPARATION LIABILITY TRUST FUND.
Section 151 of the Foreign Relations Authorization Act, Fiscal Years
1992 and 1993 (22 U.S.C. 4012a) is amended by adding at the end the
following new subsection:
``(e) Interest.--The Secretary of the Treasury shall deposit amounts
in the fund in interest-bearing accounts. Any interest earned on such
deposits may be credited to the fund without further appropriation.''.
SEC. 1203. CAPITAL INVESTMENT FUND.
Section 135 of the Foreign Relations Authorization Act, Fiscal Years
1994 and 1995 (22 U.S.C. 2684a) is amended--
(1) in subsection (a) by inserting ``and enhancement'' after
``procurement'';
(2) in subsection (c) by striking ``are authorized to'' and
inserting ``shall'';
(3) in subsection (d) by striking ``for expenditure to
procure capital equipment and information technology'' and
inserting in lieu thereof ``for purposes of subsection (a)'';
and
(4) by amending subsection (e) to read as follows:
``(e) Reprogramming Procedures.--Funds credited to the Capital
Investment Fund shall not be available for obligation or expenditure
except in compliance with the procedures applicable to reprogrammings
under section 34 of the State Department Basic Authorities Act of 1956
(22 U.S.C. 2710).''.
SEC. 1204. INTERNATIONAL CENTER RESERVE FUNDS.
Section 5 of the International Center Act (Public Law 90-553) is
amended by adding at the end the following new sentence: ``Amounts in
the reserve may be deposited in interest-bearing accounts and the
Secretary may retain for the purposes set forth in this section any
interest earned on such deposits without returning such interest to the
Treasury of the United States and without further appropriation.''.
SEC. 1205. PROCEEDS OF SALE OF FOREIGN PROPERTIES.
Section 9 of the Foreign Service Buildings Act, 1926 (22 U.S.C. 300)
is amended by adding at the end the following new subsection:
``(d) Any proceeds held or deposited pursuant to this section may be
deposited in interest bearing accounts. The Secretary of State may
retain interest earned on such deposits for the purposes of this
section without returning such interest to the Treasury of the United
States and interest earned may be obligated and expended without
further appropriation.''.
SEC. 1206. REDUCTION OF REPORTING.
(a) Report on Foreign Service Personnel in Each Agency.--Section
601(c)(4) of the Foreign Service Act of 1980 (22 U.S.C. 4001(c)(4)) is
repealed.
(b) Report on Participation by U.S. Military Personnel Abroad in U.S.
Elections.--Section 101(b)(6) of the Uniformed and Overseas Citizens
Absentee Voting Act (42 U.S.C. 1973ff(b)(6)) is amended by striking
``of voter participation'' and inserting ``of uniformed services voter
participation, a general assessment of overseas nonmilitary
participation,''.
(c) Country Reports on Economic Policy and Trade Practices.--Section
2202 of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C.
4711) is repealed.
(d) Annual Report on Social and Economic Growth.--Section 574 of the
Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 1996 (Public Law 104-107) is repealed.
(e) Report.--Section 308 of the Chemical and Biological Weapons and
Warfare Elimination Act of 1991 (22 U.S.C. 5606) is repealed.
SEC. 1207. CONTRACTING FOR LOCAL GUARDS SERVICES OVERSEAS.
Section 136(c) of the Foreign Relations Authorization Act, Fiscal
Years 1990 and 1991 (22 U.S.C. 4864(c)) is amended--
(1) by amending paragraph (3) to read as follows:
``(3) in evaluating proposals for such contracts, award
contracts to the technically acceptable firm offering the
lowest evaluated price, except that proposals of United States
persons and qualified United States joint venture persons (as
defined in subsection (d)) shall be evaluated by reducing the
bid price by 5 percent;'';
(2) by inserting ``and'' at the end of paragraph (5);
(3) by striking ``; and'' at the end of paragraph (6) and
inserting a period; and
(4) by striking paragraph (7).
SEC. 1208. PREADJUDICATION OF CLAIMS.
Section 4(a) of the International Claims Settlement Act (22 U.S.C.
1623(a)) is amended--
(1) in the first sentence by striking ``1948, or'' and
inserting ``1948,'';
(2) by inserting before the period at the end of the first
sentence ``, or included in a category of claims against a
foreign government which is referred to the Commission by the
Secretary of State''; and
(3) in paragraph (1) by striking ``the applicable'' and
inserting ``any applicable''.
SEC. 1209. EXPENSES RELATING TO CERTAIN INTERNATIONAL CLAIMS AND
PROCEEDINGS.
(a) Recovery of Certain Expenses.--The Department of State
Appropriation Act of 1937 (49 Stat. 1321, 22 U.S.C. 2661) is amended in
the fifth undesignatedparagraph under the heading entitled
``international fisheries commission'' by striking ``extraordinary''.
(b) Procurement of Services.--Section 38(c) of the State Department
Basic Authorities Act of 1956 (22 U.S.C. 2710(c)) is amended in the
first sentence by inserting ``personal and'' before ``other support
services''.
SEC. 1210. ESTABLISHMENT OF FEE ACCOUNT AND PROVIDING FOR PASSPORT
INFORMATION SERVICES.
(a) Disposition of Fees.--Amounts collected by the Department of
State pursuant to section 281 of the Immigration and Nationality Act (8
U.S.C. 1351), section 1 of the Passport Act of June 4, 1920 (22 U.S.C.
214), section 16 of the Act of August 18, 1856 (22 U.S.C. 4219), and
section 9701 of title 31, United States Code, shall be deposited in a
special fund of the Treasury.
(b) Use of Funds.--Subject to subsections (d) and (e), amounts
collected and deposited in the special fund in the Treasury pursuant to
subsection (a) shall be available to the extent and in such amounts as
are provided in advance in appropriations Acts for the following
purposes:
(1) To pay all necessary expenses of the Department of State
and the Foreign Service, including expenses authorized by the
State Department Basic Authorities Act of 1956.
(2) Representation to certain international organizations in
which the United States participates pursuant to treaties
ratified pursuant to the advice and consent of the Senate or
specific Acts of Congress.
(3) Acquisition by exchange or purchase of passenger motor
vehicles as authorized by section 1343 of title 31, United
States Code, section 201(c) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 481(c)), and
section 7 of the State Department Basic Authorities Act (22
U.S.C. 2674).
(4) Expenses of general administration of the Department of
State.
(5) To carry out the Foreign Service Buildings Act of 1926
(22 U.S.C. 292-300) and the Diplomatic Security Construction
Program as authorized by title IV of the Omnibus Diplomatic
Security and Antiterrorism Act of 1986 (22 U.S.C. 4851).
(c) Availability of Funds.--Amounts collected and deposited in the
special fund pursuant to subsection (a) are authorized to remain
available until expended.
(d) Limitation.--For any fiscal year, any amount deposited in the
special fund under subsection (a) that exceeds $455,000,000 is
authorized to be made available only if a notification is submitted in
compliance with the procedures applicable to a reprogramming of funds
under section 34 of the State Department Basic Authorities Act of 1956.
(e) Passport Information Services.--For each of the fiscal years 1998
and 1999, $5,000,000 of the amounts available in the fund shall be
available only for the purpose of providing passport information
without charge to citizens of the United States, including--
(1) information about who is eligible to receive a United
States passport and how and where to apply;
(2) information about the status of pending applications; and
(3) names, addresses, and telephone numbers of State and
Federal officials who are authorized to provide passport
information in cooperation with the Department of State.
SEC. 1211. ESTABLISHMENT OF MACHINE READABLE FEE ACCOUNT.
Section 140(a) of the Foreign Relations Authorization Act, Fiscal
Years 1994 and 1995 (Public Law 103-236) is amended--
(1) by redesignating paragraph (4) as paragraph (6);
(2) by striking paragraph (5);
(3) by striking paragraphs (2) and (3) and inserting the
following:
``(2) Amounts collected under the authority of paragraph (1)
shall be deposited in a special fund of the Treasury.
``(3) Subject to paragraph (5), fees deposited in the special
fund pursuant to paragraph (2) shall be available to the extent
and in such amounts as are provided in advance in
appropriations Acts for costs of the Department of State's
border security program, including the costs of--
``(A) installation and operation of the machine
readable visa and automated name-check process;
``(B) improving the quality and security of the
United States passport;
``(C) passport and visa fraud investigations; and
``(D) the technological infrastructure to support and
operate the programs referred to in subparagraphs (A)
through (C).
``(4) Amounts deposited pursuant to paragraph (2) shall
remain available for obligation until expended.
``(5) For any fiscal year, any amount collected pursuant to
the authority of paragraph (1) that exceeds $140,000,000 is
authorized to be made available only if a notification is
submitted in compliance with the procedures applicable to a
reprogramming of funds under section 34 of the State Department
Basic Authorities Act of 1956.''.
SEC. 1212. RETENTION OF ADDITIONAL DEFENSE TRADE CONTROLS REGISTRATION
FEES.
Section 45(a) of the State Department Basic Authorities Act of 1956
(22 U.S.C. 2717(a)) is amended--
(1) by striking ``$700,000 of the'' and inserting ``all'';
(2) at the end of paragraph (1) by striking ``and'';
(3) in paragraph (2)--
(A) by striking ``functions'' and inserting
``functions, including compliance and enforcement
activities,''; and
(B) by striking the period at the end and inserting
``; and''; and
(4) by adding at the end the following new paragraph (3):
``(3) the enhancement of defense trade export compliance and
enforcement activities to include compliance audits of United
States and foreign parties, the conduct of administrative
proceedings, end-use monitoring of direct commercial arms sales
and transfer, and cooperation in criminal proceedings related
to defense trade export controls.''.
SEC. 1213. TRAINING.
(a) Institute for Training.--Section 701 of the Foreign Service Act
of 1980 (22 U.S.C. 4021) is amended--
(1) by redesignating subsection (d)(4) as subsection (g); and
(2) by inserting after paragraph (3) of subsection (d) the
following new subsections:
``(e)(1) The Secretary of State may, in the discretion of the
Secretary, provide appropriate training and related services through
the institution to employees of United States companies engaged in
business abroad, and to the families of such employees.
``(2) In the case of any company under contract to provide services
to the Department of State, the Secretary of State is authorized to
provide job-related training and related services to any company
employee who is performing such services.
``(3) Training under this subsection shall be on a reimbursable or
advance-of-funds basis. Such reimbursements or advances shall be
credited to the currently available applicable appropriation account.
``(4) Training and related services under this subsection is
authorized only to the extent that it will not interfere with the
institution's primary mission of training employees of the Department
and of other agencies in the field of foreign relations.
``(f)(1) The Secretary of State is authorized to provide on a
reimbursable basis training programs to Members of Congress or the
judiciary.
``(2) Congressional staff members and employees of the judiciary may
participate on a reimbursable, space-available basis in training
programs offered by the institution.
``(3) Reimbursements collected under this subsection shall be
credited to the currently available applicable appropriation account.
``(4) Training under this subsection is authorized only to the extent
that it will not interfere with the institution's primary mission of
training employees of the Department of State and of other agencies in
the field of foreign relations.''.
(b) Fees for Use of National Foreign Affairs Training Center.--The
State Department Basic Authorities Act of 1956 (22 U.S.C. 2669 et seq.)
is amended by adding after section 52 the following new section:
``SEC. 53. FEES FOR USE OF THE NATIONAL FOREIGN AFFAIRS TRAINING
CENTER.
``The Secretary is authorized to charge a fee for use of the National
Foreign Affairs Training Center Facility of the Department of State.
Funds collected under the authority of this section, including
reimbursements, surcharges, and fees, shall be deposited as an
offsetting collection to any Department of State appropriation to
recover the costs of such use and shall remain available for obligation
until expended.''.
SEC. 1214. RECOVERY OF COSTS OF HEALTH CARE SERVICES.
(a) Authorities.--Section 904 of the Foreign Service Act of 1980 (22
U.S.C. 4084) is amended--
(1) in subsection (a)--
(A) by striking ``and'' after ``employees,'', and
(B) by inserting before the period ``, and (for care
provided abroad) such other persons as are designated
by the Secretary of State'';
(2) in subsection (d), by inserting ``subject to subsections
(g) through (i)'' before ``the Secretary''; and
(3) by adding at the end the following new subsections:
``(g)(1)(A) In the case of a covered beneficiary who is provided
health care under this section and who is enrolled in a covered health
benefits plan of a third-party payer, the United States shall have the
right to collect from the third-party payer a reasonable charge amount
for the care to the extent that the payment would be made under such
plan for such care under the conditions specified in paragraph (2) if a
claim were submitted by or on behalf of the covered beneficiary.
``(B) Such a covered beneficiary is not required to pay any
deductible, copayment, or other cost-sharing under the covered health
benefits plan or under this section for health care provided under this
section.
``(2) With respect to health care provided under this section to a
covered beneficiary, for purposes of carrying out paragraph (1)--
``(A) the reasonable charge amount (as defined in paragraph
(9)(C)) shall be treated by the third-party payer as the
payment basis otherwise allowable for the care under the plan;
``(B) under regulations, if the covered health benefits plan
restricts or differentiates in benefit payments based on
whether a provider of health care has a participation agreement
with the third-party payer, the Secretary shall be treated as
having such an agreement as results in the highest level of
payment under this subsection;
``(C) no provision of the health benefit plan having the
effect of excluding from coverage or limiting payment of
charges for certain care shall operate to prevent collection
under subsection (a), including (but not limited to) any
provision that limits coverage or payment on the basis that--
``(i) the care was provided outside the United
States,
``(ii) the care was provided by a governmental
entity,
``(iii) the covered beneficiary (or any other person)
has no obligation to pay for the care,
``(iv) the provider of the care is not licensed to
provide the care in the United States or other
location,
``(v) a condition of coverage relating to utilization
review, prior authorization, or similar utilization
control has not been met, or
``(vi) in the case that drugs were provided, the
provision of the drugs for any indicated purpose has
not been approved by the Federal Food, Drug, and
Cosmetic Administration;
``(D) if the covered health benefits plan contains a
requirement for payment of a deductible, copayment, or similar
cost-sharing by the beneficiary--
``(i) the beneficiary's not having paid such cost-
sharing with respect to the care shall not preclude
collection under this section, and
``(ii) the amount the United States may collect under
this section shall be reduced by application of the
appropriate cost-sharing;
``(E) amounts that would be payable by the third-party payer
under this section but for the application of a deductible
under subparagraph (D)(ii) shall be counted towards such
deductible notwithstanding that under paragraph (1)(B) the
individual is not charged for the care and did not pay an
amount towards such care; and
``(F) the Secretary may apply such other provisions as may be
appropriate to carry out this section in an equitable manner.
``(3) In exercising authority under paragraph (1)--
``(A) the United States shall be subrogated to any right or
claim that the covered beneficiary may have against a third-
party payer;
``(B) the United States may institute and prosecute legal
proceedings against a third-party payer to enforce a right of
the United States under this section; and
``(C) the Secretary may compromise, settle, or waive a claim
of the United States under this section.
``(4) No law of any State, or of any political subdivision of a
State, shall operate to prevent or hinder collection by the United
States under this section.
``(5) If collection is sought from a third-party payer for health
care furnished a covered beneficiary under this section, under
regulations medical records of the beneficiary shall be made available
for inspection and review by representatives of the third-party payer
for the sole purpose of permitting the third-party payer to verify,
consistent with this subsection that--
``(A) the care for which recovery or collection is sought
were furnished to the beneficiary; and
``(B) except as otherwise provided in this subsection, the
provision of such care to the beneficiary meets criteria
generally applicable under the covered health benefits plan.
``(6) The Secretary shall establish (and periodically update) a
schedule of reasonable charge amounts for health care provided under
this section. The amount under such schedule for health care shall be
based on charges or fee schedule amounts recognized by third-party
payers under covered health benefits plans for payment purposes for
similar health care services furnished in the Metropolitan Washington,
District of Columbia, area.
``(7) The Secretary shall establish a procedure under which a covered
beneficiary may elect to have subsection (h) apply instead of this
subsection with respect to some or all health care provided to the
beneficiary under this section.
``(8) Amounts collected under this subsection, under subsection (h),
or under any authority referred to in subsection (i), from a third-
party payer or from any other payer shall be deposited as an offsetting
collection to any Department of State appropriation and shall remain
available until expended.
``(9) For purposes of this section:
``(A) The term `covered beneficiary' means a member or
employee (or family member of such a member of employee)
described in subsection (a) who is enrolled under a covered
health benefits plan.
``(B)(i) Subject to clause (ii), the term `covered health
benefits plan' means a health benefits plan offered under the
Federal Employees Health Benefits Program under chapter 89 of
title 5, United States Code.
``(ii) Such term does not include such a health benefits plan
(such as a plan of a staff-model health maintenance
organization) as the Secretary determines pursuant to
regulations to be structured in a manner that impedes the
application of this subsection to individuals enrolled under
the plan. To the extent practicable, the Secretary shall seek
to disseminate to members of the Service and designated
employees described in subsection (a) who are eligible to
receive health care under this section the names of plans
excluded under this clause.
``(C) The term `reasonable charge amount' means, with respect
to health care provided under this section, the amount for such
care specified in the schedule established under paragraph (6).
``(D) The term `third-party payer' means an entity that
offers a covered health benefits plan.
``(h)(1) In the case of an individual who--
``(A) receives health care pursuant to this section; and
``(B)(i) is not a covered beneficiary (including by virtue of
enrollment only in a health benefits plan excluded under
subsection (g)(9)(B)(ii)), or
``(ii) is such a covered beneficiary and has made an election
described in subsection (g)(7) with respect to such care,
the Secretary is authorized to collect from the individual the full
reasonable charge amount for such care.
``(2) The United States shall have the same rights against such
individuals with respect to collection of such amounts as the United
States has with respect to collection of amounts against a third-party
payer under subsection (g), except that the rights under this
subsection shall be exercised without regard to any rules for
deductibles, coinsurance, or other cost-sharing.
``(i) Subsections (g) and (h) shall apply to reimbursement for the
cost of hospitalization and related outpatient expenses paid for under
subsection (d) only to the extent provided in regulations. Nothing in
this subsection, or subsections (g) and (h), shall be construed as
limiting any authority the Secretary otherwise has with respect to
obtaining reimbursement for the payments made under subsection (d).''.
(b) Effective Date.--(1) The amendments made by subsection (a) shall
apply to items and services provided on and after the first day of the
first month that begins more than 1 year after the date of the
enactment of this Act.
(2) In order to carry out such amendments in a timely manner, the
Secretary of State is authorized to issue interim, final regulations
that take effect pending notice and opportunity for public comment.
SEC. 1215. FEE FOR USE OF DIPLOMATIC RECEPTION ROOMS.
The State Department Basic Authorities Act of 1956 (22 U.S.C. 2651a
et seq.) is amended by adding after section 53 (as added by section
1213(b)) the following new section:
``SEC. 54. FEE FOR USE OF DIPLOMATIC RECEPTION ROOMS.
``The Secretary of State is authorized to charge a fee for use of the
diplomatic reception rooms of the Department of State. Amounts
collected under the authority of this section (including any
reimbursements and surcharges) shall be deposited as an offsetting
collection to any Department of State appropriation to recover the
costs of such use and shall remain available for obligation until
expended.''.
SEC. 1216. FEES FOR COMMERCIAL SERVICES.
Section 52 of the State Department Basic Authorities Act of 1956 (22
U.S.C. 2724) is amended in subsection (b) by adding at the end the
following: ``Funds deposited under this subsection shall remain
available for obligation until expended.''.
SEC. 1217. BUDGET PRESENTATION DOCUMENTS.
The Secretary of State shall include in the annual Congressional
Presentation Document and the Budget in Brief, a detailed accounting of
the total collections received by the Department of State from all
sources, including fee collections. Reporting on total collections
shall also include the previous year's collection and the projected
expenditures from all collections accounts.
SEC. 1218. EXTENSION OF CERTAIN ADJUDICATION PROVISIONS.
The Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 1990 (Public Law 101-167) is amended--
(1) in section 599D (8 U.S.C. 1157 note)--
(A) in subsection (b)(3), by striking ``and 1997''
and inserting ``1997, 1998, and 1999''; and
(B) in subsection (e), by striking ``October 1,
1997'' each place it appears and inserting ``October 1,
1999''; and
(2) in section 599E (8 U.S.C. 1255 note) in subsection
(b)(2), by striking ``September 30, 1997'' and inserting
``September 30, 1999''.
SEC. 1219. GRANTS TO OVERSEAS EDUCATIONAL FACILITIES.
Section 29 of the State Department Basic Authorities Act of 1956 (22
U.S.C. 2701) is amended by adding at the end the following:
``Notwithstanding any other provision of law, where the children of
United States citizen employees of an agency of the United States
Government who are stationed outside the United States attend
educational facilities assisted by the Department of State under this
section, such agency is authorized to make grants to, or otherwise to
reimburse or credit with advance payment, the Department of State for
funds used in providing assistance to such educational facilities.''.
SEC. 1220. GRANTS TO REMEDY INTERNATIONAL CHILD ABDUCTIONS.
(a) Grant Authority.--Section 7 of the International Child Abduction
Remedies Act (42 U.S.C. 11606; Public Law 100-300) is amended by adding
at the end the following new subsection:
``(e) Grant Authority.--The United States Central Authority is
authorized to make grants to, or enter into contracts or agreements
with, any individual, corporation, other Federal, State, or local
agency, or private entity or organization in the United States for
purposes of accomplishing its responsibilities under the convention and
this Act.''.
CHAPTER 2--CONSULAR AUTHORITIES OF THE DEPARTMENT OF STATE
SEC. 1241. USE OF CERTAIN PASSPORT PROCESSING FEES FOR ENHANCED
PASSPORT SERVICES.
For each of the fiscal years 1998 and 1999, of the fees collected for
expedited passport processing and deposited to an offsetting collection
pursuant to the Department of State and Related Agencies Appropriations
Act for Fiscal Year 1995 (Public Law 103-317; 22 U.S.C. 214), 30
percent shall be available only for enhancing passport services for
United States citizens, improving the integrity and efficiency of the
passport issuance process, improving the secure nature of the United
States passport, investigating passport fraud, and deterring entry into
the United States by terrorists, drug traffickers, or other criminals.
SEC. 1242. CONSULAR OFFICERS.
(a) Persons Authorized To Issue Reports of Birth Abroad.--Section 33
of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2705)
is amended in paragraph (2) by inserting ``(or any United States
citizen employee of the Department of State designated by the Secretary
of State to adjudicate nationality abroad pursuant to such regulations
as the Secretary may prescribe)'' after ``consular officer''.
(b) Provisions Applicable to Consular Officers.--Section 1689 of the
Revised Statutes of the United States (22 U.S.C. 4191), is amended by
inserting ``and to such other United States citizen employees of the
Department of State as may be designated by the Secretary of State
pursuant to such regulations as the Secretary may prescribe'' after
``such officers''.
(c) Persons Authorized To Authenticate Foreign Documents.--Section
3492(c) of title 18, United States Code, is amended by adding at the
end the following: ``For purposes of this section and sections 3493
through 3496 of this title, a consular officer shall include any United
States citizen employee of the Department of State designated to
perform notarial functions pursuant to section 24 of the Act of August
18, 1856 (Rev. Stat. 1750, 22 U.S.C. 4221).''.
(d) Persons Authorized To Administer Oaths.--Section 115 of title 35,
United States Code, is amended by adding at the end the following:
``For purposes of this section a consular officer shall include any
United States citizen employee of the Department of State designated to
perform notarial functions pursuant to section 24 of the Act of August
18, 1856 (Rev. Stat. 1750, 22 U.S.C. 4221).''.
SEC. 1243. REPEAL OF OUTDATED CONSULAR RECEIPT REQUIREMENTS.
Sections 1726, 1727, and 1728 of the Revised Statutes of the United
States (22 U.S.C. 4212, 4213, and 4214) (concerning accounting for
consular fees) are repealed.
SEC. 1244. ELIMINATION OF DUPLICATE PUBLICATION REQUIREMENTS.
(a) Federal Register Publication of Travel Advisories.--Section
44908(a) of title 49, United States Code, is amended--
(1) by striking paragraph (2); and
(2) by redesignating paragraph (3) as paragraph (2).
(b) Publication in the Federal Register of Travel Advisories
Concerning Security at Foreign Ports.--Section 908(a) of the
International Maritime and Port Security Act of 1986 (Public Law 99-
399; 100 Stat. 891; 46 U.S.C. App. 1804(a)) is amended by striking the
second sentence.
CHAPTER 3--REFUGEES AND MIGRATION
SEC. 1261. REPORT TO CONGRESS CONCERNING CUBAN EMIGRATION POLICIES.
Beginning 3 months after the date of the enactment of this Act and
every subsequent 6 months, the Secretary of State shall include in the
monthly report to Congress entitled ``Update on Monitoring of Cuban
Migrant Returnees'' additional information concerning the methods
employed by the Government of Cuba to enforce the United States-Cuba
agreement of September 1994 to restrict the emigration of the Cuban
people from Cuba to the United States and the treatment by the
Government of Cuba of persons who have returned to Cuba pursuant to the
United States-Cuba agreement of May 1995.
SEC. 1262. REPROGRAMMING OF MIGRATION AND REFUGEE ASSISTANCE FUNDS.
Section 34 of the State Department Basic Authorities Act of 1956 (22
U.S.C. 2706) is amended by adding at the end the following new
subsection:
``(c) Emergency Waiver of Notification Requirement.--The Secretary of
State may waive the notification requirement of subsection (a), if the
Secretary determines that failure to do so would pose a substantial
risk to human health or welfare. In the case of any waiver under this
subsection, notification to the appropriate congressional committees
shall be provided as soon as practicable, but not later than 3 days
after taking the action to which the notification requirement was
applicable, and shall contain an explanation of the emergency
circumstances.''.
TITLE XIII--ORGANIZATION OF THE DEPARTMENT OF STATE; DEPARTMENT OF
STATE PERSONNEL; THE FOREIGN SERVICE
CHAPTER 1--ORGANIZATION OF THE DEPARTMENT OF STATE
SEC. 1301. COORDINATOR FOR COUNTERTERRORISM.
(a) Establishment.--Section 1(e) of the State Department Basic
Authorities Act of 1956 (22 U.S.C. 2651a(e)) is amended--
(1) by striking ``In'' and inserting the following:
``(1) In''; and
(2) by inserting at the end the following:
``(2) Coordinator for counterterrorism.--
``(A) There shall be within the office of the Secretary of
State a Coordinator for Counterterrorism (hereafter in this
paragraph referred to as the `Coordinator') who shall be
appointed by the President, by and with the advice and consent
of the Senate.
``(B)(i) The Coordinator shall perform such duties and
exercise such power as the Secretary of State shall prescribe.
``(ii) The principal duty of the Coordinator shall be the
overall supervision (including policy oversight of resources)
of international counterterrorism activities. The Coordinator
shall be the principal adviser to the Secretary of State on
international counterterrorism matters. The Coordinator shall
be the principal counterterrorism official within the senior
management of the Department of State and shall report directly
to the Secretary of State.
``(C) The Coordinator shall have the rank and status of
Ambassador-at-Large. The Coordinator shall be compensated at
the annual rate of basic pay in effect for a position at level
IV of the Executive Schedule under section 5314 of title 5,
United States Code, or, if the Coordinator is appointed from
the Foreign Service, the annual rate of pay which the
individual last received under the Foreign Service Schedule,
whichever is greater.''.
(b) Technical and Conforming Amendments.--Section 161 of the Foreign
Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law
103-236) is amended by striking subsection (e).
(c) Transition Provision.--The individual serving as Coordinator for
Counterterrorism of the Department of State on the day before the
effective date of this division may continue to serve in that position.
SEC. 1302. ELIMINATION OF STATUTORY ESTABLISHMENT OF CERTAIN POSITIONS
OF THE DEPARTMENT OF STATE.
(a) Assistant Secretary of State for South Asian Affairs.--Section
122 of the Foreign Relations Authorization Act, Fiscal Years 1992 and
1993 (22 U.S.C. 2652b) is repealed.
(b) Deputy Assistant Secretary of State for Burdensharing.--Section
161 of the Foreign Relations Authorization Act, Fiscal Years 1994 and
1995 (22 U.S.C. 2651a note) is amended by striking subsection (f).
(c) Assistant Secretary for Oceans and International Environmental
and Scientific Affairs.--Section 9 of the Department of State
Appropriations Authorization Act of 1973 (22 U.S.C. 2655a) is repealed.
SEC. 1303. ESTABLISHMENT OF ASSISTANT SECRETARY OF STATE FOR HUMAN
RESOURCES.
Section 1(c) of the State Department Basic Authorities Act of 1956
(22 U.S.C. 2651a(c)) is amended by adding after paragraph (2) the
following new paragraph:
``(3) Assistant secretary for human resources.--There shall
be in the Department of State an Assistant Secretary for Human
Resources who shall be responsible to the Secretary of State
for matters relating to human resources including the
implementation of personnel policies and programs within the
Department of State and international affairs functions and
activities carried out through the Department of State. The
Assistant Secretary shall have substantial professional
qualifications in the field of human resource policy and
management.''.
SEC. 1304. ESTABLISHMENT OF ASSISTANT SECRETARY OF STATE FOR DIPLOMATIC
SECURITY.
Section 1(c) of the State Department Basic Authorities Act of 1956
(22 U.S.C. 2651a(c)) as amended by section 1303 is further amended by
adding after paragraph (3) the following new paragraph:
``(4) Assistant secretary for diplomatic security.--There
shall be in the Department of State an Assistant Secretary for
Diplomatic Security who shall be responsible to the Secretary
of State for matters relating to diplomatic security. The
Assistant Secretary shall have substantial professional
qualifications in the field of Federal law enforcement,
intelligence, or security.''.
SEC. 1305. SPECIAL ENVOY FOR TIBET.
(a) United States Special Envoy for Tibet.--The President should
appoint within the Department of State a United States Special Envoy
for Tibet, who shall hold office at the pleasure of the President.
(b) Rank.--A United States Special Envoy for Tibet appointed under
subsection (a) shall have the personal rank of ambassador and shall be
appointed by and with the advice and consent of the Senate.
(c) Special Functions.--The United States Special Envoy for Tibet
should be authorized and encouraged--
(1) to promote substantive negotiations between the Dalai
Lama or his representatives and senior members of the
Government of the People's Republic of China;
(2) to promote good relations between the Dalai Lama and his
representatives and the United States Government, including
meeting with members or representatives of the Tibetan
government-in-exile; and
(3) to travel regularly throughout Tibet and Tibetan refugee
settlements.
(d) Duties and Responsibilities.--The United States Special Envoy for
Tibet should--
(1) consult with the Congress on policies relevant to Tibet
and the future and welfare of all Tibetan people;
(2) coordinate United States Government policies, programs,
and projects concerning Tibet; and
(3) report to the Secretary of State regarding the matters
described in section 536(a)(2) of the Foreign Relations
Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103-
236).
SEC. 1306. RESPONSIBILITIES FOR BUREAU CHARGED WITH REFUGEE ASSISTANCE.
The Bureau of Migration and Refugee Assistance shall be the bureau
within the Department of State with principal responsibility for
assisting the Secretary in carrying out the Migration and Refugee
Assistance Act of 1962 and shall not be charged with responsibility for
assisting the Secretary in matters relating to family planning or
population policy.
CHAPTER 2--PERSONNEL OF THE DEPARTMENT OF STATE; THE FOREIGN SERVICE
SEC. 1321. AUTHORIZED STRENGTH OF THE FOREIGN SERVICE.
(a) End Fiscal Year 1998 Levels.--The number of members of the
Foreign Service authorized to be employed as of September 30, 1998--
(1) for the Department of State, shall not exceed 8,700, of
whom not more than 750 shall be members of the Senior Foreign
Service;
(2) for the United States Information Agency, shall not
exceed 1,000, of whom not more than 140 shall be members of the
Senior Foreign Service; and
(3) for the Agency for International Development, not to
exceed 1070, of whom not more than 140 shall be members of the
Senior Foreign Service.
(b) End Fiscal Year 1999 Levels.--The number of members of the
Foreign Service authorized to be employed as of September 30, 1999--
(1) for the Department of State, shall not exceed 8,800, of
whom not more than 750 shall be members of the Senior Foreign
Service;
(2) for the United States Information Agency, not to exceed
1,000 of whom not more than 140 shall be members of the Senior
Foreign Service; and
(3) for the Agency for International Development, not to
exceed 1065 of whom not more than 135 shall be members of the
Senior Foreign Service.
(c) Definition.--For the purposes of this section, the term ``members
of the Foreign Service'' is used within the meaning of such term under
section 103 of the Foreign Service Act of 1980 (22 U.S.C 3903), except
that such term does not include--
(1) members of the Service under paragraphs (6) and (7) of
such section;
(2) members of the Service serving under temporary resident
appointments abroad;
(3) members of the Service employed on less than a full-time
basis;
(4) members of the Service subject to involuntary separation
in cases in which such separation has been suspended pursuant
to section 1106(8) of the Foreign Service Act of 1980; and
(5) members of the Service serving under non-career limited
appointments.
(d) Waiver Authority.--(1) Subject to paragraph (2), the President
may waive any limitation under subsection (a) or (b) to the extent that
such waiver is necessary to carry on the foreign affairs functions of
the United States.
(2) Not less than 15 days before the President exercises a waiver
under paragraph (1), such agency head shall notify the Chairman of the
Committee on Foreign Relations of the Senate and the Chairman of the
Committee on International Relations of the House of Representatives.
Such notice shall include an explanation of the circumstances and
necessity for such waiver.
SEC. 1322. NONOVERTIME DIFFERENTIAL PAY.
Title 5 of the United States Code is amended--
(1) in section 5544(a), by inserting after the fourth
sentence the following new sentence: ``For employees serving
outside the United States in areas where Sunday is a routine
workday and another day of the week is officially recognized as
the day of rest and worship, the Secretary of State may
designate the officially recognized day of rest and worship as
the day with respect to which the preceding sentence shall
apply instead of Sunday.''; and
(2) at the end of section 5546(a), by adding the following
new sentence: ``For employees serving outside the United States
in areas where Sunday is a routine workday and another day of
the week is officially recognized as the day of rest and
worship, the Secretary of State may designate the officially
recognized day of rest and worship as the day with respect to
which the preceding sentence shall apply instead of Sunday.''.
SEC. 1323. AUTHORITY OF SECRETARY TO SEPARATE CONVICTED FELONS FROM
SERVICE.
Section 610(a)(2) of the Foreign Service Act of 1980 (22 U.S.C.
4010(a)(2)) is amended in the first sentence by striking ``A member''
and inserting ``Except in the case of an individual who has been
convicted of a crime for which a sentence of imprisonment of more than
1 year may be imposed, a member''.
SEC. 1324. CAREER COUNSELING.
(a) In General.--Section 706(a) of the Foreign Service Act of 1980
(22 U.S.C. 4026(a)) is amended by adding at the end the following
sentence: ``Career counseling and related services provided pursuant to
this Act shall not be construed to permit an assignment to training or
to another assignment that consists primarily of paid time to conduct a
job search and without other substantive duties, except that career
members of the Service who upon their separation are not eligible to
receive an immediate annuity and have not been assigned to a post in
the United States during the 12 months prior to their separation from
the Service may be permitted up to 2 months of paid time to conduct a
job search.''.
(b) Effective Date.--The amendment made by subsection (a) shall be
effective 180 days after the date of the enactment of this Act.
SEC. 1325. REPORT CONCERNING MINORITIES AND THE FOREIGN SERVICE.
The Secretary of State shall annually submit a report to the Congress
concerning minorities and the Foreign Service officer corps. In
addition to such other information as is relevant to this issue, the
report shall include the following data (reported in terms of real
numbers and percentages and not as ratios):
(1) The numbers and percentages of all minorities taking the
written foreign service examination.
(2) The numbers and percentages of all minorities
successfully completing and passing the written foreign service
examination.
(3) The numbers and percentages of all minorities
successfully completing and passing the oral foreign service
examination.
(4) The numbers and percentages of all minorities entering
the junior officers class of the Foreign Service.
(5) The numbers and percentages of all minorities in the
Foreign Service officer corps.
(6) The numbers and percentages of all minority Foreign
Service officers at each grade, particularly at the senior
levels in policy directive positions.
(7) The numbers of and percentages of minorities promoted at
each grade of the Foreign Service officer corps.
SEC. 1326. RETIREMENT BENEFITS FOR INVOLUNTARY SEPARATION.
(a) Benefits.--Section 609 of the Foreign Service Act of 1980 (22
U.S.C. 4009) is amended--
(1) in subsection (a)(2)(A) by inserting ``or any other
applicable provision of chapter 84 of title 5, United States
Code,'' after ``section 811,'';
(2) in subsection (a) by inserting ``or section 855, as
appropriate'' after ``section 806''; and
(3) in subsection (b)(2)--
(A) by inserting ``(A) for those participants in the
Foreign Service Retirement and Disability System,''
before ``a refund''; and
(B) by inserting before the period at the end ``; and
(B) for those participants in the Foreign Service
Pension System, benefits as provided in section 851''.
(4) in subsection (b) in the matter following paragraph (2)
by inserting ``(for participants in the Foreign Service
Retirement and Disability System) or age 62 (for participants
in the Foreign Service Pension System)'' after ``age 60''.
(b) Entitlement to Annuity.--Section 855(b) of the Foreign Service
Act of 1980 (22 U.S.C. 4071d(b)) is amended--
(1) in paragraph (1) by inserting ``611,'' after ``608,'';
(2) in paragraph (1) by inserting ``and for participants in
the Foreign Service Pension System'' after ``for participants
in the Foreign Service Retirement and Disability System''; and
(3) in paragraph (3) by striking ``or 610'' and inserting
``610, or 611''.
(c) Effective Dates.--
(1) Except as provided in paragraph (2), the amendments made
by this section shall take effect on the date of the enactment
of this Act.
(2) The amendments made by paragraphs (2) and (3) of
subsection (a) and paragraphs (1) and (3) of subsection (b)
shall apply with respect to any actions taken under section 611
of the Foreign Service Act of 1980 after January 1, 1996.
SEC. 1327. AVAILABILITY PAY FOR CERTAIN CRIMINAL INVESTIGATORS WITHIN
THE DIPLOMATIC SECURITY SERVICE.
(a) In General.--Section 5545a of title 5, United States Code, is
amended by adding at the end the following:
``(k)(1) For purposes of this section, the term `criminal
investigator' includes an officer occupying a position under title II
of Public Law 99-399 if--
``(A) subject to subparagraph (C), such officer meets the
definition of such term under paragraph (2) of subsection (a)
(applied disregarding the parenthetical matter before
subparagraph (A) thereof);
``(B) the primary duties of the position held by such officer
consist of performing--
``(i) protective functions; or
``(ii) criminal investigations; and
``(C) such officer satisfies the requirements of subsection
(d) without taking into account any hours described in
paragraph (2)(B) thereof.
``(2) In applying subsection (h) with respect to an officer under
this subsection--
``(A) any reference in such subsection to `basic pay' shall
be considered to include amounts designated as `salary';
``(B) paragraph (2)(A) of such subsection shall be considered
to include (in addition to the provisions of law specified
therein) sections 609(b)(1), 805, 806, and 856 of the Foreign
Service Act of 1980; and
``(C) paragraph (2)(B) of such subsection shall be applied by
substituting for `Office of Personnel Management' the
following: `Office of Personnel Management or the Secretary of
State (to the extent that matters exclusively within the
jurisdiction of the Secretary are concerned)'.''.
(b) Implementation.--Not later than the date on which the amendments
made by this section take effect, each special agent of the Diplomatic
Security Service who satisfies the requirements of subsection (k)(1) of
section 5545a of title 5, United States Code, as amended by this
section, and the appropriate supervisory officer, to be designated by
the Secretary of State, shall make an initial certification to the
Secretary of State that the special agent is expected to meet the
requirements of subsection (d) of such section 5545a. The Secretary of
State may prescribe procedures necessary to administer this subsection.
(c) Technical and Conforming Amendments.--(1) Paragraph (2) of
section 5545a(a) of title 5, United States Code, is amended (in the
matter before subparagraph (A)) by striking ``Public Law 99-399)'' and
inserting ``Public Law 99-399, subject to subsection (k))''.
(2) Section 5542(e) of such title is amended by striking ``title 18,
United States Code,'' and inserting ``title 18 or section 37(a)(3) of
the State Department Basic Authorities Act of 1956,''.
(d) Effective Date.--The amendments made by this section shall take
effect on the first day of the first applicable pay period--
(1) which begins on or after the 90th day following the date
of the enactment of this Act; and
(2) on which date all regulations necessary to carry out such
amendments are (in the judgment of the Director of the Office
of Personnel Management and the Secretary of State) in effect.
SEC. 1328. LABOR MANAGEMENT RELATIONS.
Section 1017(e)(2) of the Foreign Service Act of 1980 (22 U.S.C.
4117(e)(2)) is amended to read as follows:
``(2) For the purposes of paragraph (1)(A)(ii) and paragraph (1)(B),
the term `management official' does not include chiefs of mission,
principal officers or their deputies, administrative and personnel
officers abroad, or individuals described in section 1002(12) (B), (C),
and (D) who are not involved in the administration of thischapter or in
the formulation of the personnel policies and programs of the
Department.''.
SEC. 1329. OFFICE OF THE INSPECTOR GENERAL.
(a) Procedures.--Section 209(c) of the Foreign Service Act of 1980
(22 U.S.C. 3929(c)) is amended by adding after paragraph (3) the
following new paragraphs:
``(4) In the case of a formal interview where an employee is
the likely subject or target of an Inspector General criminal
investigation, the Inspector General shall make all best
efforts to provide the employee with notice of the full range
of his or her rights, including the right to retain counsel and
the right to remain silent, as well as the identification of
those attending the interview.
``(5) In carrying out the duties and responsibilities
established under this section, the Inspector General shall
develop and provide to employees--
``(A) information detailing their rights to counsel;
and
``(B) guidelines describing in general terms the
policies and procedures of the Office of Inspector
General with respect to individuals under
investigation, other than matters exempt from
disclosure under other provisions of law.''.
(b) Report.--Not later than April 30, 1998, the Inspector General of
the Department of State shall submit a report to the appropriate
congressional committees which includes the following information:
(1) Detailed descriptions of the internal guidance developed
or used by the Office of the Inspector General with respect to
public disclosure of any information related to an ongoing
investigation of any employee or official of the Department of
State, the United States Information Agency, or the Arms
Control and Disarmament Agency.
(2) Detailed descriptions of those instances for the year
ending December 31, 1997, in which any disclosure of
information to the public by an employee of the Office of
Inspector General about an ongoing investigation occurred,
including details on the recipient of the information, the date
of the disclosure, and the internal clearance process for the
disclosure.
TITLE XIV--UNITED STATES PUBLIC DIPLOMACY: AUTHORITIES AND ACTIVITIES
FOR UNITED STATES INFORMATIONAL, EDUCATIONAL, AND CULTURAL PROGRAMS
SEC. 1401. EXTENSION OF AU PAIR PROGRAMS.
Section 1(b) of the Act entitled ``An Act to extend au pair
programs.'' (Public Law 104-72; 109 Stat. 1065(b)) is amended by
striking ``, through fiscal year 1997''.
SEC. 1402. RETENTION OF INTEREST.
Notwithstanding any other provision of law, with the approval of the
National Endowment for Democracy, grant funds made available by the
National Endowment for Democracy may be deposited in interest-bearing
accounts pending disbursement and any interest which accrues may be
retained by the grantee without returning such interest to the Treasury
of the United States and interest earned by be obligated and expended
for the purposes for which the grant was made without further
appropriation.
SEC. 1403. CENTER FOR CULTURAL AND TECHNICAL INTERCHANGE BETWEEN NORTH
AND SOUTH.
Section 208(e) of the Foreign Relations Authorization Act, Fiscal
Years 1992 and 1993 (22 U.S.C. 2075(e)) is amended by striking
``$10,000,000'' and inserting ``$4,000,000''.
SEC. 1404. USE OF SELECTED PROGRAM FEES.
Section 810 of the United States Information and Educational Exchange
Act of 1948 (22 U.S.C. 1475e) is amended by inserting ``educational
advising and counseling, exchange visitor program services, advertising
sold by the Voice of America, receipts from cooperating international
organizations and from the privatization of VOA Europe,'' after
``library services,''.
SEC. 1405. MUSKIE FELLOWSHIP PROGRAM.
(a) Guidelines .--Section 227(c)(5) of the Foreign Relations
Authorization Act, Fiscal Years 1992 and 1993 (22 U.S.C. 2452 note) is
amended--
(1) in the first sentence by inserting ``journalism and
communications, education administration, public policy,
library and information science,'' after ``business
administration,''; and
(2) in the second sentence by inserting ``journalism and
communications, education administration, public policy,
library and information science,'' after ``business
administration,''.
(b) Redesignation of Soviet Union.--Section 227 of the Foreign
Relations Authorization Act, Fiscal Years 1992 and 1993 (22 U.S.C. 2452
note) is amended--
(1) by striking ``Soviet Union'' each place it appears and
inserting ``Independent States of the Former Soviet Union'';
and
(2) in the section heading by inserting ``independent states
of the former'' after ``from the''.
SEC. 1406. WORKING GROUP ON UNITED STATES GOVERNMENT SPONSORED
INTERNATIONAL EXCHANGES AND TRAINING.
Section 112 of the Mutual Educational and Cultural Exchange Act of
1961 (22 U.S.C. 2460) is amended by adding at the end the following new
subsection:
``(g) Working Group on United States Government Sponsored
International Exchanges and Training.--(1) In order to carry out the
purposes of subsection (f) and to improve the coordination, efficiency,
and effectiveness of United States Government sponsored international
exchanges and training, there is established within the United States
Information Agency a senior-level interagency working group to be known
as the Working Group on United States Government Sponsored
International Exchanges and Training (hereinafter in this section
referred to as ``the Working Group'').
``(2) For purposes of this subsection, the term `Government sponsored
international exchanges and training' means the movement of people
between countries to promote the sharing of ideas, to develop skills,
and to foster mutual understanding and cooperation, financed wholly or
in part, directly or indirectly, with United States Government funds.
``(3) The Working Group shall be composed as follows:
``(A) The Associate Director for Educational and Cultural
Affairs of the United States Information Agency, who shall act
as Chair.
``(B) A senior representative designated by the Secretary of
State.
``(C) A senior representative designated by the Secretary of
Defense.
``(D) A senior representative designated by the Secretary of
Education.
``(E) A senior representative designated by the Attorney
General.
``(F) A senior representative designated by the Administrator
of the Agency for International Development.
``(G) Senior representatives of other departments and
agencies as the Chair determines to be appropriate.
``(4) Representatives of the National Security Adviser and the
Director of the Office of Management and Budget may participate in the
Working Group at the discretion of the adviser and the director,
respectively.
``(5) The Working Group shall be supported by an interagency staff
office established in the Bureau of Educational and Cultural Affairs of
the United States Information Agency.
``(6) The Working Group shall have the following purposes and
responsibilities:
``(A) To collect, analyze, and report data provided by all
United States Government departments and agencies conducting
international exchanges and training programs.
``(B) To promote greater understanding and cooperation among
concerned United States Government departments and agencies of
common issues and challenges in conducting international
exchanges and training programs, including through the
establishment of a clearinghouse for information on
international exchange and training activities in the
governmental and nongovernmental sectors.
``(C) In order to achieve the most efficient and cost-
effective use of Federal resources, to identify administrative
and programmatic duplication and overlap of activities by the
various United States Government departments and agencies
involved in Government sponsored international exchange and
training programs, to identify how each Government sponsored
international exchange and training program promotes United
States foreign policy, and to report thereon.
``(D) Not later than 1 year after the date of the enactment
of the Foreign Relations Authorization Act, Fiscal Years 1998
and 1999, to develop and thereafter assess, annually, a
coordinated and cost-effective strategy for all United States
Government sponsored international exchange and training
programs, and to issue a report on such strategy. This strategy
will include an action planfor consolidating United States
Government sponsored international exchange and training programs with
the objective of achieving a minimum 10 percent cost saving through
consolidation or the elimination of duplication.
``(E) Not later than 2 years after the date of the enactment
of the Foreign Relations Authorization Act, Fiscal Years 1998
and 1999, to develop recommendations on common performance
measures for all United States Government sponsored
international exchange and training programs, and to issue a
report.
``(F) To conduct a survey of private sector international
exchange activities and develop strategies for expanding public
and private partnerships in, and leveraging private sector
support for, United States Government sponsored international
exchange and training activities.
``(G) Not later than 6 months after the date of the enactment
of the Foreign Relations Authorization Act, Fiscal Years 1998
and 1999, to report on the feasibility of transferring funds
and program management for the ATLAS and/or the Mandela Fellows
programs in South Africa from the Agency for International
Development to the United States Information Agency. The report
shall include an assessment of the capabilities of the South
African Fulbright Commission to manage such programs and the
cost advantages of consolidating such programs under one
entity.
``(7) All reports prepared by the Working Group shall be submitted to
the President, through the Director of the United States Information
Agency.
``(8) The Working Group shall meet at least on a quarterly basis.
``(9) All decisions of the Working Group shall be by majority vote of
the members present and voting.
``(10) The members of the Working Group shall serve without
additional compensation for their service on the Working Group. Any
expenses incurred by a member of the Working Group in connection with
service on the Working Group shall be compensated by that member's
department or agency.
``(11) With respect to any report promulgated pursuant to paragraph
(6), a member may submit dissenting views to be submitted as part of
the report of the Working Group.''.
SEC. 1407. EDUCATIONAL AND CULTURAL EXCHANGES AND SCHOLARSHIPS FOR
TIBETANS AND BURMESE.
(a) Establishment of Educational and Cultural Exchange for
Tibetans.--The Director of the United States Information Agency shall
establish programs of educational and cultural exchange between the
United States and the people of Tibet. Such programs shall include
opportunities for training and, as the Director considers appropriate,
may include the assignment of personnel and resources abroad.
(b) Scholarships for Tibetans and Burmese.--
(1) In general.--For each of the fiscal years 1998 and 1999,
at least 30 scholarships shall be made available to Tibetan
students and professionals who are outside Tibet, and at least
15 scholarships shall be made available to Burmese students and
professionals who are outside Burma.
(2) Waiver.--Paragraph (1) shall not apply to the extent that
the Director of the United States Information Agency determines
that there are not enough qualified students to fulfill such
allocation requirement.
(3) Scholarship defined.--For the purposes of this section,
the term ``scholarship'' means an amount to be used for full or
partial support of tuition and fees to attend an educational
institution, and may include fees, books, and supplies,
equipment required for courses at an educational institution,
living expenses at a United States educational institution, and
travel expenses to and from, and within, the United States.
SEC. 1408. UNITED STATES--JAPAN COMMISSION.
(a) Relief From Restriction of Interchangeability of Funds.--
(1) Section 6(4) of the Japan-United States Friendship Act
(22 U.S.C. 2905(4)) is amended by striking ``needed, except''
and all that follows through ``United States'' and inserting
``needed''.
(2) The second sentence of section 7(b) of the Japan-United
States Friendship Act (22 U.S.C. 2906(b)) is amended to read as
follows: ``Such investment may be made only in interest-bearing
obligations of the United States, in obligations guaranteed as
to both principal and interest by the United States, in
interest-bearing obligations of Japan, or in obligations
guaranteed as to both principal and interest by Japan.''.
(b) Revision of Name of Commission.--
(1) After the date of the enactment of this Act, the Japan-
United States Friendship Commission shall be designated as the
``United States-Japan Commission''. Any reference in any
provision of law, Executive order, regulation, delegation of
authority, or other document to the Japan-United States
Friendship Commission shall be considered to be a reference to
the United States-Japan Commission.
(2) The heading of section 4 of the Japan-United States
Friendship Act (22 U.S.C. 2903) is amended to read as follows:
``united states-japan commission''.
(3) The Japan-United States Friendship Act is amended by
striking ``Japan-United States Friendship Commission'' each
place such term appears and inserting ``United States-Japan
Commission''.
(c) Revision of Name of Trust Fund.--
(1) After the date of the enactment of this Act, the Japan-
United States Friendship Trust Fund shall be designated as the
``United States-Japan Trust Fund''. Any reference in any
provision of law, Executive order, regulation, delegation of
authority, or other document to the Japan-United States
Friendship Trust Fund shall be considered to be a reference to
the United States-Japan Trust Fund.
(2) Section 3(a) of the Japan-United States Friendship Act
(22 U.S.C. 2902(a)) is amended by striking ``Japan-United
States Friendship Trust Fund'' and inserting ``United States-
Japan Trust Fund''.
SEC. 1409. SURROGATE BROADCASTING STUDIES.
(a) Radio Free Africa.--Not later than 6 months after the date of the
enactment of this Act, the United States Information Agency and the
Board of Broadcasting Governors should conduct and complete a study of
the appropriateness, feasibility, and projected costs of providing
surrogate broadcasting service to Africa and transmit the results of
the study to the appropriate congressional committees.
(b) Radio Free Iran.--Not later than 6 months after the date of the
enactment of this Act, the United States Information Agency and the
Board of Broadcasting Governors should conduct and complete a study of
the appropriateness, feasibility, and projected costs of a Radio Free
Europe/Radio Liberty broadcasting service to Iran and transmit the
results of the study to the appropriate congressional committees.
SEC. 1410. AUTHORITY TO ADMINISTER SUMMER TRAVEL/WORK PROGRAMS.
The Director of the United States Information Agency is authorized to
administer summer travel/work programs without regard to preplacement
requirements.
SEC. 1411. PERMANENT ADMINISTRATIVE AUTHORITIES REGARDING
APPROPRIATIONS.
Section 701(f) of the United States Information and Educational
Exchange Act of 1948 (22 U.S.C. 1476(f)) is amended by striking
paragraph (4).
SEC. 1412. AUTHORITIES OF THE BROADCASTING BOARD OF GOVERNORS.
(a) Authorities.--Section 305(a)(1) of the United States
International Broadcasting Act of 1994 (22 U.S.C. 6204(a)(1)) is
amended by striking ``direct and''.
(b) Director of the Bureau.--The first sentence of section 307(b)(1)
of the United States International Broadcasting Act of 1994 (22
U.S.C.6206(b)(1)) is amended to read as follows: ``The Director of the
Bureau shall be appointed by the Board with the concurrence of the
Director of the United States Information Agency.''.
(c) Responsibilities of the Director.--Section 307 of the United
States International Broadcasting Act of 1994 (22 U.S.C.6206) is
amended by adding at the end the following new subsection:
``(c) Responsibilities of the Director.--The Director shall organize
and chair a coordinating committee to examine long-term strategies for
the future of international broadcasting, including the use of new
technologies, further consolidation of broadcast services, and
consolidation of currently existing public affairs and legislative
relations functions in the various international broadcasting entities.
The coordinating committee shall include representatives of RFA, RFE/
RL, the Broadcasting Board of Governors, and, as appropriate, from the
Office of Cuba Broadcasting, the Voice of America, and WorldNet.''.
(d) Radio Broadcasting to Cuba.--Section 4 of the Radio Broadcasting
to Cuba Act (22 U.S.C. 1465b) is amended by striking ``of the Voice of
America'' and inserting ``of the International Broadcasting Bureau''.
(e) Television Broadcasting to Cuba.--Section 244(a) of the
Television Broadcasting to Cuba Act (22 U.S.C. 1465cc(a)) is amended in
the third sentenceby striking ``of the Voice of America'' and inserting
``of the International Broadcasting Bureau''.
TITLE XV--INTERNATIONAL ORGANIZATIONS; UNITED NATIONS AND RELATED
AGENCIES
CHAPTER 1--GENERAL PROVISIONS
SEC. 1501. SERVICE IN INTERNATIONAL ORGANIZATIONS.
(a) In General.--Section 3582(b) of title 5, United States Code, is
amended by striking all after the first sentence and inserting the
following: ``On reemployment, he is entitled to the rate of basic pay
to which he would have been entitled had he remained in the civil
service. On reemployment, the agency shall restore his sick leave
account, by credit or charge, to its status at the time of transfer.
The period of separation caused by his employment with the
international organization and the period necessary to effect
reemployment are deemed creditable service for all appropriate civil
service employment purposes. This subsection does not apply to a
congressional employee.''.
(b) Application.--The amendment made by subsection (a) shall apply
with respect transfers which take effect on or after the date of the
enactment of this Act.
SEC. 1502. ORGANIZATION OF AMERICAN STATES.
Taking into consideration the long-term commitment by the United
States to the affairs of this hemisphere and the need to build further
upon the linkages between the United States and its neighbors, it is
the sense of the Congress that the Secretary of State should make every
effort to pay the United States assessed funding levels for the
Organization of American States, which is uniquely dependent on United
States contributions and is continuing fundamental reforms in its
structure and its agenda.
CHAPTER 2--UNITED NATIONS AND RELATED AGENCIES
SEC. 1521. REFORM IN BUDGET DECISIONMAKING PROCEDURES OF THE UNITED
NATIONS AND ITS SPECIALIZED AGENCIES.
(a) Assessed Contributions.--Of amounts authorized to be appropriated
for ``Assessed Contributions to International Organizations'' by this
Act, the President may withhold 20 percent of the funds appropriated
for the United States assessed contribution to the United Nations or to
any of its specialized agencies for any calendar year if the Secretary
of State determines that the United Nations or any such agency has
failed to implement or to continue to implement consensus-based
decisionmaking procedures on budgetary matters which assure that
sufficient attention is paid to the views of the United States and
other member states that are the major financial contributors to such
assessed budgets.
(b) Notice to Congress.--The President shall notify the Congress when
a decision is made to withhold any share of the United States assessed
contribution to the United Nations or its specialized agencies pursuant
to subsection (a) and shall notify the Congress when the decision is
made to pay any previously withheld assessed contribution. A
notification under this subsection shall include appropriate
consultation between the President (or the President's representative)
and the Committee on International Relations of the House of
Representatives and the Committee on Foreign Relations of the Senate.
(c) Contributions for Prior Years.--Subject to the availability of
appropriations, payment of assessed contributions for prior years may
be made to the United Nations or any of its specialized agencies
notwithstanding subsection (a) if such payment would further United
States interests in that organization.
(d) Report to Congress.--Not later than February 1 of each year, the
President shall submit to the appropriate congressional committees a
report concerning the amount of United States assessed contributions
paid to the United Nations and each of its specialized agencies during
the preceding calendar year.
SEC. 1522. REPORTS ON EFFORTS TO PROMOTE FULL EQUALITY AT THE UNITED
NATIONS FOR ISRAEL.
(a) Congressional Statement.--It is the sense of the Congress that
the United States must help promote an end to the persistent inequity
experienced by Israel in the United Nations whereby Israel is the only
longstanding member of the organization to be denied acceptance into
any of the United Nation's regional blocs.
(b) Reports to Congress.--Not later than 90 days after the date of
the enactment of this Act and on a quarterly basis thereafter, the
Secretary of State shall submit to the appropriate congressional
committees a report which includes the following information (in
classified or unclassified form as appropriate):
(1) Actions taken by representatives of the United States to
encourage the nations of the Western Europe and Others Group
(WEOG) to accept Israel into their regional bloc.
(2) Efforts undertaken by the Secretary General of the United
Nations to secure Israel's full and equal participation in that
body.
(3) Specific responses received by the Secretary of State
from each of the nations of the Western Europe and Others Group
(WEOG) on their position concerning Israel's acceptance into
their organization.
(4) Other measures being undertaken, and which will be
undertaken, to ensure and promote Israel's full and equal
participation in the United Nations.
SEC. 1523. UNITED NATIONS POPULATION FUND.
(a) Limitation.--Subject to subsections (b), (c), and (d)(2), of the
amounts made available for each of the fiscal years 1998 and 1999 to
carry out part I of the Foreign Assistance Act of 1961, not more than
$25,000,000 shall be available for each such fiscal year for the United
Nations Population Fund.
(b) Prohibition on Use of Funds in China.--None of the funds made
available under this section shall be made available for a country
program in the People's Republic of China.
(c) Conditions on Availability of Funds.--
(1) Not more than one-half of the amount made available to
the United Nations Population Fund under this section may be
provided to the Fund before March 1 of the fiscal year for
which funds are made available.
(2) Amounts made available for each of the fiscal years 1998
and 1999 under part I of the Foreign Assistance Act of 1961 for
the United Nations Population Fund may not be made available to
the Fund unless--
(A) the Fund maintains amounts made available to the
Fund under this section in an account separate from
accounts of the Fund for other funds; and
(B) the Fund does not commingle amounts made
available to the Fund under this section with other
funds.
(d) Reports.--
(1) Not later than February 15, 1998, and February 15, 1999,
the Secretary of State shall submit a report to the appropriate
congressional committees indicating the amount of funds that
the United Nations Population Fund is budgeting for the year in
which the report is submitted for a country program in the
People's Republic of China.
(2) If a report under paragraph (1) indicates that the United
Nations Population Fund plans to spend China country program
funds in the People's Republic of China in the year covered by
the report, then the amount of such funds that the Fund plans
to spend in the People's Republic of China shall be deducted
from the funds made available to the Fund after March 1 for
obligation for the remainder of the fiscal year in which the
report is submitted.
SEC. 1524. CONTINUED EXTENSION OF PRIVILEGES, EXEMPTIONS, AND
IMMUNITIES OF THE INTERNATIONAL ORGANIZATIONS
IMMUNITIES ACT TO UNIDO.
Section 12 of the International Organizations Immunities Act (22
U.S.C. 288f-2) is amended by inserting ``and the United Nations
Industrial Development Organization'' after ``International Labor
Organization''.
TITLE XVI--ARMS CONTROL AND DISARMAMENT AGENCY
SEC. 1601. COMPREHENSIVE COMPILATION OF ARMS CONTROL AND DISARMAMENT
STUDIES.
Section 39 of the Arms Control and Disarmament Act (22 U.S.C. 2579)
is repealed.
SEC. 1602. USE OF FUNDS.
Section 48 of the Arms Control and Disarmament Act (22 U.S.C. 2588)
is amended by striking ``section 11 of the Act of March 1, 1919 (44
U.S.C. 111)'' and inserting ``any other Act''.
TITLE XVII--FOREIGN POLICY PROVISIONS
SEC. 1701. UNITED STATES POLICY REGARDING THE INVOLUNTARY RETURN OF
REFUGEES.
(a) In General.--No funds authorized to be appropriated by this
division shall be available to effect the involuntary return by the
United States of any person to a country in which the person has a well
founded fear of persecution on account of race, religion, nationality,
membership in a particular social group, or political opinion, except
on grounds recognized as precluding protection as a refugee under the
United Nations Convention Relating to the Status of Refugees of July
28, 1951, and the Protocol Relating to the Status of Refugees of
January 31, 1967.
(b) Migration and Refugee Assistance.--No funds authorized to be
appropriated by section 1104 of this Act or by section 2(c) of the
Migration and Refugee Assistance Act of 1962 (22 U.S.C. 2601(c)) shall
be available to effect the involuntary return of any person to any
country unless the Secretary of State first notifies the appropriate
congressional committees, except that in the case of an emergency
involving a threat to human life the Secretary of State shall notify
the appropriate congressional committees as soon as practicable.
(c) Involuntary Return Defined.--As used in this section, the term
``to effect the involuntary return'' means to require, by means of
physical force or circumstances amounting to a threat thereof, a person
to return to a country against the person's will, regardless of whether
the person is physically present in the United States and regardless of
whether the United States acts directly or through an agent.
SEC. 1702. UNITED STATES POLICY WITH RESPECT TO THE INVOLUNTARY RETURN
OF PERSONS IN DANGER OF SUBJECTION TO TORTURE.
(a) In General.--The United States shall not expel, extradite, or
otherwise effect the involuntary return of any person to a country in
which there are reasonable grounds for believing the person would be in
danger of subjection to torture.
(b) Definitions.--
(1) In general.--Except as otherwise provided, terms used in
this section have the meanings given such terms under the
United Nations Convention Against Torture and Other Cruel,
Inhuman or Degrading Treatment or Punishment, subject to any
reservations, understandings, declarations, and provisos
contained in the United States resolution of advice and consent
to ratification to such convention.
(2) Involuntary return.--As used in this section, the term
``effect the involuntary return'' means to take action by which
it is reasonably foreseeable that a person will be required to
return to a country against the person's will, regardless of
whether such return is induced by physical force and regardless
of whether the person is physically present in the United
States.
SEC. 1703. REPORTS ON CLAIMS BY UNITED STATES FIRMS AGAINST THE
GOVERNMENT OF SAUDI ARABIA.
(a) In General.--Within 60 days after the date of the enactment of
this Act and every 120 days thereafter, the Secretary of State, in
coordination with the Secretary of Defense and the Secretary of
Commerce, shall report to the appropriate congressional committees on
specific actions taken by the Department of State, the Department of
Defense, and the Department of Commerce toward progress in resolving
the commercial disputes between United States firms and the Government
of Saudi Arabia that are described in the June 30, 1993, report by the
Secretary of Defense pursuant to section 9140(c) of the Department of
Defense Appropriations Act, 1993 (Public Law 102-396), including the
additional claims noticed by the Department of Commerce on page 2 of
that report.
(b) Termination.--Subsection (a) shall cease to have effect when the
Secretary of State, in coordination with the Secretary of Defense and
the Secretary of Commerce, certifies in writing to the appropriate
congressional committees that the commercial disputes referred to in
subsection (a) have been resolved satisfactorily.
SEC. 1704. HUMAN RIGHTS REPORTS.
Section 116(d) of the Foreign Assistance Act of 1961 (22 U.S.C.
2151n) is amended--
(1) by striking ``January 31'' and inserting ``February 25'';
(2) redesignating paragraphs (3), (4), and (5) as paragraphs
(4), (5), and (6), respectively; and
(3) by inserting after paragraph (2) the following new
paragraph (3):
``(3) the status of child labor practices in each country,
including--
``(A) whether such country has adopted policies to
protect children from exploitation in the workplace,
including a prohibition of forced and bonded labor and
policies regarding acceptable working conditions; and
``(B) the extent to which each country enforces such
policies, including the adequacy of resources and
oversight dedicated to such policies;''.
SEC. 1705. REPORTS ON DETERMINATIONS UNDER TITLE IV OF THE LIBERTAD
ACT.
Section 401 of the Cuban Liberty and Democratic Solidarity (LIBERTAD)
Act of 1996 (22 U.S.C. 6091) is amended by adding at the end the
following:
``(e) Reports to Congress.--The Secretary of State shall, not later
than 30 days after the date of the enactment of this subsection and
every 3 months thereafter, submit to the Committee on International
Relations of the House of Representatives and the Committee on Foreign
Relations of the Senate a report on the implementation of this section.
Each report shall include--
``(1) an unclassified list, by economic sector, of the number
of entities then under review pursuant to this section;
``(2) an unclassified list of all entities and a classified
list of all individuals that the Secretary of State has
determined to be subject to this section;
``(3) an unclassified list of all entities and a classified
list of all individuals that the Secretary of State has
determined are no longer subject to this section;
``(4) an explanation of the status of the review under way
for the cases referred to in paragraph (1); and
``(5) an unclassified explanation of each determination of
the Secretary of State under subsection (a) and each finding of
the Secretary under subsection (c)--
``(A) since the date of the enactment of this Act, in
the case of the first report under this subsection; and
``(B) in the preceding 3-month period, in the case of
each subsequent report.''.
SEC. 1706. REPORTS AND POLICY CONCERNING DIPLOMATIC IMMUNITY.
(a) Annual Report Concerning Diplomatic Immunity.--
(1) Report to congress.--The Secretary of State shall prepare
and submit to the Congress, annually, a report concerning
diplomatic immunity entitled ``Report on Cases Involving
Diplomatic Immunity''.
(2) Content of report.--In addition to such other information
as the Secretary of State may consider appropriate, the report
under paragraph (1) shall include the following:
(A) The number of persons residing in the United
States who enjoy full immunity from the criminal
jurisdiction of the United States under laws extending
diplomatic privileges and immunities.
(B) Each case involving an alien described in
subparagraph (A) in which the appropriate authorities
of a State, a political subdivision of a State, or the
United States reported to the Department of State that
the authority had reasonable cause to believe the alien
committed a serious criminal offense within the United
States.
(C) Each case in which the United States has
certified that a person enjoys full immunity from the
criminal jurisdiction of the United States under laws
extending diplomatic privileges and immunities.
(D) The number of United States citizens who are
residing in a receiving state and who enjoy full
immunity from the criminal jurisdiction of such state
under laws extending diplomatic privileges and
immunities.
(E) Each case involving a United States citizen under
subparagraph (D) in which the United States has been
requested by the government of a receiving state to
waive the immunity from criminal jurisdiction of the
United States citizen.
(3) Serious criminal offense defined.--The term ``serious
criminal offense'' means--
(A) any felony under Federal, State, or local law;
(B) any Federal, State, or local offense punishable
by a term of imprisonment of more than 1 year ;
(C) any crime of violence as defined for purposes of
section 16 of title 18, United States Code; or
(D) driving under the influence of alcohol or drugs
or driving while intoxicated if the case involves
personal injury to another individual.
(b) United States Policy Concerning Reform of Diplomatic Immunity.--
It is the sense of the Congress that the Secretary of State should
explore, in appropriate fora, whether states should enter into
agreements and adopt legislation--
(1) to provide jurisdiction in the sending state to prosecute
crimes committed in the receiving state by persons entitled to
immunity from criminal jurisdiction under laws extending
diplomatic privileges and immunities; and
(2) to provide that where there is probable cause to believe
that an individual who is entitled to immunity from the
criminal jurisdiction of the receiving state under laws
extending diplomatic privileges and immunities committed a
serious crime, the sending state will waive such immunity or
the sending state will prosecute such individual.
SEC. 1707. CONGRESSIONAL STATEMENT WITH RESPECT TO EFFICIENCY IN THE
CONDUCT OF FOREIGN POLICY.
It is the sense of the Congress that the Secretary, after
consultation with the appropriate congressional committees, should
submit a plan to the Congress to consolidate some or all of the
functions currently performed by the Department of State, the agency
for International Development, and the Arms Control and Disarmament
Agency, in order to increase efficiency and accountability in the
conduct of the foreign policy of the United States.
SEC. 1708. CONGRESSIONAL STATEMENT CONCERNING RADIO FREE EUROPE/RADIO
LIBERTY.
It is the sense of the Congress that Radio Free Europe/Radio Liberty
should continue surrogate broadcasting beyond the year 2000 to
countries whose people do not yet fully enjoy freedom of expression.
Recent events in Serbia, Belarus, and Slovakia, among other nations,
demonstrate that even after the end of communist rule in such nations,
tyranny under other names still threatens the freedom of their peoples,
and hence the stability of Europe and the national security interest of
the United States. The Broadcasting Board of Governors should therefore
continue to allocate sufficient funds to Radio Free Europe/Radio
Liberty to continue broadcasting at current levels to target countries
and to increase these levels in response to renewed threats to freedom.
SEC. 1709. PROGRAMS OR PROJECTS OF THE INTERNATIONAL ATOMIC ENERGY
AGENCY IN CUBA.
(a) Withholding of United States Proportional Share of Assistance.--
(1) In general.--Section 307(c) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2227(c)) is amended--
(A) by striking ``The limitations'' and inserting
``(1) Subject to paragraph (2), the limitations''; and
(B) by adding at the end the following:
``(2)(A) Except as provided in subparagraph (B), with respect to
funds authorized to be appropriated by this chapter and available for
the International Atomic Energy Agency, the limitations of subsection
(a) shall apply to programs or projects of such Agency in Cuba.
``(B)(i) Subparagraph (A) shall not apply with respect to programs or
projects of the International Atomic Energy Agency that provide for the
discontinuation, dismantling, or safety inspection of nuclear
facilities or related materials, or for inspections and similar
activities designed to prevent the development of nuclear weapons by a
country described in subsection (a).
``(ii) Clause (i) shall not apply with respect to the Juragua Nuclear
Power Plant near Cienfuegos, Cuba, or the Pedro Pi Nuclear Research
Center unless Cuba--
``(I) ratifies the Treaty on the Non-Proliferation of Nuclear
Weapons (21 UST 483) or the Treaty for the Prohibition of
Nuclear Weapons in Latin America (commonly known as the Treaty
of Tlatelolco);
``(II) negotiates full-scope safeguards of the International
Atomic Energy Agency not later than two years after
ratification by Cuba of such Treaty; and
``(III) incorporates internationally accepted nuclear safety
standards.''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect on October 1, 1997, or the date of the
enactment of this Act, whichever occurs later.
(b) Opposition to Certain Programs or Projects.--The Secretary of
State shall direct the United States representative to the
International Atomic Energy Agency to oppose the following:
(1) Technical assistance programs or projects of the Agency
at the Juragua Nuclear Power Plant near Cienfuegos, Cuba, and
at the Pedro Pi Nuclear Research Center.
(2) Any other program or project of the Agency in Cuba that
is, or could become, a threat to the security of the United
States.
(c) Reporting Requirements.--
(1) Request for iaea reports.--The Secretary of State shall
direct the United States representative to the International
Atomic Energy Agency to request the Director-General of the
Agency to submit to the United States all reports prepared with
respect to all programs or projects of the Agency that are of
concern to the United States, including the programs or
projects described in subsection (b).
(2) Annual reports to the congress.--Not later than 180 days
after the date of the enactment of this Act, and on an annual
basis thereafter, the Secretary of State, in consultation with
the United States representative to the International Atomic
Energy Agency, shall prepare and submit to the Congress a
report containing a description of all programs or projects of
the Agency in each country described in section 307(a) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2227(a)).
SEC. 1710. UNITED STATES POLICY WITH RESPECT TO JERUSALEM AS THE
CAPITAL OF ISRAEL.
(a) Limitation.--Of the amounts authorized to be appropriated by
section 1101(4) for ``Acquisition and Maintenance of Buildings Abroad''
$25,000,000 for the fiscal year 1998 and $75,000,000 for the fiscal
year 1999 is authorized to be appropriated for the construction of a
United States Embassy in Jerusalem, Israel.
(b) Limitation on Use of Funds for Consulate in Jerusalem.--None of
the funds authorized to be appropriated by this division may be
expended for the operation of a United States consulate or diplomatic
facility in Jerusalem unless such consulate or diplomatic facility is
under the supervision of the United States Ambassador to Israel.
(c) Limitation on Use of Funds for Publications.--None of the funds
authorized to be appropriated by this division may be available for the
publication of any official government document which lists countries
and their capital cities unless the publication identifies Jerusalem as
the capital of Israel.
(d) Record of Place of Birth.--For purposes of the registration of
birth, certification of nationality, or issuance of a passport of a
United States citizen born in the city of Jerusalem, upon request, the
Secretary of State shall permit the place of birth to be recorded as
Jerusalem, Israel.
SEC. 1711. REPORT ON COMPLIANCE WITH THE HAGUE CONVENTION ON
INTERNATIONAL CHILD ABDUCTION.
Beginning 6 months after the date of the enactment of this Act and
every 12 months thereafter during the fiscal years 1998 and 1999, the
Secretary shall provide to the appropriate congressional committees a
report on the compliance with the provisions of the the Hague
Convention on the Civil Aspects of International Child Abduction by the
signatories to such convention. Each such report shall include the
following information:
(1) The number of applications for the return of children
submitted by United States citizens to the Central Authority
for the United States that remain unresolved more than 18
months after the date of filing.
(2) A list of the countries to which children in unresolved
applications described in paragraph (1) are alleged to have
been abducted.
(3) A list of the countries that have demonstrated a pattern
of noncompliance with the obligations of such convention with
respect to applications for the return of children submitted by
United States citizens to the Central Authority for the United
States.
(4) Detailed information on each unresolved case described in
paragraph (1) and on actions taken by the Department of State
to resolve each such case.
SEC. 1712. SENSE OF CONGRESS RELATING TO RECOGNITION OF THE ECUMENICAL
PATRIARCHATE BY THE GOVERNMENT OF TURKEY.
It is the sense of the Congress that the United States--
(1) should recognize the Ecumenical Patriarchate and its
nonpolitical, religious mission;
(2) should encourage the continued maintenance of the
institution's physical security needs, as provided for under
Turkish and international law; and
(3) should use its good offices to encourage the reopening of
the Ecumenical Patriarchate's Halki Patriarchal School of
Theology.
SEC. 1713. RETURN OF HONG KONG TO PEOPLE'S REPUBLIC OF CHINA.
It is the sense of the Congress that--
(1) the return of Hong Kong to the People's Republic of China
should be carried out in a peaceful manner, with respect for
the rule of law and respect for human rights, freedom of
speech, freedom of the press, freedom of association, freedom
of movement; and
(2) these basic freedoms are not incompatible with the rich
culture and history of the People's Republic of China.
SEC. 1714. DEVELOPMENT OF DEMOCRACY IN THE REPUBLIC OF SERBIA.
(a) Findings.--The Congress finds the following:
(1) The United States stands as a beacon of democracy and
freedom in the world.
(2) A stable and democratic Republic of Serbia is important
to the interests of the United States, the international
community, and to peace in the Balkans.
(3) Democratic forces in the Republic of Serbia are beginning
to emerge, notwithstanding the efforts of Europe's longest-
standing communist dictator, Slobodan Milosevic.
(4) The Republic of Serbia completed municipal elections on
November 17, 1996.
(5) In 14 of Serbia's 18 largest cities, and in a total of 42
major municipalities, candidates representing parties in
opposition to the Socialist Party of President Milosevic and
the Yugoslav United Left Party of his wife Mirjana Markovic won
a majority of the votes cast.
(6) Socialist Party-controlled election commissions and
government authorities thwarted the people's will by annulling
free elections in the cities of Belgrade, Nis, Smederevska
Palanka, and several other cities where opposition party
candidates won fair elections.
(7) Countries belonging to the Organization for Security and
Cooperation in Europe (OSCE) on January 3, 1997, called upon
President Milosevic and all the political forces in the
Republic of Serbia to honor the people's will and honor the
election results.
(8) Hundreds of thousands of Serbs marched in the streets of
Belgrade on a daily basis from November 20, 1996, through
February 1997, demanding the implementation of the election
results and greater democracy in the country.
(9) The partial reinstatement of opposition party victories
in January 1997 and the subsequent enactment by the Serbian
legislature of a special law implementing the results of all
the 1996 municipal elections does not atone for the Milosevic
regime's trampling of rule of law, orderly succession of power,
and freedom of speech and of assembly.
(10) The Serbian authorities have sought to continue to
hinder the growth of a free and independent news media in the
Republic of Serbia, in particular the broadcast news media, and
harassed journalists performing their professional duties.
(b) Sense of the Congress.--It is the sense of the Congress that--
(1) the United States, the Organization for Security and
Cooperation in Europe (OSCE), and the international community
should continue to press the Government of the Republic of
Serbia to ensure the implementation of free, fair, and honest
presidential and parliamentary elections in 1997, and to fully
abide by their outcome;
(2) the United States, the OSCE, the international community,
nongovernmental organizations, and the private sector should
continue to promote the building of democratic institutions and
civic society in the Republic of Serbia, help strengthen the
independent news media, and press for the Government of the
Republic of Serbia to respect the rule of law; and
(3) the normalization of relations between the Federal
Republic of Yugoslavia and the United States requires, among
other things, that President Milosevic and the leadership of
Serbia--
(A) ensure the implementation of free, fair, and
honest presidential and parliamentary elections in
1997;
(B) abide by the outcome of such elections; and
(C) promote the building of democratic institutions,
including strengthening the independent news media and
respecting the rule of law.
SEC. 1715. RELATIONS WITH VIETNAM.
(a) Sense of Congress.--It is the sense of the Congress that--
(1) the development of a cooperative bilateral relationship
between the United States and the Socialist Republic of Vietnam
should facilitate maximum progress toward resolving outstanding
POW/MIA issues, promote the protection of human rights
including universally recognized religious, political, and
other freedoms, contribute to regional stability, and encourage
continued development of mutually beneficial economic
relations;
(2) the satisfactory resolution of United States concerns
with respect to outstanding POW/MIA, human rights, and refugee
issues is essential to the full normalization of relations
between the United States and Vietnam;
(3) the United States should upgrade the priority afforded to
the ongoing bilateral human rights dialog between the United
States and Vietnam by requiring the Department of State to
schedule the next dialog with Vietnam, and all subsequent
dialogs, at a level no lower than that of Assistant Secretary
of State;
(4) during any future negotiations regarding the provision of
Overseas Private Investment Corporation insurance to American
companies investing in Vietnam and the granting of Generalized
System of Preference status for Vietnam, the United States
Government should strictly hold the Government of Vietnam to
internationally recognized worker rights standards, including
the right of association, the right to organize and bargain
collectively, and the prohibition on the use of any forced or
compulsory labor; and
(5) the Department of State should consult with other
governments to develop a coordinated multilateral strategy to
encourage Vietnam to invite the United Nations Special
Rapporteur on Religious Intolerance to visit Vietnam to carry
out inquiries and make recommendations.
(b) Report to Congress.--In order to provide Congress with the
necessary information by which to evaluate the relationship between the
United States and Vietnam, the Secretary shall report to the
appropriate congressional committees, not later than 90 days after the
enactment of this Act and every 180 days thereafter during fiscal years
1998 and 1999, on the extent to which--
(1) the Government of the Socialist Republic of Vietnam is
cooperating with the United States in providing the fullest
possible accounting of all unresolved POW/MIA cases and the
recovery and repatriation of American remains;
(2) the Government of the Socialist Republic of Vietnam has
made progress toward the release of all political and religious
prisoners, including but not limited to Catholic, Protestant,
and Buddhist clergy;
(3) the Government of the Socialist Republic of Vietnam is
cooperating with requests by the United States to obtain full
and free access to persons of humanitarian interest to the
United States for interviews under the Orderly Departure (ODP)
and Resettlement Opportunities for Vietnamese Refugees (ROVR)
programs, and in providing exit visas for such persons;
(4) the Government of the Socialist Republic of Vietnam has
taken vigorous action to end extortion, bribery, and other
corrupt practices in connection with such exit visas; and
(5) the Government of the United States is making vigorous
efforts to interview and resettle former reeducation camp
victims, their immediate families including, but not limited
to, unmarried sons and daughters, former United States
Government employees, and other persons eligible for the ODP
program, and to give such persons the full benefit of all
applicable United States laws including, but not limited to,
sections 599D and 599E of the Foreign Operations, Export
Financing, and Related Programs Appropriations Act of 1990
(Public Law 101-167).
SEC. 1716. STATEMENT CONCERNING RETURN OF OR COMPENSATION FOR WRONGLY
CONFISCATED FOREIGN PROPERTIES.
The Congress--
(1) welcomes the efforts of many post-Communist countries to
address the complex and difficult question of the status of
plundered properties;
(2) urges countries which have not already done so to return
plundered properties to their rightful owners or, as an
alternative, pay compensation, in accordance with principles of
justice and in a manner that is just, transparent, and fair;
(3) calls for the urgent return of property formerly
belonging to Jewish communities as a means of redressing the
particularly compelling problems of aging and destitute
survivors of the Holocaust;
(4) calls on the Czech Republic, Latvia, Lithuania, Romania,
Slovakia, and any other country with restrictions which require
those whose properties have been wrongly plundered by Nazi or
Communist regimes to reside in or have the citizenship of the
country from which they now seek restitution or compensation to
remove such restrictions from their restitution or compensation
laws;
(5) calls upon foreign financial institutions, and the states
having legal authority over their operation, that possess
wrongfully and illegally obtained property confiscated from
Holocaust victims, from residents of former Warsaw Pact states
who were forbidden by Communist law from obtaining restitution
of such property, and from states that were occupied by Nazi,
Fascist, or Communist forces, to assist and to cooperate fully
with efforts to restore this property to its rightful owners;
and
(6) urges post-Communist countries to pass and effectively
implement laws that provide for restitution of, or compensation
for, plundered property.
DIVISION C--FUNDING LEVELS
SEC. 2001. AUTHORIZATION OF APPROPRIATIONS FOR CERTAIN PROGRAMS.
Subject to section 634A of the Foreign Assistance Act of 1961, there
are authorized to be appropriated to the President for fiscal year
1998, $116,878,000. Amounts made available pursuant to such
authorization shall be transferred to and merged with funds made
available to accounts authorized to be appropriated by this Act (and
amendments made by this Act) that are below the President's fiscal year
1998 request. Amounts transferred and merged under this subsection may
not increase an appropriation account above the President's fiscal year
1998 request.
background and purpose
H.R. 1486, the Foreign Policy Reform Act, represents a
bipartisan effort to reform the foreign assistance and other
international affairs programs of the United States. While
there are still many details to be worked out, the Committee is
united in the belief that the United States has a vital role to
play in securing peace and prosperity for our country aboard.
In the coming century, America will continue to face
serious threats from abroad. Since 1970, India, Pakistan, South
Africa and North Korea built nuclear weapons. Iraq, Iran,
Syria, Myanmar, North Korea and Libya built large numbers of
chemical and biological weapons.
The threat from illict narcotics from abroad costs our
society more than $67 billion annually in crime, incarceration,
health care and lost wages. We need to fight drugs abroad at
their source before they reach our streets, infect our schools
and destroy future generations.
Americans also depend on the world economy. Up to one-third
of all Americans depend directly or indirectly on exports for
their family's income. America is the world's number one
exporter and our export sector led the economy out of the last
recession. Old foreign assistance recipients have become
growing U.S. markets. For example, the 25 million people of
Central America now buy more American goods than 900 million
Indians. Our challenge is to direct assistance programs and
policies toward building free markets and democratic societies
while retaining the capacity to provide humanitarian aid that
reflects the highest American values.
These facts call for an aggressive, engaged foreign policy
that builds alliances with our friends while advancing our
economic interests and values. The Committee hopes that this
bill will begin to lay that foundation by reforming our
diplomatic institutions and the assistance programs that back
it up.
This bill authorizes funding for the operations and
programs of the State Department, Agency for International
Development, U.S. Information Agency, and Arms Control and
Disarmament Agency. The Committee intends to reduce the level
of funding authorized in the bill as necessary to conform to
the allocation provided for international affairs programs by
the House Budget Committee Chairman.
The Committee is pleased that an amendment will be offered
during floor consideration of the bill to abolish and
consolidate into the State Department two agencies funded under
the bill (the U.S. Information Agency and the Arms Control and
Disarmament Agency) and partially consolidate a third such
agency (the Agency for International Development) into the
Department of State. A similar provision in the Committee's
authorization bill during the 104th Congress (H.R. 1561) was
bitterly opposed by the Administration and ultimately led the
President to veto that bill.
On April 17th of this year, the President changed direction
and endorsed a plan to reorganize the foreign affairs agencies
of the U.S. Government along the lines suggested in H.R. 1561.
The Committee regrets that it took so long for the President to
recognize the urgent need to adapt the foreign affairs
structure of the U.S. Government to post-Cold War requirements.
Now that he has done so, however, the Committee looks forward
to implementing a reorganization plan that will streamline
decision-making, eliminate overlapping functions, and save
money.
committee action
division a
On February 12, 1997, the Full Committee held a hearing on
the future of the Overseas Private Investment Corporation
(OPIC). Witnesses for this hearing included: Congressman Jim
Kolbe; Congressman Robert E. Andrews; Ms. Anne H. Predieri,
Director, Project Finance Group, Nationsbanc Capital Markets,
Inc.; Mr. Peter Ferrara, General Counsel and Chief Economist,
Americans for Tax Reform; and Mr. Peter Bowe, President,
Ellicott International.
On February 25, 1997, the Full Committee held a hearing on
the Administration's fiscal year 1998 foreign assistance budget
request. The witness for this hearing was Administrator Brian
J. Atwood, Agency for International Development.
On February 26, 1997, the Full Committee held a hearing on
``New Thinking on Foreign Assistance''. The witnesses for this
hearing included: Hon. Mickey Edwards, Council on Foreign
Relations; Hon. Stephen Solarz, Council on Foreign Relations;
Mr. David Gordon, Overseas Development Council; Ms. Julia Taft,
President, InterAction; and Ms. Carol Lancaster, Assistant
Professor, School of Foreign Service, Georgetown University.
On February 26, 1997, the Subcommittee on Asia and the
Pacific held a hearing on U.S. policy toward North Korea. The
witnesses for this hearing included: Acting Assistant Secretary
for East Asian and Pacific Affairs Charles Kartman, Department
of State; Deputy Assistant Secretary for East Asian and Pacific
Affairs Dr. Kurt Campbell, Department of Defense; Hon. James R.
Lilley, Director, Institute for Global Chinese Affairs,
University of Maryland; Dr. Roy Richard Grinker, Associate
Professor of Anthropology and International Relations, George
Washington University; and Dr. Robert A. Manning, Senior
Fellow, Progressive Policy Institute.
On March 5, 1997, the Subcommittee on Asia and the Pacific
held a hearing on AIDactivities in Asia and the Central Asian
Republics. The witnesses for this hearing included: Assistant
Administrator for Europe and the New Independent States Thomas Dine,
U.S. Agency for International Development; Deputy Assistant
Administrator for Asia Charles Weden, U.S. Agency for International
Development; and a panel of private witnesses.
On March 11, 1997, the Full Committee held a hearing on
U.S. Assistance to the Newly Independent States for the former
Soviet Union. The witnesses for this hearing included:
Ambassador Richard Morningstar, Coordinator of U.S. Assistance
to the Newly Independent States, Department of State; and
Assistant Administrator for Europe and the Newly Independent
States Thomas Dine, Agency for International Development.
On March 12, 1997, the Full Committee held a hearing on
U.S.-Russian relations. The witness for this hearing was
Ambassador-at-Large for the New Independent States James F.
Collins, Department of State.
On March 13, 1997, the Full Committee held a hearing on
foreign assistance and U.S. foreign policy. The witnesses for
this hearing included: Mr. Howard Kohr, Executive Director,
American Israel Public Affairs Committee; Mr. Andrew Manatos,
President, Manatos and Manatos; Father Sean McManus, President,
Irish National Caucus, Inc.; Mr. C. Payne Lucas, President,
Africare; Mr. Sy Taubenblatt, Senior Executive Representative,
Bechtel Corp.; Mr. Andrew Natsios, Executive Director, Relief
and Development, World Vision; Ms. Anna Stout, Executive Vice
President, American League for Exports and Security Assistance;
Bishop John Ricard, President and Chairman, Catholic Relief
Services; and Mr. Ted Carpenter, Vice President, CATO.
On March 13, 1997, the Subcommittee on Africa held a
hearing on the impact of U.S. development assistance in Africa.
The witnesses for this hearing included: Assistant Secretary
for Africa George Moose, Department of State; Acting Assistant
Administrator for Africa Carol Peasley, U.S. Agency for
International Development; Hon. Edward DeJarnette, Executive
Director, U.S.-Angola Chamber of Commerce; Nicholas Eberstadt,
PhD, Visiting Scholar, American Enterprise Institute; Mr.
William Ford, President, African Development Foundation; Mr.
Michael Maron, journalist/author; and Ms. Carol Lancaster,
Assistant Professor, School of Foreign Service, Georgetown
University.
On March 18, 1997, the Subcommittee on International
Economic Policy and Trade held a hearing on the Overseas
Private Investment Corporation. The witnesses for this hearing
included: Hon. Ruth Harkin, CEO, OPIC; Mr. Thomas Schatz,
President, Citizens Against Government Waste; Mr. Kevin
Callwood, Corporate Council on Africa; and Ms. Linda Powers,
Senior Vice President, Global Finance, Enron International.
On March 19, 1997, the Subcommittee on Africa held a
hearing on ``Economic Development of Africa's Natural
Resources''. The witnesses for this hearing included:
Congressman Clay Shaw; Mr. Michael Fay, Project Director,
Noubale-Ndoki.
On March 20, 1997, the Full Committee held a hearing the
Administration's security assistance request for FY98. The
witness for this hearing was Secretary of Defense William
Cohen.
On April 10, 1997, the Full Committee held a hearing on
U.S. policy toward Egypt. The witnesses for this hearing
included: Mr. Robert Satloff, Executive Director, The
Washington Institute for Near East Policy; Mr. Abraham Foxman,
National Director, Anti-Defamation League; Mr. Joseph Stork,
Advocacy Director for Middle East, Human Rights Watch; and Dr.
Mamoun Fandy, Professor of Politics, Center for Contemporary
Arab Studies, Georgetown University.
division b
On February 11, 1997, the Full Committee held a hearing on
the Administration's international affairs budget for FY98. The
witness for this hearing was Secretary of State Madeleine
Albright.
On February 26, 1997, the Subcommittee on International
Operations and Human Rights held a hearing on Department of
State management initiatives. The witness for this hearing was
Acting Under Secretary for Management Patrick Kennedy,
Department of State.
On March 5, 1997, the Subcommittee on International
Operations and Human Rights held a hearing on foreign relations
authorization for FY98-99: Arms Control and Disarmament Agency.
The witness for this hearing was Director John D. Holum, U.S.
Arms Control and Disarmament Agency.
On March 11, 1997, the Subcommittee on International
Operations and Human Rights held a hearing on Foreign Relations
Authorization for FY 98-99: Refugees and Migration. The witness
for this hearing was Assistant Secretary for the Bureau of
Population, Refugees and Migration Phyllis Oakley, Department
of State.
On March 13, 1997, the Subcommittee on International
Operations and Human Rights held a hearing on the ``Foreign
Relations Authorization Act for FY 98-99: U.S. Information
Agency and the National Endowment for Democracy''. The
witnesses for this hearing included: Director Joseph Duffey,
U.S. Information Agency; Chairman David Burke, Broadcasting
Board of Governors; and Carl Gershman, President, National
Endowment for Democracy.
On March 18, 1997, the Subcommittee on International
Operations and Human Rights held a hearing on the ``Foreign
Relations Authorization Act for FY 98-99: International
Organizations and Conferences''. The witness for this hearing
was Acting Assistant Secretary for the Bureau of International
Organization Affairs Princeton Lyman, Department of State. On
April 9, 1997, the Full Committee held a hearing on U.N.
peacekeeping. The witnesses for this hearing included: Mr.
Harold J. Johnson, Associate Director, International Relations
and Trade Issues, General Accounting Office; Mr. John Hillen,
Defense and Foreign Policy Analyst, Heritage Foundation; and
Mr. John Bolton, Senior Vice President, American Enterprise
Institute.
On April 10, 1997, the Subcommittee on International
Operations and Human Rights held a markup on H.R. 1253, the
Foreign Relations Authorization Act for FY 98-99.
On April 17, 1997, the Full Committee held a second hearing
on U.N. peacekeeping. The witnesses for this hearing included:
Assistant Secretary for International Organizational Affairs
Princeton Lyman, Department of State; and Assistant Secretary
for Strategy Edward (Ted) L. Warner, Department of Defense.
markup of the bill
H.R. 1486 was introduced by Chairman Gilman on April 29,
1997. The Full Committee marked up the bill in open session,
pursuant to notice, on April 30, May 1, and May 6, 1997. On May
6, 1997, a quorum being present, the Committee by voice vote
ordered the bill reported to the House with the recommendation
that the bill, as amended, do pass.
roll call votes on amendments
In compliance with clause (2)(l)(2)(B) of rule XI of the
Rules of the House of Representatives, the record of committee
roll call votes on final passage or amendments during the
committee's consideration of H.R. 1486 is set out on the
following pages, as is a report of the committee's final action
on the bill.
description of amendment, motion, order, or other proposition
Votes during markup of H.R. 1486--April 30
Vote #1 (12:37 p.m.)--Ackerman amendment to strike Section
302 of the introduced bill, relating to assistance to countries
which do not vote with the United States in the United Nations.
Voting yes: Houghton, Campbell, Hamilton, Gejdenson,
Lantos, Ackerman, Payne, Andrews, Menendez, McKinney, Hastings,
Danner, Hilliard, Capps, Sherman, Wexler, Clement, Luther,
Davis.
Voting no: Gilman, Goodling, Hyde, Bereuter, Smith,
Gallegly, Ballenger, Rohrabacher, King, Kim, Chabot, Sanford,
Graham, Blunt, Brady.
Passed 19-15.
Vote #2 (2:34 p.m.)--Hamilton amendment to eliminate drug
certification process under the Foreign Assistance Act.
Voting yes: Gilman, Bereuter, Rohrabacher, Campbell,
Hamilton, Gejdenson, Lantos, Berman, Ackerman, Faleomavaega,
Martinez, Payne, Andrews, Menendez, Brown, McKinney, Hastings,
Danner, Hilliard, Capps, Sherman, Rothman, Luther, Davis.
Voting no: Goodling, Smith, Burton, Gallegly, Ballenger,
Manzullo, Royce, King, Kim, Chabot, Sanford, Salmon, Fox,
McHugh, Blunt, Moran, Brady, Clement.
Passed 24-18.
Vote #3 (3:29 p.m.)--McKinney amendment to require
adherence to an arms transfer code of conduct.
Voting yes: Leach, Smith, Rohrabacher, Campbell, Lantos,
Berman, Ackerman, Faleomavaega, Martinez, Payne, Andrews,
Menendez, Brown, McKinney, Hastings, Danner, Hilliard, Capps,
Rothman, Clement, Luther.
Voting no: Gilman, Goodling, Bereuter, Burton, Ros-
Lehtinen, Ballenger, Manzullo, Royce, King, Kim, Chabot,
Sanford, Salmon, Houghton, McHugh, Graham, Blunt, Moran, Brady,
Hamilton, Gejdenson, Sherman, Davis.
Failed 21-23.
Vote #4 (4:25 p.m.)--Royce substitute to Payne amendment
restricting assistance to Morocco.
Voting yes: Bereuter, Smith, Ballenger, Rohrabacher,
Manzullo, Royce, Chabot, Salmon, Houghton, Faleomavaega,
Martinez, Payne, Andrews, Menendez, Brown, McKinney, Hilliard,
Clement.
Voting no: Gilman, Burton, Ros-Lehtinen, King, Sanford,
Campbell, McHugh, Graham, Blunt, Moran, Brady, Hamilton,
Gejdenson, Lantos, Hastings, Sherman, Rothman, Luther, Davis.
Failed 18-20.
Votes During markup of H.R. 1486--May 1
Vote #1 (1:15 p.m.)--Campbell amendment to Houghton
amendment on African Development Fund. The Campbell amendment
would have required, rather than permitted, a transfer of
resources to the Fund.
Voting yes: Sanford, Campbell, Gejdenson, Lantos, Ackerman,
Payne, Menendez, Brown, McKinney, Hastings, Hilliard, Capps,
Sherman, Luther, Davis.
Voting no: Gilman, Bereuter, Smith, Ballenger, Rohrabacher,
Manzullo, Royce, Kim, Houghton, Fox, McHugh, Blunt, Brady,
Hamilton, Berman, Danner, Wexler, Rothman, Clement.
Failed 15-19.
Vote #2 (2:56 p.m.)--Campbell amendment transferring aid
from Egypt and Israel to Africa.
Voting yes: Ballenger, Rohrabacher, Sanford, Campbell,
Payne, Brown, McKinney, Hilliard, Luther.
Voting no: Gilman, Hyde, Bereuter, Smith, Burton, Manzullo,
Royce, King, Kim, Chabot, Salmon, Houghton, Fox, McHugh,
Graham, Blunt, Moran, Brady, Hamilton, Gejdenson, Berman,
Ackerman, Martinez, Menendez, Hastings, Danner, Capps, Sherman,
Wexler, Rothman, Clement, Davis.
Failed 9-32.
Vote #3 (3:09 p.m.)--Sherman perfecting amendment to the
Burton substitute to original Sherman amendment providing for
assistance to residents of Nagorno-Karabakh.
Voting yes: Hamilton, Gejdenson, Berman, Ackerman,
Martinez, Menendez, Brown, McKinney, Hastings, Capps, Sherman,
Rothman, Luther, Davis.
Voting no: Gilman, Hyde, Bereuter, Smith, Burton,
Ballenger, Rohrabacher, Manzullo, King, Kim, Chabot, Sanford,
Salmon, Houghton, Campbell, Fox, McHugh, Graham, Moran, Brady,
Danner, Hilliard, Clement.
Failed 14-23.
Vote #4 (4:10 p.m.)--Hyde amendment to Rohrabacher
amendment (relative to assistance to Russia if it provided
certain assistance to China) permitting the President to waive
the restrictions in certain circumstances.
Voting yes: Gilman, Hyde, Bereuter, Smith, Ballenger, King,
Houghton, Fox, McHugh, Hamilton, Gejdenson, Lantos, Ackerman,
Martinez, Payne, Menendez, Hastings, Capps, Sherman, Clement,
Luther, Davis.
Voting no: Burton, Rohrabacher, Manzullo, Royce, Kim,
Chabot, Sanford, Salmon, Campbell, Graham, Brady, Brown,
McKinney, Rothman.
Passed 22-14.
Votes during markup of H.R. 1486--May 6
Vote #1 (7:35 p.m.)--Campbell amendment on family planning
(relaxing restrictions in the introduced bill relative to
funding for the UN Population Fund)
Voting yes: Gilman, Leach, Houghton, Campbell, Hamilton,
Gejdenson, Lantos, Berman, Ackerman, Martinez, Payne, Menendez,
Brown, McKinney, Hastings, Hilliard, Capps, Sherman, Wexler,
Rothman, Clement, Luther, Davis.
Voting no: Goodling, Hyde, Bereuter, Smith, Ros-Lehtinen,
Ballenger, Rohrabacher, Manzullo, Royce, King, Chabot, Sanford,
Fox, Blunt, Moran, Brady.
Passed 23-16.
Vote #2 (8:09 p.m.)--Sanford amendment cutting funding in
each account in the bill to its FY 96 level.
Voting yes: Goodling, Ballenger, Rohrabacher, Royce,
Chabot, Sanford, Salmon, Campbell, Graham, Blunt, Moran, Brady.
Voting no: Gilman, Bereuter, Smith, Burton, Ros-Lehtinen,
King, Houghton, Fox, McHugh, Hamilton, Gejdenson, Lantos,
Berman, Ackerman, Martinez, Payne, Menendez, Brown, McKinney,
Hastings, Danner, Hilliard, Capps, Sherman, Wexler, Rothman,
Clement, Luther, Davis.
Failed 12-39
Vote #3 (8:24 p.m.)--Sanford amendment cutting funding in
each account in the bill to its FY 97 level.
Voting yes: Goodling, Burton, Ballenger, Rohrabacher,
Royce, Chabot, Sanford, Salmon, Campbell, Graham, Blunt, Moran,
Brady.
Voting no: Gilman, Bereuter, Smith, Ros-Lehtinen, King,
Houghton, Fox, McHugh, Hamilton, Gejdenson, Lantos, Berman,
Ackerman, Martinez, Payne, Menendez, Brown, McKinney, Hastings,
Danner, Hilliard, Capps, Sherman, Wexler, Rothman, Clement,
Luther, Davis.
Failed 13-28.
Note: The bill was ordered reported favorably, amended, by
voice vote, a quorum being present, on May 6, 1997.
section-by-section analysis
division a--international affairs agency consolidation, foreign
assistance reform and foreign assistance authorizations
Title I--General Provisions
Sec. 101.--Short Title. This section provides that Division
A may be cited as the ``Foreign Assistance Reform Act of
1997''.
Sec. 102.--Declaration of Policy. This section includes a
congressional declaration that (1) U.S. leadership overseas
must be maintained, (2) foreign assistance programs support
that leadership and (3) these programs must be reformed to take
advantage of opportunities in the 21st century.
Title II--Consolidation of Certain Foreign Assistance Agencies
Title II of Division A provides for the consolidation of
certain foreign assistance agencies, including the
International Development Cooperation Agency. Section 1707 of
the Bill calls for the Secretary of State, after consultations
with the appropriate committees, to submit a plan to the
Congress to consolidate some or all of the functions currently
performed by the Department of State, the Agency for
International Development, and the Arms Control and Disarmament
Agency. The Committee is aware that the President announced on
April 18, 1997, a plan to integrate certain agencies and
functions into the Department of State. The Committee is
prepared to work with the Administration to streamline and
consolidate the foreign affairs agencies of the US Government
and expects the administration to consult with the Committee
about a more comprehensive approach to this issue that will be
offered during consideration of this measure on the House
floor.
Chapter 1--General Provisions
Sec. 201.--Short Title. This section provides that the
title may be cited as the ``International Affairs Agency
Consolidation Act of 1997''.
Sec. 202.--Definitions. This section defines ``USAID'' as
the ``United States Agency for International Development'',
``federal agency'' under 5 U.S.C. 551(1), and ``function'' as
any duty, obligation, power, authority, responsibility, right,
privilege, activity or program.
Chapter 2--United States International Development
Cooperation Agency
Subchapter A--Abolition of United States International Development
Cooperation Agency and Transfer of Functions to United States Agency
for International Development
Sec. 211.--Abolition of United States International
Development Cooperation Agency. Subsection (a) abolishes the
International Development Cooperation Agency (``IDCA''). Until
1979, AID and its Administrator served under the direction of
the Secretary of State. IDCA was formed during the Carter
Administration to boost the attention paid to international
development and trade issues. IDCA's Director reported to the
President directly.
IDCA only served as an independent entity during the tenure
of its first Director. Since then, the Administrator of AID
also served as the Director of IDCA. IDCA quickly became an
empty shell of an office whose sole benefit was to permit the
AID Administrator, as the Director of IDCA, to report directly
to the President, instead of the Secretary of State.
The bill would return AID's management and reporting
responsibilities to their status prior to the 1979 Executive
Order that established IDCA.
Subsection (b) makes conforming amendments that nullify:
(1) the reorganization plan number 2 of 1979,
(2) parts of Executive Order 1263,
(3) the IDCA Delegation of Authority Numbered 1
(except for section 1-6), and
(4) section 3 of Executive Order 12884 that created
and defined IDCA.
Subsection (c) makes these changes effective six months
following enactment of this Act.
Sec. 212.--Transfer of Function to United States Agency for
International Development. Subsection (a) transfers all of the
functions and other responsibilities of IDCA's Director to the
Administrator of AID. Subsection (b) makes this transfer
effective six months following the enactment of this act.
Sec. 213.--Transition Provisions. Subsection (a) transfers
all personnel, property and records of IDCA to AID as the
Director of the Office on Management and Budget shall provide.
Any unexpended balance under IDCA is also transferred to AID as
the Office of Management and Budget (``OMB'') may decide,
provided that these balances may be expended only for the
purposes for which the appropriation was made.
Subsection (b) provides that the Director of the OMB shall
provide for terminating the affairs of IDCA.
Subchapter B--Continuation of the United States Agency for
International Development and Placement of Administrator of Agency
under the Direction of the Secretary of State
Sec. 221.--Continuation of United States Agency for
International Development and Placement of Administrator of
Agency under the Direction of the Secretary of State.
Subsection (a) provides that AID shall continue as an agency of
the federal government after the abolition of IDCA.
Subsection (b) places the Administrator of AID at the head
of this agency and ``under the direction of the Secretary of
State''. Under this subsection, the Administrator of AID shall
report to the Secretary of State on all matters concerning the
administration of the agency and implementation by that agency
of the programs under the Foreign Assistance Act, annual
appropriations acts and other statutes imposing requirements on
the Agency.
Subsection (c) provides that other officers of AID shall
continue to exercise their functions without the need for
reappointment by the President or reconfirmation by the Senate.
Sec. 231.--Conforming Amendments. This section makes a
number of conforming amendments to Titles 5, 26, and 49 of the
U.S. Code, the Inspector General Act of 1978, the International
Security and Development Cooperation Act of 1980, the State
Department Basic Authorities Act of 1956, the Foreign Service
Act of 1980, and the Export Administration Act of 1979 to
remove references to IDCA and its Director, replacing them with
references to AID and its Administrator.
Sec. 232.--Other References. This section provides that any
references that are made to IDCA or its Director are deemed to
refer to AID and its Administrator
Sec. 233.--Effective Date. This subchapter shall take
effect six months after the enactment of this Act.
Title III--Foreign Assistance Reform
Sec. 301.--Graduation from Development Assistance. This
section makes two significant changes to current law. First,
while the President regularly publishes a Congressional
Presentation Document (``CPD'') that justifies his annual
budget request, subsection (a) now formally requires the
President to publish a CPD covering programs under the Foreign
Assistance Act (``FAA'') and the Arms Export Control Act
(``AECA'') as part of the annual request for the enactment by
Congress of authorizations and appropriations for foreign
assistance programs.
The Committee was disappointed in the Administration's
failure to request a foreign assistance authorization bill
during the 104th Congress. This failure to request a bill
contributed to the inability of the Congress and the
Administration to find common ground on foreign assistance
authorization matters.
During this Congress, the Committee was pleased by the
Administration's tacit acceptance of the draft foreign
assistance measure that became the foundation of this bill. The
Committee expresses its appreciation to the current
Administrator of AID, J. Brian Atwood, for laying the
foundation for cooperation between the Administration and the
Congress on this legislation.
In the 106th Congress, the Committee directs the
Administration to return to its practice of submitting requests
for foreign assistance authorization legislation to the
Congress. The Committee directs that the Administrator should
report to the International Relations Committee and the Foreign
Relations Committee on the outlines of this request no later
than January 15, 1999.
Subsection (b) details the materials to be included in the
CPD, including the ``rationale and direct U.S. national
interest'' served by the funding request, a description of how
each program or contribution supports the objectives of the FAA
or AECA, a description of the planned country, regional or
centrally-funded programs or contributions to international
organizations and programs for the coming fiscal year.
The Committee notes that the CPD has proved of little use
in the presentation or management of the foreign assistance
program. Under the mandate provided by this section and the
Government Performance and Results Act (``the Results Act''),
the Administration shall have an opportunity to improve the
presentation of the foreign assistance program budget request
in the CPD to highlight: (1) clarity, (2) objectives, and (3)
results.
This subsection also continues the ``Green Book''
requirement for reporting the number of years and total
bilateral and multilateral funding (including loans and
guarantees) provided under the FAA or AECA for each recipient
country since 1946. The Committee notes that the Green Book
report details many countries that have received foreign
assistance for many, if not all of the years since 1946. By
implementing the subsection described below and the Results
Act, the Committee expects that the Administrationwill put
forward plans that do not provide for continued traditional development
assistance beyond 2026--the 80th anniversary of the modern foreign
assistance program. Conversely, the Committee expects that security,
relief and emergency aid of some kind will always be necessary tools of
future U.S. Presidents.
Subsection (c) contains language passed by the House in the
104th Congress as part of H.R. 1561. This provision (the ``Hyde
Amendment'') requires the President to make a determination for
each country for which bilateral development assistance is
requested for the coming fiscal year. This determination shall
estimate the year in which the country will no longer receive
bilateral development assistance. As required by the bill,
these dates will be included in the CPD submitted as part of
the budget. The Committee directs that the CPD, including these
dates, be submitted in unclassified form.
Finally, subsection (c) defines ``Development Assistance''
as assistance under the FAA's Development Assistance (Chapter
1, part 1), Development Fund for Africa (Chapter 10), FREEDOM
Support aid for the former Soviet Union (Chapter 11), and SEED
Act funding for Eastern Europe.
Sec. 302.--Limitation on Government-to-Government
Assistance. An early version of this language passed the House
during the last Congress as part of H.R. 1561. It has been
heavily modified. In March of 1995, the Vice President
committed the U.S. to provide 40 percent of AID's funding
through Private and Voluntary Organizations (``PVOs''). Under
subsection (a), the Congress recommends that the President
provide ``an increasing level allocated to cooperatives and
PVOs'' since fiscal year 1995.
Subsection (b) defines ``private and voluntary
organization'' as a private, non-governmental organization
which:
(1) is organized under the laws of a country,
(2) received funds from private sources,
(3) operates on a not-for-profit basis with tax-
exempt status (if applicable),
(4) is voluntary in that it received voluntary
contributions of money, time or in-kind support from
the public, and
(5) is engaged or intends to be engaged in voluntary,
charitable, development or humanitarian assistance
activities.
Subsection (c) requires AID to submit a report to the
Congress on the amount of funding being channeled through PVOs.
The report should use FY95 as a baseline and should report to
the Congress on how the Agency will comply with the Vice
President's commitment that 40% of U.S. grants and contracts
will be channeled through NGOs. This should include assistance
to the Newly Independent States, Eastern Europe and the
Economic Support Fund.
Sec. 303.--Micro- and Small Enterprise Development Credits.
Sections 303 and 304 contain a modified version of the text of
the Microenterprise Act (H.R. 3546) that passed the House and
was reported favorably by the Senate Foreign Relations
Committee during the second session of the 104th Congress.
Section 304 replaces the current law's section 108 of the
FAA that governed the Private Sector Revolving Fund. This
funding section became outdated following the 1990 enactment of
the Credit Reform Act.
Under subsection (a), Congress makes certain findings
supporting micro- and small enterprise and cooperative
development programs.
Subsection (b) authorizes the President to provide
assistance to micro- and small enterprises lacking full access
to credit through:
(1) loans and guarantees,
(2) training programs for lenders, and
(3) training programs for micro- and small
entrepreneurs.
Subsection (c) authorizes $1.5 million for FY 1998 and FY
1999 to provide loans and guarantees and $500,000 in each of
those fiscal years for the training of lenders and
entrepreneurs. These amounts are available until expended.
Sec. 304.--Microenterprise Development Grant Assistance.
Section 304 authorized loans, guarantees and training. This
section governs grants to micro- and small enterprise
activities to be made out of Development Assistance, FREEDOM
Support, and SEED Act funds. It adds a new section to the FAA,
section 108A, which authorizes AID to provide grant assistance
for credit and other assistance for microenterprises in
developing countries.
Subsection (a) directs assistance through U.S. and
indigenous PVOs, credit unions, cooperative development
organizations and other governmental and non-governmental
organizations. Under this subsection, approximately one-half of
credit assistance shall be used for poverty lending. The
Committee directs AID develop accounting systems carefully for
credit assistance used for poverty lending with special
accounting to keep track of loans made under $300.
This lending (1) shall meet the needs of the very poor
members of society, particularly poor women and (2) should
provide loans of $300 or less in 1995 U.S. dollars. The
subsection also recommends that the AID Administrator support
technical support for field missions, strengthen intermediary
organizations and share information.
Subsection (b) directs the Administrator to establish, in
accordance with the Results Act, a monitoring system that
establishes performance goals, performance indicators, and
recommendations for adjusting assistance to enhance performance
and the impact on the very poor, especially women. Given the
enactment and implementation of the Results Act, the Committee
believes these actions are already required under current
statute.
Sec. 305.--Private Sector Enterprise Funds. Section 305
passed the House during the 104th Congress as part of H.R.
1561. This section authorizes the establishment of enterprise
funds to support private sector growth using the model of the
SEED Act.
Currently, the President has the authority to establish
enterprise funds in Eastern Europe and the former Soviet Union.
While the record of some of these Funds leaves considerable room for
improvement, the Committee supports the general concept of Enterprise
Funds as a way to move the foreign assistance program away from
outdated government-to-government aid to aid that directly helps build
a private sector, wealth-producing economies.
Subsection (a) authorizes the establishment of new
enterprise funds as a way of fostering private sector
development. Given the importance of private sector
development, funds may be made available for such Funds
notwithstanding any other provision of law except sections 502B
(dealing with human rights) and 490 (dealing with anti-narcotic
activities).
Subsection (b) makes any country eligible for assistance
under part I of the FAA for a Fund to be established under the
terms provided in the SEED Act for Poland and Hungary. Should
the President wish to establish Funds in SEED or FREEDOM
Support countries, he would have to use the authorities of
those Acts.
Subsection (c) sets the authorities under the SEED Act for
Polish and Hungarian Funds as the model for establishing new
enterprise funds.
Subsectin (d) requires annual reports from such Funds.
Subsection (e) allows funding for these Funds to come from the
Development Assistance, Development Fund for Africa or ESF
accounts. Funding from the Development Fund for Africa may only
support enterprise funds in Africa.
Sec. 306.--Development Credit Authority. Section 306 adds a
new section 107A to the Foreign Assistance Act of 1961, and is
intended to reform development credit assistance authorities
and broaden the Administrator's authority to finance
development assistance with credit authority under the credit
reform rules of the Federal Credit Reform Act of 1990.
The general authority to use credit assistance for any of
the purposes of part 1 of the Act is not intended to change the
economic assistance priorities and objectives of the Act. Such
authority merely will allow for more rational choices about the
appropriate funding tools--be they loans, loan guarantees or
grants.
Subsection 107A (a) authorizes the use of loans, loan
guaranties and other forms of credit to meet development
assistance goals where the borrowers are deemed ``sufficiently
creditworthy'' and the development purposes can be achieved.
The Committee is concerned that AID has not yet boosted its
credit review and management capabilities to fully implement
this new authority. The Committee has received assurances from
AID and OMB that this authority will not be exercised until
those capabilities are sufficient to ensure the prompt and full
payment of any loans or guarantees made under this section.
Subsection 107 (b) indicates priority sectors for the use
of credit assistance including the micro-enterprises, small
businesses and urban, energy and environmental sectors. The new
omnibus credit authority is called the ``Development Credit
Authority''.
Subsection 107 (c) authorizes the transfer of $13 million
made available under Development Assistance, Development Fund
for Africa, SEED and ESF funds to pay for the costs of credit
activities under this section as the term ``costs'' is defined
in the Federal Credit Reform Act of 1990. Such funds, once
appropriated to a particular geographic region, must be used in
the same region. Congressional notifications are required in
advance of the transfer of funds under this section. Up to
$1,500,000 of the $13,000,000 in funds authorized to be
transferred may be used for administrative expenses. In
addition, to cover administrative expenses of implementing
guaranties already issued or outstanding under Sections 221-223
of the Act, $6,000,000 is authorized to be appropriated in each
of the next two fiscal years.
Subsection 107A (d) contains general provisions applicable
to the new Development Credit Authority. Included in
subparagraph (5) is the requirement that AID's Administrator
determine that a loan has a ``reasonable'' prospect for
repayment. By ``reasonable'', the Committee defines the terms
as ``commercially'' reasonable, i.e., standards a private
sector lender would use and not generally ``reasonable'' under
which many government loans have not been repaid.
Included in subparagraph (6) are provisions for determining
the true cost of credit activities for purposes of assuring
under the Federal Credit Reform Act that credit assistance is
managed on a sound financial basis. The cost of sovereign risk
assistance, i.e., loans to foreign governments, will be
estimated using the same system (Interagency Country Risk
Assessment System) used by all Executive Branch agencies and
departments.
The costs of non-sovereign risk assistance, i.e., lending
to private sector and other entities that are not governments,
will be determined exclusively by reference to the policies and
practices of private sector financial institutions. The
Administrator shall consult with United States private sector
debt-rating institutions prior to establishing risk assessment
standards and methodologies. The Committee expects AID to
adhere to the recommendations of the private sector debt-rating
institutions extremely closely.
The Committee is concerned about lending to private sector
and other non-governmental entities where the assessment of
risk and costs of loans and guarantees is more difficult.
Therefore, in addition, in non-sovereign risk situations where
the role of public sector financial institutions is greater
than 49% in the anticipated financing (i.e., real private
sector lenders are not the majority party and governments are
driving the transaction), the Administrator is required to use
the cost and risk assessment of the principal private sector
co-financiers (including risk, interest rates, fees, security
arrangements, etc.,) and establish the true cost of credit
assistance under this section in a manner that exactly reflects
their behavior. The Committee expects that AID will not provide
any credits or guarantees to non-sovereign parties without true
private sector co-financiers. A true private sector co-
financier is one that is owned and controlled by at least 51%
private interests. Should the Committee find that AIDE is
providing loans or guarantees to non-sovereign parties without
private co-financing, the Committee will use its notification
power to block such transactions prior to deleting this
authority in future legislation.
The Committee also understood that $3 million of the
authorized $13 million would be for the Urban and Environment
Program.
Sec. 307.--Foreign Government Parking Fines. A version of
section 307 passed the House in the 104th Congress as part of
H.R. 1561. Similar sections are regularly part of annual
appropriations acts. This section adds New York City to the
list of jurisdictions covered under this section.
This section adds a new section to the prohibitions section
of the FAA torequire the Secretary of State to withhold 110
percent of the unpaid fully adjudicated parking fines owed to the
District of Columbia, Virginia, Maryland, New York and New York City.
This section will take effect at the end of fiscal year 1998 and would
apply to any fiscal year thereafter.
Section 308.--Withholding United States assistance to
countries that aid the government of Cuba. Section 308 requires
the President to withhold assistance under the Foreign
Assistance Act of 1961 to any foreign government that provides
economic, development, or security assistance for, or engages
in nonmarket based trade with, the government of Cuba.
``Nonmarket based trade'' is specifically defined in the
section. The President may waive this provision if it is
important to the national security of the United States. The
Committee expects that the Executive Branch will apply this
section vigorously and will consult with the Committee as it
makes determinations under this section.
Title IV--Defense and Security Assistance
Chapter 1--Narcotics Control Assistance
Sec. 401.--Authorization of Appropriations. Section 401
authorizes $230 million for each of fiscal year 1998 and 1999
for international narcotics control purposes. This fully funds
the President's request for fiscal year 1998.
Sec. 402.--Additional Requirements Relating to Assistance.
Section 402(a) amends the type of assistance cut off in the
case of decertifying a country under the International
Narcotics Control chapter of the Foreign Assistance Act.
Section 402(a) excludes from the definition of assistance that
is cut off: (1) International Military Education and Training
(IMET); and (2) sales or financing provided for narcotics-
related assistance under the Arms Export Control Act following
notification in accordance with the procedures applicable to
reprogramming notifications under section 634A of the Foreign
Assistance Act. Section 402(b) provides that these changes will
be effective on or after the date of enactment of this Act.
Under current law, U.S. assistance to a major drug
trafficking or producing country is cut off if the President
does not certify that country as cooperating fully with the
United States, or taking adequate steps on its own, to achieve
full compliance with the United Nations Convention Against
Illicit Traffic in Narcotic Drugs and Psychotropic Substances
and does not provide a vital national interest waiver. IMET and
FMF financing as well as sales under the FMS program are among
the types of assistance that are cut off.
The certification law as written can create a ``Catch 22''
situation for a nation decertified without a national interest
waiver: counter narcotics-related military assistance and
training is denied to the security forces in a decertified
country despite the fact that such assistance can, in some
instances, be critical to the efforts of a country to meet the
criteria and objectives of the law in order to be subsequently
certified a year later.
As an example, in Colombia today the U.S. cannot provide
FMF or sell defense articles and services under the FMS program
or provide IMET assistance to this key ally in the fight
against drugs without using a section 614 waiver. In
particular, the prohibition on sales under the FMS program has
made it very cumbersome to maintain adequately the numerous
pieces of U.S. military equipment previously granted or sold to
the Colombian security forces. In addition current law
prohibits funds from the Department of State's counternarcotics
account from being used to provide lethal assistance (e.g.
ammunition and armaments).
Under this provision, the President is no longer precluded
from providing FMF, FMS or IMET counternarcotics-related
assistance. It is the Committee's view that such assistance
should be provided to a decertified country's security forces
if the lack of such assistance is undermining that country's
efforts to meet U.S. and international counter narcotic goals.
It is the view of the Committee that this is the case with
respect to Colombia and therefore the Committee expects the
President to provide such assistance to Colombia upon enactment
of this Act.
Sec. 403.--Authority to Withhold Bilateral Assistance and
Oppose Multilateral Development Assistance for Major Illicit
Drug Producing Countries,Drug-Transit Countries, and Money
Laundering Countries. Section 403 rewrites section 490 of the Foreign
Assistance Act. It repeals the requirements in current law (1) to
certify annually to the Congress whether or not major drug producing
and drug transiting countries have cooperated fully with U.S. anti-drug
efforts during the previous year; and (2) to impose sanctions
automatically against decertified countries unless the President
certifies to the Congress it is vital to the national interest not to
impose sanctions.
Section 403(a) amends Section 490(a) of the Foreign
Assistance Act to state that for every country required to be
identified in the International Narcotics Control Strategy
Report under Section 489(a)(3) of the Foreign Assistance Act,
the President must, to the extent the President considers it
necessary to achieve the purposes of the International
Narcotics Control chapter of the Foreign Assistance Act, take
one or more of the following actions: (1) withhold from
obligation and expenditure any or all U.S. assistance allocated
each fiscal year for each such country; (2) instruct the
Secretary of the Treasury to instruct the U.S. Executive
Director of each multilateral development bank to vote, on or
after March 1 of each year, against any loan or other
utilization of the funds of their respective institution to or
for any such country.
Section 403(a) then amends Section 490(b) of the Foreign
Assistance Act to require that in determining whether to take
one or more of these actions, the President must consider the
extent to which (1) the country has met the goals and
objectives of the U.N. Convention Against Illicit Traffic in
Narcotics Drugs and Psychotropic Substances; accomplished the
goals described in an applicable bilateral narcotics agreement
with the United States or a multilateral agreement; reached
agreement or is negotiating in good faith to reach agreement,
to ensure that banks and other financial institutions of the
country maintain adequate records of large U.S. currency
transactions; reached agreement, or is negotiating in good
faith to reach agreement, to establish a mechanism for
exchanging adequate records on international currency
transactions in connection with narcotics investigations and
proceedings; and taken legal and law enforcement measures to
prevent and punish public corruption, especially by senior
government officials, that facilitates the production,
processing, or shipment of narcotic and psychotropic drugs and
other controlled substances, or that discourages the
investigation or prosecution of such acts. The President also
must consider the extent to which (2) such actions will promote
the purposes of the International narcotics Control chapter of
the Foreign Assistance Act and affect other U.S. national
interests.
Section 403(a) next amends Section 490(c) of the Foreign
Assistance Act by requiring the President to consult with the
Congress on the status of counter narcotics cooperation between
the United States and each major illicit drug producing
country, major drug transit country, or major money laundering
country. The purpose of these consultations are to facilitate
improved discussion and understanding between the Congress and
the President on U.S. counter narcotics goals and objectives
with regard to the identified countries. To carry out such
consultations, the section requires that the President or
senior officials the President designates, meet with Members of
Congress four times a year for discussion and consultations and
whenever time sensitive issues arise.
Finally, Section 403(a) defines the term ``multilateral
development bank'' to mean 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.
Section 403(b) makes certain conforming amendments.
Chapter 2--Nonproliferation, Antiterrorism, Demining and
Related Programs
Sec. 411.--Nonproliferation, Antiterrorism, Demining and
Related Programs. Section 411 establishes a new account under
which funds are authorized for the Nonproliferation and
Disarmament Fund (NDF), antiterrorism, demining, the
International Atomic Energy Agency (IAEA) and the Korean Energy
Development Organization (KEDO). The section authorizes $110
million for fiscal year 1998 and $111 million for fiscal year
1999. Each program within the account is authorized at the
Administration's requested level for fiscal year 1998 except
for demining activities which is funded at $10 million for each
fiscal year. It is the Committee's intent to secure additional
resources to fully fund the Administration's request for
demining activities.
With respect to the Nonproliferation and Disarmament Fund
(NDF), it is theintent of the Committee to narrow the purposes
for use of this fund. Specifically, while the Committee strongly
supports the activities of the NDF and is generally pleased with its
work, funds in the NDF may no longer be used for defense conversion.
Additionally, the Committee urges that the NDF funds be utilized for
projects and activities other than seminars and conferences. Further,
in view of the Committee's long-standing position that the NDF should
be utilized to address world-wide proliferation problems, the rewritten
NDF authority now requires a national interest waiver to use funds for
nonproliferation activities in the former Soviet Union (FSU). In
putting into place such a waiver, the Committee expects it to be used
sparingly; it is the Committee's expectation that the clear majority of
the funds made available to the NDF will be used to support projects
and activities outside of the FSU, since other funds are available for
the FSU through the Cooperative Threat Reduction (CTR) program.
This section also specifically prohibits amounts made
available for the NDF from being used to implement U.S.
obligations, including assessed costs and voluntary
contributions, pursuant to bilateral or multilateral arms
control treaties or nonproliferation accords, including the
payment of salaries or expenses. In short the NDF may not be
used to pay for shortfalls in funding for assessed costs or
voluntary contributions for arms control treaties or
nonproliferation accords, or for ``PrepCom'' type activities,
or costs to host review conferences, etc. It should be clear
that the purpose of this prohibition is not to prohibit
activities that are consistent without treaty obligations but
rather only to prohibit the NDF as the source of funding for
such activities.
This section further stipulates that not less than $15
million shall be available for each of fiscal years 1998 and
1999 to carry out the purposes of the NDF. The Committee
further directs, that of these amounts, not more than $5
million in fiscal year 1998 and $3 million in fiscal year 1999
may be used for export control programs. Further this section
repeals section 504 of the FREEDOM Support Act which was
previously the authority for the NDF.
With respect to export control programs, the Committee
believes that over the long-run the NDF should not serve as the
source of funding for export control programs and therefore has
imposed ceilings on the amount of NDF funds that may be sued
for these programs. Nonetheless, the Committee believes that
the world-wide improvement of export controls is an important
priority for U.S. nonproliferation policy. Therefore, the
Committee directs the Administration to devise a long-term
program to fund U.S. efforts to improve such export controls.
The State, Commerce, and Defense Departments (and other
relevant agencies) shall agree to a program that balances their
expertise and financial obligations, so that funding and
responsibility for export controls do not continue to be a
topic of bureaucratic friction.
Of the sums authorized to be appropriated for demining
activities in this section, it is the intent of the Committee
that part of these funds shall be available to fund demining
activities in Central America under the auspices of the
Organization of American States (OAS). The Committee recognizes
the important contribution being made by the OAS and the Inter-
American Defense Board in training indigenous armed forces in
the effective and safe removal of land mines from areas of past
conflict in rural Costa Rica, El Salvador, Guatemala, Honduras,
and Nicaragua.
The Committee is encouraged that a number of private
voluntary organizations (PVOs) are initiating and implementing
mine action programs in some of the most heavily-mined
countries. The Committee recognizes the importance of these
programs and their integral relationship to the successful
rehabilitation, resettlement and long-term development of
communities after the cessation of conflict.
The Committee supports use of the funds authorized for
demining activities for humanitarian mine action and demining
programs of private voluntary organizations (PVOs), including
programs in mine awareness and education, mapping and marking,
and the training of deminers and mine clearance efforts.
The Committee has authorized $30 million for each of the
fiscal years 1998 and 1999 for the Korean Peninsula Energy
Development Organization (KEDO) which the Administration has
identified as a high priority. Such funds are limited to the
provision of heavy fuel oil and administrative expenses of KEDO
associated with the implementation of the Agreed Framework.
The Committee believes that full funding should be supplied
for KEDO in order to support continued implementation of the
Agree Framework. Full funding for KEDO at this juncture also
sends an important signal of continued U.S. support to our
allies--South Korea and Japan--as they determine whether to
provide funds to begin construction of the light waterreactors
promised under the Agreed Framework.
Chapter 3--Foreign Military Financing Program
Sec. 421.--Authorization of Appropriations. Section 421
authorizes $3,318,000,000 for fiscal year 1998 and
$3,274,250,000 for fiscal year 1999 for both grant and loan
Foreign Military Financing (FMF) under section 23 of the Arms
Export Control Act. The FY98 recommendation is $7.25 million
below the Administration's request ($15 million has been
transferred from FMF to the new account established in Chapter
2). The Committee has not fully funded the following FMF
accounts: the Enhanced International Peacekeeping Initiative
(funded at $2 million); the African Crisis Response Initiative
(funded at $3 million); East Africa Regional (funded at $4.75
million).
Sec. 422.--Assistance for Israel. Section 422 earmarks $1.8
billion in grant Foreign Military Financing (FMF) under section
23 of the Arms Export Control Act for Israel for each of fiscal
years 1998 and 1999. Terms of assistance are identical to
previous years, i.e., expedited disbursement, and $475 million
may be used by Israel for offshore procurement for advanced
weapons systems. This fully funds the President's request for
fiscal year 1998.
Sec. 423.--Assistance for Egypt. Section 423 earmarks $1.3
billion in grant Foreign Military Financing (FMF) under section
23 of the Arms Export Control Act for Egypt for each of fiscal
years 1998 and 1999. This fully funds the President's request
for fiscal year 1998.
Sec. 424.--Authorization of Assistance to Facilitate
Transition to NATO Membership under the NATO Participation Act
of 1994. Section 424 earmarks $50,900,000 for grant and loan
Foreign Military Financing (FMF) under section 23 of the Arms
Export Control Act pursuant to the authorities of the NATO
Participation Act of 1994 for Poland, Hungary, the Czech
Republic and Slovenia for each of fiscal years 1998 and 1999.
In each fiscal year the Committee intends that $30.9 million be
utilized for grant military assistance (allocated among the
four countries at the levels requested by the President) and
$20 million for the subsidy costs to support a direct military
assistance loan program.
It is the Committee's intent that the $39.1 million in FMF
be used to support the Partnership for Peace program. Combined
with the $50.9 million authorized under this section, this
fully funds the President's request for fiscal year 1998 for
military assistance to Central and Eastern Europe.
Sec. 425.--Loans for Greece and Turkey. Section 425
authorizes not more than $12,850,000 in fiscal year 1998 for
Foreign Military Financing (FMF) under section 23 of the Arms
Export Control Act for the subsidy cost to support a direct
military assistance loan program for Greece of $122.5 million
and not more than $33,150,000 in fiscal year 1998 for the
subsidy cost to support a direct military assistance loan
program for Turkey of $175 million. This fully funds the
President's request for fiscal year 1998.
No military assistance loans for Greece or Turkey are
authorized for fiscal year 1999.
Sec. 426.--Limitation on Loans. Section 426 prohibits any
Foreign Military Financing (FMF) under section 23 of the Arms
Export Control Act from being available for the subsidy costs
for direct military assistance loans in fiscal year 1999 to any
country which has a Inter-Agency Country Risk Assessment
Systems (ICRAS) rating of less than grade C-. It is the
Committee's understanding that the Defense Security Assistance
Agency had in place a long standing policy, which was waived
for FY97, to prohibit military assistance loans to any country
with below a C-ICRAS rating. This section would statutorily
impose such a limitation effective in fiscal year 1999.
Sec. 427.--Administrative Expenses. Section 427 authorizes
$23,250,000 for Foreign Military Financing (FMF) under section
23 of the Arms Export Control Act for the necessary expenses
for the general costs to administer military assistance and
sales programs. This fully funds the President's request for
fiscal year 1998.
Chapter 4--International Military Education and Training
Sec. 431.--Authorization of Appropriation. Section 431
authorizes $50,000,000 for each of fiscal years 1998 and 1999
for the International Military Education and Training (IMET)
program. This fully funds the President's request for fiscal
year 1998.
Sec. 432.--IMET Eligibility for Panama and Haiti. Section
432 makes Panama and Haiti eligible for IMET assistance.
Chapter 5--Transfer of Naval Vessels to Certain Foreign
Countries
Sec. 441.--Authority to Transfer Naval Vessels. Section 441
grants the Secretary of the Navy the authority to transfer by
sale 14 ships to 8 countries--Brazil (1 ``HUNLEY'' class
submarine tender), Chile (1 ``KAISER'' class oiler), Egypt (3
``KNOX'' class frigates and 3 ``PERRY'' class frigates), Israel
(1 ``NEWPORT'' class tank landing ship), Malaysia (1
``NEWPORT'' class tank landing ship), Mexico (1 ``KNOX'' class
frigate), Taiwan (2 ``KNOX'' lass frigates), and Thailand (1
``NEWPORT'' class tank landing ship). The sale of these ships
will increase the assets of the U.S. Treasury by $162.6
million.
Sec. 442.--Cost of Transfers. This section provides that
any cost associated with transferring ships under this
legislation will be charged to the recipient country.
Sec. 443.--Expiration of Authority. Section 443 stipulates
that the authority to transfer ships under this legislation
expires after two years.
Sec. 444.--Repair and Refurbishment of Vessels in U.S.
Shipyards. Section 444 requires, to the maximum extent
possible, that repair and refurbishment work associated with
these ships shall be done in U.S. shipyards.
Chapter 6--Indonesia Military Assistance Accountability Act
Sec. 451.--Short Title. Section 451 establishes the title
of this chapter.
Sec. 452.--Findings. Section 452 sets out congressional
findings with respect to Indonesia. Specifically, the Committee
finds that the Indonesian political system remains strongly
authoritarian, that the Government of Indonesia has not allowed
independent trade unions to function freely, has arrested labor
leaders, and has harassed a wide range of civil society
organizations. The Committee also finds that the Indonesian
armed forces continue to carry out torture and other human
rights violations in East Timor, Irian Jaya and other parts of
Indonesia. The Indonesian authorities must improve their human
rights performance if our bilateral relations are to continue
to improve. The Committee notes that the 1996 Nobel Peace Prize
was won by Bishop Belo and Jose Ramos Horta for their tireless
efforts to find a solution to the East Timor conflict. The
Committee notes that the Congress suspended the International
Military and Education Training (IMET) program for Indonesia
following the November 12, 1991 shootings by Indonesian
security forces in Dili, East Timor. The Committee notes that
former Secretary of State Christopher testified that the United
States has a strong interest in an orderly transition of power
in Indonesia, one that recognizes the country's pluralism. The
Committee also finds that the U.S. has important economic,
commercial and security interests in Indonesia that will only
be strengthened by democratic development that promotes
political pluralism and respect for human rights.
Sec. 453.--Limitation of Military Assistance to the
Government of Indonesia. Section 453 states that because of its
concern about the human rights situation in Indonesia, the
Congress has determined that the United States shall not
provide military assistance and arms transfer programs to the
Government of Indonesia during a fiscal year unless the
President determines and certifies to the Congress that the
Government of Indonesia has met various human rights condition
spelled out in Section 453 of the Act. The President may waive
this certification requirement if he determines and notifies
the Congress that an emergency exists requiringsuch assistance
and arms transfers, or that providing such assistance and transfers is
in the national interest. The provisions of this Act shall apply only
to military assistance and arms transfers made pursuant to agreements
entered into in fiscal years beginning after the date of the Act's
enactment.
Sec. 454.--United States Military Assistance and Arms
Transfers Defined. Section 454 defines the terms ``military
assistance'' and ``arms transfers'' in this Act as small arms,
crowd control equipment, armored personnel carriers, and such
other items that can be commonly used in direct violation of
human rights. The term military assistance all shall include
training provided under chapter 5 of part II of the Foreign
Assistance Act of 1961, relating to International Military
Education and Training or ``IMET.'' Expanded-IMET (assistance
under section 541 of such Act and commonly referred to as E-
IMET) is not included under the term ``military assistance'' in
this Act and such training may continue.
Chapter 7--Other Provisions
Sec. 461.--Excess Defense Articles for Certain European
Countries. Section 461 extends the authorization for fiscal
years 1998 and 1999 for the Department of Defense to expend
funds for packing, crating, handling and transporting (PCH&T)
of excess defense articles provided under section 516 of the
Foreign Assistance Act to countries that are eligible for to
participate in the Partnership for Peace program and that are
eligible under the SEED Act. These countries include Albania,
Bulgaria, the Czech Republic, Estonia, FYROM, Hungary, Latvia,
Lithuania, Poland, Romania, Slovakia and Slovenia.
Sec. 462.--Transfer of Certain Obsolete or Surplus Defense
Articles in the War Reserve Allies Stockpile to the Republic of
Korea. Section 462, which is identical to a provision enacted
into law in the FY94-95 Foreign Relations Authorization Act
(P.L. 103-236), authorizes the transfer to Korea of obsolete or
surplus equipment, tanks, weapons, repair parts or ammunition
which is currently in the war reserve stockpile in Korea. This
section requires that the value of the concessions negotiated
by the Secretary of Defense must be at least equal to the fair
market value of the items transferred. This section also
includes a notification to the Congress identifying the items
to be transferred to Korea and the concessions to be received.
Sec. 463.--Additional Requirements Relating to Stockpiling
of Defense Articles for Foreign Countries. Section 463
authorizes $60 million for fiscal year 1998 for additions to
stockpiles of DoD articles in Korea ($40 million) and in
Thailand ($20 million).
Sec. 464.--Delivery of Drawdown by Commercial Transport
Services. Section 464 amends section 506 of the Foreign
Assistance Act to authorize the Department of Defense and other
U.S. Government agencies to utilize commercial transport
services rather than U.S. Government assets for the transport
of defense articles, services or education and training if the
costs of commercial transport are less than the costs of U.S.G.
assets. This section also requires the President to provide to
the Congress a report detailing all defense articles, defense
services and military education training delivered to countries
or international organizations upon the completion of such
delivery. The report shall also include whether there were any
savings realized by utilizing commercial transportation.
Sec. 465.--Cash Flow Financing Notification. Section 465
directs the Administration to notify the Committee pursuant the
procedures applicable under 634A of the Foreign Assistance Act
of any letter of offer and acceptance or other purchase
agreement that is in excess of $100 million to any country
approved for cash flow financing under section 25 of the Arms
Export Control Act.
Sec. 466.--Multinational Arms Sales Code of Conduct.
Section 466 directs the President within 180 days to convene
negotiations with all Wassenaar Arrangement countries on a
multinational arms sales code of conduct. Such negotiations
should be convened by the President at an appropriate level of
representation. This section further sets out the purpose of
such negotiations and requires the President to report to the
Congress, within 1 year of enactment of the provision, on the
status of such negotiations.
Title V--Economic Assistance
Chapter 1--Economic Support Assistance
Sec. 501.--Economic Support Fund. The Economic Support Fund
(``ESF'') is the State Department's most flexible tool for
providing support, either as cash assistance or as project-
based aid for the support of key allies and activities directly
in support of U.S. national security. This section authorizes
the appropriation of $2,388,350,000 in FY98 and $2,350,600,000
in FY99.
cyprus
The Committee is deeply concerned about the continuing
division and foreign military occupation of Cyprus and the
recent increase in tensions on the island. The Committee
considers that the status quo on Cyprus is unjust, unacceptable
and increasingly unstable, and an urgent effort by the
international community is accordingly required to resolve it.
The Committee strongly encourages the Administration to follow
through on its declared intention to play a ``heightened role''
in promoting a just resolution of the Cyprus problem.
The Committee firmly believes that it is in the interest of
the United States to launch an early substantive initiative to
achieve a peaceful, just, viable and lasting solution on the
basis of international law, democratic principles, respect for
human rights and the provisions of relevant U.N. Security
Council Resolutions. These resolutions, most recently, 1092/96
of December 23, 1996, appropriately define the basis for such a
settlement as, ``a state of Cyprus with a single sovereignty
and international personality and a single citizenship, with
its independence and territorial integrity safeguarded, and
comprising two politically equal communities as described in
the relevant Security Council Resolutions in a bi-communal and
bi-zonal federation, and that such a settlement must exclude
union in whole or in part with any other country or any form of
partition on secession.''
The current military situation on Cyprus, in particular the
large number of Turkish occupation troops, is also a constant
source of tension and instability, both on the island and in
the wider region. Recent foreign arms transfers and the threat
of increased armaments on Cyprus are also of concern to the
Congress. The Committee reaffirms its view, most recently
embodied in H. Con. Res. 42 and in the 104th Congress, that the
security concerns of all parties concerned can most effectively
be met with the complete withdrawal of all foreign occupation
forces from the island and the total demilitarization of
Cyprus, to be replaced by alternative internationally
acceptable and effective security arrangements as negotiated by
the parties. Such security arrangements will strengthen peace
and stability and in the region, be to the benefit of all the
people of Cyprus, and enhance prospects for a lasting
resolution of the problem.
The prospect of Cyprus accession to the European Union (EU)
can also serve as a catalyst for efforts to reach a
comprehensive settlement. Negotiations for Cyprus' accession
are set to begin six months after the conclusion of the EU
Intergovernmental Conference (which is expected to end in June
of this year). This prospect provides a positive dynamic and
window of opportunity for a solution and in the coming year.
Cyprus' accession to the EU, as well as a just and viable
Cyprus settlement, will be significant economic, political and
security benefit to all Cypriots. A Cyprus solution will also
remove a point of contention between Greece and Turkey and can
allow the prospect of full normalization of the often tenuous
Greco-Turkish relationship, bringing greater stability to the
Eastern Mediterranean and directly benefiting U.S. security
interests. The prospects of reaching a lasting settlement on
Cyprus are facilitated through increasing bicommunal contact,
cooperation and reconciliation. The traditionally allocated $15
million from the Economic Support Fund each year for Cyprus is
used for projects involving such bicommunal activities and thus
plays a significant role and in promoting prospects for peace
on Cyprus. The Committee strongly recommends that the annual
allocation of $15 million for Cyprus be continued for both
fiscal years 1998 and 1999.
eastern mediterranean
It is in the national interest of the United States to hold
all countries, particularly U.S. allies, to internationally
accepted standards of conduct. The United States, the European
Union and many countries have publicly underlined the need to
protect peace and stability in the Eastern Mediterranean region
through the adherence to international treaties and the respect
for territorial integrity and internationally recognized
borders of all countries. Those who question the application or
interpretation ofinternational treaties should have recourse to
a proper international judicial or consensual body according to
established international legal practice.
The United States and other countries have also expressed
strong public opposition to the use of force or the threat of
force by any country to resolve such matters. It is essential
to peace and stability in the Eastern Mediterranean that all
countries abide by these internationally accepted standards of
conduct.
Sec. 502.--Assistance for Israel. Section 502 requires that
not less than $1,200,000,000 of ESF funds be provided to Israel
in fiscal year 1996 and fiscal year 1997. It requires a cash
transfer and early disbursement. It also requires that the
President ensure that the amount of funds provided as a cash
transfer does not cause an adverse impact on the total level of
nonmilitary exports from the United States to Israel. These
provisions are consistent with recent appropriations Acts.
A fundamental element of United States foreign policy has
been support for a strong and secure Israel. Israel remains the
most reliable strategic ally of the United States in the Middle
East, and a vital partner in the U.S. pursuit for peace in the
Middle East. There must be no doubt about the United States'
commitment to Israel. The continuation of U.S. assistance to
Israel provides that clear signal, in addition to providing
Israel with the means it needs to defend itself in an
increasingly dangerous environment. The successes of the past
few years through the peace process, including a historic peace
treaty between Israel and Jordan and progress on the Israel/
Palestinian front are the best evidence of the effectiveness of
our consistent support of Israel through our foreign assistance
programs.
The Committee notes the substantial progress which has been
made by the African American Israelite Community in Dimona,
Israel. The small community continues to enjoy support in the
Committee and in the Congress. Several Members have visited the
community in Dimona and have supported its efforts in working
with the Government of Israel to resolve citizenship and
housing problems. The Committee urges the United States and
Israel to continue to work together to help the community deal
with these issues.
Section 503.--Assistance for Egypt. Section 503 requires
that not less than $815,000,000 of Economic Support Funds be
provided for Egypt in fiscal years 1998 and 1999. Provisions in
subsection (b) add the additional requirement, traditionally
carried in annual appropriations Acts, requiring that the
President ensure that there is no adverse impact on the total
level of nonmilitary exports from the United States to Egypt as
required in the recent Foreign Operations appropriations Acts.
The Committee has adopted new language this year, in
subsection (c), noting that assistance to Egypt is based in
great measure on Egypt's continued implementation of the Camp
David accords and the Egyptian-Israeli peace treaty, that Egypt
has disappointed the Congress with respect to its fulfillment
of those obligations, particularly by its failure to meet fully
its commitment to establish with Israel ``relationships normal
to states at peace with one another'', and in its recent
support for reimposing the Arab economic boycott. Support for
future funding levels of assistance will be determined largely
on whether Egypt fulfills its obligations to develop normal
relations with Israel and to promote peace with Israel and
other critical United States interests.
Nevertheless, Egypt remains a vital U.S. ally in the Middle
East and its partner for peace in the region. The Committee
reasserts its commitment to Middle East peace and the important
role Egypt must play in achieving a comprehensive and permanent
peace.
U.S. aid to Egypt is intended to both bolster this long-
standing ally as well as to provide access to the Egyptian
market for U.S. firms and exports. AID funds provided to Egypt
support U.S. exports to Egypt as well as contracts in Egypt for
U.S. firms. The dual purpose of U.S. foreign aid is exemplified
by the telecommunications sector in Egypt, where AID has funded
projects for the last 15 years. AID funding of such projects
helped encourage the entry of U.S. telecommunications firms
into the Egyptian market in the early 1980's and this is now a
significant commercial market for such U.S. firms and U.S.
exports. These projects have greatly increased the efficiency
of Egypt's telecommunications infrastructure, which, in turn,
will help promote the growth of business in Egypt. AID's
funding of the telecommunications sector, therefore, has
ramifications far beyond that one sector.
Egyptian Patent Situation
The Committee recognizes the great strides that Egypt has
made in undertaking the necessary structural reforms of its
economy, which will benefit the Egyptian people. A critical
element in the development of a climate that will attract
foreign investment and the transfer of advanced technology--
both of which are required for a successful strategy of
economic development and job creation--is a world class system
of strong intellectual property protection, especially for
patents.
In particular, the Committee urges that Government of Egypt
to enact a law that will provide meaningful and immediate
patent protection for pharmaceutical products and notes that
the draft patent law that is currently under consideration by
the Government of Egypt could serve, with some adjustments, as
the basis for such protection.
Section 504.--International Fund for Ireland. Section 504
provides that not more than $19,600,000 in each of fiscal years
1998 and 1999 from ESF may be provided for the International
Fund for Ireland (IFI). The use of United States funds is
conditioned on recipients agreeing to adhering to the MacBride
equal opportunity principles.
Unemployment, economic hardship, and discrimination fueled
sectarian violence in Northern Ireland for decades. The problem
of discrimination in Northern Ireland remains a serious concern
to the Committee. The contributions of the U.S. Government to
the IFI must be used in the most effective ways possible to
help alleviate hardship and to create new opportunities.
Moreover, this must be accomplished in a manner which does not
perpetuate unfair hiring practices, and disperses U.S.
assistance in an evenhanded manner.
This provision establishes clear and reasonable
requirements for recipients of United States funds in order to
carry out the clear intention of the Congress that U.S. funds
be put to fair and effective use to create the greatest
economic opportunity. These goals are served by the twofold
thrust of the provision:
First, the provision requires that U.S. IFI funds
must be directed to areas with the highest rates of
unemployment without reference to sectarian
demographics. U.S. funds must be primarily directed to
activities justified by the economic needs of the
residents of distressed communities and not on the
basis of sectarian quotas.
Second, the provision also requires recipients to
agree in writing to make reasonable, good faith efforts
to implement fair employment practices, consistent with
the terms of economic justice, as defined.
The provision thus helps ensure that the assistance
provided by American taxpayers will be effectively and justly
put to use to bring some measure of economic advancement and
economic justice to the people of Northern Ireland.
The provision accomplishes these goals without imposing
burdensome requirements or compromising fundamental American
values of fairness, equal justice and responsible use of U.S.
public funds. It also does not put American companies in
Northern Ireland at a disadvantage if they are already in
voluntary compliance with the MacBride Principles.
The fair employment principles set forth in the provision
are drawn from and closely follow the MacBride Principles, and
are also reflective of some of the recent changes on the ground
in Northern Ireland. Several of these principles are already
embodied in the British Fair Employment Act (FEA) and none of
these principles impose any requirement inconsistent with
existing law and policy.
The establishment of these conditions for U.S. assistance
merely brings the manner of U.S. participation into harmony
with prevailing legal trends and international business
practices in Northern Ireland.
Based on testimony before the Committee, it is evident that
U.S. assistance should be carefully targeted at the areas of
greatest need, based upon levels of unemployment and the
changes incorporated in the Anglo-Irish Agreement of 1986, to
accomplish that worthy goal.
In the Committee's opinion, the increased U.S. assistance
and the clear need for targeted investment consistent with the
principles of economic justice establish a need for greater
involvement and oversight by the U.S. observer to the IFI.
In extending U.S. oversight and certain restrictions to the
IFI, the Committee does not intend to extend the other
restrictions and requirementsof the Foreign Assistance Act to
IFI activities.
Subsection (a) earmarks $1.2 billion in FY98 and FY99 ESF
funds for assistance to Israel. Subsection provides the
assistance will be given on a grant basis and will be disbursed
within thirty days of the enactment of the Foreign Operations
Appropriations bill or October 31, whichever is later.
Nothing in the bill requires quotas or reverse
discrimination or mandates their use.
Sec. 505.--Assistance for Training of Civilian Personnel of
the Ministry of Defense of the Government of Nicaragua. Section
505 provides an explicit narrow exception to section 531(e) (22
U.S.C. 2346a) of the FAA to allow funds authorized by this Act
to be made available for assistance to and training for
civilian personnel of the Ministry of Defense of the Government
of Nicaragua, provided that the Secretary of State determines
and reports to Congress that such assistance is necessary to
establishing a civilian ministry capable of effective oversight
and management of the Nicaraguan armed forces and to ensuring
respect for civilian authority and human rights.
It is the intent of the Committee that expanded-
International Military Education and Training funds authorized
by this Act can also be made available to civilian personnel in
the Ministry of Defense if such training will advance
professionalization of the armed forces and respect for
civilian authority and human rights.
This section shall not be construed to authorize assistance
or training directly to active duty members of the National
Army of Nicaragua. The Committee expects that the Secretary of
State will produce a comprehensive plan for supporting the
professionalization of the security forces (army and civilian
police) of Nicaragua. It is the intent of the Committee that
normalized military-to-military relations between the United
States armed forces and the Nicaraguan National Army shall not
be established and support for the National Police should not
be initiated until substantial progress is made in implementing
the recommendations of the Tripartite Commission which call for
holding members of the former Sandinista Popular Army and
Police accountable for well-documented human rights abuses.
Sec. 506.--Availability of amounts for Cuban Liberty and
Democratic Solidarity (LIBERTAD) Act of 1996 and the Cuban
Democracy Act of 1992. Section 506 authorizes a minimum of
$2,000,000 in fiscal year 1998 and $2,000,000 in fiscal year
1999 for programs and activities under the Cuban Liberty and
Democratic Solidarity Act of 1996 and the Cuban Democracy Act
of 1992. The Committee strongly supports funding for programs
and activities of the Cuban Liberty and Democratic Solidarity
Act of 1996 and the Cuban Democracy Act of 1992 designed to
provide support for building civil society and democracy in
Cuba. The Committee further express its concern that in fiscal
year 1997 funds were reprogrammed from this account.
Chapter 2--Development Assistance
Subchapter A--Development Assistance Authorities
Sec. 511.--Authorization of Appropriations. This section
authorized the appropriation of the following amounts:
------------------------------------------------------------------------
Fiscal year
-------------------------------------------
1998 1999
------------------------------------------------------------------------
Development Assistance...... $1,203,000,000 $1,203,000,000
Development Fund for Africa
Earmark.................... 700,000,000 700,000,000
Newly Independent States.... 839,900,000 789,900,000
Eastern Europe.............. 471,000,000 337,000,000
Intern-American Foundation.. 20,000,000 15,000,000
African Development
Foundation................. 11,500,000 10,000,000
------------------------------------------------------------------------
American Schools and Hospitals Abroad
The Committee recognizes the important contributions to
U.S. foreign policy interests which are made by the
institutions funded by the American Schools and Hospitals
Abroad (``ASHA'') program. The Committee expects AID to
continue a competitive ASHA awards program on a long-term
basis. The Committee does not accept AID's proposal to
eliminate the FY 1997 grant cycle, and it expects the agency to
award grants through the program in 1997 and in 1998 at a level
of $15 million in each year. Due to current problems with the
availability of funds, the Committee will not object if AID
elects to award these grants on a calendar year rather than a
fiscal year basis.
The Committee has long supported the important work of
several highly distinguished American educational and medical
institutions which operate abroad, and it recommends that
priority be given to funding them in both the 1997 and 1998
grant cycles at levels not less than in the past. They include:
the American University of Beirut, the Feinberg Graduate School
(FGS) of the Weizmann Institute of Science , the Hadassah
Medical Organization, and several institutions in Greece.
Yemen
The Republic of Yemen is the most populous country on the
Arabian peninsula, but is the least developed. Yemen also has
an extremely high birth rate that threatens to cripple Yemen's
economic growth, which, when combined with the poverty, the
high illiteracy rate, and lack of employment opportunities,
could well adversely impact the region in the years to come if
these factors are not substantially modified. The Committee
notes with great regret that AID closed its mission in Yemen
after 37 years, and that a modest program aimed at maternal/
child health will end in FY98. The Committee also notes that
the Peace Corps ceased its operations there in 1994 due to the
brief civil war.
However, despite these and other obstacles, Yemen is the
only country on the peninsula with a freely elected parliament
with suffrage for all men and women, having successfully
completed elections once again in April, 1997. The Committee
commends Yemen for this achievement, and expresses its support
for strengthened government institutions including the
Parliament.
Because of critical U.S. national interests in the region,
and the importance of securing the Arabian Peninsula as a
peaceful, stable, and economically vibrant region, the
Committee strongly recommends that AID continue a modest level
of funding in support of maternal/child health, the development
of civil society, and government institution building. The
Committee also requests that the Peace Corps seriously
reconsider returning to Yemen to resume its activities at the
earliest possible opportunity.
Disabled People
AID should take into consideration the needs of people with
disabilities in existing programs; and AID should consider the
needs of people with disabilities, as appropriate, in the
design, implementation, and evaluation of future programs.
Development Fund for Africa
Subsection (b) reauthorizes the Development Fund for
Africa. The subsection amends Section 497 of the Foreign
Assistance Act of 1961 to require that of the amounts available
for development assistance for fiscal years 1988 and 1989, not
less than $700,000,000 for each of the fiscal years 1998 and
1999 shall be available, in addition to amounts otherwise
available for such purposes, to carry out the Development Fund
for Africa chapter.
Sudan
The Committee strongly recommends the exercise of
appropriate waivers to deliver development assistance to
southern Sudan through non-governmental organizations, in areas
that are outside the control of the Government of Sudan and
where there is inter-factional reconciliation and substantive
evidence of respect for and protection of human rights and
principles of humanitarian assistance. Such development
assistance should be used for capacity building of local
institutions to increase accountability, enhance local
management of crisis response and reduce intra-south conflict.
Aid to the Newly Independent States of the Former Soviet Union
The President has sought this Committee's approval of a
significant increase in assistance to the New Independent
States of the former Soviet Union. The Committee has carefully
considered the President's initiative in this area, which is
supported by several arguments. First, that increased funding
should be provided to combat corruption and crime in the twelve
New Independent States, a growing problem that will have
serious and damaging consequences for the United States and
other democratic states if not adequately addressed. Second,
that increased funding should beprovided to bolster a growing
class of small businessmen in the twelve New Independent States seeking
to plant the seeds for the emergence of a true middle class in those
fledgling states. Third, that more funding should be provided to
continue those programs supporting reforms in the Caucasus and Central
Asian states of the former Soviet Union.
The Committee is pleased that the Administration has taken
to heart the concerns expressed earlier by the Congress with
regard to the growing corruption and crime in the New
Independent States as well as a tendency on the part of this
Administration to neglect the interests of the smaller New
Independent States in the Caucasus and Central Asia in favor of
a focus on the United States relations' with Russia.
The Committee authorized appropriations totaling $839.9
million of the $900 million request for the New Independent
States in Fiscal Year 1998 and $789.9 million for Fiscal Year
1999 for the ``Partnership for Freedom'' NIS reform program.
The Committee's decision does not fully match the President's
request. The authorized funding level is however a significant
increase in Fiscal Year 1998 above the current Fiscal Year 1997
funding level of $625 million for the New Independent States
and a significant increase above the level of funding the
Congress had anticipated for this assistance program in Fiscal
Years 1998 and 1999.
Russian Pressure on the Other Newly Independent States
The Committee is troubled by growing evidence of Russian
actions in the other New Independent States intended to
undermine their sovereignty and reassert Russia's historical
dominance over those states. In this regard, the Committee is
concerned with rationales provided by this Administration that
the United States cannot oppose any surrender of sovereignty by
any of the New Independent States if such a surrender is
``voluntary'' on their part. The vulnerability of the smaller
New Independent States to Russian political, military and
economic pressure, and the growing evidence that such pressure
has been employed by Russia against those states, makes it
highly questionable that any such surrender of sovereignty to
Russia directly or through the Russian-dominated Commonwealth
of Independent States organization would be truly voluntary on
the part of other New Independent States.
The Committee specifically notes evidence of Russian arms
supplies and support for separatist ethnic movements in other
New Independent States; allegations of Russian support for coup
attempts in other New Independent States; use of economic
pressure by Russia against the other New Independent States to
gain political and military concessions from those states; and
Russian manipulation of energy exports by several of the other
New Independent States employing the Russian-controlled
pipeline system to limit those states' hard currency revenues.
The Committee is disappointed with this repeated
rationalization by the Administration of the Russian effort to
``reintegrate'' the former Soviet states.
Ukraine
The Committee is pleased with the direction of Ukrainian
foreign policy. Ukraine has had to make difficult decisions to
relinquish nuclear weapons inherited from the former Soviet
regime; to forego large contracts to help Russia build nuclear
reactors in Iran, to negotiate a bilateral charter with the
NATO Alliance and to endorse Poland and other states' admission
into NATO, and to work against the acquisition of weapons of
mass destruction by rogue regimes like Iran, Iraq and Libya.
The Ukrainian government has demonstrated a high degree of
consideration for America's foreign policy interests at a time
when Russia, in contrast, flaunts those interests. Through such
decisions, Ukraine is indeed constructing its new ``strategic
partnership'' with the United States. The Committee strongly
encourages the government of Ukraine to declare ``persona non
grata'' those individuals from Libya who may be allowed to
reside in Ukraine for purposes of procurement of technology or
equipment that might violate the international sanctions on
Libya.
The Committee is encouraged by the direction of Ukraine's
foreign policy and democratic reforms. Conversely, it
recognizes the need for greater progress in addressing
corruption and protecting American investment in Ukraine. The
Committee directs the Administration to limit aid to the
Government of Ukraine to those officials who by their actions
have demonstration support for market reforms.
The Committee supports continued assistance to Ukraine at
the level of $225 million authorized in Fiscal Year 1997 for
each of the Fiscal Years 1998 and 1999.
The Committee agrees with the President's proposed
allocation of assistance to the New Independent States under
the FREEDOM Support Act program as presented to the Congress in
budget documents for Fiscal Years 1998 and1999, taking into
consideration the limitations and conditions on increased aid to Russia
and the support for continuing current levels of assistance to Ukraine.
Any decrease in funding for this account shall be taken from the
regional account for the New Independent states rather than from the
proposed allocations for each of those countries.
Armenia
The Committee reiterates its support for the strong bond
between the U.S. and Armenia. The Committee is also encouraged
by progress in Armenia on economic reform.
However, the Committee is concerned by the flawed
Presidential election of last September. The Government of
Armenia should recommit to development of participatory
democracy that includes all elements of Armenian society.
Belarus
The Committee strongly endorses the actions taken by the
President to oppose the growing dictatorship of President
Alexander Lukashenko in Belarus. The Committee agrees that the
suspension of unobligated Nunn-Lugar assistance to Belarus was
warranted by the government's violation of democratic norms and
human rights. The Committee notes the recent acts of repression
by the Lukashenko government, including repression of the media
and of political opposition, suppression of the legitimate
parliament and supreme court, and arbitrary taxation of tax-
exempt organizations.
The Committee remains concerned over the September 1995
shooting-down by Belarusan military forces of an American
civilian balloon participating in a competition, resulting in
the deaths of two United States citizens. It remains concerned
by that callous and unnecessary act, and encourages the
President to ensure that a truly proper review of the causes of
that attack has been conducted.
The Committee calls on the President to coordinate with
other democratic states in Europe to support the reintroduction
of democratic government in Belarus. While the Committee
supports continued aid to non-governmental organizations,
independent media, democratic movements and humanitarian needs
in Belarus, it recommends that aid (including international
loans to Russia) be curtailed if top officials of the Russian
government continue to support the activities of Alexander
Lukashenko. The Committee believes that the fate of democracy
in Belarus will have consequences for the other New Independent
States.
School of Management at St. Petersburg University
The Committee notes the work of the School of Management at
St. Petersburg University to raise matching funds for any
assistance it may receive from the Agency for International
Development for its educational work in training Russian
businessmen and entrepreneurs. The Committee commends such
efforts and encourages AID to consider support where
appropriate to institutions such as this that are willing to
match any U.S. Government funding.
Ukrainian Academy of Public Administration
The Committee encourages the Agency for International
Development to review the work of the Ukrainian Academy of
Public Administration to ascertain whether that institution
might play a constructive role in an expanded program in
support of public administration in Ukraine. The Committee
suggests, consistent with appropriate selection processes, that
AID review the on-going work of the Research Triangle Institute
in Ukraine in the area of municipal government to learn whether
such work might be extended into an expanded program in support
of proper public administration at all levels of the Ukrainian
government in conjunction with the Academy of Public
Administration and drawing on that institution's in- kind
resources.
Eurasia Foundation
The Committee strongly supports the work of the Eurasia
Foundation and encourages the Agency for International
Development to continue to support the Foundation's work. The
Committee believes that the Foundation's work in Ukraine is of
particular importance to the success of grassroots reform in
that country.
Exchanges
The Committee recommends that the Administration continue
funding for the Russian, Eurasian and East European Research
and Training program (Title VIII) from the two accounts for the
New Independent States andEastern Europe at $4 million in each
of the Fiscal Years 1998 and 1999. Two-thirds of such funding could be
derived from the New Independent States account with the remainder
derived from the account for Eastern Europe.
Training, exchanges, and partnerships between the United
States and the nations of Eurasia and Central Europe continue
to be an essential part of the process of sustaining democracy
and serve the interests of the United States.
The Committee continues to support United States assistance
for other graduate fellowship and professional training
projects in both regions, such as those that provide
opportunities for graduate study at United States institutions
for outstanding graduate students and young professionals from
Central and Eastern Europe.
Corruption and Organized Crime
The Committee is greatly concerned by the growing reports
of corrupt and criminal activities in the New Independent
States and Eastern Europe, particularly those that implicate
government agencies and officials in such activities. It is
increasingly apparent that large sums of capital, diverted from
government budgets and from revenues earned from the sale of
various commodities and goods are being dispatched to private
bank accounts around the world. At the same time, the threat to
American investors in the New Independent States and Eastern
Europe posed by such corruption and criminal activity has
grown. The murder in November 1996 of American investor Paul
Tatum in Moscow is linked by some observers to his
disagreements with individuals linked to the Moscow city
government. It has been reported by FBI Director Louis Freeh
that businessmen in Moscow are forced to pay an estimated one-
third of their revenues to parties that extort them. Critics
describe many Moscow city officials as corrupt, intending to
siphoning funds from government and business to their benefit.
The Committee has been disappointed to learn that such
corruption has blossomed in Ukraine as well as Russia and other
states of the region. The Committee is pleased with the
positive trend in Ukrainian foreign policy, but expects the
government of Ukraine to take effective actions to ensure that
American investors are treated appropriately and protected from
extortion and other criminal or corrupt acts.
The Committee has authorized assistance for Ukraine and
supported the President's requested allocation of such
assistance to Ukraine in the expectation that the Ukrainian
government will take effective steps to resolve those cases in
which American-owned assets in Ukraine have been subjected to
arbitrary legal and regulatory obstructions that, if not
reversed, are tantamount to confiscation, or subjected to
criminal extortion or fraud. The Committee also expects the
government of Ukraine to agree to the creation of a
comprehensive and effective campaign to fight corruption in
Ukraine in cooperation with U.S. government agencies, and, as
deemed necessary and appropriate by the President of the U.S.,
utilizing resources and assistance provided by the United
States.
The committee continues to have substantial concerns about
the serious adverse impact of organized crime spreading through
the region of Eastern Europe and the New Independent States and
ultimately to the United States and other democratic countries
around the world. It is the committee's intent that for each of
Fiscal Years 1998 and 1999 no less than a combined $50 million
should be made available, utilizing funds under the Support for
East European Democracy Act program and the FREEDOM Support Act
program, for law enforcement support efforts (including
provision of equipment, such as communications, computers and
administrative support materials), and police training similar
to the very successful program run at the International Law
Enforcement Academy (ILEA) in Budapest, Hungary.
Public Administration
Committee encourages the Agency for International
Development to intensify its programs to improve public
administration and transparency in government agencies and
bureaucracies in the New Independent States and Eastern Europe,
with a particular programmatic focus in Ukraine. It is the
Committee's hope that an intensified effort to introduce
American principles of public administration and to improve
transparency in government agencies will contribute in general
to the fight against corruption. The Committee is encouraged by
the work of the Research Triangle Institute in Ukraine in the
area of municipal finance and management and by the work of New
York University with the Ukrainian Academy of Public
Administration to encourage improved public administration in
that country.
Independent Media
The Committee notes the trend in Russia towards increasing
control of the larger broadcast media and print publications by
profitable monopolies with close links to top levels of the
Russian government. The Committee views this trend as both a
potential threat to true freedom of speech in Russia and a
potential support for corrupt activities that might otherwise
be publicized by a truly free press. The Committee strongly
encourages the Agency for International Development to take
this trend into account and to review its programs to redouble
efforts to promote truly independent media.
Because the sustainability of a non-state-controlled media
is critical during this period of transition, the Committee
supports continued assistance for independent broadcast media.
This should include capacity building through training in
commercial management and basic journalism, as well as access
to quality licensed programming and development of an
independent media infrastructure; all of which are necessary to
support continued economic and political reforms.
The Committee is encouraged by the progress of the Agency
for International Development's media assistance work in
Russia, and specifically by the progress being made in the
print media through the Russian American Press and Information
Center (``RAPIC''). The Committee recommends continuation of
RAPIC-based initiatives, and continues to support investment in
a print media program within AID and the coordinating office
for democratic initiatives within the Department of State.
Judiciary
The Committee encourages the Agency for International
Development and the Department of State to increase their
efforts to help create effective and independent judiciaries in
Eastern Europe and the New Independent States. The Committee
also encourages those agencies to increase their programs to
reform and improve criminal justice agencies in Eastern Europe
and the New Independent States.
Tax Reform, Contract Enforcement and Commercial Law
The Committee encourages the Agency for International
Development and the Treasury Department to continue its efforts
to support tax reform in the New Independent States, which is a
vital part of the effort to ensure that businesses in those
states do not turn to criminal elements for protection against
exorbitant and arbitrary taxation by government. The Committee
also encourages AID to review its programs to ensure that
adequate efforts are being undertaken to promote adequate legal
enforcement of business contracts in the NIS. The absence of
such contract enforcement is clearly contributing to the growth
of criminal activity.
American University in Yerevan
The Committee encourages the Agency for International
Development to review US Government support for the American
University in Yerevan to determine the extent of financing that
might be required to allow the University to become self-
sustaining. The Committee notes the use of assistance funds in
Eastern Europe to allow such institutions to become self-
sustaining. Any assistance funds used for such purposes in
Armenia should be derived from the assistance provided to that
country under the account for the New Independent States.
SEED Act Assistance
The Committee has authorized $471 million of the total of
$492 million requested for our assistance programs under the
Support for East European Democracy Act program in Fiscal Year
1998. $337 million is authorized for Fiscal Year 1999.
Funding Levels
The Committee is encouraged that the AID has begun phasing
out our assistance programs in Eastern Europe, with our
assistance program in Estonia beginning to close down in the
current Fiscal Year. The Committee understands the need for
continued, higher levels of assistance to countries such as
Bulgaria, Romania, the Former Yugoslav Republic of Macedonia,
Albania and Slovakia. It is also possible that assistance will
be required for economic and political reforms in Serbia and
Montenegro once the necessary reforms have been adopted. Given
those anticipated needs, the Committee encourages AID to
continue to phase out our assistance programs in the region
wherever considerable progress has already been achieved in
reforms and particularly wherever other donor states or
organizations can continue with any further assistance for
reforms that may be required.
North Atlantic Assembly
The Rose-Roth Program is an initiative of the North
Atlantic Assembly, NATO's parliamentary assembly, undertaken at
the suggestion of the US delegation. The aim of the program is
to strengthen the development of parliamentary democracy in
Eastern European countries by using the resources of the
Assembly to train participants in the practices and procedures
of parliamentary institutions. The program is directly
beneficial in helping establish ties between program
participants and the Assembly, and to promote a sense of
partnership at the legislative level. The governments of
participating East European countries have acknowledged the
value of this program in helping develop the staff structure of
their respective parliaments.
The United States has financially supported the Rose-Roth
program through the account for Eastern Europe. This financial
support has made the program viable and also helped attract
donations from other members of the North Atlantic Assembly.
Many countries also support Rose-Roth through in-kind
donations. The Committee strongly encourages the Department of
State and AID to continue their financial support for this
worthy initiative.
Kosovo
The Committee strongly supports the Administration's
request of $12 million to provide humanitarian assistance to
Kosovo. Although the US has now established a presence in
Kosovo through the opening of the United States Information
Agency office in Pristina, the majority Albanian community
continues to endure considerable repression. These funds should
be utilized to ameliorate to the greatest extent possible the
suffering resulting from the lack of access to medical care and
other hardships brought about by this unacceptable human rights
and political situation.
The United States government should insist that
international human rights monitors be permitted to return to
Kosovo. The presence of such monitors until July of 1993 had a
demonstrably positive effect on the level of repression
inflicted by Serb authorities on the Kosovars, and their return
would have a positive effect on the outlook of those in Kosovo
who may believe that their plight has been forgotten by the
international community.
Aid to Bosnia
The Congress supported the President's request in FY97 for
$200 million for economic assistance to Bosnia. Because of
pressing needs to support vital reforms in other countries
receiving assistance through the Eastern Europe account,
however, the Committee believes that the disproportionately
high level of assistance to Bosnia cannot be sustained
indefinitely. Other countries in Europe should be expected to
continue supporting economic reconstruction in Bosnia. In view
of the slow progress in implementing the civilian aspects of
the Dayton Accords, the U.S. should endeavor to ensure that its
economic assistance is targeted on programs that help promote
reconciliation between the Bosnian ethnic communities.
Bosnia Debt Relief
The Committee supports the Administration's request for the
use of SEED funds for Bosnian debt relief. The Committee
strongly believes that funds for such debt relief should come
from resources previously justified to Congress for assistance
programs in Bosnia, and should not come from other country
programs in Central or Eastern Europe.
Bulgaria
The Committee is interested in seeing the newly-elected
government in Bulgaria expeditiously address those instances in
which American investors or bank account holders may have been
defrauded or suffered the loss of their monies through theft.
The Committee is particularly discouraged that no thorough
investigation of such criminal acts involving Bulgarian banks
has yet been completed. The Committee requests a report from
the Secretary of State within 180 days after enactment of this
Act concerning the extent of Bulgarian government efforts to
address American investors' and bank account holders' loss of
funds through fraud or theft. While it wishes to support the
new government in Bulgaria, the Committee notes that improper
or criminal treatment of American investors and bank account
holders could have a detrimental effect on support for
assistance to Bulgaria.
Lithuania
The Committee strongly encourages the government of
Lithuania to act forcefully and responsibly to bring to justice
any in Lithuania who may have collaborated with the Nazi regime
to carry out the Holocaust against Jews and others. The
Committee directs the Lithuanian government'sattention to the
allegations against Alexandras Lileikis and asks for a thorough
investigation and, if appropriate, prosecution in response to such
allegations.
competition
The Committee is concerned over the AID's extensive use of
non- competitive procurement procedures in the United States
assistance programs for Eastern Europe and the New Independent
States. The Committee's concern in this regard has been
heightened by the recent use of non-competitive procedures for
program procurement in our programs in Ukraine and elsewhere in
the New Independent States, two to three years after the
creation of AID missions and projects in such states.
In documents provided at the Committee's request, AID has
noted the use of non-competitive procedures for 84% of all
grants awarded in the Eastern Europe and New Independent States
accounts since the inception of aid programs for those regions,
for a total of $1.22 billion in grants and cooperative
agreements awarded under non-competitive procedures. A further
12% of contracts for those two assistance accounts were
procured using non-competitive procedures, totaling $195.8
million in funds. The Committee notes that a further $744.5
million in aid funds transferred to our Enterprise Funds in the
two regions are, by nature, non-competitive awards of funds.
The Committee strongly encourages an end to this heavy
reliance on such non-competitive procedures for the future,
given the maturation of United States assistance programs in
the region and the improved ability of AID to conduct
competitive procurement.
Sec. 512.--Child Survival Activities. This section formally
establishes a Child Survival and Disease Fund at $600 million
in FY98 and FY99, including the U.S. contribution to UNICEF.
Under this section, section 104(c) of the FAA is rewritten
to give further definition and clarity to Child Survival,
Health, Basic Education for Children and Disease Prevention
Programs. The Committee notes the leadership of the
Appropriations Committee and specifically its Foreign
Operations Subcommittee Chairman, Mr. Callahan, in creating
this account.
Subsection (c)(1)(A) defines seven major categories of
activities ``whose primary purpose is to reduce child morbidity
and child mortality which have a substantial, direct, and
measurable impact on child morbidity and child mortality''
[emphasis added]. Under the mandate of this section and the
Results Act, the Committee is clearly giving emphasis to
programs that directly save children's lives.
The Committee recognized two significant ways to boost the
effectiveness of the U.S. contribution toward achieving the
1990 World Summit for Children goal of reducing child mortality
rates by one-third by the year 2000. First in carry out child
survival programs, the Committee gave direction to the programs
that place priority emphasis on those specific activities that
save children's lives. Second, the Committee recognized the
gains to be realized by increasing the proportion of child
survival funding that is programmed through non-profit citizen-
supported PVOs.
Under subsection (c)(2), the Committee clearly states that
child survival activities under this subsection shall be
``primarily devoted'' to these seven ``1(A)'' activities. By
``primarily devoted'' the Committee means these 1(A) activities
shall comprise the major component of the Child Survival
Program.
Under subsections (c)(1)(B), (C) and (D) the Committee
provided guidance on five other child survival activities,
basic education for mothers and children, and disease
activities that may be funded under this program. One quarter
of the children in developing countries lack access to a basic
education, which is the critical factor in decreasing
children's vulnerability to exploitative labor practices,
improving future standards of living, and instilling civic and
democratic values. With regard to diseases, by the year 2000 it
is estimated that the number of children orphaned by AIDS could
jump 400% from two million to ten million, posing a threat to
the well being of these children and placing an enormous strain
on societies struggling to copes with the ravages of the HIV/
AIDS epidemic.
The Committee continues to support programs aimed at
addressing the needs of displaced children and orphans around
the world. AID has had considerable success in addressing the
needs of these children through programs funded under the
Displaced Children and Orphans Fund. The Committee supports
AID's continued funding for the Displaced Children and Orphans
fund.
Subsection (c)(3) requires that funds provided under the
Development Fund for Africa, FREEDOM Support Act or SEED Act
shall be spent in those regions for exclusively child survival
purposes identified in the rewritten section 104(c) of the FAA.
Subsection (c)(4) provides that the U.S. contribution to
the United Nations Children's Fund (``UNICEF'') may be made
from these funds. Of the amounts authorized to be appropriated
in this account, the Committee intends that $100,000,000 for
fiscal year 1998 and $100,000,000 for fiscal year 1999 should
be provided for a contribution in grant form to UNICEF.
However, this does not preclude AID from providing additional
funding for specific UNICEF projects, as may be appropriate.
Subsection (c)(5) recommends that not less than $30 million
in each of fiscal years 1998 and 1999 should be provided for
child survival activities through PVOs. Child survival programs
implemented through PVOs are cost effective, leverage private
matching funds, and can reach the neediest areas even where AID
may not have a mission.
Subsection (c)(6) requires the Administrator of AID to
report, as part of the CPD required under the rewritten section
634 of the FAA, on the amounts in the budget request to be
provided for activities specified under subsections (c)(1)A
through D. The Committee places special emphasis on reporting
for funding proposed in the budget for (1)A activities.
Subsection (c)(7) authorizes the appropriation of $600
million in fiscal year 1998 and 1999 for programs under this
section.
Subsection (c)(8) provides that this section may be
referred to as the ``Child Survival and Disease Programs
Fund.''
Sec. 513.--Requirements of Assistance to the Russian
Federation. This section limits aid to Russia to the current
level of $95 million unless the President can determine that
Russian assistance and cooperation with the Iranian nuclear and
missile program and the Cuban nuclear program has ended.
Iran
The Committee is seriously concerned by the lack of
meaningful progress by the Administration in persuading Russia
to halt its sale of nuclear reactors to Iran, a state sponsor
of terrorist organizations that is clearly bent on building
nuclear weapons. The Committee notes that for several years the
President, Vice President, and other high-ranking United States
Government officials have engaged in intensive discussions with
Russian President Boris Yeltsin, Prime Minister Viktor
Chernomyrdin, and other high-ranking Russian officials on this
specific issue and on the general issue of Russia's relations
with Iran. The United States has offered generous inducements
to the Russian government in an attempt to halt the sale of
this nuclear technology and equipment to Iran. Unfortunately,
Russia continues to deny the veracity of sensitive information
this Administration has reportedly provided to the Russian
government on this issue and continues to deny that the Iranian
government is intent on building nuclear weapons, in part using
the expertise in nuclear materials handling that will be
provided by the operation of nuclear reactors.
The Committee has also noted the allegations concerning
continuing Russian sales to Iran of advanced conventional
weapons, ballistic missile technology, and, possibly, other
advanced weaponry as well. The Committee gives a great deal of
credence to such allegations and is concerned not only that the
Russian commitment to halt its sales of conventional weapons to
Iran by the end of 1999 will not be honored, but that Russia is
likely engaged in a purposeful campaign of supporting an
Iranian arms build-up that will eventually have very adverse
consequences for the deployment of American forces to ensure
access to the vital Persian Gulf. That arms build-up will have
detrimental consequences for America's allies in the region as
well. The Committee notes the positive statements made by
Russian and Iranian officials regarding their growing bilateral
relationship at the very time that most European states are
reassessing their relations with Iran.
The Committee does not wish to undermine current efforts to
support ``grass roots'' reforms in Russia, funded at a level of
$95 million in Fiscal Year 1997. While the Committee has agreed
to authorize $241.5 million in aid to Russia under the FREEDOM
Support Act program in Fiscal Years 1998 and 1999 under this
Act--the amount requested for Russia by the President--it
intends to limit aid to Russia to that amount, and has
conditioned all of the increase in aid to Russia above the
current level of $95 million on thetermination of all Russian
nuclear and missile cooperation with or sales to Iran.
Cuba
The Committee has also linked that increase in aid to
Russia above the current level of $95 million to a full and
final termination of Russian involvement in the construction of
unsafe nuclear reactors in communist Cuba.
In both instances, the Committee sees a clear need to
insist that Russia honor America's interests. It is the
Committee's determination that there shall be no increase in
aid to Russia above current levels until Russia in fact honors
those American interests.
China
The Committee adopted a condition on assistance to Russia
authorized under this Act that would end all aid to Russia in
Fiscal Years 1998 and 1999 should Russia transfer any SS-N-22
missile systems to the People's Republic of China. While the
Committee has provided the President with the authority to
waive this condition in the national security interest of the
United States, it has required that, if it is necessary for the
President to do so, he must reissue such a waiver and provide
related justifications for such a waiver every six months.
The Committee intends that the President focus on the
extremely important issues related to the Russian-Iranian
relationship and Russia's involvement with nuclear reactor
construction in communist Cuba. At the same time, however, the
Committee does have very serious concerns about the proposed
transfer of such missile systems to communist China, and has
allowed this waiver only on a six-month basis to underline that
strong concern. The President should take the opportunity
provided by this waiver to ensure that the contemplated
transfer of SS-N-22 missile systems to China are not carried
out by the Russian government or any Russian entity. If such
transfers take place, it is unlikely that the Congress will
view positively the prospects for continued aid to Russia.
Other Concerns
The Committee has avoided placing numerous other conditions
on the increased aid to Russia, given the need by this
Administration to immediately focus on the issues of Russia's
relations with Iran and its continuing flirtation with
construction of nuclear reactors in communist Cuba. That does
not mean, however, that the Committee is not greatly concerned
by other negative trends in Russian foreign policy. The on-
going Russian sales of arms and military technology to the
People's Republic of China will greatly assist China in placing
even greater pressure on the democratic government on Taiwan in
the near future. Russian reactor sales to India appear to
violate its solemn commitments under the 1992 Nuclear Suppliers
Agreement. Alleged Russian military sales to Syria, a state
sponsor of terrorist organizations, require careful monitoring,
particularly given reports that Iran may guarantee Syrian
payment for such Russian equipment and technology. Support at
the highest levels of the Russian government for the
dictatorship of President Alexander Lukashenko in the New
Independent State of Belarus and on-going efforts to
``integrate'' Russia and Belarus should be strongly challenged
and opposed by the Administration.
Sec. 514.--Humanitarian Assistance for Armenia and
Azerbaijan.
The Committee is concerned to ensure that humanitarian
assistance reaches those most in need in the countries of the
Caucuses region. The separatist conflicts in Georgia and
Azerbaijan and the continuing effects of the 1988 earthquake in
Armenia presented the international community with a tremendous
challenge in aiding those in critical need in that region.
The United States has been generous in responding to the
needs in the region, providing humanitarian aid to help
Georgia's refugees from the fighting in the region of Abkhazia,
providing humanitarian aid to Azerbaijan's one million refugees
and displaced persons who fled the fighting in the region of
Nagorno-Karabakh (in spite of the standing prohibitions on
direct aid to the government of Azerbaijan), and providing
hundreds of millions of dollars in aid of all types to the
nation of Armenia.
During consideration of this Act, the Committee considered
an amendment that would have revised the means by which US
humanitarian assistance is provided to refugees and displaced
persons in the region of Nagorno-Karabakh in Azerbaijan. The
Committee considered the argument that insufficient US
humanitarian aid was reaching those most in need in that
region. The Committee, responding to the Administration's
opposition to the amendment and relying on information provided
to it by the Departmentof State regarding US aid reaching the
region of Nagorno-Karabakh, voted to revise the amendment to call on
the President to seek the cooperation of the governments of Armenia and
Azerbaijan in ensuring that humanitarian assistance is made available
to all those in need within those two countries.
The Committee also directed the President to report to the
Congress on the efforts by the United States and other donor
organizations and states to address the need for humanitarian
aid throughout Armenia and Azerbaijan.
The Committee notes the estimate provided by the State
Department that indicates that approximately $3.5 million in US
humanitarian aid has reached those in need in the region of
Nagorno-Karabakh via US contributions to the International
Committee of the Red Cross. The Committee notes as well that
only a portion of the total population in Nagorno-Karabakh of
about 126,000 people consists of refugees and displaced
persons, and that only a portion of that smaller number of
people is considered to have critical needs, according to
information received from the State Department.
The Committee expects that the report required by this Act
on the extent of humanitarian needs in the region and US
efforts to respond to them will be forwarded to the Congress
and to the Committee within 180 days of enactment of this Act.
Sec. 515.--Agricultural Development and Research
Assistance. This section expresses the sense of the Congress
that: (1) U.S. investment in international agricultural
development and research has been a critical part of many
economic development successes; (2) agricultural development
and research advance food security, thereby reducing poverty,
increasing political stability, and promoting U.S. exports; and
(3) AID should increase the emphasis it places on agricultural
development and research, and expand the role of agricultural
development and research in poverty relief, child survival, and
environmental programs
Sec. 516.--Activities and Programs in Latin America and the
Caribbean Region and in the Asia and Pacific Region. Section
514 states that amounts made available for development
assistance activities and programs in the Latin American and
the Caribbean region and the Asia and Pacific region should be
in at least the same proportion to the total amount made
available as the amount identified in the congressional
presentation documents for each of the fiscal years 1998 and
1999, respectively, for each such region is to the total amount
requested for development assistance for each such fiscal year.
The Committee is concerned about the precipitous decline in
funding for development assistance for the Latin America and
Caribbean region and the Asia and Pacific region. Latin America
and Asia are priority regions for the United States,
politically and economically. Fifty percent of the population
in Latin America and the Caribbean lives below the poverty
line; in Latin America and the Caribbean, development
assistance is helping address American concerns about illegal
immigration and narcotics trafficking by improving the social
and economic conditions in the region. Development assistance
is also important to our growing trade relationship with the
region--last year the Western Hemisphere accounted for 60
percent of the growth in United States exports. The Asia and
the Pacific region is home to 60 percent of the world's
population and 75 percent of the world's poor, therefore
development assistance to this region is critically important
and must also be treated as a priority.
Guatemala
The Committee recognizes that bringing a definitive end to
the last armed conflict in Central America is a priority for
the United States government. The Committee notes that United
States officials have pledged $260 million toward the estimated
$1.9 billion offered by international donors to support the
peace process and to reconstruct the Guatemalan economy.
Of the funds authorized to be appropriated under this Act,
it is the intent of the Committee that the Executive Branch
will meet its pledge of $25 million in economic support funds
and not less than $40 million in other funds to be made
available for each of the fiscal years 1998 and 1999; the
Committee expects that the United States will continue this
level of support for the succeeding two fiscal years.
Haiti
The Committee believes that inadequate progress has been
since the September 1995 United States intervention to create
sustainable private sector jobs, restore the rule of law, and
establish democratic pluralism inHaiti. United States aid
programs have not accorded sufficient attention to regenerating jobs in
the assembly sector that were lost during the international embargo,
and United States aid programs to help Haitian small agricultural
exporters should be increased markedly.
United States policy should continue to support the
privatization of costly and unproductive parastatal
enterprises; elimination of ``phantom employees'' from public
sector payrolls; strict standards of accountability for
international donor assistance; tariff reforms; and effective
collection of duties and port fees to discourage costly
smuggling that robs the state of revenues and makes it
impossible for honest importers to compete.
The Committee believes that the United States government
should continue to press the Haitian government to ensure that
human rights violators are purged from government payrolls and
to bring persons to justice for political murders to end the
impunity that has inspired continued violence; United States
support for activities (personnel, equipment, training, etc.)
of the Special Investigative Unit, adequate police training,
and judicial reform should be priorities. It is the intent of
the Committee that any funds needed to extend the presence of
the International Civilian Mission in Haiti should be drawn
only from the funds authorized for Organization of American
States democracy activities from voluntary contributions to
international organizations.
The Committee is concerned that inadequate attention has
been paid to nurturing pluralism by strengthening Haiti's
traditional democratic parties. Of the funds authorized to be
appropriated under the Act, it is the intent of the Committee
that not less than $750,000 shall be made available in each of
fiscal years 1998 and 1999 to support activities to promote
long-term democratic pluralism.
The Committee also believes that every effort should be
made to support activities to support the professionalization
of Haiti's newly constituted Permanent Electoral Council. The
Committee believes that the independent International
Foundation for Electoral Systems, which played an indispensable
role in a series of elections in Haiti in 1996, is uniquely
suited to support such professionalization.
nicaragua
The peaceful transition of power on January 10, 1997, to a
president committed to democratic principles, respect for human
rights, and a free market economy confirms that Nicaragua has
made great strides toward overcoming a history of dictatorship
and civil war. Of the funds authorized to be appropriated under
the Act, it is the intent of the Committee that programs in
Nicaragua shall be fully funded. Of the funds allocated for
Nicaragua, the Committee intends that not less than 50 percent
of this sum shall be expended to support agricultural, economic
development (including microenterprise credit), housing,
education, and health care activities in the principal areas of
resettlement of former members and families of the Nicaraguan
Resistance who have been demobilized and returned to civilian
life.
The Committee acknowledges the unique commitment that the
United States government has to the successful return to
civilian life of persons who fought the Sandinista dictatorship
with the support of the United States government. Therefore, it
is the intent of the Committee that United States aid programs
in Nicaragua should focus on urgent development projects in the
so-called ``ad hoc'' region in the remote mountainous area of
central and northern Nicaragua.
The Committee recognizes the extraordinary contribution
made by the personnel of the International Commission for
Support and Verification of the Organization of American States
(CIAV-OEA) since 1990. It is the intent of the Committee that
such funds authorized by this Act shall be made available as
necessary to maintain the continued presence of CIAV-OEA in
Nicaragua until the indispensable human rights monitoring
activities and network of grassroots ``peace and justice
committees'' can be transferred efficiently to a new government
Human Rights Prosecutor. The Committee expects that United
States funds authorized under this act (including the voluntary
contribution to OAS democracy programs and development
assistance funds for Latin America and the Caribbean) shall be
made available to complement contributions of other donors to
ensure that ample funding is available for a follow-on OAS
technical assistance mission. The Committee believes that
United States aid programs should support the
professionalization of the Supreme Electoral Council, using the
independent International Foundation for Electoral Systems to
the extent possible.
caribbean basin
The Committee considers the promotion of viable democratic
societies inthe Caribbean Basin to be an important US economic
and security objective. A principal means of achieving this objective
has been through the Caribbean Basin Initiative (CBI), which provides
trade benefits to eligible Caribbean Basin countries.
Since the CBI was established in 1983 as a way to deter
communist expansion in the hemisphere, the United States/
Caribbean Basin economic relationship has flourished. Because
Caribbean countries are so closely linked to United States,
economic growth in the Caribbean translates directly into
commercial opportunities for United States firms and workers.
In fact, the Caribbean Basin, one of the few regions where
United States exporters consistently post trade surpluses, is
now the tenth largest market for United States goods and
services. Moreover, as the economies of the region have grown,
so too have their democratic institutions and legal frameworks.
The Committee is aware that the Administration is preparing
a proposal to expand the United States/Caribbean Basin trade
relationship further by extending enhanced United States market
access to CBI countries that meet specific eligibility
criteria. The Committee believes such a proposal has merit,
particularly to help prepare the Caribbean Basin countries for
the trade and commercial disciplines necessary for hemispheric
trade liberalization. This proposal may also help eligible CBI
countries recover from the unintended adverse effects that the
North American Free Trade Agreement may have presented for
United States/Caribbean Basin trade links.
The Committee also supports efforts to establish an OPIC
equity fund for the 24 CBI nations as an additional way to
promote sustainable, private sector-led growth in the region.
Presently, many CBI countries have a difficult time attracting
sufficient private capital to meet their development needs.
This funding gap has been exacerbated by the repeal in 1996 of
the Section 936 investment mechanism, which had generated more
than $2 billion in private sector investment throughout the
Caribbean Basin during the last decade. The Committee believes
there is a clear need for an OPIC equity fund, and is aware of
at least one proposal to establish such a fund using seed
capital from the Multilateral Investment Fund (MIF).
governance programs in latin america and the caribbean
The Committee encourages the continued development of a
sustainable indigenous capacity by Latin American institutions
through the LAC Bureau focussing on the protection and
promotion of human rights, judicial reform, and election
support. The Committee recognizes that Latin American countries
share unique regional experiences and characteristics and that
sensitive governance programs are best handled by persons with
applicable expertise in the LAC Bureau.
Anti-corruption activities and decentralization of
authority encourage public confidence in and support for
democratic institutions. The Committee encourages the Bureau
for Latin America and the Caribbean (LAC) of AID to continue to
fund at planned levels ($1,800,000 in fiscal year 1998) the
Regional Financial Management Improvement Project, which
promotes transparency and accountability. Moreover, in light of
the pronounced trend in the LAC region for decentralized
government (to strengthen the autonomy of and devolve power to
local elected authorities and foster linkages between citizens
and subnational governments in the Western Hemisphere), the
Committee encourages LAC to undertake initiatives in
decentralization and local governance.
United States efforts to improve justice systems (for both
criminal and commercial areas) contribute to the protection of
human rights, the rule of law, and a level playing field in
commerce. For these reasons, the Committee encourages more
aggressive regional programs related to the administration of
justice, rule of law and legal and regulatory reform.
Sec. 517.--Support for Agricultural Development Assistance.
The Committee is concerned about the declining level and
proportion of U.S. development assistance devoted to
agriculture, which has declined from 16% to 8% since 1990. The
Committee notes the importance of food security, agricultural
development, and agricultural research in fostering sustainable
development in the world's developing countries. Therefore, the
Committee has recommended that AID, at a minimum, fund
agriculture, rural development, and nutrition programs in FY98
at levels provided in FY97 and to provide, at a minimum,
proportionate increases for those same programs if overall
development assistance levels increase in FY98.
Subchapter B--Operating Expenses
Sec. 521.--Operating Expenses Generally.This section
authorizes AID's operating expenses at the level of $473 million for
FY98 and $465 million for FY99.
The Committee is deeply concerned about the accounting
systems of AID. The Committee understands that AID currently
uses 11 accounting systems that are not interrelated and are
not able to meet current statutory requirements for audited
statements and performance results. The Committee is concerned
about reports, put forward by AID's Inspector General and
backed by the General Accounting Office, that repeatedly
highlighted the fatal flaws and miscalculations that AID has
made in implementing the New Management System (``NMS''). The
Committee heard testimony from AID and the Inspector General
that AID successfully waived standard General Services
Administration procurement rules that would have required the
purchase of an off-the-shelf system to meet AID's needs. AID
management rejected that option and the testing required by its
own consultants at Carnegie-Mellon University and attempted an
overly ambitious effort to design an entirely new computer and
accounting system.
The IG noted hundreds of flaws needed to correct the
system, some of them remain crucial to any functioning of the
system. In sum, AID spent between $70-90 million on this
computer and accounting system that does not work. The
Committee applauds the recent decision of AID management to
turn the NMS off at overseas missions. The Committee expects
that AID will not attempt to resurrect this system until the
flaws have been eliminated and the system has been fully
tested.
Sec. 522.--Operating Expenses of the Office of the
Inspector General. This section authorizes AID's Inspector
General's expenses at the level of $29,047,000 for Fiscal years
1998 and 1999.
The Commitee is concerned about reports that the IG has cut
foreign service national overseas investigatory staff. With the
expansion of programs in this bill, the Committee expects the
IG to boost the overseas presence of the IG staff, with special
emphasis on ``high threat'' countries in Eastern Europe and the
NIS.
Chapter 3--Urban and Environmental Credit Program
Sec. 531.--Urban and Environmental Credit Program. This
provision changes the name of the Housing Program to the above
name and eliminates some outdated provisions of the FAA housing
section.
Chapter 4--The Peace Corps
Sec. 541.--Authorization of Appropriations. This section
authorizes the Peace Corps at the levels of $222 million for
FY98 and $225 million for FY99.
The Committee commends the Peace Corps for its creation of
a Crisis Corps that will allow experienced volunteers and
returned volunteers to provide shorter-term assistance during
humanitarian crises and natural disasters. With their skills
and experience, Peace Corps veterans are a ready, valuable
resource, and the Crisis Corps provides and additional
opportunity to extend the benefits of this country's investment
in the Peace Corps.
The success of the Crisis Corps' pilot projects in the
Caribbean and Africa is most encouraging. The Committee
therefore strongly urges the Peace Corps to expand the Crisis
Corps to reach many more of those affected by disasters.
Sec. 542.--Activities in the Peace Corps in the Former
Soviet Union and Mongolia. This provision allows not more than
$11 million may be transferred from FY98 and 99 funds to
support Peace Corps activities in this region.
Sec. 543.--Amendments to the Peace Corps Act. Subsection
(1) provides a short title, the ``Peace Corps Act Amendments of
1997,'' for the Act.
Subsection (2) amends section 3(b) of the Peace Corps Act
(22 U.S.C. 2502(b)) (hereinafter the ``Act'') to authorize the
appropriations of $222,000,000 for programs under the Act for
fiscal year 1998. This sum, the amount of the President's
budget request, is authorized to remain available for
obligation until September 30, 1999. Section 2 also authorizes
the appropriations of such sums as may be necessary for fiscal
year 1991, to remain available until September 30, 2000.
Subsection (3) makes several technical changes to section 5
of the Peace Corps Act,<SUP>1</SUP> ``Terms and Conditions of
Volunteer Service,'' (hereinafter the Act) to reflect changes
in statutory citations and, in one case, a court decision, that
have occurred since enactment of the Act.
---------------------------------------------------------------------------
\1\ 22 U.S.C. 2504.
---------------------------------------------------------------------------
Subsection 3(a) strikes out ``Civil Service Commission'' in
section 5 (f)(1)(B) and inserts in lieu thereof ``Office of
Personnel Management.'' The Civil Service Commission was
replaced by the Office of Personnel Management in 1966.
Subsection 3(b) amends section 5(h) of the Act (22 U.S.C.
2504(h)) in several respects.
It strikes out references to the Federal Voting Assistance
Act of 1955 (5 U.S.C. 2171 et seq.), the Act of June, 1954,
chapter 264, section 4 (5 U.S.C. 73b-5, the Act of December 23,
1944, chapter 716, section 1, as amended (31 U.S.C. 492a)'' and
inserts reference to 5 U.S.C. 5732 and 31 U.S.C. 3342. The
Federal Voting Assistance Act has been repealed and replaced by
a provision (42 U.S.C. 1973cc et seq.). That is available to
all American citizens overseas. It is unnecessary to consider
Volunteers federal employees to provide them with the benefits
of the Act; therefore, the reference to voter assistance in
this provision can be deleted. The replacement of references to
sections of titles 5 and 31 with references to 5 U.S.C. 5732
and 312 U.S.C. 3342 reflect recodification of provisions
relating to reimbursement for the cost of transportation of
baggage and effects and check cashing privileges in those
titles. No substantive change is involved.
Subsection 3(c) deletes the requirement contained in
section 5(j) of the Act <SUP>2</SUP> that Volunteers swear (or
affirm) that they do not advocate the overthrow of the
government by force, or belong to an organization that so
advocates. This requirement was declared unconstitutionally
vague in 1969.<SUP>3</SUP> It also replaces the reference to
``section 1757 of the Revised Statutes of the United States, as
amended (5 U.S.C. 16)'' with ``section 3331 of title 5, United
States Code,'' reflecting the codification of the statutory
oath for employees in 1966.
---------------------------------------------------------------------------
\2\ 22 U.S.C. 2504(j).
\3\ Steward v. Washington, 301 F.Supp. 610- (DDC 1969).
---------------------------------------------------------------------------
Subsection 4 amends section 10 of the Act, ``General Power
and Authorities,'' in two respects.
Subsection 4(a) replaces the reference to 31 U.S.C. 665(b)
with ``31 U.S.C. 1342,'' reflecting the 1982 revision of title
31.
Subsection 4(b) revises paragraph 10(a)(5) of the Act
<SUP>4</SUP> to make the legal status of Peace Corps personal
services contractors consistent with that of personal services
contractor employed by other foreign service agencies.
---------------------------------------------------------------------------
\4\ 22 U.S.C. 2509(a)(5).
---------------------------------------------------------------------------
Subsection 10(a)(5), as now written, authorizes the Peace
Corps to contract with U.S. citizens for personal services
abroad, and with aliens for services in the United States or
abroad. However, section 10(a)(5) also provides that personal
services contractors are not deemed employees of the United
States for any purpose. This language is more restrictive than
that applicable to other foreign service agencies, which limits
the exclusion to laws administered by the Office of Personal
Management.
The requested amendment to section 10(a)(5) would make it
consistent with the provisions applicable to personal services
contractors of the Department of State <SUP>5</SUP> and USAID.
<SUP>6</SUP> One consequence of the amendment would be to
authorize extension of coverage under the Peace Corps'
authority to negotiate settlements of tort claims abroad, which
is now limited to claims arising from the acts or omissions of
employees or Volunteers, to claims arising from the acts of
personal services contractors.<SUP>7</SUP> Many peace Corps
medical officers for example, who frequently use vehicles in
the performance of their duties, are personal services
contractors.
---------------------------------------------------------------------------
\5\ Section 2(c) of the State Department Basic Authorities Act of
1956, 22 U.S.C. 2669(c).
\6\ Section 636 (a)(3) of the Foreign Assistance Act of 1961, 22
U.S.C. 2396(a)(3).
\7\ U.S.C. 2509(b).
---------------------------------------------------------------------------
This amendment would not require the Peace Corps to accord
personal service contractors any benefits they do not currently
enjoy. However, by giving the Peace Corps the same personnel
flexibility as other foreign affairs agencies, it would help to
eliminate the difficulties created overseas when personal
services contractors employed by different U.S.
governmentagencies receive different benefits. It would also enable the
Peace Corps to accord its personal service contractors benefits, such
as reimbursement for property losses incurred incident service, that
are comparable to those received by other Peace Corps employees.
Elimination of the need for special treatment for personal services
contractors at overseas posts would also result in savings in
administrative costs for the agency.
Subsection 5 makes several technical changes, and one
substantive addition to section 15 of the Act.<SUP>8</SUP>
---------------------------------------------------------------------------
\8\ 22 U.S.C. 2514.
---------------------------------------------------------------------------
Subsection 5(a) amends section 15(c) <SUP>9</SUP> by
striking out ``Public Law 84-918 (7 U.S.C. 1881 et seq.)'' and
inserting in lieu thereof ``subchapter VI of chapter 33, title
5, United States Code (5 U.S.C. 3371 et seq.).'' Section 15(c)
of the Peace Corps Act authorizes training for employees at
private and public agencies. The statutory provisions relating
to employee training were transferred from title 7 to title 5
in 1970.
---------------------------------------------------------------------------
\9\ 22 U.S.C. 2514(c).
---------------------------------------------------------------------------
Subsection 5(b) amends paragraph 15(d)(4) <SUP>10</SUP> by
striking out ``section 9 of Public Law 60-328 (31 U.S.C. 673)''
and insert in lieu thereof ``31 U.S.C. 1346.'' This section of
the Peace Corps Act authorizes the payment of expenses of
attending meetings related to the Peace Corps Act. No
substantive changes is intended. It is another change required
by the 1982 revision of title 31.
---------------------------------------------------------------------------
\10\ 22 U.S.C. 2514(d)14.
---------------------------------------------------------------------------
Subsection 5(c) amends paragraph 15(d)(6) <SUP>11</SUP> by
striking out ``without regard to section 3561 of the Revised
Statutes (31 U.S.C. 543).'' This statute, which contained a
restriction on currency exchanges, was repealed and not
replaced when title 31 was codified in 1982.
---------------------------------------------------------------------------
\11\ 22 U.S.C. 2514 (d)(6).
---------------------------------------------------------------------------
Subsection 5(d) amends paragraph 15(d)(11) <SUP>12</SUP> by
striking out ``Foreign Service Act of 1946, as amended (22
U.S.C. 801 et seq.)'' and inserting in lieu thereof: ``Foreign
Service Act of 1980, as amended (22 U.S.C. 3901 et seq.).'' The
Foreign Service Act was rewritten and renamed in 1980.
---------------------------------------------------------------------------
\12\ 22 U.S.C. 2514(d)(11).
---------------------------------------------------------------------------
Subsection 5(e)-(g) add a new paragraph (13) to subsection
15(d).<SUP>13</SUP> The new paragraph would exempt the Peace
Corps from the provisions of the ``Fly America Act''
<SUP>14</SUP> with respect to flights between two points abroad
to the same extent other foreign service agencies are exempt
from it.
---------------------------------------------------------------------------
\13\ 22 U.S.C. 2214(d).
\14\ 49 U.S.C. 40118.
---------------------------------------------------------------------------
Under 49 U.S.C. 40118(d), the Department of State, USIA,
IDCA (including USIA), and the Arms Control and Disarmament
Agency are exempt from the requirements of the ``Fly America
Act'' for travel between two places outside the United States
by employees and their dependents. Determining which carriers
overseas are U.S. certified or have agreements with the U.S.
that qualify them under the Fly America Act is a complex
undertaking. Posts and individuals must make decision in this
area at the risk of having their travel costs disallowed. As
with the issue of the status of personal services contracts,
the Peace Corps believes that administrative provisions
affecting foreign service agencies should be as consistent as
possible. For instance, as Peace Corps employee who is flying
with a USAID employee to attend a meeting should be able to fly
on the same plane without fear of being penalized under the
``Fly America Act.''
This provision would extend to Peace Corps employees and
Volunteers the same treatment now available to other foreign
service agency employees.
Chapter 5--International Disaster Assistance
Sec. 551.--Authority to Provide Reconstruction Assistance.
This section broadens the authority to use disaster
assistance for short term rehabilitation and reconstruction.
Sec. 552.--Authorization of Appropriations. This section
authorizes $190,000,000 for FY98 and 99.
Chapter 6--Debt Relief
Sec. 561.--Debt Restructuring for Foreign Assistance. The
Committee recognizes that for many of the poorest countries there is
not prospect for sustainable development and growth without substantial
debt reduction. It supports the fundamental objective of achieving a
sustainable level of external debt for eligible poorest countries,
through action under ``Naples Terms'' (up to 67% debt reduction) or,
where needed, deeper relief through the new global debt initiative for
Heavy Indebted Poor Countries (``HIPC'). Debt relief should proceed in
the context of strong economic reform efforts to maximize the potential
benefit to the debtor's economy.
The Committee noted that some 25 countries have qualified
for Naples Terms debt relief so far, but that some of the
poorest countries will clearly need additional action,
including measures to reduce debts owed to the international
financial institutions. It welcomes recent decisions within the
International Monetary Fund, the World Bank, and other
international institutions to participate actively in the new
HIPC debt initiative for these countries. This program should
offer new hope for many of the poorest countries in Africa and
Latin America. The Committee understands that the continuing
program for poorest country debt reduction should leverage over
$1 billion in U.S. debt reduction and some $33 billion in debt
reduction worldwide, through comparable action by other
creditors. For each dollar authorized and appropriated, almost
$580 in debt relief will be provided worldwide.
The Committee notes that this should be the final
appropriation for debt forgiveness for Jordan, pursuant to the
historic peace agreement signed between the Hashemite Kingdom
of Jordan and the Government of Israel in 1994. Funding for
this program would further the commitment made by the Unites
States to Jordan in support of these peace efforts and enable
the United Stated to forgive the remaining concessional loans
authorized under Title I of the Agricultural Trade Development
and Assistance Act of 1954, as amended. This carries the
appropriations authorization for Treasury Department debt
restricting.
Sec. 562.--Debt Buybacks or Sales for Debt Swaps. The
Committee continues to strongly support the sale of U.S.
concessional debt under a buyback/swap program to eligible
Latin America or Caribbean debt or countries, or, through swaps
to third parties to support investment or environmental, child
survival, or development programs. It expects that this program
will be carried out at zero budget cost. Debtor countries
interested in participating in the program must meet the
economic and political criteria outlined in the original
Enterprise for the Americas legislation. The Committee welcomes
the Administration consideration of Jamaica and Peru for this
program, and recent interest expressed by Guatemala and the
Dominican Republic. It urges the Administration to move forward
with this program with all deliberate speed.
Chapter 7--Other Assistance Programs
Sec. 571.--Exemption from Restrictions on Assistance
through Nongovernmental Organizations. This section carries
current appropriations law that relaxes restrictions on aid
delivered through NGOs.
Sec. 572.--Funding Requirements Relating to United States
Private and Voluntary Organizations. This section carries
current appropriations law requiring groups to raise 20 percent
of their funds from private sources but without a waiver. The
Committee understands that less than 20 groups currently
receiving AID grants as ``Private'' Voluntary Organizations
raise less than 20% of their funding from the private sector.
Sec. 573.--Documentation Requested of Private and Voluntary
Organizations. This section carries current appropriations law
on the documentation required of PVOs.
Sec. 574.--Encouragement of Free Enterprise and Private
Participation. This section reestablishes the priority of
private sector growth in development programs.
Sec. 575.--Sense of Congress Relating to United States
Cooperatives and Credit Unions. Section 575 expresses the sense
of Congress in support of cooperatives and credit unions. These
institutions provide more loans for micro enterprises than all
other sources of credit combined. Many of these cooperatives have their
origins in the 1800's and have historically lifted low-income people
out of poverty and provided non-collateralized loans to people who
could not get loans from commercial banks. Cooperative credit programs
often rely on mobilized savings or member equity.
A critical difference between cooperatives and other
microenterprise lending institutions are that cooperatives are
member-owned and do not discriminate in their membership
including by income levels. Often cooperatives themselves are
provided with a single loan which is on-loaned to members.
Because of the nature of cooperatives, most of their loans
are under $300. The Committee directs that AID shall consider
micro-loans to cooperatives as meeting the poverty lending
criteria. Further, the Committee directs AID to include farmers
and farming operations as micro-enterprises in its lending
programs.
Sec. 576.--Food Assistance to the Democratic People's
Republic of Korea. The Committee does not oppose the delivery
of limited food assistance to the Democratic People's Republic
of Korea, if it can be certain that the food deliveries will
indeed reach women and children in need. The Committee is
concerned about credible reports that in the past there may
have been attempts to divert humanitarian food aid in North
Korea to replenish military stockpiles.
The Committee expects there to be an extremely high level
of confidence that any U.S. shipments of food aid will not be
similarly diverted. Likewise, the Committee would not support
food assistance if the North Korean Army refuses to tap into
its stockpile of food reserves.
The Committee does not favor food assistance that is
opposed by the Government of the Republic of Korea, and expects
any food deliveries to be properly monitored to ensure that
they reach the intended recipients. The committee also notes
that the famine is the product of misguided governmental
policies, and that the United States must press the government
of the DPRK to fundamentally reform their agricultural system.
The Committee notes that, despite the widespread famine
across the country, the North Korean military budget continues
to increase. We also note that the DRPK continues to pose a
serious risk to U.S. troops stationed in South Korea, and that
North Korean Government officials routinely threaten aggressive
actions against U.S. and ROK forces. Other fundamental concerns
include the DPRK's test of medium-range ballistic missiles,
continued export of terrorism, and refusal to participate in
North-South talks. While the Committee is mindful of the
genuine suffering from the famine in the DPRK, we believe the
humanitarian issues cannot be viewed in isolation. The
Committee anticipates that any provision of food aid should be
part of a comprehensive strategy toward North Korea.
Sec. 577.--Withholding of assistance to countries that
provide nuclear fuel to Cuba. Section 577 amends the FAA to
withhold from United States assistance allocated to any country
an amount equal to the aggregate value of nuclear fuel and
related assistance or credits provided by that country or any
entity of that country to Cuba.
This withholding requirement would not apply if Cuba, (1)
ratifies and complies with the Treaty on the Non-Proliferation
of Nuclear Weapons or the Treaty of Tlatelolco; (2) negotiates
and complies with full-scope safeguards of the International
Atomic Energy Agency; and, (3) is in compliance with
internationally accepted safety standards.
The committee is concerned about the security threat to the
United States should Cuba gain access to nuclear fuel enabling
the operation of the research reactors at the Pedro Pi Nuclear
Facility and providing Cuba with plutonium derived from the
spent nuclear fuel. Russia currently has a $30 million contract
to provide Cuba with nuclear fuel. This contract, unlike a
previous contract, does not require Cuba to return any spent
fuel to Russia Plutonium is a radioactive and poisonous metal
by-product of all uranium fueled reactors and a key component
in both atomic and hydrogen bombs.
The committee further notes its concern that, (1) the
nuclear reactors in question are similar in construction to the
Russian built reactors in North Korea; (2) Cuba has not
ratified the Treaty on the Non-Proliferation of Nuclear Weapons
or the Treaty of Tlatelolco; (3) according to officials at the
Nuclear Regulatory Commission, Cuba has not permitted the
International Atomic Energy Agency to inspect the Pedro Pi
Facility or nuclear reactors at the facility; (4) a potential
nuclear accident in Cuba could result in radioactive fallout as far
north as Washington, DC and as far west as Texas.
Title VI--Trade and Development Agency
The Committee believes that the world-wide improvement of
export controls, especially in the New Independent States, is
an important priority for U.S. non-proliferation policy. The
Committee urges the Administration to devise a long-term
program to fund U.S. efforts to improve such export controls.
The State, Commerce, and Defense Departments (and other
relevant agencies) should agree to a program that balances
their expertise and financial obligations, so that funding and
responsibility for export controls do not continue to be a
topic of continuing bureaucratic friction. The point here is
that the Executive branch needs to devise a long-term plan for
funding so that the U.S. national interest in improved export
controls is advanced.
Sec. 601.--Authorization of Appropriations. This section
authorizes appropriations of $43 million for Fiscal years 1998
and 1999.
Title VII--Special Authorities and Provisions
Sec. 701.--Enhanced Transfer Authority. Section 701 amends
section 610 of the Foreign Assistance Act of 1961 to enhance
the authority of the President to transfer funds between
accounts under that Act. Section 610 currently permits the
President to transfer not to exceed 10 percent of the funds
made available to carry out any provision of the Foreign
Assistance Act. As amended by section 701, section 610 of that
Act would permit the President to transfer up to 20 percent of
the funds made available to carry out any provision of that
Act. In addition, as amended by section 701, section 610 of the
Foreign Assistance Act would eliminate several exclusions from
the President's authority to transfer funds pursuant to section
610. In recognition of the considerable expansion of the
President's authority effected by this provision, section 610,
as amended by section 701, would require the President to
notify the relevant congressional committees pursuant to the
reprogramming procedures of section 634A of the Foreign
Assistance Act before exercising the transfer authority of the
amended section 610.
Sec. 702.--Authority to Meet Unanticipated Contingencies.
Section 702 amends section 451(a) of the Foreign Assistance Act
of 1961 to increase the fiscal year limitation on the amount of
money that the President may draw from funds made available to
carry out any provision of that Act in order to meet
unanticipated contingencies. Currently, section 451(a) of the
Foreign Assistance Act permits the President to draw up to $25
million during any fiscal year to meet unanticipated
contingencies. As amended by section 702, section 451(a) of
that Act would permit the President to draw up to $50 million
during any fiscal year to meet unanticipated contingencies.
Sec. 703.--Special Waiver Authority. Section 703 amends
section 614 of the Foreign Assistance Act of 1961 to expand the
authority of the President to authorize the provision of
assistance under that Act, the Arms Export Control Act, or any
annual foreign assistance authorization or appropriation act
notwithstanding legal prohibitions or restrictions on the
delivery of that assistance. Section 703 increases applicable
ceilings on the amount of assistance that may be provided
during any fiscal year pursuant to an exercise of the authority
of section 614 of the Foreign Assistance Act. In addition,
section 703 expands the scope of the President's waiver
authority under section 614 of the Foreign Assistance Act to
include any other law that restricts assistance, sales or
leases, or other action under that Act, the Arms Export Control
Act, or any annual foreign assistance authorization or
appropriation act.
Sec. 704.--Termination of Assistance. Section 704 amends
section 617 of the Foreign Assistance Act of 1961 to delete a
provision stating that Congress may terminate assistance under
any provision of that Act by concurrent resolution. In
addition, section 704, amends section 617 of the Foreign
Assistance Act to clarify and enhance the President's authority
to wind up terminated assistance programs.
Sec. 705.--Local Assistance to Human Rights Groups in Cuba.
This section amends section 109 of the Cuban Liberty and
Democratic Solidarity (LIBERTAD) Act of 1996 (22 U.S.C. 6039)
to clarify thatsupport for individuals and independent
nongovernmental organizations for democracy-building efforts in Cuba
can include assistance within Cuba and the local costs in Cuba of
delivering such assistance. This section states that accountability
requirements of the United States Agency for International Development
can be satisfied, if necessary, by a ``certification'' by a person
administering such assistance.
Chapter 2--Repeals
Sec. 711. Repeal of Obsolete Provisions. This section
contains a list of administration-approved, bipartisan repeals
of obsolete provisions.
DIVISION B--FOREIGN RELATIONS AUTHORIZATIONS
Title X--General Provisions
Sec. 1001.--Short title. Section 1001 provides a short
title, the ``Foreign Relations Authorization Act, Fiscal Years
1998 and 1999'', for this Division of the Foreign Policy Reform
Act.
Sec. 1002.--Statement of history of legislation. Section
1002 and Section 1001 make clear that the Foreign Relations
Authorization Act for Fiscal Years 1998 and 1999, reported by
the Committee as Division B of the Foreign Policy Reform Act,
shall be effective for all purposes as a separate Act.
Sec. 1003.--Definitions. Title XI--Authorization of
Appropriations for Department of State and Certain
International Affairs Functions and Activities.
Sec. 1101.--Administration of Foreign Affairs. Section 1101
authorizes appropriations for the Department of State as
follows:
(1) $1,291,977,000 for fiscal year 1998 and $1,291,977,000
for fiscal year 1999 for Diplomatic and Consular programs.
The recommended level of authorization for Diplomatic and
Consular Programs is intended to be utilized to maintain a
strong U.S. presence abroad, and to meet current unfunded
needs, including security of personnel and overseas U.S.
facilities, and does not include funding for new programs, not
presently funded, for environmental conferences, programs, and
associated expanded staffing.
(2) $363,513,000 for fiscal year 1998 and $363,513,000, for
fiscal year 1999 for Salaries and Expenses. The Committee
expects that the Department will provide adequate funds and
personnel for the Bureau of Democracy, Human Rights and Labor.
The Bureau currently has 52 employees and a budget of
approximately $6 million. By way of contrast, the Public
Affairs office has 115 employees and a budget of over $10
million; the Protocol office has 62 employees; and each of the
six regional bureaus has an average of about 1500 employees,
with a combined budget of approximately $1 billion. This
disparity in resources has important practical consequences
which should be addressed in order to give the protection and
advancement of internationally recognized human rights the
priority it deserves in United States foreign policy.
Section 1101(2)(B) requires that of the total amount
authorized for salaries and expenses, $2,000,000 for each of
fiscal year 1998 and fiscal year 1999 are authorized only for
the recruitment of minorities into the Foreign Service.
The Committee is concerned about the low levels of
representation by minorities in the Department of State's
Foreign Service, and particularly in the Senior Foreign Service
where minorities make up only about seven percent. Therefore,
the Committee supports a strong minority recruitment program.
Recruitment initiatives should include: (1) the reinstatement
of the Foreign Affairs Fellowship Program; (2) mentoring
activities beginning after a candidate has passed the written
exam; (3) the creation of long-term relationships with the
Hispanic, Asian-Pacific Island and African-American
communities; and (4) the active recruitment of minorities for
internships.
The Committee notes that the Foreign Affairs Fellowship
Program has made a significant contribution toward the
Department of State's stated goal of achieving a diverse
Foreign Service--of the thirty-six Foreign Service officers in
the class of 1996, the Fellowship Program brought in only three
African Americans, another three Americans of Asian and Pacific
Island descent, and one Hispanic American. The Committee urges
the Department of State to make efforts to ensure the adequate
promotion of minorities already serving in the Foreign Service.
The Committee notes that the Foreign Service benefits from the
diverse resources, knowledge, and foreign language ability of
its minority officers and that it should recognize these
factors when making hiring decisions.
(3) $64,600,000 for fiscal year 1998 and $64,600,000 for
1999 for the Capital Investment Fund.
(4) $373,081,000 for fiscal year 1998 and $373,081,000 for
fiscal year 1999 for Security and Maintenance of Buildings
Abroad.
(5) $4,300,000 for fiscal year 1998 and $4,300,000 for
fiscal year 1999 for Representation Allowances.
(6) $5,500,000 for fiscal year 1998 and $5,500,000 for
fiscal year 1999 for Emergencies in the Diplomatic and Consular
Service.
(7) $28,300,000 for fiscal year 1998 and $28,300,000 for
fiscal year 1999 for the Office of the Inspector General.
(8) $14,490,000 for fiscal year 1998 and $14,490,000 for
fiscal year 1999 for the American Institute in Taiwan.
(9) $7,900,000 for fiscal year 1998 and $7,900,000 for
fiscal year 1999 for Protection of Foreign Missions and
Officials.
(10) $1,200,000 for fiscal year 1998 and $1,200,000 for
fiscal year 1999 for Repatriation Loans.
Sec. 1102.--Authorization of Appropriations--International
Organization, Programs, & Conferences. Section 1102(a)
authorizes $960,389,000 for fiscal year 1998 and $987,590,000
for fiscal year 1999 for Contributions to International
Organizations.
Section 1102(b) authorizes $199,725,000 for fiscal year
1998 and $199,725,000 for fiscal year 1999 for Voluntary
Contributions to International Organizations. This subsection
has the following limitations: (A) $5,000,000 in fiscal year
1998 and $5,000,000 in fiscal year 1999 for the World Food
Program; (B) $3,000,000 for fiscal year 1998 and $3,000,000 in
fiscal year 1999 for the UN Voluntary Funds for Victims of
Torture; and (C) $10,000,000 for fiscal year 1998 and
$10,000,000 for fiscal year 1999 for the International Program
on the Elimination of Child Labor.
Subsection (b)(2)(A) authorizes a $5 million contribution
in each of fiscal years 1998 and 1999 to the World Food Program
(WFP). The United States continues to be, by far, the largest
donor to the World Food Program. Hundreds of millions of
dollars worth of food aid is being provided by the US through
WFP to provide help to those most affected in the ever-
increasing number of emergencies around the world. This
assistance is primarily provided in the form of food aid from
the PL 480 program.
Every year the US is expecting more and more from WFP as
the key provider of food aid in emergencies. The GAO and the US
Congress, in investigating the effectiveness of WFP in the past
years, have determined that a larger cash component is urgently
required to ensure that food aid is targeted to the most needy.
WFP requires this cash contribution from the U.S. to maintain
and further improve upon the efficiency and effectiveness of
food aid distribution operations in emergency situations such
as Rwanda, Bosnia, Liberia and Sudan. This cash contribution
approach is consistent with the policies of the other WFP
donors. The $5 million cash contribution from the U.S. should
be used by WFP to improve the central administration of their
food aid programs.
Subsection (b)(2)(B) authorizes a $3 million contribution
in each of fiscal years 1998 and 1999 to the United Nations
Voluntary Fund for Victims of Torture. The Voluntary Fund
supports more than 60 projects for the care, rehabilitation,
andrecovery of torture victims. The Committee urges the
Department of State to use the increased United States contribution to
the Fund as a challenge to other governments to make similar increases
in their voluntary contributions.
Subsection (b)(2)(C) authorizes a $10 million contribution
in each of fiscal years 1998 and 1999 to the International
Program on the Elimination of Child Labor (IPEC). IPEC conducts
long-term (usually 10 year) in-country projects in nations that
have admitted they have a child labor problem and have invited
IPEC to help address it. Such projects develop national plans
of action, improve legislation and enforcement measures,
improve education for the poor, and create economic incentives
for change. A number of countries in Africa and elsewhere have
requested IPEC assistance and are waiting for funds to be
available to begin their in-country programs for the
elimination of child labor.
Section 1102(c) authorizes $240,000,000 for fiscal year
1998 and $240,000,000 for fiscal year 1999 for Assessed
Contributions for International Peacekeeping Activities.
Section 1102(d) authorizes $87,600,000 for fiscal year 1998
and $67,000,000 for fiscal year 1999 for Voluntary
Contributions to Peacekeeping Operations.
Section 1102(e) authorizes $3,000,000 for fiscal year 1998
and $3,000,000 for fiscal year 1999 for International
Conferences and Contingencies.
Section 1102(f) provides the authority to offset adverse
fluctuations in Foreign currency exchange rates. Amounts
appropriated under this subsection shall be available only upon
certification by the Director of the Office of Management and
Budget that such amounts are necessary due to such
fluctuations.
Subsection 1102(g) requires the withholding from U.S.
voluntary contributions to the United Nations Development
Program (UNDP) of an amount equal to the amount UNDP intends to
spend in Burma during each of the fiscal years 1998 and 1999,
unless the President certifies to Congress that UNDP programs
in Burma are focused on eliminating human suffering and
addressing the needs of the poor; are undertaken only through
international or private voluntary organizations that have been
deemed independent of Burma's military dictatorship, the State
Law and Order Restoration Council (SLORC); provide no
financial, political, or military benefit to the SLORC; and are
carried out only after consultations with the leadership of the
principal Burmese pro-democracy organizations, the National
League for Democracy (NLD) and the National Coalition
Government of the Union of Burma (NCGUB).
During 1996 and 1997 the SLORC has escalated its campaign
against democratic forces inside Burma and along its borders.
Hundreds of democracy advocates and members of the major
opposition party, the NLD, have been arrested. Access to
democratic leader Aung San Suu Kyi has been severely
restricted, and the ``Weekend Talks'' that had provided a forum
for thousands of Burmese people to enter into dialogue with
opposition leaders have been halted as SLORC troops blockade
the roads leading to the compound where the talks were held.
SLORC officials and the State-controlled media have called for
the ``annihilation'' of those opposing the regime.
SLORC has also launched a major military offensive against
the members ofthe Karen and Karenni ethnic minorities. This
offensive has resulted in a massive exodus of refugees into Thailand
and an increase of human rights abuses against ethnic peoples as SLORC
moves to gain control of areas of the country dominated by these
peoples.
The Committee remains concerned about UNDP programs in
Burma. UNDP and Administration officials have assured the
Committee that such programs do not benefit the SLORC.
Committee members, however, continue to receive reports that
UNDP officials regularly consult with the SLORC on Burma
programs, that they do not consult with pro-democracy
organizations, and that UNDP programs in Burma have the effect
of enhancing the international prestige and domestic power of
the SLORC. The certification requirement is intended to provide
additional assurances that UNDP programs are truly independent
of the SLORC, to make clear to UNDP officials that their
activities in Burma should be limited to addressing the basic
human needs of the poor and disadvantaged people of Burma, and
that they should do so in consultation with the NLD and NCGUB,
the duly elected political leadership of the people of Burma.
The Committee expects that in determining whether UNDP
programs in Burma meet the conditions set forth in this
subsection, the Department shall rely on assessments by experts
and non-governmental organizations independent of UNDP. It
would be helpful for the Department to consult with the
Committee in the selection of such experts and organizations.
organization of american states
Of the funds authorized to be appropriated for voluntary
contributions to international organizations, the Committee
intends that the United States shall contribute to Organization
of American States (OAS) democracy activities in addition to
technical assistance programs. Of the sum allocated to OAS
democracy activities, it is the intent of the Committee that 40
percent shall be made available to the Inter-American
Commission on Human Rights (IACHR) to support in situ visits
and technical assistance for national human rights offices; 20
percent shall be made available for activities by the Unit for
the Promotion of Democracy (UPD) for activities to strengthen
local human rights organizations; and not less than 20 percent
shall be made available to UPD for activities to
professionalize national election councils. The Committee
contemplates a contribution to the IACHR with the expectation
that the IACHR will continue publishing special chapter on
human rights developments in select countries as part of its
annual report.
food and agriculture organization
The Committee recommends that the Secretary of State should
pay the current assessments in fiscal year 1998 for the Food
and Agriculture Organization (FAO) and believes that the
resource levels authorized in the bill are sufficient for this
purpose. The Committee notes the importance of continued U.S.
leadership in international organizations such as the FAO that
provide a global framework for encouraging and facilitating
international trade in food, agriculture, fisheries and
forestry products.
In particular, the Committee notes the importance of FAO's
activities, suchas data collection and dissemination, standard
setting through the Codex Alimentarius and the International Plant
Protection Convention, agricultural genetic resources, and control of
transboundry agricultural pests and diseases. These activities directly
benefit U.S. industry and reduce the cost of other related programs of
the U.S. Department of Agriculture.
The Committee notes with satisfaction that reform of the
FAO over the past three years. While maintaining support for
programs of vital interest to the U.S., this agency has: (1)
reduced its budget by 3.4% in the 1996-97 biennium; (2) cut
overall staff by 11% and headquarters staff by 19%; (3)
downgraded and abolished unnecessary middle management
positions; (4) improved the ratio of professional to support
staff; and (5) eliminated meetings and publications, and
reduced travel expenses.
Recognizing that U.S. resources are likely to be limited
for all U.N. agencies, the Committee urges the U.S. to use its
voice and vote to focus this agency on its programs of key
importance to the U.S., including those described above.
world health organization
The Committee commends the World Health Organization (WHO)
for its efforts to combat new and re-emerging infectious
diseases, particularly its capacity to mobilize staff and
personnel immediately after the notification of an outbreak, as
was the case with the outbreak of Ebola fever in Zaire in 1995.
With the development of public health laboratories, WHO has
strengthened regional and international collaboration in
detecting and controlling the outbreak of infectious diseases.
The Committee notes that the WHO has collaborated with
UNICEF in controlling diphtheria epidemics in the Russian
Federation, several other NIS countries, and Mongolia, and
their collaborative immunization efforts against pertussis,
measles, tuberculosis and other diseases have saved millions of
children from death and disability. Their integrated management
approach for the prevention and treatment of childhood disease
is to be commended.
The WHO should continue to focus its efforts on infant,
child and adolescent health, as well as its efforts to fight
infectious diseases, food-borne diseases and insect-borne
diseases. Its information system (WHONET) supports the global
surveillance of bacterial resistance to antimicrobial agents
and its FAO/WHO Codex Alimentarius Commission ensures that
internationally agreed food standards are consistent with
health protection.
The Committee commends the efforts of the WHO in adopting
education programs aimed at the prevention of noncommunicable
diseases related to lifestyle and diet, but cautions that the
best nutrition guideline is ``a wide variety in moderation'',
and that foods and their purveyors cannot be categorized as
``good'' or ``bad''.
Sec. 1103.--Authorization of Appropriations--International
Commissions. Section 1103 authorizes appropriations for the
International Commissions account of the Department of State to
fulfill the U.S. share of treaty and other international
obligations involving Canada, Mexico and other countries on
international boundary and fisheries matters.
Specifically, this section authorizes to be appropriated
$18,490,000 for fiscal year 1998 and $18,490,000 for fiscal
year 1999 for Salaries and Expenses of the International
Boundary and Water Commission; $6,493,000 for fiscal year 1998
and $6,493,000 for fiscal year 1999 for Construction for the
International Boundary and Water Commission; $785,000 in fiscal
year 1998 and $785,000 in fiscal year 1999 for the
International Boundary Commission, United States and Canada;
$3,225,000 for fiscal year 1998 and $3,225,000 for fiscal year
1999 for International Joint Commission; and $14,549,000 for
fiscal year 1998 and $14,549,000 for fiscal year 1999 for the
International Fisheries Commissions.
Sec. 1104.--Authorization of Appropriations--Migration and
Refugee Assistance. Section 1104 authorizes to be appropriated
$623,000,000 for fiscal year 1998 and $623,000,000 for fiscal
year 1999 for Migration and Refugee Assistance. Subsection (2)
authorizes of the amounts appropriated: $1 million for each
fiscal year for humanitarian assistance for Tibetan refugees in
India and Nepal.
Section 1104(b) authorizes $80,000,000 for each fiscal year
for the resettlement of refugees in Israel. Section 1104(c)
authorizes for each fiscal year $1,500,000 for humanitarian
assistance for displaced Burmese.
This section provides $704.5 million in each of fiscal
years 1998 and 1999 for the Migration and Refugee Assistance
(MRA) account. The Committee notes that reductions in prior
years in the amount provided for refugee assistance, together
with the affects of a inflation and exchange rates, have
resulted in an alarming trend toward understaffing in the
protection division of the United Nations High Commissioner for
Refugees (UNHCR), as well as in reductions of resources
available to non-governmental organizations engaged in
protection and resettlement of refugees from countries
including Bosnia, Rwanda, Burundi, Iran, Liberia, Sudan, and
Tibet. This resource shortfall has had the dual effect of
creating pressure for premature repatriation of refugees and of
making it impossible to ensure that such repatriation is
conducted safely and humanely. The amount provided for the MRA
account in this section represents a 5% increase over the
amount provided in fiscal years 1994 and 1995. This amount is
sufficient to compensate only for about half of the 10.3%
reduction in resources due to inflation since fiscal year 1994,
and is somewhat lower than the increases provided for the
Department's operating accounts over the same period.
United Nations High Commissioner for Refugees
The Committee takes special note of the needs of vulnerable
refugee children, particularly those separated from their
parents, and recommends that the United States take the lead
and support initiatives for vulnerable children.
Subsection (a)(2) authorizes $1,000,000 for humanitarian
assistance to Tibetan refugees. The government of China
continues to repress the Tibetan people. The Committee
recognizes that Tibetan refugees continue to flee Tibet in
order to seek resettlement in India and elsewhere. They are
assisted by the Central Tibetan Administration (CTA) under the
leadership of the Dalai Lama. The Department of State has
designated the Tibet Fund to facilitate the implementation of
humanitarian assistance provided for these refugees since
fiscal year 1991. TheCommittee acknowledges that while the
present regime remains in power in Beijing there is no foreseeable
prospect for these refugees to return to their homes. Moreover, the CTA
has substantiated the need for further humanitarian assistance to the
thousands of Tibetans who remain unsettled in India. The $1,000,000
provided for each of fiscal years 1998 and 1999 should be made
available through the Tibet Fund.
Subsection (c) authorizes $1,500,000 for assistance to
displaced Burmese along the border between Burma and Thailand,
including the Karen refugees who have been subjected to cross-
border attacks by the SLORC and allied military forces, the
burning of their homes, and forced repatriation to Burma. The
Committee hopes that continued United States support for these
refugees and displaced persons will be helpful in persuading
the Royal Thai Government to reaffirm its traditional attitude
of generosity and protection toward them.
Sec. 1105.--Authorization of appropriations--Asia
Foundation. Section 1105 authorizes to be appropriated
$10,000,000 in fiscal year 1998 and $10,000,000 in fiscal year
1999 for the Asia Foundation.
The Asia Foundation is a grant making organization which
advances U.S. interests in the Asia-Pacific region by promoting
democracy, the rule of law, liberalization of trade and
investment, and peaceful relations within the region.
The Committee supports the Foundation's work and believes
the authorized level of funding is necessary to support
Foundation programs which are clearly in the interest of the
United States and which can best be influenced by the
Foundation as a private, non-governmental organization with
unique experience in the region.
Sec. 1106.--Authorization of Appropriations for USIA.
Section 1106 authorizes to be appropriated the following
amounts for international information activities, educational
and cultural exchange programs and international broadcasting:
(1) $434,097,000 for fiscal year 1998 and $434,097,000 for
fiscal year 1999 for Salaries and Expenses.
(2) $6,350,000 for fiscal year 1998 and $6,350,000 for
fiscal year 1999 for the Technology Fund.
(3)(A) $94,236,000 for fiscal year 1998 and $94,236,000 for
fiscal year 1999 for Fulbright Academic Exchange Programs.
(3)(B) $500,000 for fiscal year 1998 and $500,000 for
fiscal year 1999 for South Pacific Exchanges.
(3)(C) $500,000 for fiscal year 1998 and $500,000 for
fiscal year 1999 for East Timorese Scholarships.
(3)(D)$500,000 for fiscal year 1998 and $500,000 for fiscal
year 1999 for Tibetan Exchanges.
(3)(E) $97,995,000 for fiscal year 1998 and $97,995,000 for
fiscal year 1999 for other exchange programs.
(4) $334,655,000 for fiscal year 1998 and $334,655,000 for
fiscal year 1999 for International Broadcasting activities.
(5) $30,000,000 for fiscal year 1998 and $30,000,000 for
fiscal year 1999 forRadio Construction.
(6) $10,000,000 for fiscal year 1998 and $10,000,000 for
fiscal year 1999 for Radio Free Asia.
(7) $22,095,000 for fiscal year 1998 and $22,095,000 for
fiscal year 1999 for Broadcasting to Cuba.
(8) $10,000,000 for fiscal year 1998 and $10,000,000 for
fiscal year 1999 for the Center for Cultural and Technical
Interchange between East and West.
(9) $30,000,000 for fiscal year 1998 and $30,000,000 for
fiscal year 1999 for the National Endowment for Democracy.
(10) $2,000,000 for fiscal year 1998 and $2,000,000 for
fiscal year 1999 for the Center for Cultural and Technical
Interchange Between North and South.
Fulbright Senior Scholar Program
The Committee commends USIA for opening up the
administration of the Fulbright Senior Scholar Program for
competition. The Committee strongly urges that the competition
be conducted in such a way as to take maximum advantage of the
unique competitive strengths of exchange organizations that
have expertise and experience in specific regions of the world.
Radio Free Asia
The Committee believes that Radio Free Asia (RFA) is now a
key component of our international broadcasting operations and
plays an important role in our policy toward Asia. As part of
RFA's continued viability, and as part of the Voice of
America's broadcasts to Asia, the Committee supports the
completion of the Tinian relay station, which is the only U.S.-
owned facility on U.S. soil capable of transmitting a reliable
signal to China.
Voice of America Programming
Voice of America (VOA) should explore opportunities to
expand the types of programs currently produced to include a
wider range of U.S. interests. Such programming could address
the individual interests of the 50 States and territories on
topics of trade and tourism. Many States have active
international programs to promote their products and
destinations and are looking for additional marketing
opportunities. The Committee is aware that States have
expressed support for this idea of utilizing the worldwide
capacity of VOA to promote their individual interests.
Book Donation Program
The Committee notes the continued funding for logistic
support for book donation programs and related Internet and
other digital information technologies. Such programs managed
by private voluntary organizations multiply the benefit of
federal dollars with private sector support and assist in
opening new markets for U.S. business. They also have the
intrinsic value of promoting the free movementof ideas and the
growth of knowledge.
Claude and Mildred Pepper Scholarship Program
The Committee recognizes the contributions of the Executive
Education Program for Central European Business and
Professional Leaders in facilitating a smooth transition to a
market economy in the emerging republics of Central Europe. The
program has proven to be mutually beneficial to the U.S.
through development of increased export trade with these new
republics. The Committee supports the leadership program's plan
to expand its business outreach activities into one or more
emerging democracies of Latin America such as Argentina,
Brazil, Chile and Columbia. This leadership program is a
component of the Claude and Mildred Pepper Scholarship Program
of the Washington Workshops Foundation.
Sec. 1107.--Authorization of Appropriations for US Arms
Control & Disarmament Agency. Section 1107 authorizes to be
appropriated $44,000,000 for fiscal year 1998 and $44,000,000
for fiscal year 1999 for the Arms Control and Disarmament
Agency. This section also authorizes such sums as may be
necessary for each of the fiscal years 1998 and 1999 for
increases in salary, pay, retirement, other employee benefits
authorized by law, and to offset adverse fluctuations in
foreign currency exchange rates.
Sec. 1201.--Revision of the State Department Rewards
Program. Section 1201(a) rewrites the State Department rewards
program to update this important tool used in capturing
fugitives abroad in cases of terrorism and narcotics offenses.
Changes include raising the cap on the funds available for the
rewards program, and allowing rewards to be paid for help in
preventing counterfeiting of US currency by state sponsors and
others supporting terrorism. The Secretary is required to
submit a report to Congress when a reward payment is made, as
well as an annual report that summarizes all rewards or
expenditures made from this account.
The section also clarifies that determinations by the
Secretary of State regarding counterterrorism and narcotics-
related rewards are solely at the discretion of the Secretary,
in consultation as appropriate with the Attorney General and
are not subject to judicial review. This conforms the State
Department rewards program to similar provisions in various
statutes comprising reward authorities of the Attorney General,
including those related to domestic terrorism. This will
preclude unnecessary lawsuits that could divert Department
resources, as well as bring unwarranted negative publicity to
the rewards program and discourage potential informers.
Section 1202(b) makes available to carry out the rewards
program up to two percent of Foreign assets frozen by the
President under the International Emergency Economic Powers
Act.
Sec. 1202.--Foreign service national separation liability
trust fund. Section 1202 authorizes the interest earned on this
trust fund to be retainedwithin the account. The Foreign
Service National Separation Liability Trust Fund was established as an
account into which agencies deposit and accrue funds to make separation
payments to foreign national employees in countries in which separation
pay is required by local law.
Sec. 1203.--Capital Investment Fund. Section 1203 amends
section 135 of the Foreign Relations Authorization Act, Fiscal
Years 1994 and 1995 (22 U.S.C. 2684a) to allow the Capital
Investment Fund to be used for the procurement and upgrade of
information technology and other related capital investments
for the Department of State.
Section 135(e) is amended to eliminate as duplicative the
requirement that subjects money in the Fund to Congressional
reprogramming requirements before it is obligated. The
Department will follow reprogramming procedures when it
proposes to obligate or expend monies from the Fund. The
Committee understands that the Department will explain
potential uses of the Fund in its Congressional Presentation
Document.
Sec. 1204.--International Center reserve funds. Section
1204 amends current law to allow the Secretary of State to
accrue and retain the interest collected on the International
Chancery Center reserve account to be used to pay for
maintenance and security costs, subject to the availability of
appropriated funds.
Sec. 1205.--Proceeds of Sale of Foreign Properties. Section
1205 provides the authority to invest proceeds of sales from
real property assets overseas in an interest bearing account.
Sec. 1206.--Reduction of reporting requirements. Section
1206 repeals five State Department reporting requirements: (1)
a report on Foreign service personnel; (2) a report on
participation by United States military personnel abroad in
United States elections; (3) country reports on economic policy
and trade practices; (4) a report on social and economic
growth; and (5) a report on the implementation of the Chemical
Biological Weapons and Warfare Elimination Act of 1991.
Sec. 1207.--Contracting for local guards services overseas.
Section 1207 amends section 136 of PL 101-246 by repealing
subsection (c)(7) and replacing (c)(3) with a more efficient
process for evaluating requests for proposals for contracts for
the local guard program. These changes continue a preference
for firms and joint ventures qualifying under an existing
definition of a United States person.
The current legal mandate requires use of an extensive
point-scored technical evaluation process which involves
precise scoring of subjective information for the purpose of
determining the winner of local guard contracts. This
requirement adds considerably to the time required to award
competitive overseas guard contracts. The Committee understands
that the proposed change to the legislation would retain its
benefits in a more streamlined source selection process. The
evaluation would determine the acceptability of the technical
proposal,followed by use of a price preference which reduces
the price of United States firms by five percent for evaluation
purposes.
Sec. 1208.--Preadjudication of claims. Section 1208 amends
section 4 of the International Claims Settlement Act to permit
the Foreign Claims Settlement Commission to preadjudicate
claims by United States citizens. Preadjudication would provide
the Department with important information on the value and
validity of claims by the U.S. public in advance of the
negotiations and conclusion of an agreement. The Committee
understands that in the event of preadjudication, the Secretary
of State will make every effort to inform affected persons.
Sec. 1209.--Expenses relating to certain international
claims and proceedings. Section 1209 allows the Department to
accept in certain cases reimbursement from private sector
claimants for tribunal expenses, salaries and ordinary
expenses. The intent of this provision is to allow the
Department to accept reimbursement from claimants who would
normally pay for the legal expenses of pursuing a claim. In
such cases the Department would be able to accept a voluntary
contribution.
Sec. 1210.--Establishment of fee account and providing for
passport information services. Section 1210 establishes a new
fee account dedicated to funding the operations of the State
Department. The fees collected and deposited into the special
account pursuant to this section consist of immigration,
passport, and other fees previously deposited in the Treasury
as miscellaneous receipts. The fees may be used only in advance
in Appropriation Acts. Not more than $455,000,000 may be made
available unless a modification is submitted under
reprogramming provisions of law. The retained fees are used to
reduce the appropriation request for the Diplomatic and
Consular Programs account.
This section also requires that the Department provide
certain information free of charge to citizens inquiring about
the processing of their passports, and authorizes $5 million
from passport fee collections to be used for this purpose.
Section 1210(e) makes available from amounts deposited in
the fund created by section 1210(a) $5 million for each of the
fiscal years 1998 and 1999 for the purpose of providing
passport information without charge to citizens of the United
States. Such information includes information: (a) about who is
eligible to receive a United States passport and how and where
to apply; (b) about the status of pending applications; and (c)
the names, addresses and telephones numbers of State and
Federal officials who are authorized to provide passport
information in cooperation with the Department of State.
The Committee believes that U.S. citizens should have free
access to basic information generated by their Government. The
Committee suggests that an ``800'' number may be an appropriate
way to provide access to this information.
The Committee also expects the Department to reaffirm its
traditional co-operation with other federal, state, and local
officials who have supplied this information to the public in
the past. For instance, in New Jersey, Country Clerks of the
Court serve as the designated acceptance facility for passport
applications. These offices offer free assistance and
information to citizens via telephone or officevisits. The
State Department's decision to channel all inquiries through a pay-for-
service 900 phone line ignores the personal assistance people can
receive at the locally designated facilities. People who are calling
under a deadline or in the midst of a family crisis deserve the
opportunity to talk directly to passport officials who can help them.
No other federal agency has attempted to charge citizens when they
follow up on the status of their application or inquiry.
Sec. 1211.--Establishment of machine readable fee account.
Section 1211 authorizes the collection and retention of fee
changes current law, which allows machine readable visa fees to
be collected as an offsetting collection. Consistent with
Section 1210, this change treats these fees as receipts, and
makes them available for border security activities of the
Department of State, and puts the fees on budget subject to
appropriation. Not more than $140,000,000 maybe made available
in any fiscal year unless a modification is submitted under
reprogramming provisions of law.
Sec. 1212.--Retention of additional defense trade controls
registration fees. Section 1212 amends section 45(a) of the
State Department Basic Authorities Act to enable the Department
to retain all of the registration fees that the Department's
Office of Defense Trade Controls collects. This section
eliminates the $700,000 cap on such retentions. The additional
fees will be used for enhanced reporting on end-use monitoring
and expanded registration and licensing and company audits.
Sec. 1213.--Training. Section 1213 amends section 701 of
the Foreign Service Act of 1980 by adding a new subsection
701(e)(1) to allow the State Department to provide training for
employees and their family members of United States companies
operating overseas on a reimbursable basis. In addition, this
section allows the Department to provide foreign language
training on a reimbursable basis to Members and employees of
Congress.
Section 1213(b) authorizes the Secretary of State to charge
a fee for use of the National Foreign Affairs Training Center
Facility. These fees shall be deposited as an offsetting
collection to any State Department appropriation and shall
remain available until expended. Fees set for renting these
facilities should not provide a competitive advantage over
other commercial facilities .
Sec. 1214.--Recovery of costs of health care services.
Section 1214 authorizes the State Department to recover the
costs incurred for providing health services by seeking
reimbursement from health insurance providers.
This section, which implements recommendations of the
Department of State's Office of the Inspector General, amends
section 904 of the Foreign Service Act of 1980 to authorize the
Department to recover and retain the costs incurred by the
Department for health care services provided to eligible USG
employees and their families and to other eligible individuals.
The proposed legislation would permit the Department to recover
and retain such costs from third-party payers, and to recover
directly from the employee if the employee chooses to be
uninsured orto pay for medical services directly. The
Departments of Defense and Veterans Affairs, as well as the Indian
Health Service, already have similar authority.
This section addresses the problem of the Department's
expenses caused by providing free health care services in
certain instances to employees, their dependents, and other
U.S. Government employees and nationals. Currently, virtually
all health care services received by eligible USG employees and
their families at post health care facilities abroad are at no
charge, whether or not the treatment is for a work-related
condition, and whether or not the employee has health
insurance. Because the Department does not charge a fee for
these services, the employee's insurer is not obligated to pay.
In addition, there are instances in which an employee or family
member may receive care from a non-governmental source and the
Department picks up the charge.
The Department also, in certain circumstances set forth in
regulations, provides or contracts for medical services for
non-USG employees and their family members at posts abroad.
Such services are available, for example, on a temporary basis
to contractors of the U.S. Government in remote locations where
suitable private health care is not available, where it is in
the best interests of the U.S. Government, and where extension
of the care does not detract from the service available to
employees and their families. These persons are required to pay
a fee for the services, but the Department now has no authority
to retain these fees.
The result is a situation where the Department is paying a
significant portion of its employees' health insurance
premiums, but is not always receiving reimbursement from the
insurer while employees are stationed at post. This situation
could act as a disincentive for an employee to continue to
participate in a health insurance program while abroad. An
estimate of the operating costs for overseas health units for
fiscal year 1997 is approximately $22.7 million (including
salaries, post entitlement, Regional Medical Officer travel,
continuing medical education, and prescription medicines). The
costs for administering this recovery program are estimated at
$2 million. In addition, the Department contributes over $15
million per year toward health insurance premiums for insurance
that is not consistently used by its overseas employees. In
some instances, the Department is paying twice for certain
health care costs of its employees posted abroad. Section 1214
would rectify this situation.
Section 1214(a)(1) amends section 904(a) of the Foreign
Service Act of 1980 to permit the Secretary to designate
certain persons who are not USG employees or family members to
receive health care services abroad.
Section 1214(a)(2) amends section 904(d) of the Foreign
Service Act of 1980, which authorizes the Secretary to pay the
cost of medical treatment for eligible individuals. The
amendment would make section 904(d) subject to a new fee
collection program described in new subsections (g) and (h).
Section 1214(a)(3) amends section 904 of the Foreign
Service Act of 1980 by adding subsections (g), (h) and (l)
relating to the new fee collection program, which are described
as follows.
New subsection (g)(1) authorizes the United States to
recover the cost of health care services incurred by the
Department from third-party payers to the same extent that the
covered beneficiary would be eligible to receive reimbursement
from the third-party payer for such expenses if the care had
been provided by a non-governmental provider and certain other
conditions specified in new subsection(g)(2) pertained. That
provision also provides that a covered beneficiary is not required to
pay any deductible, copayment or other cost-sharing for health care
provided under section 904.
New paragraphs (2) and (4) of subsection (g) recognize the
unique circumstances at government health care facilities at
posts abroad. Paragraph (2)(A) provides that a third-party
payer must recognize the ``reasonable charge amount''
established by the Department for a service, rather than the
actual cost, as the basis for payment of claims under the plan.
Paragraph (2)(B) is addressed to health care plans in the
nature of health maintenance organization that have
participation agreements with outside health care providers,
provide agreements with outside health care providers, and
provides that the Secretary shall be treated as having a
participation agreement with such a plan as results in the
highest level of payment under subsection (g). New paragraph
(2)(C) would prohibit third-party payers from refusing to
reimburse the Department based on provisions in the insurance
contract excluding from coverage care provided under various
circumstances, including for example, care provided by a
government entity outside the United States, care provided to
an individual who is not obligated to pay for the care, and
care provided by a provider who is not licensed to provide the
care in the U.S. The Departments of Defense and Veteran's
Affairs and the Indian Health Service have comparable
authority. In the case of the State Department, this provision
will also ensure coverage for care provided by registered
nurses, whether or not they are under the direct supervision of
a physician. New paragraph (2)(D) provides that, if a health
benefits plan requires a deductible, copayment or other cost-
sharing, the Department will absorb that cost. In other words,
neither the covered beneficiary nor the third-party payer is
required to pay any cost-sharing amount. New paragraph (2)(E)
provides that where a covered beneficiary has not met the
deductible provided for under a health care plan, the amount
that the third-party payer would otherwise have paid had the
deductible been met will be counted towards the deductible
event although the covered beneficiary did not pay such amount.
New paragraph (2)(F) gives the Secretary other authority to
apply such other provisions as may be appropriate to carry out
section 904 in an equitable manner. New subsection (g)(4),
which is similar to legislation pertaining to the Department of
Veterans Affairs and the Indian Health Service, further
provides that no State law or law of any political subdivision
of a State can prevent recovery by the United States under this
section.
New subsection (g)(3) of section 904 subrogates the United
States to the beneficiary's rights against the third-party
payer, permits the United States to pursue legal proceedings
against a third-party payer to enforce the government's rights
under section 904, and authorizes the Secretary to compromise
or waive claims of the United States under this section.
Under new paragraph (5) of subsection (g), a third-party
payer shall be permitted to review an employee's health records
to verify that the care for which reimbursement is sought was
provided, and to verify that the care meets the criteria of the
health benefits plan (except as otherwise provided in
subsection (g)). Under new subsection (g)(7), the Secretary
must establish a procedure under which a covered beneficiary
may elect to pay the entire amount of a reasonable charge
amount for a service to the Department, and thus avoid having a
claim and related medical records submitted to the individual's
health benefits plan.
New subsection (g)(6) directs the Secretary to establish
and periodically update a schedule of reasonable charge
amounts, based on charges recognized by third-party payers for
payment under covered health benefits plans in the metropolitan
Washington, DC area.
New subsection (g)(8) authorizes the Department to deposit
any amounts collected under subsections (g) or (h) or any
authority referred to in subsection (I) as an offsetting
collection to any Department of State appropriation. Receipts
from collections would remain available until expended.
New subsection (g)(9) defines terms used in section 904. In
particular, ``covered health benefits plan'' is intended to
cover all health benefits plans offered under the Federal
Employees Health Benefits Program except those plans, such as a
staff-model health maintenance organization, that the Secretary
impedes the application of subsection (g) to covered
beneficiaries enrolled in the plan.
New subsection (h) applies in the case of a person who is
not a ``covered beneficiary'' as that term is used in this
section, or who has made an election under section (g)(7) as
described above to be treated as other than a covered
beneficiary, but for whom the Department incurs cost for health
care services. In those situations, the Department is
authorized to collect directly from the individuals who receive
the services the full reasonable charge a