Summary: H.R.2655 — 101st Congress (1989-1990)All Information (Except Text)

Bill summaries are authored by CRS.

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Passed House amended (06/29/1989)

International Cooperation Act of 1989 - Title I: Economic Assistance - Amends the Foreign Assistance Act of 1961 to revise policy provisions concerning economic assistance. Sets forth the objectives of U.S. development cooperation policy and economic assistance programs as the: (1) promotion of broad based economic growth; (2) improvement of resource management to bring about environmentally and economically sustainable patterns of development; (3) alleviation of poverty through the development of human resources; and (4) promotion of democracy and political, social, and economic pluralism.

Requires the President to use the authorities of this Act to provide assistance to meet long-term development needs in developing countries. Authorizes the President to provide such assistance to promote specified activities contributing to broad based, sustainable, and participatory development and economic growth.

Directs the President to develop a plan to ensure that U.S. development assistance contributes measurably to eradicating the worst aspects of absolute poverty by the year 2000 and to seek international cooperation in achieving the goals of such plan. Requires such plan to include the following goals for the year 2000: (1) reduction of under-five mortality rates by at least 50 percent of the 1980 rates or to not more than 70 per 1000 live births, whichever achieves the greatest reduction; (2) achievement of universal primary education and at least 80 percent female literacy for age groups defined by each country; (3) reduction of the proportion of the population living in absolute poverty by at least 50 percent of the 1980 proportion; and (4) such other quantifiable goals that the President determines to be crucial to the elimination of poverty. Directs the President to submit such plan to the Congress. Authorizes appropriations for FY 1990 and 1991.

Authorizes appropriations for FY 1990 and 1991 for family planning projects. Earmarks funds for child survival and health activities out of amounts made available for development and economic support assistance for FY 1990 and 1991. Requires the President to use such assistance and assistance for famine recovery and development in Africa for: (1) special health needs of children and mothers; and (2) activities relating to research on and the treatment and control of acquired immune deficiency syndrome (AIDS).

Directs the President to use assistance available under this title to improve the performance of institutions of democracy and to promote pluralism. Outlines programs eligible for funding under this title, including programs to: (1) encourage the growth of independent associations; (2) increase awareness of internationally recognized human rights and to support victims of human rights abuses; (3) support a free and independent press; (4) provide training, scholarships, and exchanges for continuing legal education and to promote the role of the bar in judicial selection, ethical standards, and legal reform; and (5) increase the availability of legal publications and to support the revision of legal codes and procedures. Requires a substantial portion of such assistance to be provided to nongovernmental organizations. Provides that funds made available for famine recovery and development in Africa may be used only for countries in Subsaharan Africa.

Increases the amount of grants that may be made available to nongovernmental organizations in South Africa promoting efforts to foster a just society and to help victims of apartheid. Earmarks a specified amount of funds made available under this title for assistance to disadvantaged South Africans, to include scholarships, assistance to promote the participation of disadvantaged South Africans in trade unions, private enterprise, and alternative education and community development programs.

Authorizes the President to use funds available under this title to: (1) support activities to reduce illicit cultivation of narcotic and psychotropic drugs and other controlled substances by stimulating broader development opportunities; and (2) increase awareness of the effects of production and trafficking of such substances on source and transit countries.

Permits the deposit into the private sector revolving fund of a specified amount of funds made available under this title for FY 1990 and 1991. Grants the President (currently, the agency responsible for administering this section) certain authorities with respect to the revolving fund. Removes a restriction on the amount required to be available in the guaranty reserve of such fund.

Authorizes funds made available under this title to be used for: (1) economic and social development through regional cooperation and integration; (2) development education programs for U.S. citizens; and (3) U.S. research and education institutions for developing and carrying out programs for the economic and social development of developing countries.

Requires agencies responsible for environmental programs in developing countries to prepare initial examinations of such programs to ensure that such programs are environmentally sustainable.

Declares that beneficiary countries should bear a share of the costs of development assistance programs under this Act.

Prohibits funds made available under this title from being used for military or paramilitary purposes.

Authorizes the President to furnish economic support assistance to countries and organizations to promote economic or political stability. Authorizes appropriations for FY 1990 and 1991 for such assistance.

Declares that economic support assistance should be provided through commodity import programs, project assistance, sector programs, or the provision of U.S. goods and services. Permits such assistance to be provided as a cash transfer only pursuant to an agreement requiring that the country spend an amount equal to such transfer to purchase U.S. goods and services. Requires such agreements to include provisions to ensure that representatives of the U.S. Comptroller General have access to necessary records and personnel for monitoring and auditing purposes. Exempts from such requirements countries which: (1) receive less than $25,000,000 cash transfer assistance annually; (2) have certain agreements with the United States; or (3) are parties to the Camp David Accords. Authorizes the President to waive the requirements of this section when it is in the national interest. Requires the President to report such waivers to the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations.

Authorizes the President to make voluntary grants to international organizations to carry out this Act. Authorizes appropriations for FY 1990 and 1991. Earmarks specified amounts of such appropriations for the United Nations Development Program, the United Nations Children's Fund, and the United Nations University. Earmarks a specified amount of funds made available under this title for the International Fund for Agricultural Development. Authorizes funds to be earmarked for the International Atomic Energy Agency only if the Secretary of State determines and reports to the Congress that Israel is not being denied the right to participate in the Agency.

Prohibits the United States from making contributions to the United Nations Relief and Works Agency for Palestine Refugees in the Near East unless the Agency assures that no U.S. contribution is used to assist any refugee who: (1) is receiving military training as a member of the Palestine Liberation Organization (PLO) or any other guerrilla organization; or (2) has engaged in any act of terrorism.

Requires the President to report annually to the Congress (currently, semiannually) on U.S. voluntary contributions to international organizations.

Applies evaluation and auditing procedures for the International Bank for Reconstruction and Development and the Asian Development Bank to the International Development Association, the International Finance Corporation, the Multilateral Investment Guarantee Agency, the Inter-American Investment Corporation, the African Development Bank, the African Development Fund, and the Asian Development Fund.

Expresses the sense of the Congress that: (1) the United Nations Development Program should allocate at least $8,000,000 per fiscal year to develop and implement area management plans to ensure the protection of national parks and reserves of global biological significance under immediate threat of the loss of biological diversity; and (2) consideration be given to providing grants to nongovernmental organizations to undertake such activities. Requests the President to instruct the U.S. representative to the Administration and Governing Committee of the United Nations Development Program to express the sense of the Congress with respect to such plans.

Requires the President, in FY 1990 and 1991, to designate at least five countries in which development assistance or assistance for famine recovery and development in Africa is furnished for the purpose of evaluating programs of the United Nations to which U.S. voluntary contributions are made.

Revises provisions regarding the Overseas Private Investment Corporation (OPIC). Directs OPIC to report to the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations prior to issuing insurance for civil strife or business interruptions in instances where risks are significantly expanded. Requires OPIC to maintain development impact profiles on each insured, financed, or reinsured project. Directs OPIC to: (1) give preferences to projects sponsored by U.S. small businesses; and (2) maintain the proportion of projects sponsored by or significantly involving such businesses at at least 30 percent of all projects.

Authorizes OPIC to establish a revolving fund to be available solely for a pilot equity finance program. Authorizes (currently, requires) OPIC to charge fees for any service performed under this title. Authorizes the Inspector General of the administering agency (currently, the Agency for International Development) to conduct audits, investigations, and security activities of OPIC. Eliminates OPIC's exemption from Federal taxation.

Revises the authorities of the Director of the Trade and Development Agency (replaces the Trade and Development Program). Requires the Agency to disseminate information about its activities to the private sector. Sets forth the duties of the Inspector General of the administering agency with respect to the Agency. Authorizes appropriations for FY 1990 and 1991.

Authorizes appropriations for FY 1990 and 1991 for international disaster assistance. Permits the President to appoint a Special Coordinator for International Disaster Assistance to: (1) promote maximum effectiveness and coordination in responses to foreign disasters by U.S. agencies and between the United States and other donors; and (2) formulate and update contingency plans for providing such disaster relief.

Authorizes appropriations for FY 1990 and 1991 for American schools, libraries, and hospital centers abroad.

Authorizes the President (currently, the administering agency) to provide guarantees to the Export-Import Bank in connection with liabilities incurred with respect to exports to Central America. Revises a provision concerning limits on guarantee commitments to limit to $200,000,000 outstanding commitments of contingent liability for loan principal during any fiscal year. Authorizes the Bank, in connection with guarantees or insurance, to charge fees and premiums commensurate with the Bank's administrative costs and the risks covered by the administering agency's guarantees. Terminates the President's authority to guarantee liabilities after FY 1992.

Revises provisions concerning the housing and urban development guarantee program. Raises the limit on: (1) the face value of guarantees with respect to any country; (2) the average face value of guarantees; and (3) the total principal amount of guarantees issued. Terminates authorities with respect to housing guarantees after FY 1993.

Deems to be payments made by eligible developing countries to the United States for economic assistance loans: (1) local currency deposited in local currency accounts to be used for specific development purposes; and (2) payments waived by the President under certain conditions. Directs the President to notify specified congressional committees on any approved debt relief.

Authorizes the President to use funds made available under this title for grants to enable nongovernmental organizations to: (1) purchase debt obligations owed by developing countries to commercial lending institutions or private parties; and (2) cancel such obligations subject to the President's approval, to the extent that such country makes available assets or policy commitments to promote the objectives of this title.

Authorizes Federal agencies to: (1) furnish services and commodities on an advance-of-funds or reimbursement basis to friendly countries, international organizations, the American Red Cross, and private voluntary organizations registered with and approved by the administering agency; and (2) contract with individuals for personal services abroad or in the United States to perform such services in lieu of Federal employees.

Authorizes appropriations for FY 1990 and 1991 for operating expenses of the agency administering this title and of the Office of the Inspector General of such agency. Permits funds authorized to be appropriated under this title for development assistance, economic support assistance, or assistance for famine recovery and development in Africa to be used for such operating expenses.

Requires the administrator of the administering agency to: (1) establish a system of quantitative and qualitative indicators of country, regional, and centrally funded program and development achievement; (2) create and support systems of data collection and analysis to produce objective and timely reports; (3) strengthen the linkage between evaluation findings and policy and program formulation by the agency and assure the widest possible distribution of formal evaluation findings; and (5) develop with the Inspector General of the agency an appropriate division of responsibility and system of coordination. Directs the administrator to establish within such agency a Center for Development Information and Evaluation. Requires the Director of the Center to report annually to the Congress on: (1) progress toward achieving the four basic objectives set forth under this title; and (2) a country-by-country analysis of the impact on economic development in each country during the preceding three to five years of U.S. economic assistance programs, with a discussion of U.S. interests that were served by such assistance.

Directs the administrator to establish a Center for University Cooperation in Development and a Center for Voluntary Cooperation in Development. Provides that the respective purposes of such centers shall be to strengthen the partnership for development between the U.S. Government and: (1) U.S. institutions of higher education engaged in education, research, and public service programs relevant to developing countries; and (2) U.S. private voluntary organizations, cooperatives, and credit unions engaged in activities relevant to such countries. Establishes a private sector advisory board for the administering agency. Requires the administrator to establish procedures to ensure coordination of the activities and recommendations of such boards.

Directs the administrator to study the feasibility of implementing an Index of Economic Freedom to evaluate the economic freedom and opportunities of individuals in countries which are recipients of development assistance or assistance for famine recovery and development in Africa. States that the Index would assign a numerical rating for property rights, business regulations, informal sector, wage and price controls, taxation, trade policy, restriction on investment and capital flows, size of sector, and banking based on the degree to which each such factor reflects the degree of economic freedom and opportunity in a country. Requires the administrator to report to the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations on the results of such study.

Title II: Military Assistance and Sales Programs - Chapter 1: Consolidation of Military Assistance Accounts - Revises U.S. policy provisions concerning military assistance to express needs for more equitable distribution of collective defense responsibilities and multilateral controls on transfers of defense articles and services.

Revises the President's authority to furnish military assistance to friendly countries to permit the President to: (1) finance the sale of defense articles or services; or (2) finance the procurement of such articles (under certain circumstances and with notification of the appropriate congressional committees) by any member country of the North Atlantic Treaty Organization (NATO) or any major non-NATO ally through leases from U.S. commercial suppliers.

Requires sales under the Defense Trade and Export Control Act which are wholly paid from funds made available on a grant basis under this Act or were transferred or made available under former authorities prior to this Act's enactment to be priced to exclude the costs of salaries of members of the U.S. armed forces, other than members of the Coast Guard.

Prohibits members of the U.S. armed forces detailed to carry out certain services under this Act from performing duties of a combat nature.

Prohibits funds made available under this chapter from being used for any research or development activities, manufacturing or production, or other work performed by a foreign government or firm pursuant to an offset arrangement with a U.S. firm in connection with the procurement of defense articles or services by a foreign country. Makes such prohibition inapplicable to funds made available for Israel for FY 1990 and 1991. Prohibits assistance from being furnished under this chapter in any case involving coproduction or licensed production outside the United States of any defense article of U.S. origin unless the President furnishes full information on the proposed transaction to the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations. Prohibits the obligation of certain assistance for the procurement of: (1) any vessel of war built pursuant to a prime contract awarded to a foreign shipyard; or (2) any weapons system or other major system for a vessel of war built pursuant to such a contract awarded to a foreign rather than a U.S. shipyard because of unfair foreign competition. Exempts from such prohibition vessels of war built in the foreign country which is the recipient of such assistance or built pursuant to a prime contract signed before the effective date of this Act. Requires assistance agreements under this chapter to grant the U.S. Government the express right to deobligate any furnished funds that have not been committed for an approved use by the end of a 3-year period.

Authorizes assistance provided under this chapter to be on a grant or credit basis. Outlines criteria to be considered by the President in determining the terms of assistance. Requires repayment in U.S. dollars within 12 years of the signature of a loan agreement for credit assistance. Provides that the interest rate on such loans shall be at least five percent annually. Outlines disbursement procedures for funds used to finance the procurement of defense articles and services.

Makes provisions concerning eligibility for the receipt of defense articles or services applicable to the financing of such articles or services. Makes defense articles sold or leased under the Defense Trade and Export Control Act or furnished under predecessor foreign assistance or military sales legislation subject to the eligibility provisions of this title.

Raises the ceiling on the value of defense articles and services authorized to be made available under certain emergencies.

Authorizes the President to transfer excess defense articles to any country: (1) which is a major illicit drug producing country in Latin America and the Caribbean with a democratic government; and (2) whose armed forces do not engage consistently in gross violations of human rights. Requires such countries to ensure that such articles will be used only in support of antinarcotic activities.

Declares that the Congress intends that excess defense articles be made available to maintain the military balance in the Eastern Mediterranean. Requires the President to ensure, over a 3-year period beginning in FY 1990, that the ratio of the value of such articles made available for Turkey to those made available for Greece closely approximates the ratio of the amount of foreign military financing provided for Turkey to the amount provided for Greece.

Directs the Secretary of State to determine the eligibility of illicit drug producing countries to receive excess defense articles under this Act. Limits the aggregate value of such articles transferred to such a country to $10,000,000 per fiscal year.

Limits the aggregate acquisition cost to the United States of excess defense articles ordered for foreign countries or organizations pursuant to this chapter or to sales under the Defense Trade and Export Control Act to $250,000,000 (exclusive of ships and onboard stores and supplies).

Directs the President to establish controls to make financed commercial arms sales subject to monitoring and auditing requirements no less stringent in accountability than requirements of Federal Acquisition Regulation applicable to sales under the Defense Trade and Export Control Act relating to improper business practices and personal conflict of interest, quality assurance, payment, price, and profit.

Authorizes appropriations to carry out this chapter for FY 1990 and 1991. Earmarks specified amounts of such appropriations for financing government-to-government procurement under the Defense Trade and Export Control Act. Sets aside two percent of such appropriations for assistance to otherwise eligible countries for which the Congress has not by law specified an amount of assistance. Requires the President, at least 15 days before obligating funds for a country under this chapter, to notify specified congressional committees.

Revises provisions concerning the location of stockpiles. Places ceilings on the value of additions to stockpiles for FY 1990 and 1991.

Requires at least one member of the U.S. armed forces assigned to each country overseas to be primarily responsible for monitoring international security assistance and sales programs. Prohibits more than six members of the armed forces from being assigned to a country in Africa (other than Egypt, Morocco, or Tunisia) unless the President determines and reports to the Congress that U.S. interests require that more than six members be assigned to such country.

Authorizes the President to furnish military education and training to foreign military and civilian personnel. Authorizes appropriations for FY 1990 and 1991 for: (1) international military education and training; and (2) peacekeeping activities.

Makes technical and conforming amendments to the Arms Export Control Act. Revises a provision concerning the Guaranty Reserve Fund under such Act. Repeals a provision concerning the availability of funds for procurement of defense articles and services outside the United States.

Makes requirements under the Foreign Assistance Act of 1961 concerning the disposition of defense articles and services inapplicable on the effective date of this title.

Chapter 2: Foreign Military Sales Program - Amends the Arms Export Control Act to rename such Act as the Defense Trade and Export Control Act. Repeals a provision concerning purposes for military sales or leases. Deems references to the Arms Export Control Act to be references to the Defense Trade and Export Control Act.

Requires the President to take the following steps to address the financial management problems that exist with respect to payments on account of sales under such Act: (1) establish a new account for the deposit of funds with respect to any sale of defense articles or services or certain design and construction services entered into after FY 1990 in order to isolate financial transactions relating to new sales; (2) establish a centralized accounting system with respect to payments under such Act; (3) improve coordination and uniformity among the accounting and billing systems maintained by each of the military services with respect to such sales; and (4) reconcile the discrepancies between reported disbursements and reported performance with respect to sales which are still being implemented and those which have been completed.

Directs the President to notify the Congress at least 30 days before designating a country as a major non-NATO ally or terminating such a designation. Deems Australia, Egypt, Israel, Japan, and the Republic of Korea to have been so designated by the President.

Revises provisions concerning: (1) presidential certifications and congressional procedures for certain arms transfers, export and manufacturing licenses, and leases of defense articles to foreign countries or international organizations; and (2) contents of required reports on arms sales, coproduction agreements, and price and availability estimates.

Applies certain sanctions if: (1) a foreign party to a coproduction agreement violates the restrictions in such agreement regarding unauthorized third party transfers or dispositions of defense articles or services or technical data provided under such agreement; and (2) the violation is substantial. Lists such sanctions as: (1) the suspension of the authority or license to produce defense articles abroad granted by all coproduction agreements to which such foreign party is a party; and (2) a prohibition on the issuance or approval of licenses for such party. Requires the President to report to the Congress with respect to such determinations.

Authorizes up to $500,000 of registration fees for munitions control licenses to be credited to a Department of State account.

Disqualifies for financing under the Foreign Assistance Act of 1961 for 12 months any contracts of a person convicted or debarred for a violation of international traffic in arms regulations under the Defense Trade and Export Control Act.

Requires the biennial review of international traffic in arms regulations.

Revises provisions regarding administrative surcharges for the sale of defense articles or services from Department of Defense stocks.

Prohibits charges for defense articles that are not major defense equipment and that are sold or approved for export under the Defense Trade and Export Control Act from including nonrecurring research, development, or production costs.

Prohibits the sale of antitank shells containing a depleted uranium component to any country except a NATO member country, a major non-NATO ally, or Pakistan.

Repeals provisions concerning: (1) discrimination; (2) restraint in arms sales to Subsaharan Africa; (3) foreign military sales credit standards; (4) foreign military sales to less developed countries; and (5) technical amendments to the Foreign Assistance Act of 1961.

Title III: Assistance to Combat International Terrorism and Narcotics Trafficking - Chapter I: Permanent Authorities, Requirements, and Restrictions - Amends the Foreign Assistance Act of 1961 to incorporate provisions of the International Security and Development Cooperation Act of 1985 concerning coordination of U.S. antiterrorism assistance. Permits antiterrorism training services to be conducted outside the United States under certain circumstances. Authorizes appropriations for antiterrorism assistance for FY 1990 and 1991.

Prohibits the United States from providing any assistance under this Act, the Agricultural Trade Development and Assistance Act of 1954, the Peace Corps Act, or the Export-Import Bank Act of 1945 to any country 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. Waives such prohibition if the President determines that national security or humanitarian reasons justify such waiver. Declares that if sanctions are imposed upon a country because of its support for international terrorism, the President should call upon other countries to impose similar sanctions on such country.

Incorporates provisions of the Anti-Drug Abuse Act of 1988 concerning coordination of U.S. anti-narcotics assistance into the Foreign Assistance Act of 1961. Authorizes appropriations for FY 1990 and 1991 for narcotics control assistance.

Directs the President to monitor and report to the Congress on the use of herbicides for aerial eradication of drug crops (currently, coca) and any impacts on the environment and human health.

Incorporates provisions of a specified Act concerning retention of title to aircraft and records of aircraft use into the Foreign Assistance Act of 1961.

Waives certain restrictions on assistance to countries in arrears or default to the United States to permit assistance to such countries (if major illicit drug producers) if such countries had verifiable net reductions in the production of controlled substances. Authorizes the President to release Bolivia, Colombia, and Peru from obligations to the U.S. Government of principal and interest on U.S. loans or credits if the President determines that such countries are participating in a program for the use of herbicides for the aerial eradication of coca.

Incorporates provisions of the International Narcotics Control Act of 1988 concerning reporting requirements for the Secretary of State into the Foreign Assistance Act of 1961.

Revises provisions concerning reporting requirements and certification procedures with respect to international narcotics control.

Chapter 2: Assistance for Narcotics-Related Purposes - Requires the Secretary of State to use at least $500,000 of narcotics control funds in each of FY 1990 and 1991 to finance the testing and use of safe and effective herbicides for the aerial eradication of coca.

Earmarks $1,000,000 in foreign military financing funds for each of FY 1990 and 1991 for defensive arms for aircraft used in narcotics control eradication or interdiction efforts.

Earmarks $2,000,000 in military education and training assistance for each of FY 1990 and 1991 for education and training in the operation and maintenance of equipment used in narcotics control interdiction and eradication efforts for eligible countries in Latin America and the Caribbean. Permits the provision of such assistance only to foreign law enforcement agencies or other units organized for the specific purpose of narcotics enforcement. Allows the provision of narcotics control assistance and military assistance for antinarcotics efforts only to Latin American and Caribbean countries which meet the same eligibility requirements as those specified under title II for the receipt of excess defense articles. Waives restrictions of the Foreign Assistance Act of 1961 concerning police training and prohibitions on foreign military financing (for FY 1991) with respect to such countries. Directs the President to report to the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations on the provision of military assistance for antinarcotics efforts. Earmarks a specified amount of funds made available for foreign military financing for FY 1990 and 1991 to provide such assistance to Caribbean and Latin American countries.

Chapter 3: Provisions Relating to Assistance Recipients - Prohibits the provision of economic and military assistance to Bolivia unless the President certifies that Bolivia has enacted legislation to establish legal coca requirements and make unlicensed coca production illegal.

Authorizes the President to make certain certifications under the Foreign Assistance Act of 1961 with respect to Bolivia only if the Government of Bolivia; (1) has entered into the narcotics cooperation agreement with the United States specified in the International Security and Development Cooperation Act of 1985; (2) has fully achieved the eradication targets specified in such agreement; and (3) has begun a program of forced eradication of illicit coca cultivation if the targets for voluntary eradication are not being met or continued. Outlines elements to be included in a certain project agreement document for Bolivia for FY 1990 and 1991.

Requires the President, in making determinations with respect to Peru concerning narcotics control cooperation, to give foremost consideration to whether Peru made substantial progress in meeting its coca eradication targets during the previous year.

Limits the amount of narcotics control assistance to be provided to Mexico in FY 1990 and 1991. Requires congressional notification if additional assistance to Mexico is to be made.

Waives restrictions on U.S. assistance for major drug-transit countries for FY 1990 and 1991 if the President makes a specific certification to the Congress.

Earmarks a specified amount of funds made available for narcotics control assistance for FY 1990 and 1991 to any country which: (1) is a major illicit drug producing country because of coca production; and (2) met or exceeded its coca eradication targets or has otherwise taken actions which have significantly reduced the amount of cocaine flowing to the United States.

Title IV: Special Authorities, Restrictions on Assistance, and Reports - Amends the Foreign Assistance Act of 1961 to permit up to ten percent of funds made available to carry out such Act to be transferred to, and used for, any other account under such Act. Prohibits the transfer of funds made available for: (1) foreign military financing; (2) OPIC; (3) the trade credit insurance program; (4) the housing and urban development guarantee program; or (5) assistance for famine recovery and development in Africa. Limits the increase in any account due to such transfers to 20 percent of the amount otherwise made available to such account. Permits such transfers only with prior notification of specified congressional committees.

Authorizes the President, when it is essential to the national interest or national security interest, to waive restrictions concerning nonmilitary assistance and military assistance, sales, and leases upon notification of the Congress. Revises provisions regarding limitations on such funding.

Authorizes the President to use any funds made available under the Foreign Assistance Act of 1961 for emergency purposes except for funds made available for development assistance or assistance for famine recovery and development in Africa. Limits such assistance to $50,000,000 per fiscal year. Requires the President to report to specified congressional committees upon exercising such authority. Prohibits such assistance from being used to pay for gifts for any foreign official.

Authorizes the President to adopt as a U.S. contract or obligation any contract with a United States or third-country contractor which had been funded with assistance prior to the termination of such assistance. Applies termination provisions to any provision of law.

Requires the President to consider, in any case in which a restriction on assistance would be applicable, whether assistance for nongovernmental organizations is in the U.S. national interest. Directs the President to notify specified congressional committees upon furnishing restricted assistance to a nongovernmental organization. Exempts from such restrictions assistance for training activities as long as the recipient country has a democratically elected government and the assistance is otherwise consistent with this Act.

Prohibits assistance under the Foreign Assistance Act of 1961 from being furnished for: (1) a country whose government engages in a consistent pattern of human rights violations; (2) a country whose government has expropriated the property of any U.S. person, repudiated or nullified a contract with a U.S. person, or taken any other action which has the effect of seizing control of such person's property and has not provided adequate compensation or is not engaged in good faith efforts to negotiate a settlement; and (3) direct support for activities to increase exports of agricultural, textile, or apparel commodities from developing countries if such exports would be in direct competition with U.S. exports and can reasonably be expected to cause substantial injury to U.S. exporters of the same or similar commodities. Exempts from such prohibitions assistance: (1) for alleviation of suffering resulting from a disaster; and (2) to be furnished through nongovernmental organizations to directly benefit poor people or to promote increased respect for human rights and the development of democracy. Directs the President to report to the Speaker of the House and the chairman of the Senate Foreign Relations Committee with respect to assistance provided for such exceptions.

Requires the President to maintain a list of Communist countries for purposes of restricting assistance. Authorizes the President to remove or exempt a country from the list or prohibitions on assistance, with prior notification of the Speaker of the House and the chairman of the Senate Foreign Relations Committee. Includes within the list of countries designated as Communist countries under the Foreign Assistance Act of 1961 (and to which such restrictions apply) Ethopia, Yemen, Angola, Cambodia, Afghanistan, and Nicaragua. Requires the President, whenever such a country is receiving humanitarian assistance, to report to the Congress every three months on what steps the recipient country is taking to alleviate the conditions that make such assistance necessary. Outlines factors to be considered in the drafting of such list, including the human rights practices of countries in question.

Authorizes the Foreign Claims Settlement Commission, at the request of the President, to evaluate the value of any expropriated property of a U.S. person and render an advisory opinion to such person, the President, the House Committee on Foreign Affairs, and the Senate Committee on Foreign Relations.

Prohibits funds made available to carry out the Foreign Assistance Act of 1961 or currencies generated under such Act to be used to support foreign law enforcement forces or intelligence, with specified exceptions. Prohibits the provision of certain funds for: (1) Central Intelligence Agency operations in foreign countries unless the President finds that an operation is important to U.S. national security; and (2) activities related to, or organizations which support, abortion or involuntary sterilization as a method of family planning. Revises provisions concerning prohibitions on assistance to countries involved in the transfer of nuclear materials or in nuclear detonations.

Requires consideration to be given to excluding from assistance any country which seizes or imposes a penalty or sanction against any U.S. fishing vessel on account of fishing in international waters.

Prohibits assistance to any country which is more than one year in arrears to the U.S. Government on loan payments under the Foreign Assistance Act of 1961 or former authorities of the Arms Export Control Act.

Prohibits the provision of assistance to any government of Cuba, except as deemed necessary, until such government: (1) takes steps to return to U.S. citizens and entities certain property taken by the Government of Cuba after January 1, 1959; or (2) provides compensation to such citizens.

Expresses the sense of the Congress concerning: (1) the continued rule of Fidel Castro; (2) the role of human rights groups, political prisoners, and international observers in the Cuban plebiscite; and (3) the restoration of a democratic Cuban Government.

Outlines required elements of annual congressional presentation documents on foreign assistance.

Directs the Secretary of State to promote increased respect for human rights and fundamental freedoms throughout the world. Requires the President to conduct U.S. assistance and military sales programs in a manner which will: (1) promote and advance human rights; (2) strengthen relationships between civilian and military sectors appropriate to a democratic system of government; and (3) avoid identification of the United States with governments which deny their people human rights and fundamental freedoms. Directs the Secretary to report annually to: (1) the Congress on the observance of human rights in each foreign country, including information on coercion in population control; and (2) the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations, upon the request of such committees for a report on any specific country.

Revises provisions concerning congressional notification for program changes and reprogramming of funds.

Directs the President to submit to specified congressional committees quarterly reports on funds obligated for development and economic support assistance.

Makes technical amendments to a provision concerning the exercise of special authorities by the President.

Directs the President to report annually to the Speaker of the House and the chairman of the Senate Foreign Relations Committee on: (1) the percentage of the budget of each country receiving assistance under this Act that is devoted to military purposes; and (2) the degree to which such countries are using foreign exchange or other resources to acquire military equipment. Requires the President to report annually to the Congress on: (1) money, property, and services made available under this Act; and (2) gifts accepted under the State Department Basic Authorities Act of 1956 with respect to functions under this Act.

Directs the administrator for title I of this Act to report to the House Foreign Affairs Committee and the Senate Foreign Relations Committee whenever a foreign country requires a private organization to pay taxes on any funds provided to such organization under economic assistance programs of this Act.

Title V: General Provisions - Makes technical amendments to provisions concerning the authorities of the Secretaries of Defense and State. Directs the President to designate a single agency to administer title I and specified chapters of title VI of this Act.

Makes technical amendments to provisions concerning: (1) the publication of presidential determinations; (2) the allocation and reimbursement of funds among Federal agencies; and (3) general assistance authorities.

Makes technical amendments to provisions concerning administrative uses of funds. Removes a limit on the amount of funds to be made available for education of dependents of U.S. personnel stationed abroad. Authorizes the use of funds made available for development or economic support assistance for reimbursement to Federal and State agencies and institutions of higher education which detail employees to carry out such assistance. Excludes such employees from Federal personnel ceilings.

Applies a certain requirement for specific authorization of appropriations for foreign assistance to assistance for the Peace Corps.

Provides that if an amount appropriated for a fiscal year pursuant to any authorization of appropriations provided by this Act is less than the authorization amount and this Act provides for earmarked funds, such funds shall be deemed to be reduced to an amount bearing the same ratio to such funds as the amount appropriated bears to the authorization amount. Exempts funds for Israel or Egypt from such reductions.

Makes technical amendments to provisions concerning the use of foreign currencies owned by the United States. Authorizes the use of such currencies for certain assistance under this Act if in excess of amounts required for payment by U.S. agencies of obligations outside the United States. Requires the Secretary of the Treasury, in cases where assistance to a recipient country will result in the accrual of foreign currency proceeds to the United States, to require assistance agreements to include provisions for the receipt of interest on proceeds deposited in authorized depositories. Directs the President to take steps to assure that: (1) recipient countries contribute local currencies to meet the cost of services rendered in connection with assistance programs; and (2) foreign currencies owned by the United States are utilized to meet the costs of such services. Authorizes nongovernmental organizations to invest local currencies which accrue to such organizations as a result of certain assistance provided under this Act and the Agricultural Trade Development and Assistance Act of 1954 and to use interest earned on such investments for assistance purposes.

Makes technical amendments to policy provisions concerning the use of private enterprise for the procurement of commodities and defense articles and services. Authorizes the use of Federal facilities for technical assistance purposes when such facilities are not competitive with private enterprise. Outlines procurement methods and standards. Requires administrators of this Act to report to the Congress on revised procurement and contracting procedures.

Allows (currently, requires) the use of excess personal property or property already owned by a Federal agency (if a substantial savings would occur) in lieu of, or supplementary to, the procurement of new items for U.S.-assisted programs.

Makes technical amendments to provisions concerning excess property. Removes a ceiling on the amount of domestic excess property that may be held. Prohibits excess property from being made available for use under certain titles of this Act, unless approval is given and the administrator makes certain determinations regarding such property.

Makes technical amendments to provisions concerning personnel. Removes a limit on the number of contracts with experts, consultants, and retired officers which may be renewed annually. Authorizes personnel detailed to foreign governments or organizations to be assigned on a leave without pay status.

Permits the detailing or assignment of Department of Defense personnel to any civil office to carry out this Act.

Title VI: Technical and Conforming Provisions - Amends existing law to incorporate provisions of the Foreign Assistance Act of 1961 concerning the Assistant Secretary of State for Human Rights and Humanitarian Affairs.

Prohibits U.S. courts from declining on the ground of the Federal act of state doctrine to make a determination on the merits of international law in any case in which claim of title or right to property is asserted by any party, based upon a confiscation after January 1, 1959, by a state in violation of international law. Exempts from such prohibition cases in which: (1) an act of a foreign state is not contrary to international law or cases with respect to a right to property acquired pursuant to an irrevocable letter of credit issued in good faith prior to the time of taking; or (2) the President determines that application of such doctrine is required by U.S. foreign policy interests.

Amends Federal provisions governing coins and currency to grant the Secretary of the Treasury: (1) responsibility with respect to foreign credits owed to or by the United States; and (2) sole authority to establish for all foreign currencies or credits the exchange rates at which such currencies are to be reported by Federal agencies.

Redesignates the Trade and Development Program as the Trade and Development Agency.

Makes technical and conforming amendments to specified Acts. Repeals specified Acts.

Title VII: Latin America and the Caribbean - Chapter I: Central America - Expresses the sense of the Congress concerning the development of, and U.S. assistance for, the adoption of a plan by the governments of Central American countries consistent with the recommendations of the International Commission for Central American Recovery and Development. Declares that the United States should assist in the implementation of the Commission's proposals in order to support the Central American Recovery and Development Program.

Authorizes funds made available for economic support assistance for FY 1990 and 1991 to be used for a U.S. contribution to the United Nations Development Program for the Special Plan of Economic Cooperation for Central America. Requires the President to assist Central American governments in efforts to coordinate donor assistance. Authorizes funds made available for economic support assistance for FY 1990 and 1991 to be used for such efforts.

Expresses the sense of the Congress that there should be closer cooperation between the United States and the Organization of American States (OAS), including the payment by the United States of its contributions to such organization.

Prohibits the provision of any military aircraft to any Central American country unless specified congressional committees are notified in advance. Requires the Secretary of State to notify such committees whenever any helicopters or other military aircraft are provided to such countries by any foreign country.

Expresses congressional support for the Bush Administration's policy of linking U.S. assistance for El Salvador to promotion of a political settlement of the conflict, an end to human rights abuses, and respect for democracy and the rule of law. Limits the amount of military financing to be made available to El Salvador for FY 1990 and 1991. Authorizes up to 60 percent of such financing to be obligated after specified dates only if the President reports to the Congress that the Government and armed forces of El Salvador: (1) were actively seeking to achieve an equitable political settlement of the conflict, including free and fair elections, through a mutual cease fire and a dialogue with opposition forces; and (2) made demonstrated progress in protecting internationally recognized human rights and in respect for and protection of the rights of the press, speech, assembly, and association, internationally recognized worker rights, and other attributes of political pluralism and democracy.

Withholds a specified amount from military assistance to be made available to El Salvador until the Government of El Salvador has: (1) pursued all legal avenues to bring to trial those responsible for the September 1988 massacre of ten peasants near the town of San Francisco, El Salvador; and (2) satisfied its obligations under the Convention on the Prevention and Punishment of Crimes Against Internationally Protected Persons Including Diplomatic Agents with respect to the prosecution or extradition of those responsible for the murder of Mark Pearlman in January 1981. Permits the expenditure of such funds only with prior notification of specified congressional committees.

Prohibits the obligation of economic and food assistance for El Salvador until the President reports to the Congress that the Government and armed forces of El Salvador are adhering to their stated policy of allowing international humanitarian organizations and religious relief agencies free access to conflict areas, with specified exceptions. Prohibits the use of such assistance for El Salvador for FY 1990 and 1991 for programs administered by the National Commission on the Restoration of Areas (CONARA) unless the President reports to the Congress that such assistance meets specified requirements. Provides that economic and food assistance for El Salvador for FY 1990 and 1991: (1) may not be used for the forced relocation of the civilian population, to coerce participation in civil defense patrols, or as a reward for political activities; (2) shall be used only for programs which are controlled and implemented by civilian agencies independent of military operations; and (3) shall, to the maximum extent possible, be channeled through private voluntary organizations with a proven record of providing assistance for basic human needs. Requires at least one-third of agricultural commodities made available for El Salvador for FY 1990 and 1991 under the Agricultural Trade Development and Assistance Act of 1954 to be provided to private voluntary organizations.

Authorizes funds made available for FY 1990 and 1991 to be obligated to El Salvador for assistance in judicial reform only with prior notification of specified congressional committees.

Sets forth congressional review procedures concerning privileged joint resolutions with regard to assistance to El Salvador.

Authorizes assistance to be made available to El Salvador for FY 1990 and 1991 (if certain conditions are met) to promote the professional development of the El Salvadoran security forces and to encourage the separation of the law enforcement forces from the armed forces. Requires the President, before obligating such assistance, to certify to specified congressional committees that the Government of El Salvador has made significant progress in eliminating human rights violations.

Limits the amount of military assistance to be made available to Guatemala for FY 1990 and 1991. Prohibits the obligation of such assistance unless, during the preceding fiscal year: (1) the civilian government gained authority in relation to the military and there was progress in separating the military and civilian police forces; (2) there was increased respect for the rights of freedom of the press, speech, assembly, and association and other attributes of political pluralism; (3) progress has been made in reducing political killings and other human rights violations; (4) people were not forced to participate in civil defense patrols; (5) the Guatemalan military did not harass Guatemalan human rights organizations; and (6) the office of the Guatemalan human rights ombudsman was adequately funded and functioned effectively. Authorizes the obligation of such funds only with prior notification of specified congressional committees.

Prohibits the use of: (1) military financing for FY 1990 and 1991 by the Government of Guatemala for the procurement of weapons, ammunition, or aircraft (unless unarmed); and (2) authorities of the Defense Trade and Export Control Act to export such items to Guatemala during FY 1990 and 1991. Exempts from such prohibition the export under such Act of certain M-16 rifles to Guatemala with prior notification of the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations. Applies requirements for the use of economic and food assistance by El Salvador to Guatemala.

Requires the Secretary of State to study and report to the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations on the Guatemalan system of military justice for the investigation of offenses by military personnel and the prosecution of those responsible for such offenses. Makes funds available for such study from amounts allocated for FY 1990 for foreign military financing.

Prohibits the provision of foreign military financing and international military education assistance for police and prison authorities in Guatemala and Honduras during FY 1990 and 1991.

Earmarks a specified amount of economic support assistance for Costa Rica for FY 1990.

Prohibits the provision of assistance to any person or group engaging in an insurgency or rebellion against the Government of Nicaragua. Prohibits the United States from entering into any agreement or understanding under which a recipient of U.S. economic or military assistance or purchaser of U.S. military equipment shall provide assistance of any kind to such persons or groups. Requires the President to keep the Congress informed of information regarding assistance provided by other countries to the Nicaraguan Resistance.

Requires the United States to: (1) encourage monitoring of the 1990 Nicaraguan elections by the United Nations and the OAS; and (2) pay an appropriate share of the costs of such monitoring. Directs U.S. agencies which expend funds to influence such elections to report such expenditures to the appropriate congressional committees.

Expresses the sense of the Congress that certain electoral reform and media laws adopted by the Sandinista Government fail to fulfill minimum standards required by the Tesoro Beach agreement to ensure free and fair elections in 1990.

Directs the Secretary of State to report to the Congress on Nicaragua's compliance with a certain 1979 OAS resolution which calls for respect for human rights and the holding of free elections.

Calls upon: (1) the Soviet Union and its allies to withhold military assistance to Nicaragua and to remove military and security advisors from such nation; and (2) Nicaragua to reverse the growth of its armed forces, to separate the armed forces from the Sandinista political party, and to work toward a stabilization of the regional military balance.

Declares that the United States should encourage the establishment, and pay an appropriate share of the costs, of United Nations verification units to monitor compliance with the peace accord agreed to by the governments of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua on February 14, 1989, and all subsequent agreements in furtherance of such accord.

Declares that Nicaragua should make specified reforms concerning the political process, human rights, the military and the judiciary, press, media, and labor rights, religious freedoms, campesino, Indian, and Creole rights, and verifications of peace and democracy accords.

Urges all Central American countries to work toward achieving the democratic principles and processes of the 1987 Central American peace accord.

Chapter 2: The Caribbean - Caribbean Regional Development Act of 1989 - Amends the Foreign Assistance Act of 1961 to require that priority in the provision of development assistance to the Caribbean shall be given to supporting indigenous Caribbean institutions that represent, work with, and benefit the poor.

States that for purposes of determining the eligibility of any Caribbean country for development assistance, the per capita income of that country shall be deemed to be no greater than the per capita income for the Caribbean as a whole.

Requires that priority in the allocation of funds and local currencies for development and economic support assistance for the Caribbean be given to: (1) food self-sufficiency; (2) rural development; (3) community-based agro-industries; (4) financial resources for small- and medium-sized farm and manufacturing enterprises; (5) expansion of tourism; (6) regional integration; (7) upgrading technical and managerial skills; (8) enhancing the natural resource base; (9) private sector development; (10) development of democratic institutions and the administration of justice; and (11) access to human services and assistance for human resources development.

Prohibits the provision of any assistance under the Foreign Assistance Act of 1961 (except for development or international narcotics control assistance) for: (1) any government of any country in the Caribbean that does not enforce internationally recognized worker rights; and (2) a Caribbean country if the provision of that assistance would be inconsistent with promoting respect for internationally recognized worker rights. Authorizes such assistance if that government is taking steps to implement laws that demonstrate significant advancement in providing internationally recognized worker rights throughout the country.

Prohibits the agency responsible for administering title I of this Act from providing any assistance for the use of any chemical or other substance in the Caribbean if such use: (1) is not permitted under the public health laws of that nation; or (2) would not be permitted in the United States under U.S. public health laws.

Specifies that in the provision of development assistance to the Caribbean, such agency shall place emphasis on ensuring the active participation of Caribbean women in the development process.

Requires such agency to: (1) consult with Caribbean organizations that work with the poor in all stages of the design and implementation of assistance policies; and (2) monitor socioeconomic conditions in the Caribbean and the effect of economic assistance programs and policies on those conditions.

Requires the Office of Technology Assessment to conduct an evaluation of and report to the Congress on the performance of such agency in carrying out this Act.

Earmarks: (1) economic support and development assistance for FY 1990 and 1991 for assistance to the Caribbean; and (2) a specified amount, out of Caribbean assistance, to the Eastern Caribbean and Belize.

Prohibits the provision of assistance to Haiti under any Act for FY 1990 and 1991 unless the Government of Haiti has embarked upon a credible transition to democracy by: (1) restoring the 1987 Constitution; (2) appointing an independent electoral commission to conduct free, fair, and open elections as soon as possible; and (3) taking adequate steps to provide electoral security. Requires the President to notify specified congressional committees prior to the obligation of funds for such assistance. Exempts from such prohibition assistance: (1) provided through private voluntary or nongovernmental organizations to meet humanitarian and developmental needs or to promote respect for human rights and democracy; (2) provided by or through the Inter-American Foundation, OPIC, or the Peace Corps; (3) to enable the continuation of migrant and narcotics interdiction operations; (4) for the financing of education for Haitians in the United States; and (5) to an independent electoral commission responsible for the holding of elections consistent with the 1987 Constitution

Earmarks economic support assistance for FY 1990 and 1991 for Haiti if: (1) such conditions are met; (2) a civilian government is in power and such government was elected in free, fair, and open elections consistent with the 1987 Constitution that were held under international supervision; and (3) the armed forces have demonstrated a willingness to submit to legally constituted civilian authority and to abide by the Constitution. Provides that such funds are in addition to funds provided for Caribbean regional development.

Chapter 3: South America - Declares that the Congress supports the democratic transition underway in Chile and intends to assist the new government with assistance to: (1) strengthen democratic institutions; and (2) establish a new relationship with the Chilean armed forces appropriate to a democratic system of government. Earmarks a specified amount of funds made available for international military education and training for FY 1990 and 1991 for Chile. Prohibits the obligation of such funds until: (1) a civilian, democratically elected president is in power in Chile and has requested such funds; (2) human rights are being respected and the civilian government is exercising independent and effective authority; and (3) the Chilean Government is making good faith efforts to resolve the murders of Orlando Letelier and Ronni Moffitt. Authorizes the obligation of such funds only with prior notification of specified congressional committees.

Amends the International Security and Cooperation Act of 1981 to exempt from a prohibition on assistance to Chile certain aircraft parts, tools, technical manuals, or related services to enhance the safety of Chilean Air Force aircraft.

Prohibits the use of funds made available for FY 1990 and 1991 for foreign military financing for assistance to Paraguay until: (1) a democratic government is in power in Paraguay as a result of a free and fair election; (2) the practice of torture and abuse of individuals held in detention by the military and security forces has ended; (3) procedures have been instituted by the Paraguayan Government to ensure that those arrested are promptly charged and brought to trial; (4) political rights necessary for democracy have been restored and steps toward internal reconciliation have been taken by such government. Authorizes the obligation of such funds only with prior notification of specified congressional committees.

Authorizes the provision of development and economic support assistance to Peru for FY 1990 and 1991 to combat illicit narcotics production, trafficking, and use in Peru.

Earmarks a specified amount of funds made available for human rights and democratic initiatives for FY 1990 and 1991 for Peru for the reopening and expansion of the Office of the Special Prosecutor to Investigate Disappearances.

Urges the Secretary of State to persuade the Government of Ecuador to remove from the mural in Ecuador's Plenary Wall of Congress any reference to the U.S. Government. Declares that if the Government of Ecuador fails to accede to the Secretary's approach, the Secretary should consider invoking measures against Ecuador, including the withholding of foreign assistance for FY 1990 and 1991.

Chapter 4: Other Provisions Relating to the Region - Amends the Foreign Assistance Act of 1969 to authorize appropriations for FY 1990 and 1991 for the Inter-American Foundation.

Provides for the suspension of assistance allocated for FY 1990 and 1991 for any Latin American or Caribbean country if an elected president of such a country is deposed by military coup or decree.

Expresses congressional concern about the continuing pattern of human rights abuses in countries with civilian regimes in Latin America and the Caribbean. Directs the Assistant Secretary of State for Human Rights and Humanitarian Affairs to submit to the Congress a special analysis of the human rights situation in such countries, along with recommendations to combat such abuses.

Makes assistance available for countries with democratically-elected governments in such regions. Permits the provision of such assistance to El Salvador, Guatemala, and Honduras only with prior notification of specified congressional committees. Prohibits the use of such funds for: (1) lethal equipment; and (2) the participation of Department of Defense personnel and members of the U.S. armed forces in law enforcement training. Limits law enforcement assistance for Latin America and the Caribbean to 25 percent of the total amount authorized to be appropriated for such assistance under this Act.

Expresses the sense of the Congress that: (1) the Government of Mexico should be commended for its recent economic reforms; and (2) commercial banks that are creditors of Mexico and other developing countries that adopt responsible economic austerity programs should negotiate debt reduction packages, provided that such countries continue such programs.

Expresses the sense of the Congress that the United States should work through multilateral organizations to determine the feasibility of establishing a regional multilateral antinarcotics force for the Western hemisphere.

Expresses the sense of the Congress that the President should not appoint a new Administrator of the Panama Canal Commission unless and until he certifies to the Congress that the ruling government of Panama is democratically elected according to procedures specified in the Constitution of Panama.

Title VIII: Europe and the Middle East - Chapter 1: Assistance to Further Middle East Peace - Earmarks funds for military financing and economic support assistance for Israel for FY 1990 and 1991. Makes certain amounts of military financing available for the procurement of defense articles and services by Israel.

Earmarks funds for military financing and development and economic support assistance for Egypt for FY 1990 and 1991. Authorizes a limited amount of economic support assistance to be provided as a cash transfer under the condition that Egypt will undertake additional and significant economic reforms.

Earmarks specified amounts for FY 1990 and 1991 for: (1) military financing and economic support and development assistance for Jordan; (2) development assistance for the West Bank/Gaza direct program and for regional cooperative projects in the Middle East; and (3) economic support assistance for scholarships to enable Israeli Arabs to attend institutions of higher education in the United States. Authorizes a grant for such scholarships to be made only if private sector contributions to the scholarship endowment total at least $5,000,000 by the end of FY 1990.

Chapter 2: Other Provisions Relating to the Middle East - Requires the President to provide information on the impact of proposed arms transfers to the Middle East to the Congress: (1) concurrent with certain certifications concerning specified transfers under the Defense Trade and Export Control Act; and (2) at least 30 days before approving any transfer of certain missiles or associated launchers. Directs the President to report to the Congress on: (1) the Middle East arms balance based upon the impact of U.S. transfers of defense articles to the region; (2) how U.S. policy goals are advanced by such transfers; and (3) what type of military or economic compensation is required to countries whose qualitative edge the United States is committed to maintaining.

Expresses concern over the proliferation of sophisticated and deadly weapons in the Middle East. Urges the President to: (1) call for multilateral talks among the world's major arms suppliers to draw up guidelines to govern weapons transfers to the Middle East; (2) urge our allies to cease or slow such transfers; (3) encourage the Soviet Union to restrain its allies on the issue of proliferation; (4) raise such issues with China to encourage a more responsible policy by the Chinese Government; and (5) initiate bilateral talks with friendly potential arms recipients in the Middle East to restrain the transfer of such arms. Requires the President to report to the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations on the progress in achieving such goals.

Declares that military financing for Jordan is provided in recognition of the progress Jordan has made for peace in the Middle East. Authorizes the President to make a certain submission under the Defense Trade and Export Control Act with respect to proposed arms sales to Jordan only if such submission states that Jordan is publicly committed to recognition of Israel and to negotiating with Israel under United Nations Security Council Resolutions 242 and 338. Declares that: (1) the use of military financing to finance the procurement by Jordan of advanced aircraft, new air defense weapons systems, or other advanced military systems would constitute the use of such financing for a significantly different purpose than was justified to the Congress; and (2) any proposal to use such financing for such procurement would be subject to notification and reprogramming procedures under the Foreign Assistance Act of 1961.

Prohibits the United States from selling or making available Stinger missiles to any Persian Gulf country. Makes certain prohibitions concerning the transfer of Stingers inapplicable to Stingers previously transferred to Bahrain if the President notifies the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations that: (1) the Stingers are needed by Bahrain to counter an immediate air threat or to protect U.S. personnel, facilities, equipment, or operations; (2) no other appropriate system is available from the United States; and (3) Bahrain has agreed to safeguards to protect against diversion of the Stingers as may be required by the United States and to return to the control of the United States all Stingers transferred or replaced at any time. Authorizes the replacement, pursuant to certain determinations by the President, of Stingers previously made available to Bahrain that were fired or destroyed.

Permits Stingers to be made available to Oman, provided that: (1) the number of Stingers controlled by Oman is limited to ten; (2) certain certifications by the President are made to the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations; and (3) the President makes the same determinations required for Stingers transferred to Bahrain. Requires Stingers made available to Oman pursuant to this Act to be returned to the possession of the United States by the end of FY 1991, unless the President determines that certain conditions warranting the control of such missiles by Oman continue to apply and the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations are notified.

Directs the President to report annually to such committees an accounting for all Stingers made available to Bahrain and Oman by the United States.

Prohibits the sale of defense articles or services to Qatar under the Defense Trade and Export Control Act until the President has notified the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations that Qatar has returned to the United States all illegally obtained Stingers.

Earmarks funds for development assistance for FY 1990 and 1991 for cooperative development projects among the United States, Israel, and developing countries.

Authorizes the President, during FY 1990 and 1991, to make certain submissions with respect to proposed sales under the Defense Trade and Export Control Act to countries in the Middle East which have acquired intermediate-range ballistic missiles made by China only if the President determines that such countries do not have chemical, biological, or nuclear warheads for such missiles. Requires the President to notify the Congress promptly if such a country has acquired such warheads after such determination has been made.

Earmarks specified amounts of funds made available for development or economic support assistance for Lebanon for FY 1990 and 1991.

Chapter 3: Eastern Mediterranean - Requires U.S. policy regarding Cyprus, Greece, and Turkey to be directed toward maintaining a stable and peaceful atmosphere in the Eastern Mediterranean region such that: (1) the United States shall actively support the resolution of differences through negotiations; (2) the United States will accord full support and high priority to efforts to bring about a prompt, peaceful settlement on Cyprus; (3) all defense articles furnished by the United States to Eastern Mediterranean countries will be used only in accordance with the Foreign Assistance Act of 1961, the Defense Trade and Export Control Act, and the agreements under which such articles were furnished; (4) the United States will furnish military assistance for Greece and Turkey only when such assistance is intended solely for defensive purposes and to ensure that the present balance of military strength between Greece and Turkey is maintained; (5) any agreement entered into by the United States for the provision of any defense article on the U.S. Munitions List shall expressly state that the article is being provided only with the understanding that the article will not be transferred to, or used to further the division of, Cyprus; and (6) the United States shall use its influence to achieve the withdrawal of Turkish military forces from Cyprus. Directs the President to report to the Speaker of the House and the chairman of the Senate Foreign Relations Committee on progress made toward a solution of the Cyprus problem.

Earmarks specified amounts of development assistance for FY 1990 and 1991 for Cyprus and for bicommunal development projects in Cyprus.

Expresses the sense of the Congress that: (1) the Government of Greece should adhere to the U.S.-Greek extradition treaty by granting the extradition of Mohammed Rashid; and (2) a failure to extradite such individual would be regarded as a breach of such treaty and would cause grave concern regarding the Greek Government's stated commitment to combat international terrorism.

States that the Congress deplores the decision of the Greek Government to permit Abdel al-Zomar to leave Greece and to deny the extradition request of Italy.

Earmarks specified amounts of funds for military financing for FY 1990 and 1991 for Greece and Turkey.

Expresses the sense of the Congress concerning the resettlement of New Famagusta (Varosha), Cyprus, by its former inhabitants.

Chapter 4: Other Provisions - Amends the Anglo-Irish Agreement Support Act of 1986 to authorize appropriations for FY 1990 and 1991 for the U.S. contribution to the Anglo-Irish International Fund.

Repeals certification requirements under such Act and incorporates such requirements into reporting requirements.

Urges the Government of Yugoslavia to: (1) assure that further violence does not occur in Kosovo; and (2) observe its obligations under the Universal Declaration of Human Rights and the Helsinki Final Act to assure full protection of the rights of national groups in Yugoslavia. Requests the President and the State Department to monitor closely the human rights conditions in Yugoslavia.

Condemns the use of excessive and lethal force by Soviet troops in responding to the demonstrations of April 9, 1989, in Tbilisi, Georgian Soviet Socialist Republic.

Urges the Soviet Union to investigate allegations of the use of toxic chemical agents against the demonstrators in Tbilisi and, if true, to take steps to prevent the recurrence of such use.

Supports the demands of the people of Georgia for human rights and fundamental freedoms.

Declares that certain authorities under the Defense Trade and Export Control Act may not be used to prohibit a qualified museum or educational institution from importing defense articles from Hungary or Poland if such an article: (1) was manufactured at least 25 years before its importation into the United States; (2) was imported into the United States before June 30, 1989; (3) has been disabled; and (4) is used only for display to the public for educational purposes.

Title IX: Asia and the Pacific - Chapter 1: East Asia and the Pacific - Directs the President, in determining whether to furnish assistance to Burma under the Foreign Assistance Act of 1961 or the Agricultural Trade Development and Assistance Act of 1954 (other than emergency humanitarian assistance) and to make sales of defense articles or services to Burma during FY 1990 and 1991, to take into account whether the Government of Burma: (1) has held free and fair elections and a civilian government has assumed power, including whether international rights of freedom of speech, the press, and assembly were respected during the electoral campaign, the elections were conducted in the presence of international observers, and whether there is an independent judiciary; and (2) is committed to implementing fundamental economic reforms to ensure that U.S. assistance can be used effectively. Directs the President, during FY 1990 and 1991, to notify specified congressional committees before: (1) obligating funds for any assistance for Burma under the Foreign Assistance Act of 1961; or (2) issuing a letter of offer to sell any defense articles or services to Burma under the Defense Trade and Export Control Act.

Authorizes the President to make available to non-Communist resistance forces in Cambodia funds made available for military financing and economic support assistance for FY 1990 and 1991. Prohibits the obligation or expenditure of such funds to promote the capacity of the Khmer Rouge to conduct military or paramilitary operations in Cambodia or Indochina. Authorizes the President to use: (1) funds available for development and economic support assistance for FY 1990 and 1991 for nonmilitary training of non-Communist Cambodians outside of Cambodia in skills that would be used by them upon returning to Cambodia in the context of internationally acceptable political settlement in such country; and (2) funds available for FY 1990 and 1991 for U.S. contributions to an international program of relief and reconstruction in Cambodia in the context of such a political settlement.

Condemns assistance provided by the People's Republic of China to the National Army of Democratic Kampuchea. Requires the United States to take into account the extent to which China has reduced its assistance to the Khmer Rouge when considering requests for transfers of high technology to China. Declares that the President should reiterate his support for the statute which calls for blocking the return to power of the Khmer Rouge. Directs the President to report to the Congress regarding the extent to which China is decreasing its assistance to the Khmer Rouge.

Prohibits the provision of military financing and international military education and training made available for FY 1990 and 1991 to Fiji unless the President certifies to the Congress that Fiji has returned to a freely elected democratic government under a constitution acceptable to all communities in Fiji.

Allows uncommitted balances of loans made since October 1, 1984, to the Philippines pursuant to the former authority of the Arms Export Control Act to be disbursed without requirement for repayment of principal or interest to such extent or in such amounts as are provided in advance in appropriation Acts.

Amends the Foreign Assistance Act of 1961 to express the sense of the Congress that: (1) the United States should participate with multilateral financial institutions and other bilateral donors in an economic reform and development program in the Philippines; and (2) a multiyear commitment of resources by the United States, donors, and institutions with a continued reform effort and leadership role by the Government of the Philippines will be necessary to ensure continued economic growth in the Philippines and enhanced participation of the Filipino people in the democratic process.

Authorizes the President to provide assistance to promote the four basic objectives of this Act. Links such assistance to progress by the Government of the Philippines in implementing its economic, structural, judicial, and administrative reform program and includes support for: (1) programs necessary to stimulate and strengthen private sector growth, voluntary debt reduction import liberalization, export growth and diversification, and the privatization of enterprises; and (2) greater U.S. participation in such sector.

Requires the Secretary of State and the administrator of title I of this Act, beginning with the submission of the budget request for FY 1991, to report annually to the Congress on progress in implementing the objectives of this program.

Authorizes appropriations. Limits the amount of appropriations for FY 1990. Prohibits funds appropriated for FY 1990 from being made available until the President has received a document developed by the Government of the Philippines and acceptable to the bilateral donors and multilateral financial institutions that sets forth the framework and objectives of macroeconomic, administrative, and structural reforms and voluntary debt reduction programs which the multilateral assistance program is designed to support. Requires such reforms to include specific measures to enhance debt exchange programs, facilitate market-oriented debt reduction programs and debt-equity exchanges, and to encourage foreign investment by simplifying licensing and registration requirements.

Prohibits the obligation of funds for the Philippines unless the President reports to the Congress that a majority of the assistance will be provided by other bilateral donors and multilateral financial institutions. Authorizes the obligation of such funds only upon prior notification of the Congress.

Expresses the sense of the Congress that prior to requesting additional amounts to carry out this Act, the President should take into account: (1) the progress being made by the Philippines toward achieving such reform objectives; (2) the extent of participation by the bilateral donors and multilateral financial institutions; and (3) the efforts to coordinate the assistance program.

Expresses the sense of the Congress that: (1) the coordination of objectives and programs by donors, institutions, and the Government of the Philippines is critical to the success of the multilateral assistance program; (2) all donors should simplify procurement and disbursement procedures to ensure that conditions on the provision or use of assistance are complementary; and (3) the Philippines will ensure the most effective use of such assistance.

Earmarks specified amounts out of amounts allocated for the South Pacific regional program for scholarships for study at postsecondary institutions in the United States for FY 1990 and 1991.

Requires the President to transfer a specified amount of development and economic support assistance for Asia Programs for FY 1991 for expenses incurred by the Assistant Secretary of State for South Asian Affairs.

Expresses the sense of the Congress that the United States should: (1) give the highest priority to fully accounting for the Americans still missing in Southeast Asia and to negotiating the return of Americans still held captive; and (2) heighten public awareness of the prisoners of war issue through the dissemination of factual data.

Expresses the sense of the Congress that: (1) the President should use available appropriations to provide up to $200,000 in each of FY 1990 and 1991 to support joint U.S.-Laotian efforts to resolve questions concerning Vietnam era prisoners of war or those missing in action; and (2) the President should encourage the Organization for Economic Cooperation and Development (OECD) to actively undertake study and consultation appropriate to consider for membership in the OECD the Governments of South Korea, Taiwan, Hong Kong, and Singapore.

Condemns human rights violations by the Government of China, including: (1) the one-child-per-family policy which relies upon coercion and forced abortions; (2) the use of a "birth quota" system; and (3) the use of forced abortions and involuntary sterilizations of Tibetans.

Affirms internationally recognized basic human rights with respect to abortion.

Requests the President and Department of State to call upon such Government to cease policies that violate human rights.

Earmarks a specified amount of funds made available under the Foreign Assistance Act of 1961, the Agricultural Trade Development and Assistance Act of 1961, or the Migration and Refugee Assistance Act of 1962 for humanitarian assistance for displaced Burmese students on the Thai-Burma border.

Prohibits the sale, and issuance of licenses for export to, China of any item on the U.S. Munitions List unless the President certifies to the Congress that: (1) no U.S. defense article or technology was used in certain missiles or aircraft transferred to Iran, Iraq, Syria, or Libya by China in contravention of the Defense Trade and Export Control Act; and (2) no chemical weapons and nuclear equipment or materials were transferred to such countries by China.

Expresses the sense of the Congress that: (1) the President is to be commended for his condemnation of the actions of the Chinese Government in the killing and persecution of participants of the prodemocracy movement in China; (2) the consultative approach used by the President in coordinating the U.S. response to such atrocities with other countries should be supported; (3) it is essential that the President be given flexibility to respond to rapidly-changing situations so that the long-term interests of the United States are not damaged; (4) the President should continue to emphasize that resumption of normal diplomatic and military relations between the United States and China will depend on the halting of executions of prodemocracy supporters, releasing those imprisoned for political beliefs, and increasing respect for human rights; (5) the United Nations should condemn such repression, including the abuse of African students, and urge the Chinese Government to enter into negotiations with representatives of the prodemocracy movement; (6) U.S. policy toward China should be linked with the situation in Tibet; (7) the United States should offer admission to the United States to any Chinese national who is under the threat of severe penalty as a result of participating in the prodemocracy demonstrations; and (8) the President should be commended for providing temporary refuge to Fang Lizhi and Li Shuxian at the U.S. embassy in Bejing.

Suspends to China OPIC financial support, assistance from the Trade and Development Agency, munitions and crime control equipment exports, and exports of U.S. satellites intended for launch by a Chinese launch vehicle unless the President reports to the Congress that: (1) China has made progress on a program of political reform; or (2) it is in U.S. national security interests to terminate such a suspension. Suspends licenses for export to China of goods or technology which could be used for nuclear explosive purposes until the President: (1) has certified to the Congress that China is not assisting and will not assist any non-nuclear nation in acquiring nuclear explosive devices or materials; and (2) the President makes certain required reports.

Requires the President to negotiate with governments participating in the Coordinating Committee to suspend any liberalization of controls on exports of goods and technology to China under the Export Administration Act of 1979. Directs the President to oppose any liberalization by the Committee until six months after this Act's enactment or until the President reports that such suspension should be terminated.

Exempts from the suspension on the issuance of munitions export licenses any systems and components designed specifically for civil products and controlled as defense articles only for purposes of export to a controlled country, unless the President determines that the recipient of such items is the Chinese military or security forces.

Establishes the Task Force on Certain Nationals of the People's Republic of China in the United States to: (1) assess the needs and status of Chinese citizens who were admitted under non-immigrant visas to the United States; (2) recommend to the Congress and the President policies to address such needs; and (3) establish a clearinghouse to provide such citizens and institutions of higher education with information coverning sources of financial assistance available to such citizens, assistance regarding visas and immigration status, and other appropriate information.

Requires the President to report to the appropriate congressional committees every three months on the activities of the Task Force. Terminates the Task Force two years after this Act's enactment.

Chapter 2: South Asia - Authorizes the President to make available development and economic support assistance funds for the provision of food, medicine, or other humanitarian assistance to the Afghan people, long-range multilateral reconstruction efforts, and the establishment of a freely-elected Afghan Government.

States that the primary purpose of U.S. economic assistance for Bangladesh is to foster economic development and political pluralism. Requires the President to take specific factors into account in determining whether to provide economic assistance to Bangladesh.

Expresses the sense of the Congress that: (1) India and Nepal should work together to resolve issues relating to trade and transit; and (2) the Secretary of State should provide regular briefings to the Congress on the effects of the Indian-Nepalese dispute on such countries and on U.S. interests, including U.S. interests in South Asia in general.

States that the primary purpose of U.S. assistance for Pakistan is to support democracy and that the maintenance of a democratic government in Pakistan is a precondition for continued U.S. assistance.

Reaffirms the commitment made in a 1959 United States-Pakistan agreement relating to aggression from a Communist-dominated state.

Requires the United States to continue to ensure that defense articles provided by the United States to Pakistan are used solely for defensive or nonaggressive purposes specified in the Defense Trade and Export Control Act. Authorizes the President to waive any prohibitions under the Foreign Assistance Act of 1961 with respect to Pakistan if such waiver is in the U.S. national interest. Prohibits: (1) the provision of assistance or sale of defense articles or services to Pakistan unless the President certifies to the Speaker of the House and the chairman of the Senate Foreign Relations Committee that Pakistan does not possess a nuclear explosive device and that such assistance will reduce significantly the risk that Pakistan will possess such a device; and (2) the aggregate amount of assistance available for Pakistan for FY 1990 and 1991 under such Act and the Agricultural Trade Development and Assistance Act of 1954 from being less than the aggregate amount made available for FY 1989. Earmarks specified amounts of development assistance available for Pakistan for FY 1990 and 1991 for literacy programs for females.

Expresses the sense of the Congress that: (1) the Soviet Union should continue to abide by the agreement governing the withdrawal of its armed forces from Afghanistan; (2) the Soviet Union should make available information and support efforts to assist in the removal of mines deployed in Afghanistan by Soviet and allied Afghan armed forces; (3) the Soviet Union should support efforts toward reconstruction in Afghanistan, including the provision of medical care and assistance to Afghan people injured as a result of placement of mines; and (4) the President should continue to provide assistance in support of the international mine clearing effort.

Urges the Government of India to: (1) end its support for the Communist Government of Afghanistan; and (2) agree to submit to international safeguard inspections of its nuclear activities and to become a party to the Treaty on the Non-Proliferation of Nuclear Weapons.

Expresses the sense of the Congress that the United States should continue to: (1) encourage a political settlement that will bring an end to the fighting in Afghanistan without sacrificing the objectives of Afghan self-determination, return of refugees, and the reemergence of an independent Afghanistan; and (2) provide effective military support to the Afghan resistance.

Title X: Africa - Chapter I: Africa Famine Recovery and Development - Africa Famine Recovery and Development Act - Authorizes the President to provide project and program assistance for long-term development in Subsaharan Africa. Requires the purpose of such assistance to be to help the poor majority of men and women in Subsaharan Africa to participate in a process of long-term development through economic growth that is equitable, participatory, environmentally sustainable, and self-reliant. Provides that such assistance should also encourage private sector development and promote individual initiatives and help to reduce the role of central governments in areas more appropriate for the private sector.

Requires the administering agency to: (1) take into account the local-level perspective of the rural and urban poor in Subsaharan Africa during the planning process for project assistance under this Act; and (2) make available funds for a significant long-term expansion of development efforts by private and voluntary organizations which have demonstrated effectiveness in or commitment to the promotion of local grassroots activities on behalf of long-term development in Subsaharan Africa.

Requires: (1) the close consultation and involvement of local people in projects that have a local focus; and (2) the participation and integration of African women in development projects assisted by this Act.

Requires the administering agency to use the program assistance provided by this Act to: (1) emphasize projects to address critical sectoral priorities for long-term development; and (2) promote reform of national economic policies to support these priorities.

Sets forth examples of national economic policy reforms which can be supported by assistance provided by this Act. Requires such reforms to include provisions to protect vulnerable groups, especially poor farmers and the urban poor, from possible negative consequences of such reforms. Authorizes limited amounts of assistance furnished under this Act to be used to address other long-term development priorities in Subsaharan Africa with prior notification of specified congressional committees.

Designates as the critical sectoral priorities for long-term development: (1) increased agricultural production and the maintenance and restoration of renewable natural resources; (2) improved health conditions; (3) voluntary family planning services; (4) improved relevance and efficiency of education; and (5) development of income generating opportunities for the unemployed and underemployed. Imposes minimum levels of assistance for certain critical sectors.

Requires the assistance provided under this Act to be concentrated in countries that will make the most effective use of such assistance.

Prohibits the administering agency from using less than specified amounts for in-country natural resources and environmental training in Subsaharan Africa.

Specifies uses for local currencies generated by assistance provided under this Act and other Acts. Provides that funds made available under this Act may be used to assist the countries in Subsaharan Africa to increase their capacity to participate in donor coordination mechanisms at the country, regional, and sector levels.

Requires that it be the policy of the United States that the funds made available by this Act are not used by a country to repay loans, with exceptions.

Authorizes appropriations for FY 1990 through 1994 for long-term development assistance for Subsaharan Africa. Expresses the sense of the Congress that the authorization should be extended whenever appropriate.

Requires the administrator of the administering agency to develop a plan for organizational changes within such agency in order to carry out the long-term development assistance program for Subsaharan Africa with maximum effectiveness. Requires the administrator to submit such plan to specified congressional committees. Authorizes the administrator to transfer certain funds in order to increase the agency resources for development assistance activities for Subsaharan Africa.

Requires the annual report by the President to the Congress on foreign assistance programs to include a report on the progress made in carrying out this Act. Makes reprogramming notification requirements inapplicable to funds used to carry out this Act.

Makes conforming amendments to various Acts.

Expresses the sense of the Congress that the purposes of the African Development Foundation are consistent with the purposes of this Act.

Amends the African Development Foundation Act to: (1) authorize appropriations for the African Development Foundation for FY 1990 and 1991; and (2) require that no more than four members of the Foundation's Board are from any one political party. Repeals a provision of such Act requiring the expiration of the Foundation's authorities on September 30, 1990.

Expresses the sense of the Congress that special efforts should be undertaken to reduce trade barriers and promote economic interchange between the United States and developing countries in Subsaharan Africa.

Chapter 2: Other Provisions Relating to Sub-Saharan Africa - Earmarks specified amounts of economic support assistance made available for FY 1990 and 1991 for Subsaharan Africa.

Earmarks specified amounts of development assistance made available for FY 1990 and 1991 to assist sector projects supported by the Southern African Development Coordination Conference (SADCC). Provides that such funds shall be available for the transportation, manpower development, agricultural and natural resources, energy, and industrial development and trade sectors. Urges: (1) the President to use diplomatic means to protect the security of such projects; and (2) the Government of South Africa to respect the territorial integrity of SADCC states and to refrain from military aggression across its borders.

Requires the President, in determining whether to furnish assistance to Burundi for FY 1990 and 1991, to take into account whether the Government of Burundi is: (1) making progress in advancing internal reform of its military and civil administration and ensuring discipline and control in interactions with people of Hutu ethnicity; and (2) making progress in reversing patterns of discrimination against the majority Hutu.

Condemns the abuse of human rights by the Government of Ethiopia and such Government's lack of progress in negotiating a peaceful settlement to internal conflicts and in effecting macroeconomic reforms. Urges the President and the Secretary of State to: (1) focus world pressure and opinion on Ethiopia to foreswear summary executions, release political prisoners, reform economic policies, facilitate family reunification, and engage in negotiations to lead to a political settlement; and (2) engage in discussions with the Soviet Union in order that the peaceful resolution of the Ethiopian crisis becomes a high priority of the United States and the Soviet Union and that external military flows to Ethiopia are reduced.

Urges the President to impose diplomatic and economic pressures upon the Government of Ethiopia if Ethiopia fails to act in good faith to resolve its internal wars peacefully and to improve respect for human rights. Requires the President to report to the Congress every 90 days on the actions of the Ethiopian Government with respect to internal wars, economic reform, and human rights.

Declares that the provision of development and economic support assistance to Kenya for FY 1990 and 1991 shall bear a relation to significant steps by the Government of Kenya to increase respect for human rights. Requires the Secretary of State, during 1990 and 1991, to report to specified congressional committees on the steps taken by the United States to carry out such policy.

Requires the President, in determining whether to furnish economic and military financing assistance to Liberia for FY 1990 and 1991, to take into account whether the Government of Liberia has: (1) demonstrated its commitment to economic reform; and (2) has taken significant steps to increase respect for human rights.

Declares that it shall be U.S. policy to: (1) continue and expand bilateral development assistance to Mozambique; (2) strengthen Mozambique's transport sector through U.S. assistance to the SADCC; (3) identify additional opportunities for U.S. support of Mozambique's reconstruction; (4) contribute to Mozambique's national reconciliation in ways which do not legitimate the behavior of the Mozambique National Resistance (RENAMO) or subordinate Mozambique's sovereign interests to RENAMO's principal patron, South Africa; and (5) encourage international support for generous levels of emergency humanitarian aid for displaced or otherwise at-risk Mozambicans, including Mozambican refugees in neighboring countries.

Requires the United States to use diplomatic and other means to condemn and achieve the immediate termination of South African and other external assistance to RENAMO. Declares that the provision of economic support and military financing assistance to Mozambique shall bear a relation to significant steps by the Mozambican Government to conduct talks with RENAMO, increase respect for human rights, and raise hope for a political settlement. Directs the Secretary of State to report to specified congressional committees on U.S. actions concerning Mozambique.

Requires the President, in determining whether to furnish economic support and military financing assistance to Somalia, to take into account whether the Government of Somalia has taken steps to increase respect for human rights that provide hope for political reconciliation.

Authorizes assistance under the Agricultural Trade Development and Assistance Act of 1954 for FY 1990 and 1991 to be provided to refugees in Somalia only if: (1) an impartial counting of eligible beneficiaries of food assistance by the United States and other donors has been completed; and (2) all beneficiaries of such assistance are disarmed and the amount of such assistance does not exceed the number of beneficiaries.

Requires international disaster assistance provided by the United States to northern Somalia on account of the violence in 1988 to directly benefit the victims of such violence, with primary emphasis on the original inhabitants of the regions affected.

Directs the President, in determining whether to furnish economic support and military financing assistance to Sudan, to take into account whether the Government of Sudan has: (1) made substantial progress in the effective delivery of increased relief to displaced populations in areas controlled by the Sudanese Government; and (2) made good faith efforts to achieve progress in negotiations with the Sudan People's Liberation Army for a national peace accord.

Limits the amount of military financing to be made available to Zaire for FY 1990 and 1991. Prohibits the provision of economic support assistance to Zaire for FY 1990 and 1991. Requires assistance for famine recovery and development in Africa and development assistance for Zaire for FY 1990 and 1991 to be provided through private voluntary organizations to the maximum extent practicable.

Encourages the President to use funds available for FY 1990 and 1991 for funding at levels greater than those for previous years for treatment of and research on AIDS in Africa.

Requires the President to notify specified congressional committees prior to the obligation of funds for Burundi, Liberia, Somalia, and Sudan.

Chapter 3: Other Provisions Relating to Africa - Declares that: (1) it is in the interest of the United States to encourage the promotion of human rights and political and economic freedom in African countries; and (2) the President, in furnishing assistance to such countries for FY 1990 and 1991, should consider each country's record in human rights and economic reform and its friendship to the United States.

Expresses the sense of the Congress that: (1) the United States should work toward the elimination of apartheid through a comprehensive policy to bring about a nonracial democracy in South Africa to include assistance to disadvantaged South Africans; and (2) U.S. firms in South Africa should provide similar assistance. Provides that such assistance may include the encouragement of investment in firms owned by disadvantaged South Africans, assistance to promote the participation of such individuals in trade unions and private enterprise, and the development of alternative education and community development programs. Declares that the President should seek the cooperation of Western European allies and Japan to join in multilateral initiatives to aid disadvantaged South Africans.

Expresses the sense of the Congress that the United States should: (1) continue to promote direct talks between the leaders of the Union for the Total Independence of Angola (UNITA) and the Movement for the Popular Liberation of Angola (MPLA) to achieve an agreement for national reconciliation among Angolans; and (2) refuse to recognize a government in Angola and oppose credits to Angola by the International Monetary Fund and the International Bank for Reconstruction and Development until there is an agreement for national reconciliation that is acceptable to both sides or the President determines that there has been significant progress toward such agreement.

Commends President Mobutu Sese Seko of Zaire, President Jose Edouardo Dos Santos of Angola, and Dr. Jonas Savimbi for their efforts in the Gbadolite summit to secure peace in southwestern Africa.

Title XI: Agricultural Trade Development and Assistance - Amends the Agricultural Trade Development and Assistance Act of 1954 to set deadlines for payments for agricultural commodity sales made for foreign currencies. Prohibits the use of more than five percent of foreign currencies obtained for use from such sales to defray administrative costs of the U.S. Government.

Prohibits the use of proceeds for private sector development activities to support any activity to increase exports of agricultural, textile, or apparel commodities from a developing country if such exports: (1) would be in direct competition with U.S. exports; and (2) can reasonably be expected to cause substantial injury to U.S. exporters of similar commodities.

Title XII: Peace Corps - Amends the Peace Corps Act to authorize appropriations for FY 1990 and 1991.

Authorizes Peace Corps technical publications to be sold at cost in furtherance of the purposes of such Act. Permits up to $200,000 of the proceeds of such sales to be credited to the applicable Peace Corps appropriation.

Title XIII: United States Commission on Southern Africa - United States Commission on Southern Africa Act - Establishes the United States Commission on Southern Africa to solicit private sector funds to develop skilled personnel in South Africa and Namibia, particularly in middle management business and government positions, by providing for the training of disadvantaged South Africans and Namibians in the fields of education, health care, law, and housing.

Authorizes the Commission to establish and provide funds for human resource development programs and to provide scholarships and internships for appropriate study and training.

Prohibits the use of such funds for programs conducted by or through South African organizations which are financed or controlled by the Government of South Africa. Authorizes the use of such funds only for programs which clearly reflect the objective of an end to apartheid.

Provides for the annual audit of the Commission by certified public accountants. Authorizes the U.S. Comptroller General to carry out an annual audit of the Commission. Requires the Comptroller General to report such audits to the Congress.

Directs the Commission to ensure that: (1) recipients of Commission assistance keep separate accounts of such assistance and records to facilitate effective audits; and (2) the Commission has access to such records.

Requires the Commission to report annually to the Congress on its activities.

Directs the Secretary of State to grant $1,000,000 of funds made available to the Department of State to the Commission for FY 1990.

Title XIV: Miscellaneous Provisions - Authorizes the administrator of title I of this Act to use U.S.-owned excess foreign currencies to: (1) carry out the purposes of title I of this Act; and (2) support any institution providing education for a significant number of U.S. nationals. Prohibits such currencies from being used in Communist countries.

Requires at least ten percent of the aggregate amounts of development and famine recovery and development in Africa assistance for each of FY 1990 and 1991 to be made available only for activities of the following U.S. organizations and individuals: (1) business concerns owned and controlled by socially and economically disadvantaged individuals; (2) historically black colleges and universities; (3) colleges and universities in which more than 40 percent of the students are Hispanic Americans; and (4) private voluntary organizations controlled by socially and economically disadvantaged individuals.

Directs the administrator, with respect to development and famine recovery and development in Africa assistance for FY 1990 and 1991, to: (1) utilize the authority of the Small Business Act; (2) enter into contracts with small business concerns owned and controlled by socially and economically disadvantaged individuals; and (3) issue regulations requiring contracts in excess of $500,000 to require at least ten percent of the dollar value of such contracts to be subcontracted to minority U.S. organizations and individuals, except under specified conditions.

Requires persons with contract authority in the administering agency to notify the agency's Office of Small and Disadvantaged Business Utilization before advertising contracts in excess of $100,000. Directs the administrator to: (1) include as part of the performance evaluations of agency mission directors such directors' efforts to carry out such contracting; and (2) report annually to the Congress on such contracts.

Declares that it is U.S. policy to: (1) oppose restrictive trade practices or boycotts imposed by foreign countries against any U.S. person or countries friendly to the United States; and (2) encourage the world's major trading nations to refuse to take actions which have the effect of supporting such trade practices or boycotts.

Directs the Secretary of Commerce to report annually on the extent to which members of the General Agreement on Tariffs and Trade encourage actions which further or support such boycotts.

Declares that the Congress finds the seizure of a U.S. citizen, Tony O'Brien, by the Government of Afghanistan's security forces to be a reprehensible act and calls upon the Government of Afghanistan to promptly release such individual.

Expresses the sense of the Congress that U.S. national interests and security would be jeopardized if the nation became dependent on Communist countries for essential minerals and metals. Directs the President to report annually to the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations on the extent to which the United States is dependent on such countries for the supply and importation of certain strategic and critical minerals (within the meaning of the Strategic and Critical Materials Stock Piling Act) and what the United States is doing to reduce such dependence.

Expresses the sense of the Congress that: (1) the United States should impose sanctions against all food and agricultural products of Romania; and (2) the President should consult with allied countries to develop a coordinated policy to impose sanctions against Romania.

Expresses the displeasure of the United States with those countries who voted against the United States and with Cuba at the United Nations Human Rights Commission in Geneva in 1989 on the resolution proposed by Panama to curb the United Nations investigation of human rights abuses in Cuba. Lists such countries.

Expresses the sense of the Congress that the United States should continue to reject the resolution adopted by the United Nations General Assembly that calls zionism a form of racism and should urge all countries which have not done so to join in formally rejecting such resolution.

Requires the President, before providing foreign military financing and international military education and training under the Foreign Assistance Act of 1961 for FY 1990 and 1991, to take into account whether a recipient country: (1) receives from the Soviet Union more than three-quarters of the military assistance that it receives from foreign countries; or (2) has more than 55 military personnel from the Soviet Union or any Soviet bloc country.

Title XV: Compliance with Budget Resolution - Limits the aggregate amount authorized to be appropriated for FY 1990 under this Act.