[DOCID: f:publ118.105]

[[Page 2385]]

       FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS 
                        APPROPRIATIONS ACT, 1998

[[Page 111 STAT. 2386]]

Public Law 105-118
105th Congress

                                 An Act


 
  Making appropriations for foreign operations, export financing, and 
related programs for the fiscal year ending September 30, 1998, and for 
         other purposes. <<NOTE: Nov. 26, 1997 -  [H.R. 2159]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1998.>>  assembled, 
That the following sums are appropriated, out of any money in the 
Treasury not otherwise appropriated, for the fiscal year ending 
September 30, 1998, and for other purposes, namely:

                TITLE I--EXPORT AND INVESTMENT ASSISTANCE

    The Export-Import Bank of the United States is authorized to make 
such expenditures within the limits of funds and borrowing authority 
available to such corporation, and in accordance with law, and to make 
such contracts and commitments without regard to fiscal year 
limitations, as provided by section 104 of the Government Corporation 
Control Act, as may be necessary in carrying out the program for the 
current fiscal year for such corporation: Provided, That none of the 
funds available during the current fiscal year may be used to make 
expenditures, contracts, or commitments for the export of nuclear 
equipment, fuel, or technology to any country other than a nuclear-
weapon state as defined in Article IX of the Treaty on the Non-
Proliferation of Nuclear Weapons eligible to receive economic or 
military assistance under this Act that has detonated a nuclear 
           explosive after the date of enactment of this Act.

    For the cost of direct loans, loan guarantees, insurance, and tied-
aid grants as authorized by section 10 of the Export-Import Bank Act of 
1945, as amended, $683,000,000 to remain available until September 30, 
2001: Provided, That such costs, including the cost of modifying such 
loans, shall be as defined in section 502 of the Congressional Budget 
Act of 1974: Provided further, That such sums shall remain available 
until 2013 for the disbursement of direct loans, loan guarantees, 
insurance and tied-aid grants obligated in fiscal years 1998 and 1999: 
Provided further, That up to $50,000,000 of funds appropriated by this 
paragraph shall remain available until expended and may be used for 
tied-aid grant purposes: Provided further, That none of the funds 
appropriated by this Act or any prior Act appropriating funds for 
foreign operations, export financing, or related programs for tied-aid 
credits

[[Page 111 STAT. 2387]]

or grants may be used for any other purpose except through the regular 
notification procedures of the Committees on Appropriations: Provided 
further, That funds appropriated by this paragraph are made available 
notwithstanding section 2(b)(2) of the Export-Import Bank Act of 1945, 
in connection with the purchase or lease of any product by any East 
 European country, any Baltic State, or any agency or national thereof.

    For administrative expenses to carry out the direct and guaranteed 
loan and insurance programs (to be computed on an accrual basis), 
including hire of passenger motor vehicles and services as authorized by 
5 U.S.C. 3109, and not to exceed $20,000 for official reception and 
representation expenses for members of the Board of Directors, 
$48,614,000: Provided, That necessary expenses (including special 
services performed on a contract or fee basis, but not including other 
personal services) in connection with the collection of moneys owed the 
Export-Import Bank, repossession or sale of pledged collateral or other 
assets acquired by the Export-Import Bank in satisfaction of moneys owed 
the Export-Import Bank, or the investigation or appraisal of any 
property, or the evaluation of the legal or technical aspects of any 
transaction for which an application for a loan, guarantee or insurance 
commitment has been made, shall be considered nonadministrative expenses 
for the purposes of this <<NOTE: Termination date. 12 USC 635a 
note. overseas private investment corporation noncredit account>>  
heading: Provided further, That, notwithstanding subsection (b) of 
section 117 of the Export Enhancement Act of 1992, subsection (a) 
          thereof shall remain in effect until October 1, 1998.

    The Overseas Private Investment Corporation is authorized to make, 
without regard to fiscal year limitations, as provided by 31 U.S.C. 
9104, such expenditures and commitments within the limits of funds 
available to it and in accordance with law as may be necessary: 
Provided, That the amount available for administrative expenses to carry 
out the credit and insurance programs (including an amount for official 
reception and representation expenses which shall not exceed $35,000) 
shall not exceed $32,000,000: Provided further, That project-specific 
transaction costs, including direct and indirect costs incurred in 
claims settlements, and other direct costs associated with services 
provided to specific investors or potential investors pursuant to 
section 234 of the Foreign Assistance Act of 1961, shall not be 
  considered administrative expenses for the purposes of this heading.

    For the cost of direct and guaranteed loans, $60,000,000, as 
authorized by section 234 of the Foreign Assistance Act of 1961 to be 
derived by transfer from the Overseas Private Investment Corporation 
Noncredit Account: Provided, That such costs, including the cost of 
modifying such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974: Provided further, That such sums shall 
be available for direct loan obligations and loan guaranty commitments 
incurred or made during fiscal years

[[Page 111 STAT. 2388]]

1998 and 1999: Provided further, That such sums shall remain available 
through fiscal year 2006 for the disbursement of direct and guaranteed 
loans obligated in fiscal year 1998, and through fiscal year 2007 for 
the disbursement of direct and guaranteed loans obligated in fiscal year 
1999: Provided further, That in addition, such sums as may be necessary 
for administrative expenses to carry out the credit program may be 
derived from amounts available for administrative expenses to carry out 
the credit and insurance programs in the Overseas Private Investment 
Corporation Noncredit Account and merged with said account.

                   Funds Appropriated to the President

    For necessary expenses to carry out the provisions of section 661 of 
the Foreign Assistance Act of 1961, $41,500,000, to remain available 
until September 30, 1999: Provided, That the Trade and Development 
Agency may receive reimbursements from corporations and other entities 
for the costs of grants for feasibility studies and other project 
planning services, to be deposited as an offsetting collection to this 
account and to be available for obligation until September 30, 1999, for 
necessary expenses under this paragraph: Provided further, That such 
reimbursements shall not cover, or be allocated against, direct or 
indirect administrative costs of the agency.

                 TITLE II--BILATERAL ECONOMIC ASSISTANCE

                   Funds Appropriated to the President

    For expenses necessary to enable the President to carry out the 
provisions of the Foreign Assistance Act of 1961, and for other 
purposes, to remain available until September 30, 1998, unless otherwise 
                      specified herein, as follows:

    For necessary expenses to carry out the provisions of chapters 1 and 
10 of part I of the Foreign Assistance Act of 1961, for child survival, 
basic education, assistance to combat tropical and other diseases, and 
related activities, in addition to funds otherwise available for such 
purposes, $650,000,000, to remain available until expended: Provided, 
That this amount shall be made available for such activities as: (1) 
immunization programs; (2) oral rehydration programs; (3) health and 
nutrition programs, and related education programs, which address the 
needs of mothers and children; (4) water and sanitation programs; (5) 
assistance for displaced and orphaned children; (6) programs for the 
prevention, treatment, and control of, and research on, tuberculosis, 
HIV/AIDS, polio, malaria and other diseases; (7) up to $98,000,000 for 
basic education programs for children; and (8) a contribution on a grant 
basis to the United Nations Children's Fund (UNICEF) pursuant to section 
301 of the Foreign Assistance Act of 1961.

[[Page 111 STAT. 2389]]

    For necessary expenses to carry out the provisions of sections 103 
through 106 and chapter 10 of part I of the Foreign Assistance Act of 
1961, title V of the International Security and Development Cooperation 
Act of 1980 (Public Law 96-533) and the provisions of section 401 of the 
Foreign Assistance Act of 1969, $1,210,000,000, to remain available 
until September 30, 1999: Provided, That of the amount appropriated 
under this heading, up to $22,000,000 may be made available for the 
Inter-American Foundation and shall be apportioned directly to that 
agency: Provided further, That of the amount appropriated under this 
heading, up to $14,000,000 may be made available for the African 
Development Foundation and shall be apportioned directly to that agency: 
Provided further, That none of the funds made available in this Act nor 
any unobligated balances from prior appropriations may be made available 
to any organization or program which, as determined by the President of 
the United States, supports or participates in the management of a 
program of coercive abortion or involuntary sterilization: Provided 
further, That none of the funds made available under this heading may be 
used to pay for the performance of abortion as a method of family 
planning or to motivate or coerce any person to practice abortions; and 
that in order to reduce reliance on abortion in developing nations, 
funds shall be available only to voluntary family planning projects 
which offer, either directly or through referral to, or information 
about access to, a broad range of family planning methods and services: 
Provided further, That in awarding grants for natural family planning 
under section 104 of the Foreign Assistance Act of 1961 no applicant 
shall be discriminated against because of such applicant's religious or 
conscientious commitment to offer only natural family planning; and, 
additionally, all such applicants shall comply with the requirements of 
the previous proviso: Provided further, That for purposes of this or any 
other Act authorizing or appropriating funds for foreign operations, 
export financing, and related programs, the term ``motivate'', as it 
relates to family planning assistance, shall not be construed to 
prohibit the provision, consistent with local law, of information or 
counseling about all pregnancy options: Provided further, That nothing 
in this paragraph shall be construed to alter any existing statutory 
prohibitions against abortion under section 104 of the Foreign 
Assistance Act of 1961: Provided further, That, notwithstanding section 
109 of the Foreign Assistance Act of 1961, of the funds appropriated 
under this heading in this Act, and of the unobligated balances of funds 
previously appropriated under this heading, not to exceed $2,500,000 
shall be transferred to ``International Organizations and Programs'' for 
a contribution to the International Fund for Agricultural Development 
(IFAD), and that any such transfer of funds shall be subject to the 
regular notification procedures of the Committees on Appropriations: 
Provided further, That of the funds appropriated under this heading that 
are made available for assistance programs for displaced and orphaned 
children and victims of war, not to exceed $25,000, in addition to funds 
otherwise available for such purposes, may be used to monitor and 
provide oversight of such programs: Provided further, That

[[Page 111 STAT. 2390]]

none of the funds made available under this heading may be used for any 
activity which is in contravention to the Convention on International 
         Trade in Endangered Species of Flora and Fauna (CITES).

    None <<NOTE: 22 USC 2151u note.>>  of the funds appropriated or 
otherwise made available by this Act for development assistance may be 
made available to any United States private and voluntary organization, 
except any cooperative development organization, which obtains less than 
20 percent of its total annual funding for international activities from 
sources other than the United States Government: Provided, That the 
requirements of the provisions of section 123(g) of the Foreign 
Assistance Act of 1961 and the provisions on private and voluntary 
organizations in title II of the Foreign Assistance and Related Programs 
Appropriations Act, 1985 (as enacted in Public Law 98-473) shall be 
superseded by the provisions of this section, except that the authority 
contained in the last sentence of section 123(g) may be exercised by the 
Administrator with regard to the requirements of this paragraph.

    Funds appropriated or otherwise made available under title II of 
this Act should be made available to private and voluntary organizations 
at a level which is at least equivalent to the level provided in fiscal 
year 1995. Such private and voluntary organizations shall include those 
which operate on a not-for-profit basis, receive contributions from 
private sources, receive voluntary support from the public and are 
deemed to be among the most cost-effective and successful providers of 
                         development assistance.

    Of the funds appropriated under the headings ``Development 
Assistance'' and ``Economic Support Fund'', not less than $15,000,000 
shall be made available for Cyprus to be used only for scholarships, 
administrative support of the scholarship program, bicommunal projects, 
and measures aimed at reunification of the island and designed to reduce 
tensions and promote peace and cooperation between the two communities 
                               on Cyprus.

    Of the funds appropriated under the headings ``Development 
Assistance'' and ``Economic Support Fund'', not less than $5,000,000 
shall be made available to support activities in Burma, along the Burma-
Thailand border, and for activities of Burmese student groups and other 
organizations located outside Burma: Provided, That funds made available 
for Burma related activities under this heading may be made available 
notwithstanding any other provision of law: Provided further, That 
provision of such funds shall be made available subject to the regular 
      notification procedures of the Committees on Appropriations.

    None of the funds appropriated in this Act may be made available for 
the Government of Cambodia: Provided, That the restrictions under this 
heading shall not apply to humanitarian, demining or election-related 
programs or activities: Provided further, That

[[Page 111 STAT. 2391]]

such funds shall be subject to the regular notification procedures of 
the Committees on <<NOTE: President. Reports. INTERNATIONAL DISASTER 
ASSISTANCE>>  Appropriations: Provided further, That 30 days after 
enactment of this Act, the President shall report to the Committees on 
Appropriations on the results of the FBI investigation into the bombing 
                 attack in Phnom Penh on March 30, 1997.

    For necessary expenses for international disaster relief, 
rehabilitation, and reconstruction assistance pursuant to section 491 of 
the Foreign Assistance Act of 1961, as amended, $190,000,000, to remain 
                        available until expended.

    For the cost, as defined in section 502 of the Congressional Budget 
Act of 1974, of modifying direct loans and loan guarantees, as the 
President may determine, for which funds have been appropriated or 
otherwise made available for programs within the International Affairs 
Budget Function 150, including the cost of selling, reducing, or 
canceling amounts, through debt buybacks and swaps, owed to the United 
States as a result of concessional loans made to eligible Latin American 
and Caribbean countries, pursuant to part IV of the Foreign Assistance 
Act of 1961; of modifying concessional loans extended to least developed 
countries, as authorized under section 411 of the Agricultural Trade 
Development and Assistance Act of 1954, as amended; and of modifying any 
obligation, or portion of such obligation for Latin American countries 
to pay for purchases of United States agricultural commodities 
guaranteed by the Commodity Credit Corporation under export credit 
guarantee programs authorized pursuant to section 5(f ) of the Commodity 
Credit Corporation Charter Act of June 29, 1948, as amended, section 
4(b) of the Food for Peace Act of 1966, as amended (Public Law 89-808), 
or section 202 of the Agricultural Trade Act of 1978, as amended (Public 
Law 95-501); $27,000,000, to remain available until expended: Provided, 
That not to exceed $1,500,000 of such funds may be used for 
implementation of improvements in the foreign credit reporting system of 
                      the United States Government.

    For the cost of direct loans and loan guarantees, $1,500,000, as 
authorized by section 108 of the Foreign Assistance Act of 1961, as 
amended: Provided, That such costs shall be as defined in section 502 of 
the Congressional Budget Act of 1974: Provided further, That guarantees 
of loans made under this heading in support of microenterprise 
activities may guarantee up to 70 percent of the principal amount of any 
such loans notwithstanding section 108 of the Foreign Assistance Act of 
1961. In addition, for administrative expenses to carry out programs 
under this heading, $500,000, all of which may be transferred to and 
merged with the appropriation for Operating Expenses of the Agency for 
International Development: Provided further, That funds made available 
under this heading shall remain available until September 30, 1999.

[[Page 111 STAT. 2392]]

    For the cost, as defined in section 502 of the Congressional Budget 
Act of 1974, of guaranteed loans authorized by sections 221 and 222 of 
the Foreign Assistance Act of 1961, including the cost of guaranteed 
loans designed to promote the urban and environmental policies and 
objectives of part I of such Act, $3,000,000, to remain available until 
September 30, 1999: Provided, That these funds are available to 
subsidize loan principal, 100 percent of which shall be guaranteed, 
pursuant to the authority of such sections. In addition, for 
administrative expenses to carry out guaranteed loan programs, 
$6,000,000, all of which may be transferred to and merged with the 
appropriation for Operating Expenses of the Agency for International 
Development: Provided further, That commitments to guarantee loans under 
this heading may be entered into notwithstanding the second and third 
sentences of section 222(a) and, with regard to programs for Central and 
Eastern Europe and programs for the benefit of South Africans 
disadvantaged by apartheid, section 223( j) of the Foreign Assistance 
                              Act of 1961.

    For payment to the ``Foreign Service Retirement and Disability 
 Fund'', as authorized by the Foreign Service Act of 1980, $44,208,000.

    For necessary expenses to carry out the provisions of section 667, 
$473,000,000: Provided, That none of the funds appropriated by this Act 
for programs administered by the Agency for International Development 
may be used to finance printing costs of any report or study (except 
feasibility, design, or evaluation reports or studies) in excess of 
$25,000 without the approval of the Administrator of the Agency or the 
                        Administrator's designee.

    For necessary expenses to carry out the provisions of section 667, 
$29,047,000, to remain available until September 30, 1999, which sum 
shall be available for the Office of the Inspector General of the Agency 
for International Development.

                   Other Bilateral Economic Assistance

    For necessary expenses to carry out the provisions of chapter 4 of 
part II, $2,400,000,000, to remain available until September 30, 1999: 
Provided, That of the funds appropriated under this heading, not less 
than $1,200,000,000 shall be available only for Israel, which sum shall 
be available on a grant basis as a cash transfer and shall be disbursed 
within 30 days of enactment of this Act or by October 31, 1997, 
whichever is later: Provided further, That not less than $815,000,000 
shall be available only for Egypt, which sum shall be provided on a 
grant basis, and of which sum

[[Page 111 STAT. 2393]]

cash transfer assistance may be provided, with the understanding that 
Egypt will undertake significant economic reforms which are additional 
to those which were undertaken in previous fiscal years: Provided 
further, That <<NOTE: President. international fund for ireland>>  in 
exercising the authority to provide cash transfer assistance for Israel, 
the President shall ensure that the level of such assistance does not 
cause an adverse impact on the total level of nonmilitary exports from 
the United States to such country: Provided further, That of the funds 
appropriated under this heading, not less than $150,000,000 shall be 
made available for Jordan: Provided further, That of the funds made 
available under this heading in previous Acts making appropriations for 
foreign operations, export financing, and related programs, 
notwithstanding any provision in any such heading in such previous Acts, 
up to $116,000,000 may be allocated or made available for programs and 
activities under this heading including the Middle East Peace and 
Stability Fund: Provided further, That in carrying out the previous 
proviso, the President should seek to ensure to the extent feasible that 
not more than 1 percent of the amount specified in section 586 of this 
Act should be derived from funds that would otherwise be made available 
for any single country: Provided further, That funds provided for the 
Middle East Peace and Stability Fund by a country in the region under 
the authority of section 635(d) of the Foreign Assistance Act of 1961, 
and funds made available for Jordan following the date of enactment of 
this Act from previous Acts making appropriations for foreign 
operations, export financing, and related programs, shall count toward 
meeting the earmark contained in the fourth proviso under this heading: 
Provided further, That up to $10,000,000 of funds under this heading in 
previous foreign operations, export financing, and related programs 
appropriations Acts that were reprogrammed for Jordan during fiscal year 
1997 shall also count toward such earmark: Provided further, That, in 
order to facilitate the implementation of the fourth proviso under this 
heading, the requirement of section 515 of this Act or any similar 
provision of law shall not apply to the making available of funds 
appropriated for a fiscal year for programs, projects, or activities 
that were justified for another fiscal year: Provided further, That for 
fiscal year 1998 such portions of the notification required under 
section 653 of the Foreign Assistance Act of 1961 that relate to the 
Middle East may be submitted to the Congress as soon as practicable, but 
no later than March 1, 1998: Provided further, That during fiscal year 
1998, of the local currencies generated from funds made available under 
this heading for Guatemala by this Act and prior appropriations Acts, 
the United States and Guatemala may jointly program the Guatemala 
quetzales equivalent of a total of up to $10,000,000 for the purpose of 
retiring the debt owed by universities in Guatemala to the Inter-
                       American Development Bank.

    For necessary expenses to carry out the provisions of chapter 4 of 
part II of the Foreign Assistance Act of 1961, $19,600,000, which shall 
be available for the United States contribution to the International 
Fund for Ireland and shall be made available in accordance with the 
provisions of the Anglo-Irish Agreement Support Act of 1986 (Public Law 
99-415): Provided, That such amount shall be expended at the minimum 
rate necessary to make timely payment for projects and activities: 
Provided further, That funds

[[Page 111 STAT. 2394]]

made available under this heading shall remain available until September 
                                30, 1999.

    (a) For necessary expenses to carry out the provisions of the 
Foreign Assistance Act of 1961 and the Support for East European 
Democracy (SEED) Act of 1989, $485,000,000, to remain available until 
September 30, 1999, which shall be available, notwithstanding any other 
provision of law, for economic assistance and for related programs for 
Eastern Europe and the Baltic States.
    (b) Funds appropriated under this heading or in prior appropriations 
Acts that are or have been made available for an Enterprise Fund may be 
deposited by such Fund in interest-bearing accounts prior to the Fund's 
disbursement of such funds for program purposes. The Fund may retain for 
such program purposes any interest earned on such deposits without 
returning such interest to the Treasury of the United States and without 
further appropriation by the Congress. Funds made available for 
Enterprise Funds shall be expended at the minimum rate necessary to make 
timely payment for projects and activities.
    (c) Funds appropriated under this heading shall be considered to be 
economic assistance under the Foreign Assistance Act of 1961 for 
purposes of making available the administrative authorities contained in 
that Act for the use of economic assistance.
    (d) None of the funds appropriated under this heading may be made 
available for new housing construction or repair or reconstruction of 
existing housing in Bosnia and Herzegovina unless directly related to 
the efforts of United States troops to promote peace in said country.
    (e) With regard to funds appropriated or otherwise made available 
under this heading for the economic revitalization program in Bosnia and 
Herzegovina, and local currencies generated by such funds (including the 
conversion of funds appropriated under this heading into currency used 
by Bosnia and Herzegovina as local currency and local currency returned 
or repaid under such program)--
            (1) the Administrator of the Agency for International 
        Development shall provide written approval for grants and loans 
        prior to the obligation and expenditure of funds for such 
        purposes, and prior to the use of funds that have been returned 
        or repaid to any lending facility or grantee; and
            (2) the <<NOTE: Applicability.>>  provisions of section 532 
        of this Act shall apply.

    (f ) The President is authorized to withhold funds appropriated 
under this heading made available for economic revitalization programs 
in Bosnia and Herzegovina, if he determines and certifies to the 
Committees on Appropriations that the Federation of Bosnia and 
Herzegovina has not complied with article III of annex 1-A of the 
General Framework Agreement for Peace in Bosnia and Herzegovina 
concerning the withdrawal of foreign forces, and that intelligence 
cooperation on training, investigations, and related activities between 
Iranian officials and Bosnian officials has not been terminated.
    (g) Not to exceed $200,000,000 of the funds appropriated under this 
heading may be made available for Bosnia and Herzegovina exclusive of 
assistance for police training.
    (h) Not to exceed $7,000,000 of the funds made available for Bosnia 
and Herzegovina may be made available for the cost, as

[[Page 111 STAT. 2395]]

defined in section 502 of the Congressional Budget Act of 1974, of 
      modifying direct loans and loan guarantees for said country.

    (a) For necessary expenses to carry out the provisions of chapter 11 
of part I of the Foreign Assistance Act of 1961 and the FREEDOM Support 
Act, for assistance for the new independent states of the former Soviet 
Union and for related programs, $770,000,000, to remain available until 
September <<NOTE: Applicability.>>  30, 1999: Provided, That the 
provisions of such chapter shall apply to funds appropriated by this 
paragraph.

    (b) None of the funds appropriated under this heading shall be made 
available to the Government of Russia--
            (1) unless that government is making progress in 
        implementing comprehensive economic reforms based on market 
        principles, private ownership, negotiating repayment of 
        commercial debt, respect for commercial contracts, and equitable 
        treatment of foreign private investment;
            (2) if that government applies or transfers United States 
        assistance to any entity for the purpose of expropriating or 
        seizing ownership or control of assets, investments, or 
        ventures; and
            (3) funds may be furnished without regard to this subsection 
        if the President determines that to do so is in the national 
        interest.

    (c) None <<NOTE: 22 USC 5814 note.>>  of the funds appropriated 
under this heading shall be made available to any government of the new 
independent states of the former Soviet Union if that government directs 
any action in violation of the territorial integrity or national 
sovereignty of any other new independent state, such as those violations 
included in the Helsinki Final Act: Provided, That such funds may be 
made available without regard to the restriction in this subsection if 
the President determines that to do so is in the national security 
interest of the United States: Provided further, That the restriction of 
this subsection shall not apply to the use of such funds for the 
provision of assistance for purposes of humanitarian and refugee relief.

    (d) None of the funds appropriated under this heading for the new 
independent states of the former Soviet Union shall be made available 
for any state to enhance its military capability: Provided, That this 
restriction does not apply to demilitarization, demining, or 
nonproliferation programs.
    (e) Funds appropriated under this heading shall be subject to the 
regular notification procedures of the Committees on Appropriations.
    (f ) Funds made available in this Act for assistance to the new 
independent states of the former Soviet Union shall be subject to the 
provisions of section 117 (relating to environment and natural 
resources) of the Foreign Assistance Act of 1961.
    (g) Funds appropriated under title II of this Act, including funds 
appropriated under this heading, may be made available for assistance 
for Mongolia: Provided, That funds made available for assistance for 
Mongolia may be made available in accordance with the purposes and 
utilizing the authorities provided in chapter 11 of part I of the 
Foreign Assistance Act of 1961.

[[Page 111 STAT. 2396]]

    (h) In issuing new task orders, entering into contracts, or making 
grants, with funds appropriated under this heading or in prior 
appropriations Acts, for projects or activities that have as one of 
their primary purposes the fostering of private sector development, the 
Coordinator for United States Assistance to the New Independent States 
and the implementing agency shall encourage the participation of and 
give significant weight to contractors and grantees who propose 
investing a significant amount of their own resources (including 
volunteer services and in-kind contributions) in such projects and 
activities.
    (i) Funds appropriated under this heading or in prior appropriations 
Acts that are or have been made available for an Enterprise Fund may be 
deposited by such Fund in interest-bearing accounts prior to the 
disbursement of such funds by the Fund for program purposes. The Fund 
may retain for such program proposes any interest earned on such 
deposits without returning such interest to the Treasury of the United 
States and without further appropriation by the Congress. Funds made 
available for Enterprise Funds shall be expended at the minimum rate 
necessary to make timely payment for projects and activities.
    ( j)(1) Of the funds appropriated under this heading that are 
allocated for assistance for the Government of Russia, 50 percent shall 
be withheld from obligation until the President determines and certifies 
in writing to the Committees on Appropriations that the Government of 
Russia has terminated implementation of arrangements to provide Iran 
with technical expertise, training, technology, or equipment necessary 
to develop a nuclear reactor, related nuclear research facilities or 
programs, or ballistic missile capability.
    (2) Notwithstanding paragraph (1) assistance may be provided for the 
Government of Russia if the President determines and certifies to the 
Committees on Appropriations that making such funds available: (A) is 
vital to the national security interest of the United States; and (B) 
that the Government of Russia is taking meaningful steps to limit major 
supply contracts and to curtail the transfer of technology and 
technological expertise related to activities referred to in paragraph 
(1).
    (k) Of the funds appropriated under this heading, not less than 
$225,000,000 shall be made available for Ukraine, which sum shall be 
provided with the understanding that Ukraine will undertake significant 
economic reforms which are additional to those which were undertaken in 
the previous fiscal year: Provided, That 50 percent of the amount made 
available in this subsection, exclusive of funds made available for 
election related initiatives and nuclear reactor safety activities, 
shall be withheld from obligation and expenditure until the Secretary of 
State determines and certifies no later than April 30, 1998, that the 
Government of Ukraine has made significant progress toward resolving 
complaints made by United States investors to the United States embassy 
prior to April 30, 1997: Provided further, That funds made available 
under this subsection, and funds appropriated for Ukraine in the Foreign 
Operations, Export Financing, and Related Programs Appropriations Act, 
1997 as contained in Public Law 104-208 shall be made available to 
complete the preparation of safety analysis reports at each nuclear 
reactor in Ukraine over the next three years.

[[Page 111 STAT. 2397]]

    (l) Of the funds appropriated under this heading, not less than 
$250,000,000 shall be made available for assistance for the Southern 
Caucasus region: Provided, That of the funds provided under this 
subsection 37 percent shall be made available for Georgia and 35 percent 
shall be made available for Armenia: Provided further, That of the funds 
made available for the Southern Caucasus region, 28 percent should be 
used for reconstruction and remedial activities relating to the 
consequences of conflicts within the region, especially those in the 
vicinity of Abkhazia and Nagorno-Karabakh: Provided further, 
That <<NOTE: Reports.>>  if the Secretary of State after May 30, 1998, 
determines and reports to the relevant committees of Congress that the 
full amount of reconstruction and remedial funds that may be made 
available under the previous proviso cannot be effectively utilized, up 
to 62.5 percent of the amount provided under the previous proviso for 
reconstruction and remediation may be used for other purposes under this 
heading.

    (m) Funds provided under the previous subsection shall be made 
available for humanitarian assistance for refugees, displaced persons, 
and needy civilians affected by the conflicts in the Southern Caucasus 
region, including those in the vicinity of Abkhazia and Nagorno-
Karabakh, notwithstanding any other provision of this or any other Act.
    (n) Funds made available under this Act or any other Act may not be 
provided for assistance to the Government of Azerbaijan until the 
President determines, and so reports to the Congress, that the 
Government of Azerbaijan is taking demonstrable steps to cease all 
blockades against Armenia and Nagorno-Karabakh: Provided, That the 
restriction of this subsection and section 907 of the FREEDOM Support 
Act shall not apply to--
            (1) activities to support democracy or assistance under 
        title V of the FREEDOM Support Act and section 1424 of Public 
        Law 104-201;
            (2) any assistance provided by the Trade and Development 
        Agency under section 661 of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2421); and
            (3) any activity carried out by a member of the United 
        States and Foreign Commercial Service while acting within his or 
        her official capacity.

    (o) None of the funds appropriated under this heading or in prior 
appropriations legislation may be made available to establish a joint 
public-private entity or organization engaged in the management of 
activities or projects supported by the Defense Enterprise Fund.

                           Independent Agency

    For expenses necessary to carry out the provisions of the Peace 
Corps Act (75 Stat. 612), $222,000,000, including the purchase of not to 
exceed five passenger motor vehicles for administrative purposes for use 
outside of the United <<NOTE: Abortion.>>  States: Provided, That none 
of the funds appropriated under this heading shall be used to pay for 
abortions: Provided further, That funds appropriated under this heading 
shall remain available until September 30, 1999.

[[Page 111 STAT. 2398]]

                           Department of State

    For necessary expenses to carry out section 481 of the Foreign 
Assistance Act of 1961, $215,000,000: Provided, That during fiscal year 
1998, the Department of State may also use the authority of section 608 
of the Act, without regard to its restrictions, to receive non-lethal 
excess property from an agency of the United States Government for the 
purpose of providing it to a foreign country under chapter 8 of part I 
of that Act subject to the regular notification procedures of the 
Committees on Appropriations: Provided further, 
That <<NOTE: Reports. Narcotics Interdiction>>  not later than 60 days 
after the date of enactment of this Act, the Secretary of State in 
consultation with the Director of the Office of National Drug Control 
Policy shall submit a report to the Committees on Appropriations 
containing: (1) a list of all countries in which the United States 
carries out international counter-narcotics activities; (2) the number, 
mission and agency affiliation of United States personnel assigned to 
each such country; and (3) all costs and expenses obligated for each 
program, project or activity by each United States agency in each 
country: Provided further, That of the amount made available under this 
heading not to exceed $5,000,000 shall be allocated to operate the 
Western Hemisphere International Law Enforcement Academy: Provided 
further, That 10 percent of the funds appropriated under this heading 
shall not be available for obligation until the Secretary of State 
submits a report to the Committees on Appropriations providing a 
financial plan for the funds appropriated under this heading and under 
                 the heading ``Narcotics Interdiction''.

    For necessary expenses to carry out the provisions of section 481 of 
the Foreign Assistance Act of 1961, $15,000,000, to remain available 
until expended, in addition to amounts otherwise available for such 
purposes, which shall be available for assistance, including 
procurement, for support of air drug interdiction and eradication and 
other related purposes: Provided, That funds appropriated under this 
heading shall be made available subject to the regular notification 
             procedures of the Committees on Appropriations.

    For expenses, not otherwise provided for, necessary to enable the 
Secretary of State to provide, as authorized by law, a contribution to 
the International Committee of the Red Cross, assistance to refugees, 
including contributions to the International Organization for Migration 
and the United Nations High Commissioner for Refugees, and other 
activities to meet refugee and migration needs; salaries and expenses of 
personnel and dependents as authorized by the Foreign Service Act of 
1980; allowances as authorized by sections 5921 through 5925 of title 5, 
United States Code; purchase and hire of passenger motor vehicles; and 
services as authorized by section 3109 of title 5, United States Code, 
$650,000,000: Provided, That not more than $12,000,000 shall be 
available for administrative expenses: Provided further, That not less 
than $80,000,000 shall be made available for refugees from

[[Page 111 STAT. 2399]]

the former Soviet Union and Eastern Europe and other refugees resettling 
                               in Israel.

    For necessary expenses for the targeted assistance program 
authorized by title IV of the Immigration and Nationality Act and 
section 501 of the Refugee Education Assistance Act of 1980 and 
administered by the Office of Refugee Resettlement of the Department of 
Health and Human Services, in addition to amounts otherwise available 
                     for such purposes, $5,000,000.

    For necessary expenses to carry out the provisions of section 2(c) 
of the Migration and Refugee Assistance Act of 1962, as amended (22 
U.S.C. 260(c)), $50,000,000, to remain available until expended: 
Provided, That the funds made available under this heading are 
appropriated notwithstanding the provisions contained in section 2(c)(2) 
of the Migration and Refugee Assistance Act of 1962 which would limit 
    the amount of funds which could be appropriated for this purpose.

    For necessary expenses for nonproliferation, anti-terrorism and 
related programs and activities, $133,000,000, to carry out the 
provisions of chapter 8 of part II of the Foreign Assistance Act of 1961 
for anti-terrorism assistance, section 504 of the FREEDOM Support Act 
for the Nonproliferation and Disarmament Fund, section 23 of the Arms 
Export Control Act or the Foreign Assistance Act of 1961 for demining, 
the clearance of unexploded ordnance, and related activities, 
notwithstanding any other provision of law, including activities 
implemented through nongovernmental and international organizations, 
section 301 of the Foreign Assistance Act of 1961 for a voluntary 
contribution to the International Atomic Energy Agency (IAEA) and a 
voluntary contribution to the Korean Peninsula Energy Development 
Organization (KEDO): Provided, That of this amount not to exceed 
$15,000,000, to remain available until expended, may be made available 
for the Nonproliferation and Disarmament Fund, notwithstanding any other 
provision of law, to promote bilateral and multilateral activities 
relating to nonproliferation and disarmament: Provided further, That 
such funds may also be used for such countries other than the new 
independent states of the former Soviet Union and international 
organizations when it is in the national security interest of the United 
States to do so: Provided further, That such funds shall be subject to 
the regular notification procedures of the Committees on Appropriations: 
Provided further, That funds appropriated under this heading may be made 
available for the International Atomic Energy Agency only if the 
Secretary of State determines (and so reports to the Congress) that 
Israel is not being denied its right to participate in the activities of 
that Agency: Provided further, That not to exceed $30,000,000 may be 
made available to the Korean Peninsula Energy Development Organization 
(KEDO) only for the administrative expenses and heavy fuel oil costs 
associated

[[Page 111 STAT. 2400]]

with the Agreed Framework: Provided 
further, <<NOTE: President. Certification. Reports.>> That such funds 
may be obligated to KEDO only if, 30 days prior to such obligation of 
funds, the President certifies and so reports to Congress that: (1)(A) 
the parties to the Agreed Framework are taking steps to assure that 
progress is made on the implementation of the January 1, 1992, Joint 
Declaration on the Denuclearization of the Korean Peninsula and the 
implementation of the North-South dialogue, and (B) North Korea is 
complying with the other provisions of the Agreed Framework between 
North Korea and the United States and with the Confidential Minute; (2) 
North Korea is cooperating fully in the canning and safe storage of all 
spent fuel from its graphite-moderated nuclear reactors and that such 
canning and safe storage is scheduled to be completed by April 1, 1998; 
and (3) North Korea has not significantly diverted assistance provided 
by the United States for purposes for which it was not intended: 
Provided further, That the President may waive the certification 
requirements of the preceding proviso if the President determines that 
it is vital to the national security interests of the United States: 
Provided further, That no funds may be obligated for KEDO until 30 
calendar days after submission to Congress of the waiver permitted under 
the preceding proviso: Provided further, That the obligation of any 
funds for KEDO shall be subject to the regular notification procedures 
of the Committees on Appropriations: Provided further, That 
the <<NOTE: Reports.>>  Secretary of State shall submit to the 
appropriate congressional committees an annual report (to be submitted 
with the annual presentation for appropriations) providing a full and 
detailed accounting of the fiscal year request for the United States 
contribution to KEDO, the expected operating budget of KEDO, to include 
unpaid debt, proposed annual costs associated with heavy fuel oil 
purchases, and the amount of funds pledged by other donor nations and 
organizations to support KEDO activities on a per country basis, and 
other related activities: Provided further, That of the funds made 
available under this heading, up to $10,000,000 may be made available to 
KEDO, in addition to funds otherwise made available under this heading 
for KEDO, if the Secretary of State certifies and reports to the 
Committees on Appropriations that, except for the funds made available 
under this proviso, funds sufficient to cover all outstanding debts owed 
by KEDO for heavy fuel oil have been provided to KEDO by donors other 
than the United States.

                     TITLE III--MILITARY ASSISTANCE

                   Funds Appropriated to the President

    For necessary expenses to carry out the provisions of section 541 of 
the Foreign Assistance Act of 1961, $50,000,000: Provided, That the 
civilian personnel for whom military education and training may be 
provided under this heading may include civilians who are not members of 
a government whose participation would contribute to improved civil-
military relations, civilian control of the military, or respect for 
human rights: Provided further, That funds appropriated under this 
heading for grant financed military education and training for Indonesia 
and Guatemala may only be available for expanded international military 
education and training and funds made available for Guatemala may only 
be

[[Page 111 STAT. 2401]]

provided through the regular notification procedures of the Committees 
on Appropriations: Provided further, That none of the funds appropriated 
under this heading may be made available to support grant financed 
military education and training at the School of the Americas unless: 
(1) the <<NOTE: Certification.>>  Secretary of Defense certifies that 
the instruction and training provided by the School of the Americas is 
fully consistent with training and doctrine, particularly with respect 
to the observance of human rights, provided by the Department of Defense 
to United States military students at Department of Defense institutions 
whose primary purpose is to train United States military personnel; (2) 
the <<NOTE: Certification.>>  Secretary of Defense certifies that the 
Secretary of State, in consultation with the Secretary of Defense, has 
developed and issued specific guidelines governing the selection and 
screening of candidates for instruction at the School of the Americas; 
and (3) the <<NOTE: Reports. foreign military financing program>>  
Secretary of Defense submits to the Committees on Appropriations a 
report detailing the training activities of the School of the Americas 
and a general assessment regarding the performance of its graduates 
                              during 1996.

    For expenses necessary for grants to enable the President to carry 
out the provisions of section 23 of the Arms Export Control Act, 
$3,296,550,000: Provided, That of the funds appropriated under this 
heading, not less than $1,800,000,000 shall be available for grants only 
for Israel, and not less than $1,300,000,000 shall be made available for 
grants only for Egypt: Provided further, That the funds appropriated by 
this paragraph for Israel shall be disbursed within 30 days of enactment 
of this Act or by October 31, 1997, whichever is later: Provided 
further, That to the extent that the Government of Israel requests that 
funds be used for such purposes, grants made available for Israel by 
this paragraph shall, as agreed by Israel and the United States, be 
available for advanced weapons systems, of which not less than 
$475,000,000 shall be available for the procurement in Israel of defense 
articles and defense services, including research and development: 
Provided further, That of the funds appropriated by this paragraph, not 
less than $75,000,000 shall be available for assistance for Jordan: 
Provided further, That during fiscal year 1998 the President is 
authorized to, and shall, direct drawdowns of defense articles from the 
stocks of the Department of Defense, defense services of the Department 
of Defense, and military education and training of an aggregate value of 
not less than $25,000,000 under the authority of this proviso for Jordan 
for the purposes of part II of the Foreign Assistance Act of 1961, and 
any amount so directed shall count toward meeting the earmark in the 
previous proviso: Provided further, That section 506(c) of the Foreign 
Assistance Act of 1961 shall apply, and section 632(d) of the Foreign 
Assistance Act of 1961 shall not apply, to any such drawdown: Provided 
further, That of the funds appropriated by this paragraph, a total of 
$18,300,000 should be available for assistance for Estonia, Latvia, and 
Lithuania: Provided further, That none of the funds made available under 
this heading shall be available for any non-NATO country participating 
in the Partnership for Peace Program except through the regular 
notification procedures of the Committees on Appropriations: Provided 
further, That funds appropriated by this paragraph shall be nonrepayable 
notwithstanding any requirement in section 23 of the Arms Export Control 
Act: Provided further,

[[Page 111 STAT. 2402]]

That funds made available under this paragraph shall be obligated upon 
apportionment in accordance with paragraph (5)(C) of title 31, United 
States Code, section 1501(a): Provided further, That $50,000,000 of the 
funds appropriated or otherwise made available under this heading should 
be made available for the purpose of facilitating the integration of 
Poland, Hungary, and the Czech Republic into the North Atlantic Treaty 
Organization.
    For the cost, as defined in section 502 of the Congressional Budget 
Act of 1974, of direct loans authorized by section 23 of the Arms Export 
Control Act as follows: cost of direct loans, $60,000,000: Provided, 
That these funds are available to subsidize gross obligations for the 
principal amount of direct loans of not to exceed $657,000,000: Provided 
further, That the rate of interest charged on such loans shall be not 
less than the current average market yield on outstanding marketable 
obligations of the United States of comparable maturities: Provided 
further, That funds appropriated under this paragraph shall be made 
available for Greece and Turkey only on a loan basis, and the principal 
amount of direct loans for each country shall not exceed the following: 
$105,000,000 only for Greece and $150,000,000 only for Turkey.
    None of the funds made available under this heading shall be 
available to finance the procurement of defense articles, defense 
services, or design and construction services that are not sold by the 
United States Government under the Arms Export Control Act unless the 
foreign country proposing to make such procurements has first signed an 
agreement with the United States Government specifying the conditions 
under which such procurements may be financed with such funds: Provided, 
That all country and funding level increases in allocations shall be 
submitted through the regular notification procedures of section 515 of 
this Act: Provided further, That none of the funds appropriated under 
this heading shall be available for Sudan and Liberia: Provided further, 
That funds made available under this heading may be used, 
notwithstanding any other provision of law, for demining, the clearance 
of unexploded ordnance, and related activities and may include 
activities implemented through nongovernmental and international 
organizations: Provided further, That only those countries for which 
assistance was justified for the ``Foreign Military Sales Financing 
Program'' in the fiscal year 1989 congressional presentation for 
security assistance programs may utilize funds made available under this 
heading for procurement of defense articles, defense services or design 
and construction services that are not sold by the United States 
Government under the Arms Export Control Act: Provided further, That, 
subject to the regular notification procedures of the Committees on 
Appropriations, funds made available under this heading for the cost of 
direct loans may also be used to supplement the funds available under 
this heading for grants, and funds made available under this heading for 
grants may also be used to supplement the funds available under this 
heading for the cost of direct loans: Provided further, That funds 
appropriated under this heading shall be expended at the minimum rate 
necessary to make timely payment for defense articles and services: 
Provided further, That not more than $23,250,000 of the funds 
appropriated under this heading may be obligated for necessary expenses, 
including the purchase of passenger motor vehicles for replacement only 
for use outside of the United States, for the general costs of 
administering military assistance and sales: Provided further, That none 
of the funds

[[Page 111 STAT. 2403]]

under this heading shall be available for Guatemala: Provided further, 
That not more than $350,000,000 of funds realized pursuant to section 
21(e)(1)(A) of the Arms Export Control Act may be obligated for expenses 
incurred by the Department of Defense during fiscal year 1998 pursuant 
to section 43(b) of the Arms Export Control Act, except that this 
limitation may be exceeded only through the regular notification 
             procedures of the Committees on Appropriations.

    For necessary expenses to carry out the provisions of section 551 of 
the Foreign Assistance Act of 1961, $77,500,000: Provided, That none of 
the funds appropriated under this heading shall be obligated or expended 
except as provided through the regular notification procedures of the 
Committees on Appropriations.

               TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE

                   Funds Appropriated to the President

    For payment to the International Bank for Reconstruction and 
Development by the Secretary of the Treasury, for the United States 
contribution to the Global Environment Facility (GEF), $47,500,000, to 
               remain available until September 30, 1999.

    For payment to the International Development Association by the 
Secretary of the Treasury, $1,034,503,100, to remain available until 
expended, of which $234,503,100 shall be available to pay for the tenth 
replenishment: Provided, That none of the funds may be obligated or made 
available until the Secretary of the Treasury certifies to the 
Committees on Appropriations that procurement restrictions applicable to 
United States firms under the terms of the Interim Trust Fund have been 
lifted from all funds which Interim Trust Fund donors proposed to set 
aside for review of procurement restrictions at the conclusion of the 
              February 1997 IDA Deputies Meeting in Paris.

    For payment to the Inter-American Development Bank by the Secretary 
of the Treasury, for the United States share of the paid-in share 
portion of the increase in capital stock, $25,610,667, and for the 
United States share of the increase in the resources of the Fund for 
  Special Operations, $20,835,000, to remain available until expended.

    The United States Governor of the Inter-American Development Bank 
may subscribe without fiscal year limitation to the callable capital 
portion of the United States share of such capital stock in an amount 
not to exceed $1,503,718,910.

[[Page 111 STAT. 2404]]

    For payment to the Enterprise for the Americas Multilateral 
Investment Fund by the Secretary of the Treasury, for the United States 
contribution to the Fund to be administered by the Inter-American 
Development Bank, $30,000,000 to remain available until expended, which 
          shall be available for contributions previously due.

    For payment to the Asian Development Bank by the Secretary of the 
Treasury for the United States share of the paid-in portion of the 
increase in capital stock, $13,221,596, to remain available until 
                                expended.

    The United States Governor of the Asian Development Bank may 
subscribe without fiscal year limitation to the callable capital portion 
of the United States share of such capital stock in an amount not to 
                          exceed $647,858,204.

    For the United States contribution by the Secretary of the Treasury 
to the increases in resources of the Asian Development Fund, as 
authorized by the Asian Development Bank Act, as amended (Public Law 89-
369), $150,000,000, of which $50,000,000 shall be available for 
    contributions previously due, to remain available until expended.

    For the United States contribution by the Secretary of the Treasury 
to the increase in resources of the African Development Fund, 
$45,000,000, to remain available until expended and which shall be 
               available for contributions previously due.

    For payment to the European Bank for Reconstruction and Development 
by the Secretary of the Treasury, $35,778,717, for the United States 
share of the paid-in portion of the increase in capital stock, to remain 
                        available until expended.

    The United States Governor of the European Bank for Reconstruction 
and Development may subscribe without fiscal year limitation to the 
callable capital portion of the United States share of such capital 
             stock in an amount not to exceed $123,237,803.

    For payment to the North American Development Bank by the Secretary 
of the Treasury, for the United States share of the paid-in portion of 
the capital stock, $56,500,000, to remain available until expended of 
which $250,000 shall be available for contributions

[[Page 111 STAT. 2405]]

previously due: Provided, That none of the funds appropriated under this 
heading that are made available for the Community Adjustment and 
Investment Program shall be used for purposes other than those set out 
in the binational agreement establishing the Bank: Provided further, 
That of the amount appropriated under this heading, not more than 
$41,250,000 may be expended for the purchase of such capital shares in 
                            fiscal year 1998.

    The United States Governor of the North American Development Bank 
may subscribe without fiscal year limitation to the callable capital 
portion of the United States share of the capital stock of the North 
   American Development Bank in an amount not to exceed $318,750,000.

    For necessary expenses to carry out the provisions of section 301 of 
the Foreign Assistance Act of 1961, and of section 2 of the United 
Nations Environment Program Participation Act of 1973, $192,000,000: 
Provided, That none of the funds appropriated under this heading shall 
be made available for the United Nations Fund for Science and 
Technology: Provided further, That none of the funds appropriated under 
this heading that are made available to the United Nations Population 
Fund (UNFPA) shall be made available for activities in the People's 
Republic of China: Provided further, That not more than $25,000,000 of 
the funds appropriated under this heading may be made available to 
UNFPA: Provided further, That <<NOTE: Reports.>>  not more than one-half 
of this amount may be provided to UNFPA before March 1, 1998, and that 
no later than February 15, 1998, the Secretary of State shall submit a 
report to the Committees on Appropriations indicating the amount UNFPA 
is budgeting for the People's Republic of China in 1998: Provided 
further, That any amount UNFPA plans to spend in the People's Republic 
of China in 1998 shall be deducted from the amount of funds provided to 
UNFPA after March 1, 1998, pursuant to the previous provisos: Provided 
further, That with respect to any funds appropriated under this heading 
that are made available to UNFPA, UNFPA shall be required to maintain 
such funds in a separate account and not commingle them with any other 
funds: Provided further, That none of the funds appropriated under this 
heading may be made available to the Korean Peninsula Energy Development 
Organization (KEDO) or the International Atomic Energy Agency (IAEA): 
Provided further, That not less than $4,000,000 should be made available 
to the World Food Program.

                       TITLE V--GENERAL PROVISIONS

    Sec. 501. Except for the appropriations entitled ``International 
Disaster Assistance'', and ``United States Emergency Refugee and 
Migration Assistance Fund'', not more than 15 percent of any 
appropriation item made available by this Act shall be obligated during 
the last month of availability.

[[Page 111 STAT. 2406]]

    Sec. 502. Notwithstanding section 614 of the Foreign Assistance Act 
of 1961, as amended, none of the funds contained in title II of this Act 
may be used to carry out the provisions of section 209(d) of the Foreign 
                         Assistance Act of 1961.

    Sec. 503. Of the funds appropriated or made available pursuant to 
this Act, not to exceed $126,500 shall be for official residence 
expenses of the Agency for International Development during the current 
fiscal year: Provided, That appropriate steps shall be taken to assure 
that, to the maximum extent possible, United States-owned foreign 
               currencies are utilized in lieu of dollars.

    Sec. 504. Of the funds appropriated or made available pursuant to 
this Act, not to exceed $5,000 shall be for entertainment expenses of 
the Agency for International Development during the current fiscal year.

    Sec. 505. Of the funds appropriated or made available pursuant to 
this Act, not to exceed $95,000 shall be available for representation 
allowances for the Agency for International Development during the 
current fiscal year: Provided, That appropriate steps shall be taken to 
assure that, to the maximum extent possible, United States-owned foreign 
currencies are utilized in lieu of dollars: Provided further, That of 
the funds made available by this Act for general costs of administering 
military assistance and sales under the heading ``Foreign Military 
Financing Program'', not to exceed $2,000 shall be available for 
entertainment expenses and not to exceed $50,000 shall be available for 
representation allowances: Provided further, That of the funds made 
available by this Act under the heading ``International Military 
Education and Training '', not to exceed $50,000 shall be available for 
entertainment allowances: Provided further, That of the funds made 
available by this Act for the Inter-American Foundation, not to exceed 
$2,000 shall be available for entertainment and representation 
allowances: Provided further, That of the funds made available by this 
Act for the Peace Corps, not to exceed a total of $4,000 shall be 
available for entertainment expenses: Provided further, That of the 
funds made available by this Act under the heading ``Trade and 
Development Agency'', not to exceed $2,000 shall be available for 
              representation and entertainment allowances.

    Sec. 506. None of the funds appropriated or made available (other 
than funds for ``Nonproliferation, Anti-terrorism, Demining and Related 
Programs'') pursuant to this Act, for carrying out the Foreign 
Assistance Act of 1961, may be used, except for purposes of nuclear 
safety, to finance the export of nuclear equipment, fuel, or technology.

[[Page 111 STAT. 2407]]

    Sec. 507. None of the funds appropriated or otherwise made available 
pursuant to this Act shall be obligated or expended to finance directly 
any assistance or reparations to Cuba, Iraq, Libya, North Korea, Iran, 
Sudan, or Syria: Provided, That for purposes of this section, the 
prohibition on obligations or expenditures shall include direct loans, 
credits, insurance and guarantees of the Export-Import Bank or its 
                                 agents.

    Sec. 508. None of the funds appropriated or otherwise made available 
pursuant to this Act shall be obligated or expended to finance directly 
any assistance to any country whose duly elected head of government is 
deposed by military coup or decree: Provided, That assistance may be 
resumed to such country if the President determines and reports to the 
Committees on Appropriations that subsequent to the termination of 
    assistance a democratically elected government has taken office.

    Sec. 509. None of the funds made available by this Act may be 
obligated under an appropriation account to which they were not 
appropriated, except for transfers specifically provided for in this 
Act, unless the President, prior to the exercise of any authority 
contained in the Foreign Assistance Act of 1961 to transfer funds, 
consults with and provides a written policy justification to the 
Committees on Appropriations of the House of Representatives and the 
Senate: Provided, That the exercise of such authority shall be subject 
to the regular notification procedures of the Committees on 
                             Appropriations.

    Sec. 510. (a) Amounts certified pursuant to section 1311 of the 
Supplemental Appropriations Act, 1955, as having been obligated against 
appropriations heretofore made under the authority of the Foreign 
Assistance Act of 1961 for the same general purpose as any of the 
headings under title II of this Act are, if deobligated, hereby 
continued available for the same period as the respective appropriations 
under such headings or until September 30, 1998, whichever is later, and 
for the same general purpose, and for countries within the same region 
as originally obligated: Provided, That the Appropriations Committees of 
both Houses of the Congress are notified 15 days in advance of the 
reobligation of such funds in accordance with regular notification 
procedures of the Committees on Appropriations.
    (b) Obligated balances of funds appropriated to carry out section 23 
of the Arms Export Control Act as of the end of the fiscal year 
immediately preceding the current fiscal year are, if deobligated, 
hereby continued available during the current fiscal year for the same 
purpose under any authority applicable to such appropriations under this 
Act: Provided, That the authority of this subsection may not be used in 
fiscal year 1998.

[[Page 111 STAT. 2408]]

    Sec. 511. No part of any appropriation contained in this Act shall 
remain available for obligation after the expiration of the current 
fiscal year unless expressly so provided in this Act: Provided, That 
funds appropriated for the purposes of chapters 1, 8, and 11 of part I, 
section 667, and chapter 4 of part II of the Foreign Assistance Act of 
1961, as amended, and funds provided under the heading ``Assistance for 
Eastern Europe and the Baltic States'', shall remain available until 
expended if such funds are initially obligated before the expiration of 
their respective periods of availability contained in this Act: Provided 
further, That, notwithstanding any other provision of this Act, any 
funds made available for the purposes of chapter 1 of part I and chapter 
4 of part II of the Foreign Assistance Act of 1961 which are allocated 
or obligated for cash disbursements in order to address balance of 
payments or economic policy reform objectives, shall remain available 
until expended: Provided further, That the report required by section 
653(a) of the Foreign Assistance Act of 1961 shall designate for each 
country, to the extent known at the time of submission of such report, 
those funds allocated for cash disbursement for balance of payment and 
                    economic policy reform purposes.

    Sec. 512. No part of any appropriation contained in this Act shall 
be used to furnish assistance to any country which is in default during 
a period in excess of one calendar year in payment to the United States 
of principal or interest on any loan made to such country by the United 
States pursuant to a program for which funds are appropriated under this 
Act: Provided, That this section and section 620(q) of the Foreign 
Assistance Act of 1961 shall not apply to funds made available in this 
Act or during the current fiscal year for Nicaragua and Liberia, and for 
any narcotics-related assistance for Colombia, Bolivia, and Peru 
authorized by the Foreign Assistance Act of 1961 or the Arms Export 
                              Control Act.

    Sec. 513. (a) None of the funds appropriated or made available 
pursuant to this Act for direct assistance and none of the funds 
otherwise made available pursuant to this Act to the Export-Import Bank 
and the Overseas Private Investment Corporation shall be obligated or 
expended to finance any loan, any assistance or any other financial 
commitments for establishing or expanding production of any commodity 
for export by any country other than the United States, if the commodity 
is likely to be in surplus on world markets at the time the resulting 
productive capacity is expected to become operative and if the 
assistance will cause substantial injury to United States producers of 
the same, similar, or competing commodity: Provided, 
That <<NOTE: Notification.>>  such prohibition shall not apply to the 
Export-Import Bank if in the judgment of its Board of Directors the 
benefits to industry and employment in the United States are likely to 
outweigh the injury to United States producers of the same, similar, or 
competing commodity, and the Chairman of the Board so notifies the 
Committees on Appropriations.

[[Page 111 STAT. 2409]]

    (b) None of the funds appropriated by this or any other Act to carry 
out chapter 1 of part I of the Foreign Assistance Act of 1961 shall be 
available for any testing or breeding feasibility study, variety 
improvement or introduction, consultancy, publication, conference, or 
training in connection with the growth or production in a foreign 
country of an agricultural commodity for export which would compete with 
a similar commodity grown or produced in the United States: Provided, 
That this subsection shall not prohibit--
            (1) activities designed to increase food security in 
        developing countries where such activities will not have a 
        significant impact in the export of agricultural commodities of 
        the United States; or
            (2) research activities intended primarily to benefit 
                               American producers.

    Sec. 514. The <<NOTE: 22 USC 262h note. NOTIFICATION REQUIREMENTS>>  
Secretary of the Treasury shall instruct the United States Executive 
Directors of the International Bank for Reconstruction and Development, 
the International Development Association, the International Finance 
Corporation, the Inter-American Development Bank, the International 
Monetary Fund, the Asian Development Bank, the Inter-American Investment 
Corporation, the North American Development Bank, the European Bank for 
Reconstruction and Development, the African Development Bank, and the 
African Development Fund to use the voice and vote of the United States 
to oppose any assistance by these institutions, using funds appropriated 
or made available pursuant to this Act, for the production or extraction 
of any commodity or mineral for export, if it is in surplus on world 
markets and if the assistance will cause substantial injury to United 
     States producers of the same, similar, or competing commodity.

    Sec. 515. (a) For the purposes of providing the executive branch 
with the necessary administrative flexibility, none of the funds made 
available under this Act for ``Child Survival and Disease Programs 
Fund'', ``Development Assistance'', ``International organizations and 
programs'', ``Trade and Development Agency'', ``International narcotics 
control'', ``Narcotics Interdiction'', ``Assistance for Eastern Europe 
and the Baltic States'', ``Assistance for the New Independent States of 
the Former Soviet Union'', ``Economic Support Fund'', ``Peacekeeping 
operations'', ``Operating expenses of the Agency for International 
Development'', ``Operating expenses of the Agency for International 
Development Office of Inspector General'', ``Nonproliferation, anti-
terrorism, demining and related programs'', ``Foreign Military Financing 
Program'', ``International military education and training '', ``Peace 
Corps'', ``Migration and refugee assistance'', shall be available for 
obligation for activities, programs, projects, type of materiel 
assistance, countries, or other operations not justified or in excess of 
the amount justified to the Appropriations Committees for obligation 
under any of these specific headings unless the Appropriations 
Committees of both Houses of Congress are previously notified 15 days in 
advance: Provided, That the President shall not enter into any 
commitment of funds appropriated for the purposes of section 23 of the 
Arms

[[Page 111 STAT. 2410]]

Export Control Act for the provision of major defense equipment, other 
than conventional ammunition, or other major defense items defined to be 
aircraft, ships, missiles, or combat vehicles, not previously justified 
to Congress or 20 percent in excess of the quantities justified to 
Congress unless the Committees on Appropriations are notified 15 days in 
advance of such commitment: Provided further, That this section shall 
not apply to any reprogramming for an activity, program, or project 
under chapter 1 of part I of the Foreign Assistance Act of 1961 of less 
than 10 percent of the amount previously justified to the Congress for 
obligation for such activity, program, or project for the current fiscal 
year: Provided further, That the requirements of this section or any 
similar provision of this Act or any other Act, including any prior Act 
requiring notification in accordance with the regular notification 
procedures of the Committees on Appropriations, may be waived if failure 
to do so would pose a substantial risk to human health or welfare: 
Provided further, That in case of any such waiver, notification to the 
Congress, or the appropriate congressional committees, shall be provided 
as early as practicable, but in no event later than three days after 
taking the action to which such notification requirement was applicable, 
in the context of the circumstances necessitating such waiver: Provided 
further, That any notification provided pursuant to such a waiver shall 
contain an explanation of the emergency circumstances.
    (b) Drawdowns made pursuant to section 506(a)(2) of the Foreign 
Assistance Act of 1961 shall be subject to the regular notification 
             procedures of the Committees on Appropriations.

    Sec. 516. Notwithstanding any other provision of law or of this Act, 
none of the funds provided for ``International Organizations and 
Programs'' shall be available for the United States proportionate share, 
in accordance with section 307(c) of the Foreign Assistance Act of 1961, 
for any programs identified in section 307, or for Libya, Iran, or, at 
the discretion of the President, Communist countries listed in section 
620(f ) of the Foreign Assistance Act of 1961, as amended: Provided, 
That, subject to the regular notification procedures of the Committees 
on Appropriations, funds appropriated under this Act or any previously 
enacted Act making appropriations for foreign operations, export 
financing, and related programs, which are returned or not made 
available for organizations and programs because of the implementation 
of this section or any similar provision of law, shall remain available 
               for obligation through September 30, 1999.

    Sec. 517. The Congress finds that progress on the peace process in 
the Middle East is vitally important to United States security interests 
in the region. The Congress recognizes that, in fulfilling its 
obligations under the Treaty of Peace Between the Arab Republic of Egypt 
and the State of Israel, done at Washington on March 26, 1979, Israel 
incurred severe economic burdens. Furthermore, the Congress recognizes 
that an economically and militarily secure Israel serves the security 
interests of the United States, for a secure Israel is an Israel which 
has the incentive and confidence

[[Page 111 STAT. 2411]]

to continue pursuing the peace process. Therefore, the Congress declares 
that, subject to the availability of appropriations, it is the policy 
and the intention of the United States that the funds provided in annual 
appropriations for the Economic Support Fund which are allocated to 
Israel shall not be less than the annual debt repayment (interest and 
principal) from Israel to the United States Government in recognition 
   that such a principle serves United States interests in the region.

    Sec. 518. None of the funds made available to carry out part I of 
the Foreign Assistance Act of 1961, as amended, may be used to pay for 
the performance of abortions as a method of family planning or to 
motivate or coerce any person to practice abortions. None of the funds 
made available to carry out part I of the Foreign Assistance Act of 
1961, as amended, may be used to pay for the performance of involuntary 
sterilization as a method of family planning or to coerce or provide any 
financial incentive to any person to undergo sterilizations. None of the 
funds made available to carry out part I of the Foreign Assistance Act 
of 1961, as amended, may be used to pay for any biomedical research 
which relates in whole or in part, to methods of, or the performance of, 
abortions or involuntary sterilization as a means of family planning. 
None of the funds made available to carry out part I of the Foreign 
Assistance Act of 1961, as amended, may be obligated or expended for any 
country or organization if the President certifies that the use of these 
funds by any such country or organization would violate any of the above 
provisions related to abortions and involuntary sterilizations: 
Provided, That none of the funds made available under this Act may be 
                 used to lobby for or against abortion.

    Sec. 519. <<NOTE: 22 USC 2765.>>  Section 25 of the Arms Export 
Control Act is amended--
            (1) in subsection (a), by striking ``Congress'' and 
        inserting in lieu thereof ``appropriate congressional 
        committees'';
            (2) in subsection (b), by striking ``the Committee on 
        Foreign Relations of the Senate or the Committee on Foreign 
        Affairs of the House of Representatives'' and inserting in lieu 
        thereof ``any of the congressional committees described in 
        subsection (e)''; and
            (3) by adding the following subsection:

    ``(e) As used in this section, the term `appropriate congressional 
committees' means the Committee on Foreign Relations and the Committee 
on Appropriations of the Senate and the Committee on International 
Relations and the Committee on Appropriations of the House of 
                           Representatives.''.

    Sec. 520. None of the funds appropriated in this Act shall be 
obligated or expended for Colombia, Haiti, Liberia, Pakistan, Panama, 
Peru, Serbia, Sudan, or the Democratic Republic of Congo except as 
provided through the regular notification procedures of the Committees 
on Appropriations.

[[Page 111 STAT. 2412]]

    Sec. 521. For the purpose of this Act, ``program, project, and 
activity'' shall be defined at the appropriations Act account level and 
shall include all appropriations and authorizations Acts earmarks, 
ceilings, and limitations with the exception that for the following 
accounts: Economic Support Fund and Foreign Military Financing Program, 
``program, project, and activity'' shall also be considered to include 
country, regional, and central program level funding within each such 
account; for the development assistance accounts of the Agency for 
International Development ``program, project, and activity'' shall also 
be considered to include central program level funding, either as: (1) 
justified to the Congress; or (2) allocated by the executive branch in 
accordance with a report, to be provided to the Committees on 
Appropriations within 30 days of enactment of this Act, as required by 
          section 653(a) of the Foreign Assistance Act of 1961.

    Sec. 522. Up to $10,000,000 of the funds made available by this Act 
for assistance for family planning, health, child survival, basic 
education, and AIDS, may be used to reimburse United States Government 
agencies, agencies of State governments, institutions of higher 
learning, and private and voluntary organizations for the full cost of 
individuals (including for the personal services of such individuals) 
detailed or assigned to, or contracted by, as the case may be, the 
Agency for International Development for the purpose of carrying out 
family planning activities, child survival, and basic education 
activities, and activities relating to research on, and the treatment 
and control of acquired immune deficiency syndrome in developing 
countries: Provided, That funds appropriated by this Act that are made 
available for child survival activities or activities relating to 
research on, and the treatment and control of, acquired immune 
deficiency syndrome may be made available notwithstanding any provision 
of law that restricts assistance to foreign countries: Provided further, 
That funds appropriated by this Act that are made available for family 
planning activities may be made available notwithstanding section 512 of 
   this Act and section 620(q) of the Foreign Assistance Act of 1961.

    Sec. 523. None of the funds appropriated or otherwise made available 
pursuant to this Act shall be obligated to finance indirectly any 
assistance or reparations to Cuba, Iraq, Libya, Iran, Syria, North 
Korea, or the People's Republic of China, unless the President of the 
United States certifies that the withholding of these funds is contrary 
             to the national interest of the United States.

    Sec. 524. Section <<NOTE: 22 USC 2796. NOTIFICATION ON EXCESS 
DEFENSE EQUIPMENT>>  61(a) of the Arms Export Control Act is amended by 
      striking out ``1997'' and inserting in lieu thereof ``1998''.

    Sec. 525. Prior to providing excess Department of Defense articles 
in accordance with section 516(a) of the Foreign Assistance

[[Page 111 STAT. 2413]]

Act of 1961, the Department of Defense shall notify the Committees on 
Appropriations to the same extent and under the same conditions as are 
other committees pursuant to subsection (c) of that section: Provided, 
That before issuing a letter of offer to sell excess defense articles 
under the Arms Export Control Act, the Department of Defense shall 
notify the Committees on Appropriations in accordance with the regular 
notification procedures of such Committees: Provided further, That such 
Committees shall also be informed of the original acquisition cost of 
                         such defense articles.

    Sec. 526. Funds appropriated by this Act may be obligated and 
expended notwithstanding section 10 of Public Law 91-672 and section 15 
         of the State Department Basic Authorities Act of 1956.

    Sec. 527. (a) Notwithstanding any other provision of law, funds 
appropriated for bilateral assistance under any heading of this Act and 
funds appropriated under any such heading in a provision of law enacted 
prior to enactment of this Act, shall not be made available to any 
country which the President determines--
            (1) grants sanctuary from prosecution to any individual or 
        group which has committed an act of international terrorism; or
            (2) otherwise supports international terrorism.

    (b) The President may waive the application of subsection (a) to a 
country if the President determines that national security or 
humanitarian reasons justify such waiver. <<NOTE: President. Federal 
Register, publication. Notification. COMMERCIAL LEASING OF DEFENSE 
ARTICLES>>  The President shall publish each waiver in the Federal 
Register and, at least 15 days before the waiver takes effect, shall 
notify the Committees on Appropriations of the waiver (including the 
justification for the waiver) in accordance with the regular 
      notification procedures of the Committees on Appropriations.

    Sec. 528. <<NOTE: 22 USC 2763 note. COMPETITIVE INSURANCE>>  
Notwithstanding any other provision of law, and subject to the regular 
notification procedures of the Committees on Appropriations, the 
authority of section 23(a) of the Arms Export Control Act may be used to 
provide financing to Israel, Egypt and NATO and major non-NATO allies 
for the procurement by leasing (including leasing with an option to 
purchase) of defense articles from United States commercial suppliers, 
not including Major Defense Equipment (other than helicopters and other 
types of aircraft having possible civilian application), if the 
President determines that there are compelling foreign policy or 
national security reasons for those defense articles being provided by 
commercial lease rather than by government-to-government sale under such 
                                  Act.

    Sec. 529. All Agency for International Development contracts and 
solicitations, and subcontracts entered into under such contracts, shall 
include a clause requiring that United States insurance

[[Page 111 STAT. 2414]]

companies have a fair opportunity to bid for insurance when such 
                 insurance is necessary or appropriate.

    Sec. 530. Except as provided in section 581 of the Foreign 
Operations, Export Financing, and Related Programs Appropriations Act, 
1990, the United States may not sell or otherwise make available any 
Stingers to any country bordering the Persian Gulf under the Arms Export 
Control Act or chapter 2 of part II of the Foreign Assistance Act of 
                                  1961.

    Sec. 531. In order to enhance the continued participation of 
nongovernmental organizations in economic assistance activities under 
the Foreign Assistance Act of 1961, including endowments, debt-for-
development and debt-for-nature exchanges, a nongovernmental 
organization which is a grantee or contractor of the Agency for 
International Development may place in interest bearing accounts funds 
made available under this Act or prior Acts or local currencies which 
accrue to that organization as a result of economic assistance provided 
under title II of this Act and any interest earned on such investment 
shall be used for the purpose for which the assistance was provided to 
                           that organization.

    Sec. 532. <<NOTE: 22 USC 2359 note.>>  (a) Separate Accounts for 
Local Currencies.--(1) If assistance is furnished to the government of a 
foreign country under chapter 1 and 10 of part I or chapter 4 of part II 
of the Foreign Assistance Act of 1961 under agreements which result in 
the generation of local currencies of that country, the Administrator of 
the Agency for International Development shall--
            (A) require that local currencies be deposited in a separate 
        account established by that government;
            (B) enter into an agreement with that government which sets 
        forth--
                    (i) the amount of the local currencies to be 
                generated; and
                    (ii) the terms and conditions under which the 
                currencies so deposited may be utilized, consistent with 
                this section; and
            (C) establish by agreement with that government the 
        responsibilities of the Agency for International Development and 
        that government to monitor and account for deposits into and 
        disbursements from the separate account.

    (2) Uses of Local Currencies.--As may be agreed upon with the 
foreign government, local currencies deposited in a separate account 
pursuant to subsection (a), or an equivalent amount of local currencies, 
shall be used only--
            (A) to carry out chapter 1 or 10 of part I or chapter 4 of 
        part II (as the case may be), for such purposes as--
                    (i) project and sector assistance activities; or
                    (ii) debt and deficit financing; or
            (B) for the administrative requirements of the United States 
        Government.

[[Page 111 STAT. 2415]]

    (3) Programming Accountability.--The Agency for International 
Development shall take all necessary steps to ensure that the equivalent 
of the local currencies disbursed pursuant to subsection (a)(2)(A) from 
the separate account established pursuant to subsection (a)(1) are used 
for the purposes agreed upon pursuant to subsection (a)(2).
    (4) Termination of Assistance Programs.--Upon termination of 
assistance to a country under chapter 1 or 10 of part I or chapter 4 of 
part II (as the case may be), any unencumbered balances of funds which 
remain in a separate account established pursuant to subsection (a) 
shall be disposed of for such purposes as may be agreed to by the 
government of that country and the United States Government.
    (5) Conforming Amendments.--The provisions of this subsection shall 
supersede the tenth and eleventh provisos contained under the heading 
``Sub-Saharan Africa, Development Assistance'' as included in the 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1989 and sections 531(d) and 609 of the Foreign 
Assistance Act of 1961.
    (6) Reporting Requirement.--The Administrator of the Agency for 
International Development shall report on an annual basis as part of the 
justification documents submitted to the Committees on Appropriations on 
the use of local currencies for the administrative requirements of the 
United States Government as authorized in subsection (a)(2)(B), and such 
report shall include the amount of local currency (and United States 
dollar equivalent) used and/or to be used for such purpose in each 
applicable country.
    (b) Separate Accounts for Cash Transfers.--(1) If assistance is made 
available to the government of a foreign country, under chapter 1 or 10 
of part I or chapter 4 of part II of the Foreign Assistance Act of 1961, 
as cash transfer assistance or as nonproject sector assistance, that 
country shall be required to maintain such funds in a separate account 
and not commingle them with any other funds.
    (2) Applicability of Other Provisions of Law.--Such funds may be 
obligated and expended notwithstanding provisions of law which are 
inconsistent with the nature of this assistance including provisions 
which are referenced in the Joint Explanatory Statement of the Committee 
of Conference accompanying House Joint Resolution 648 (H. Report No. 98-
1159).
    (3) Notification.--At <<NOTE: President.>>  least 15 days prior to 
obligating any such cash transfer or nonproject sector assistance, the 
President shall submit a notification through the regular notification 
procedures of the Committees on Appropriations, which shall include a 
detailed description of how the funds proposed to be made available will 
be used, with a discussion of the United States interests that will be 
served by the assistance (including, as appropriate, a description of 
the economic policy reforms that will be promoted by such assistance).

    (4) Exemption.--Nonproject sector assistance funds may be exempt 
from the requirements of subsection (b)(1) only through the notification 
             procedures of the Committees on Appropriations.

    Sec. 533. (a) No funds appropriated by this Act may be made as 
payment to any international financial institution while the

[[Page 111 STAT. 2416]]

United States Executive Director to such institution is compensated by 
the institution at a rate which, together with whatever compensation 
such Director receives from the United States, is in excess of the rate 
provided for an individual occupying a position at level IV of the 
Executive Schedule under section 5315 of title 5, United States Code, or 
while any alternate United States Director to such institution is 
compensated by the institution at a rate in excess of the rate provided 
for an individual occupying a position at level V of the Executive 
Schedule under section 5316 of title 5, United States Code.
    (b) For purposes of this section, ``international financial 
institutions'' are: the International Bank for Reconstruction and 
Development, the Inter-American Development Bank, the Asian Development 
Bank, the Asian Development Fund, the African Development Bank, the 
African Development Fund, the International Monetary Fund, the North 
American Development Bank, and the European Bank for Reconstruction and 
                              Development.

    Sec. 534. <<NOTE: 50 USC 1701 note.>>  None of the funds 
appropriated or otherwise made available pursuant to this Act to carry 
out the Foreign Assistance Act of 1961 (including title IV of chapter 2 
of part I, relating to the Overseas Private Investment Corporation) or 
the Arms Export Control Act may be used to provide assistance to any 
country that is not in compliance with the United Nations Security 
Council sanctions against Iraq unless the President determines and so 
certifies to the Congress that--
            (1) such assistance is in the national interest of the 
        United States;
            (2) such assistance will directly benefit the needy people 
        in that country; or
            (3) the assistance to be provided will be humanitarian 
         assistance for foreign nationals who have fled Iraq and Kuwait.

    Sec. 535. <<NOTE: 22 USC 2762 note. EXTENSION OF AUTHORITY TO 
OBLIGATE FUNDS TO CLOSE THE SPECIAL DEFENSE ACQUISITION FUND>>  Direct 
costs associated with meeting a foreign customer's additional or unique 
requirements will continue to be allowable under contracts under section 
22(d) of the Arms Export Control Act. Loadings applicable to such direct 
costs shall be permitted at the same rates applicable to procurement of 
   like items purchased by the Department of Defense for its own use.

    Sec. 536. Title III of Public Law 103-306 is amended under the 
heading ``Special Defense Acquisition Fund'' <<NOTE: 108 Stat. 
1622. AUTHORITIES FOR THE PEACE CORPS, THE INTER-AMERICAN FOUNDATION AND 
THE AFRICAN DEVELOPMENT FOUNDATION>> by striking ``1998'' and inserting 
                                ``2000''.

    Sec. 537. Unless expressly provided to the contrary, provisions of 
this or any other Act, including provisions contained in prior Acts 
authorizing or making appropriations for foreign operations, export 
financing, and related programs, shall not be construed to prohibit 
activities authorized by or conducted under the Peace

[[Page 111 STAT. 2417]]

Corps Act, the Inter-American Foundation Act, or the African Development 
Foundation Act. <<NOTE: Reports. IMPACT ON JOBS IN THE UNITED STATES>>  
The appropriate agency shall promptly report to the Committees on 
Appropriations whenever it is conducting activities or is proposing to 
   conduct activities in a country for which assistance is prohibited.

    Sec. 538. None of the funds appropriated by this Act may be 
obligated or expended to provide--
            (1) any financial incentive to a business enterprise 
        currently located in the United States for the purpose of 
        inducing such an enterprise to relocate outside the United 
        States if such incentive or inducement is likely to reduce the 
        number of employees of such business enterprise in the United 
        States because United States production is being replaced by 
        such enterprise outside the United States;
            (2) assistance for the purpose of establishing or developing 
        in a foreign country any export processing zone or designated 
        area in which the tax, tariff, labor, environment, and safety 
        laws of that country do not apply, in part or in whole, to 
        activities carried out within that zone or area, unless the 
        President determines and certifies that such assistance is not 
        likely to cause a loss of jobs within the United States; or
            (3) assistance for any project or activity that contributes 
        to the violation of internationally recognized workers rights, 
        as defined in section 502(a)(4) of the Trade Act of 1974, of 
        workers in the recipient country, including any designated zone 
        or area in that country: Provided, That in recognition that the 
        application of this subsection should be commensurate with the 
        level of development of the recipient country and sector, the 
        provisions of this subsection shall not preclude assistance for 
        the informal sector in such country, micro and small-scale 
                    enterprise, and smallholder agriculture.

    Sec. 539. (a) Funds appropriated in title II of this Act that are 
made available for Afghanistan, Lebanon, and for victims of war, 
displaced children, displaced Burmese, humanitarian assistance for 
Romania, and humanitarian assistance for the peoples of Bosnia and 
Herzegovina, Croatia, and Kosova, may be made available notwithstanding 
any other provision of law.
    (b) Funds appropriated by this Act to carry out the provisions of 
sections 103 through 106 of the Foreign Assistance Act of 1961 may be 
used, notwithstanding any other provision of law, for the purpose of 
supporting tropical forestry and energy programs aimed at reducing 
emissions of greenhouse gases, and for the purpose of supporting 
biodiversity conservation activities: Provided, That such assistance 
shall be subject to sections 116, 502B, and 620A of the Foreign 
Assistance Act of 1961.
    (c) The Agency for International Development may employ personal 
services contractors, notwithstanding any other provision of law, for 
the purpose of administering programs for the West Bank and Gaza.
    (d)(1) Waiver.--The President may waive the provisions of section 
1003 of Public Law 100-204 if the President determines

[[Page 111 STAT. 2418]]

and certifies in writing to the Speaker of the House of Representatives 
and the President pro tempore of the Senate that it is important to the 
national security interests of the United States.
    (2) Period of Application of Waiver.--Any waiver pursuant to 
paragraph (1) shall be effective for no more than a period of six months 
at a time and shall not apply beyond twelve months after enactment of 
                                this Act.

    Sec. 540. It is the sense of the Congress that--
            (1) the Arab League countries should immediately and 
        publicly renounce the primary boycott of Israel and the 
        secondary and tertiary boycott of American firms that have 
        commercial ties with Israel;
            (2) the decision by the Arab League in 1997 to reinstate the 
        boycott against Israel was deeply troubling and disappointing;
            (3) the Arab League should immediately rescind its decision 
        on the boycott and its members should develop normal relations 
        with their neighbor Israel; and
            (4) the President should--
                    (A) take more concrete steps to encourage vigorously 
                Arab League countries to renounce publicly the primary 
                boycotts of Israel and the secondary and tertiary 
                boycotts of American firms that have commercial 
                relations with Israel as a confidence-building measure;
                    (B) take into consideration the participation of any 
                recipient country in the primary boycott of Israel and 
                the secondary and tertiary boycotts of American firms 
                that have commercial relations with Israel when 
                determining whether to sell weapons to said country;
                    (C) report to Congress on the specific steps being 
                taken by the President to bring about a public 
                renunciation of the Arab primary boycott of Israel and 
                the secondary and tertiary boycotts of American firms 
                that have commercial relations with Israel and to expand 
                the process of normalizing ties between Arab League 
                countries and Israel; and
                    (D) encourage the allies and trading partners of the 
                United States to enact laws prohibiting businesses from 
                complying with the boycott and penalizing businesses 
                                     that do comply.

    Sec. 541. (a) Of the funds appropriated or otherwise made available 
by this Act for ``Economic Support Fund'', assistance may be provided to 
strengthen the administration of justice in countries in Latin America 
and the Caribbean and in other regions consistent with the provisions of 
section 534(b) of the Foreign Assistance Act of 1961, except that 
programs to enhance protection of participants in judicial cases may be 
conducted notwithstanding section 660 of that Act.
    (b) Funds made available pursuant to this section may be made 
available notwithstanding section 534(c) and the second and third 
sentences of section 534(e) of the Foreign Assistance Act of 1961. Funds 
made available pursuant to subsection (a) for Bolivia, Colombia, and 
Peru may be made available notwithstanding section

[[Page 111 STAT. 2419]]

534(c) and the second sentence of section 534(e) of the Foreign 
                         Assistance Act of 1961.

    Sec. 542. (a) Assistance Through Nongovernmental Organizations.--
Restrictions contained in this or any other Act with respect to 
assistance for a country shall not be construed to restrict assistance 
in support of programs of nongovernmental organizations from funds 
appropriated by this Act to carry out the provisions of chapters 1, 10, 
and 11 of part I, and chapter 4 of part II, of the <<NOTE: President.>>  
Foreign Assistance Act of 1961: Provided, That the President shall take 
into consideration, in any case in which a restriction on assistance 
would be applicable but for this subsection, whether assistance in 
support of programs of nongovernmental organizations is in the national 
interest of the United States: Provided further, 
That <<NOTE: President. Notification.>>  before using the authority of 
this subsection to furnish assistance in support of programs of 
nongovernmental organizations, the President shall notify the Committees 
on Appropriations under the regular notification procedures of those 
committees, including a description of the program to be assisted, the 
assistance to be provided, and the reasons for furnishing such 
assistance: Provided further, That nothing in this subsection shall be 
construed to alter any existing statutory prohibitions against abortion 
or involuntary sterilizations contained in this or any other Act.

    (b) Public Law 480.--During fiscal year 1998, restrictions contained 
in this or any other Act with respect to assistance for a country shall 
not be construed to restrict assistance under the Agricultural Trade 
Development and Assistance Act of 1954: Provided, That none of the funds 
appropriated to carry out title I of such Act and made available 
pursuant to this subsection may be obligated or expended except as 
provided through the regular notification procedures of the Committees 
on Appropriations.
    (c) Exception.--This section shall not apply--
            (1) with respect to section 620A of the Foreign Assistance 
        Act or any comparable provision of law prohibiting assistance to 
        countries that support international terrorism; or
            (2) with respect to section 116 of the Foreign Assistance 
        Act of 1961 or any comparable provision of law prohibiting 
        assistance to countries that violate internationally recognized 
                                  human rights.

    Sec. 543. (a) Funds appropriated by this Act which are earmarked may 
be reprogrammed for other programs within the same account 
notwithstanding the earmark if compliance with the earmark is made 
impossible by operation of any provision of this or any other Act or, 
with respect to a country with which the United States has an agreement 
providing the United States with base rights or base access in that 
country, if the President determines that the recipient for which funds 
are earmarked has significantly reduced its military or economic 
cooperation with the United States since enactment of the Foreign 
Operations, Export Financing, and Related Programs Appropriations Act, 
1991; <<NOTE: President.>>  however, before exercising the authority of 
this subsection with regard to a base rights or base access country 
which has significantly reduced its

[[Page 111 STAT. 2420]]

military or economic cooperation with the United States, the President 
shall consult with, and shall provide a written policy justification to 
the Committees on Appropriations: Provided, That any such reprogramming 
shall be subject to the regular notification procedures of the 
Committees on Appropriations: Provided further, That assistance that is 
reprogrammed pursuant to this subsection shall be made available under 
the same terms and conditions as originally provided.

    (b) In addition to the authority contained in subsection (a), the 
original period of availability of funds appropriated by this Act and 
administered by the Agency for International Development that are 
earmarked for particular programs or activities by this or any other Act 
shall be extended for an additional fiscal year if the Administrator of 
such agency determines and reports promptly to the Committees on 
Appropriations that the termination of assistance to a country or a 
significant change in circumstances makes it unlikely that such 
earmarked funds can be obligated during the original period of 
availability: Provided, That such earmarked funds that are continued 
available for an additional fiscal year shall be obligated only for the 
                        purpose of such earmark.

    Sec. 544. Ceilings and earmarks contained in this Act shall not be 
applicable to funds or authorities appropriated or otherwise made 
available by any subsequent Act unless such Act specifically so directs.

    Sec. 545. No part of any appropriation contained in this Act shall 
be used for publicity or propaganda purposes within the United States 
not authorized before the date of enactment of this Act by the Congress: 
Provided, That not to exceed $500,000 may be made available to carry out 
           the provisions of section 316 of Public Law 96-533.

    Sec. 546. (a) To the maximum extent possible, assistance provided 
under this Act should make full use of American resources, including 
commodities, products, and services.
    (b) It is the Sense of the Congress that, to the greatest extent 
practicable, all equipment and products purchased with funds made 
available in this Act should be American-made.
    (c) In providing financial assistance to, or entering into any 
contract with, any entity using funds made available in this Act, the 
head of each Federal agency, to the greatest extent practicable, shall 
provide to such entity a notice describing the statement made in 
                     subsection (b) by the Congress.

    Sec. 547. None of the funds appropriated or made available pursuant 
to this Act for carrying out the Foreign Assistance Act of 1961, may be 
used to pay in whole or in part any assessments, arrearages, or dues of 
any member of the United Nations.

[[Page 111 STAT. 2421]]

    Sec. 548. <<NOTE: Contracts. Public information. private voluntary 
organizations-documentation>>  The expenditure of any appropriation 
under this Act for any consulting service through procurement contract, 
pursuant to section 3109 of title 5, United States Code, shall be 
limited to those contracts where such expenditures are a matter of 
public record and available for public inspection, except where 
otherwise provided under existing law, or under existing Executive order 
                        pursuant to existing law.

    Sec. 549. None of the funds appropriated or made available pursuant 
to this Act shall be available to a private voluntary organization which 
fails to provide upon timely request any document, file, or record 
necessary to the auditing requirements of the Agency for International 
                              Development.

    Sec. 550. (a) None of the funds appropriated or otherwise made 
available by this Act may be available to any foreign government which 
provides lethal military equipment to a country the government of which 
the Secretary of State has determined is a terrorist government for 
purposes of section 40(d) of the Arms Export Control 
Act. <<NOTE: Termination date.>>  The prohibition under this section 
with respect to a foreign government shall terminate 12 months after 
that government ceases to provide <<NOTE: Applicability.>>  such 
military equipment. This section applies with respect to lethal military 
equipment provided under a contract entered into after October 1, 1997.

    (b) Assistance restricted by subsection (a) or any other similar 
provision of law, may be furnished if the President determines that 
furnishing such assistance is important to the national interests of the 
United States.
    (c) Whenever <<NOTE: President. Reports. withholding of assistance 
for parking fines owed by foreign countries>>  the waiver of subsection 
(b) is exercised, the President shall submit to the appropriate 
congressional committees a report with respect to the furnishing of such 
assistance. Any such report shall include a detailed explanation of the 
assistance estimated to be provided, including the estimated dollar 
amount of such assistance, and an explanation of how the assistance 
               furthers United States national interests.

    Sec. 551. (a) In General.--Of the funds made available for a foreign 
country under part I of the Foreign Assistance Act of 1961, an amount 
equivalent to 110 percent of the total unpaid fully adjudicated parking 
fines and penalties owed to the District of Columbia by such country as 
of the date of enactment of this Act shall be withheld from obligation 
for such country until the Secretary of State certifies and reports in 
writing to the appropriate congressional committees that such fines and 
penalties are fully paid to the government of the District of Columbia.
    (b) Definition.--For purposes of this section, the term 
``appropriate congressional committees'' means the Committee on Foreign 
Relations and the Committee on Appropriations of the Senate and

[[Page 111 STAT. 2422]]

the Committee on International Relations and the Committee on 
             Appropriations of the House of Representatives.

    Sec. 552. None of the funds appropriated by this Act may be 
obligated for assistance for the Palestine Liberation Organization for 
the West Bank and Gaza unless the President has exercised the authority 
under section 604(a) of the Middle East Peace Facilitation Act of 1995 
(title VI of Public Law 104-107) or any other legislation to suspend or 
make inapplicable section 307 of the Foreign Assistance Act of 1961 and 
that suspension is still in effect: Provided, That if the President 
fails to make the certification under section 604(b)(2) of the Middle 
East Peace Facilitation Act of 1995 or to suspend the prohibition under 
other legislation, funds appropriated by this Act may not be obligated 
for assistance for the Palestine Liberation Organization for the West 
                             Bank and Gaza.

    Sec. 553. If the President determines that doing so will contribute 
to a just resolution of charges regarding genocide or other violations 
of international humanitarian law, the President may direct a drawdown 
pursuant to section 552(c) of the Foreign Assistance Act of 1961, as 
amended, of up to $25,000,000 of commodities and services for the United 
Nations War Crimes Tribunal established with regard to the former 
Yugoslavia by the United Nations Security Council or such other 
tribunals or commissions as the Council may establish to deal with such 
violations, without regard to the ceiling limitation contained in 
paragraph (2) thereof: Provided, That the determination required under 
this section shall be in lieu of any determinations otherwise required 
under section 552(c): Provided further, That <<NOTE: Reports. 22 USC 
2656 note. landmines>>  60 days after the date of enactment of this Act, 
and every 180 days thereafter, the Secretary of State shall submit a 
report to the Committees on Appropriations describing the steps the 
United States Government is taking to collect information regarding 
allegations of genocide or other violations of international law in the 
former Yugoslavia and to furnish that information to the United Nations 
             War Crimes Tribunal for the former Yugoslavia.

    Sec. 554. Notwithstanding any other provision of law, demining 
equipment available to the Agency for International Development and the 
Department of State and used in support of the clearance of landmines 
and unexploded ordnance for humanitarian purposes may be disposed of on 
a grant basis in foreign countries, subject to such terms and conditions 
as the President may prescribe: Provided, 
That <<NOTE: Reports. restrictions concerning the palestinian 
authority>>  not later than 90 days after the enactment of this Act, the 
Secretary of Defense, in consultation with the Secretary of State, shall 
submit a report to the Committees on Appropriations describing potential 
alternative technologies or tactics and a plan for the development of 
such alternatives to protect anti-tank mines from tampering in a manner 
consistent with the ``Convention on the Prohibition, Use, Stockpiling, 
Production and Transfer of Anti-personnel Mines and on Their 
Destruction''.

[[Page 111 STAT. 2423]]

    Sec. 555. None of the funds appropriated by this Act may be 
obligated or expended to create in any part of Jerusalem a new office of 
any department or agency of the United States Government for the purpose 
of conducting official United States Government business with the 
Palestinian Authority over Gaza and Jericho or any successor Palestinian 
governing entity provided for in the Israel-PLO Declaration of 
Principles: Provided, That this restriction shall not apply to the 
acquisition of additional space for the existing Consulate General in 
Jerusalem: Provided further, That meetings between officers and 
employees of the United States and officials of the Palestinian 
Authority, or any successor Palestinian governing entity provided for in 
the Israel-PLO Declaration of Principles, for the purpose of conducting 
official United States Government business with such authority should 
continue to take place in locations other than Jerusalem. As has been 
true in the past, officers and employees of the United States Government 
may continue to meet in Jerusalem on other subjects with Palestinians 
(including those who now occupy positions in the Palestinian Authority), 
         have social contacts, and have incidental discussions.

    Sec. 556. None of the funds appropriated or otherwise made available 
by this Act under the heading ``International Military Education and 
Training '' or ``Foreign Military Financing Program'' for Informational 
Program activities may be obligated or expended to pay for--
            (1) alcoholic beverages;
            (2) food (other than food provided at a military 
        installation) not provided in conjunction with Informational 
        Program trips where students do not stay at a military 
        installation; or
            (3) entertainment expenses for activities that are 
        substantially of a recreational character, including entrance 
                  fees at sporting events and amusement parks.

    Sec. 557. Not more than 18 percent of the funds appropriated by this 
Act to carry out the provisions of sections 103 through 106 and chapter 
4 of part II of the Foreign Assistance Act of 1961, that are made 
available for Latin America and the Caribbean region may be made 
available, through bilateral and Latin America and the Caribbean 
regional programs, to provide assistance for any country in such region.

    Sec. 558. (a) Authority To Reduce Debt.--The President may reduce 
amounts owed to the United States (or any agency of the United States) 
by an eligible country as a result of--
            (1) guarantees issued under sections 221 and 222 of the 
        Foreign Assistance Act of 1961;
            (2) credits extended or guarantees issued under the Arms 
        Export Control Act; or

[[Page 111 STAT. 2424]]

            (3) any obligation or portion of such obligation for a Latin 
        American country, to pay for purchases of United States 
        agricultural commodities guaranteed by the Commodity Credit 
        Corporation under export credit guarantee programs authorized 
        pursuant to section 5(f ) of the Commodity Credit Corporation 
        Charter Act of June 29, 1948, as amended, section 4(b) of the 
        Food for Peace Act of 1966, as amended (Public Law 89-808), or 
        section 202 of the Agricultural Trade Act of 1978, as amended 
        (Public Law 95-501).

    (b) Limitations.--
            (1) The authority provided by subsection (a) may be 
        exercised only to implement multilateral official debt relief 
        and referendum agreements, commonly referred to as ``Paris Club 
        Agreed Minutes''.
            (2) The authority provided by subsection (a) may be 
        exercised only in such amounts or to such extent as is provided 
        in advance by appropriations Acts.
            (3) The authority provided by subsection (a) may be 
        exercised only with respect to countries with heavy debt burdens 
        that are eligible to borrow from the International Development 
        Association, but not from the International Bank for 
        Reconstruction and Development, commonly referred to as ``IDA-
        only'' countries.

    (c) Conditions.--The authority provided by subsection (a) may be 
exercised only with respect to a country whose government--
            (1) does not have an excessive level of military 
        expenditures;
            (2) has not repeatedly provided support for acts of 
        international terrorism;
            (3) is not failing to cooperate on international narcotics 
        control matters;
            (4) (including its military or other security forces) does 
        not engage in a consistent pattern of gross violations of 
        internationally recognized human rights; and
            (5) is not ineligible for assistance because of the 
        application of section 527 of the Foreign Relations 
        Authorization Act, Fiscal Years 1994 and 1995.

    (d) Availability of Funds.--The authority provided by subsection (a) 
may be used only with regard to funds appropriated by this Act under the 
heading ``Debt restructuring ''.
    (e) Certain Prohibitions Inapplicable.--A reduction of debt pursuant 
to subsection (a) shall not be considered assistance for purposes of any 
provision of law limiting assistance to a country. The authority 
provided by subsection (a) may be exercised notwithstanding section 
              620(r) of the Foreign Assistance Act of 1961.

    Sec. 559. (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 the Foreign Assistance Act of 1961, to the 
        government of any eligible country as defined in section 702(6) 
        of that Act or on receipt of payment from

[[Page 111 STAT. 2425]]

        an eligible purchaser, 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 that link 
                conservation and sustainable use of natural resources 
                with local community development, and child survival and 
                other child development, in a manner consistent with 
                sections 707 through 710 of the Foreign Assistance Act 
                of 1961, if the sale, reduction, or cancellation would 
                not contravene any term or condition of any prior 
                agreement relating to such loan.
            (2) Terms <<NOTE: President.>>  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) of the Foreign Assistance Act of 1961, shall notify the 
        administrator of the agency primarily responsible for 
        administering part I of the Foreign Assistance Act of 1961 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.--The authorities of this subsection shall be 
        available 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.

    (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 the United States Government account or 
accounts established 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 should 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.
    (e) Availability of Funds.--The authority provided by subsection (a) 
may be used only with regard to funds appropriated by this Act under the 
                    heading ``Debt restructuring ''.

    Sec. 560. <<NOTE: 22 USC 284s note, 285c note, 290l-4 note.>>  (a) 
Authorizations.--The Secretary of the Treasury may, to fulfill 
commitments of the United States: (1) effect the United States 
participation in the first general capital increase

[[Page 111 STAT. 2426]]

of the European Bank for Reconstruction and Development, subscribe to 
and make payment for 100,000 additional shares of the capital stock of 
the Bank on behalf of the United States; and (2) contribute on behalf of 
the United States to the eleventh replenishment of the resources of the 
International Development Association, to the sixth replenishment of the 
resources of the Asian Development Fund, a special fund of the Asian 
Development Bank. The following amounts are authorized to be 
appropriated without fiscal year limitation for payment by the Secretary 
of the Treasury: (1) $285,772,500 for paid-in capital, and $984,327,500 
for callable capital of the European Bank for Reconstruction and 
Development; (2) $1,600,000,000 for the International Development 
Association; (3) $400,000,000 for the Asian Development Fund; and (4) 
$76,832,001 for paid-in capital, and $4,511,156,729 for callable capital 
of the Inter-American Development Bank in connection with the eighth 
general increase in the resources of that Bank. Each such subscription 
or contribution shall be subject to obtaining the necessary 
appropriations.

    (b) Consideration of Environmental Impact of International Finance 
Corporation Loans.--Section 1307 of the International Financial 
Institutions Act (Public Law 95-118) <<NOTE: 22 USC 262m-7.>>  is 
amended as follows:
            (1) in subsection (a)(1)(A) strike ``borrowing country'' and 
        insert in lieu thereof ``borrower'';
            (2) in subsection (a)(2)(A) strike ``country''; and
            (3) at the end of section 1307, add a new subsection as 
        follows:

    ``(g) For purposes of this section, the term `multilateral 
development bank' means any of the institutions named in section 1303(b) 
of this Act, and the International Finance Corporation.''.
    (c) The Secretary of the Treasury shall instruct the United States 
Executive Directors of the International Bank for Reconstruction and 
Development and the International Development Association to use the 
voice and vote of the United States to strongly encourage their 
respective institutions to--
            (1) provide timely public information on procurement 
        opportunities available to United States suppliers, with a 
        special emphasis on small business; and
            (2) systematically consult with local communities on the 
        potential impact of loans as part of the normal lending process, 
        and expand the participation of affected peoples and 
        nongovernmental organizations in decisions on the selection, 
               design and implementation of policies and projects.

    Sec. 561. (a) Bilateral Assistance.--The President is authorized to 
withhold funds appropriated by this Act under the Foreign Assistance Act 
of 1961 or the Arms Export Control Act for any country described in 
subsection (c).
    (b) Multilateral Assistance.--The Secretary of the Treasury should 
instruct the United States executive directors of the international 
financial institutions to work in opposition to, and vote against, any 
extension by such institutions of financing or financial or technical 
assistance to any country described in subsection (c).
    (c) Sanctioned Countries.--A country described in this subsection is 
a country the government of which knowingly grants

[[Page 111 STAT. 2427]]

sanctuary to persons in its territory for the purpose of evading 
prosecution, where such persons--
            (1) have been indicted by the International Criminal 
        Tribunal for Rwanda, or any other international tribunal with 
        similar standing under international law; or
            (2) have been indicted for war crimes or crimes against 
        humanity committed during the period beginning March 23, 1933 
        and ending on May 8, 1945 under the direction of, or in 
        association with--
                    (A) the Nazi government of Germany;
                    (B) any government in any area occupied by the 
                military forces of the Nazi government of Germany;
                    (C) any government which was established with the 
                assistance or cooperation of the Nazi government; or
                    (D) any government which was an ally of the Nazi 
                                 government of Germany.

    Sec. 562. (a) Limitation.--None of the funds appropriated or 
otherwise made available by this Act may be provided to the Government 
of Haiti unless the President reports to Congress that the Government of 
Haiti--
            (1) is conducting thorough investigations of extrajudicial 
        and political killings;
            (2) is cooperating with United States authorities in the 
        investigations of political and extrajudicial killings;
            (3) has substantially completed privatization of (or placed 
        under long-term private management or concession) at least three 
        major public enterprises; and
            (4) has taken action to remove from the Haitian National 
        Police, national palace and residential guard, ministerial 
        guard, and any other public security entity of Haiti those 
        individuals who are credibly alleged to have engaged in or 
        conspired to conceal gross violations of internationally 
        recognized human rights.

    (b) Exceptions.--The limitation in subsection (a) does not apply to 
the provision of humanitarian, electoral, counter-narcotics, or law 
enforcement assistance.
    (c) Waiver.--The President may waive the requirements of this 
section on a semiannual basis if the President determines and certifies 
to the appropriate committees of Congress that such waiver is in the 
national interest of the United States.
    (d) Parastatals Defined.--As used in this section, the term 
           ``parastatal'' means a government-owned enterprise.

    Sec. 563. <<NOTE: 22 USC 2414a note.>>  (a) Foreign Aid Reporting 
Requirement.--In addition to the voting practices of a foreign country, 
the report required to be submitted to Congress under section 406(a) of 
the Foreign Relations Authorization Act, fiscal years 1990 and 1991 (22 
U.S.C. 2414a), shall include a side-by-side comparison of individual 
countries' overall support for the United States at the United Nations 
and the amount of United States assistance provided to such country in 
fiscal year 1997.

[[Page 111 STAT. 2428]]

    (b) United States Assistance.--For purposes of this section, the 
term ``United States assistance'' has the meaning given the term in 
section 481(e)(4) of the Foreign Assistance Act of 1961 (22 U.S.C. 
                              2291(e)(4)).

    Sec. 564. (a) Prohibition on Voluntary Contributions for the United 
Nations.--None of the funds appropriated or otherwise made available by 
this Act may be made available to pay any voluntary contribution of the 
United States to the United Nations (including the United Nations 
Development Program) if the United Nations implements or imposes any 
taxation on any United States persons.
    (b) Certification Required for Disbursement of Funds.--None of the 
funds appropriated or otherwise made available under this Act may be 
made available to pay any voluntary contribution of the United States to 
the United Nations (including the United Nations Development Program) 
unless the President certifies to the Congress 15 days in advance of 
such payment that the United Nations is not engaged in any effort to 
implement or impose any taxation on United States persons in order to 
raise revenue for the United Nations or any of its specialized agencies.
    (c) Definitions.--As used in this section the term ``United States 
person'' refers to--
            (1) a natural person who is a citizen or national of the 
        United States; or
            (2) a corporation, partnership, or other legal entity 
        organized under the United States or any State, territory, 
                  possession, or district of the United States.

    Sec. 565. (a) Not more than $40,000,000 of the funds appropriated in 
this Act under the heading ``Economic Support Fund'' may be made 
available for Turkey.
    (b) Of the funds made available under the heading ``Economic Support 
Fund'' for Turkey, not less than 50 percent of these funds shall be made 
available for the purpose of supporting private nongovernmental 
organizations engaged in strengthening democratic institutions in 
Turkey, providing economic assistance for individuals and communities 
affected by civil unrest, and supporting and promoting peaceful 
solutions and economic development which will contribute to the 
               settlement of regional problems in Turkey.

    Sec. 566. (a) Prohibition of Funds.--None of the funds appropriated 
by this Act to carry out the provisions of chapter 4 of part II of the 
Foreign Assistance Act of 1961 may be obligated or expended with respect 
to providing funds to the Palestinian Authority.
    (b) Waiver.--The prohibition included in subsection (a) shall not 
apply if the President certifies in writing to the Speaker of the House 
of Representatives and the President pro tempore of the Senate that 
waiving such prohibition is important to the national security interests 
of the United States.

[[Page 111 STAT. 2429]]

    (c) Period of Application of Waiver.--Any waiver pursuant to 
subsection (b) shall be effective for no more than a period of six 
months at a time and shall not apply beyond twelve months after 
                         enactment of this Act.

    Sec. 567. None of the funds appropriated or otherwise made available 
by title II of this Act may be made available to the Government of 
Croatia to relocate the remains of Croatian Ustashe soldiers, at the 
   site of the World War II concentration camp at Jasenovac, Croatia.

    Sec. 568. Not later than 120 days after enactment of this Act, the 
Secretary of Labor in consultation with the Secretary of State shall 
provide to the Committees on Appropriations a report addressing labor 
                           practices in Burma.

    Sec. 569. The Government of Haiti shall be eligible to purchase 
defense articles and services under the Arms Export Control Act (22 
U.S.C. 2751 et seq.), for the civilian-led Haitian National Police and 
Coast Guard: Provided, That the authority provided by this section shall 
be subject to the regular notification procedures of the Committees on 
                             Appropriations.

    Sec. 570. None of the funds made available by this Act may be 
provided to any unit of the security forces of a foreign country if the 
Secretary of State has credible evidence that such unit has committed 
gross violations of human rights, unless the Secretary determines and 
reports to the Committees on Appropriations that the government of such 
country is taking effective measures to bring the responsible members of 
the security forces unit to justice: Provided, That nothing in this 
section shall be construed to withhold funds made available by this Act 
from any unit of the security forces of a foreign country not credibly 
alleged to be involved in gross violations of human rights: Provided 
further, That in the event that funds are withheld from any unit 
pursuant to this section, the Secretary of State shall promptly inform 
the foreign government of the basis for such action and shall, to the 
maximum extent practicable, assist the foreign government in taking 
effective measures to bring the responsible members of the security 
                           forces to justice.

    Sec. 571. In any agreement for the sale, transfer, or licensing of 
any lethal equipment or helicopter for Indonesia entered into by the 
United States pursuant to the authority of this Act or any other Act, 
the agreement shall state that the United States expects that the items 
will not be used in East Timor: Provided, That nothing in this section 
shall be construed to limit Indonesia's inherent right to legitimate 
national self-defense as recognized under the United Nations Charter and 
international law.

[[Page 111 STAT. 2430]]

    Sec. 572. (a) Section 576(a)(1) of the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1997, as contained 
in Public Law 104-208, <<NOTE: 22 USC 262k-1.>>  is amended to read as 
follows:
            ``(1) does not have in place a functioning system for 
        reporting to civilian authorities audits of receipts and 
        expenditures that fund activities of the armed forces and 
        security forces;''.

    (b) Section 576(a)(2) of the Foreign Operations, Export Financing, 
and Related Programs Appropriations Act, 1997, as contained in Public 
Law 104-208, is amended to read as follows:
            ``(2) has not provided to the institution information about 
               the audit process requested by the institution.''.

    Sec. 573. (a) Bilateral Assistance.--None of the funds made 
available by this or any prior Act making appropriations for foreign 
operations, export financing and related programs, may be provided for 
any country, entity or canton described in subsection (d).
    (b) Multilateral Assistance.--
            (1) Prohibition.--The Secretary of the Treasury shall 
        instruct the United States executive directors of the 
        international financial institutions to work in opposition to, 
        and vote against, any extension by such institutions of any 
        financial or technical assistance or grants of any kind to any 
        country or entity described in subsection (d).
            (2) Notification.--Not less than 15 days before any vote in 
        an international financial institution regarding the extension 
        of financial or technical assistance or grants to any country or 
        entity described in subsection (d), the Secretary of the 
        Treasury, in consultation with the Secretary of State, shall 
        provide to the Committee on Appropriations and the Committee on 
        Foreign Relations of the Senate and the Committee on 
        Appropriations and the Committee on Banking and Financial 
        Services of the House of Representatives a written justification 
        for the proposed assistance, including an explanation of the 
        United States position regarding any such vote, as well as a 
        description of the location of the proposed assistance by 
        municipality, its purpose, and its intended beneficiaries.
            (3) Definition.--The term ``international financial 
        institution'' includes the International Monetary Fund, the 
        International Bank for Reconstruction and Development, the 
        International Development Association, the International Finance 
        Corporation, the Multilateral Investment Guaranty Agency, and 
        the European Bank for Reconstruction and Development.

    (c) Exceptions.--
            (1) In general.--Subject to paragraph (2), subsections (a) 
        and (b) shall not apply to the provision of--
                    (A) humanitarian assistance;
                    (B) democratization assistance;
                    (C) assistance for cross border physical 
                infrastructure projects involving activities in both a 
                sanctioned country, entity, or canton and a 
                nonsanctioned contiguous country, entity, or canton, if 
                the project is primarily located in and primarily 
                benefits the nonsanctioned country, entity,

[[Page 111 STAT. 2431]]

                or canton and if the portion of the project located in 
                the sanctioned country, entity, or canton is necessary 
                only to complete the project;
                    (D) small-scale assistance projects or activities 
                requested by United States Armed Forces that promote 
                good relations between such forces and the officials and 
                citizens of the areas in the United States SFOR sector 
                of Bosnia;
                    (E) implementation of the Brcko Arbitral Decision;
                    (F) lending by the international financial 
                institutions to a country or entity to support common 
                monetary and fiscal policies at the national level as 
                contemplated by the Dayton Agreement; or
                    (G) direct lending to a non-sanctioned entity, or 
                lending passed on by the national government to a non-
                sanctioned entity.
            (2) Further limitations.--Notwithstanding paragraph (1)--
                    (A) no assistance may be made available by this Act, 
                or any prior Act making appropriations for foreign 
                operations, export financing and related programs, in 
                any country, entity, or canton described in subsection 
                (d), for a program, project, or activity in which a 
                publicly indicted war criminal is known to have any 
                financial or material interest; and
                    (B) no assistance (other than emergency foods or 
                medical assistance or demining assistance) may be made 
                available by this Act, or any prior Act making 
                appropriations for foreign operations, export financing 
                and related programs for any program, project, or 
                activity in a community within any country, entity or 
                canton described in subsection (d) if competent 
                authorities within that community are not complying with 
                the provisions of Article IX and Annex 4, Article II, 
                paragraph 8 of the Dayton Agreement relating to war 
                crimes and the Tribunal.

    (d) Sanctioned Country, Entity, or Canton.--A sanctioned country, 
entity, or canton described in this section is one whose competent 
authorities have failed, as determined by the Secretary of State, to 
take necessary and significant steps to apprehend and transfer to the 
Tribunal all persons who have been publicly indicted by the Tribunal.
    (e) Waiver.--
            (1) In general.--The Secretary of State may waive the 
        application of subsection (a) or subsection (b) with respect to 
        specified bilateral programs or international financial 
        institution projects or programs in a sanctioned country, 
        entity, or canton upon providing a written determination to the 
        Committee on Appropriations and the Committee on Foreign 
        Relations of the Senate and the Committee on Appropriations and 
        the Committee on International Relations of the House of 
        Representatives that such assistance directly supports the 
        implementation of the Dayton Agreement and its Annexes, which 
        include the obligation to apprehend and transfer indicted war 
        criminals to the Tribunal.
            (2) Report.--Not later than 15 days after the date of any 
        written determination under paragraph (e)(1), the Secretary of 
        State shall submit a report to the Committee on

[[Page 111 STAT. 2432]]

        Appropriations and the Committee on Foreign Relations of the 
        Senate and the Committee on Appropriations and the Committee on 
        International Relations of the House of Representatives 
        regarding the status of efforts to secure the voluntary 
        surrender or apprehension and transfer of persons indicted by 
        the Tribunal, in accordance with the Dayton Agreement, and 
        outlining obstacles to achieving this goal.
            (3) Assistance programs and projects affected.--Any waiver 
        made pursuant to this subsection shall be effective only with 
        respect to a specified bilateral program or multilateral 
        assistance project or program identified in the determination of 
        the Secretary of State to Congress.

    (f ) Termination of Sanctions.--The sanctions imposed pursuant to 
subsections (a) and (b) with respect to a country or entity shall cease 
to apply only if the Secretary of State determines and certifies to 
Congress that the authorities of that country, entity, or canton have 
apprehended and transferred to the Tribunal all persons who have been 
publicly indicted by the Tribunal.
    (g) Definitions.--As used in this section--
            (1) Country.--The term ``country'' means Bosnia-Herzegovina, 
        Croatia, and Serbia-Montenegro (Federal Republic of Yugoslavia).
            (2) Entity.--The term ``entity'' refers to the Federation of 
        Bosnia and Herzegovina and the Republika Srpska.
            (3) Canton.--The term ``canton'' means the administrative 
        units in Bosnia and Herzegovina.
            (4) Dayton agreement.--The term ``Dayton Agreement'' means 
        the General Framework Agreement for Peace in Bosnia and 
        Herzegovina, together with annexes relating thereto, done at 
        Dayton, November 10 through 16, 1995.
            (5) Tribunal.--The term ``Tribunal'' means the International 
        Criminal Tribunal for the Former Yugoslavia.

    (h) Role of Human Rights Organizations and Government Agencies.--In 
carrying out this subsection, the Secretary of State, the Administrator 
of the Agency for International Development, and the executive directors 
of the international financial institutions shall consult with 
representatives of human rights organizations and all government 
agencies with relevant information to help prevent publicly indicted war 
criminals from benefitting from any financial or technical assistance or 
  grants provided to any country or entity described in subsection (d).

    Sec. 574. 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, and 1998''; and
                    (B) in subsection (e), by striking ``October 1, 
                1997'' each place it appears and inserting ``October 1, 
                1998''; and
            (2) in section 599E (8 U.S.C. 1255 note) in subsection 
        (b)(2), by striking ``September 30, 1997'' and inserting 
        ``September 30, 1998''.

[[Page 111 STAT. 2433]]

    Sec. 575. (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. 576. 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. 577. <<NOTE: President. Certification.>>  (a) None of the funds 
appropriated under this Act may be made available for the Government of 
the Russian Federation unless within 30 days of the date this section 
becomes effective the President determines and certifies in writing to 
the Committees on Appropriations and the Committee on Foreign Relations 
of the Senate and the Committee on International Relations of the House 
of Representatives that the Government of the Russian Federation has 
implemented no statute, executive order, regulation or similar 
government action that would discriminate, or would have as its 
principal effect discrimination, against religious groups or religious 
communities in the Russian Federation in violation of accepted

[[Page 111 STAT. 2434]]

international agreements on human rights and religious freedoms to which 
the Russian Federation is a party.

    (b) This <<NOTE: Effective date. united states policy regarding 
support for countries of the South Caucasus and Central Asia>>  section 
     shall become effective 150 days after the enactment of this Act

    Sec. 578. (a) Findings.--Congress makes the following findings:
            (1) The ancient Silk Road, once the economic lifeline of 
        Central Asia and the South Caucasus, traversed much of the 
        territory now within the countries of Armenia, Azerbaijan, 
        Georgia, Kazakstan, Kyrgyzstan, Tajikistan, Turkmenistan, and 
        Uzbekistan.
            (2) Economic interdependence spurred mutual cooperation 
        among the peoples along the Silk Road and restoration of the 
        historic relationships and economic ties between those peoples 
        is an important element of ensuring their sovereignty as well as 
        the success of democratic and market reforms.
            (3) The development of strong political and economic ties 
        between countries of the South Caucasus and Central Asia and the 
        West will foster stability in the region.
            (4) The development of open market economies and open 
        democratic systems in the countries of the South Caucasus and 
        Central Asia will provide positive incentives for international 
        private investment, increased trade, and other forms of 
        commercial interactions with the rest of the world.
            (5) The Caspian Sea Basin, overlapping the territory of the 
        countries of the South Caucasus and Central Asia, contains 
        proven oil and gas reserves that may exceed $4,000,000,000,000 
        in value.
            (6) The region of the South Caucasus and Central Asia will 
        produce oil and gas in sufficient quantities to reduce the 
        dependence of the United States on energy from the volatile 
        Persian Gulf region.
            (7) United States foreign policy and international 
        assistance should be narrowly targeted to support the economic 
        and political independence of the countries of the South 
        Caucasus and Central Asia.

    (b) General.--The policy of the United States in the countries of 
the South Caucasus and Central Asia should be--
            (1) to promote sovereignty and independence with democratic 
        government;
            (2) to assist actively in the resolution of regional 
        conflicts;
            (3) to promote friendly relations and economic cooperation;
            (4) to help promote market-oriented principles and 
        practices;
            (5) to assist in the development of infrastructure necessary 
        for communications, transportation, and energy and trade on an 
        East-West axis in order to build strong international relations 
        and commerce between those countries and the stable, democratic, 
        and market-oriented countries of the Euro-Atlantic Community; 
        and
            (6) to support United States business interests and 
        investments in the region.

    (c) Definition.--In this section, the term ``countries of the South 
Caucasus and Central Asia'' means Armenia, Azerbaijan,

[[Page 111 STAT. 2435]]

Georgia, Kazakstan, Kyrgystan, Tajikistan, Turkmenistan, and Uzbekistan.

    Sec. 579. (a) OPIC.--Section 239(f ) of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2199(f )) is amended by inserting ``, or Pakistan'' 
after ``China''.
    (b) Trade and Development.--It is the sense of Congress that the 
Director of the Trade and Development Agency should use funds made 
available to carry out the provisions of section 661 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2421) to promote United States exports 
                              to Pakistan.

    Sec. 580. <<NOTE: President. AUTHORITY TO ISSUE INSURANCE AND EXTEND 
FINANCING>>  The President shall provide to the Congress a detailed 
account of all Federal agency obligations and expenditures for climate 
change programs and activities, domestic and international, for fiscal 
year 1997, planned obligations for such activities in fiscal year 1998, 
and any plan for programs thereafter in the context of negotiations to 
amend the Framework Convention on Climate Change (FCCC) to be provided 
to the appropriate congressional committees no later than November 15, 
                                  1997.

    Sec. 581. (a) In General.--Section 235(a) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2195(a)) is amended--
            (1) by striking paragraphs (1) and (2)(A) and inserting the 
        following:
            ``(1) Insurance and financing.--(A) The maximum contingent 
        liability outstanding at any one time pursuant to insurance 
        issued under section 234(a), and the amount of financing issued 
        under sections 234(b) and (c), shall not exceed in the aggregate 
        $29,000,000,000.'';
            (2) by redesignating paragraph (3) as paragraph (2); and
            (3) by amending paragraph (2) (as so redesignated) by 
        striking ``September 30, 1997'' and inserting ``September 30, 
        1999''.

    (b) Conforming Amendment.--Paragraph (2) of section 235(a) of that 
Act (22 U.S.C. 2195(a)), as redesignated by subsection (a), is further 
amended by striking ``(a) and (b)'' and inserting ``(a), (b), and (c)''.

    Sec. 582. (a) Withholding of Assistance.--Except as provided in 
subsection (b), whenever the President determines and certifies to 
Congress that the government of any country is violating any sanction 
against Libya imposed pursuant to United Nations Security Council 
Resolution 731, 748, or 883, then not less than 5 percent of the funds 
allocated for the country under section 653(a) of the Foreign Assistance 
Act of 1961 out of appropriations in this Act shall be withheld from 
obligation and expenditure for that country.

[[Page 111 STAT. 2436]]

    (b) Exception.--The requirement to withhold funds under subsection 
(a) shall not apply to funds appropriated in this Act for allocation 
under section 653(a) of the Foreign Assistance Act of 1961 for 
development assistance or for humanitarian assistance.
    (c) Waiver.--Funds may be provided for a country without regard to 
subsection (a) if the President determines that to do so is in the 
            national security interest of the United States.

    Sec. 583. Section 2401 of title 18, United States Code (Public Law 
104-192; the War Crimes <<NOTE: 18 USC 2441.>>  Act of 1996) is amended 
as follows--
            (1) in subsection (a), by striking ``grave breach of the 
        Geneva Conventions'' and inserting ``war crime'';
            (2) in subsection (b), by striking ``breach'' each place it 
        appears and inserting ``war crime''; and
            (3) so that subsection (c) reads as follows:

    ``(c) Definition.--As used in this section the term `war crime' 
means any conduct--
            ``(1) defined as a grave breach in any of the international 
        conventions signed at Geneva 12 August 1949, or any protocol to 
        such convention to which the United States is a party;
            ``(2) prohibited by Article 23, 25, 27, or 28 of the Annex 
        to the Hague Convention IV, Respecting the Laws and Customs of 
        War on Land, signed 18 October 1907;
            ``(3) which constitutes a violation of common Article 3 of 
        the international conventions signed at Geneva, 12 August 1949, 
        or any protocol to such convention to which the United States is 
        a party and which deals with non-international armed conflict; 
        or
            ``(4) of a person who, in relation to an armed conflict and 
        contrary to the provisions of the Protocol on Prohibitions or 
        Restrictions on the Use of Mines, Booby-Traps and Other Devices 
        as amended at Geneva on 3 May 1996 (Protocol II as amended on 3 
        May 1996), when the United States is a party to such Protocol, 
            willfully kills or causes serious injury to civilians.''.

    Sec. 584. (a) Expanded IMET.--The Secretary of Defense, in 
consultation with the Secretary of State, should make every effort to 
ensure that approximately 30 percent of the funds appropriated in this 
Act for ``International Military Education and Training '' for the cost 
of Latin American participants in IMET programs will be disbursed for 
the purpose of supporting enrollment of such participants in expanded 
IMET courses.

[[Page 111 STAT. 2437]]

    (b) Civilian Participation.--The Secretary of State, in consultation 
with the Secretary of Defense, should identify sufficient numbers of 
qualified, non-military personnel from countries in Latin America so 
that approximately 25 percent of the total number of individuals from 
Latin American countries attending United States supported IMET programs 
and the Center for Hemispheric Defense Studies at the National Defense 
University are civilians.
    (c) Report.--Not later than twelve months after the date of 
enactment of this Act, the Secretary of Defense, in consultation with 
the Secretary of State, shall report in writing to the appropriate 
committees of the Congress on the progress made to improve military 
training of Latin American participants in the areas of human rights and 
civilian control of the military. The Secretary shall include in the 
report plans for implementing additional expanded IMET programs for 
            Latin America during the next three fiscal years.

    Sec. 585. <<NOTE: Reports. ASSISTANCE FOR THE MIDDLE EAST>>  None of 
the funds appropriated or otherwise made available by this Act may be 
provided to the central Government of the Democratic Republic of Congo 
until such time as the President reports in writing to the Congress that 
the central Government of the Democratic Republic of Congo is 
cooperating fully with investigators from the United Nations in 
accounting for human rights violations committed in the Democratic 
                Republic of Congo or adjacent countries.

    Sec. 586. Of the funds appropriated by this Act under the headings 
``Economic Support Fund'', ``Foreign Military Financing '', 
``International Military Education and Training '', ``Peacekeeping 
Operations'', for refugees resettling in Israel under the heading 
``Migration and Refugee Assistance'', and for assistance for Israel to 
carry out provisions of chapter 8 of part II of the Foreign Assistance 
Act of 1961 under the heading ``Nonproliferation, Anti-Terrorism, 
Demining, and Related Programs'', not more than a total of 
$5,402,850,000 may be made available for Israel, Egypt, Jordan, Lebanon, 
the West Bank and Gaza, the Israel-Lebanon Monitoring Group, the 
Multinational Force and Observers, the Middle East Regional Democracy 
Fund, Middle East Regional Cooperation, and Middle East Multilateral 
Working Groups: Provided, That any funds that were appropriated under 
such headings in prior fiscal years and that were at the time of 
enactment of this Act obligated or allocated for other recipients may 
not during fiscal year 1998 be made available for activities that, if 
funded under this Act, would be required to count against this ceiling: 
Provided further, That funds may be made available notwithstanding the 
requirements of this section if the President determines and certifies 
to the Committees on Appropriations that it is important to the national 
security interest of the United States to do so and any such additional 
funds shall only be provided through the regular notification procedures 
of the Committees on Appropriations.

[[Page 111 STAT. 2438]]

    Sec. 587. The first proviso of subsection (k) under the heading 
``Assistance for the New Independent States of the Former Soviet Union'' 
in the Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1997, as contained in Public Law 104-
208, <<NOTE: 110 Stat. 3009-129. ENTERPRISE FUND RESTRICTIONS>>  is 
amended by striking ``not less than'' and inserting in lieu thereof ``up 
                                  to''.

    Sec. 588. Section 201(l) of the Support for East European Democracy 
Act (22 U.S.C. 5421(l)) is amended to read as follows:
    ``(l) Limitation on Payments to Enterprise Fund Personnel.--
            ``(1) No part of the funds of an Enterprise Fund shall inure 
        to the benefit of any board member, officer, or employee of such 
        Enterprise Fund, except as salary or reasonable compensation for 
        services subject to paragraph (2).
            ``(2) An Enterprise Fund shall not pay compensation for 
        services to--
                    ``(A) any board member of the Enterprise Fund, 
                except for services as a board member; or
                    ``(B) any firm, association, or entity in which a 
                board member of the Enterprise Fund serves as partner, 
                director, officer, or employee.
            ``(3) Nothing in paragraph (2) shall preclude payment for 
        services performed before the date of enactment of this 
        subsection nor for arrangements approved by the grantor and 
           notified in writing to the Committees on Appropriations.''.

    Sec. 589. The Secretary of the Treasury should instruct the United 
States executive directors of the international financial institutions 
to use the voice and vote of the United States to oppose loans to the 
   Government of Cambodia, except loans to support basic human needs.

    Sec. 590. Not to exceed 5 percent of any appropriation other than 
for administrative expenses made available for fiscal year 1998 for 
programs under title I of this Act may be transferred between such 
appropriations for use for any of the purposes, programs and activities 
for which the funds in such receiving account may be used, but no such 
appropriation, except as otherwise specifically provided, shall be 
increased by more than 25 percent by any such transfer: Provided, That 
the exercise of such authority shall be subject to the regular 
notification procedures of the Committees on Appropriations.

[[Page 111 STAT. 2439]]

    Sec. 591. For the cost, as defined in section 502 of the 
Congressional Budget Act of 1974, of direct loans and loan guarantees in 
support of the development objectives of the Foreign Assistance Act of 
1961, up to $7,500,000, which amount may be derived by transfer from 
funds appropriated by this Act to carry out part I of the Foreign 
Assistance Act of 1961 and funds appropriated by this Act under the 
heading ``Assistance for Eastern Europe and the Baltic States'', to 
remain available until expended: Provided, That up to $500,000 of the 
funds appropriated by this Act under the heading ``Operating Expenses of 
the Agency for International Development'' may be made available for 
administrative expenses to carry out 
such <<NOTE: Applicability. authorization for population planning>>  
programs: Provided further, That the provisions of section 107A(d) 
(relating to general provisions applicable to development credit 
authority) of the Foreign Assistance Act of 1961, as added by section 
306 of H.R. 1486 as reported by the House Committee on International 
Relations on May 9, 1997, shall be applicable to direct loans and loan 
guarantees provided under this paragraph: Provided further, That direct 
loans or loan guarantees under this paragraph may not be provided until 
the Director of the Office of Management and Budget has certified to the 
Committees on Appropriations that the Agency for International 
Development has established a credit management system capable of 
effectively managing the credit programs funded under this heading, 
including that such system: (1) can provide accurate and timely 
provision of loan and loan guarantee data; (2) contains information 
control systems for loan and loan guarantee data; (3) is adequately 
 staffed; and (4) contains appropriate review and monitoring procedures.

    Sec. 592. (a) Not to exceed $385,000,000 of the funds appropriated 
in title II of this Act may be available for population planning 
activities or other population assistance.
    (b) Such funds may be apportioned only on a monthly basis, and such 
monthly apportionments may not exceed 8.34 percent of the total 
available for such activities.
    This Act may be cited as the ``Foreign Operations, Export Financing, 
and Related Programs Appropriations Act, 1998''.

    Approved November 26, 1997.

LEGISLATIVE HISTORY--H.R. 2159 (S. 955):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 105-176 (Comm. on Appropriations) and 105-401 (Comm. 
of Conference).
SENATE REPORTS: No. 105-35 accompanying S. 955 (Comm. on 
Appropriations).
CONGRESSIONAL RECORD, Vol. 143 (1997):
            July 30, Sept. 3, 4, considered and passed House.
            Sept. 5, considered and passed Senate, amended, in lieu of 
                S. 955.
            Nov. 12, House agreed to conference report.
            Nov. 13, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997):
            Nov. 26, Presidential statement.

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