Text: S.956 — 102nd Congress (1991-1992)All Information (Except Text)

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S 956 IS
102d CONGRESS
1st Session
S. 956
To amend the Foreign Assistance Act of 1961 to rewrite the authorities of that
Act in order to establish more effective assistance programs and eliminate
obsolete and inconsistent provisions, to amend the Arms Export Control Act
and redesignate that Act as the Defense Trade and Export Control Act, to
authorize appropriations for international cooperation programs for fiscal
years 1992 and 1993, and for other purposes.
IN THE SENATE OF THE UNITED STATES
APRIL 25, 1991
Mr. PELL (by request) introduced the following bill; which was read twice
and referred to the Committee on Foreign Relations
A BILL
To amend the Foreign Assistance Act of 1961 to rewrite the authorities of that
Act in order to establish more effective assistance programs and eliminate
obsolete and inconsistent provisions, to amend the Arms Export Control Act
and redesignate that Act as the Defense Trade and Export Control Act, to
authorize appropriations for international cooperation programs for fiscal
years 1992 and 1993, and for other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `International Cooperation Act of 1991'.
SEC. 2. TABLE OF CONTENTS FOR THIS ACT.
  The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents for this Act.
Sec. 3. Table of contents for amended Foreign Assistance Act.
TITLE I--STATEMENT OF POLICY; ECONOMIC ASSISTANCE PROGRAMS
Sec. 101. Statement of policy.
Sec. 102. Revision of assistance programs.
TITLE II--MILITARY ASSISTANCE RELATED ASSISTANCE AND SALES PROGRAMS
Chapter 1--Consolidation and Revision of Accounts
Sec. 201. Revision of assistance programs.
Sec. 202. Amendments to Arms Export Control Act.
Sec. 203. Transition rules.
Chapter 2--Foreign Military Sales Program
Sec. 221. Arms transfer policy.
Sec. 222. Designation of major non-NATO allies.
Sec. 223. Standardizing congressional review procedures for arms transfers.
Sec. 224. Update of certification thresholds.
Sec. 225. Economic impact on United States of arms sales.
Sec. 226. Enforcement and processing of arms export licensing requirements.
Sec. 227. Fair pricing.
Sec. 228. Presidential authorities.
Sec. 229. Amendments to eliminate obsolete and inconsistent provisions.
Sec. 230. Contract administrative service charges for NATO subsidiary bodies.
Sec. 231. Technical corrections.
TITLE III--OVERSEAS PRIVATE INVESTMENT CORPORATION; TRADE AND DEVELOPMENT
AGENCY
Sec. 301. Revision of certain private sector programs.
TITLE IV--SPECIAL AUTHORITIES, RESTRICTIONS ON ASSISTANCE, AND REPORTS
Sec. 401. Consolidation and revision of special authorities, restrictions,
and reporting requirements.
TITLE V--GENERAL PROVISIONS
Sec. 501. Consolidation and revision of administrative authorities and
elimination of obsolete provisions.
TITLE VI--TECHNICAL AND CONFORMING PROVISIONS
Sec. 601. Effective date.
Sec. 602. Savings provisions.
Sec. 603. Retention of certain provisions formerly in the Foreign Assistance
Act.
Sec. 604. Conforming amendments.
Sec. 605. Repeal of obsolete provisions.
TITLE VII--SPECIAL ASSISTANCE INITIATIVES
Chapter 1--Development Fund for Africa
Sec. 701. Development assistance for sub-Saharan Africa.
Sec. 702. Authorization of appropriations for assistance for sub-Saharan
Africa.
Sec. 703. Reports and evaluations.
Chapter 2--Assistance for Eastern Europe
Sec. 711. United States policy regarding Eastern Europe.
Sec. 712. Basic objectives of assistance.
Sec. 713. Assistance activities.
Sec. 714. Enterprise Funds.
Sec. 715. Program administration.
Chapter 3--Multilateral Assistance Initiative for the Philippines
Sec. 721. Findings and statement of policy.
Sec. 722. Assistance.
Sec. 723. Report to Congress.
Sec. 724. Authorization of appropriations; authorities.
Sec. 725. Appropriations in future years.
Sec. 726. Donor coordination.
TITLE VIII--PRESIDENTIAL CONTINGENCY FUND
Sec. 801. Authority.
TITLE IX--AUTHORIZATIONS FOR FISCAL YEAR 1993
Sec. 901. Authorizations.
SEC. 3. TABLE OF CONTENTS FOR AMENDED FOREIGN ASSISTANCE ACT.
  The Foreign Assistance Act of 1961 is amended by inserting the following
  after the enacting clause:
`TABLE OF CONTENTS
  `The table of contents for this Act is as follows:
`Sec. 1. Statement of policy.
`TITLE I--ECONOMIC ASSISTANCE
`Chapter 1--Development Assistance
`Subchapter A--Development Assistance Authorities
`Sec. 1101. Assistance for development needs.
`Sec. 1102. Authorization of appropriations.
`Subchapter B--Other Development Assistance Programs and Authorities
`Sec. 1111. Capital and infrastructure assistance.
`Sec. 1112. Development education.
`Sec. 1113. Strengthening the capacity of nongovernmental organizations,
including research and educational institutions.
`Subchapter C--Other Authorities and Requirements
`Sec. 1121. Impact of development assistance on environment and natural
resources.
`Sec. 1122. Cost sharing.
`Sec. 1123. Assistance limited to economic programs.
`Chapter 2--Development Assistance Credit Programs
`Sec. 1201. Private sector credit program.
`Sec. 1202. Housing and urban credit program.
`Chapter 3--Economic Support Assistance
`Sec. 1301. Assistance under special economic, political, and security
conditions.
`Sec. 1302. Authorization of appropriations.
`Sec. 1303. Administration of justice.
`Sec. 1304. Democracy contingency fund.
`Chapter 4--International Narcotics Control
`Sec. 1401. General.
`Sec. 1402. Authority to enter into agreements and provide assistance.
`Sec. 1403. Provisions applicable to assistance under this chapter.
`Sec. 1404. Transfer of funds when countries fail to take adequate steps to
halt illicit drug production or trafficking.
`Sec. 1405. Waiver of certain restrictions on assistance.
`Sec. 1406. International narcotics control report.
`Sec. 1407. Determining major drug-transit and major illicit drug producing
countries.
`Sec. 1408. Authorization of appropriations.
`Chapter 5--Other Economic Assistance Programs
`Subchapter A--American Schools and Hospitals
`Sec. 1501. Authority to provide assistance.
`Sec. 1502. Authorization of appropriations.
`Subchapter B--Debt Exchanges for Development
`Sec. 1511. Debt exchange.
`Subchapter C--Reimbursable Programs
`Sec. 1521. Authority to conduct reimbursable programs.
`Sec. 1522. Use of payments.
`Chapter 6--International Disaster Assistance
`Sec. 1601. Statement of policies.
`Sec. 1602. Authority to provide assistance.
`Sec. 1603. Authorization of appropriations.
`Sec. 1604. Borrowing authority.
`Chapter 7--Voluntary Contributions to International Organizations and Programs
`Sec. 1701. Authority to provide assistance.
`Sec. 1702. Authorization of appropriations.
`Sec. 1703. Condition on contributions to International Organizations.
`Sec. 1704. Withholding of United States proportionate share for certain
programs of international organizations.
`Sec. 1705. Contributions to United Nations Relief and Works Agency.
`Sec. 1706. Auditing of accounts of international organizations.
`Chapter 8--Administration of Economic Assistance Programs
`Subchapter A--Operating Expenses
`Sec. 1801. Authorizations of appropriations for operating expenses generally.
`Sec. 1802. Authorizations of appropriations for operating expenses of the
inspector general.
`Sec. 1803. Availability of funds.
`Subchapter B--Evaluation
`Sec. 1811. Evaluation and accountability.
`Subchapter C--Cooperation with Nongovernmental Sector
`Sec. 1821. Voluntary Cooperation in Development.
`TITLE II--MILITARY ASSISTANCE AND RELATED PROGRAMS
`Chapter 1--Policies Regarding Military Assistance
`Sec. 2101. General.
`Sec. 2102. Objectives of military assistance.
`Chapter 2--Foreign Military Financing Program
`Sec. 2201. Authority to furnish assistance.
`Sec. 2202. Terms of financing.
`Sec. 2203. Eligibility.
`Sec. 2204. Approval of third country transfers.
`Sec. 2205. Drawdown authority.
`Sec. 2206. Grant transfers of excess defenses articles.
`Sec. 2207. Considerations in furnishing assistance.
`Sec. 2208. Civic action in Africa.
`Sec. 2209. Authorization of appropriations.
`Chapter 3--Stockpiling of Defense Articles for Foreign Countries
`Sec. 2301. Restrictions on stockpiling.
`Sec. 2302. Location of stockpiles.
`Sec. 2303. Additions to war reserve stocks.
`Chapter 4--Overseas Management of Assistance and Sales Programs
`Sec. 2401. Authorized functions.
`Sec. 2402. Costs.
`Sec. 2403. Role of chief of mission.
`Chapter 5--International Military Education and Training
`Sec. 2501. Authority to furnish assistance.
`Sec. 2502. Terms of assistance.
`Sec. 2503. Exchange training.
`Sec. 2504. Exemptions.
`Sec. 2505. Authorization of appropriations.
`Chapter 6--Peacekeeping Operations
`Sec. 2601. General authority.
`Sec. 2602. Special transfer and drawdown authorities.
`Sec. 2603. Administrative authorities.
`Sec. 2604. Authorization of appropriations.
`Chapter 7--International Terrorism
`Sec. 2701. General.
`Sec. 2702. Authority to provide antiterrorism assistance.
`Sec. 2703. Authorities and limitations.
`Sec. 2704. Congressional presentation documents.
`Sec. 2705. Administrative authorities.
`Sec. 2706. Authorization of appropriations.
`TITLE III--OVERSEAS PRIVATE INVESTMENT CORPORATION; TRADE AND DEVELOPMENT
AGENCY
`Chapter 1--Overseas Private Investment Corporation
`Sec. 3101. Purpose and policy.
`Sec. 3102. Stock of the corporation.
`Sec. 3103. Organization and management.
`Sec. 3104. Investment insurance, guarantees, financing, and other programs.
`Sec. 3105. Enhancing private political risk insurance industry.
`Sec. 3106. Guidelines and requirements for OPIC support.
`Sec. 3107. Issuing authority, direct investment fund, equity fund, and
reserves.
`Sec. 3108. Income and revenues.
`Sec. 3109. General provisions relating to insurance, guaranty, and financing
program.
`Sec. 3110. General provisions and powers.
`Sec. 3111. Annual report; maintenance of information.
`Sec. 3112. Definitions.
`Chapter 2--Trade and Development Agency
`Sec. 3121. Purpose.
`Sec. 3122. Authority to provide assistance.
`Sec. 3123. Director and personnel.
`Sec. 3124. Annual report.
`Sec. 3125. Inspector General.
`Sec. 3126. Funding.
`TITLE IV--SPECIAL AUTHORITIES, RESTRICTIONS ON ASSISTANCE, AND REPORTS
`Chapter 1--Special Authorities
`Sec. 4101. Authority to transfer between accounts.
`Sec. 4102. Special waiver authority.
`Sec. 4103. Unanticipated contingencies.
`Sec. 4104. Emergency assistance.
`Sec. 4105. Termination expenses.
`Sec. 4106. Exemption of assistance through nongovernmental organizations
from restrictions.
`Sec. 4107. Exemption of training activities from prohibitions.
`Sec. 4108. Nonapplicability to military assistance of certain Neutrality
Act provisions.
`Chapter 2--Restrictions on Assistance
`Sec. 4201. Ineligible countries.
`Sec. 4202. Police training.
`Sec. 4203. Countries in arrears on assistance repayments.
`Sec. 4204. Family planning activities.
`Sec. 4205. Competition with  United States exports.
`Sec. 4206. Nuclear nonproliferation.
`Sec. 4207. Major illicit drug producing and drug transit countries.
`Sec. 4208. Assistance for elections.
`Sec. 4209. Duties of a noncombatant nature.
`Chapter 3--Reports and Notifications to Congress
`Sec. 4301. Congressional presentation documents for economic assistance.
`Sec. 4302. Human rights policy and reports.
`Sec. 4303. Annual allocation report.
`Sec. 4304. Notification of program changes.
`TITLE V--GENERAL PROVISIONS
`Chapter 1--Exercise and Coordination of Functions
`Sec. 5101. Delegations by the President.
`Sec. 5102. Designation of administering agency for title I.
`Sec. 5103. Authority to establish missions abroad.
`Sec. 5104. Presidential findings and determinations.
`Chapter 2--Administrative Authorities
`Sec. 5201. Allocation of funds and reimbursement among agencies.
`Sec. 5202. Genenal authorities.
`Sec. 5203. Authorized administrative uses of funds.
`Chapter 3--Special Requirements and Authorities Relating to Appropriations
and Local Currencies
`Subchapter A--Provisions Relating to Appropriations
`Sec. 5301. Requirement for authorization of appropriations.
`Sec. 5302. Authority for extended period of availability of appropriations.
`Sec. 5303. Reduction in earmarks.
`Subchapter B--Local Currencies
`Sec. 5321. Special accounts for and use of host-country owned local cur-
rency.
`Sec. 5322. Use of certain foreign currencies owned by the United States.
`Sec. 5323. Interest on  United States-owned foreign currency proceeds.
`Sec. 5324. Use of local currencies.
`Sec. 5325. Interest on local currency accruing to nongovernmental
organizations.
`Chapter 4--Procurement and Disposition of Commodities and Defense Articles
`Sec. 5401. Use of private enterprise.
`Sec. 5402. Procurement standards and procedures.
`Sec. 5403. Shipping on  United States vessels.
`Sec. 5404. Excess and other available property.
`Sec. 5405. Retention and use of certain items and funds.
`Sec. 5406. Laws relating to contracts and government expenditures.
`Sec. 5407. Transportation charges incurred by the Red Cross or private
voluntary organizations.
`Chapter 5--Personnel
`Sec. 5501. Statutory officers in economic assistance agency.
`Sec. 5502. Employment of personnel.
`Sec. 5503. Experts, consultants, and retired officers.
`Sec. 5504. Detail of personnel to foreign governments and international
organizations.
`Sec. 5505. Chief of economic assistance mission abroad.
`Sec. 5506. Chairman of OECD Development Assistance Committee.
`Sec. 5507. Assignment of DOD personnel to civil offices.
`Sec. 5508. Discrimination against United States personnel providing
assistance.
`Chapter 6--Definitions and Miscellaneous Provisions
`Sec. 5601. Definitions.
`Sec. 5602. Activities under other laws not affected.
TITLE I--STATEMENT OF POLICY; ECONOMIC ASSISTANCE PROGRAMS
SEC. 101. STATEMENT OF POLICY.
  The Foreign Assistance Act of 1961 is amended by inserting after the table
  of contents as added by section 3 of this Act the following:
`SECTION 1. STATEMENT OF POLICY.
  `Peace and prosperity depend on the United States remaining at the forefront
  of a world community increasingly receptive to democracy, market economics,
  and cooperation against aggression.
  `To this end, the United States has in the past helped strengthen the
  capacity of other nations to develop their economies, improve security
  and build responsible democratic government.
  `For over forty years the spectre of international communism weighed heavily
  on the structures and priorities of United States economic and security
  assistance. This global threat to world freedom has finally collapsed. In
  its wake is the spreading worldwide recognition that freedom can only be
  sustained by governments whose legitimacy rests firmly on the expressed
  consent of the governed; that are themselves agents and protectors of
  individual rights; and that are capable of sustaining an environment
  conducive to equal economic and political opportunity for all citizens.
  `The pathway to a more universally democratic world order is fraught
  with uncertainty, and will be marked by a volatile mix of sharply rising
  demands for political and cultural self-determination, deepening economic
  interdependence, and the rapid spread of powerful new technologies. The
  President must therefore be able to deal with many sudden and unforeseen
  threats and opportunities to the spread and consolidation of democratic
  values and American leadership and interests.
  `Familiar lines between North and South, East and West, are
  blurred. Conventional boundaries between foreign and domestic affairs,
  along with traditional definitions of what constitutes political,
  economic, and security interests are shifting in the transition to
  a new world order. Traditional arrangements and institutional policy
  instruments--including those covered by this Act--must be adaptable in a
  world in flux.
  `Fostering economic, military and other forms of cooperation is vital to
  the success of United States foreign policy and a necessary complement
  to skillful diplomacy. Humanitarian and related forms of development
  assistance also will continue to satisfy deep and abiding commitments of
  the American people to building a more just and compassionate international
  community. For success in all categories, regional and global strategies
  and priorities must respond to and shape changing realities.
  `To meet major new opportunities and challenges abroad requires substantial
  improvements in the coherence of foreign assistance programs, administrative
  simplicity, flexibility and, above all, clarity of purpose. Within our grasp
  are major opportunities to assist transitions to democracy and economic
  development, to effect the peaceful resolution of regional conflicts,
  and to lead important new multilateral initiatives. The United States
  looks forward to expanding partnerships with those who share our values
  and interests in building a new and more democratic world order.
  `To guide this process it should be the policy of the United States that
  the financial, material and human resources authorized by this Act should
  serve five mutually reinforcing goals:
  `(1) PROMOTING AND CONSOLIDATING DEMOCRATIC VALUES- This is the
  first and preeminent foreign policy challenge of the United States,
  affecting our long-term national security, economic prosperity and social
  well-being. Encouraging those who seek to embrace and institutionalize
  democratic values will be the overarching purpose and criterion producing
  greater coherence among programs under this Act. Genuine transitions
  toward democracy, however difficult, cannot be accomplished in isolation
  from the rest of the world, and there will be rising expectations and
  justification for some form of United States support. Congress recognizes
  that human rights have no frontiers and are indivisible. The essential
  ingredients of democracy--political pluralism confirmed through free and
  fair elections, an open, accessible, fair, and predictable rule of law,
  an open and independent media, economic opportunity for all, and respect
  for internationally recognized human rights--are the basic building blocks
  of the new world order.
  `(2) PROMOTING MARKET PRINCIPLES AND STRENGTHENING COMPETITIVENESS-
  Sustainable economic growth and development depend on the pursuit of
  sound, growth-oriented, and environmentally responsible market based
  policies which, in turn, will benefit United States economic interests
  abroad. Helping expand United States business presence in democratizing
  countries strengthens the local private sector, broadens demand for
  United States goods and services, opens the way for expanded trade,
  and raises worldwide living standards. By encouraging market forces
  through deregulation, privatization, appropriate labor market reforms,
  and promotion of free trade and investment, reform-minded countries can
  establish an appropriate complement to building and securing democracy.
  `Timely United States financial and technical assistance will seek to
  accelerate and consolidate market-oriented reforms, while complementary
  educational and capacity building programs will help build the human capital
  that is so crucial for modern economies. Continued assistance to strong,
  adequately funded, multilateral economic institutions also will foster more
  open and productive local and world markets. A fundamental long-run policy
  objective is to have countries move from foreign assistance relationships
  toward mutually beneficial trade and investment partnerships with the
  United States.
  `(3) PROMOTING PEACE- Security assistance and economic assistance, backed
  by skillful diplomacy, will continue to be a key tool of American foreign
  policy. Peace, above all, is a precondition for political and economic
  development. And sustained political and economic development sustains
  peace. International and regional security is necessary for democracy and
  free enterprise to flourish.
  `United States military assistance remains essential to deterring regional
  aggression. Substantial and timely financial and material assistance will
  also be required to enhance United Nations peacekeeping capabilities,
  to ensure rapid reconstruction and recovery following the resolution
  of regional conflicts, and to discourage the proliferation of nuclear,
  chemical, and biological weapons and the spread of advanced missile delivery
  systems. Economic assistance linked to strategies for broad-based economic
  growth will contribute to stability within borders and peaceful relationships
  with neighbors.
  `Violent conflicts occurring within--not among--nations, pose new challenges
  for effectively assisting efforts to resolve local disputes through peaceful
  means and to achieve national reconciliation. In addition, the unpredictable
  dangers of new and resurgent tensions that often accompany rising political
  pluralism--racial, religious, and ethnic conflicts and the denial of human
  rights--point to the need of allowing the President greater flexibility for
  using foreign military and economic assistance to advance the cause of peace.
  `(4) PROTECTING AGAINST TRANSNATIONAL THREATS- Environmental degradation,
  narcotics trafficking, terrorism and other transnational threats,
  jeopardize the security and economic well being of individuals, nations
  and the global community in new and invidious ways. Providing timely and
  substantial assistance for initiatives to overcome these dangers within
  and among nations is a rising priority. The United States has a special
  interest in devising and supporting new response strategies with the
  necessary domestic and international cooperation to render them effective.
  `(5) MEETING HUMANITARIAN NEEDS- Programs of effective humanitarian
  assistance respond to a wide variety of foreign needs and deeply
  held American values. Many important United States-sponsored health,
  child survival, population, and other activities contribute to long-term
  development by alleviating the suffering of the world's poorest peoples and
  reflect the humanitarian concerns of the American people. The United States
  will continue to maintain its unequaled record in responding quickly and
  substantially to alleviate suffering and the plight of refugees caused by
  natural or man made disasters. Famine, environmental crises, epidemics,
  and the flow of refugees caused by civil wars, repression, and unwise
  economic policies will not be easily eradicated.
  `Strategies to advance democratization, economic policy reform, security
  enhancement, and strategies in response to humanitarian imperatives, should
  be mutually reinforcing to the maximum extent possible. Country and regional
  priorities should be set and revised on the basis of progress toward the
  attainment of one or more of the policy goals, with the advancement of
  democracy the overall long-term measure of success.
  `Bilateral economic, technical, military, and other material assistance,
  and support for international organizations as provided under this Act will
  in complementary and coherent fashion advance these five policy goals. And
  assistance authorized by this Act should be coordinated with the other
  relevant international activities of the United States Government so as
  to achieve the goals of this Act.
  `All other countries able to contribute will be urged to join in a common
  undertaking to meet the goals stated in this part. Such cooperation will
  be essential to sustaining and expanding the revitalization of the United
  Nations and other international mechanisms. Central to this process must
  be creative responsibility sharing with the United States' main global
  partners. Strong and effective multilateralism, particularly among the
  growing community of democratic nations, will improve the prospects for
  peace and prosperity regionally and globally.
  `Restructuring and reintegrating economic, security and humanitarian
  assistance to advance the goals outlined in this section will require
  a transition period. Any new--or changes in existing--bilateral and
  multilateral partnerships must be based upon sound plans and programs. The
  interaction of political, social, and economic aspects of nation building
  are complex and conditioned by local history and cultural traditions. The
  United States must also continue to be responsive to the efforts of recipient
  countries to mobilize their own resources and help themselves, as well as
  to the external and internal pressures which constrain this process. But
  above all, and to an increasing extent, United States foreign assistance
  policy will emphasize the strengthening of shared democratic values.
  `Adapting the assistance instruments and programs authorized by this Act
  to support more effectively the policy goals outlined in this section,
  will require close consultation and cooperation between Congress and the
  Executive Branch. This process will allow the United States to assess
  and then to influence the long-term impact of major international changes
  underway or on the horizon, at this defining moment of history.
SEC. 102. REVISION OF ASSISTANCE PROGRAMS.
  The Foreign Assistance Act of 1961 is amended by striking out part I and
  inserting in lieu thereof the following:
`TITLE I--ECONOMIC ASSISTANCE
`CHAPTER 1--DEVELOPMENT ASSISTANCE
`Subchapter A--Development Assistance Authorities
`SEC. 1101. ASSISTANCE FOR DEVELOPMENT NEEDS.
  `(a) STATEMENT OF POLICY- The Congress finds that by addressing the
  interrelated issues of social and human progress, economic growth, and
  political reform, long-term development provides the foundation on which
  peace and the promotion of democratic values can flourish. The Congress
  further finds that, consistent with the goals described in section 1 of
  this Act, development assistance provided under this Act should--
  `(1) recognize that the developing countries themselves hold the key to
  their own progress;
  `(2) promote sustainable growth and development which fosters the
  participation of individuals in the economic and political processes of
  their countries and, in particular, recognize and foster the expanded
  participation of women in the development process; and
  `(3) encourage and implement new cooperative relationships with developing
  countries based upon shared interests of political and economic freedom
  through, among other things--
  `(A) emphasizing sound economic policies and improved governance as a
  basis for broad-based growth;
  `(B) encouraging income-generating opportunities by training people
  in necessary skills, and expanding the availability of jobs through,
  for example, the increased participation of the United States and local
  private sectors in trade and investment;
  `(C) encouraging responsible environmental policies and prudent management
  of natural resources, ensuring also that economic growth occurs in an
  environmentally sustainable manner; and
  `(D) improving the capacity of individuals and families to better their
  economic and social well-being by mobilizing their resources to stimulate
  growth and social development.
  `(4) be tailored for individiual countries to recognize that the needs
  and problems of each country vary because of their history and differences
  in their political, economic, and legal systems, their natural and human
  resources, and their current stage of economic development.
  `(b) ALLOCATION OF RESOURCES- It is the sense of the Congress that the United
  States, taking into consideration the goals set forth in section 1, should--
  `(1) concentrate development assistance in countries which will make the
  most effective use of that assistance;
  `(2) focus its development assistance on those types of assistance activities
  which the United States can provide most effectively, and which meet the
  particular economic assistance requirements of a country; and
  `(3) not provide development assistance for a program or project in a country
  if the relevant sector or national economic policies of that country are
  clearly unfavorable to the sustainability or broadest possible impact of
  the assisted program or project.
  `(c) AUTHORIZATION- The President shall use the authorities of this section
  to provide assistance, in furtherance of the goals set forth in section 1,
  to meet development needs in developing countries.
  `(d) GENERAL AUTHORITIES- The President is authorized to provide development
  assistance for the following purposes:
  `(1) Support for economic growth and democratic development-
  `(A) Rationale-
  `(i) Broad based, sustainable economic growth is in the interest of the
  United States because it improves the living standards and quality of life
  of their citizens, develops international markets to the mutual benefit of
  United States and developing countries, reduces the dependence of countries
  on external assistance, and contributes to a stable, peaceful world. Such
  growth, led by the private sector, is necessary to create the economic base
  in developing countries that enables the poor to increase their incomes and
  gain access to productive resources and services. Appropriate government
  policies, laws, and regulations are required for balanced and sustained
  growth as well as to ensure fairness and to address the worst aspects of
  poverty in developing countries.
  `(ii) The promotion of democracy throughout the world is in the basic
  interest of the United States. Democratic development, political pluralism,
  and respect for internationally recognized human rights are intrinsically
  linked to economic and social progress. It is in the United States
  interest and in keeping with our democratic traditions to foster the
  spread of democratic values, aspirations and universal respect for civil
  and political liberties.
  `(B) USES OF ASSISTANCE- Assistance may be furnished to--
  `(i) enhance the capacity to achieve equitable, broad-based and sustainable
  economic growth through, among other things, trade, investment, environmental
  enhancement, agricultural development, commodity imports, and infrastructure
  activities (including the transportation, energy, and telecommunications
  sectors), support for the private sector, and support for sectoral and
  national level reforms to stabilize economies and support structural
  adjustments designed to improve the efficiency with which resources
  are allocated thus promoting growth and equality of opportunity in the
  participation in the benefits of growth.
  `(ii) promote the increased adherence to internationally recognized human
  rights and to develop and strengthen  democratic values, practices,
  and institutions through such activities as modernization of national
  justice systems; strengthening electoral processes; development of the
  institutional capacity of legislatures; professionalization of the media;
  strengthening legal codes and training; development of organizational and
  managerial skills in community groups, labor unions and local government;
  and improving access of the poor to land and other resources through
  support for legal reforms to secure land titles.
  `(2) Address humanitarian assistance needs and global problems-
  `(A) RATIONALE-
  `(i) It is in the United States interest to assist countries to achieve
  patterns of growth and development which will reduce poverty and allow
  all people, especially those with low incomes, to lead economically and
  socially productive lives. Further, peace and stability in the world
  cannot be achieved without economic development that also addresses the
  worst manifestations of poverty.
  `(ii) The economic and social well-being and the security of the United
  States and other countries is affected by the effectiveness with which the
  world community addresses transnational problems. Responsible management
  of physical environmental and natural resources is necessary to insure the
  availability of resources for future generations and to assure that the
  burdens of improved resource management do not fall disproportionately
  on the poor. The impact of malaria, acquired immune deficiency syndrome
  (AIDS), and other communicable diseases threatens devastation to whole
  populations. Similarly, the cultivation of illicit narcotics is both a
  product and cause of poverty, and a development problem which must be
  addressed on a transnational basis.
  `(B) USES OF ASSISTANCE- Assistance may be furnished to support the
  increased capacity of people to participate in the development process
  and to address transnational problems. Such assistance may include,
  among other things, activities to enhance food security, support for the
  implementation of market oriented policies, primary and adult education,
  child survival activities, environmentally sound resource management
  (including environmentally sustainable agriculture), improvements in health
  and sanitation, support for family planning activities, support for micro
  and small private enterprises, support for low-income shelter solutions,
  and development programs (including narcotics awareness programs) that are
  coordinated with international narcotics control assistance and would help
  reduce illicit cultivation of narcotic and psychotropic drugs and other
  controlled substances.
  `(e) RELATIONSHIP TO OTHER PROVISIONS OF LAW- Funds authorized to be
  appropriated by this section which are used to carry out the activities
  identified in subsection (d)(2)(B) and subsection (d)(1)(B)(ii) of this
  section may be made available notwithstanding any provision of law which
  restricts assistance to foreign countries.
`SEC. 1102. AUTHORIZATION OF APPROPRIATIONS.
  `There are authorized to be appropriated to the President to carry out
  this subchapter $1,277,000,000 for fiscal year 1992.
`Subchapter B--Other Development Assistance Programs and Authorities
`SEC. 1111. CAPITAL AND INFRASTRUCTURE ASSISTANCE.
  `In order to achieve sustained economic growth and development, it is
  crucial that the physical and economic infrastructure requirements of
  developing countries be met. The President should ensure the developmental
  value of capital assistance, monitor the provision of that assistance so
  as to ensure that these developmental criteria are satisfied, and consider
  related trade and commercial opportunities for continued United States
  involvement and participation that furthers the national interests of the
  United States. In order to support developmentally-sound trade and investment
  opportunities in the form of capital and infrastructure assistance (including
  related services), the President may use funds made available for economic
  assistance under this title for activities consistent with this section.
`SEC. 1112. DEVELOPMENT EDUCATION.
  `The President may use funds made available for economic assistance under
  this title to support development education programs, with emphasis on
  those conducted by private voluntary organizations and cooperatives, in
  order to assist in the education of United States citizens about developing
  countries, the development process, and the importance to the United States
  of developing countries.
`SEC. 1113. STRENGTHENING THE CAPACITY OF NONGOVERNMENTAL ORGANIZATIONS,
INCLUDING RESEARCH AND EDUCATIONAL INSTITUTIONS.
  `The President may use funds made available for economic assistance under
  this title to furnish assistance to nongovernmental organizations, including
  research and educational institutions, in the United States and abroad for
  the purpose of strengthening their capacity to develop and carry out programs
  concerned with the economic and social development of developing countries.
`Subchapter C--Other Authorities and Requirements
`SEC. 1121. IMPACT OF DEVELOPMENT ASSISTANCE ON ENVIRONMENT AND NATURAL
RESOURCES.
  `(a) STATEMENT OF POLICY- It is the sense of the Congress that--
  `(1) the economic and social well-being and the security of the United
  States and other countries is affected by how the world's environment
  and physical resource base are managed, and that consumption patterns,
  systems of industrial and agricultural production, and the manner of use
  of natural resources all have an impact on the opportunities for long-term
  development and growth and survival for all countries;
  `(2) environmentally responsible management of physical resources is
  necessary by both developed and developing countries to insure their
  availability for future generations and to assure that the burdens of
  improved resource management do not fall disproportionately on the poor;
  `(3) sustainable development is development that meets the needs of the
  present without compromising the ability of future generations to meet
  their own needs; and
  `(4) economic assistance programs authorized by this title should assist
  countries to adopt policies and to carry out programs that promote economic
  growth that is environmentally sound.
  `(b) IMPACT ASSESSMENT- The President, in implementing programs and projects
  under this chapter and chapter 3 of this title, should take fully into
  account the impact of such programs and projects upon the environment and
  natural resources of developing countries. Subject to such procedures as
  the President considers appropriate, the President should--
  `(1) prepare and take fully into account an initial environmental examination
  of every program or project to determine whether it significantly affects
  the environment;
  `(2) prepare and take fully into account an environmental impact statement
  for any program or project significantly affecting the environment of the
  global commons outside the jurisdiction of any country, the environment of
  the United States, or other aspects of the environment which the President
  may specify; and
  `(3) prepare and take fully into account an environmental assessment of
  any proposed program or project significantly affecting the environment
  of any foreign country.
Where appropriate, local technical resources should be used in preparing
environmental impact statements and environmental assessments pursuant to
this section.
  `(c) EXCEPTIONS- The President should establish exceptions for emergency
  conditions and for cases in which implementation of procedures described
  in subsection (b) would be seriously detrimental to the foreign policy
  interests of the United States.
  `(d) RELATIONSHIP TO OTHER PROVISIONS OF LAW- Funds authorized to be
  appropriated by this Act which are used to support activities in the
  environment and energy sectors may be made available notwithstanding any
  provision of law which restricts assistance to foreign countries.
`SEC. 1122.  COST SHARING.
  `To ensure its commitment to, and the sustainability of development
  assistance provided under this chapter through the government of a country,
  such government should bear an appropriate share of the costs of the
  entire program or project with respect to which the assistance is to be
  furnished. Such costs may be borne on an `in kind' basis.
`SEC. 1123. ASSISTANCE LIMITED TO ECONOMIC PROGRAMS.
  `(a) IN GENERAL- Economic assistance provided under this title shall
  be available for economic programs and may not be used for military or
  paramilitary purposes, or purchase of stingers and mules to transport them.
  `(b) EXCEPTION FOR CERTAIN TRAINING- The provisions of subsection (a)
  of this section shall not apply to economic assistance involving the
  participation of military personnel in training activities and conferences
  consistent with the purposes of section 1101.
`CHAPTER 2--DEVELOPMENT ASSISTANCE CREDIT PROGRAMS
`SEC. 1201. PRIVATE SECTOR CREDIT PROGRAM.
  `(a) FINDINGS AND POLICY- The Congress finds and declares that--
  `(1) the development of private enterprise, including cooperatives, is
  a vital factor in the stable growth of developing countries and in the
  development and stability of a free, open, and equitable international
  economic system; and
  `(2) it is, therefore, in the best interests of the United States to assist
  the development of the private sector in developing countries and to engage
  the United States private sector in that process.
  `(b) Authority-
  `(1) AUTHORITY- To carry out the policy expressed in subsection (a),
  the President is authorized--
  `(A) to make investments in projects that meet the criteria established
  pursuant to this subsection; and
  `(B) to make loans to, and to issue guarantees assuring against losses
  incurred in connection with investments in, loans to and guarantees for,
  projects that meet the criteria established pursuant to this subsection.
  `(2) FULL FAITH AND CREDIT- The full faith and credit of the United States
  is hereby pledged for the full payment and performance of guarantees issued
  pursuant to this section.
  `(3) TERMS AND CONDITIONS-
  `(A) Unless the President determines otherwise, the authority of this
  section may not be exercised to extend credit assistance to individual
  borrowers when the credit subsidy associated with that borrower would
  exceed 25 percent, using normal criteria for calculating subsidies under
  the Budget Enforcement Act of 1990.
  `(B) The President may issue regulations from time to time with regard to--
  `(i) the terms and conditions on which loans and investments will be made
  and guarantees issued under this section; and
  `(ii) the eligibility of beneficiaries.
  `(4) ENFORCEABILITY- Any guarantee issued under the authority of this
  section shall be conclusive evidence that such guarantee has been properly
  obtained, and that the underlying obligation as contracted qualifies for
  such guarantee. Except for fraud or material misrepresentation for which
  the parties seeking payment under such guarantee are responsible, such
  guarantee shall be presumed to be valid, legal, and enforceable.
  `(5) DENOMINATION OF LIABILITY- The losses guaranteed under this subsection
  may be in dollars or in other currencies. In the case of losses guaranteed
  in currencies other than dollars, the guarantees issued shall be subject
  to an overall payment limitation expressed in dollars.
  `(6) APPLICABILITY OF CERTAIN PROVISIONS- The authority of this section
  may be exercised notwithstanding section 5402 of this Act.
  `(c) APPROPRIATIONS REQUIREMENT- New direct loan obligations may be entered
  into and new guarantee commitments may be issued only to the extent that
  appropriations of budget authority to cover their costs are made in advance.
  `(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  to the President, $1,367,000, for fiscal year 1992 for administrative
  expenses necessary to carry out this section, which amount may be transferred
  to and merged with amounts appropriated pursuant to section 1801.
`SEC. 1202. HOUSING AND URBAN CREDIT PROGRAM.
  `(a) FINDINGS AND POLICY- The Congress finds that--
  `(1) shelter and other essential urban development services and facilities
  are among the most fundamental of human needs and a sound urban environment
  is essential to all societies;
  `(2) while most financing for urban development must come from domestic
  resources, carefully designed programs involving United States capital and
  expertise can increase the availability of domestic financing for improved
  shelter and related services for low-income people by demonstrating to
  local entrepreneurs  and institutions that providing urban services can
  be financially viable;
  `(3) particular attention should be given to programs which will support
  pilot projects for low-cost shelter and other urban services or which will
  have a maximum demonstration impact on local institutions, including local
  government, and national policy; and
  `(4) the long run goal of all such programs should be to develop domestic
  capabilities and to stimulate local credit institutions to make available
  domestic capital and other management and technological resources required
  for effective programs and policies relating to low-cost shelter and other
  urban services.
  `(b) CREDIT AUTHORITY- To carry out the policies expressed in subsection (a),
  the President is authorized to make loans and to issue guarantees assuring
  against losses incurred in connection with loans or other investments made
  for projects that meet the criteria set forth in subsection (a) and that
  promote the goals set forth in section 1.
  `(c) TERMS AND CONDITIONS-
  `(1) Unless the President determines otherwise, the authority of this
  section may not be exercised to extend credit assistance to individual
  borrowers when the credit subsidy associated with that borrower would
  exceed 25 percent, using normal criteria for calculating subsidies under
  the Budget Enforcement Act of 1990.
  `(2) The President may issue regulations from time to time with regard to--
  `(A) the terms and conditions on which loans and guarantees will be issued
  under this section; and
  `(B) the eligibility of beneficiaries.
  `(d) FOCUS OF ACTIVITIES- Activities carried out under this section shall
  be directed primarily to the shelter and urban services needs of the poor,
  including--
  `(1) projects which provide improved home sites to poor families on which
  to build shelter, and expandable core shelter units on serviced sites;
  `(2) slum upgrading projects designed to conserve and improve existing
  shelter;
  `(3) shelter and urban projects for low-income people designed for
  demonstration or institution building purposes focusing on the mobilization
  of capital and the improvement of urban management and local government;
  `(4) community facilities and services in support of projects authorized
  under this section; and
  `(5) other urban services and infrastructure of particular importance to
  urban environment or the needs of the poor.
  `(e) FULL FAITH AND CREDIT- All guarantees issued under this section
  (or under the former guarantee authorities of section 222 or 222A of this
  Act of predecessor guarantee authorities) shall constitute obligations,
  in accordance with the terms of such guarantees, of the United States of
  America and the full faith and credit of the United States of America is
  hereby pledged for the full payment and performance of such obligations.
  `(f) GUARANTEES UNDER FORMER AUTHORITIES- Guarantees committed, authorized,
  or outstanding under the guarantee authorities formerly contained in section
  222 or 222A of this Act (or predecessor guarantee authorities) shall continue
  subject to provisions of law originally applicable to those guarantees.
  `(g) APPROPRIATIONS REQUIREMENT- New direct loan obligations may be entered
  into and new guarantee commitments may be issued only to the extent that
  appropriations of budget authority to cover their costs are made in advance.
  `(h) AUTHORIZATION OF APPROPRIATIONS-
  `(1) There are authorized to be appropriated to the President, $2,500,000,
  for fiscal year 1992 to pay the cost of guarantees and direct loan
  obligations authorized by this section.
  `(2) There are authorized to be appropriated to the President, $7,000,000,
  for fiscal year 1992 for administrative expenses necessary to carry out
  this section, which amount may be transferred to and merged with amounts
  appropriated pursuant to section 1801.
`CHAPTER 3--ECONOMIC SUPPORT ASSISTANCE
`SEC. 1301. ASSISTANCE UNDER SPECIAL ECONOMIC, POLITICAL, AND SECURITY
CONDITIONS.
  `Under special economic, political, or security conditions, the national
  interest of the United States may require economic support for countries
  in amounts which could not be justified only under chapter 1 of this
  title. In such cases, the President is authorized to furnish assistance
  to countries and organizations in order to promote economic or political
  stability. Such assistance shall be furnished consistent with the goals
  set forth in section 1 and, to the maximum extent feasible, the purpose
  and authorities specified in section 1101.
`SEC. 1302. AUTHORIZATION OF APPROPRIATIONS.
  `There are authorized to be appropriated to the President to carry out
  section 1301 $3,228,000,000 for the fiscal year 1992.
`SEC. 1303. ADMINISTRATION OF JUSTICE.
  `(a) AUTHORITY- The President may furnish assistance from funds made
  available to carry out section 1301 to countries and organizations,
  including national, regional, and international institutions, in order
  to strengthen the administration of justice in developing countries and
  emerging democracies.
  `(b) PROVISION OF ASSISTANCE- Assistance under this section may include--
  `(1) programs to enhance professional capabilities to carry out investigative
  and forensic functions conducted under judicial or prosecutorial control;
  `(2) programs to assist in the development of academic instruction and
  curricula for training law enforcement personnel;
  `(3) programs to improve the administrative and management capabilities
  of law enforcement agencies, especially their capabilities relating to
  career development, personnel evaluation, and internal discipline procedures;
  `(4) programs to improve penal institutions and the rehabilitation of
  offenders; and
  `(5) such other programs to support the administration of justice in
  developing countries and emerging democracies as the President determines
  to be appropriate.
  `(c) RELATIONSHIP TO OTHER LAWS- Assistance furnished under this section
  may be made available notwithstanding section 4202 of this Act.
`SEC. 1304. DEMOCRACY CONTINGENCY FUND.
  `(a) AUTHORITY TO PROVIDE ASSISTANCE- The President is authorized to use
  funds made available to carry out this section to provide assistance for
  a foreign country if the President determines that a country--
  `(1) has recently emerged or is in the process of emerging as a democracy; or
  `(2) has recently emerged or is emerging from civil strife and either has a
  democratically elected government or is making substantial progress toward
  a democratic form of government.
  `(b) PURPOSES OF ASSISTANCE- Assistance under this section shall be
  provided--
 `(1) in the case of a country described in subsection (a)(1), to encourage
 and facilitate the process of creating and institutionalizing democracy
 and to meet economic and political needs; and
  `(2) in the case of a country described in subsection (a)(2), to meet the
  immediate economic and human needs resulting from the civil strife.
  `(c) AUTHORITIES FOR ASSISTANCE- Assistance under this section may be
  provided under the authorities of this chapter or any other provision of
  this Act.
  `(d) NONAPPLICABILITY OF OTHER PROVISIONS OF LAW- Assistance may be
  provided under this section notwithstanding any other provision of law upon
  notification by the President of the Speaker of the House of Representatives
  and the Committee on Foreign Relations of the Senate.
  `(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  to the President to carry out this section such sums as may be necessary.
  `(f) TRANSFER AUTHORITY-
  `(1) The President may use the authority of section 4101 of this Act to
  transfer funds for use under this section without regard to the 20 percent
  increase limitation contained in that section.
  `(2) The authority of paragraph (1) may not be used if it would cause
  the amount of unobligated funds available for use under this section to
  exceed $100,000,000.
`CHAPTER 4--INTERNATIONAL NARCOTICS CONTROL
`SEC. 1401. GENERAL.
  `(a) STATEMENT OF POLICY-
  `(1) International narcotics trafficking poses an unparalleled transnational
  threat in today's world, and its suppression is among the most important
  foreign policy objectives of the United States;
  `(2) Under the Single Convention on Narcotic Drugs, 1961, and under the
  United Nations Convention Against Illicit Traffic in Narcotic Drugs and
  Psychotropic Substances, 1988, the parties are required to criminalize
  certain drug related activities, provide appropriately severe penalties,
  and cooperate in the extradition of accused offenders.
  `(3) International narcotics control programs should include, as priority
  goals, the suppression of the illicit manufacture of and trafficking in
  narcotic and psychotropic drugs, and the progressive elimination of the
  illicit cultivation of the crops from which narcotic and psychotropic
  drugs are derived.
  `(4) The international community should provide assistance, where
  appropriate, to those producer and transit countries which require assistance
  in discharging these primary obligations.
  `(5) Effective international cooperation is necessary to control the
  illicit cultivation, production, and smuggling of, trafficking in, and
  abuse of narcotic and psychotropic drugs.
  `(b) MULTILATERAL DEVELOPMENT BANKS- In order to promote international
  cooperation in combating international trafficking in illicit narcotics,
  the United States should use its voice and vote in multilateral development
  banks to promote the development and implementation in the major illicit
  drug producing countries of programs for the reduction and eventual
  eradication of narcotic drugs and other controlled substances, including
  appropriate assistance in conjunction with effective programs of illicit
  crop eradication.
`SEC. 1402. AUTHORITY TO ENTER INTO AGREEMENTS AND PROVIDE ASSISTANCE.
  `(a) AUTHORITY TO ENTER INTO AGREEMENTS- In order to promote effective
  international cooperation, the President is authorized to conclude
  agreements, including reciprocal maritime agreements, with other countries
  to facilitate control of the production, processing, transportation, and
  distribution of narcotics analgesics, including opium and its derivatives,
  other narcotic and psychotropic drugs, and other controlled substances.
  `(b) AUTHORITY TO FURNISH ASSISTANCE- The President is authorized to furnish
  assistance under this chapter for the purposes of controlling narcotic and
  psychotropic drugs and other controlled substances notwithstanding any other
  provision of law, and is authorized to furnish narcotics-related assistance
  under other chapters of this title notwithstanding any provision of law
  that restricts assistance to foreign countries (except section 4201(a)(7)).
`SEC. 1403. PROVISIONS APPLICABLE TO ASSISTANCE UNDER THIS CHAPTER.
  `(a) CONTRIBUTION BY RECIPIENT COUNTRY- To ensure local commitment to
  the activities assisted under this chapter, the government of a country
  receiving assistance under this chapter should bear an appropriate share
  of the costs of any narcotics control program, project, or activity for
  which such assistance is to be provided. The government of a country may
  bear such costs on an `in kind' basis.
  `(b) USE OF HERBICIDES FOR AERIAL ERADICTION- The President, with the
  assistance of appropriate Federal agencies, shall monitor the use of any
  herbicides provided under this chapter for aerial eradication in order
  to determine the impact of such use on the environment and on the health
  of individuals.
  `(c) PERMISSIBLE USES OF AIRCRAFT AND OTHER EQUIPMENT-
  `(1) IN GENERAL- The President shall take all reasonable steps to ensure
  that aircraft and other equipment made available to foreign countries under
  this chapter are used only in ways that are consistent with the purposes
  for which such equipment was made available.
  `(2) REPORTS- In the reports submitted pursuant to section 1406, the
  President shall discuss any evidence indicating misuse by a foreign country
  of aircraft or other equipment made available under this chapter, and the
  actions taken by the United States Government to prevent future misuse of
  such equipment by that foreign country.
  `(d) LEASE OR LOAN- Any commodity that is made available for
  narcotics-related assistance under this Act may be provided to a foreign
  country on a lease or loan basis.
  `(e) PROHIBITION ON ASSISTANCE TO DRUG TRAFFICKERS- The President shall
  take all reasonable steps to ensure that, except in such circumstances as
  the President deems appropriate, assistance under this Act is not provided
  to or through any individual or entity that has been convicted or indicted
  of a violation of, or a conspiracy to violate, any law or regulation of the
  United States, a State or the District of Columbia, or a foreign country,
  relating to narcotic or psychotropic drugs or other controlled substances.
`SEC. 1404. TRANSFER OF FUNDS WHEN COUNTRIES FAIL TO TAKE ADEQUATE STEPS TO
HALT ILLICIT DRUG PRODUCTION OR TRAFFICKING.
  `Funds allocated under the report required by section 4303 for a country for
  economic support assistance, foreign military financing, or international
  military education and training, may be transferred to, and consolidated
  with, funds made available to carry out this chapter if--
  `(1) such assistance is withheld from the country for which it was allocated
  because of the requirements of section 4201(a)(7) or any other provision
  of law requiring the withholding of assistance for countries that have
  not cooperated with the United States or otherwise taken adequate steps
  to halt illicit drug production and trafficking; and
  `(2) such funds are used for assistance for countries that have taken
  significant steps to halt illicit drug production or trafficking.
`SEC. 1405. WAIVER OF CERTAIN RESTRICTIONS ON ASSISTANCE.
  `Section 4203 of this Act and any similar provisions of law that prohibit
  providing assistance to countries in default on obligations owed to
  the United States shall not apply to the provision of narcotics-related
  assistance, including narcotics control assistance under this chapter.
`SEC. 1406. INTERNATIONAL NARCOTICS CONTROL REPORT.
  `Not later than March 1 of each year, the President shall transmit to
  the Speaker of the House of Representatives, and to the Committee on
  Foreign Relations of the Senate, a comprehensive report on the state of
  international narcotics production and trafficking, and on United States
  efforts to prevent the illicit cultivation and manufacture of and trafficking
  in narcotic and psychotropic drugs and other controlled substances.
`SEC. 1407. DETERMINING MAJOR DRUG-TRANSIT AND MAJOR ILLICIT DRUG PRODUCING
COUNTRIES.
  `Not later than October 1 of each year, the President shall notify the
  appropriate committees on the Congress of which countries have been
  determined to be major illicit drug producing or major drug transit
  countries for that year.
`SEC. 1408. AUTHORIZATION OF APPROPRIATIONS.
  `There are authorized to be appropriated to the President to carry out
  this chapter $171,500,000 for the fiscal year 1992.
`CHAPTER 5--OTHER ECONOMIC ASSISTANCE PROGRAMS
`Subchapter A--American Schools and Hospitals
`SEC. 1501. AUTHORITY TO PROVIDE ASSISTANCE.
  `(a) GENERAL AUTHORITY- In order to promote the goals set forth in section
  1, the President is authorized to furnish assistance to--
  `(1) schools and libraries, outside the United States, that are founded or
  sponsored by United States citizens and serve as study and demonstration
  centers for ideas and practices of the United States, and
  `(2) hospital centers for medical education and research, outside the
  United States, that are founded or sponsored by United States citizens.
  `(b) DEFINITION OF SCHOOL- For purposes of subsection (a)(1), the term
  `school' includes any institution which provides activities of daily
  life training, vocational education, and related services to the mentally
  retarded.
`SEC.  1502. AUTHORIZATION OF APPROPRIATIONS.
  `To carry out section 1501, there are authorized to be appropriated to
  the President $30,000,000 for fiscal year 1992.
`Subchapter B--Debt Exchanges for Development
`SEC. 1511. DEBT EXCHANGE.
  `(a) AUTHORITY- In order to promote the goals set forth in section 1,
  the President may use funds made available under this title for grants
  to, or contracts with, nongovernmental organizations to enable those
  organizations to--
  `(1) purchase debt obligations owed by a developing country to any commercial
  lending institution, foreign government, or other party; and
  `(2) cancel such debt obligation, subject to the approval of the President,
  to the extent that such country makes available assets or policy commitments
  to promote any of the goals set forth in section 1.
  `(b) INTEREST RETENTION- A grantee or contractor (or any subgrantee or
  subcontractor) of the grants or contracts referred to in subsection
  (a) may retain, notwithstanding any other provision of law, without
  deposit in the Treasury of the  United States and  without further
  appropriation by Congress, interest earned on the  proceeds of any resulting
  debt-for-development or debt-for-environment purchase or exchange pending
  the disbursement of such proceeds and interest for the purposes for which
  assistance was provided to such party, which may include the establishment
  of an endowment, the income of which is used for such purposes.
  `(c) DEBT OBLIGATIONS OWED TO AGENCIES OF THE  UNITED STATES GOVERNMENT-
  The purchase or cancellation pursuant to this section of any debt obligation
  owed to any agency of the  United States Government shall be approved by
  the President.
`Subchapter C--Reimbursable Programs
`SEC. 1521. AUTHORITY TO CONDUCT REIMBURSABLE PROGRAMS.
  `(a) GENERAL AUTHORITY- Whenever the President considers it consistent
  with and within the limitations of this Act, any agency of the  United
  States Government is authorized to furnish services and commodities on an
  advance-of-funds or reimbursement basis to friendly countries, international
  organizations, and nongovernmental organizations.
  `(b) PERSONAL SERVICE CONTRACTS- When any agency of the  United States
  Government provides services on an advance-of-funds or reimbursable basis
  under this section, such agency may contract with individuals for personal
  service abroad or in the  United States to perform such services or to
  replace officers or employees of the  United States Government in a manner
  otherwise permitted by law (or Office of Management and Budget Circular
  A-76 or any successor circular) who are assigned by the agency to provide
  such services. Such individuals shall not be regarded as employees of the
  United States Government for the purpose of any law administered by the
  Office of Personnel Management.
  `(c) LIMITATIONS ON ASSISTANCE NOT APPLICABLE- Limitations in this or any
  other Act on assistance do not apply with respect to this subchapter.
`SEC. 1522. USE OF PAYMENTS.
  `Advances and reimbursements received under section 1521 may be credited
  to the currently applicable appropriation, account, or fund of the agency
  concerned and shall be available until expended.
`CHAPTER 6--INTERNATIONAL DISASTER ASSISTANCE
`SEC. 1601. STATEMENT OF POLICIES.
  `(a) HUMANITARIAN CONCERNS AND TRADITIONS OF THE AMERICAN PEOPLE- The
  Congress, recognizing that prompt  United States assistance to alleviate
  human suffering caused by natural and manmade disasters is a longstanding
  tradition and an important expression of the humanitarian interest of
  the people of the United States, affirms the willingness of the  United
  States to provide assistance for the relief and rehabilitation of people
  and countries affected by such disasters.
  `(b) REACHING THOSE MOST IN NEED- In carrying out this chapter, the President
  shall insure that, to the greatest extent possible, the assistance provided
  by the  United States reaches those most in need of relief and rehabilitation
  as a result of natural and manmade disasters.
`SEC. 1602. AUTHORITY TO PROVIDE ASSISTANCE.
  `(a) IN GENERAL- The President is authorized to furnish assistance
  for international disaster relief and rehabilitation. Such assistance
  may include assistance relating to disaster preparedness, prevention,
  and mitigation, and to the prediction of, and contingency planning for,
  natural disasters abroad.
  `(b) NONAPPLICABILITY OF OTHER PROVISIONS- Assistance may be furnished under
  this chapter notwithstanding any other provision of this or any other Act.
`SEC. 1603. AUTHORIZATION OF APPROPRIATIONS.
  `There are authorized to be  appropriated to the President to carry out
  this chapter, $40,000,000 for fiscal year 1992.
`SEC. 1604. BORROWING AUTHORITY.
  `(a) AUTHORITY- In addition to amounts otherwise available to carry out
  this chapter, up to $50,000,000 in any fiscal year may be obligated against
  appropriations available to carry out this title for use in providing
  assistance in accordance with the authorities and general policies of
  this chapter.
  `(b) REIMBURSEMENT- Amounts subsequently appropriated to carry out
  this chapter with respect to a disaster may be used to reimburse any
  appropriation account against which obligations were incurred under this
  section with respect to that disaster.
`CHAPTER 7--VOLUNTARY CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS AND PROGRAMS
`SEC. 1701. AUTHORITY TO PROVIDE ASSISTANCE.
  `Funds appropriated to carry out this chapter may be made available
  for voluntary contributions on a grant basis to international
  organizations. Funds appropriated for an international organization may also
  be  made available to undertake activities to support such organizations
  and their programs.
`SEC. 1702. AUTHORIZATION OF APPROPRIATIONS.
  `There are authorized to be appropriated to the President to carry out
  this chapter, in addition to funds otherwise available for such purposes,
  $250,212,000 for fiscal year 1992.
`SEC. 1703. CONDITION ON CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS.
  `The President is authorized to withhold contributions of funds appropriated
  to carry out this chapter to any international organization if the President
  determines that Israel, or such other countries as the President may
  designate, are being denied their rights to participate in the activities
  of that organization.
`SEC. 1704. WITHHOLDING OF UNITED STATES PROPORTIONATE SHARE FOR CERTAIN
PROGRAMS OF INTERNATIONAL ORGANIZATIONS.
  `(a) REQUIREMENT TO WITHHOLD- Funds authorized to be appropriated by this
  chapter shall not be available for the United States proportionate share for
  programs for countries, organizations or projects described in subsection
  (d).
  `(b) USE OF FUNDS WITHHELD- Funds returned or not made available for
  programs or projects pursuant to subsection (a) shall remain available
  until expended for use under this chapter.
  `(c) OBLIGATIONS- The President--
  `(1) shall review, at least annually, the budgets and accounts of all
  international organizations receiving payments of any funds authorized to
  be appropriated by this chapter; and
  `(2) shall report to the appropriate committees of the Congress the amounts
  of funds expended by each such organization for the purposes described
  in subsection (a) and the amount contributed by the United States to each
  such organization.
  `(d) DESIGNATION OF COUNTRIES- The President may designate, or remove
  the designation of, such countries, organizations, and projects as he
  deems appropriate for purposes of subsection (a), and shall so notify
  Congress. The following countries, organizations, and projects shall be
  deemed to have been designated by the President upon the date of enactment
  of this Act: Libya, Iran, Cuba, the Palestine Liberation Organization, and
  projects whose purpose is to provide benefits to the Palestine Liberation
  Organization or entities associated with it.
`SEC. 1705. CONTRIBUTIONS TO UNITED NATIONS RELIEF AND WORKS AGENCY.
  `The President is authorized to withhold any contributions to the United
  Nations Relief and Works Agency for Palestine Refugees in the Near East if
  that Agency does not take all possible measures to assure that no part of
  the United States contribution is used to furnish assistance to any refugee--
  `(1) who is receiving military training as a member of the Palestine
  Liberation Organization or any other guerrilla type organization; or
  `(2) who has engaged in any act of terrorism.
`SEC. 1706. AUDITING OF ACCOUNTS OF INTERNATIONAL ORGANIZATIONS.
  `(a) UNITED NATIONS ORGANIZATIONS- In the case of the United Nations and its
  affiliated organizations, including the International Atomic Energy Agency,
  the President should (acting through the United States representatives to
  such organizations), propose and actively seek the establishment by the
  governing authorities of such organizations of external, professionally
  qualified groups of appropriate size for the purpose of providing an
  independent and continuous program of selective examinations, review,
  evaluation, and audits of the programs and activities of such organizations.
  `(b) MULTILATERAL DEVELOPMENT BANKS- (1) In the case of each of the
  organizations specified in paragraph (2), the President should, acting
  through the United States representative to such organization, propose
  and actively seek the establishment by the governing authorities of that
  organization professionally qualified groups of appropriate size for the
  purpose of providing an independent and continuous program of selective
  examination, review, evaluation, and audits of the programs and activities
  of that organization.
  `(2) The organizations to which paragraph (1) applies are the International
  Bank for Reconstruction and Development, the International Development
  Association, the International Finance Corporation, the Multilateral
  Investment Guarantee Agency, the Inter-American Development Bank, the
  Inter-American Investment Corporation, the African Development Bank,
  the African Development Fund, the Asian Development Fund, and the Asian
  Development Bank.
`Chapter 8--ADMINISTRATION OF ECONOMIC ASSISTANCE PROGRAMS
`Subchapter A--Operating Expenses
`SEC. 1801. AUTHORIZATIONS OF APPROPRIATIONS FOR OPERATING EXPENSES GENERALLY.
  `There are authorized to be appropriated to the President, in addition to
  funds otherwise available for such purposes--
  `(1) $483,300,000 for fiscal year 1992 for necessary operating expenses
  of the agency designated under section 5102; and
  `(2) such additional amounts as may be necessary for increases in salary,
  pay, retirement, and other employee benefits authorized by law, and for
  other nondiscretionary costs of such agency.
`SEC. 1802. AUTHORIZATIONS OF APPROPRIATIONS FOR OPERATING EXPENSES OF THE
INSPECTOR GENERAL.
  `There are authorized to be appropriated to the President, in addition to
  funds otherwise available for such purposes--
  `(1) $37,739,000 for fiscal year 1992 for necessary operating expenses of
  the Office of the Inspector General of the agency designated under section
  5102; and
  `(2) such additional amounts as may be necessary for increases in salary,
  pay, retirement, and other employee benefits authorized by law, and for
  other nondiscretionary costs of such office.
`SEC. 1803. AVAILABILITY OF FUNDS.
  `Notwithstanding any other provision of law, the agency designated under
  section 5102 may obligate and expend funds in advance of appropriations
  in an amount sufficient to maintain operations at posts abroad for up to
  three days.
`Subchapter B--Evaluation
`SEC. 1811. EVALUATION AND ACCOUNTABILITY.
  `(a) NEED FOR EVALUATION- In order to effectively and responsibly manage
  the resources with which it is provided, the agency designated under
  section 5102 must have a capacity to evaluate objectively the extent of
  its progress in achieving development results and to derive lessons from
  its development experience.
  `(b) ACTIONS TO BE TAKEN- In furtherance of subsection (a), the President
  should establish a program performance evaluation capacity with the
  following functions--
  `(1) to develop a program performance information system to afford agency
  managers a means for monitoring achievement of impact and interim performance
  of the agency's major programs;
  `(2) to prepare and disseminate objective and periodic reports on the
  agency's progress in meeting stated development objectives for major
  assistance categories and recipient countries, regions, sectors, and
  policies;
  `(3) to strengthen, through training and other means, the use of evaluation
  as a management tool, by both the agency and its counterparts in countries
  receiving assistance, in the planning, designing, and implementation of
  foreign assistance projects and programs; and
  `(4) to coordinate with the Inspector General of the such agency so as to
  ensure appropriate complementarily of efforts, recognizing that--
  `(A) it is the responsibility of the agency to direct a program of
  independent evaluation of its programs and policies, and the operational
  and management systems which affect the development impact of those programs
  and policies; and
  `(B) it is the responsibility of the Inspector General to conduct
  regular and comprehensive assessments and audit of financial management
  and administrative systems, including the adequacy of the systems for
  monitoring and evaluating agency projects and programs.
  `(c) ROLE OF EVALUATION- In recognition of the importance of evaluation in
  determining, among other things, the extent to which programs are fostering
  the goals set forth in section 1, the President should take steps as the
  President deems appropriate to ensure that the agency is--
  `(1) planning, implementing, and disseminating programmatic evaluations
  of the economic assistance programs under this title that are administered
  by the agency;
  `(2) designing and managing technical assistance and support programs to
  enhance the integrity and quality of all project and program evaluation
  work done by such agency;
  `(3) maintaining and making accessible the agency's data base on project
  and program experience, including both the historical record and measures
  of impact and performance;
  `(4) coordinating information exchange on evaluation priorities, findings,
  and methods with other donor countries and organizations; and
  `(5) ensuring the quality, objectivity and independence of the Center's
  work by such measures as external review of findings, use of outside
  governmental and nongovernmental expertise, and other measures to protect
  against potential conflict of interest.
`Subchapter C--Cooperation with Nongovernmental Sector
`SEC. 1821. VOLUNTARY COOPERATION IN DEVELOPMENT.
  `(a) STATEMENT OF POLICY- It is the sense of the Congress that--
  `(1) the sustained participation of United States private voluntary
  organizations, cooperatives, and credit unions that are engaged in activities
  that are relevant to the development needs of developing countries serves
  as an important means of improving the lives of the poor in developing
  countries and enhances the likelihood that the goals set forth in section
  1 will be attained;
  `(2) similarly, sustained participation of United States colleges and
  universities in the economic development programs of the developing
  countries and the building of indigenous university systems that support
  the educational, research, and service needs of their societies is vital to
  their achieving sustainable economic growth and open democratic political
  systems and, at the same time, supports the internationalization of United
  States educational institutions by strengthening their faculty and the
  programs available to their students; and
  `(3) such sustained participation would be enhanced through provisions within
  the agency designated under section 5102 to provide such organizations
  and institutions with the opportunity to participate in the planning,
  development and implementation of programs that involve those organizations
  and institutions.
  `(b) PARTNERSHIP RELATIONSHIP- The President is encouraged to establish a
  formal, effective, and continuing partnership relationship with private
  voluntary organizations, cooperatives, and credit unions which have
  experience in working in developing countries, and with United States
  colleges and universities, with the objective of enhancing attainment of the
  goals set forth in section 1. Individuals who are from such organizations
  and institutions and who have expertise and administrative experience in
  programs relevant to the development needs of developing countries should
  be consulted on a regular basis so as to bring their expertise to bear on
  those objectives.
TITLE II--MILITARY ASSISTANCE AND RELATED ASSISTANCE AND SALES PROGRAMS
CHAPTER 1--CONSOLIDATION AND REVISION OF ACCOUNTS
SEC. 201. REVISION OF ASSISTANCE PROGRAMS.
  The Foreign Assistance Act of 1961 is amended by striking out part II and
  inserting in lieu thereof the following:
`TITLE II--MILITARY ASSISTANCE AND RELATED PROGRAMS
`CHAPTER 1--POLICIES REGARDING MILITARY ASSISTANCE
`SEC. 2101. GENERAL.
  `(a) FINDINGS- The Congress finds that--
  `(1) to advance our principal foreign policy objectives--the promotion
  of democratic values, the promotion of peace, the fostering of economic
  progress through the encouragement of market forces, and international
  cooperation in countering transnational dangers such as terrorism and
  narcotics trafficking--the United States must foster a climate in which
  all nations can live in security and stability;
  `(2) where threats to such a climate arise, through the persistence of
  regional conflicts, the threat of aggression fostered by military imbalances
  among neighboring nations, the proliferation of weapons of mass destruction,
  or through the persistent attempts by armed groups violently to overthrow
  democratically elected governments, it is in the interest of the United
  States to address those threats;
  `(3) so long as foreign countries lack the resources to meet their security
  needs without external assistance, military assistance provided by the
  United States will remain one of the principal instruments available to
  us to advance our principal foreign policy goals; and therefore
  `(4) the provision of military assistance to foreign countries and
  international organizations under chapter 2, chapter 5 and chapter 6 of
  this title is an integral element of United States foreign policy.
  `(b) The authorities to furnish military assistance that are provided
  under this title should be exercised to achieve the following objectives:
  `(1) To promote democratic values, including support for the consolidation
  of democracy through the rule of law, free and fair elections, respect
  for human rights, and the establishment of a relationship between civilian
  and military sectors appropriate to a democratic system of government.
  `(2) to promote peace, by deterring aggression and enhancing the military
  capability of foreign countries to meet their legitimate security needs,
  by fostering efforts both to assure the non-proliferation of weapons of
  mass destruction, and by supporting peacekeeping operations and activities,
  in particular those sponsored by the United Nations or other international
  organizations.
  `(3) To provide support to foreign countries to meet transnational
  threats, in particular to combat the flow of illicit narcotics and to
  combat international terrorism.
  `(4) To meet urgent humanitarian needs by encouraging civic action by
  improving the capability of the armed forces of foreign countries to carry
  out activities such as planning and implementing economic development
  projects that benefit the civilian population and providing health care
  for the people of the country.
  `(5) To promote self-defense and defense cooperation by financing the
  acquisition by friendly countries of United States major defense equipment
  and other defense articles and defense services, including acquisition
  through licensed production and coproduction where appropriate.
  `(6) To promote the effectiveness of military forces of foreign countries
  with respect to command, control, communications, intelligence, mobility,
  training, and logistical support.
  `(7) To promote rationalization, standardization, and interoperability
  of the military forces of foreign countries with the Armed Forces of the
  United States.
`SEC. 2102. OBJECTIVES OF MILITARY ASSISTANCE.
  `The authorities to furnish military assistance that are provided in
  chapter 2, chapter 5, and chapter 6 of this title should be exercised to
  achieve the following objectives:
  `(1) Promoting self-defense and defense cooperation by financing the
  acquisition by friendly countries of United States major defense equipment
  and other defense articles and defense services, including acquisition
  through licensed production and coproduction.
  `(2) Promoting the effectiveness of military forces of friendly countries
  with respect to command, control, communications, intelligence, mobility,
  training, and logistical support.
  `(3) Promoting rationalization, standardization, and interoperability of
  the military forces of friendly countries with the Armed Forces of the
  United States.
  `(4) Supporting peacekeeping operations and activities, in particular
  those sponsored by the United Nations or other international organizations.
  `(5) Increasing the awareness of nationals of friendly countries of basic
  issues involving democratic values and institutions, especially respect
  for internationally recognized human rights.
  `(6) Supporting the establishment in friendly countries of a relationship
  between civilian and military sectors appropriate to a democratic system
  of government.
  `(7) Providing support for friendly countries to combat the flow of illicit
  narcotics and to combat international terrorism.
  `(8) Enhancing the military capability of friendly countries to meet their
  security needs.
  `(9) Encouraging civic action by improving the capability of the armed
  forces of friendly countries to carry out activities such as planning
  and implementing economic development projects that benefit the civilian
  population and providing health care for the people of the country.
`CHAPTER 2--FOREIGN MILITARY FINANCING PROGRAM
`SEC. 2201. AUTHORITY TO FURNISH ASSISTANCE.
  `(a) GENERAL AUTHORITY- The President is authorized to furnish military
  assistance to any friendly country or international organization by--
  `(1) acquiring from any source and providing by loan or grant any defense
  article or defense service;
  `(2) financing the sale of defense   articles or defense services, or
  providing financing under subsection (b).
  `(b) FINANCING PROCUREMENT BY COMMERCIAL LEASING- Financing may be
  provided under this section to any country that is a member of the North
  Atlantic Treaty Organization (NATO) or is a major non-NATO ally for the
  procurement of defense articles by leasing (including leasing with an
  option to purchase) from United States commercial suppliers if the President
  determines that there are foreign policy or national security reasons for
  those defense articles being provided by commercial lease rather than by
  government-to-government sale under the Defense Trade and Export Control Act.
  `(c) EXCLUSION OF CERTAIN COSTS FROM CERTAIN SALES- Sales under the Defense
  Trade and Export Control Act which are wholly paid from funds--
  `(1) which are made available on a grant basis under this chapter, or
  `(2) which, prior to the effective date of title II of the International
  Cooperation Act of 1991, were transferred under the former authority of
  section 503(a)(3) of this Act or were made available on a nonrepayable or
  grant basis under the former authority of section 23 of the Defense Trade
  and Export Control Act,
shall be priced to exclude the costs of salaries of members of the Armed
Forces of the United States (other than the Coast Guard) and unfunded
estimated costs of civilian retirement and other benefits.
  `(d) Obligation of Funds-
  `(1) OBLIGATION UPON APPORTIONMENT- Funds appropriated to carry out this
  chapter on a grant basis may be obligated upon apportionment in accordance
  with paragraph (5)(C) of title 31, United States Code, section 1501(a).
  `(2) EXCEPTION- Funds appropriated to carry out this chapter shall be
  available to finance the procurement of defense articles and defense services
  that are not sold by the United States Government only if the country or
  international organization proposing to make such procurements has first
  signed a grant agreement with the United States Government specifying the
  conditions under which such procurements may be financed with such funds.
  `(3) DEOBLIGATION OF FUNDS AFTER 3 YEARS- Any agreement to provide
  financing under this section should include a provision expressly granting
  the United States Government the right to deobligate any funds furnished
  under the agreement that have not been committed for an approved use no
  later than the end of the three-year period beginning on the date on which
  that agreement is entered into.
  `(e) Loans-
  `(1) LIMITATION- Defense articles may be loaned under this chapter only if--
  `(A) there is a bona fide reason for providing such articles on a loan
  basis rather than a grant basis;
  `(B) there is a reasonable expectation that such articles will be returned
  to the agency making the loan at the end of the loan period unless the
  loan is then renewed;
  `(C) the loan period is of fixed duration not exceeding five years,
  during which period such article may be recalled for  any reason by the
  United States;
  `(D) the agency making the loan is reimbursed for the loan based on any
  amount that is charged to the appropriation for military assistance under
  paragraph (2); and
  `(E) arrangements are made with the agency making the loan to be
  reimbursed in the event the article is lost or destroyed while on loan
  (which arrangements may include reimbursement from funds available to
  carry out this chapter), based on the depreciated value of the article at
  the time of loss or destruction.
  `(2) CHARGE TO APPROPRIATION ACCOUNT- In the case of any loan of a defense
  article made under this chapter, there shall be a charge to the appropriation
  for military  assistance while the defense article is on loan in an amount
  based on--
  `(A) the out-of-pocket expenses authorized to be incurred in connection
  with such loan; and
  `(B) the depreciation that occurs while such article is on loan.
The provisions of this paragraph shall not apply to any defense article, or
portion thereof, acquired with funds available to  carry out this chapter,
or that is made available  under a section of this chapter to which section
5201(d) does not apply. For the purposes of the preceding sentence, the
value of the defense articles (in terms of their replacement cost less any
depreciation in their value) shall be counted against applicable limitations,
such as those contained in section 2205.
`SEC.  2202. TERMS OF FINANCING.
  `(a) GRANTS OR CREDITS- Financing under section 2201(a)(2) may be provided
  on a grant basis or credit basis, or by providing guarantees.
  `(b) CRITERIA FOR DETERMINING TERMS OF ASSISTANCE- In determining whether
  such financing will be provided to a foreign country on  a grant, credit
  or guarantee basis, the President shall take into account the following:
  `(1) The national security and foreign policy interests of the United
  States in furnishing such assistance to that country.
  `(2) The legitimate national security and self-defense needs of that country,
  taking into account regional and other threats to its security.
  `(3) The economic conditions and circumstances of that country, including
  its per capita gross national product, debt service ratio, and external
  debt and rescheduled external debt.
  `(c) TERMS AND CONDITIONS- The President may issue regulations from the
  time to time with regard to the terms and conditions on which financing
  will be provided under this chapter.
  `(d) FINANCING ASSISTANCE- Funds used to finance the procurement of defense
  articles and defense services under section 2201(a)(2) shall be disbursed--
  `(1) to suppliers (including the United States military departments)
  on behalf of the recipient country or organization; or
  `(2) to the recipient country or organization as reimbursement upon
  submission of satisfactory proof of payments to suppliers.
  `(e) GUARANTIES- Any guaranties issued under this chapter shall be backed
  by the full faith and credit of the United States.
  `(f) DEBT REPAYMENT- Funds appropriated to carry out this chapter may be
  made available to a foreign country to make payments of principal and
  interest that it owes to the United States in connection with sales of
  defense articles or defense services on account of credits previously
  extended to it, or loans previously guaranteed, under this Act or the
  Defense Trade and Export Control Act (or under any predecessor military
  sales or foreign assistance legislation).
`SEC. 2203. ELIGIBILITY.
  `(a) CONDITIONS- Financing may not be furnished under this chapter for the
  procurement of defense articles or defense services by a foreign country,
  and defense articles or defense services may not otherwise be furnished
  under this chapter to a foreign country, unless  that country has agreed
  to the following (in addition to such other provisions as the President
  may require):
  `(1) The country will not, without the consent of the President--
  `(A) transfer title to, or possession of, any defense articles or defense
  services so furnished to it to anyone not an officer, employee, or agent
  of that country,
  `(B) use or permit the use of such articles or services for purposes other
  than those for which  furnished.
  `(2) The country will maintain the security of such articles or services,
  and will provide substantially the same degree of security protection
  afforded to such articles or services by the United States Government.
  `(b) INELIGIBILITY-
  `(1) TERMINATION OF ASSISTANCE FOR SUBSTANTIAL VIOLATIONS- Assistance and
  deliveries of assistance under section 2201(a)(1) to any country shall
  be terminated, and new commitments to provide financing under section
  2201(a)(2) to that country shall not be made, as hereinafter provided
  if such country uses defense articles or defense services described in
  paragraph (2) in substantial violation (either in terms of quantities or
  in terms of the gravity of the consequences regardless of the quantities
  involved) of any agreement pursuant to which those defense articles or
  defense services were furnished--
  `(A) by using such articles or services for a purpose not specified
  in paragraph (3) or, if such agreement provides that such articles or
  services may only be used for purposes more limited than those specified,
  for a purpose not authorized under such agreement;
  `(B) by transferring such articles or services to, or permitting any use
  of such articles or services by, anyone not an officer, employee, or agent
  of the recipient country; or
  `(C) by failing to maintain the security of such articles or services.
  `(2) DEFENSE ARTICLES AND DEFENSE SERVICES SUBJECT TO REQUIREMENTS-
  Paragraph (1) applies with respect to any defense articles or defense
  services furnished (through financing or otherwise) under this Act, sold
  or leased under the Defense Trade and Export Control Act, or furnished
  under any predecessor foreign assistance or military sales legislation.
  `(3) USES PERMITTED- The purposes referred to in paragraph (1) are:
  `(A) Internal security.
  `(B) Legitimate self-defense.
  `(C) Participation in regional or collective arrangements or measures
  consistent with the Charter of the United Nations, or participation in
  collective measures requested by the United Nations for the purpose of
  maintaining or restoring international peace and security.
  `(D) Construction of public works or other activities which contribute to
  the economic and social development of the recipient country.
  `(E) Such other purposes as may be provided for in particular provisions
  of law.
  `(4) ACTIONS REQUIRED FOR TERMINATION- Assistance and deliveries of
  assistance under section 2201(a)(1) shall be terminated, and new commitments
  to provide financing under section 2201(a)(2) shall not be made, pursuant
  to paragraph (1) if--
  `(A) the President so determines and reports in writing to the Congress, or
  `(B) the Congress so determines by joint resolution.
  `(5) REPORTS TO CONGRESS- The President shall report to the Congress
  promptly upon the receipt of information that a violation described in
  paragraph (1) is likely to have occurred.
  `(6) PERIOD OF TERMINATION- Paragraph (1) shall apply until such time as--
  `(A)(i) the President determines that the violation has ceased; and
  `(ii) the country concerned has given assurances satisfactory to the
  President that such violation will not recur; or
  `(B) the President determines that continued application of this paragraph
  would have significant adverse impact on United States security.
`SEC. 2204. APPROVAL OF THIRD COUNTRY TRANSFERS.
  `(a) IN GENERAL- In considering a request for approval of any transfer of
  any weapon, weapons system, aircraft, military vessel, or other implement
  of war to another country, the President shall not give his consent under
  section 2203(a)(1) to the transfer unless the United States itself would
  transfer the defense article under consideration to that country.
  `(b) SIGNIFICANT MILITARY EQUIPMENT- In addition, the President shall
  not give his consent under section 2203(a)(1) to the transfer of any
  significant military equipment on the United States Munitions List unless
  the foreign country requesting consent to transfer agrees to demilitarize
  such equipment prior to transfer, or the proposed recipient provides a
  commitment in writing to the United States Government that it will not
  transfer such equipment if not demilitarized to any other foreign country
  or person without first obtaining the consent of the President.
`SEC. 2205. DRAWDOWN AUTHORITY.
  `(a) UNFORESEEN EMERGENCIES- If the President determines that--
  `(1) an unforeseen emergency exists which requires immediate military
  assistance to a foreign country or international organization, and
  `(2) the emergency requirement cannot be met under the authority of the
  Defense Trade and Export Control Act or any other law except this section,
the President may direct, for the purposes of this title, the drawdown of
defense articles from the stocks of the Department of Defense or defense
services of the Department of Defense of an aggregate value not to exceed
$100,000,000 in any fiscal year.
  `(b) SPECIAL CIRCUMSTANCES- If the President determines that it is in
  the national interests of the United States to do so, the President may
  direct the drawdown of defense articles from the stocks of the Department
  of Defense or of defense services of the Department of Defense, of an
  aggregate value not to exceed $75,000,000 in any fiscal year, for the
  purposes and under the authorities of--
  `(1) chapter 4 of title I of this Act;
  `(2) chapter 6 of title I of this Act; or
  `(3) the Migration and Refugee Assistance Act of 1962.
  `(c)(1) The President may exercise the authority  of this section
  upon providing notification to the Committees on Foreign Affairs and
  Appropriations of the House of Representatives and the Committees on Foreign
  Relations and Appropriations of the Senate. In the case of drawdowns
  authorized under paragraphs (1) and (3) of subsection (b), notification
  shall be provided fifteen days in advance, in accordance with procedures
  applicable to reprogrammings under section 4304.
  `(2) CONTINUING INFORMATION- The President shall keep the Congress fully
  and currently informed of all defense articles and defense services provided
  under this section.
  `(d) NONAPPLICABILITY OF REQUIREMENT FOR REIMBURSEMENT FROM EXISTING
  ASSISTANCE FUNDS- Section 5201(d) does not apply with respect to defense
  articles and defense services made available under this section.
  `(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  to the President such sums as may be necessary to reimburse the applicable
  appropriation, fund, or account for defense articles and defense services
  provided under this section.
`SEC. 2206. GRANT TRANSFERS OF EXCESS DEFENSE ARTICLES.
  `(a) AUTHORITY- Notwithstanding any other provisions of law, the President
  may
  `(1) transfer to countries for which a foreign military financing program
  was justified in the fiscal year in which the transfer is authorized such
  excess defense articles as may be necessary to help modernize the defense
  capabilities of such country;
  `(2) in coordination with other narcotics-related assistance, transfer excess
  defense articles to the military or law enforcement forces of a country--
  `(A) which is in Latin America or the Caribbean,
  `(B) which has a democratic government, and
  `(C) whose armed forces do not engage in a consistent pattern of gross
  violations of internationally recognized human rights,
for the purposes of enhancing the ability of such forces to participate in a
comprehensive national antinarcotics program by conducting activities within
that country and on the high seas to prevent the production, processing,
trafficking, transportation, and consumption of illicit narcotic or
psychotropic drugs or other controlled substances;
  `(3) transfer nonlethal excess defense articles and small arms to friendly
  countries and to international organizations and private and voluntary
  organizations for the purpose of protecting and maintaining wildlife
  habitats and in developing sound wildlife management and plant conservation
  programs; and
  `(4) transfer excess property of the Coast Guard on the same basis as
  excess defense articles may be transferred under this section.
  `(b) PROVISIONS APPLICABLE TO TRANSFERS FOR ANTINARCOTICS PURPOSES-
  `(1) USE OF ARTICLES- Excess defense articles may be furnished to a country
  under subsection (a)(2) only if the recipient country ensures that those
  excess defense articles will be used primarily in support of antinarcotics
  activities.
  `(2) LIMITATION- The aggregate value of excess defense articles transferred
  to any country under subsection (a)(2) in any fiscal year may not exceed
  $10,000,000.
  `(c) Generally Applicable Provisions-
  `(1) TERMS OF TRANSFERS- Excess defense articles may be transferred under
  this section without cost to the recipient country.
  `(2) LIMITATIONS ON TRANSFERS- The President may transfer excess defense
  articles under this section only if--
  `(A) they are drawn from existing stocks of the Department of Defense
  (or the Coast Guard);
  `(B) funds available to the Department of Defense (or the Coast Guard)
  for the procurement of defense equipment are not expended in connection
  with the transfer;
  `(C) the transfer of the excess defense articles will not have an adverse
  impact on the military readiness of the United States; and
  `(D) transferring the articles under the authority of those sections is
  preferable to selling them, after taking into account the potential proceeds
  from, and likelihood of, such sales, and the comparative foreign policy
  benefits that may accrue to the United States as the result of either a
  transfer or sale.
  `(3) Notification to congress-
  `(A) ADVANCE NOTICE- The President may not transfer excess defense articles
  under this section until fifteen days after the President has provided
  notice of the proposed transfer to the committees specified in subparagraph
  (B). This notification shall include--
  `(i) a discussion of the need for the transfer;
  `(ii) an assessment of the impact of the transfer on the military readiness
  of the United States; and
  `(iii) the value of the excess defense articles to be transferred.
  `(B) COMMITTEES TO BE NOTIFIED- Notice shall be provided pursuant
  to subparagraph (A) to the Committee on Armed Services, the Committee
  on Foreign Affairs, and the Committee on Appropriations of the House of
  Representatives and the Committee on Armed Services, the Committee on
  Foreign Relations, and the Committee on Appropriations of the Senate.
  `(4) WAIVER OF REQUIREMENT FOR REIMBURSEMENT OF DOD EXPENSES- Section 5201(d)
  does not apply with respect to transfers of excess defense articles under
  this section.
  `(5) Transportation and related costs-
  `(A) Except as provided in subparagraph (B), funds available to the
  Department of Defense (or the Coast Guard) shall not be expended for crating,
  packing, handling, and transportation of excess defense articles transferred
  under the authority of this section.
  `(B) Notwithstanding section 5201(d) or any other provision of law--
  `(i) the President may direct the crating, packing, handling, and transport
  of excess defense articles without charge to a country if--
  `(I) that country has an agreement providing the United States with base
  rights in that country;
  `(II) that country is eligible for assistance from the International
  Development Association; and
  `(III) the excess defense articles are being provided to that country
  under the authority of this section; and
  `(ii) the President is authorized to transport nonlethal excess defense
  articles and small arms under subsection (a)(3) without charge on a space
  available basis.
`SEC. 2207. CONSIDERATIONS IN FURNISHING ASSISTANCE.
  `Decisions to furnish assistance under this chapter should take into
  account whether such assistance will--
  `(1) contribute to an arms race;
  `(2) increase the possibility of outbreak or escalation of conflict; or
  `(3) prejudice the development of bilateral or multilateral arms control
  arrangements.
`SEC. 2208. CIVIC ACTION IN AFRICA.
  `Funds appropriated to carry out this chapter may be used for civic action
  in Africa, notwithstanding section 4203 of this Act and any similar
  provisions of law that prohibit providing assistance to countries in
  default on obligations owed to the United States.
`SEC. 2209. AUTHORIZATION OF APPROPRIATIONS.
  `There are authorized to be appropriated to the President to carry out
  this chapter $4,640,000,000 for the fiscal year 1992.
`CHAPTER 3--STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES
`SEC. 2301. RESTRICTIONS ON STOCKPILING.
  `(A) REMOVAL FROM STOCKPILING- Defense articles in the inventory of
  the Department of Defense which are set aside, reserved, or in any way
  earmarked or intended for future use by any foreign country may not be
  made available to or for use by any foreign country unless--
  `(1) such transfer is authorized under this Act or the Defense Trade and
  Export Control Act; and
  `(2) the value of such transfer is charged against funds authorized
  under this Act or against any limi tations specified in such legislation,
  as appropriate, for the fiscal period in which the defense articles are
  transferred.
  `(b) VALUE-
  `(1) DEFINITION- For purposes of subsection (a), `value' means acquisition
  cost plus crating, packing, handling, and transportation costs incurred
  in carrying out this section.
  `(2) LIMITATION- A defense article transferred from any stockpile which is
  made available to or for use by any foreign country may not be considered
  an excess defense article for the purpose of determining the value of that
  defense article.
`SEC. 2302. LOCATION OF STOCKPILES.
  `Except for stockpiles located in the Republic of Korea, Thailand, a country
  which is a member of the North Atlantic Treaty Organization, a country
  which is a major non-NATO ally, or such other countries as the President may
  designate, no stockpile may be located outside  the boundaries of a United
  States military base or a military base used primarily by the United States.
`SEC. 2303. ADDITIONS TO WAR RESERVE STOCKS.
  `(a) LIMITATION- The value of defense articles to be added to those set
  aside, earmarked, reserved, or intended for use as war reserve stocks for
  allied or other foreign countries (other than for purposes of the North
  Atlantic Treaty Organization) in stockpiles located in foreign countries
  may not exceed in any fiscal year an amount specified in legislation
  authorizing military assistance programs for that fiscal year.
  `(b) AUTHORIZATION OF ADDITIONS- The value of such additions to stockpiles
  in foreign countries shall not exceed $129,000,000 for fiscal year 1992.
`CHAPTER 4--OVERSEAS MANAGEMENT OF ASSISTANCE AND SALES PROGRAMS
`SEC. 2401. AUTHORIZED FUNCTIONS.
  `(a) IN GENERAL- In order to carry out responsibilities for the management
  of international security assistance and sales programs conducted under
  chapter 2 and chapter 5 and under the Defense Trade and Export Control Act,
  the President may assign members of the Armed Forces to a foreign country
  to perform one or more of the following functions:
  `(1) Equipment and services case management.
  `(2) Training management.
  `(3) Program monitoring.
  `(4) Evaluation and planning of the host government's military capabilities
  and requirements.
  `(5) Administrative support.
  `(6) Promoting rationalization, standardization, interoperability, and
  other defense cooperation measures.
  `(7) Liaison functions exclusive of advisory and training assistance.
  `(b) ADVISORY AND TRAINING ASSISTANCE- Advisory and training assistance
  conducted by members of the Armed Forces assigned under this chapter shall be
  kept to an absolute minimum. Advising and training assistance in countries
  to which members of the Armed Forces are assigned under this chapter should
  be provided primarily by other personnel who are not assigned under this
  chapter and who are detailed for limited periods to perform specific tasks.
`SEC. 2402. COSTS.
  `The entire costs (excluding salaries of members of the Armed Forces other
  than the Coast Guard) of overseas management of international security
  assistance and sales programs under this chapter shall be charged to or
  reimbursed from funds made available to carry out chapter 2, other than
  any such costs which are either--
  `(1) paid directly for such defense services under section 21(a) of the
  Defense Trade and Export Control Act, or
  `(2) reimbursed from charges for services collected from foreign governments
  pursuant to section 21(e) and section 43(b) of that Act.
`SEC. 2403. ROLE OF CHIEF OF MISSION.
  `Members of the Armed Forces assigned to a foreign country under this
  chapter shall serve under the direction and supervision of the Chief of
  the United States Diplomatic Mission to that country.
`CHAPTER 5--INTERNATIONAL MILITARY EDUCATION AND TRAINING
`SEC. 2501. AUTHORITY TO FURNISH ASSISTANCE.
  `(a) GENERAL AUTHORITY- The President is authorized to furnish military
  education and training to military and related civilian personnel of
  foreign countries. Such civilian personnel may include foreign governmental
  personnel of ministries other than ministries of defense if the military
  education and training would--
  `(1) contribute to responsible defense resource management;
  `(2) foster greater respect for and understanding of the principle of
  civilian control of the military;
  `(3) improve military justice systems and procedures in accordance with
  internationally recognized human rights; or
  `(4) contribute to cooperation between military and law enforcement
  personnel in respect of counter-narcotics law enforcement efforts.
  `(b) FURNISHING OF ASSISTANCE- Training and education under this chapter
  may be provided through--
  `(1) attendance at military educational and training facilities in the
  United States (other than Service academies) and abroad;
  `(2) attendance in special courses of instruction at schools and institutions
  of learning or research in the United States and abroad; and
 `(3) observation and orientation visits to military facilities and related
 activities in the United States and abroad.
`SEC. 2502. TERMS OF ASSISTANCE.
  `(a) GRANT ASSISTANCE- Military education and training under this chapter
  shall be furnished on a grant basis.
  `(b) ASSISTANCE ON CREDIT TERMS- Whenever feasible military education and
  training shall be provided on credit terms under chapter 2.
`SEC. 2503. EXCHANGE TRAINING.
  `In carrying out this chapter, the President is authorized to provide
  for attendance of foreign military personnel at professional military
  education institutions in the United States (other than service academies)
  without charge, and without charge to funds available to carry out this
  chapter (notwithstanding section 5201(d)), if such attendance is pursuant
  to an agreement providing for the exchange of students on a one-for-one,
  reciprocal basis each fiscal year between those United States professional
  military education institutions and comparable institutions of foreign
  countries and international organizations.
`SEC. 2504. EXEMPTIONS.
  `Funds appropriated to carry out this chapter may be made available
  notwithstanding--
  `(a) section 4203 of this Act and any similar provisions of law that
  prohibit providing assistance to countries in default on obligations owed
  to the United States; and
  `(b) section 4204 of this Act, to train (1) senior civilian law enforcement
  leadership personnel, and (2) law enforcement personnel of any country
  that has a freely elected democratic government and does not engage in
  a consistent pattern of gross violations of internationally recognized
  human rights.
`SEC. 2505. AUTHORIZATION OF APPROPRIATIONS.
  `There are authorized to be appropriated to the President to carry out
  this chapter $52,500,000 for the fiscal year 1992.
`CHAPTER 6--PEACEKEEPING OPERATIONS
`SEC. 2601. GENERAL AUTHORITY.
  `(a) IN GENERAL- The President is authorized to furnish assistance to foreign
  countries and international organizations for peacekeeping operations and
  other programs carried out in furtherance of the national interest of the
  United States.
  `(b) REIMBURSEMENT OF DOD- Assistance under this chapter may include
  reimbursement to the Department of Defense for expenses incurred pursuant
  to section 7 of the United Nations Participation Act of 1945. Such
  reimbursements may not exceed $5,000,000 in any fiscal year unless a
  greater amount is specified in authorizing legislation.
  `(c) RELATION TO OTHER PROVISIONS- The authority provided by this chapter
  to furnish assistance for peacekeeping operations and activities is in
  addition to any other authority which may be available for that purpose, and
  assistance provided under this chapter may be made available notwithstanding
  any provisions of law that restrict assistance to foreign countries.
`SEC. 2602. SPECIAL TRANSFER AND DRAWDOWN AUTHORITIES.
  `(a) UNFORESEEN EMERGENCIES- If the President determines that, as the result
  of an unforeseen emergency, the provision of assistance under this chapter
  in amounts in excess of funds otherwise available for such assistance is
  important to the national interests of the United States, the President may--
  `(1) exercise the authority of section 4101 of this Act to transfer funds
  available to carry out chapter 3 of part I (relating to economic support
  assistance) for use under this chapter without regard to the 20-percent
  increase limitation contained in such section, except that the total amount
  so transferred in any fiscal year may not exceed $15,000,000; and
  `(2) in the event the President also determines that such unforeseen
  emergency requires the immediate provision of assistance under this chapter,
  and so notifies in writing the Speaker of the House of Representatives and
  the Committee on Foreign Relations of the Senate, direct the drawdown of
  commodities and services, of an aggregate value not to exceed $25,000,000
  in any fiscal year, from the inventory and resources of any agency of the
  United States Government.
  `(b) REIMBURSEMENT- There are authorized to be appropriated to the President
  such sums as may be necessary to reimburse the applicable appropriation,
  fund, or account for commodities and services provided under this section.
`SEC. 2603. ADMINISTRATIVE AUTHORITIES.
  `Except where expressly provided to the contrary, any reference in any
  law to title I of this Act shall be deemed to include reference to this
  chapter and any reference in any law to title II of this Act shall be
  deemed to exclude reference to this chapter.
`SEC. 2604. AUTHORIZATION OF APPROPRIATIONS.
  `There are authorized to be appropriated to the President to carry out
  this chapter $28,000,000 for the fiscal year 1992.
`CHAPTER 7--INTERNATIONAL TERRORISM
`SEC. 2701. GENERAL.
  `(a) TRANSNATIONAL THREAT OF TERRORISM- Terrorism continues to pose a
  danger to a stable world order, and to endanger the ability of the people
  of the United States and the world to live and travel in peace and safety.
  `(b) CONSIDERATIONS- In providing assistance under this Act, the President
  should take into account the cooperation provided by other countries in
  connection with matters related to international terrorism, including
  such matters as whether a country grants sanctuary from prosecution to
  individuals or groups that have engaged in international terrorism.
  `(c) PURPOSES OF ANTITERRORISM ASSISTANCE- In helping meet the transnational
  threat posed by terrorism, activities conducted under this chapter would
  be designed--
  `(1) to enhance the antiterrorism skills of friendly countries by providing
  training and equipment to deter and counter terrorism;
  `(2) to strengthen the bilateral ties of the United States with friendly
  governments by offering concrete assistance in this area of great mutual
  concern; and
  `(3) to increase respect for human rights by sharing with foreign civil
  authorities modern, humane, and effective antiterrorism techniques.
`SEC. 2702. AUTHORITY TO PROVIDE ANTITERRORISM ASSISTANCE.
  `Subject to the provisions of this chapter, the President is authorized to
  furnish assistance to foreign countries in order to enhance the ability
  of their law enforcement personnel to deter terrorists and terrorist
  groups from engaging in international terrorists acts such as bombing,
  kidnapping, assassination, hostage taking, and hijacking. Such assistance
  may include advice, training services and the provisions of equipment and
  other commodities related to bomb detection and disposal, management of
  hostage situations, physical security, and other matters relating to the
  detection, deterrence, and prevention of acts of terrorism, the resolution
  of terrorist incidents and the apprehension of those involved in such acts.
`SEC. 2703. AUTHORITIES AND LIMITATIONS.
  `(a) GRANT ASSISTANCE- Services and commodities may be granted for
  the purposes of this chapter to eligible foreign countries, subject
  to reimbursement of the value thereof (within the meaning of section
  5601(d)(9)) pursuant to section 5201 of this Act from funds available to
  carry out this chapter.
  `(b) Reimbursed Assistance-
  `(1) AUTHORIZATION- Whenever the President considers it to be consistent
  with and in furtherance of the purposes of this chapter, any agency
  of the United States Government is authorized to furnish services and
  commodities, without charge to funds available to carry out his chapter,
  to an eligible foreign country, subject to payment in advance of the value
  thereof (within the meaning of section 5601(d)(9)) in United States dollars
  by the foreign country.
  `(2) PROHIBITION ON USE OF FOREIGN MILITARY FINANCING FOR PAYMENT- Foreign
  military financing may not be used for payments under paragraph (1).
  `(3) CREDITING OF COLLECTIONS- Collections under this chapter shall be
  credited to the currently applicable appropriation, account, or fund of the
  agency providing such services and commodities and shall be available for
  the purposes for which such appropriation, account, or fund is authorized
  to be used.
  `(c) HUMAN RIGHTS- Plans for the development and implementation of the
  antiterrorism assistance program under this chapter, including determinations
  of the foreign countries that will be furnished assistance under this
  chapter and determinations of the nature of assistance to be furnished
  to each such country should take into account the effect such plans are
  likely to have on respect for internationally recognized human rights.
  `(d) Limitations-
  `(1) TRAINING BY STATE DEPARTMENT PERSONNEL- (A) Except as provided in
  subparagraph (B), employees of the Department of State shall not engage
  in the training of law enforcement personnel.
  `(B) Subparagraph (A) does not apply to training (including short term
  refresher training) or services provided to law enforcement personnel
  by employees of the Bureau of  Diplomatic Security with regard to crisis
  management, facility security, or VIP protection.
  `(2) MUNITIONS ITEMS- (A) Articles on the United States Munitions List
  may be made available under this chapter only if--
  `(i) they are directly related to antiterrorism training under this
  chapter; and
  `(ii) the recipient country is not prohibited by law from receiving foreign
  military financing or international military education and training.
  `(B) No shock batons or similar devices may be provided under this chapter.
  `(3) EQUIPMENT TRANSFERS- (A) Except as provided in subparagraph (B),
  the value (in terms of original acquisition cost) of all equipment and
  commodities provided under subsection (a) in any fiscal year may not exceed
  25 percent of the funds made available to carry out this chapter for that
  fiscal year.
   `(B) The President may provide equipment and commodities not withstanding
   subparagraph (A) if the President determines that doing so is important
   for the purposes of carrying out this chapter.
  `(4) ASSISTANCE RELATING TO INTELLIGENCE ACTIVITIES- Assistance under this
  chapter shall not include activities authorized by the National Security
  Act of 1947 (50 U.S.C. 401 and following), the Central Intelligence Agency
  Act of 1949 (50 U.S.C. 403a and following), and Executive Order 12333,
  other than limited training in the organization of intelligence for
  antiterrorism purposes under the provisions of this chapter.
  `(5) PERSONNEL COMPENSATION OR BENEFITS- Funds made available to carry
  out this chapter may not be used for personnel compensation or benefits.
  `(e) INFORMATION EXCHANGE ACTIVITIES-  This chapter does not apply to
  information exchange activities conducted by agencies of the United States
  Government under other authority for such purposes.
`SEC. 2704. CONGRESSIONAL PRESENTATION DOCUMENTS.
  `The annual congressional presentation documents shall include--
  `(a) a list of the countries which received assistance under this chapter
  for the preceding fiscal year, a list of the countries which are programmed
  to receive assistance under this chapter for the current fiscal year,
  and a list of the countries which are proposed as recipients of assistance
  under this chapter for the next fiscal year;
  `(b) with respect to each country listed pursuant to subsection (a) and
  for each such fiscal year, a description of the assistance under this
  chapter furnished, programmed, or proposed, including--
  `(1) the place where training or other services under this chapter were
  or will be furnished, the duration of such training or other services,
  and the number of personnel from that country which were or will receive
  training under this chapter;
  `(2) the types of equipment or other commodities which were or will be
  furnished under this chapter; and
  `(3) whether the assistance was furnished on a grant basis, on an advance
  payment basis, or on some other basis; and
  `(c) a description of the ways in which the provision of such assistance has
  furthered the objective of enhancing the ability of foreign law enforcement
  authorities to deter acts of terrorism.
`SEC. 2705. ADMINISTRATIVE AUTHORITIES.
  `Except where expressly provided to the contrary, any reference in any
  law to title I of this Act shall be deemed to include reference to this
  chapter and any reference in any law to title II of this Act shall be
  deemed to exclude reference to this chapter.
`SEC. 2706. AUTHORIZATION OF APPROPRIATIONS.
  `There are authorized to be appropriated to the President to carry out
  this chapter $15,000,000 for fiscal year 1992.'.
SEC. 202. AMENDMENTS TO ARMS EXPORT CONTROL ACT.
  The Arms Export Control Act is amended as follows:
  (1) Section 2(b) is amended by striking out--
  (A) `or financing for' in paragraph (1);
  (B) `financing' both other places it appears.
  (2) Section 3(c) is amended--
  (A) in paragraph (1), by striking out `(1)(A) No' and all that follows
  through `(B) No' and inserting in lieu thereof `(1) No';
  (B) in paragraph (1), as amended by subparagraph (A), by striking out
  `under this Act, or any predecessor Act,' and inserting in lieu thereof
  ', through sale, financing or otherwise, under this Act or the Foreign
  Assistance Act of 1961 (or under any predecessor military sales or foreign
  assistance legislation)';
  (C) in paragraph (2), by striking out `may' and inserting in lieu thereof
  `is likely to';
  (D) in paragraph (3)(A), by striking out `subparagraph (A)' and all that
  follows through `such paragraphs,' and inserting in lieu thereof `paragraph
  (1)'; and
  (E) in paragraph (3)(B), by striking out `subparagraph (B) of'.
  (3) Section 3 is amended--
  (A) in subsection (d), by striking out `section 505(a)(1) or 505(a)(4)'
  and inserting in lieu thereof `section 2203(a)(1)'; and
  (B) in subsection (e), by striking out `section 505' and inserting in lieu
  thereof `section 2203(a)(1)'.
  (4) Section 5(a) is amended by striking out `, and no credits (including
  participations in credits) or guaranties extended to or for' and inserting
  in lieu thereof `to'.
  (5) Section 6 is amended--
  (A) by striking out `, no credits or guarantees may be extended,'; and
  (B) by inserting `and no foreign military financing may be furnished under
  the Foreign Assistance Act of 1961' after `this Act'.
  (6) Section 21 is amended--
  (A) by amending subsection (c)(1) to read as follows:
  `(A) Members of the Armed Forces assigned or detailed to provide defense
  services under this Act may not perform duties of a combatant nature,
  including any duty related to training and advising that may engage United
  States Armed Forces personnel in combat activities, outside the United
  States in connection with the performance of those defense services.
  `(B) Subparagraph (A) shall not apply if the President determines, and
  reports to the Congress, that its application would not be in the national
  interest of the United States.'; and
  (B) in subsection (e)(1)(B)--
  (i) by striking out `either from' and all that follows through `nonrepayable
  basis under'; and
  (ii) by inserting in lieu thereof `from either (i) funds made available on
  a grant basis under chapter 2 of title II of the Foreign Assistance Act of
  1961, or (ii) funds which, prior to the effective date of title II of the
  International Cooperation Act of 1991, were transferred under the former
  authority of section 503(a)(3) of the Foreign Assistance Act of 1961 or
  were made available on a nonrepayable basis under the former authority of'.
  (7) Section 23 is repealed.
  (8) Section 24 is amended--
  (A) by amending the section caption to read `Provisions Relating to Former
  Credit and Guaranty Authorities';
  (B) in subsection (a), by striking out `The' in the first sentence
  and inserting in lieu thereof `To the extent necessary to carry out the
  provisions under the heading `Foreign Military Sales Debt Reform' in title
  III of the Foreign Operations, Export Financing, and Related Programs
  Appropriations Act, 1988 (as contained in section 101(e) of Public Law
  100-202), the';
  (C) in subsection (b) by inserting `before the effective date of title II
  of the International Cooperation Act of 1991' after `section 23'; and
  (D) by striking out subsection (c) and inserting in lieu thereof the
  following:
  `(c) The single reserve established under this section for the payment of
  claims under guaranties issued under the authority of this section may be
  referred to as the `Foreign Military Loan Liquidating Account'.
  `(d) Any guaranties issued under the authority of this section are backed
  by the full faith and credit of the United States.'.
  (9) Section 25(a) is amended--
  (A) in paragraph (5)(A) by striking out `military education' and all that
  follows through `guarantees,' and inserting in lieu thereof `and assistance
  under chapter 2 or chapter 5 of title II of the  Foreign Assistance Act
  of 1961,';
  (B) in paragraph (5)(B) by striking out `credits or guaranties under this
  Act' and  inserting in lieu thereof `financing under chapter 2  of title
  II of the  Foreign Assistance Act of 1961'; and
  (C) in paragraph (11)--
  (i)  by striking out `the Arms Export Control Act' and  inserting in lieu
  thereof `section 23 or 24 of this Act'; and
  (ii) by inserting before the semicolon at the end of the paragraph the
  following: `, and the status of each extension of credit for the procurement
  of defense articles or defense services under chapter 2 of title II of
  the  Foreign Assistance Act of 1961 with respect to which there remains
  outstanding any unpaid obligation or potential liability'.
  (10) Section 25(d), as added by 112(b) of the International Security and
  Development Cooperation Act of 1985, is amended by striking out `under this
  Act or under section 503(a)(3)' and inserting in lieu thereof `chapter 2
  of title II'.
  (11) Section 31 is repealed.
  (12) Section 36(a) is amended--
  (A) in paragraph (7), by striking out `8 of part II' and inserting in lieu
  thereof `or 7 of title II'; and
  (B) in paragraph (10), by striking out `section 505(a)(1)(B)' and inserting
  in lieu thereof `section 2203(a)(1)(A)'.
  (13) Section 37 is amended--
  (A) in the section caption  by striking out `Relating to Foreign Military
  Sales Credits';
  (B) in subsection (a), by striking out `section 23' and inserting in lieu
  thereof `the former authority of section 23 or under the authority of
  chapter 2 of title II of the  Foreign Assistance Act of 1961'; and
  (C) in subsection (b), by inserting `the former authority of' after
  `extended pursuant to'.
  (14) Section 42 is amended--
  (A) in subsection (a) by striking out `, but subject to subsection (b)
  of this section,' in the first sentence and inserting in lieu thereof `;';
  (B) by repealing subsections (b) and (c) and redesignating subsections
  (d) through (f) as subsections (b) through (d), respectively; and
  (C) in subsection (b)(1), as so redesignated, by striking out `and
  guaranties under sections 21, 22, 23, 24,' and inserting in lieu thereof
  `under sections 21, 22,'.
SEC. 203. TRANSITION RULES.
  (a) DISPOSITION OF CERTAIN PREVIOUSLY PROVIDED MILITARY EQUIPMENT- The
  President may waive requirements imposed pursuant to sections 505 (a)(4)
  and (f) of the  Foreign Assistance Act of 1961, as in effect before the
  effective date of this title, with respect to defense articles or related
  training or other defense services furnished before that date.
  (b) COMMITMENT OF PRIOR YEAR MILITARY ASSISTANCE- If the President at any
  time notifies Congress that no further sales will be made pursuant to the
  Defense Trade and Export Control Act after the date of such notification to a
  specified country under circumstances then prevailing, any uncommitted funds
  allocated for such country that, prior to the effective date of Title II of
  the International Cooperation Act of 1991, were transferred under the former
  authority of section 503(a)(3) of the Foreign Assistance Act of 1961 for the
  purpose of financing such sales may be committed to finance such sales to
  other eligible countries subject to advance notification to the Committees
  on Appropriations and Foreign Relations of the Senate and the Committees
  on Appropriations and Foreign Affairs of the House of Representatives.
CHAPTER 2--FOREIGN MILITARY SALES PROGRAM
SEC. 221. ARMS TRANSFER POLICY.
  (a) ESTABLISHMENT OF NEW POLICY- The Arms Export Control Act is amended
  by striking out the first section and section 1 and inserting in lieu of
  section 1 the following:
`SECTION 1. SHORT TITLE AND STATEMENT OF UNITED STATES ARMS TRANSFER POLICY.
  `(a) SHORT TITLE- This Act may be cited as the `Defense Trade and Export
  Control Act'.
  `(b) POLICY OBJECTIVES- The policy of the United States in implementing the
  authorities of this Act relating to sales and other transfers of defense
  articles, defense services, and design and construction services should
  be based upon the following objectives:
  `(1) Ensuring that such transfers are fully consistent with the foreign
  and national security policies of the United States.
  `(2) Ensuring that such transfers directly enhance or achieve specific
  national defense requirements of the recipient country or objectives of
  mutual concern and contribute to the common defense.
  `(3) Promoting defense cooperation through the transfer of United States
  major defense equipment and other defense articles and defense services,
  including through licensed production and coproduction.
  `(4) Promoting rationalization, standardization, and interoperability of
  foreign military forces with the Armed Forces of the United States.
  `(5) Contributing to the deterrence of aggression and promoting regional
  security by enabling recipient countries to negotiate peaceful solutions
  to conflicts with confidence.
  `(6) Enabling recipient countries to participate in regional or collective
  arrangements or other measures consistent with the Charter of the United
  Nations.
  `(7) Enabling recipient countries to participate in collective measures
  requested by the United Nations.
  `(8) Complementing United States efforts to restrain and control the
  international transfer of defense articles and defense services and to
  encourage international conventional arms control arrangements.
  `(9) Sustaining and enhancing the viability of the defense industrial base
  of the United States, by such means as lengthening production runs, reducing
  unit costs and providing continued employment for defense industry workers.
  `(c) MULTILATERAL CONTROLS ON TRANSFERS OF DEFENSE ARTICLES AND DEFENSE
  SERVICES- The President should continue to seek, through negotiations
  with the Soviet Union and other countries that supply or receive defense
  articles and defense services, the establishment of effective multilateral
  controls on the transfer of defense articles and defense services.'.
  (b) CONFORMING AMENDMENTS RELATING TO PURPOSES FOR WHICH DEFENSE ARTICLES
  MAY BE USED-
  (1) REPEAL OF EXISTING PURPOSE SECTION- Section 4 of that Act is repealed.
  (2) INELIGIBILITY- Section 3(c) of that Act is amended--
  (A) in paragraph (1), as amended by section 202 of this Act, by striking
  out `authorized under section 4' both times that it appears and inserting
  in lieu thereof `specified in paragraph (5)'; and
  (B) by adding at the end the following:
  `(5) The purposes referred to in paragraph (1) are the following:
  `(A) Internal security.
  `(B) Legitimate self-defense.
  `(C) Participation in regional or collective arrangements or measures
  consistent with the Charter of the United Nations, or participation in
  collective measures requested by the United Nations for the purpose of
  maintaining or restoring international peace and security.
  `(D) Construction of public works, or other activities which contribute
  to the economic and social development of the recipient country.
  `(E) Such other purposes as may be provided for in particular provisions
  of law.'.
  (c) CONFORMING REFERENCES TO ACT- Any reference to the Arms Export Control
  Act shall be deemed to be a reference to the Defense Trade and Export
  Control Act.
SEC. 222. DESIGNATION OF MAJOR NON-NATO ALLIES.
  (a) Designation-
  (1) NOTICE TO CONGRESS- Chapter 4 of the Defense Trade and Export Control
  Act is amended by adding at the end the following:
`SEC. 48. DESIGNATION OF MAJOR NON-NATO ALLIES.
  `(a) NOTICE TO CONGRESS- The President may--
  `(1) designate a country as a major non-NATO ally for purposes of this Act,
  the Foreign Assistance Act of 1961, or any other provision of law, or
  `(2) terminate such a designation, by notifying the Congress in writing.
  `(b) INITIAL DESIGNATIONS- Australia, Egypt, Israel, Japan, and the Republic
  of Korea shall be deemed to have been so designated by the President as
  of the effective date of this section, and the President is not required
  to notify the Congress of such designation of those countries.
  `(c) The President is authorized to limit the applicability of a designation
  or termination under subsection (a) to particular provisions of law if he
  provides an explanation for doing so in connection with the notification
  to Congress of such designation or termination.'.
  (2) DEFINITION- Section 47 of that Act is amended--
  (A) by striking out `and' at the end of paragraph (7);
  (B) by striking out the period at the end of paragraph (8) and inserting
  in lieu thereof `; and'; and
  (C) by adding at the end the following:
  `(9) `major non-NATO ally' means a country which is designated in accordance
  with section 48 as a major non-NATO ally for purposes of this Act, the
  Foreign Assistance Act of 1961, or any other provision of law.'.
  (3) EXISTING DEFINITIONS- (A) The last sentence of section 21(g) of that
  Act is repealed.
  (B) Section 65(d) of that Act is amended--
  (i) by striking out `or major non-NATO', and
  (ii) by striking out `or a' and all that follows through `2767a)'.
  (b) COOPERATIVE TRAINING AGREEMENTS- Section 21(g) of that Act is amended
  in the first sentence by striking out `similar agreements' and all that
  follows through `allies' and inserting in lieu thereof `similar agreements
  with countries'.
SEC. 223. STANDARDIZING CONGRESSIONAL REVIEW PROCEDURES FOR ARMS TRANSFERS.
  (a) STANDARDIZED PROCEDURES. --The Defense Trade and Export Control Act
  is further amended by adding at the end of chapter 4 the following:
`SEC. 49. STANDARDIZED CONGRESSIONAL NOTIFICATION PROCEDURES.
  `(a) NOTIFICATION REQUIREMENT- In any case in which the President is required
  to submit a certification to the Speaker of the House of Representatives
  and the chairman of the Committee on Foreign Relations of the Senate before--
  `(1) under section 3(d), giving his consent to a transfer to a country or
  international organization;
  `(2) under section 36(b), issuing a letter of offer to a country or
  international organization;
  `(3) under section 36(c), issuing a license for the export to a country
  or international organization;
  `(4) under section 36(d), issuing an approval of a commercial technical
  assistance or manufacturing licensing agreement for or in a country or
  international organization; and
  `(5) under section 62, entering into or renewing an agreement involving
  the lease under chapter 6, or the loan under chapter 2 of title II of
  the Foreign Assistance Act to a country or organization, but only if the
  defense articles to be leased or loaned are either--
  `(A) major defense equipment valued (in terms of its replacement cost less
  any depreciation in value) at $25,000,000 or more, or
  `(B) otherwise valued (in terms of its replacement cost less any depreciation
  in value) at $75,000,000 or more;
the President's consent to a transfer shall not become effective, the letter
of offer, license or approval shall not be issued, or the agreement to lease
or loan shall not become effective, as the case may be, except as provided
in this section.
  `(b) REVIEW PERIOD. --In any case covered by subsection (a), the President's
  consent to a transfer may not become effective, the letter of offer,
  license or approval may not be issued, or the agreement to lease or loan
  may not become effective if--
  `(1) in cases in which the recipient country or international organization
  is the North Atlantic Treaty Organization, any member country of such
  organization, or any major non-NATO ally, within fifteen days after the
  certification is submitted; and
  `(2) in other cases, within 30 days after the certification is submitted;
a joint resolution is enacted prohibiting it from becoming effective.
  `(c) Any joint resolution under subsection (b) shall be considered
  in the Senate in accordance with the provisions of section 601(b)
  of the International Security Assistance and Arms Export Control Act
  of 1976. For the purpose of expediting the consideration and enactment
  of joint resolutions under subsection (b) of this section, a motion to
  proceed to the consideration of any such joint resolution after it has
  been reported by the appropriate committee shall be treated as highly
  privileged in the House of Representatives.
  `(d) The President may waive the application of subsection (b) if the
  certification states that an emergency exists that requires the transfer,
  sale, export, agreement, loan or lease in the national security interests
  of the United States. In such cases, the President shall set forth in
  the certification a detailed justification for the waiver, including
  a description of the emergency circumstances that necessitate it and a
  discussion of the national security interests involved.'.
  (b) CONFORMING AMENDMENTS-  That Act is further amended--
  (1) by striking out paragraph (2) of section 3(d), and redesignating
  paragraphs (3) and (4) as paragraphs (2) and (3), respectively;
  (2) in the section 3(d)(2), as redesignated by paragraph (1)--
  (A) in the first sentence--
  (i) by striking out `at least 30 calendar days';
  (ii) by striking out `report' and inserting in lieu thereof `certification';
  (3) by striking out the last sentence; (3) in section 36(b)--
  (A) by striking the last two sentences of paragraph (1);
  (B) by striking paragraphs (2) and (3);
  (5) by redesignating paragraphs (4) and (5) as paragraphs (2) and (3),
  respectively;
  (4) in section 36(c)--
  (A) by striking out `(1)'; and
  (B) by striking out paragraphs (2) and (3);
  (5) in section 36(d)--
  (A) by striking out `for or in a country not a member of the North Atlantic
  Treaty Organization'; and
  (B) by striking out `(c)(1)' and inserting in lieu thereof `(c)'; and
  (6) in chapter 6--
  (A) in section 62--
  (i) by striking out `(a) Not less than 30 days before' and inserting in
  lieu thereof `Before';
  (ii) by striking out subsection (b); and (B) by striking out section 63.
  (c) EFFECTIVE DATE- The amendments made by this section apply with respect
  to certifications submitted on or after the effective date specified in
  section 601.
SEC. 224. UPDATE OF CERTIFICATION THRESHOLDS.
  The Defense Trade and Export Control Act is further amended--
  (a) by striking out `14,000,000' each place it appears in sections 3 and
  36, and replacing it with `$25,000,000';
  (b) by striking out `50,000,000' each place it appears in sections 3 and
  36, and replacing it with `$75,000,000'; and
  (c) by striking out `200,000,000' each place it appears in section 36,
  and replacing it with `$300,000,000'.
  The amendments made by this section apply with respect to certifications
  submitted on or after the effective date specified in section 601.
SEC. 225. ECONOMIC IMPACT ON UNITED STATES OF ARMS SALES.
  (a) CONGRESSIONAL PRESENTATION MATERIALS. --Section 25(a) of the Defense
  Trade and Export Control Act is amended--
  (1) by redesignating paragraphs (11) and (12) as paragraphs (12) and (13),
  respectively; and
  (2) by inserting the following new paragraph (11) after paragraph (10):
  `(11) an analysis of the economic benefits or disadvantages to the United
  States of sales and licensed commercial exports under this Act during the
  preceding fiscal year;'.
  (b) ARMS SALE NOTIFICATIONS. --Section 36(b)(1) of that Act is amended--
  (1) by striking out `and' at the end of subparagraph (O);
  (2) by striking out the period at the end of subparagraph (P) and inserting
  in lieu thereof `; and'; and
  (3) by inserting after subparagraph (P) the following:
  `(Q) an analysis of the economic benefits or disadvantages to the United
  States of the proposed sale.'.
SEC. 226. ENFORCEMENT AND PROCESSING OF ARMS EXPORT LICENSING REQUIREMENTS.
  (a) DEFENSE ARTICLES AND SERVICES. --Section 38(a)(1) of the Defense Trade
  and Export Control Act is amended--
  (1) by striking out `(a)(1)' and inserting in lieu thereof `(a)(1)(A); and
  (2) by inserting at the end thereof the following:
  `(B) Notwithstanding any other provision of law--
  `(i) an article or service shall be designated or determined to be a
  defense article or defense service for purposes of this section if--
  `(I) it is specially designed, developed, configured, adapted, or modified
  for a military or intelligence application, or
  `(II) in accordance with regulations promulgated in accordance with
  this section, the President determines that an article or service has
  substantial military or intelligence applicability such that it is necessary
  to control the export of the article or service to all destinations to
  protect significant national security or foreign policy interests of the
  United States.
  `(ii) Defense articles and defense services controlled pursuant to
  this section that have been determined in accordance with regulations
  promulgated in accordance with this section to have gained a predominant
  civil application and that do not need to be controlled to all destinations
  to protect significant national security interests of the United States
  shall be removed from the United States Munitions List.'.
  (b) VIOLATIONS OF INTERNATIONAL TRAFFIC IN ARMS REGULATIONS-
  (1) DISQUALIFICATION AND FORFEITURE- Section 38 of that Act is further
  amended by inserting after subsection (c) the following:
  `(d)(1) No contract between a foreign government and a person convicted
  or debarred for a violation of this section or section 39, or any rule
  or regulation issued under either section, may be approved for financing
  under chapter 2 of title II of the Foreign Assistance Act of 1961 during
  the twelve months following the date of such conviction or debarment.
  `(2)(A) Any person who is convicted for a violation of this section or
  section 39, or any rule or regulation issued under either section, shall
  (in addition to any other penalty) forfeit to the United States--
  `(i) any of that person's interest in, security of, claim against, or
  property or contractual rights of any kind in any defense article or other
  tangible item that was the subject of the violation;
  `(ii) any of that person's interest in, security of, claim against, or
  property or contractual rights of any kind in any defense article or other
  tangible item that was used in--
  `(I) the export or import or attempt to export or import, or
  `(II) the contribution, gift, commission, or fee that was paid or offered
  or agreed to be paid, that was the subject of the violation; and
  `(iii) any of that person's property constituting, or derived from, any
  proceed obtained directly or indirectly as a result of the violation.
  `(B) The procedures in any forfeiture under this paragraph, and the duties
  and authorities of the courts of the United States and the Attorney General
  with respect to any forfeiture action under this paragraph or with respect
  to any property that may be subject to forfeiture under this paragraph,
  shall be governed by section 1963 of title 18, United States Code.'.
  (2) EFFECTIVE DATE- Subsection (d) of section 38 of that Act, as enacted
  by paragraph (1) of this subsection, shall take effect on the date of
  enactment of this Act or October 1, 1991 (whichever is later), and applies--
  (A) in the case of paragraph (1) of subsection (d), with respect to
  convictions or debarments occurring on or after the effective date of that
  subsection; and
  (B) in the case of paragraph (2) of subsection (d), with respect to
  convictions based on conduct occurring on or after the effective date of
  that subsection.
  (3) CONFORMING AMENDMENT- (A) Section 38(e) of that Act is amended by
  striking out `(e), and (g)' and inserting in lieu thereof `and (e)'.
  (B) The amendment made by subparagraph (A) does not apply with respect
  to convictions based on conduct occurring before the date specified in
  paragraph (2)(B).
  (c) MUNITIONS CONTROL ENFORCEMENT PROCEDURES- Section 38(g) of that Act
  is amended--
  (1) in paragraph (3), by striking out `may disapprove the application'
  and inserting in lieu thereof `should disapprove the application if doing
  so is necessary to further law enforcement objectives or otherwise will
  serve the national interest'.
  (2) in paragraph (4), by inserting before the period at the end `or that
  foreign policy or national security considerations justify the issuance
  of a particular license';
  (3) in paragraph (5), by inserting `or international organization' after
  `foreign government'; and
  (4) in paragraph (8)--
  (A) by striking out `initial screening' and all that follows through
  `enforcement concerns'; and
  (B) inserting in lieu thereof `implementation of such functions'.
  (d) OTHER PROLIFERATION CONTROLS- Section 38 of that Act is further amended
  by inserting after subsection (h) the following:
  `(i) Notwithstanding any other provision of law, the President may, by
  regulation, impose controls to prevent the proliferation of nuclear-capable
  missiles and chemical, biological and related weapons. Such controls may
  cover any action or service, including financial services, knowingly
  performed by a United States person, or any person subject to United
  States jurisdiction, that would facilitate the acquisition, production or
  development of such missiles or weapons. The controls imposed under this
  subsection shall be in addition to the controls imposed pursuant to any
  other provision of law.'.
SEC. 227. FAIR PRICING.
  Section 21(e) of the Defense Trade and Export Control Act is amended by
  adding at the end the following:
  `(4) Effective with respect to defense articles sold after September 30,
  1991, charges for defense articles that are not major defense equipment
  that are sold under this Act or licensed or approved for export under
  section 38 of this Act may exclude any nonrecurring costs of research on
  or development or production of those articles.'.
SEC. 228. PRESIDENTIAL AUTHORITIES.
  The Defense Trade and Export Control Act is amended as follows:
  (a) Section 2 is amended--
  (1) in subsection (a), by striking out `Secretary of State' and inserting
  in lieu thereof `President'; and
  (2) in subsection (b), by striking out `Under the direction of the President,
  the Secretary of State,' and inserting in lieu thereof `The President'.
  (b) Section 21 is amended--
  (1) in subsection (a)(2), by striking out `Secretary of Defense' and
  inserting in lieu thereof `President'.
  (2) in subsection (d), by striking out `Secretary of the Treasury' and
  inserting in lieu thereof `President'; and
  (3) in subsection (e)(3), by striking out `Secretary of Defense' and
  inserting in lieu thereof `President'.
  (c) Section 22(a), is amended by striking out `Secretary of the Treasury'
  and inserting in lieu thereof `President'.
  (d) Section 27(i), is amended by striking out `Secretary of State and the
  Secretary of Defense' and inserting in lieu thereof `the President'.
  (e) Section 30A is amended--
  (1) in subsection (a), by striking out `a Secretary of'; and
  (2) in subsection (b), by striking out `the Secretary of'.
  (f) Section 36 is amended--
  (1) in subsection (a)(8), by striking out `to the Secretary of State';
  (2) in subsection (b)(1)(D), by striking out `, prepared by the Director of
  the Arms Control and Disarmament Agency in consultation with the Secretary
  of State and the Secretary of Defense,'; and
  (3) in subsection (c)(1), by striking out `,prepared in consultation with
  the Secretary of Defense'.
  (g) Section 38 is amended--
  (1) in subsection (a)(2), by striking out `shall be made in coordination
  with the Director of the Arms Control and Disarmament Agency and' and
  `the Director's opinion as to';
  (2) by repealing subsection (b)(1)(B), as added by section 1255(b) of the
  Foreign Relations Authorization Act, Fiscal Years 1988 and 1989;
  (3) in subsection (g)(3), by striking out the last sentence.
  (4) in subsection (g)(4), by striking out `after consultation with the
  Secretary of the Treasury,';
  (5) in subsection (g)(8), by striking out `the Secretary of State, the
  Secretary of Defense, and the Secretary of the Treasury' and inserting in
  lieu thereof `the Department of State, the Department of Defense, and the
  Department of the Treasury'.
  (h) Section 39 and section 40 are each amended by striking out `Secretary
  of State' each place it appears and inserting in lieu thereof `President'.
  (i) Section 42 is amended--
  (1) in subsection (a), by striking out `in consultation with the Director
  of the Arms Control and Disarmament Agency, the Director's opinion as to';
  (2) in subsection (b), as redesignated by section 202(14) of this Act,
  by striking out `Secretary of Defense shall, under the direction of the
  President, have primary' and inserting in lieu thereof `President shall
  have'; and by striking out `, under the direction of the President, be
  determined by the Secretary of Defense' and inserting in lieu thereof
  `be determined by the President'; and
  (3) in subsection (c), as redesignated by section 202(14) of this Act,
  by striking out `Secretary' and `Secretary of State' and inserting in lieu
  thereof `President' in each case.
  (j) Section 51 is amended--
  (1) in subsection (a)(1), by striking out `and in consultation with the
  Secretary of State, the Secretary of Defense shall establish' and inserting
  in lieu thereof `, there is established';
  (2) in subsection (a)(2), by striking out `Secretary of State or the
  Secretary of Defense' and inserting in lieu thereof `the President'.
  (k) Section 52(a) is amended by striking out `by the Secretary of Defense'.
  (l) Section 65 is amended by striking out `Secretary of Defense' and
  `Secretary' each place it appears and inserting in lieu thereof `President'
  in each case.
  (m) Section 71 is amended--
  (1) in subsection (a), by striking out `Secretary of State, in consultation
  with the Secretary of Defense and the heads of other appropriate departments
  and agencies,' and inserting in lieu thereof `President'.
  (2) by striking out subsection (b) and redesignating subsection (c) as
  subsection (b); and
  (3) in subsection (b)(2), as so redesignated, by striking out `Secretary of
  State' and `Director of Central Intelligence' and inserting in lieu thereof
  `President' in each case.
  (n) Section 73(d) is amended by striking out `Secretary of State, in
  consultation with the Secretary of Defense and the Secretary of Commerce,'
  and inserting in lieu thereof `President'.
SEC. 229. AMENDMENTS TO ELIMINATE OBSOLETE AND INCONSISTENT PROVISIONS.
  The Defense Trade and Export Control Act is amended as follows:
  (1) Section 5(d) is repealed.
  (2) Section 25 is amended--
  (A) in subsection (a), by striking out `Except as provided in subsection
  (d), no' and inserting in lieu thereof `No';
  (B) in paragraph (1) of subsection (a) by striking out `$7,000,000' and
  `$25,000,000' and inserting in lieu thereof `$25,000,000' and `$75,000,000',
  respectively;
  (C) in subsection (a), as amended by section 225(a) of this Act, by
  repealing paragraphs (4), (7) and (9); by redesignating paragraphs (5) and
  (6) as paragraphs (4) and (5), respectively; by redesignating paragraph
  (8) as paragraph (6); and by redesignating paragraphs (10) through (13)
  as paragraphs (7) through (10), respectively; and
  (D) by repealing subsection (d), as added by section 113 of the International
  Security and Development Cooperation Act of 1985.
  (3) Sections 28, 33, 34, 35, 38(b)(3), 41, 44 and 46 are repealed.
  (4) Section 36 is amended--
  (A) in the text preceding paragraph (1), by striking out `an unclassified
  report' and all that follows through `containing' and inserting in lieu
  thereof `a report, which shall be unclassified to the maximum extent
  possible, containing';
  (B) in subsection (a), by striking out paragraphs (3), (5), and (6),
  by redesignating paragraph (4) as paragraph (3), and by redesignating
  paragraphs (7) through (11) as paragraphs (4) through (8), respectively; and
  (C) in subsection (b)(1), by striking out `(9)' and `(8)' and inserting
  in lieu thereof `(6)' and `(5)', respectively.
  (5) Section 45 is amended--
  (A) by amending the section caption to read `Statutory Construction'; and
  (B)(i) by striking out `(a) Sections 521' and all that follows through
  `in section 44, no'; and
  (ii) inserting in lieu thereof `No provision of this Act shall be construed
  as modifying in any way the provisions of the Atomic Energy Act of 1954,
  as amended, or section 7307 of title 10 of the United States Code. No'.
SEC. 230. CONTRACT ADMINISTRATIVE SERVICE CHARGES FOR NATO SUBSIDIARY BODIES.
  Section 21(h)(1)(A) of the Defense Trade and Export Control Act is amended
  by inserting `, or by a North Atlantic Treaty Organization Body on behalf
  of such foreign government' after `North Atlantic Treaty Organization'.
SEC. 231. TECHNICAL CORRECTIONS.
  The Defense Trade and Export Control Act is amended as follows:
  (1) CORRECTION OF CROSS REFERENCES TO INTERNATIONAL TRAFFIC IN ARMS
  REGULATIONS-
  (A) Section 3(a) is amended in the second sentence following paragraph (4)--
  (i) by striking out `significant defense articles' and inserting in lieu
  thereof `significant military equipment'; and
  (ii) by striking `such defense articles' both places it appears and
  inserting in lieu `such significant military equipment'.
  (B) Section 36(d) is amended by striking out `combat' and inserting in
  lieu thereof `military'.
  (2) CLERICAL ERROR IN 1985 AUTHORIZATION ACT- Subsection (d) of  section 25,
  as added by section 112(b) of the International Security and Development
  Cooperation Act of 1985, is amended by striking out the semicolon at the
  end and inserting in lieu thereof a period.
TITLE III--OVERSEAS PRIVATE INVESTMENT CORPORATION; TRADE AND DEVELOPMENT
AGENCY
SEC. 301. REVISION OF CERTAIN PRIVATE SECTOR PROGRAMS.
  The Foreign Assistance Act of 1961 is amended by adding the following  new
  title III after new title II (as enacted by title II of this Act):
`TITLE III--OVERSEAS PRIVATE INVESTMENT CORPORATION; TRADE AND DEVELOPMENT
AGENCY
`CHAPTER 1--OVERSEAS PRIVATE INVESTMENT CORPORATIONS
`SEC. 3101. PURPOSE AND POLICY.
  `(a) PURPOSE- The Overseas Private Investment Corporation shall be an
  agency of the United States under the foreign policy guidance of the
  Secretary of State. The purpose of the Corporation is to mobilize and
  facilitate the participation of United States private capital and skills
  in the economic and social development of emerging democracies, economies
  in transformation and less developed friendly countries and areas, thereby
  complementing the development assistance objectives of the United States.
  `(b) DEVELOPMENT AND PER CAPITA INCOME CRITERIA- The Corporation, in
  determining whether to provide insurance, reinsurance, guarantees, or
  financing for a project, shall especially--
  `(1) be guided by the economic and social development impact and benefits
  of such a project and the ways in which such a project complements, or is
  compatible with, other development assistance programs or projects of the
  United States or other donors; and
  `(2) give preferential consideration to investment projects in countries
  that have per capita incomes of $1,091 or less in 1989 United States dollars.
  `(c) GUIDELINES FOR ACTIVITIES OF OPIC- In carrying out its purpose,
  the Corporation, utilizing broad criteria, shall undertake--
  `(1) to conduct insurance, reinsurance, guarantee, and financing operations
  on a self-sustaining basis, taking into account in its guarantee and
  financing operations the economic and financial soundness of projects;
  `(2) to utilize private credit and investment institutions and the
  Corporation's guarantee authority as the principal means of mobilizing
  capital investment funds;
  `(3) to broaden private participation and revolve its funds through selling
  its direct investments to private investors whenever it can appropriately
  do so on satisfactory terms;
  `(4) to conduct its insurance operations with due regard to principles
  of risk management, including efforts to share its insurance risks and
  reinsurance risks;
  `(5) to consider in the conduct of its operations the extent to which
  the governments of less developed countries are receptive to private
  enterprise, domestic and foreign, and their willingness and ability to
  maintain conditions which enable private enterprise to make its full
  contribution to the development process;
  `(6) to foster private initiative and competition and discourage monopolistic
  practices;
  `(7) to further to the greatest degree possible, in a manner consistent
  with its goals, the balance-of-payments and employment objectives of the
  United States;
  `(8) to conduct its activities in consonance with the activities of
  the agency designated under section 5102 and the international trade,
  investment, and financial policies of the United States Government, and
  to seek to support those developmental projects having positive trade
  benefits for the United States; and
  `(9) to advise and assist, within its field of competence, interested
  agencies of the United States and other organizations, both public and
  private, national and international, with respect to projects and programs
  relating to the development of private enterprise in less developed
  countries and areas.
`SEC. 3102. STOCK OF THE CORPORATION.
  `The Secretary of the Treasury shall hold the capital stock of the
  Corporation.
`SEC. 3103. ORGANIZATION AND MANAGEMENT.
  `(a) STRUCTURE OF THE CORPORATION- The Corporation shall have a Board
  of Directors, a President, an Executive Vice President, and such other
  officers and staff as the Board of Directors may determine.
  `(b) BOARD OF DIRECTORS-
  `(1) IN GENERAL- All powers of the Corporation shall vest in and be exercised
  by or under the authority of its Board of Directors (hereafter in this
  chapter referred to as the `Board') which shall consist of 15 Directors
  (including the Chair, Vice Chair, and the President of the Corporation),
  with 8 Directors constituting a quorum for the transaction of business.
  `(2) COMPOSITION OF THE BOARD-
  `(A) CHAIR- The Chair of the Board shall be the head of the agency designated
  under section 5102, ex officio.
  `(B) VICE CHAIR- The Vice Chair of the Board shall be the United States
  Trade Representative, ex officio, or, if so designated by the United States
  Trade Representative, a Deputy United States Trade Representative.
  `(C) PRESIDENT OF THE CORPORATION- The President of the Corporation shall
  serve as a Director, ex officio.
  `(D) PUBLIC SECTOR DIRECTORS- (i) In addition to the directors provided
  for in subparagraphs (A), (B), and (C), four Directors who are officers
  or employees of the Government of the United States shall be designated
  by the President of the United States.
  `(ii) The Directors designated under this subparagraph shall receive no
  additional compensation by virtue of their service as such a Director.
  `(E) PRIVATE SECTOR DIRECTORS- (i) Eight Directors who are not officers
  or employees of the Government of the United States shall be appointed by
  the President of the United States, by and with the advice and consent of
  the Senate. It is the sense of the Congress that, of these, at least--
  `(I) two should be experienced in small business,
  `(II) one should be experienced in organized labor, and
  `(III) one should be experienced in cooperatives.
  `(ii) Each Director appointed under this subparagraph should be appointed
  for a term of not more than three years. The terms of not more than three
  such Directors should expire in any one year. Such Directors should serve
  until their successors are appointed and qualified and may be reappointed
  to subsequent terms.
  `(iii) Each Director appointed under this subparagraph shall be compensated
  at the daily equivalent of the annual rate of pay in effect for level IV
  of the Executive Schedule under section 5315 of title 5, United States
  Code, for each day (including travel time) during which such Director is
  actually engaged in the business of the Corporation, and may be paid travel
  or transportation expenses to the extent authorized for employees serving
  intermittently in the Government service under section 5703 of title 5,
  United States Code. Any Director may waive any such compensation.
  `(c) APPOINTMENT OF THE PRESIDENT- The President of the Corporation shall
  be appointed by the President of the United States, by and with the advice
  and consent of the Senate. In making such appointment, the President should
  take into account the private business experience of the appointee. The
  President of the Corporation shall be its Chief Executive Officer and
  shall be responsible for the operations and management of the Corporation,
  subject to bylaws and policies established by the Board.
  `(d) OFFICERS AND STAFF.-
  `(1) EXECUTIVE VICE PRESIDENT- The Executive Vice President of the
  Corporation shall be appointed by the President of the United States,
  by and with the advice and consent of the Senate.
  `(2) OTHER OFFICERS AND STAFF- (A) The Corporation may appoint such
  other officers and such employees (including attorneys) and agents as the
  Corporation considers appropriate.
  `(B) The officers, employees, and agents appointed under this subsection
  shall have such functions as the Corporation may determine.
  `(C) Of the officers, employees, and agents appointed under this paragraph,
  twenty may be appointed, compensated or removed without regard to civil
  service laws and regulations.
  `(D) Under such regulations as the President may prescribe, any individual
  appointed under subparagraph (C) may be entitled, upon removal (except for
  cause) from the position to which the appointment was made, to reinstatement
  to the position occupied by that individual at the time of appointment or
  to a position of comparable grade and pay.
`SEC. 3104. INVESTMENT INSURANCE, GUARANTEES, FINANCING, AND OTHER PROGRAMS.
  `(a) INVESTMENT INSURANCE-
  `(1) RISKS FOR WHICH INSURANCE ISSUED- The Corporation is authorized to
  issue insurance, upon such terms and conditions as the Corporation may
  determine, to eligible investors assuring protection in whole or in part
  against any or all of the following risks with respect to projects which
  the Corporation has approved:
  `(A) Inability to convert into United States dollars other currencies,
  or credits in such currencies, received as earnings or profits from the
  approved project, as repayment or return of the investment in the project,
  in whole or in part, or as compensation for the sale or disposition of
  all or any part of the investment.
  `(B) Loss of investment, in whole or in part, in the approved project due
  to expropriation or confiscation by action of a foreign government.
  `(C) Loss due to war, revolution, insurrection, or civil strife.
  `(D) Loss due to business interruption caused by any of the risks set
  forth in subparagraphs (A), (B), and (C).
  `(2) RISK-SHARING ARRANGEMENTS WITH FOREIGN GOVERNMENTS AND MULTILATERAL
  ORGANIZATIONS- Recognizing that major private investments in emerging
  democracies, economies in transformation and less developed friendly
  countries or areas are often made by enterprises in which there is
  multinational participation, including significant United States private
  participation, the Corporation may make arrangements with foreign governments
  (including agencies, instrumentalities, and political subdivisions
  thereof) and with multilateral organizations and institutions for sharing
  liabilities assumed under investment insurance for such investments and
  may, in connection with such arrangements, issue insurance to investors
  not otherwise eligible for insurance under this chapter, except that--
  `(A) liabilities assumed by the Corporation under the authority of this
  paragraph shall be consistent with the purposes of this chapter, and
  `(B) the maximum share of liabilities so assumed shall not exceed the
  proportionate participation by eligible investors in the project.
  `(3) MAXIMUM CONTINGENT LIABILITY WITH RESPECT TO SINGLE INVESTOR- Not
  more than 10 percent of the maximum contingent liability for investment
  insurance which the Corporation is permitted to have outstanding under
  section 3107(a)(1) shall be issued to a single investor.
  `(4) Other insurance functions-
  `(A) IN GENERAL- The Corporation is authorized--
  `(i) to make and carry out contracts of insurance or reinsurance,
  or agreements to associate or share risks, with insurance companies,
  financial institutions, any other persons, or groups thereof and
  `(ii) to employ such insurance companies, financial institutions, other
  persons, or groups, where appropriate, as its agent, or to act as their
  agent, in the issuance and servicing of insurance, the adjustment of claims,
  the exercise of subrogation rights, and ceding and accepting of reinsurance,
  and in any other matter incident to an insurance business, except that
  such agreements and contracts shall be consistent with the purposes of
  the Corporation set forth in section 3101 and shall be on equitable terms.
  `(B) RISK-SHARING AGREEMENTS- The Corporation is authorized to enter into
  pooling or other risk-sharing agreements with multilateral insurance of
  financing agencies or groups of such agencies.
  `(C) OWNERSHIP INTEREST IN RISK-SHARING ENTITIES- The Corporation is
  authorized to hold an ownership interest in any association or other entity
  established for the purposes of sharing risks under investment insurance.
  `(D) REINSURANCE OF CERTAIN LIABILITIES- The Corporation is authorized
  to issue, upon such terms and conditions as it may determine, reinsurance
  of liabilities assumed by other insurers or groups thereof in respect of
  risks referred to in subsection (a)(1).
  `(E) LIMITATION ON REINSURANCE- The amount of reinsurance of liabilities
  under this chapter which the Corporation may issue shall not in the
  aggregate exceed at any one time an amount equal to the amount authorized
  for the maximum contingent liability outstanding at any one time under
  section 3107(a)(1). All reinsurance issued by the Corporation under this
  subsection shall require that the reinsured party retain for his or her
  own account specified portions of liability, whether first loss or otherwise.
  `(b) Investment Guarantees-
  `(1) AUTHORITY- The Corporation is authorized to issue to eligible investors
  guarantees of loans and other investments made by such investors assuring
  against loss due to such risks and upon such terms and conditions as the
  Corporation may determine, subject to paragraphs (2), (3), and (4).
  `(2) GUARANTEES ON OTHER THAN LOAN INVESTMENTS- A guarantee issued under
  paragraph (1) on other than a loan investment may not exceed 75 percent
  of such investment.
  `(3) LIMIT ON AMOUNT OF INVESTMENT GUARANTEED- Except for loan
  investments for credit unions made by eligible credit unions or credit
  union associations, the aggregate amount of investment (exclusive of
  interest and earnings) for which guarantees are issued under paragraph (1)
  with respect to any project shall not exceed, at the time of issuance of
  any such guarantee, 75 percent of the total investment committed to any
  such project as determined by the Corporation. Such determination by the
  Corporation shall be conclusive for purposes of the Corporation's authority
  to issue any such guarantee.
  `(4) MAXIMUM CONTINGENT LIABILITY WITH RESPECT TO SINGLE INVESTOR- Not
  more than 15 percent of the maximum contingent liability for investment
  guarantees which the Corporation is permitted to have outstanding under
  section 3107(a)(2) may be issued to a single investor.
  `(c) Direct Investment-
  `(1) IN GENERAL- The Corporation is authorized to make loans in United States
  dollars, repayable in dollars, and to make loans in foreign currencies,
  to firms privately owned or of mixed private and public ownership, upon
  such terms and conditions as the Corporation may determine. Loans may
  be made under this subsection only for projects that are sponsored by or
  significantly involve United States small business or cooperatives.
  `(2) USE OF LOAN FOR NEW TECHNOLOGIES, PRODUCTS, OR SERVICES- The Corporation
  may designate up to 25 percent of any loan under this subsection for use
  in the development or adaptation in the United States of new technologies
  or new products or services that are to be used in the project for which
  the loan is made and are likely to contribute to the economic or social
  development of less developed countries.
  `(d) INVESTMENT ENCOURAGEMENT- The Corporation is authorized to initiate
  and support through financial participation, incentive grant, or otherwise,
  and on such terms and conditions as the Corporation may determine, the
  identification, assessment, surveying, and promotion of private investment
  opportunities, using wherever feasible and effective the facilities of
  private investors, except that the Corporation shall not finance any
  survey to ascertain the existence, location, extent, or quality of oil or
  gas resources.
  `(e) SPECIAL ACTIVITIES- The Corporation is authorized to administer and
  manage special projects and programs, including programs of financial
  and advisory support, which provide private technical, professional,
  or managerial assistance in the development of human resources, skills,
  technology, capital savings, intermediate financial and investment
  institutions, and cooperatives. The funds for these projects and programs
  may, with the Corporation's concurrence, be transferred to it for such
  purposes under the authority of section 5201(a) or from other sources,
  public or private.
  `(f) Pilot Equity Finance Program-
  `(1) AUTHORITY FOR PILOT PROGRAM- In order to study the feasibility and
  desirability of a program of equity financing, the Corporation is authorized
  to conduct a pilot program to terminate on September 30, 1995, under which
  it may, on the limited basis prescribed in paragraphs (2) and (3), purchase,
  invest in, or otherwise acquire equity securities of any firm or entity,
  upon such terms and conditions as the Corporation may determine, for the
  purpose of providing capital for any project which is consistent with the
  provisions of this chapter, except that--
  `(A) the aggregate amount of the Corporation's equity investment with
  respect to any project shall not exceed 30 percent (49 percent for
  projects in eligible East European countries) of the aggregate amount of
  all equity investment made with respect to such project at the time that
  the Corporation's equity investment is made, except for securities acquired
  through the enforcement of any lien, pledge, or contractual arrangement
  as a result of a default by any party under any agreement relating to the
  terms of the Corporation's investment; and
  `(B) the Corporation's equity investment under this subsection with respect
  to any project, when added to any other investments made or guaranteed by
  the Corporation under subsection (b) or (c) with respect to such project,
  shall not cause the aggregate amount of all such investment to exceed,
  at the time any such investment is made or guaranteed by the Corporation,
  75 percent of the total investment committed to such project as determined
  by the Corporation.
  `The determination of the Corporation under subparagraph (B) shall be
  conclusive for purposes of the Corporation's authority to make or guarantee
  any such investment.
  `(2) ADDITIONAL CRITERIA- In making investment decisions under this
  subsection, the Corporation shall give preferential consideration to
  projects sponsored by or significantly involving United States small
  business or cooperatives. The Corporation shall also consider the extent
  to which the Corporation's equity investment will assist in obtaining the
  financing required for such projects.
  `(3) DISPOSITION OF EQUITY INTEREST- Taking into consideration, among
  other things, the Corporation's financial interests and the desirability of
  fostering the development of local capital markets in emerging democracies,
  economies in transformation and less developed countries, the Corporation
  shall endeavor to dispose of any equity interest it may acquire under this
  subsection within a period of ten years from the date of acquisition of
  such interest.
`SEC. 3105. ENHANCING PRIVATE POLITICAL RISK INSURANCE INDUSTRY.
  `(a) COOPERATIVE PROGRAMS- In order to encourage greater availability of
  political risk insurance for eligible investors by enhancing the private
  political risk insurance industry in the United States, and to the extent
  consistent with this chapter, the Corporation shall undertake programs of
  cooperation with such industry, and in connection with such programs may
  engage in the following activities:
  `(1) Utilizing its statutory authorities, encourage the development of
  associations, pools, or consortia of United States private political
  risk insurers.
  `(2) Share insurance risks (through coinsurance, contingent insurance, or
  other means) in a manner that is conducive to the growth and development
  of the private political risk insurance industry in the United States.
  `(3) Notwithstanding section 3109(e), upon the expiration of insurance
  provided by the Corporation for an investment, enter into risk-sharing
  agreements with United States private political risk insurers to insure any
  such investment; except that, in cooperating in the offering of insurance
  under this paragraph, the Corporation shall not assume responsibility
  for more than 50 percent of the insurance being offered in each separate
  transaction.
  `(b) Advisory Group-
  `(1) ESTABLISHMENT AND MEMBERSHIP- The Corporation shall establish a group
  to advise the Corporation on the development and implementation of the
  cooperative programs under this section. The group shall be appointed by the
  Board and shall be composed of up to twelve members, including the following:
  `(A) Up to seven persons from the private political risk insurance industry,
  of whom no fewer than two shall represent private political risk insurers,
  one shall represent private political risk reinsurers, and one shall
  represent insurance or reinsurance brokerage firms.
  `(B) Up to four persons, other than persons described in subparagraph (A),
  who are purchasers of political risk insurance.
  `(2) FUNCTIONS- The Corporation shall call upon members of the advisory
  group, either collectively or individually, to advise it regarding the
  capability of the private political risk insurance industry to meet the
  political risk insurance needs of United States investors, and regarding
  the development of cooperative programs to enhance such capability.
  `(3) MEETINGS- The advisory group shall meet at least annually. The
  Corporation may from time to time convene meetings of selected members
  of the advisory group to address particular questions requiring their
  specialized knowledge.
  `(4) FEDERAL ADVISORY COMMITTEE ACT- The advisory group shall not be
  subject to the Federal Advisory Committee Act (5 U.S.C. App.).
`SEC. 3106. GUIDELINES AND REQUIREMENTS FOR OPIC SUPPORT.
  `(a) DEVELOPMENT IMPACT PROFILE- In order to carry out the policy set
  forth in section 3101(b)(1), the Corporation shall prepare and maintain for
  each investment project it insures, finances, or reinsures, a development
  impact profile consisting of data appropriate to measure the projected and
  actual effects of such project on development. Criteria for evaluating
  projects shall be developed in consultation with the agency designated
  under section 5102.
  `(b) Small Business Development-
  `(1) BROADENED PARTICIPATION BY SMALL BUSINESSES- The Corporation shall
  undertake, in cooperation with appropriate departments, agencies, and
  instrumentalities of the United States as well as private entities and
  others, to broaden the participation of United States small business,
  cooperatives, and other small United States investors in the development
  of small private enterprise in less developed friendly countries or areas.
  `(2) PREFERENTIAL CONSIDERATION- The Corporation shall undertake to give
  preferential consideration in its investment insurance, reinsurance,
  and guarantee activities to investment projects sponsored by or involving
  United States small business or cooperatives.
  `(c) Environmental Considerations-
  `(1) ENVIRONMENTAL, HEALTH, OR SAFETY HAZARD- The Corporation should refuse
  to insure, reinsure, guarantee, or finance any investment in connection
  with a project which the Corporation determines will pose an unreasonable
  or major environmental, health, or safety hazard, or will result in the
  significant degradation of national parks or similar protected areas.
  `(2) RESOURCE SUSTAINABLE DEVELOPMENT- The Corporation, in determining
  whether to provide insurance, reinsurance, guarantees, or financing for a
  project, should ensure that the project is consistent with the goals set
  forth in section 1 of this Act.
  `(3) ENVIRONMENTAL IMPACT STATEMENTS AND ASSESSMENTS- The requirements of
  section 1121 relating to environmental impact statements and environmental
  assessments should apply to any investment which the Corporation insures,
  reinsures, guarantees, or finances under this chapter in connection with
  a project in a country.
  `(4) NOTIFICATION OF FOREIGN GOVERNMENTS- Before finally providing
  insurance, reinsurance, guarantees, or financing under this chapter for
  any environmentally sensitive investment in connection with a project in
  a country, the Corporation should notify appropriate government officials
  of that country of--
  `(A) all guidelines and other standards adopted by the International
  Bank for Reconstruction and Development and any other international
  organization relating to the public health or safety or the environment
  which are applicable to the project; and
  `(B) to the maximum extent practicable, any restriction under any law of
  the United States relating to public health or safety or the environment
  that would apply to the project if the project were undertaken in the
  United States.
  `The notification under the preceding sentence should include a summary of
  the guidelines, standards, and restrictions referred to in subparagraphs
  (A) and (B).
  `(5) CONSIDERATION OR COMMENTS RECEIVED- Before finally providing insurance,
  reinsurance, guarantees, or financing for any investment subject to paragraph
  (4), the Corporation should take into account any comments it receives on
  the project involved.
  `(d) HUMAN RIGHTS- The Corporation should take into account in the conduct
  of its programs in a country, in consultation with the Secretary of State,
  all available information about observance of and respect for human rights
  and fundamental freedoms in such country and the effect the operation of such
  programs will have on human rights and fundamental freedoms in such country.
  `(e) HARM TO EMPLOYMENT IN THE UNITED STATES-
  `(1) REPLACEMENT OF UNITED STATES PRODUCTION- (A) The Corporation should
  refuse to insure, reinsure, guarantee, or finance an investment if the
  Corporation determines that such investment is likely to cause such investor
  (or the sponsor of an investment project in which such investor is involved)
  significantly to reduce the number of the investor's or sponsor's employees
  in the United States because the investor or sponsor is replacing his
  or her United States production with production from such investment,
  and the production from such investment involves substantially the same
  product for substantially the same market as the investor's or sponsor's
  United States production.
  `(B) If the Corporation determines that an investment is not likely to have
  the effects described in subparagraph (A), the Corporation shall monitor
  conformance with the representations made by the investor on which the
  Corporation relied in making that determination.
  `(2) REDUCTION OF EMPLOYEES IN THE UNITED STATES- The Corporation should
  refuse to insure, reinsure, guarantee, or finance an investment if the
  Corporation determines that such investment is likely to cause a significant
  reduction in the number of employees in the United States.
  `(3) MANDATORY AND EXCLUSIVE UNITED STATES EFFECTS ANALYSIS- The analysis
  required by this chapter is mandatory and exclusive with respect to the
  United States effects of the Corporation's programs, including effects on
  exports and employment, and shall not be limited or modified by any other
  provision of this Act.
  `(f) PERFORMANCE REQUIREMENTS- The Corporation should refuse to insure,
  reinsure, guarantee, or finance an investment which is subject to performance
  requirements which would reduce substantially the positive trade benefits
  likely to accrue to the United States from the investment.
  `(g) PROHIBITED TRADE PRACTICES-
  `(1) PAYMENTS TO VIOLATORS BARRED- No payment may be made under any insurance
  or reinsurance which is issued under this chapter on or after April 24, 1978,
  for any loss occurring with respect to a project, if the preponderant cause
  of such loss was an act by the investor seeking payment under this chapter,
  by a person possessing majority ownership and control of the investor at the
  time of the act, or by any agent of such investor or controlling person,
  and a court of the United States has entered a final judgment that such
  act constituted a violation of section 30A of the Securities Exchange Act
  of 1934 or section 104 of the Foreign Corrupt Practices Act of 1977.
  `(2) REGULATIONS- The Corporation shall have in effect regulations setting
  forth appropriate conditions under which any person who has been finally
  determined by a court of the United States to have violated section 30A of
  the Securities Exchange Act of 1934 or section 104 of the Foreign Corrupt
  Practices Act of 1977 shall be suspended, for a period of not more than five
  years, from eligibility to receive any insurance, reinsurance, guarantee,
  financing, or other financial support authorized by this chapter, if that
  violation related to a project insured, reinsured, guaranteed, financed,
  or otherwise supported by the Corporation under this chapter.
  `(h) FRAUD OR MISREPRESENTATION- No payment may be made under any guarantee,
  insurance, or reinsurance issued under this chapter for any loss arising
  out of fraud or misrepresentation for which the party seeking payment
  is responsible.
  `(i) PUBLIC HEARINGS- The Board shall hold at least one public hearing
  each year in order to afford an opportunity for any person to present
  views as to whether the Corporation is carrying out its activities in
  accordance with section 3101 and this section or whether any investment
  in a particular country should have been or should be extended insurance,
  reinsurance, guarantees, or financing under this chapter.
`SEC. 3107. ISSUING AUTHORITY, DIRECT INVESTMENT FUND, EQUITY FUND, AND
RESERVES.
  `(a) ISSUING AUTHORITY-
  `(1) INSURANCE- The maximum contingent liability outstanding at any one
  time pursuant to insurance issued under section 3104(a) shall not exceed
  in the aggregate $7,500,000,000.
  `(2) GUARANTEES- Except as provided in Section 5201(f), commitments to
  guarantee loans are authorized for any fiscal year pursuant to section
  504(b) of the Federal Credit Reform Act of 1990.
  `(3) ACTION BY CONGRESS- The Congress, in considering the budget programs
  transmitted by the President for the Corporation, pursuant to section
  9103 of title 31, United States Code, may limit the obligations and
  contingent liabilities to be undertaken under subsections (a), (b), and
  (c) of section 3104.
  `(b) CREATION OF FUND FOR ACQUISITION OF EQUITY- The Corporation is
  authorized to establish a revolving fund to be available solely for the
  purposes specified in section 3104(f), to make a one-time transfer to
  the fund of $35,000,000 from its income and revenues, and to transfer to
  such fund other funds transferred to the Corporation for such purposes
  under the authority of section 5201 of this Act: Provided, however, That
  such funds may not be transferred out of the Corporation's liquidating
  account. The Corporation shall transfer to the fund in each fiscal year
  all amounts received by the Corporation during the preceding fiscal year as
  income on securities acquired under section 3104(f) and from the proceeds
  on the disposition of such securities. Purchases of, investments in, and
  other acquisitions of equity from the fund are authorized for any fiscal
  year only to the extend or in such amounts as are provided in advance
  in appropriations Acts or are transferred to the Corporation pursuant to
  section 5201 of this Act, or are transferred to the fund pursuant to the
  preceding sentence.
  `(c) INSURANCE RESERVE-
  `(1) MAINTENANCE AND PURPOSES- The Corporation shall maintain an insurance
  reserve. Such reserve shall be available for the discharge of liabilities,
  as provided in subsection (e), until such time as all such liabilities have
  been discharged or have expired or until such reserve has been expended
  in accordance with the provisions of this section.
  `(2) FUNDING- The insurance reserve shall consist of--
  `(A) any funds in the insurance reserve of the Corporation on the effective
  date of the International Corporation Act of 1991;
  `(B) amounts transferred to the reserve pursuant to this Act; and
  `(C) such sums as are appropriated pursuant to subsection (e) of this
  section for such purposes.
  `(d) ORDER OF PAYMENTS TO DISCHARGE LIABILITIES- Any payment made to
  discharge liabilities under investment insurance or reinsurance issued
  under section 3104, under similar predecessor guarantee authority, or
  under section 3105, shall be paid first out of the insurance reserve, as
  long as such reserve remains available, and thereafter out of funds made
  available pursuant to subsection (e) of this section. Any payments made
  to discharge liabilities under guarantees issued under section 3104(b)
  shall be paid in accordance with the Federal Credit Reform Act of 1990.
  `(e) AUTHORIZATION OF APPROPRIATIONS-
  `(1) AUTHORIZATION- Subject to paragraph (2), there are authorized to be
  appropriated to the Corporation, to remain available until expended, such
  amounts as may be necessary from time to time to replenish or increase
  the insurance reserve, to discharge the liabilities under insurance or
  reinsurance issued by the Corporation or to discharge obligations of the
  Corporation purchased by the Secretary of the Treasury pursuant to subsection
  (f).
  `(2) LIMITATION ON APPROPRIATIONS- No appropriation shall be made under
  paragraph (1) to augment the insurance reserve until the amount of funds
  in the insurance reserve is less than $25,000,000. Any appropriations to
  augment the insurance reserve shall then only be made to satisfy the full
  faith and credit provision of section 3109(c).
  `(f) ISSUANCE OF OBLIGATIONS- In order to discharge liabilities under
  investment insurance or reinsurance, the Corporation is authorized to
  issue from time to time for purchase by the Secretary of the Treasury its
  notes, debentures, bonds, or other obligations; except that the aggregate
  amount of such obligations outstanding at any one time may not exceed
  $100,000,000. Any such obligation shall be repaid to the Treasury within
  one year after the date of issue of such obligation. Any such obligation
  shall bear interest at a rate determined by the Secretary of the Treasury,
  taking into consideration the current average market yield on outstanding
  marketable obligations of the United States of comparable maturities during
  the month preceding the issuance of any obligation authorized by this
  subsection. The Secretary of the Treasury shall purchase any obligation
  of the Corporation issued under this subsection, and for such purchase the
  Secretary may use as a public debt transaction the proceeds of the sale of
  any securities issued under chapter 31 of title 31, United States Code. The
  purpose for which securities may be issued under chapter 31 of title 31,
  United States Code, shall include any such purchase.
`SEC. 3108. INCOME AND REVENUES.
  `In order to carry out the purposes of the Corporation, all revenues
  and income transferred to or earned by the Corporation, in relation to
  noncredit activities, from whatever source derived, shall be held by the
  Corporation and shall be available to carry out its purposes, including
  without limitation--
  `(1) payment of all expenses of the Corporation, including investment
  promotion expenses;
  `(2) transfers and additions to the insurance reserves, and such other
  funds or reserves as the Corporation may establish, at such time and in
  such amounts as the Board may determine, subject to the provisions of the
  Federal Credit Reform Act of 1990; and
  `(3) payment of dividends, on capital stock, which shall consist of and
  be paid from net earnings of the Corporation after payments, transfers,
  and additions under paragraphs (1) and (2).
`SEC. 3109. GENERAL PROVISIONS RELATING TO INSURANCE, GUARANTEE, AND
FINANCING PROGRAM.
  `(a) AGREEMENTS WITH COUNTRIES- Insurance, guarantees, and reinsurance
  issued under this chapter shall not cover investment made in connection
  with projects in any country or area unless the President of the United
  States has agreed with the government of such country or area to institute
  a program for such insurance, guarantees, or reinsurance.
  `(b) PROTECTION OF INTERESTS OF THE CORPORATION- The Corporation shall
  determine that suitable arrangements exist for protecting the interest of
  the Corporation in connection with any insurance, reinsurance, or guarantee
  issued under this chapter, including arrangements concerning ownership,
  use, and disposition of the currency, credits, assets, or investments on
  account of which payment under such insurance, guarantee, or reinsurance
  is to be made, and any right, title, claim, or cause of action existing
  in connection therewith.
  `(c) FULL FAITH AND CREDIT PLEDGED- All guarantees issued pursuant to
  predecessor guarantee authority, and all insurance, reinsurance, and
  guarantees issued pursuant to this chapter shall constitute obligations,
  in accordance with the terms of such insurance, reinsurance, or guarantees,
  or the United States of America, and the full faith and credit or the United
  States of America is hereby pledged for the full payment and performance
  of such obligations.
  `(d) FEES- (1) Fees may be charged for providing insurance, reinsurance,
  guarantees, financing, or services under this chapter in amounts to be
  determined by the Corporation. In the event fees charged for insurance,
  reinsurance, guarantees, financing, or services and for similar guarantees
  issued under predecessor guarantee authority are reduced, fees to be
  paid under existing contract for the same type of insurance, reinsurance,
  guarantees, financing, services and for similar guarantees issued under
  predecessor guarantee authority may be reduced.
  `(2) CREDIT TRANSACTION COSTS- For credit transactions covered by the
  provisions of the Federal Credit Reform Act of 1990, project-specific
  transaction costs relating to loan obligations or loan guarantee commitments,
  including but not limited to project-related travel and outside legal
  expenses, shall be considered cash flows from the Government resulting
  from direct loan obligations or loan guarantee commitments and shall be
  paid out of the appropriate financing account established pursuant to
  section 505(b) of such Act.
  `(3) NON-CREDIT TRANSACTION COSTS- Fees paid for the project-specific
  transaction costs and other direct costs associated with services provided
  to specific investors or potential investors pursuant to section 3104
  (other than those covered in subsection (d)(2) of this section), including
  financing, insurance, reinsurance, missions, seminars, conferences, and other
  pre-investment services, shall be available for obligation for the purposes
  for which they were collected notwithstanding any other provision of law.
  `(e) INSURANCE, GUARANTEES, AND REINSURANCE LIMITED TO 20 YEARS- No
  insurance, reinsurance, or guarantee of any equity investment under this
  chapter shall extend beyond twenty years from the date on which such
  insurance, reinsurance, or guarantee is issued.
  `(f) AMOUNT OF COMPENSATION PAID ON CLAIMS- Compensation for any insurance,
  reinsurance, or guarantee issued under this chapter shall not exceed the
  dollar value, as of the date of the investment, of the investment made in
  the project with the approval of the Corporation plus interest, earnings,
  or profits actually accrued on such investment to the extent provided by
  such insurance, reinsurance, or guarantee, except that the Corporation
  may provide that--
  `(1) appropriate adjustments in the insured dollar value may be made to
  reflect the replacement cost of project assets;
  `(2) compensation for a claim of loss under insurance of an equity investment
  may be computed on the basis of the net book value attributable to such
  equity investment on the date of loss; and
  `(3) compensation for loss due to business interruption may be computed
  on a basis to be determined by the Corporation which reflects amounts lost.
Notwithstanding the preceding sentence, the Corporation shall limit the amount
of direct insurance and reinsurance issued under section 3104 or 3105 so that
risk or loss as to at least 10 percent of the total investment of the insured
and its affiliates in the project is borne by the insured and such affiliates,
except that this limitation shall not apply to direct insurance or reinsurance
of loans by banks or other financial institutions to unrelated parties.
  `(g) LIMITATION WITH RESPECT TO FOREIGN CREDIT INSTITUTIONS- Insurance,
  guarantees, or reinsurance of a loan or equity investment of an eligible
  investor in a foreign bank, finance company, or other credit institution
  shall extend only to such loan or equity investment and not to any
  individual loan or equity investment made by such foreign bank, finance
  company, or other credit institution.
  `(h) SETTLEMENT AND ARBITRATION OF CLAIMS- Claims arising as a result
  or insurance, reinsurance, or guarantee operations under this chapter or
  under predecessor guarantee authority may be settled, and disputes arising
  as a result thereof may be arbitrated with the consent of the parties, on
  such terms and conditions as the Corporation may determine. Payment made
  pursuant to any such settlement, or as a result or an arbitration award,
  shall be final and conclusive notwithstanding any other provision of law.
  `(i) CONTRACTS PRESUMED TO COMPLY WITH ACT- Each guarantee contract executed
  by such officer or officers as may be designated by the Board shall be
  conclusively presumed to be issued in compliance with the requirements of
  this Act.
  `(j) Except for the provisions of this chapter, no other provision of this
  or any other law relating to the eligibility of countries for assistance
  under this Act shall be construed to prohibit the operation of any program
  authorized by this chapter.
`SEC. 3110. GENERAL PROVISIONS AND POWERS.
  `(a) PRINCIPAL OFFICE- The Corporation shall have its principal office
  in the District of Columbia and shall be deemed, for purposes of venue in
  civil actions, to be a resident of the District of Columbia.
  `(b) Audits-
  `(1) IN GENERAL- The Corporation shall be subject to the applicable
  provisions of chapter 91 of title 31, United States Code, except as
  otherwise provided in this chapter.
  `(2) INDEPENDENT AUDIT- An independent certified public accountant shall
  perform a financial and compliance audit of the financial statements of the
  Corporation every year, in accordance with generally accepted Government
  auditing standards for a financial and compliance audit. The independent
  certified public accountant shall report the results of such audit to the
  Board. The financial statements of the Corporation shall be presented in
  accordance with generally accepted accounting principles. These financial
  statements and the report of the accountant shall be included in a report
  which contains, to the extent applicable, the information identified in
  section 9106 of title 31, United States Code, and which the Corporation
  shall submit to the Congress not later than 6 1/2  months after the end
  of the last fiscal year covered by the audit.
  `(c) POWERS- To carry out the purposes of this chapter, the Corporation
  is authorized--
  `(1) to adopt and use a corporate seal, which shall be judicially noticed;
  `(2) to sue and be sued in its corporate name;
  `(3) to adopt, amend, and repeal by laws governing the conduct of its
  business and the performance of the powers and duties granted to or imposed
  upon it by law;
  `(4) to acquire, hold, or dispose of, upon such terms and conditions as
  the Corporation may determine, any property, real, personal, or mixed,
  tangible or intangible, or any interest therein;
  `(5) to invest funds derived from fees and other revenues in obligations
  of the United States and to use the proceeds, therefrom, including earnings
  and profits, as it considers appropriate;
  `(6) to indemnify directors, officers, employees, and agents of the
  Corporation for liabilities and expenses incurred in connection with their
  Corporation activities;
  `(7) to require bonds of officers, employees, and agents and to pay the
  premiums therefor;
  `(8) notwithstanding any other provision of law, to represent itself or
  to contract for representation in all legal and arbitral proceedings;
  `(9) to purchase, discount, rediscount, sell, and negotiate, with or
  without its endorsement or guarantee, and guarantee notes, participation
  certificates, and other evidence of indebtedness (except that the Corporation
  shall not issue its own securities, except participation certificates for
  the purpose of carrying out section 3101(c)(3) or participation certificates
  as evidence of indebtedness held by the Corporation in connection with
  settlement of claims under section 3109(h));
  `(10) to make and carry out such contracts and agreements as are necessary
  and advisable in the conduct of its business;
  `(11) to exercise any priority of the government of the United States
  in collecting debts from the estates of bankrupt, insolvent, or decedent
  parties;
  `(12) to determine the character of and the necessity for its obligations
  and expenditures, and the manner in which they shall be incurred, allowed,
  and paid, subject to provisions of law specifically applicable to Government
  corporations;
  `(13) to collect or compromise any obligations assigned to or held by
  the Corporation, including any legal or equitable rights accruing to the
  Corporation; and
  `(14) to take such actions as may be necessary or appropriate to carry
  out the powers of the Corporation.
  `(d) INSPECTOR GENERAL-
  `(1) AUTHORITY- The inspector general of the agency designated under
  section 5102--
  `(A) shall have full and independent authority to conduct audits,
  investigations, and inspections of all phases of the Corporation's
  programs and operations for the purpose of promoting economy, efficiency,
  and effectiveness, and detecting and preventing fraud and abuse; and
  `(B) shall conduct all security activities of the Corporation relating to
  personnel and the control of classified material.
  `(2) RELATION TO PRESIDENT OF CORPORATION- The inspector general shall report
  to and be under the general supervision of the President of the Corporation
  with respect to activities undertaken pursuant to this subsection, except
  that the President of the Corporation shall not prevent or prohibit the
  inspector general from initiating, carrying out, or completing any such
  activity in accordance with the duties, authorities, and responsibilities
  contained in the Inspector General Act of 1978 and any other applicable
  law or regulation.
  `(3) EXPENSES- The inspector general shall be reimbursed by the Corporation
  for all expenses incurred by the inspector general in connection with the
  inspector general's responsibilities under this subsection.
  `(4) INSPECTOR GENERAL ACT- For purposes of the Inspector General Act of
  1978, the Corporation shall continue to be considered a Federal entity
  and the President of the Corporation shall be considered the head of the
  Federal entity.
  `(5) SEMIANNUAL REPORT- The semiannual report required under section 5 of
  the Inspector General Act of 1978 shall include information relating to
  activities of the inspector general undertaken pursuant to this subsection.
  `(e) EXEMPTION FROM STATE AND LOCAL TAXATION- The Corporation (including
  its franchise, capital, reserves, surplus, advances, intangible property,
  and income) shall be exempt from all taxation at any time imposed by any
  State, the District of Columbia, or any county, municipality, or local
  taxing authority.
  `(f) CORPORATE OPERATIONAL GUIDELINES- The Corporation--
  `(1) shall establish and publish guidelines for its programs and operations
  consistent with the provisions of this chapter, which provisions shall be
  controlling with respect to the Corporation's programs and operations, and
  `(2) shall make such guidelines available to applicants for insurance,
  reinsurance, guarantees, financing, or other assistance provided by the
  Corporation.
`SEC. 3111. ANNUAL REPORT; MAINTENANCE OF INFORMATION.
  `(a) ANNUAL REPORT- After the end of each fiscal year, the President shall
  submit to the Congress a complete and detailed report of the Corporation's
  operations during such fiscal year. Such report shall include--
  `(1) an assessment, based upon the development impact profiles required
  by section 3106(a), of the economic and social development impact and
  benefits of the projects with respect to which such profiles are prepared,
  and of the extent to which the operations of the Corporation complement
  or are compatible with the development assistance programs of the United
  States and other donors; and
  `(2) a description of any project for which the Corporation refused
  to provide any insurance, reinsurance, guarantee, financing, or other
  financial support, on account of violations of human rights referred to
  in section 3106(e).
  `(b) PROJECTIONS OF EFFECTS ON EMPLOYMENT-
  `(1) IN GENERAL- Each annual report required by subsection (a) shall
  contain protections of the effects on employment in the United States
  of all projects for which, during the fiscal year covered by the report,
  the Corporation initially issued any insurance, reinsurance, or guarantee
  or provided financing. Each such report shall include projections of--
  `(A) the amount of United States exports to be generated by those projects,
  both during the startup phase and over a period of years;
  `(B) the final destination of the products to be produced as a result of
  those projects; and
  `(C) the impact such production will have on the production of similar
  products in the United States with regard to both domestic sales and exports.
  `(2) INFORMATION IN AGGREGATE FORM- The projections required by this
  subsection shall be based on an analysis of each of the projects described
  in paragraph (1). Such projections may, however, present information and
  analysis in aggregate form, but only if--
  `(A) those projects which are projected to have a positive effect on
  employment in the United States and those projects which are projected
  to have a negative effect on employment in the United States are grouped
  separately; and
  `(B) there is set forth for each such grouping the key characteristics
  of the projects within that grouping, including the number of projects in
  each economic sector, the countries in which the projects in each economic
  sector are located, and the projected level of the impact of the projects
  in each economic sector on employment in the United States and on United
  States trade.
  `(c) MAINTENANCE OF INFORMATION- The Corporation shall maintain as part
  of its records--
  `(1) all information collected in preparing the report required by section
  240A(c) of the Foreign Assistance Act of 1961 (as in effect before the
  enactment of the Overseas Private Investment Corporation Amendments Act
  of 1988), whether the information was collected by the Corporation itself
  or by a contractor; and
  `(2) a copy of the analysis of each project analyzed in preparing the
  projections required by subsection (b) of this section or the report
  required by section 240A(c) of the Foreign Assistance Act of 1961 (as in
  effect before the enactment of the Overseas Private Investment Corporation
  Amendments Act of 1988).
  `(d) PROGRAMS OF COOPERATION WITH PRIVATE INDUSTRY- Each annual report
  required by subsection (a) shall include an assessment of programs
  implemented by the Corporation under section 3105(a), including the following
  information, to the extent such information is available to the Corporation:
  `(1) The nature and dollar value of political risk insurance provided by
  private insurers in conjunction with the Corporation, which the Corporation
  was not permitted to provide under this chapter.
  `(2) The nature and dollar value of political risk insurance provided by
  private insurers in conjunction with the Corporation, which the Corporation
  was permitted to provide under this chapter.
  `(3) The manner in which such private insurers and the Corporation cooperated
  in recovery efforts and claims management.
  `(e) PROTECTION OF CERTAIN INFORMATION- Subsections (b) and (d) do not
  require the inclusion in any information submitted pursuant to those
  subsections of any information which would not be required to be made
  available to the public pursuant to section 552 of title 5, United States
  Code (relating to freedom of information).
`SEC. 3112. DEFINITIONS.
  `As used in this chapter, the following terms have the following meanings:
  `(1) BOARD- The term `Board' means the Board of Directors of the Overseas
  Private Investment Corporation.
  `(2) CORPORATION- The term `Corporation' means the Overseas Private
  Investment Corporation.
  `(3) ELIGIBLE INVESTOR- (A) The term `eligible investor' means--
  `(i) a United States citizen; and
  `(ii) a corporation, partnership, or other association, including a
  nonprofit association, which is more than 50 percent beneficially owned
  by United States citizens.
  `(B) For purposes of this chapter--
  `(i) in the case of insurance or a guarantee for any loan investment,
  a final determination of whether a person is an eligible investor may be
  made at the time the insurance or guarantee is issued; and
  `(ii) in the case of insurance or a guarantee for any other investment,
  an investor must be an eligible investor at the time a claim arises as
  well as the time the insurance or guarantee is issued.
  `(4) EXPROPRIATION- The term `expropriation' includes any abrogation,
  repudiation, or impairment by a foreign government of its own contract with
  an investor with respect to a project, where such abrogation, repudiation,
  or impairment is not caused by the investor's own fault or misconduct,
  and materially adversely affects the continued operation of the project.
  `(5) INVESTMENT- The term `investment' includes any contribution or
  commitment or funds, commodities, services, patents, processes, or
  techniques, in the form of--
  `(A) a loan or loans to an approved project,
  `(B) the purchase of a share of ownership in any such project,
  `(C) participation in royalties, earnings, or profits of any such project,
  and
  `(D) the furnishing of commodities or services pursuant to a lease or
  other contract.
  `(6) PREDECESSOR GUARANTEE AUTHORITY- The term `predecessor guarantee
  authority' means prior guarantee authorities (other than housing guarantee
  authorities) repealed by the Foreign Assistance Act of 1969, sections 202(b)
  and 413(b) of the Mutual Security Act of 1954, and section 111(b)(3) of
  the Economic Cooperation Act of 1948 (exclusive of authority relating to
  informational media guarantees).
`CHAPTER 2--TRADE AND DEVELOPMENT AGENCY
`SEC. 3121. PURPOSE.
  `The Trade and Development Agency shall be an agency of the United States
  under the foreign policy guidance of the Secretary of State. The purpose
  of the Trade and Development Agency is to promote United States private
  sector participation in development projects in developing and middle-income
  countries, in order to promote the goals set forth in section 1 of this Act.
`SEC. 3122. AUTHORITY TO PROVIDE ASSISTANCE.
  `(a) AUTHORITY- The Director of the Trade and Development Agency is
  authorized to work with foreign countries, including those in which the
  United States development programs have been concluded or those not
  receiving assistance under title I, to carry out the purpose of this
  chapter by providing funds for feasibility studies and other activities
  related to development projects which provide opportunities for the use
  of United States exports.
  `(b) USE OF FUNDS- Funds under this chapter may be used to provide support
  for the planning of, development of, management of, and procurement for,
  bilateral and multilateral development projects, including training
  activities undertaken in connection with a project, for the purpose of
  promoting the use of United States goods and services in such projects.
  `(c) INFORMATION DISSEMINATION-
  `(1) IN GENERAL- The Trade and Development Agency shall disseminate
  information about its project activities to the private sector.
  `(2) RELATIONSHIP AMONG AGENCIES- Federal departments, agencies, and the
  Trade and Development Agency are encouraged to cooperate in the effective
  provision of informational services to persons in the private sector
  concerning trade development and export promotion related to development
  projects.
  `(d) NONAPPLICABILITY OF OTHER PROVISIONS- Any funds used for purposes of
  this chapter may be used notwithstanding any other provision of law.
`SEC. 3123. DIRECTOR AND PERSONNEL.
  `(a) DIRECTOR- There shall be at the head of the Trade and Development
  Agency a Director who shall be appointed by the President, by and with
  the advice and consent of the Senate.
  `(b) OFFICERS AND EMPLOYEES-
  `(1) APPOINTMENT- The President may appoint such officers and employees
  of the Trade and Development Agency as the President considers appropriate.
  `(2) FUNCTIONS- The officers and employees appointed under this subsection
  shall have such functions as the Director may determine.
  `(3) APPOINTMENTS WITHOUT REGARD TO CERTAIN CIVIL SERVICE LAWS- Of the
  officers and employees appointed under this subsection, 2 may be appointed
  without regard to the provisions of title 5, United States Code, governing
  appointments in the competitive service, and may be compensated without
  regard to the provisions of chapter 51 or subchapter III of chapter 53 of
  such title.
  `(4) REINSTATEMENT RIGHTS- Under such regulations as the President may
  prescribe, any individual appointed under paragraph (3) may be entitled,
  upon removal (except for cause) from the position to which the appointment
  was made, to reinstatement to the position occupied by that individual at
  the time of appointment or to a position of comparable grade and pay.
`SEC. 3124. ANNUAL REPORT.
  `The President shall, not later than December 31 of each year, submit to
  the Committee on Foreign Affairs of the House of Representatives and the
  Committee on Foreign Relations of the Senate a report on the activities
  of the Trade and Development Agency in the preceding fiscal year.
`SEC. 3125. INSPECTOR GENERAL.
  `(a) AUTHORITY- The inspector general of the agency designated under
  section 5102--
  `(1) shall have full and independent authority to conduct audits,
  investigations, and inspections of all phases of the program and operations
  of the Trade and Development Agency for the purpose of promoting economy,
  efficiency, and effectiveness, and detecting and preventing fraud and
  abuse; and
  `(2) shall conduct all security activities of the Trade and Development
  Agency relating to personnel and the control of classified material.
  `(b) RELATION TO DIRECTOR OF THE TRADE AND DEVELOPMENT AGENCY- The
  inspector general shall report to and be under the general supervision of
  the Director of the Trade and Development Agency with respect to activities
  undertaken pursuant to this section, except that the Director shall not
  prevent or prohibit the inspector general from initiating, carrying out, or
  completing any such activity in accordance with the duties, authorities,
  and responsibilities contained in the Inspector General Act of 1978,
  and any other applicable laws and regulations.
  `(c) INSPECTOR GENERAL ACT- For purposes of the Inspector General Act of
  1978, the Trade and Development Agency shall continue to be considered a
  Federal entity and the Director of the Trade and Development Agency shall
  be considered the head of the Federal entity.
  `(d) SEMIANNUAL REPORT- The semiannual report required under section 5 of
  the Inspector General Act of 1978 shall include information relating to
  activities of the inspector general undertaken pursuant to this section.
`SEC. 3126. FUNDING.
  `There are authorized to be appropriated for purposes of this chapter,
  in addition to funds otherwise available for such purposes, $35,000,000
  for fiscal year 1992.'.
TITLE IV--SPECIAL AUTHORITIES, RESTRICTIONS ON ASSISTANCE, AND REPORTS
SEC. 401. CONSOLIDATION AND REVISION OF SPECIAL AUTHORITIES, RESTRICTIONS,
AND REPORTING REQUIREMENTS
  The Foreign Assistance Act of 1961 is amended by striking out existing
  part III and by adding the following new title IV after new title III
  (as added by title III of this Act):
`TITLE IV--SPECIAL AUTHORITIES, RESTRICTIONS ON ASSISTANCE, AND REPORTS
`CHAPTER 1--SPECIAL AUTHORITIES
`SEC. 4101. AUTHORITY TO TRANSFER BETWEEN ACCOUNTS.
  `(a) GENERAL TRANSFER AUTHORITY- Whenever the President determines it to
  be necessary for the purposes of this Act, not to exceed 10 percent of
  the funds made available to carry out any provision of this Act--
  `(1) may be transferred to, and consolidated with, the funds in the account
  or fund available to carry out any other provision of this Act; and
  `(2) may be used for any of the purposes for which funds in that account
  or fund may be used.
  `(b) LIMITATION ON AMOUNT OF INCREASE IN AN ACCOUNT- The total amount in the
  account or fund for the benefit of which a transfer is made under subsection
  (a) during any fiscal year may not be increased by more than 20 percent
  of the amount of funds otherwise made available for such account or fund.
  `(c) NOTIFICATION TO CONGRESS- The authority of subsection (a) may be
  exercised only if the Committee on Foreign Affairs and the Committee on
  Appropriations of the House of Representatives and the Committee on Foreign
  Relations and the Committee on Appropriations of the Senate are notified
  in advance of the exercise of that authority.
`SEC. 4102. SPECIAL WAIVER AUTHORITY.
  `(a) FOREIGN ASSISTANCE ACT AND DEFENSE TRADE AND EXPORT CONTROL ACT- The
  President may authorize the taking of any action (or the refraining from
  the taking of any action) under this Act or the Defense Trade and Export
  Control Act without regard to any of the provisions described in subsection
  (c) if he determines--
  `(1) in cases under chapters 2 or 5 of title II of this Act, or under the
  Defense Trade and Export Control Act, that to do so is essential to the
  national interests of the United States; and
  `(2) in any other cases under such Acts, that to do so is important to
  the national interests of the United States.
  `(b) OTHER ACTS- The President may authorize the taking of any action (or
  the refraining from the taking of any action) under any other Act without
  regard to the provisions described in paragraphs (1) and (2) of subsection
  (c), or of any annual (or periodic) foreign assistance authorization of
  appropriations Acts, if the President determines that to do so is important
  to the national interest of the United States.
  `(c) LAWS WHICH MAY BE WAIVED- The provisions referred to in subsections
  (a) and (b) are--
  `(1) the provisions of this Act,
  `(2) the provisions of the Defense Trade and Export Control Act,
  `(3) any other provisions of law that restrict the authority to provide
  assistance, make sales or leases, or take other actions (or refrain from
  taking actions) under the Acts in paragraphs (1) and (2), and
  `(4) any law relating to receipts and credits accruing to the United States.
  `(d) EXTRAORDINARY CIRCUMSTANCES- The President is authorized to use
  amounts not to exceed $50,000,000 of the funds made available under this
  Act during any fiscal year pursuant to the President's certification
  that it is inadvisable to specify the nature of the use of such funds,
  which certification shall be deemed to be a sufficient voucher for such
  amounts. The President shall fully inform the chairman and ranking minority
  member of the Committee on Foreign Affairs of the House of Representatives
  and the chairman and ranking minority member of the Committee on Foreign
  Relations of the Senate of each use of funds under this subsection prior
  to the use of such funds.
  `(e) CONSULTATION WITH CONGRESS- Before exercising the authority granted in
  this section, the President shall consult with, and shall provide a written
  policy justification to, the Committee on Foreign Affairs and the Committee
  on Appropriations of the House of Representatives and the Committee on
  Foreign Relations and the Committee on Appropriations of the Senate.
  `(f) NOTIFICATION TO CONGRESS- A determination under subsection (a) or (b)
  shall be effective only if the President notifies the Speaker of the House
  of Representatives and the chairman of the Committee on Foreign Relations
  of the Senate, in writing, of that determination.
  `(1) IN GENERAL- The authority of this section may not be used in any
  fiscal year to authorize--
  `(A) more than $1,000,000,000 in sales or leases to be made under the
  Defense Trade and Export Control Act;
  `(B) the use of more than $500,000,000 of funds made available for use
  under this Act; and
  `(C) the use of more than $100,000,000 of foreign currencies accruing
  under this Act or any other law.
  `(2) FINANCED MILITARY SALES- If the authority of this section is used both
  to authorize a sale or lease under the Defense Trade and Export Control
  Act and to authorize funds to be used under chapter 2 of title II of this
  Act with respect to the financing of that sale or lease, then the use of
  the funds shall be counted against the limitation in paragraph (1)(B)
  and the portion, if any, of the sale or lease which is not so financed
  shall be counted against the limitation in paragraph (1)(A).
  `(3) LEASES- For purposes of paragraph (1)(A) the value of the defense
  articles authorized to be leased (in terms of their replacement cost less
  any depreciation in their value) shall be counted against the limitation
  in that paragraph.
  `(4) COUNTRY LIMITS- (A) Not more than $100,000,000 of the $500,000,000
  limitation provided in paragraph (1)(B) may be allocated to any one country
  in any fiscal year unless that country is a victim of active aggression.
  `(B) Not more than $500,000,000 of the aggregate limitation of $1,500,000,000
  provided in paragraphs (1)(A) and (1)(B) may be allocated to any one
  country in any fiscal year.
`SEC. 4103. UNANTICIPATED CONTINGENCIES.
  `(a) AUTHORITY- Notwithstanding any other provision of law, the President is
  authorized to use funds made available to carry out any provision of this
  Act (other than the funds described in paragraph (2)) in order to furnish,
  for any unanticipated contingency, assistance authorized by any provision
  of this Act (other than chapters 2 and 5 of title II) in accordance with
  the provisions applicable to the furnishing of such assistance.
  `(b) ANNUAL CEILING- The authority of this section may not be used to
  authorize the use of more than $50,000,000 during any fiscal year.
  `(c) REPORT TO CONGRESS- The President shall report promptly to the Speaker
  of the House of Representatives and to the Committee on Foreign Relations
  and the Committee on Appropriations of the Senate each time the authority
  of this section is exercised.
  `(d) PROHIBITION ON GIFTS- Funds used under the authority of this section may
  not be used to pay for any gifts to any official of any foreign government.
`SEC. 4104. EMERGENCY ASSISTANCE.
  `(a) AUTHORITY- In any fiscal year, up to $75,000,000 of the funds
  appropriated to carry out chapter 3 of title I, and up to $75,000,000
  of the funds appropriated to carry out chapter 2 of title II, may be
  made available for emergency use under such respective provisions when
  the national interests of the United States urgently require support to
  promote economic, political, or military stability.
  `(b) SOURCE OF FUNDS- Notwithstanding any provision of an Act authorizing
  or appropriating funds for use under this Act that earmarks funds available
  to carry out chapter 3 of title I or chapter 2 of title II for a specific
  country, organization, or purpose, up to 5 percent of each amount so
  earmarked may be used to carry out this section.
`SEC. 4105. TERMINATION EXPENSES.
  `(a) IN GENERAL- Funds made available under this Act shall remain available
  for obligation for a period not to exceed eight months from the date of
  any termination of assistance under this Act for the necessary expenses of
  winding up programs related to such termination and may remain available
  until expended. Funds obligated under the authority of this Act prior to
  the effective date of the termination of assistance may remain available
  for expenditure for the necessary expenses of winding up programs related
  to such termination notwithstanding any provision of law restricting the
  expenditure of funds. In order to ensure the effectiveness of assistance
  under this Act, such expenses for orderly termination of programs may
  include the obligation and expenditure of funds to complete the training
  or studies outside their countries of origin of students whose course of
  study or training program began before assistance was terminated.
  `(b) LIABILITY TO CONTRACTORS- For the purpose of making an equitable
  settlement of termination claims under extraordinary contractual relief
  standards, the President is authorized to adopt as a contract or other
  obligation of the  United States  Government, and assume (in whole or
  in part) any liabilities arising thereunder, any contract with a  United
  States or third-country contractor that had been funded with assistance
  under this Act prior to the termination of assistance.
  `(c) TERMINATION EXPENSES- Amounts certified as having been obligated
  for assistance subsequently terminated by the President, or pursuant
  to any provision of law, shall continue to remain available and may be
  reobligated to meet any necessary expenses arising from the termination
  of such assistance.
  `(d) GUARANTY PROGRAMS- Provisions of this or any other Act requiring the
  termination of assistance under this Act shall not be construed to require
  the termination of guarantee commitments under title I of this Act that were
  entered into prior to the effective date of the termination of assistance.
  `(e) RELATION TO OTHER PROVISIONS- Unless specifically made inapplicable
  by another provision of law, the provisions of this section shall be
  applicable to the termination of assistance pursuant to any provision of law.
`SEC. 4106. EXEMPTION OF ASSISTANCE THROUGH NONGOVERNMENTAL ORGANIZATIONS
FROM RESTRICTIONS.
  `(a) RESTRICTIONS NOT APPLICABLE- Subject to subsection (c), restrictions
  contained in this or any other Act with respect to assistance for a country
  shall not be construed to restrict assistance under title I in support of
  programs of nongovernmental organizations.
  `(b) NATIONAL INTEREST CRITERIA- The President shall take into consideration,
  in any case in which a restriction on assistance would be applicable but
  for this section, whether assistance for programs of  nongovernmental
  organizations is in the national interest of the  United States.
  `(c) NOTICE TO CONGRESS- Whenever the authority of this section is used to
  furnish assistance for a  program of a   nongovernmental organization, the
  President shall notify the Committee on Foreign Affairs and the Committee
  on Appropriations of the House of Representatives and the Committee on
  Foreign Relations and the Committee on Appropriations of the Senate. Such
  notification shall describe the program assisted, the assistance provided,
  and the reasons for furnishing such assistance.
`SEC. 4107. EXEMPTION OF TRAINING ACTIVITIES FROM PROHIBITIONS.
  `Provisions of this or any other Act shall not be construed to prohibit
  assistance for any training activity funded under this Act for a country
  as long as that country has a democratically elected government and
  the assistance is otherwise consistent with section 4201(a)(1), section
  4201(a)(2), section 4201(a)(7), and section 4202.
`SEC. 4108. NONAPPLICABILITY TO MILITARY ASSISTANCE OF CERTAIN NEUTRALITY
ACT PROVISIONS.
  `The functions authorized under this Act may be performed without regard to
  such provisions as the President may specify of the Neutrality Act of 1939
  (22 U.S.C. 441 and following).
`CHAPTER 2--RESTRICTIONS ON ASSISTANCE
`SEC. 4201. INELIGIBLE COUNTRIES.
  `(a) RESTRICTIONS- Except as provided in subsection (b), assistance under
  this Act may not be furnished to the government of a country that is:
  `(1) COMMUNIST COUNTRIES- A Communist country, as designated under subsection
  (d).
  `(2) HUMAN RIGHTS VIOLATORS- A country described in subsection (e).
  `(3) EXPROPRIATION OF UNITED STATES PROPERTY- A country whose government--
  `(A) has--
  `(i) expropriated the property of any United States person,
  `(ii) repudiated or nullified any contract with any United States person, or
  `(iii) taken any other action (such as discriminatory taxes or other
  exactions) which has the effect of seizing ownership or control of the
  property of any United States person, and
  `(B) has not within a reasonable period of time provided adequate and
  effective compensation and is not engaged in good faith efforts to negotiate
  a settlement if the United States person has exhausted host country legal
  and other formal remedies.
  `(4) MILITARY COUPS- A country whose duly-elected Head of Government is
  disposed by military coup or decree unless subsequent to the military coup
  or decree a democratically elected government has taken office.
  `(5) TERRORIST COUNTRIES- A country whose government the President determines
  repeatedly provides support for acts of international terrorism.
  `(6) NUCLEAR NONPROLIFERATION- A country described in section 4206.
  `(7) MAJOR ILLICIT DRUG PRODUCING OR MAJOR DRUG TRANSIT COUNTRIES- A
  country described in section 4207.
  `(b) EXCEPTIONS-
  `(1) IN GENERAL- Funds may be obligated and expended for assistance
  restricted by subsection (a), or any similar provision of law, under any
  of the following circumstances:
  `(A) NATIONAL INTEREST- The President determines that the furnishing of
  such assistance is important to the national interest of the United States.
  `(B) ALLEVIATING SUFFERING RESULTING FROM A DISASTER- The assistance is for
  the alleviation of suffering resulting from a natural or manmade disaster.
  `(C) DIRECTLY BENEFITING THE NEEDY- The assistance will directly benefit
  the needy people in the country.
  `(D) PROMOTING HUMAN RIGHTS AND DEMOCRACY- The assistance will be furnished
  through nongovernmental organizations to directly promote increased respect
  for internationally recognized human rights and the development of democracy.
  `(2) LIMITATIONS ON USE OF NATIONAL INTEREST WAIVER- The authority
  of paragraph (1)(A) may be exercised with respect to the restrictions
  contained in subsection (a)(6) only if the President also determines that
  the furnishing of such assistance will further United States nonproliferation
  objectives.
  `(c) REPORT TO CONGRESS- Assistance restricted by subsection (a) may
  not be provided under subsection (b) until the President has submitted
  to the Speaker of the House of Representatives and the chairman of the
  Committee on Foreign Relations of the Senate, a report with respect to such
  assistance. Any such report shall include a detailed explanation of the
  assistance to be provided, including the estimated dollar amount of such
  assistance, and an explanation of how the assistance meets the criteria
  specified in subsection (b).
  `(d) Communist Country List-
  `(1) ESTABLISHMENT- The President shall designate those countries that
  are communist countries for purposes of subsection (a)(1).
  `(2) PUBLICATION OF LIST- The initial list of countries designated pursuant
  to this subsection shall be published in the Federal Register and shall
  be provided to the Congress. Thereafter, any additions to or deletions
  from such list shall be similarly published and provided.
  `(3) REMOVAL OF COUNTRIES FROM THE LIST; EXEMPTIONS- The President may
  remove a country from the communist country list established pursuant
  to this section, or may exempt a listed country from the application of
  subsection (a)(1) or other provisions of law that reference subsection
  (a)(1), if the President promptly reports such removal or exemption to the
  Speaker of the House of Representatives and the chairman of the Committee
  on Foreign Relations of the Senate.
  `(e) Human Rights Violators-
  `(1) INELIGIBILITY- Subsection (a)(2) shall apply to any country the
  government of which engages in a consistent pattern of gross violations
  of internationally recognized human rights.
  `(2) MATTERS TO BE CONSIDERED- In implementing subsection (a)(2),
  consideration shall be given to the following:
  `(A) The relevant findings of appropriate international organizations and
  nongovernmental organizations.
  `(B) The extent of cooperation by the government in question in permitting
  an unimpeded investigation by indigenous nongovernmental organizations,
  other nongovernmental organizations, and international organizations (such
  as the International Committee of the Red Cross), of alleged violations
  of internationally recognized human rights.
  `(C) Specific actions that have been taken by the President or the Congress
  relating to the human rights practices of the government in question.
  `(D) The likely effect that a determination of ineligibility under this
  subsection is expected to have on the human rights process of the country
  concerned.
  `(f) TERRORIST COUNTRIES- The President shall promptly report to the Speaker
  of the House of Representatives and the chairman of the Committee on Foreign
  Relations of the Senate the rescission of a determination that the government
  of a country repeatedly provides support for acts of international terrorism.
  `(g) Related Restrictions on Assistance-
  `(1) HUMAN RIGHTS VIOLATORS- Subsection (a)(2) shall be deemed to prohibit,
  in addition to the furnishing of assistance under this Act--
  `(A) sales of defense articles, defense services, or design and construction
  services under the Defense Trade and Export Control Act;
  `(B) licenses under section 38 of the Defense Trade and Export Control
  Act with respect to the export of defense articles or defense services to
  or for the armed forces, police, intelligence, or other internal security
  forces of a foreign country; and
  `(C) licenses required under the Export Administration Act of 1979 for
  the export of crime control and detection instruments and equipment.
  `(2) TERRORIST COUNTRIES- Subsection (a)(5) shall be deemed to prohibit,
  in addition to the furnishing of assistance under this Act, the furnishing
  of assistance under the Agricultural Trade Development and Assistance Act
  of 1954 and the Peace Corps Act, and the provision of loans, guaranties,
  and insurance under the Export-Import Bank Act of 1945.
  `(3) Major illicit drug producing and major drug transit countries-
  `(A) Subsection (a)(7) shall be deemed to prohibit, in addition to the
  furnishing of assistance under this Act, (i) sales under the Defense Trade
  and Export Control Act, (ii) the provision of agricultural commodities other
  than food under the Agricultural Trade Development and Assistance Act of
  1954, and (iii) loans, guarantees and insurance under the Export-Import
  Bank Act of 1945.
  `(B) Notwithstanding subparagraph (A), subsection (a)(7) shall not
  be deemed to prohibit (i) assistance under chapter 4 of title I; (ii)
  disaster relief assistance, including any assistance under chapter 6 of
  title I; (iii) assistance that involves the provision of food (including
  monetization of food) or medicine; (iv) assistance for refugees; and (v)
  assistance for narcotics education and awareness activities under title I.
  `(C) With respect to any country for which assistance is prohibited under
  section (a)(7), the President should instruct the United States Executive
  Director of the International Bank for Reconstruction and Development,
  the United States Executive Director of the International Development
  Association, the United States Executive Director of the Inter-American
  Development Bank, and the United States Executive Director of the Asian
  Development Bank to vote, during the period in which assistance is prohibited
  under subsection (a)(7), against any loan or other utilization of the funds
  of their respective institution to or for any major illicit drug producing
  country or major drug-transit country, except as provided in subsection (b).
`SEC. 4202. POLICE TRAINING.
  `(a) PROHIBITION- None of the funds made available to carry out this Act,
  and none of the local currencies generated under this Act, shall be used
  to provide training or advice, or provide any financial support for law
  enforcement functions of police, prisons, or other law enforcement forces
  for any foreign government or any program of internal intelligence or
  surveillance on behalf of any foreign government within the United States
  or abroad.
  `(b) EXCEPTIONS- Subsection (a) of this section shall not apply with
  respect to--
  `(1) assistance provided for counter-narcotics purposes, including narcotics
  control assistance under chapter 4 of title I;
  `(2) assistance, including training, in maritime law enforcement and other
  maritime skills;
  `(3) assistance for a country which has a longstanding democratic tradition,
  does not have standing armed forces, and does not engage in a consistent
  pattern of gross violations of internationally recognized human rights;
  `(4) assistance in protecting and maintaining wildlife habitats and in
  developing sound wildlife management and plant conservation programs;
  `(5) assistance provided under chapter 7 of title II;
  `(6) with respect to assistance provided for police forces in connection
  with their participation in the regional security system of the Eastern
  Caribbean states; or
  `(7) such other assistance as the President determines to be appropriate.
`SEC. 4203. COUNTRIES IN ARREARS ON ASSISTANCE REPAYMENTS.
  `Assistance may not be furnished under this Act to the government of any
  country which is more than 1 year in arrears to the United States Government
  on any payment of interest or principal on any loan made or credit extended
  under this Act or under the former authorities of section 23 or section
  24 of the Arms Export Control Act, unless the President determines that
  assistance to such government is in the national interest and notifies the
  Speaker of the House of Representatives and the Chairman of the Committee
  on Foreign Relations of the Senate of such determination.
`SEC. 4204.  FAMILY PLANNING ACTIVITIES.
  `(a) ABORTIONS AND INVOLUNTARY STERILIZATIONS- Funds made available to
  carry out title I may not be--
  `(1) used to pay for the performance of abortions as a method of family
  planning or to motivate or coerce any person to practice abortions;
  `(2) used to pay for the performance of involuntary sterilizations as a
  method of family planning or to coerce or provide any financial incentive
  to any person to undergo sterilizations;
  `(3) used to pay for any biomedical research which relates, in whole or
  in part, to methods of, or the performance of, abortions or involuntary
  sterilizations as a means of family planning;
  `(4) made available to any organization or program which (as determined by
  the President) supports, or participates in the management of, a program
  of coercive abortion or involuntary sterilization; or
  `(5) made available to any foreign nongovernmental organization which
  performs or actively promotes abortion as a method of family planning.
  `(b) REFERRAL- In order to reduce reliance on abortion in developing
  countries, funds allocated under provisions of title I for voluntary family
  planning projects shall be available only for projects which offer, either
  directly or through referral to or information about access to, a broad range
  of family planning methods and services. In using such funds to award grants
  for natural family planning, no applicant shall be discriminated against
  because of such applicant's religious or conscientious commitment to offer
  only natural family planning; and, additionally, all such applicants shall
  comply with the requirements of the first sentence of this subsection.
`SEC. 4205. COMPETITION WITH UNITED STATES EXPORTS.
  `In determining whether to provide assistance under title I of this Act,
  the President should take into consideration whether such assistance
  would be furnished for direct support for any project or activity that is
  specifically designed to increase exports of any agricultural, textile,
  or apparel commodity from a developing country where such exports--
  `(1) would be in direct competition with United States exports, and
  `(2) can reasonably be expected to cause substantial injury to United
  States exporters of the same or substantially similar commodity.
`SEC. 4206. NUCLEAR NONPROLIFERATION.
  `Section 4201(a)(6) shall apply to--
  `(a) a country that, on or after the date of enactment of the International
  Security Assistance Act of 1977, delivers nuclear enrichment equipment,
  materials, or technology to a nonnuclear weapon state or, if a nonnuclear
  weapon state, receives such equipment, materials, or technology from any
  other country, unless before such delivery--
  `(1) the supplying country and receiving country have reached agreement
  to place all such equipment, materials, or technology, upon delivery,
  under multilateral auspices and management when available; and
  `(2) the recipient country has entered into an agreement with the
  International Atomic Energy Agency to place all such equipment, materials,
  technology, and all nuclear fuel and facilities in such country under the
  safeguards system of such Agency;
  `(b)  a country that--
  `(1) on or after the date of enactment of the International Security
  Assistance Act of 1977, delivers nuclear reprocessing equipment, materials,
  or technology to a nonnuclear weapon state or, if a nonnuclear weapon
  state, receives such equipment, materials, or technology from any other
  country (except for the transfer of reprocessing technology associated
  with the investigation, under international evaluation programs in which
  the United States participates, of technologies which are alternatives to
  pure plutonium reprocessing); or
  `(2) is a nonnuclear weapon state which, on or after the date of enactment
  of the International Security and Development Corporation Act of 1985,
  exports illegally or attempts to export illegally from the United States
  any material, equipment, or technology which would contribute significantly
  to the ability of such country to manufacture a nuclear explosive device,
  if the President determines that the material, equipment, or technology
  was to be used by such country in the manufacture of a nuclear explosive
  device; for purposes of this subparagraph, an export or attempted export
  by a person who is an agent of, or is otherwise acting on behalf of or
  in the interests of, a country shall be considered to be an export or
  attempted export by that country; or
  `(c)  a country that, on or after the date of enactment of the International
  Security Assistance Act of 1977--
  `(1) transfers a nuclear explosive device to a nonnuclear weapon state, or
  `(2) is a nonnuclear weapon state and either--
  `(A) receives a nuclear explosive device, or
  `(B) detonates a nuclear explosive device.
`SEC. 4207. MAJOR ILLICIT DRUG PRODUCING AND DRUG TRANSIT COUNTRIES.
  `(a) APPLICATION OF RESTRICTION- Section 4201(a)(7) shall apply to any major
  illicit drug producing country and any major drug-transit country if the
  President determines, at the time of the submission of the report required
  by section 1406, that during the previous fiscal year the country has not
  cooperated with the United States, and has otherwise not taken adequate
  steps to control the illicit cultivation, production, and smuggling of,
  trafficking in, and abuse of narcotic and psychotropic drugs. The President
  may rescind such a determination, and section 4201(a)(7) shall cease
  to apply, if the President subsequently determines that the country has
  resumed cooperating with the United States, or otherwise has taken adequate
  steps to control the illicit cultivation, production, and smuggling of,
  trafficking in, and abuse of narcotic and psychotropic drugs.
  `(b) In implementing subsection (a), the President should consider the
  extent to which the country has--
  `(1) accomplished the goals described in an applicable bilateral narcotics
  agreement with the United States or a multilateral agreement;
  `(2) investigated and immobilized major organizations involved in the
  production, processing, or distribution of narcotics and dangerous drugs;
  `(3) achieved significant increases in seizures of the proceeds and
  instrumentalities of the illicit drug trade;
  `(4) achieved significant reductions, where applicable, in the net production
  of illicit narcotic crops through forced or voluntary eradication efforts;
  `(5) prevented and punished the laundering in that country of drug-related
  monies;
  `(6) prevented and punished public corruption that facilitates the
  production, processing, or shipment of narcotic and psychotropic drugs
  and other controlled substances, or that discourages the investigation or
  prosecution of such acts;
  `(7) processed expeditiously United States and other extradition requests
  related to narcotics trafficking;
  `(8) increased public awareness of the heinous nature of drug abuse and
  reduced the demand and the consumption of narcotics and dangerous drugs;
  `(9) if it is a producer of licit opium, taken steps to prevent significant
  diversion of its licit cultivation and production into the illicit market, to
  maintain production of stockpiles at levels no higher than those consistent
  with licit market demands, and to prevent illicit cultivation and production.
`SEC. 4208. ASSISTANCE FOR ELECTIONS.
  `Funds made available for economic assistance under title I that are used
  to enhance the independence and performance of electoral processes may
  not be used for the purpose of influencing the outcome of any election in
  any country.
`SEC. 4209. DUTIES OF A NONCOMBATANT NATURE.
  `(a) LIMITATION- Members of the Armed Forces assigned or detailed to
  provide defense services under chapter 2 of title II, provide military
  education and training under chapter 5 of title II, or perform functions
  under chapter 4 of title II, may not perform duties of a combatant nature,
  including any duty related to training and advising that may engage United
  States Armed Forces personnel in combat activities, outside the United
  States in connection with the performance of those defense services.
  `(b) EXCEPTION- Subsection (a) shall not apply if the President determines,
  and reports to the Congress, that its application would not be in the
  national interest of the United States.
`CHAPTER 3--REPORTS AND NOTIFICATIONS TO CONGRESS
`SEC. 4301. CONGRESSIONAL PRESENTATION DOCUMENTS FOR ECONOMIC ASSISTANCE.
  `(a) REQUIREMENT FOR SUBMISSION- The President shall prepare, and submit
  to the Congress in a timely manner, annual congressional presentation
  documents for economic assistance programs under title I.
  `(b) MATERIALS FOR DEVELOPMENT AND ECONOMIC SUPPORT ASSISTANCE- For
  assistance under chapters 2 and 3 the documents submitted pursuant to
  subsection (a) shall include the following:
  `(1) The rationale for the allocation of assistance to each country,
  regional program, or centrally funded program. In the case of economic
  support assistance, this rationale shall include a justification for the
  provision of economic support assistance and for the particular use of
  that assistance.
  `(2) A brief description of each country program, regional program, and
  centrally funded program, including--
  `(A) in the case of development assistance, a discussion of how each program
  supports, as appropriate, the goals set forth in section 1 of this Act; and
  `(B) in the case of economic support assistance, a discussion of the extent
  to which each program supports the goals set forth in section 1.
  `(3) A description of new activities to be undertaken in the coming
  fiscal year.
  `(c) OTHER TITLE I PROGRAMS- The documents submitted pursuant to subsection
  (a) shall include for each economic assistance program under title I
  (other than those programs specified in subsection (b)--
  `(1) a summary of program activities for the previous year; and
  `(2) a description of activities anticipated in the current fiscal year
  and the coming fiscal year.
`SEC. 4302. HUMAN RIGHTS POLICY AND REPORTS.
  `(a) PROMOTION OF HUMAN RIGHTS- It is the sense of the Congress that the
  United States should, in accordance with its international obligations
  as set forth in the Charter of the United Nations and in keeping with the
  constitutional heritage and traditions of the United States, promote and
  encourage increased respect for human rights and fundamental freedoms
  throughout the world without distinction as to race, sex, language,
  or religion.
  `(b) CONDUCT OF ASSISTANCE AND MILITARY SALES PROGRAMS- In furtherance of
  subsection (a), the President should formulate and conduct United States
  assistance and military sales programs in a manner which will--
  `(1) promote and advance human rights;
  `(2) strengthen a relationship between civilian and military sectors
  appropriate to a democratic system of government; and
  `(3) avoid identification of the United States, through these programs,
  with governments which deny to their people internationally recognized
  human rights and fundamental freedoms in violation of international law
  or in contravention of the policy of the United States as expressed in
  this section or otherwise.
  `(c) MATTERS TO BE CONSIDERED- In carrying out subsection (b) and in
  preparing the annual reports required by subsection (d), consideration
  should be given to the following:
  `(1) The relevant findings of appropriate international organizations and
  nongovernmental organizations.
  `(2) The extent of cooperation by the government in question in permitting
  an unimpeded investigation by indigenous nongovernmental organizations,
  other nongovernmental organizations, and international organizations (such
  as the International Committee of the Red Cross), of alleged violations
  of internationally recognized human rights.
  `(d) ANNUAL HUMAN RIGHTS REPORT- In furtherance of subsections (a) and (b),
  the President shall transmit to the Congress, not later than February 28
  each year, a full and complete report with respect to practices regarding
  the observance of and respect for internationally recognized human rights
  in every foreign country that is a member of the United Nations. Wherever
  appropriate, such reports shall include information on practices regarding
  coercion in population control, including coerced abortion and involuntary
  sterilization.
  `(e) INFORMATION TO BE PROVIDED- Each annual report under subsection (d),
  shall include--
  `(1) information about observance of and respect for human rights and
  fundamental freedom in the country in question, and
  `(2) a detailed description of practices by the recipient government
  with respect to human rights and fundamental freedom, including where
  appropriate information provided by organizations, including nongovernmental
  organizations.
`SEC. 4303. ANNUAL ALLOCATION REPORT.
  `(a) REPORT ON ALLOCATIONS OF ASSISTANCE- Not later than thirty days after
  the enactment of any law appropriating funds to carry out any provision
  of this Act, the President shall notify the Congress of--
  `(1) each foreign country and international organization to which the United
  States Government intends to provide any portion of the funds under such
  law; and
  `(2) the amount of funds under that law, by category of assistance, that
  the United States Government intends to provide to each such country
  or organization.
  `(b) EXCEPTIONS- Subsection (a) does not apply with respect to--
  `(1) funds appropriated under section 1801 or section 1802 for operating
  expenses of the administering agency for title I; or
  `(2) any law making continuing appropriations.
`SEC. 4304. NOTIFICATION OF PROGRAM CHANGES.
  `(a) INCREASED  ASSISTANCE AND NEW PROGRAMS- Unless the Committee on
  Foreign Affairs and the Committee on Appropriations of the House of
  Representatives and the Committee on Foreign Relations and the Committee
  on Appropriations of the Senate are notified at least fifteen days in
  advance, funds appropriated for a fiscal year to carry out this Act may
  not be obligated for the following:
  `(1) INCREASE IN ASSISTANCE LEVEL- Any assistance under any provision of
  this Act--
  `(A) for a country or international organization for which assistance under
  that provision was not justified in congressional presentation documents
  for that fiscal year, or
  `(B) in excess of the amount justified in the congressional  presentation
  document and allocated pursuant to section 4303, whichever is greater,
  for that country or organization under that provision for that fiscal year.
  `(2) NEW ACTIVITIES- Any economic assistance for a program, project,
  or activity under any provision of this Act--
  `(A) which was not justified in congressional presentation documents for
  that fiscal year; and
  `(B) for which assistance was not furnished for the preceding fiscal year.
  `(b) CONGRESSIONAL PRESENTATION DOCUMENTS- For purposes of this section, the
  term `congressional presentation documents' means the annual congressional
  presentation documents for assistance under this Act or the justification
  documents accompanying a request for supplemental authorizations of
  appropriations or supplemental appropriations for assistance under this Act.
  `(c) APPROPRIATIONS SUBJECT TO REQUIREMENTS- Subsection (a) applies with
  respect to all funds appropriated for assistance under this Act (including
  chapter 4 of title I relating to narcotics control) other than--
  `(1) title III (relating to the Overseas Private Investment Corporation
  and the Trade Development Agency),
  `(2) section 1111 (relating to the private sector investment guaranty
  program),
  `(3) section 1112 (relating to the housing and urban development guarantee
  program), and
  `(4) programs of disaster relief and rehabilitation, including assistance
  programs under chapter 6 of title I (relating to international disaster
  assistance).
  `(d) EMERGENCY EXCEPTIONS-
  `(1) WAIVER- Subsection (a), or any similar requirement to provide advance
  notification to the Congress or congressional committees, may be waived
  if the President determines that doing so is necessitated by emergency
  circumstances.
  `(2) EXERCISE OF AUTHORITY- In the case of any waiver under paragraph (1)
  notification to the Congress or the appropriate congressional committees
  shall be provided as early as practicable, but in no event later than
  three days after taking the action to which such notification requirement
  was applicable. Any notification under this paragraph shall contain an
  explanation of the circumstances necessitating the use of the authority
  of this subsection.'.
TITLE V--GENERAL PROVISIONS
SEC. 501. CONSOLIDATION AND REVISION OF ADMINISTRATIVE AUTHORITIES AND
ELIMINATION OF OBSOLETE PROVISIONS.
  The Foreign Assistance Act of 1961, as amended by the preceding titles of
  this Act, is amended by adding the following new title V after new title IV
  (as enacted by title IV of this Act):
`TITLE V--GENERAL PROVISIONS
`CHAPTER 1--EXERCISE AND COORDINATION OF FUNCTIONS
`SEC. 5101. DELEGATIONS BY THE PRESIDENT.
  `(a) IN GENERAL- The President may exercise any functions conferred upon
  the President by this Act through such agency or officer of the United
  States Government as the President shall direct.
  `(b) AUTHORITY TO ISSUE REGULATIONS AND DELEGATE- The head of any agency
  or officer exercising functions under this Act--
  `(1) may from time to time promulgate such rules and regulations as may
  be necessary to carry out such functions; and
  `(2) may delegate authority to perform any such functions, including,
  if he or she shall so specify, the authority successively to redelegate
  any of such functions to a subordinate.
`SEC. 5102. DESIGNATION OF ADMINISTERING AGENCY FOR TITLE I.
  `The President may exercise his functions for administering economic
  assistance programs under title I primarily through a single agency,
  which the President may designate.
`SEC. 5103. AUTHORITY TO ESTABLISH MISSIONS ABROAD.
  `(a) AUTHORITY- The President may maintain special missions or staffs
  outside the United States in such countries and for such periods of time
  as may be necessary to carry out this Act.
  `(b) CHIEF OF MISSION- Each such special mission or staff shall be under
  the direction of a chief.
  `(c) SMALLER ECONOMIC ASSISTANCE PROGRAMS- In the case of smaller programs,
  economic assistance under title I may be administered under the direction
  of the chief of the United States diplomatic mission by the principal
  economic officer of the mission.
`SEC. 5104. PRESIDENTIAL FINDINGS AND DETERMINATIONS.
  `(a) FINDINGS AND DETERMINATIONS TO BE WRITTEN AND SIGNED- In any case
  in which the President is required to make a report by any provision
  of this Act, the Defense Trade and Export Control Act, annual foreign
  assistance authorization legislation, or the annual Foreign Operations,
  Export Financing, and Related Programs Appropriations Act, to the Congress
  or to any committee or officer of either House of Congress concerning any
  finding or determination, that finding or determination shall be reduced
  to writing and signed by the President.
  `(b) RESTRICTION- No action shall be taken pursuant to any such finding
  or determination prior to the date on which that finding or determination
  has been reduced to writing and signed by the President.
  `(c) PUBLICATION IN FEDERAL REGISTER- Each such finding or determination
  shall be published in the Federal Register as soon as practicable after
  it has been reduced to writing and signed by the President. In any case
  in which the President concludes that such publication would be harmful
  to the national security of the United States, only a statement that a
  determination or finding has been made by the President, including the
  name and section of the Act under which it was made, shall be published.
`CHAPTER 2--ADMINISTRATIVE AUTHORITIES
`SEC. 5201. ALLOCATION OF FUNDS AND REIMBURSEMENT AMONG AGENCIES.
  `(a) IN GENERAL- The President may allocate or transfer to any agency of
  the United States Government any part of any funds available for carrying
  out this Act, including any advance to the United States Government by any
  country or international organization for the procurement of commodities or
  services. Such funds shall be available for obligation and expenditure for
  the purposes for which authorized, in accordance with authority granted in
  this Act or under authority governing the activities of the agency of the
  United States Government to which such funds are allocated or transferred.
  `(b) Procurement From Other Agencies-
  `(1) AUTHORITY- Any officer of the United States Government carrying out
  functions under this Act may utilize the services or defense services
  and the facilities of, or procure commodities or defense articles from,
  any agency of the United States Government as the President shall direct,
  or with the consent of the head of such agency.
  `(2) SEPARATE ACCOUNT- Funds allocated pursuant to this subsection to any
  such agency may be established in separate appropriation accounts on the
  books of the Treasury.
  `(c) NONMILITARY ASSISTANCE-
  `(1) REIMBURSEMENT TO AGENCIES- In the case of any commodity, service,
  or facility procured from any agency of the United States Government to
  carry out any provision of title I, reimbursement or repayment shall be
  made to such agency from funds available to carry out that provision.
  `(2) AMOUNT OF REIMBURSEMENT- Such reimbursement or payment shall be at--
  `(A) replacement cost,
  `(B) if required by law, actual cost,
  `(C) in the case of services procured from the Department of Defense to
  carry out chapter 4 of title I, the amount of additional costs incurred
  by the Department of Defense in providing such services, or
  `(D) at any other price authorized by law and agreed to by the owning or
  disposing agency.
  `(3) CREDITING OF REIMBURSEMENT- The amount of any such reimbursement
  or payment--
  `(A) shall be credited to current applicable appropriations, funds,
  or accounts, from which there may be procured replacements of similar
  commodities, services, or facilities; or
  `(B) shall be deposited into the Treasury as miscellaneous receipts if such
  appropriations, funds, or accounts are not reimbursable except by reason
  of this subsection and if the owning or disposing agency determines that
  such replacement is not necessary.
  `(d) Military Assistance-
  `(1) REIMBURSEMENT TO AGENCIES- Except as otherwise provided, reimbursement
  shall be made to any agency of the United States Government, from funds
  available for use under title II, for any assistance furnished under title
  II from, by, or through such agency.
  `(2) AMOUNT OF REIMBURSEMENT- Such reimbursement shall be--
  `(A) in an amount equal to the value of the defense articles, the defense
  services (excluding salaries of members of the Armed Forces), or other
  assistance furnished, plus
  `(B) expenses arising from or incident to operations under title II
  (excluding salaries of members of the Armed Forces and unfunded estimated
  costs of civilian retirement and other benefits).
  `(3) CREDITING TO APPROPRIATION- The amount of such reimbursement shall
  be credited to the current applicable appropriations, funds, or accounts
  of such agency.
  `(e) ESTABLISHMENT OF ACCOUNTS-
  `(1) AUTHORITY TO ESTABLISH; USES- In furnishing assistance under this Act,
  accounts may be established on the books of any agency of the United States
  Government or, on terms and conditions approved by the Secretary of the
  Treasury, in banking institutions in the United States--
  `(A) against which letters of commitment may be issued which shall constitute
  recordable obligations of the United States Government, and moneys due or
  to become due under such letters of commitment shall be assignable under
  the last sentence of section 3727(b) and section 3727(c) of title 31,
  United States Code, and the second and third paragraphs of section 3737
  of the Revised Statutes of the United States (41 U.S.C. 15); and
  `(B) from which disbursements may be made to, or withdrawals may be made by,
  recipient countries or agencies, organizations, or persons upon presentation
  of contracts, invoices, or other appropriate documentation.
  `(2) ACCOUNTING FOR EXPENDITURES- Expenditure of funds which have been
  made available through accounts established under paragraph (1) shall be
  accounted for on standard documentation required for expenditure of funds
  of the United States Government.
  `(f)(1) EXPORT-IMPORT BANK- Credits made by the Export-Import Bank of
  the United States with funds allocated to the Bank under subsection (a)
  of this section shall not be considered in determining whether the Bank
  has outstanding at any one time loans and guaranties to the extent of the
  limitations imposed by section 7 of the Export-Import Bank Act of 1945
  (12 U.S.C. 635e) or related appropriations Acts.
  `(2) OVERSEAS PRIVATE INVESTMENT CORPORATION- Loans guaranties, or
  investments made by the Overseas Private Investment Corporation with funds--
  `(A) allocated under subsection (a) of this section or transferred from
  other sources, public or private, or
  `(B) received in foreign currency by the Corporation as a result of
  insurance activities conducted pursuant to section 3104(a) of this Act
shall not be considered in determining whether the Corporation has made
or has outstanding loans, guaranties, or investments to the extent of any
limitation on obligations, commitments, and equity investments imposed by
or pursuant to this Act.
  `(3) CREDIT REFORM- The provisions of section 504(b) of the Federal
  Credit Reform Act of 1990 shall not apply to direct loan obligations
  or loan guarantee commitments, including insurance provided under the
  Export-Import Bank Act of 1945, made with funds described--
  `(A) in paragraphs (1) or (2)(A) of this subsection to the extent that an
  amount equivalent to their cost (as defined in section 502(5) of such Act)
  is transferred to the associated financing account established pursuant
  to such Act: Provided, That the Committees on Appropriations and Foreign
  Affairs of the House of Representatives and the Committees on Appropriations
  and Foreign Relations of the Senate are notified at least ten days before
  any such transfer, or
  `(B) in paragraph (2)(B) of this subsection.
  `(g) CHARGING TO APPROPRIATIONS-
  `(1) INITIAL CHARGING- Any appropriation or account available to carry
  out provisions of title I may initially be charged in any fiscal year,
  within the limit of available funds, to finance expenses for which funds
  are available in other appropriations or accounts under that title.
  `(2) FINAL CHARGING- As of the end of such fiscal year, such expenses shall
  be finally charged to applicable appropriations or accounts with proper
  credit to the appropriations or accounts initially utilized for financing
  purposes, except that such final charges shall not be required in the case
  of expenses (other than those provided under sections 1801 and 1802) incurred
  in furnishing assistance where it is determined that the accounting costs of
  identifying the applicable appropriation or account to which such expenses
  should be charged would be disproportionate to the advantage to be gained.
`SEC. 5202. GENERAL AUTHORITIES.
  `(a) TERMS OF ASSISTANCE- Except as otherwise specifically prohibited in
  this Act, assistance under this Act may be furnished on a grant, loan, or
  guaranty basis, or on such terms, including cash, credit, or other terms
  of repayment (including repayment in foreign currencies or by transfer to
  the United States Government of commodities), as may be determined to be
  best suited to the achievement of the purposes of this Act.
  `(b) TERMS AND CONDITIONS- The President may furnish assistance under this
  Act on such terms and conditions (consistent with other provisions of law)
  as the President deems appropriate, and, consistent with the provisions
  of this Act, may charge such fees for guarantees and loans under this Act
  as the President deems appropriate.
  `(c) ADVANCES, CONTRACTS, ETC- In furtherance of the purposes and within
  the limitations of this Act, the President may make loans, advances,
  and grants to, make and perform agreements and contracts with, or enter
  into other transactions with, any person, corporation, or other body
  of persons, any government or government agency, regional organization,
  and any international organization.
  `(d) GIFTS- The President may accept and use in furtherance of the purposes
  of this Act, money, funds, property, and services of any kind made available
  by gift, devise, bequest, grant, or otherwise for such purpose.
  `(e) INSURANCE-
  `(1) FOREIGN PARTICIPANTS- Any agency of the United States Government is
  authorized to pay the cost of health and accident insurance for foreign
  participants in any program of furnishing assistance administered by such
  agency while such participants are absent from their homes for the purpose
  of participation in such program.
  `(2) FOREIGN EMPLOYEES- Any agency of the United States Government is
  authorized to pay the cost of health and accident insurance for foreign
  employees of that agency while those employees are absent from their places
  of employment abroad for purposes of training or other official duties.
  `(f) ADMISSION TO UNITED STATES- Alien participants in any program of
  furnishing assistance under this Act may be admitted to the United States
  if otherwise qualified as nonimmigrants under section 101(a)(15) of the
  Immigration and Nationality Act (8 U.S.C. 1101(a)(15)), for such time and
  under such conditions as may be prescribed by regulations promulgated by
  the Secretary of State and the Attorney General.
  `(g) ASSISTANCE AUTHORITIES- In furnishing and administering assistance
  under this Act, the President--
  `(1) may issue letters of credit and letters of commitment;
  `(2) may collect, compromise, or otherwise settle any obligations assigned
  to, or held by, and any legal or equitable rights accruing to, the President
  and may (as the President deems appropriate) refer any such obligations
  or rights to the Attorney General for suit or collection;
  `(3) may--
  `(A) acquire and dispose of (upon such terms and conditions as the
  President deems appropriate) any property, including any instrument
  evidencing indebtedness or ownership, and
  `(B) guarantee payment against any such instrument;
  `(4) may establish the character of, and decide the necessity for,
  obligations and expenditures of funds used in furnishing and administering
  such assistance and the manner in which such obligations and expenditures
  shall be incurred, allowed, and paid, subject to provisions of law
  specifically applicable to corporations of the United States Government; and
  `(5) shall cause to be maintained an integral set of accounts which shall
  be audited by the General Accounting Office in accordance with principles
  and procedures applicable to commercial corporate transactions as provided
  by chapter 91 of title 31, United States Code.
  `(h) CLAIMS RELATING TO GUARANTEES- Claims arising as a result of any
  guarantee program authorized by this Act may be settled, and disputes arising
  as the result thereof may be arbitrated with the consent of the parties,
  on such terms and conditions as the President may direct. Payment made
  pursuant to any such settlement, or as a result of an arbitration award,
  shall be final and conclusive notwithstanding any other provision of law.
  `(i) FINANCIAL TRANSACTIONS WITH FOREIGN GOVERNMENTS IN DEFAULT OF
  OBLIGATIONS TO THE UNITED STATES- Section 955 of title 18, United States
  Code, shall not apply to any person--
  `(1) who acts for or participates in any operation or transaction arising
  under this Act, or
  `(2) who acquires any obligation issued in connection with any operation
  or transaction arising under this Act.
  `(j) EDUCATIONAL INSTITUTIONS- Any cost-type contract or agreement
  (including grants) entered into with an institution of higher education
  for the purpose of carrying out programs authorized by title I may provide
  for the payment of the reimbursable indirect costs of that institution on
  the basis of predetermined fixed-percentage rates applied to the total or
  an element thereof, of the reimbursable direct costs incurred.
  `(k) MULTIYEAR COMMITMENTS- A contract or agreement which entails commitments
  for the expenditure of funds under this Act may, subject to any future
  action of the Congress, extend at any time for not more than ten years.
`SEC. 5203. AUTHORIZED ADMINISTRATIVE USES OF FUNDS.
  `(a) PERSONNEL, PRINTING, PROCUREMENT OF SUPPLIES, AND OTHER ADMINISTRATIVE
  EXPENSES- Funds made available to carry out this Act may be used for
  the following:
  `(1) Compensation, allowances, and travel of personnel, including Foreign
  Service personnel, whose services are utilized primarily for the purposes
  of this Act.
  `(2) Printing and binding without regard to the provisions of any other law.
  `(3) Expenditures outside the United States for the procurement of supplies
  and services and for other administrative and operating purposes (other
  than compensation of personnel) without regard to such laws and regulations
  governing the obligation and expenditure of funds of the United States
  Government (other than sections 1341,  1342, and 1517 of title 31, United
  States Code) as may be necessary to  accomplish the purposes of this Act.
  `(b) USES OF NONMILITARY ASSISTANCE FUNDS-
  `(1) AUTHORIZED USES- Funds described in paragraph (2) shall be available
  for the following:
  `(A) Rent of buildings and space in buildings in the United States, and
  for repair, alteration, and improvements of such leased properties.
  `(B) Expenses of attendance  at meetings concerned with the purposes of
  title I, including (notwithstanding  section 1346(a) and 1346(c) of title
  31, United States Code), expenses in connection with meetings of persons
  whose employment is authorized by section 5503.
  `(C) Contracting with individuals for personal service abroad. Such
  individuals shall not be regarded as employees of the United States
  Government for the purpose of any law administered by the Office of
  Personnel Management.
  `(D) Purchase, maintenance, operation, and hire of aircraft, except that
  aircraft for administrative purposes may be purchased only as specifically
  provided for in an appropriation or other Act.
  `(E)(i) Purchase and hire of passenger motor vehicles, subject to clauses
  (ii) and (iii).
  `(ii) Except as may otherwise be provided in an appropriation or other
  Act, passenger motor vehicles for administrative purposes outside the
  United States may be purchased for replacement only. Such vehicles may be
  exchanged or sold and replaced by an equal number of such vehicles.
  `(iii) Passenger motor vehicles other than one for the official use of
  the head of the agency designated under section 5102 may be purchased
  for use in the United States only as may be specifically provided in an
  appropriation or other Act
  `(F) Entertainment.
  `(G) Exchange of funds without regard to loss by exchange.
  `(H) Expenditures (not to exceed $50,000 in any fiscal year except as may
  otherwise be provided in an appropriation or other Act) of a confidential
  character other than entertainment. A certificate of the amount of such
  expenditure, the nature of which it is considered inadvisable to specify,
  shall be made by the President, and every such certificate shall be deemed
  a sufficient voucher for the amount therein specified.
  `(I) Insurance of official motor vehicles or aircraft acquired for use in
  foreign countries.
  `(J)(i) Rent or lease outside the United States of offices, buildings,
  grounds, and quarters, including living quarters to house personnel, and
  payments therefor in advance for such period as the President may determine.
  `(ii) Maintenance, furnishings, necessary repairs, improvements, and
  alterations to properties owned or rented by the United States Government
  or made available for use to the United States Government outside the
  United States.
  `(iii) Costs of fuel, water, and utilities for such properties.
  `(K) Expenses of--
  `(i) preparing and transporting to their former homes (or with respect to
  foreign participants engaged in any program under title I to their former
  homes or places of burial), and
  `(ii) caring for and disposing of the remains of an individual, or the
  remains of a member of an individual's family, who may die while such
  individual is away from home participating in activities carried out with
  funds described in paragraph (2).
  `(L) Purchase of uniforms.
  `(M) Payment of per diem in lieu of subsistence to foreign participants
  engaged in any program under title I while such participants are away
  from their homes in countries other than the United States, at rates not in
  excess of those prescribed by the standardized Government travel regulations,
  notwithstanding any other provision of law.
  `(N) Use in accordance with authorities of the Foreign Service Act of 1980
  (22 U.S.C. 3901 et seq.) not otherwise provided for.
  `(O) Ice and drinking water for use outside the United States.
  `(P) Services of commissioned officers of the National Oceanic and
  Atmospheric Administration. For the purposes of providing such services,
  the National Oceanic and Atmospheric Administration may appoint not to exceed
  twenty commissioned officers in addition to those otherwise authorized.
  `(Q) Expenses in connection with--
  `(i) travel of personnel outside the United States, including travel
  expenses of dependents (including expenses during necessary stopovers
  while engaged in such travel);
  `(ii) the transportation of personal effects, household goods, and
  automobiles of such personnel when any part of such travel or transportation
  begins in one fiscal year pursuant to travel orders issued in that fiscal
  year, notwithstanding the fact that such travel or transportation may not
  be completed during the same fiscal year; and
  `(iii) the costs of transporting automobiles to and from a place of storage,
  and the costs of storing automobiles of such personnel, when it is in the
  public interest or more economical to authorize storage.
  `(R) Assistance for the implementation of programs under the Agricultural
  Trade Development and Assistance Act of 1954, the Agricultural Act of 1949,
  and the Food for Progress Act of 1985.
  `(2) FUNDS WHICH MAY BE USED- Paragraph (1) applies to--
  `(A) appropriations to carry out this Act (other than title II),
  `(B) allocations to any agency of the United States Government, from other
  appropriations, for functions directly related to the purposes of this Act
  (other than title II), and
  `(C) funds made available for other purposes to the agency designated
  under section 5102.
  `(c) FACILITIES ABROAD-
  `(1) LIVING QUARTERS, OFFICES, SCHOOLS, AND HOSPITALS- Notwithstanding any
  other provision of law, funds available for assistance under this Act may
  be used in any fiscal year (in addition to funds available for such use
  under other authorities in this Act)--
  `(A) to construct or otherwise acquire outside the United States essential
  living quarters, office space, and necessary supporting facilities for
  use of personnel carrying out activities authorized by this Act;
  `(B) to construct or otherwise acquire outside the United States schools
  (including dormitories and boarding facilities) and hospitals for use of
  personnel carrying out activities authorized by this Act, United States
  Government personnel, and their dependents; and
  `(C) to staff, operate, and maintain such schools and hospitals.
  `(2) DISPOSAL- Overseas property acquired under this subsection (or
  predecessor provisions of this Act) may be disposed of, and the proceeds
  of such disposal shall remain available until expended for use for the
  purposes specified in paragraph (1).
  `(d) EDUCATION OF DEPENDENTS- Funds available for assistance under this
  Act may be used in any fiscal year to provide assistance to schools
  established, or to be established, outside the United States whenever
  it is determined that such action would be more economical or would best
  serve the interests of the United States in providing for the education of
  dependents of personnel carrying out activities authorized by this Act and
  dependents of United States Government personnel, in lieu of acquisition
  or construction pursuant to subsection (c) of this section.
  `(e) Training of Personnel-
  `(1) PAYMENT OF COSTS- Funds available under this Act may be used to pay
  costs of training United States citizen personnel employed or assigned
  pursuant to section 5502(c), through interchange or otherwise, at any State
  or local unit of government, public or private nonprofit institution,
  trade, labor, agricultural, or scientific association or organization,
  or commercial firm.
  `(2) LIMITATION ON DUAL EMPLOYMENT- Such training shall not be considered
  employment or holding of office under section 5533 of title 5, United
  States Code.
  `(3) ACCEPTANCE OF CERTAIN PAYMENTS- Any payments or contributions in
  connection with such training may, as deemed appropriate by the head of
  the agency of the United States Government authorizing such training,
  be made by private or public sources and be accepted by any trainee, or
  may be accepted by and credited to the current applicable appropriation
  of such agency. Any such payments or contributions to any employee in the
  nature of compensation shall be in lieu, or in reduction, of compensation
  received from the United States Government.
  `(f) DETAIL OF PERSONNEL- Funds made available for title I may be used to
  reimburse an agency of the United States Government, an agency of a State
  government, or an institution of higher education for the full costs of
  any employee which that agency or institution details or assigns to the
  agency designated under section 5102 to carry out programs under title I
  that require specialized technical skills.
  `(g) MILITARY ASSISTANCE FUNDS- Funds made available for the purposes of
  title II shall be available for the following:
  `(1) Administrative, extraordinary (not to exceed $300,000 in any fiscal
  year), and operating expenses incurred in furnishing defense articles and
  defense services under chapter 2 or chapter 5 of title II or on a sale or
  lease basis under the Defense Trade and Export Control Act.
  `(2) Reimbursement of actual expenses of military officers detailed or
  assigned as tour directors in connection with orientation visits of foreign
  military and related civilian personnel, in accordance with the provisions
  of section 5702 of title 5,  United States Code, applicable to civilian
  officers and employees.
  `(3) Maintenance, repair, alteration, and furnishing of  United States-owned
  facilities in the District of Columbia or elsewhere for the training
  of foreign military and related civilian personnel without regard to
  the provisions of section 3733 of the Revised Statutes (41 U.S.C. 12)
  or other provision of law requiring a specific authorization or specific
  appropriation for such public contracts.
`CHAPTER 3--SPECIAL REQUIREMENTS AND AUTHORITIES RELATING TO APPROPRIATIONS
AND LOCAL CURRENCIES
`Subchapter A--Provisions Relating to Appropriations
`SEC. 5301. REQUIREMENT FOR AUTHORIZATION OF APPROPRIATIONS.
  `(a) REQUIREMENT FOR AUTHORIZATION- Funds appropriated for foreign assistance
  under this Act shall not be available for obligation or expenditure--
  `(1) unless the appropriation thereof has been specifically authorized by
  law; or
  `(2) in excess of an amount prescribed by law.
  `(b) SUBSEQUENT AUTHORIZATIONS- To the extent that legislation enacted
  after the making of an appropriation for foreign assistance under this Act
  authorizes the obligation or expenditure thereof, the limitation contained
  in subsection (a) shall not apply.
  `(c) RELATION TO OTHER PROVISIONS- The provisions of this section shall
  not be superseded except by a provision of law that specifically repeals
  or modifies the provisions of this section.
`SEC. 5302. AUTHORITY FOR EXTENDED PERIOD OF AVAILABILITY OF APPROPRIATIONS.
  `Amounts appropriated to carry out this Act are authorized to be made
  available, in appropriations Acts, until expended.
`SEC. 5303. REDUCTION IN EARMARKS.
  `(a) PROPORTIONAL REDUCTIONS- If--
  `(1) the amount appropriated for a fiscal period to carry out any provision
  of this Act is less than the amount authorized to be appropriated to carry
  out such provision, and
  `(2) the provision or provisions authorizing such appropriations provides
  that a specified amount of the amount authorized to be appropriated to
  carry out that provision for that fiscal period shall be available only
  for a particular country, organization, or purpose,
then the amount so specified shall be deemed to be reduced to the amount
which bears the same ratio to the specified amount as the amount appropriated
bears to the amount authorized to be appropriated.
  `(b)(1) Funds may be made available notwithstanding any provision of law
  described in paragraph (2) if--
  `(A) compliance with such provision is made impossible by operation of
  law, or
  `(B) the President determines that the country or organization for whom
  such funds would have been made available has significantly reduced its
  military, political, or economic cooperation with the United States during
  the preceding twelve-month period.
  `(2) The provisions of law to which this subsection applies are any
  provisions requiring that a specified amount of funds appropriated to carry
  out any provision of this Act shall be available only for a particular
  country, organization, or purpose.
`Subchapter B--Local Currencies
`SEC. 5321. SPECIAL ACCOUNTS FOR AND USE OF HOST-COUNTRY OWNED LOCAL CURRENCY.
  `(a) SPECIAL ACCOUNT- If assistance is furnished to the government of
  a foreign country under title I under agreements which will result in
  the generation of local currencies of that country, and to the extent
  determined appropriate by the President to further the purposes of the Act,
  the President should--
  `(1) require that local currencies be deposited in a special account
  established by that government;
  `(2) enter into an agreement with that government which sets forth--
  `(A) the amount of the local currencies to be so generated, and
  `(B) the terms and conditions under which the currencies so deposited may
  be utilized, consistent with this section; and
  `(3) establish by agreement with that government the responsibilities of
  the United States and that government to monitor and account for deposits
  into and disbursements from the special account.
  `(b) USES OF LOCAL CURRENCIES- As may be agreed upon with the foreign
  government, local currencies deposited in a special account pursuant to
  subsection (a), or an equivalent amount of local currencies, shall be
  used only--
  `(1) to carry out title I (as the case may be), for such purposes as--
  `(A) project and sector assistance activities, or
  `(B) debt and deficit financing; or
  `(2) for the administrative requirements of the United States Government.
  `(c) PROGRAMMING ACCOUNTABILITY- The President shall take all appropriate
  steps to ensure that the equivalent of the local currencies disbursed
  pursuant to subsection (b)(1) from the special account established pursuant
  to subsection (a)(1) are used for the purposes agreed upon pursuant to
  subsection (a)(2).
  `(d) TERMINATION OF ASSISTANCE PROGRAMS- Upon termination of assistance to
  a country under title I, any unencumbered balances of funds which remain in
  a special account established pursuant to subsection (a) shall be disposed
  of for such purposes as may be agreed to by the government of that country
  and the United States Government.
  `(e) APPLICABILITY OF REQUIREMENTS- This section does not apply with
  respect to chapter 4 of title I or chapter 6 or 7 of title II.
  `(f) DEFINITION- For purposes of this section local currencies that are
  generated are those local currencies which result from the provision on
  non-project assistance disbursed as a cash transfer and where such local
  currencies represent a tangible flow of currency to the recipient government
  rather than an internal account transaction within such government.
`SEC. 5322. USE OF CERTAIN FOREIGN CURRENCIES OWNED BY THE UNITED STATES.
  `(a) AUTHORITY TO USE FOREIGN CURRENCIES FOR ASSISTANCE PROGRAMS- Except
  as otherwise provided in this Act or other provisions of law, foreign
  currencies described in subsection (b) are authorized to be appropriated
  for use in providing assistance under title I.
  `(b) FOREIGN CURRENCIES WHICH MAY BE USED FOR ASSISTANCE- The foreign
  currencies which may be used under subsection (a) are any foreign currencies
  received as a result of the furnishing of assistance under title I (or any
  predecessor legislation authorizing nonmilitary assistance) which are in
  excess of--
  `(1) the amounts reserved under authority of section 105(d) of the Mutual
  Educational and Cultural Exchange Act of 1961 or any other Act relating
  to educational and cultural exchanges; and
  `(2) the amounts required for payment by the agencies of the United
  States Government of their obligations outside the United States, as such
  requirements may be established from time to time by the President.
  `(c) PAYMENT OF OBLIGATIONS OF GOVERNMENT AGENCIES- Foreign currencies
  described in subsection (b) which are in excess of the amounts described
  in paragraph (1) of that subsection may be sold by the Secretary of the
  Treasury to agencies of the United States Government for payment of their
  obligations outside the United States.
`SEC. 5323. INTEREST ON UNITED STATES OWNED FOREIGN CURRENCY PROCEEDS.
  `(a) REQUIREMENT FOR PAYMENT OF INTEREST- In cases where assistance is to
  be furnished to any recipient country under this Act on a basis which will
  result in the accrual of foreign currency proceeds to the United States,
  agreements with respect to such assistance should include provisions for
  the receipt of interest income on the foreign currency proceeds deposited
  in authorized depositories.
  `(b) WAIVER OF REQUIREMENTS- The President may waive any requirement for
  receipt of such income if the President decides it would not be in the
  national interest to conclude arrangements for the receipt of interest
  income pursuant to subsection (a).
`SEC. 5324. USE OF LOCAL CURRENCIES.
  `In carrying out programs under this Act, the President shall take all
  appropriate steps to assure that, to the maximum extent possible countries
  receiving assistance under this Act contribute local currencies to meet
  the cost of contractual and other services rendered in conjunction with
  such programs.
`SEC. 5325. INTEREST ON LOCAL CURRENCY ACCRUING TO NONGOVERNMENTAL
ORGANIZATIONS.
  `A nongovernmental organization may invest local currencies which accrue
  to that organization as a result of assistance provided under title I, the
  Agricultural Trade Development and Assistance Act of 1954, section 416(b)
  of the Agricultural Act of 1949, or the Food for Progress Act of 1985,
  and any interest earned on such investment may be used for the purpose
  for which the assistance was provided to that organization including for
  the establishment of an endowment.
`CHAPTER 4--PROCUREMENT AND DISPOSITION OF COMMODITIES AND DEFENSE ARTICLES
`SEC. 5401. USE OF PRIVATE ENTERPRISE.
  `(a) IN GENERAL- In order to encourage and facilitate participation by
  private enterprise to the maximum extent practicable in achieving any of
  the purposes of this Act, the President shall--
  `(1) to the maximum extent practicable carry out programs of assistance
  through private channels and, to the extent practicable, in conjunction
  with local private or governmental participation;
  `(2) utilize wherever practicable the services of United States private
  enterprise to provide the necessary skills to develop and operate a
  specific project or program of assistance in a developing country or area
  in any case in which direct private investment is not readily encouraged,
  and provide where appropriate for the transfer of equity ownership in such
  project or program to private investors at the earliest feasible time.
  `(b) TECHNICAL ASSISTANCE- In providing technical assistance under this
  Act, the President shall utilize, to the fullest extent practicable,
  goods and professional and other services from private enterprise on a
  contract basis. In such fields as education, health, housing, engineering,
  surveying, mapping, construction or agriculture, the facilities and resources
  of Federal agencies, which do not administer programs under this Act, may
  be utilized when such facilities are particularly or uniquely suitable
  for technical assistance, are not competitive with private enterprise,
  and can be made available without interfering unduly with domestic programs.
  `(c) MILITARY ASSISTANCE- The President shall assure that there is made
  available to suppliers in the United States, and particularly to small
  independent enterprises, information with respect to purchases made by
  the Department of Defense pursuant to title II. Such information shall be
  furnished as far in advance as possible.
`SEC. 5402. PROCUREMENT STANDARDS AND PROCEDURES.
  `(a) ESTABLISHMENT OF STANDARDS AND PROCEDURES- Funds made available under
  this Act may be used for procurement outside the United States only if
  the President determines that such procurement will not result in adverse
  effects upon the economy of the United States or the industrial mobilization
  base which outweigh the economic or other advantages to the United States
  of less costly procurement outside the United States, and only if the price
  of any commodity procured in bulk is lower than the market price prevailing
  in the United States at the time of procurement, adjusted for differences
  in the cost of transportation to destination, quality, and terms of payment.
  `(b) BULK COMMODITIES- No funds made available under this Act shall be
  used for the purchase in bulk of any commodities at prices higher than
  the market price prevailing in the United States at the time of purchase,
  adjusted for differences in the cost of transportation to destination,
  quality, and terms of payment.
  `(c) PROCUREMENT METHOD FOR INSTITUTIONS OF HIGHER EDUCATION- The President
  may establish separate procurement standards and procedures for projects
  under title I to limit competition to a selection among institutions of
  higher education when the projects would benefit substantially from the
  resources and special capabilities of such institutions.
`SEC. 5403. SHIPPING ON UNITED STATES VESSELS.
  `(a) CERTAIN LAWS NOT APPLICABLE- The ocean transportation between foreign
  countries of commodities and defense articles purchased with foreign
  currencies made available or derived from funds made available under this
  Act or the Agricultural Trade Development and Assistance Act of 1954 (7
  U.S.C. 1691 and following), and transfers of fresh fruit and fresh fruit
  products under this Act, shall not be governed by section 901(b) of the
  Merchant Marine Act, 1936 (46 U.S.C. app. 1241(b)), or any other law relating
  to the ocean transportation of commodities on United States flag vessels.
  `(b) SHIPPING DIFFERENTIAL- For purposes of facilitating implementation of
  section 901(b) of the Merchant Marine Act, 1936 (46 U.S.C. app. 1241(b)),
  funds made available for development assistance and economic support
  assistance may be used to make grants to recipients or otherwise pay all
  or any portion of such differential as is determined by the Secretary of
  Transportation to exist between United States and foreign-flag vessel
  charter or freight rates. Grants made under this section shall be paid
  with United States-owned foreign currencies wherever feasible.
`SEC. 5404. EXCESS AND OTHER AVAILABLE PROPERTY.
  `(a) POLICY REGARDING USE OF EXCESS AND OTHER AVAILABLE PROPERTY- In
  furnishing assistance under title I--
  `(1) excess personal property, or
  `(2) if a substantial savings would occur, other property already owned
  by an agency of the United States Government,
may be utilized wherever practicable in lieu of or supplementary to the
procurement of new items for United States-assisted projects and programs.
  `(b) SEPARATE ACCOUNT FOR EXPENSES RELATED TO PROPERTY-
  `(1) AUTHORITY TO MAINTAIN ACCOUNT- The President is authorized to maintain
  in a separate account funds made available under title I. Funds in such
  a separate account shall (notwithstanding section 1535(d) of title 31,
  United States Code) be free from fiscal year limitations.
  `(2) USE OF FUNDS IN THE ACCOUNT- Funds in the separate account established
  under paragraph (1) may be used to pay costs (including personnel costs)
  of acquisition, storage, renovation and rehabilitation, packing, crating,
  handling, transportation, and related costs of--
  `(A) property classified as domestic or foreign excess property pursuant to
  the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471
  and following);
  `(B) any property available from an agency of the United States Government;
  or
  `(C) other property,
in advance of known requirements for the use of such property in furtherance
of the purposes of title I.
  `(3) USE OF PROPERTY ACQUIRED- Property acquired pursuant to paragraph
  (2) may be furnished--
  `(A) pursuant to any provision of title I (other than subchapter C of
  chapter 5 or chapter 8), for which funds are authorized for the furnishing
  of assistance, in which case the separate account established pursuant to
  this section shall be repaid from funds made available for such provision
  for all costs incurred; or
  `(B) pursuant to subchapter C of chapter 5 of title I, in which case the
  separate account shall be repaid in accordance with section 1522 for all
  costs incurred.
  `(c) CONDITIONS ON USE OF EXCESS PROPERTY-
  `(1) LIMITATION- Government-owned excess property may not be made available
  for use under title I unless approval is given and a determination is made
  in accordance with paragraph (2)--
  `(A) before the shipment of such property for use in a specified country, or
  `(B) if the property is already in such country, before the transfer of
  the property.
  `(2) DETERMINATION- A shipment or transfer subject to paragraph (1) may
  take place only after the President approves the shipment or transfer and
  makes a written determination--
  `(A) that there is a need for such property in the quantity requested and
  that such property is suitable for the purpose requested;
  `(B) as to the status and responsibility of the designated end-user and
  his ability effectively to use and maintain such property; and
  `(C) that the residual value, serviceability, and appearance of such
  property would not reflect unfavorably on the image of the United States
  and would justify the costs of packing, crating, handling, transportation,
  and other accessorial costs, and that the residual value at least equals
  the total of these costs.
`SEC. 5405. RETENTION AND USE OF CERTAIN ITEMS AND FUNDS.
  `(a) RETENTION AND USE OF CERTAIN COMMODITIES AND DEFENSE ARTICLES-
  `(1) AUTHORITY TO RETAIN, TRANSFER, AND USE- Any commodities or defense
  articles procured to carry out this Act shall be retained by, or (upon
  reimbursement) transferred to and for the use of, such agency of the
  United States Government as the President deems appropriate in lieu of
  being disposed of to a foreign country or international organization,
  whenever in the judgment of the President the best interests of the United
  States will be served thereby.
  `(2) LAWS GOVERNING DISPOSAL OF GOVERNMENT PROPERTY- Any commodities
  or defense articles so retained may be disposed of without regard to
  provisions of law relating to the disposal of property owned by the United
  States Government, when necessary to prevent spoilage or wastage of such
  commodities or defense articles or to conserve their usefulness.
  `(3) PROCEEDS CREDITED TO APPROPRIATIONS- Funds realized from any disposal
  or transfer shall revert to the respective appropriation, fund, or account
  used to procure such commodities or defense articles or to the appropriation,
  fund, or account currently available for the same general purpose.
  `(b) COMMODITIES RECEIVED AS PAYMENT- Whenever commodities are transferred
  to the United States Government as repayment of assistance under this Act,
  such commodities may be used in furtherance of the purposes and within
  the limitations of this Act.
  `(c) FAILED TRANSACTIONS- Funds realized as a result of any failure of a
  transaction financed under this Act to conform to the requirements of this
  Act, to applicable rules and regulations of the United States Government,
  or to the terms of any agreement or contract entered into under this Act,
  shall revert to the respective appropriation, fund, or account used to
  finance such transaction or to the appropriation fund, or account currently
  available for the same general purpose.
  `(d) DISPOSAL OF DEFENSE ARTICLES- Funds realized by the United States
  Government from the sale, transfer, or disposal of defense articles
  furnished under the former authority of chapter 2 of part II of this Act,
  and no longer needed for the purposes for which furnished, shall be credited
  to the respective appropriation, fund, or account currently available for
  the same general purpose.
`SEC. 5406. LAWS RELATING TO CONTRACTS AND GOVERNMENT EXPENDITURES.
  `Whenever the President determines it to be in furtherance of the purposes of
  this Act, the functions authorized under this Act may be performed without
  regard to such provisions of law regulating the making, performance,
  amendment, or modification of contracts and the expenditure of funds of
  the United States Government as the President may specify.
`SEC. 5407. TRANSPORTATION CHARGES INCURRED BY THE RED CROSS OR PRIVATE
VOLUNTARY ORGANIZATIONS.
  `In order to further the efficient use of United States voluntary
  contributions for development and for the relief and rehabilitation of
  people in friendly countries, the President may use funds made available
  for assistance under title I, to pay transportation charges on shipments
  by the American National Red Cross and by registered United States private
  voluntary organizations.
`CHAPTER 5--PERSONNEL
`SEC. 5501. STATUTORY OFFICERS IN ECONOMIC ASSISTANCE AGENCY.
  `(a) APPOINTMENT- The President may appoint, by and with the advice and
  consent of the Senate, twelve officers in the agency designated pursuant
  to section 5102.
  `(b) TITLE- The President may designate the title of any officer appointed
  under subsection (a).
  `(c) ORDER OF SUCCESSION- The President may also fix the order of succession
  among the officers appointed under subsection (a) of this section in the
  event of the absence, death, resignation, or disability of one or more of
  those officers.
`SEC. 5502. EMPLOYMENT OF PERSONNEL.
  `(a) AUTHORITY- Any agency or officer of the United States Government
  carrying out functions under this Act is authorized to employ such personnel
  as the President deems necessary to carry out the provisions and purposes
  of this Act.
  `(b) ECONOMIC ASSISTANCE FUNCTIONS IN THE UNITED STATES-
  `(1) APPOINTMENTS WITHOUT REGARD TO CERTAIN CIVIL SERVICE LAWS- Of the
  personnel employed in the United States to carry out title I, 110 may be
  appointed without regard to the provisions of title 5, United States Code,
  governing appointments in the competitive service, and may be compensated
  without regard to the provisions of chapter 51 or subchapter III of chapter
  53 of such title, subject to paragraph (2) of this subsection.
  `(2) COMPENSATION- Of the personnel appointed under paragraph (1), 51
  may be compensated at rates higher than those payable for GS-15 of the
  General Schedule under section 5332 of title 5, United States Code, but
  not in excess of the highest rate payable under section 5376 of such title.
  `(3) REINSTATEMENT RIGHTS- Under such regulations as the President may
  prescribe, any individual employed under paragraph (1) may be entitled,
  upon removal (except for cause) from the position to which the appointment
  was made, to reinstatement to the position occupied by that individual at
  the time of appointment or to a position of comparable grade of pay.
  `(4) PROVISIONS NOT APPLICABLE TO OTHER NONMILITARY ASSISTANCE PROGRAMS-
  This subsection does not apply with respect to chapter 4 title I or chapters
  6 and 7 of title II.
  `(c) MILITARY ASSISTANCE FUNCTIONS IN THE UNITED STATES- Of the personnel
  employed in the United States to carry out title II or the Defense Trade and
  Export Control Act not to exceed eight may be compensated at rates higher
  than those payable for GS-15 of the General Schedule under section 5332
  of title 5 of the United States Code, but not in excess of the highest
  rate payable under section 5376 of such title. Such positions shall
  be in addition to those authorized by law to be filled by Presidential
  appointment, and in addition to the number authorized by section 5108 of
  title 5, United States Code.
  `(d) Performance of Functions Outside the United States-
  `(1) AUTHORITY TO EMPLOY OR ASSIGN- For the purpose of performing functions
  under this Act outside the United States, the President may--
  `(A) employ or assign individuals, or
  `(B) authorize the employment or assignment of officers or employees
  by agencies of the United States Government which are not authorized to
  utilize the Foreign Service personnel system.
  `(2) COMPENSATION- Individuals employed or assigned under paragraph (1)
  shall receive compensation at any of the rates provided for under section
  402 or section 403 of the Foreign Service Act of 1980, or under chapter
  53 of title 5, United States Code, or at any other rate authorized by law,
  together with allowances and benefits under the Foreign Service Act of 1980.
  `(3) REEMPLOYMENT RIGHTS- Individuals so employed or assigned shall be
  entitled to the same benefits as are provided by section 310 of that Act
  for individuals appointed to the Foreign Service, except to the extent
  that the President may specify otherwise in cases in which the period of
  employment or assignment exceeds 30 months.
  `(e) CERTAIN FUNDS DEEMED OBLIGATED FOR CERTAIN SERVICES- Funds provided
  for in agreements with foreign countries for the furnishing of services
  under this Act with respect to specific projects shall be deemed to be
  obligated for the services of personnel employed by agencies of the United
  States Government (other than the agency designated under section 5102 or
  the Department of Defense) as well as personnel not employed by the United
  States Government.
`SEC. 5503. EXPERTS, CONSULTANTS, AND RETIRED OFFICERS.
  `(a) AUTHORITY TO EMPLOY- Experts and consultants or organizations thereof
  may, in accordance with section 3109 of title 5 of the United States Code,
  be employed for the performance of functions under this Act.
  `(b) MANDATORY RETIREMENT AGE NOT APPLICABLE- Service of an individual as
  an expert or consultant under subsection (a) of this section shall not be
  considered as employment or holding of office or position bringing such
  individual within the provisions of section 3323(a) of title 5 of the
  United States Code.
  `(c) EMPLOYMENT OF CERTAIN PERSONS WITHOUT COMPENSATION- Persons of
  outstanding experience and ability may be employed without compensation by
  any agency of the United States Government for the performance of functions
  under this Act in accordance with the provisions of section 710(b) of the
  Defense Production Act of 1950 (50 U.S.C. App. 2160(b)), and regulations
  issued thereunder.
`SEC. 5504. DETAIL OF PERSONNEL TO FOREIGN GOVERNMENTS AND INTERNATIONAL
ORGANIZATIONS.
  `(a) DETAILS TO FOREIGN GOVERNMENTS- When consistent with and in furtherance
  of the purposes of this Act, the head of any agency of the United States
  Government is authorized to detail any officer or employee of that agency
  to any office or position with any foreign government or foreign government
  agency, where acceptance of such office or position does not involve the
  taking of an oath of allegiance to another government.
  `(b) DETAILS TO INTERNATIONAL ORGANIZATIONS- When consistent with and in
  furtherance of the purposes of this Act, the head of any agency of the United
  States Government is authorized to detail to any international organization
  any officer or employee of that agency to serve with, or as a member of,
  the international staff of such organization, or to render any technical,
  scientific, or professional advice or service to, or in cooperation with,
  such organization.
  `(c) Status of Personnel Detailed-
  `(1) RETENTION OF BENEFITS- Any officer or employee, while detailed under
  this section--
  `(A) shall be considered an officer or employee of the United States
  Government and of the agency of the United States Government from which
  detailed for the purpose of preserving his or her allowances, privileges,
  rights, seniority, and other benefits as such; and
  `(B) shall continue to receive compensation, allowances, and benefits from
  funds appropriated to that agency or made available to that agency under
  this Act, or may be detailed on a leave without pay status.
  `(2) ALLOWANCES- Any officer or employee assigned, detailed, or appointed
  under this section, section 5103, section 5505, or section 5506 may receive
  (under such regulations as the President may prescribe) representation
  allowances similar to those allowed under section 905 of the Foreign Service
  Act of 1980. The authorization of such allowances and other benefits and
  the payment thereof out of any appropriations available therefor shall
  be considered as meeting all the requirements of section 5536 of title 5,
  United States Code.
  `(d) TERMS OF DETAIL- Details may be made under this section or section
  408 of the Mutual Security Act of 1954 in accordance with any of the
  following paragraphs:
  `(1) Without reimbursement to the United States Government by the foreign
  government or international organization.
  `(2) Upon agreement by the foreign government or international organization
  to reimburse the United States Government for compensation, travel expenses,
  benefits, and allowances, or any part thereof, payable to the officer
  or employee concerned during the period of detail. Such reimbursements
  (including foreign currencies) shall be credited to the appropriation,
  fund, or account utilized for paying such compensation, travel expenses,
  benefits, or allowances, or to the appropriation, fund, or account currently
  available for such purposes.
  `(3) Upon an advance of funds, property, or services by the foreign
  government or international organization to the United States Government
  accepted with the approval of the President for specified uses in furtherance
  of the purposes of this Act. Funds so advanced may be established as
  a separate fund in the Treasury of the United States Government, to be
  available for the specified uses, and to be used for reimbursement of
  appropriations or direct expenditure subject to the provisions of this
  Act, any unexpended balance of such account to be returned to the foreign
  government or international organization.
  `(4) Subject to the receipt by the United States Government of a credit to
  be applied against the payment by the United States Government of its share
  of the expenses of the international organization to which the officer
  or employee is detailed, such credit to be based upon the compensation,
  travel expenses, benefits and allowances, or any part thereof, payable to
  such officer or employee during the period of detail in accordance with
  subsection (c).
`SEC. 5505. CHIEF OF ECONOMIC ASSISTANCE MISSION ABROAD.
  `(a) APPOINTMENT- The chief and his deputy of each special mission or
  staff carrying out economic assistance programs under title I shall be
  appointed by the President.
  `(b) COMPENSATION AND ALLOWANCES- Such chief shall be entitled to receive
  such compensation and allowances as are authorized by the Foreign Service Act
  of 1980, not to exceed those authorized for a chief of mission (as defined
  in section 102(a)(3) of that Act), as the President deems appropriate.
`SEC. 5506. CHAIRMAN OF OECD DEVELOPMENT ASSISTANCE COMMITTEE.
  `(a) APPOINTMENT- The President may--
  `(1) appoint any United States citizen who is not an employee of the United
  States Government, or
  `(2) assign any United States citizen who is an employee of the United States
  Government, to serve as Chairman of the Development Assistance Committee
  (or any successor committee) of the Organization for Economic Cooperation
  and Development, upon election thereto by members of that Committee.
  `(b) COMPENSATION AND ALLOWANCES- An individual appointed or assigned
  under subsection (a) may receive such compensation and allowances as are
  authorized by the Foreign Service Act of 1980, not to exceed those authorized
  for a chief of mission (as defined in section 102(a)(3) of that Act), as the
  President deems appropriate. Such individual, if appointed under subsection
  (a)(1), shall be deemed to be an employee of the United States Government
  for purposes of chapters 81, 83, 84, 87, and 89 of title 5, United States
  Code. Such individual may also, in the President's discretion, receive any
  other benefit and perquisites available under this Act to chiefs of special
  missions or staffs outside the United States established under section 5103.
`SEC. 5507. ASSIGNMENT OF DOD PERSONNEL TO CIVIL OFFICES.
  `Notwithstanding section 973(b) of title 10, United States Code, personnel
  of the Department of Defense may be assigned or detailed to any civil
  office to carry out this Act.
`SEC. 5508. DISCRIMINATION AGAINST UNITED STATES PERSONNEL PROVIDING
ASSISTANCE.
  `It is the Sense of the Congress that--
  `(1) the assignment of officers and employees of the  United States to carry
  out any assistance program funded under this Act in any foreign country,
  should not take into account the race, religion, national origin, or sex
  of any such officer or employee, and such assignments should be made solely
  on the basis of ability and relevant experience.
  `(2) assistance under this Act should not be furnished to any foreign
  country, the laws, regulations, official policies, or governmental practices
  of which prevent any  United States person (as defined in section 7701(a)(30)
  of the Internal Revenue Code of 1954) from participating in the furnishing of
  assistance under this Act on the basis of race, religion, national origin,
  or sex.
`CHAPTER 6--DEFINITIONS AND MISCELLANEOUS PROVISIONS
`SEC. 5601. DEFINITIONS.
  `(a) TYPES OF ASSISTANCE- For purposes of this Act and any other provision
  of law relating to assistance under this Act, the following terms have
  the following meanings:
  `(1) ANTITERRORISM ASSISTANCE- The term `antiterrorism assistance' means
  assistance under chapter 7 of title II.
  `(2) DEVELOPING COUNTRY- The term `developing country' includes advanced
  developing country.
  `(3) DEVELOPMENT ASSISTANCE- The term `development assistance' means
  assistance under chapters 1 and 2 of title I.
  `(4) ECONOMIC ASSISTANCE- The term `economic assistance' means assistance
  under title I other than chapter 4; it does not include assistance under
  chapters 6 and 7 of title II.
  `(5) ECONOMIC SUPPORT ASSISTANCE- The term `economic support assistance'
  means assistance under chapter 3 of title I.
  `(6) FOREIGN MILITARY FINANCING- The term `foreign military financing'
  means assistance furnished with funds made available to carry out chapter
  2 of title II.
  `(7) INTERNATIONAL DISASTER ASSISTANCE- The term `international disaster
  assistance' means assistance under chapter 6 of title I.
  `(8) INTERNATIONAL MILITARY EDUCATION AND TRAINING- The term `international
  military education and training' means assistance under chapter 5 of title
  II; it does not include military education and training under chapter 2
  of title II.
  `(9) MILITARY ASSISTANCE- The term `military assistance' means assistance
  under title II; however, it does not include assistance under chapters 6
  and 7 of that title.
  `(10) NARCOTICS CONTROL ASSISTANCE- The term `narcotics control assistance'
  means assistance under chapter 4 of title I.
  `(b) DEFINITIONS APPLICABLE TO THE ACT GENERALLY- For purposes of this
  Act and any other provision of law relating to assistance under this Act,
  the following terms have the following meanings:
  `(1) AGENCY OF THE UNITED STATES GOVERNMENT- The term `agency of the United
  States Government' includes any agency, department, board, wholly or partly
  owned corporation, instrumentality, commission, or establishment of the
  United States Government.
  `(2) FUNCTION- The term `function' includes any duty, obligation, power,
  authority, responsibility, right, privilege, discretion, or activity.
  `(3) GROSS VIOLATIONS OF INTERNATIONALLY RECOGNIZED HUMAN RIGHTS- The term
  `gross violations of internationally recognized human rights' includes
  torture or cruel, inhuman, or degrading treatment or punishment, prolonged
  detention without charges and trial, causing the disappearance of persons
  by the abduction and clandestine detention of those persons, and other
  flagrant denial of the right to life, liberty, or the security of person.
  `(4) INCLUDES- The term `includes' means includes but is not limited to.
  `(5) OFFICER OR EMPLOYEE- The term `officer or employee' means civilian
  personnel of the United States Government and members of the Armed Forces.
  `(6) NONNUCLEAR-WEAPON STATE- The term `nonnuclear-weapon state' means any
  country which is not a nuclear-weapon state, as defined in article IX(3)
  of the Treaty on the Non-Proliferation of Nuclear Weapons.
  `(7) UNITED STATES- The term `United States', when used in the geographic
  sense, includes the Commonwealth of Puerto Rico, the Commonwealth of the
  Northern Mariana Islands, Guam, American Samoa, the Virgin Islands, and
  any other territory or possession of the United States.
  `(8) MAJOR ILLICIT DRUG PRODUCING COUNTRY- The term `major illicit drug
  producing country' means a country producing five metric tons or more of
  opium or opium derivative during a fiscal year or producing five hundred
  metric tons or more of coca or marijuana (as the case may be) during a
  fiscal year.
  `(9) MAJOR DRUG TRANSIT COUNTRY- The term `major drug transit country'
  means a country--
  `(A) that is a significant direct source of illicit narcotic or psychotropic
  drugs or other controlled substances significantly affecting the United
  States;
  `(B) through which are transported such drugs or substances; or
  `(C) through which significant sums of drug-related profits or monies are
  laundered with the knowledge or complicity of the government.
  `(10) NARCOTIC AND PSYCHOTROPIC DRUGS AND OTHER CONTROLLED SUBSTANCES-
  The term `narcotic and psychotropic drugs and other controlled substances'
  has the same meaning as is given by any applicable international narcotics
  control agreement or domestic law of the country or countries concerned.
  `(c) DEFINITIONS APPLICABLE PRIMARILY TO NONMILITARY ASSISTANCE- For
  purposes of this Act and any other provision of law relating to assistance
  under this Act, the following terms have the following meanings:
  `(1) AGRICULTURE- The term `agriculture' includes aquaculture and fisheries.
  `(2) COMMODITY- The term `commodity' includes any material, article, supply,
  goods, or equipment used for the purposes of furnishing assistance under
  title I.
  `(3) FARMERS- The term `farmers' includes fishermen and other persons
  employed in cultivating and harvesting food resources from salt and
  fresh waters.
  `(4) INSTITUTION OF HIGHER EDUCATION- The term `institution of higher
  education' has the same meaning that term is given by section 1201(a)
  of the Higher Education Act of 1965.
  `(5) SERVICES- The term `services' include any service, repair, training
  of personnel, or technical or other assistance or information used for
  the purposes of furnishing assistance under title I.
  `(d) DEFINITIONS APPLICABLE PRIMARILY TO MILITARY ASSISTANCE- For purposes
  of this Act and any other provision of law relating to assistant under
  this Act, the following terms have the following meanings:
  `(1) ARMED FORCES- The term `Armed Forces' means the Army, Navy, Air Force,
  Marine Corps, and Coast Guard of the United States.
  `(2) DEFENSE ARTICLE- The term `defense article'--
  `(A) includes--
  `(i) any weapon, weapons system, munition, aircraft, vessel, boat, or
  other implement of war;
  `(ii) any property, installation, commodity, material, equipment, supply,
  or goods used for the purposes of furnishing military assistance;
  `(iii) any machinery, facility, tool, material, supply, or other item
  necessary for the manufacture, production, processing, repair, servicing,
  storage, construction, transportation, operation, or use of any article
  listed in this paragraph; or
  `(iv) any component or part of any article listed in this paragraph; but
  `(B) does not include--
  `(i) merchant vessels; or
  `(ii) as defined by the Atomic Energy Act of 1954 (42 U.S.C. 2011), source
  material (except uranium depleted in the isotope 235 which is incorporated
  in defense articles solely to take advantage of high density or pyrophoric
  characteristics unrelated to radioactivity), byproduct material, special
  nuclear material, production facilities, utilization facilities, or atomic
  weapons or articles involving Restricted Data.
  `(3) DEFENSE INFORMATION- The term `defense information'--
  `(A) includes any document, writing, sketch, photograph, plan, model,
  specification, design, prototype, or other recorded or oral information
  relating to any defense article or defense service; but
  `(B) does not include Restricted Data as defined by the Atomic Energy Act
  of 1954, and data removed from the Restricted Data category under section
  142d of that Act.
  `(4) DEFENSE SERVICE- The term `defense service' includes any service,
  test, inspection, repair, publication, or technical or other assistance or
  defense information used for the purposes of furnishing military assistance,
  including--
  `(A) military education and training, and
  `(B) design and construction services (as defined in section 47(8) of the
  Defense Trade and Export Control Act).
  `(5) EXCESS DEFENSE ARTICLES- The term `excess defense articles' means the
  quantity of defense articles owned by the United States Government, and
  not procured in anticipation of military assistance or sales requirements,
  or pursuant to a military assistance or sales order, which is in excess
  of the Approved Force Acquisition Objective and Approved Force Retention
  Stock of all Department of Defense Components at the time such articles are
  dropped from inventory by the supplying agency for delivery to countries
  or international organizations under this Act.
  `(6) MAJOR DEFENSE EQUIPMENT- The term `major defense equipment' has the same
  meaning that term has under section 47(6) of the Arms Export Control Act.
  `(7) MAJOR NON-NATO ALLY- The term `major non-NATO ally' means a country
  which is designated in accordance with section 48 of the Defense Trade
  and Export Control Act as a major non-NATO ally for purposes of that Act
  or this Act.
  `(8) MILITARY EDUCATION AND TRAINING- The term `military education and
  training' includes formal or informal instruction of foreign students in the
  United States or overseas by officers or employees of the United States,
  contract technicians, contractors (including instruction at civilian
  institutions), or by correspondence courses, technical, educational, or
  information publications and media of all kinds, training aids, orientation,
  and military advice to foreign military units and forces.
  `(9) VALUE- The term `value' means--
  `(A) with respect to an excess defense article, the actual value of the
  article plus the gross cost incurred by the United States Government in
  repairing, rehabilitating, or modifying the article, except that for purposes
  of section 5201(d) such actual value shall not be taken into account;
  `(B) with respect to a nonexcess defense article delivered from inventory
  to a foreign country or international organization under this Act, the
  acquisition cost to the United States Government, adjusted as appropriate
  for condition and market value;
  `(C) with respect to a nonexcess defense article delivered from new
  procurement to a foreign country or international organization under this
  Act, the contract or production costs of such article;
  `(D) with respect to a defense service, the cost to the United States
  Government of such service; and
  `(E) with respect to military education and training under chapter 5 of
  title II or services provided under chapter 7 of title II of this Act,
  the additional costs that are incurred by the United States Government in
  furnishing such assistance.
`SEC. 5602. ACTIVITIES UNDER OTHER LAWS NOT AFFECTED.
  `Unless expressly provided to the contrary, provisions of this Act and
  other provisions applicable to foreign assistance shall not be construed to
  prohibit activities authorized by or conducted under the Peace Corps Act,
  the Mutual Educational and Cultural Exchange Act of 1961, the Export-Import
  Bank Act of 1945, the National Security Act of 1947, the Central Intelligence
  Agency Act of 1949, the Agricultural Act of 1949, the Agricultural Trade
  Development and Assistance Act of 1954, the Food for Progress Act of 1985,
  the Inter-American Foundation Act, the African-American Foundation Act,
  title 10 of the United States Code, any National Defense Authorization Act
  or Department of Defense Appropriations Act, or the Migration and Refugee
  Assistance Act of 1962, or commercial export promotion activities of the
  Department of Agriculture (including the Commodity Credit Corporation).'.
TITLE VI--TECHNICAL AND CONFORMING PROVISIONS
SEC. 601. EFFECTIVE DATE.
  Except as otherwise provided in this Act, the provisions of this Act shall
  take effect on October 1, 1991.
SEC. 602. SAVINGS PROVISIONS.
  (a) IN GENERAL- All actions taken under the authority of any provision of
  law repealed or modified by titles I through VI of this Act shall continue
  in full force and effect until modified by appropriate authority.
  (b) CERTAIN PRESIDENTIAL APPOINTEES- The repeal by this Act of any provision
  of the Foreign Assistance Act of 1961 providing for the appointment of
  an individual to a position by the President, by and with the advice and
  consent of the Senate, and the reenactment by this Act of that provision
  in substantively identical form does not require the reappointment of
  the individual holding that position on the effective date specified in
  section 601.
  (c) SECTION 124(c) AUTHORITY- For purposes of section 572 of the Foreign
  Operations, Export Financing, and Related Programs Appropriations Act, 1989
  (Public Law 100-461), section 124(c) of the Foreign Assistance Act of 1961,
  as in effect before the effective date specified in section 601 of this Act,
  shall be deemed to remain in effect on and after that date.
SEC. 603. RETENTION OF CERTAIN PROVISIONS FORMERLY IN THE FOREIGN ASSISTANCE
ACT.
  (a) FEDERAL ACT OF STATE DOCTRINE-
  (1) IN GENERAL- Notwithstanding any other provision of law, no court
  in the United States shall decline on the ground of the Federal Act of
  State doctrine to make a determination on the merits giving effect to
  the principles of international law in a case in which claim of title or
  other right to property is asserted by any party, including a foreign state
  (or a party claiming through such state), based upon (or traced through)
  a confiscation or other taking after January 1, 1959, by an Act of that
  State in violation of the principles of international law, including the
  principles of compensation and the other standards set out in section
  620(e)(1) of the Foreign Assistance Act of 1961 as in effect before the
  effective date of this section.
  (2) EXCEPTIONS- This subsection shall not be applicable--
  (A) in any case in which an act of a foreign state is not contrary to
  international law or with respect to a claim of title or other right to
  property acquired pursuant to an irrevocable letter of credit of not more
  than one hundred and eighty days, duration issued in good faith prior to
  the time of the confiscation or other taking; or
  (B) in any case with respect to which the President determines that
  application of the act of state doctrine is required in that particular
  case by the foreign policy interests of the United States and a suggestion
  to this effect is filed on his behalf in that case with the court.
  (b) ACCOUNTING AND VALUATION OF FOREIGN CURRENCIES-
  (1) AMENDMENT TO UNITED STATES CODE- Subchapter V of chapter 51 of title
  31, United States Code, is amended by inserting at the end the following:
  `(a) Under the direction of the President, the Secretary of the Treasury
  shall have responsibility for valuation and central accounting with respect
  to foreign credits (including currencies) owed to or owned by the United
  States. In order to carry out such responsibility, the Secretary shall
  issue regulations binding upon all agencies of the United States Government.
  `(b) The Secretary of the Treasury shall have sole authority to establish
  for all foreign currencies or credits the exchange rates at which such
  currencies are to be reported by all agencies of the Government.'.
  (2) CONFORMING AMENDMENT- The table of sections for subtitle IV of such
  title is amended by inserting after the item relating to section 5155
  the following:
`5156. Accounting and valuation of foreign currencies.'.
  (c) VALUATION OF EXPROPRIATED PROPERTY-
  (1) VALUATION- If the President requests such an evaluation, the Foreign
  Claims Settlement Commission is authorized to evaluate the value of the
  property which is the subject of an action described in section 4201(a)(3)
  of the Foreign Assistance Act of 1961 and render an advisory report with
  respect to the value of such property to the President.
  (2) DEFINITION OF UNITED STATES PERSON- For purposes of section (a)(3), the
  term `United States person' means a United States citizen or a corporation,
  partnership, or association at least 50 percent beneficially owned by
  United States citizens.
  (d)  Participation in Foreign Police Actions-
  (1) PROHIBITION ON EFFECTING AN ARREST- No officer or employee of the
  United States may directly effect an arrest in any foreign country as part
  of any foreign police action with respect to narcotics control efforts,
  notwithstanding any other provision of law.
  (2) EXCEPTIONS- Paragraph (1) does not prohibit an officer or employee of
  the United States--
  (A) with the approval of the United States chief of mission, from being
  present when foreign officers are effecting an arrest or from assisting
  foreign officers who are effecting an arrest.
  (B) from taking direct action to protect life or safety if exigent
  circumstances arise which are unanticipated and which pose an immediate
  threat to United States officers or employees, officers or employees of
  a foreign government, or members of the public.
  (3) MARITIME LAW ENFORCEMENT- With the agreement of a foreign country,
  paragraph (1) does not apply with respect to maritime law enforcement
  operations in the territorial sea of that country.
  (4) INTERROGATIONS- No officer or employee of the United States may
  interrogate or be present during the interrogation of any United States
  person arrested in any foreign country with respect to narcotics control
  efforts without the written consent of such person.
  (5) EXCEPTION FOR STATUS OF FORCES ARRANGEMENTS- This section does not
  apply to the activities of the United States Armed Forces in carrying out
  their responsibilities under applicable Status of Forces arrangements.
  (6) DEFINITION- For purposes of this subsection, the term `legal and law
  enforcement measures' means--
  `(A) the enactment and implementation of laws and regulations or the
  implementation of existing laws and regulations to provide for the
  progressive control, reduction, and gradual elimination of the illicit
  cultivation, production, processing, transportation, and distribution of
  narcotic drugs and other controlled substances; and
  `(B) the effective organization, staffing, equipping, funding, and activation
  of those governmental authorities responsible for narcotics control.'.
SEC. 604. CONFORMING AMENDMENTS.
  (a) ANGLO-IRISH AGREEMENT SUPPORT ACT- The Anglo-Irish Agreement Support
  Act of 1986 is amended--
  (1) in section 4(a)(1), by striking out `108' and inserting in lieu thereof
  `1201';
  (2) in section 4(a)(2), by striking out `221' and all that follows through
  `Guaranty' and inserting in lieu thereof `1202 of that Act (relating to
  the Housing and Urban Development Guarantee';
  (3) in section 4(a)(3)--
  (A) by striking out `Title IV of chapter 2 of part I' and inserting in
  lieu thereof `chapter 1 of title III'; and
  (B) by striking out `paragraph (2) of the second undesignated paragraph
  of section 231' and inserting in lieu thereof `section 3101(b)(2)';
  (4) in section 4(a)(4)--
  (A) by striking out `Section 661' and inserting in lieu thereof `chapter
  2 of title III'; and
  (B) by striking out `Program' and inserting in lieu thereof `Agency'; and
  (5) in section 5(a), by striking out `531(e) and 660(a)' and inserting in
  lieu thereof `1123 and 4202'.
  (b) NARCOTICS CONTROL TRADE ACT- The Narcotics Control Trade Act (which
  is title VIII of the Trade Act of 1974) is amended--
  (1) section 802(b) is amended to read as follows--
  `(b) Subsection (a) shall apply with respect to a country for which
  assistance is prohibited under section 4201(a)(7) of the Foreign Assistance
  Act of 1961.';
  (c) INTERNATIONAL SECURITY AND DEVELOPMENT COOPERATION ACT OF 1985- Section
  132 of the International Security and Development Cooperation Act of 1985
  is amended by striking out `Arms' each place it appears in subsections (b),
  (c), and (d) and inserting in lieu thereof `Defense Trade and'.
  (d) PUBLIC LAW 480- The Agricultural Trade Development and Assistance Act
  of 1954 is amended--
  (1) in section 304 by striking out `section 104(c)(2)' and all that follows
  through `Fund', and inserting in lieu thereof `section 1101(d)(2) of the
  Foreign Assistance Act of 1961';
  (2) in section 306 by striking out `section 104(c)(2)' and all that follows
  through `Fund', and inserting in lieu thereof `section 1101(d)(2) of the
  Foreign Assistance Act of 1961'; and
  (3) in section 414 by striking out `section 481(i)(2)' and inserting in
  lieu thereof `section 5601(b)(8)'.
  (e) EXPORT ADMINISTRATION ACT- The Export Administration Act of 1979
  is amended--
  (1) in section 5(b), by striking out `set forth in section 620(f)' and
  inserting in lieu thereof `on the list established pursuant to section
  4201(d)'; and
  (2) in section 6(k)(2), by striking out `section 502B' and inserting in
  lieu thereof `sections 4201 (a)(2) and (e) and section 4302(a)'.
  (f) TITLE 5, UNITED STATES CODE- Subchapter II of chapter 53 of title 5,
  United States Code, is amended--
  (1) in section 5314, by striking out `Director, Institute for Scientific
  and Technological Cooperation.';
  (2) in section 5315, by striking out `Deputy Director, Institute for
  Scientific and Technological Cooperation.'; and
  (3) in section 5316, by striking out `Additional officers, Institute for
  Scientific and Technological Cooperation (2).'.
  (g) TITLE 10, UNITED STATES CODE- Title 10, United States Code, is amended--
  (1) in section 114(c), by striking out `Arms' and inserting in lieu thereof
  `Defense Trade and';
  (2) in section 130(a), by striking out `Arms' and inserting in lieu thereof
  `Defense Trade and';
  (3) in section 2208(i)(3), by striking out `Arms' and inserting in lieu
  thereof `Defense Trade and';
  (4) in section 2344(b)(2)(B), by striking out `Arms' and inserting in lieu
  thereof `Defense Trade and';
  (5) in section 2350b, by striking out `Arms' each place it appears in
  subsections (a)(1), (b), (c)(1), and (d)(3) and inserting in lieu thereof
  `Defense Trade and';
  (6) in section 4542(d), by striking out `Arms' and inserting in lieu thereof
  `Defense Trade and'; and
  (7) in section 7307(b)(1), by striking out `Arms' and inserting in lieu
  thereof `Defense Trade and'.
  (h) DEPARTMENT OF DEFENSE AUTHORIZATION ACT, 1987- Section 2350d of title
  10, United States Code, is amended--
  (1) in the subsection caption by striking out `Arms' and inserting in lieu
  thereof `Defense Trade and'; and
  (2) in the text, by striking out `Arms' and inserting in lieu thereof
  `Defense Trade and'.
  (i) EXPORT-IMPORT BANK ACT OF 1945- Section 2(b)(2)(B)(ii) of the
  Export-Import Bank Act of 1945 is amended by striking from the list at
  the end thereof `Czechoslovakia Socialist Republic.', `German Democratic
  Republic.', `Hungarian People's Republic.', `People's Republic of Bulgaria.',
  `Polish People's Republic.', `Socialist Federal Republic of Yugoslavia.',
  and `Socialist Republic of Romania.'.
  (j) CONFORMING REFERENCES- Except to the extent that the context requires
  otherwise any reference in any provision of law enacted before the effective
  date specified in section 601--
  (1) to credits under section 23 of the Arms Export Control Act shall be
  deemed to be a reference to assistance on credit terms under chapter 2 of
  title II of the Foreign Assistance Act of 1961;
  (2) to chapter 1 of part I of the Foreign Assistance Act of 1961 shall be
  deemed to be a reference to chapter 1 of title I of that Act;
  (3) to chapter 8 of part I of the Foreign Assistance Act of 1961 shall be
  deemed to be a reference to chapter 4 of title I of that Act;
  (4) to chapter 2 of part II of the Foreign Assistance Act of 1961 shall
  be deemed to be a reference to chapter 2 of title II of that Act;
  (5) to chapter 4 of part II of the Foreign Assistance Act of 1961 shall
  be deemed to be a reference to chapter 3 of title I of that Act;
  (6) to chapter 5 of part II of the Foreign Assistance Act of 1961 shall
  be deemed to be a reference to chapter 5 of title II of that Act;
  (7) to chapter 8 of part II of the Foreign Assistance Act of 1961 shall
  be deemed to be a reference to chapter 7 of title II; and
  (8) to any other provision of the Foreign Assistance Act of 1961 shall
  be deemed to be a reference to the corresponding provision of that Act as
  amended by this Act.
SEC. 605. REPEAL OF OBSOLETE PROVISIONS.
  (a) 1988 OPIC ACT- The Overseas Private Investment Corporation Amendments Act
  of 1988 (as enacted by reference by section 555 of the Foreign Operations,
  Export Financing, and Related Programs Appropriations Act, 1989) is repealed.
  (b) 1988 INTERNATIONAL NARCOTICS CONTROL ACT- The International Narcotics
  Control Act of 1988 is repealed.
  (c) NARCOTICS CONTROL TRADE ACT- Sections 802(e) and 804 of the Narcotics
  Control Trade Act (which is title VIII of the Trade Act of 1974) are
  repealed.
  (d) 1986 DRUG ACT- The International Narcotics Control Act of 1986 (which
  is title II of the Anti-Drug Abuse Act of 1986) is repealed.
  (e) 1986 ASSISTANCE ACT- The Special Foreign Assistance Act of 1986 is
  repealed except for section 1 and section 204.
  (f) 1985 ASSISTANCE ACT- The International Security and Development
  Cooperation Act of 1985 is repealed except for section 1, section 131,
  section 132, section 202(c), section 504, section 505, part B of title V
  (other than section 558 and section 559), section 1302, section 1303,
  and section 1304.
  (g) 1985 JORDAN SUPPLEMENTAL ACT- The Jordan Supplemental Economic Assistance
  Authorization Act of 1985 is repealed.
  (h) 1985 AFRICAN FAMINE ACT- The African Famine Relief and Recovery Act
  of 1985 is repealed.
  (i) 1983 ASSISTANCE ACT- The International Security and Development
  Assistance Authorization Act of 1983 is repealed.
  (j) 1983 LEBANON ASSISTANCE ACT- The Lebanon Emergency Assistance Act of
  1983 is repealed.
  (k) 1981 ASSISTANCE ACT- The International Security and Development
  Cooperation Act of 1981 is repealed except for section 1, section 709,
  section 714.
  (l) 1980 ASSISTANCE ACT- The International Security and Development
  Cooperation Act of 1980 is repealed except for section 1, section 110,
  section 315, and title V.
  (m) 1979 DEVELOPMENT ASSISTANCE ACT- The International Development
  Cooperation Act of 1979 is repealed.
  (n) 1979 SECURITY ASSISTANCE ACT- The International Security Assistance
  Act of 1979 is repealed.
  (o) 1979 SPECIAL SECURITY ASSISTANCE ACT- The Special International Security
  Assistance Act of 1979 is repealed.
  (p) 1978 DEVELOPMENT ASSISTANCE ACT- The International Development and
  Food Assistance Act of 1978 is repealed, except for section 1, title IV,
  and section 603(a)(2).
  (q) 1978 SECURITY ASSISTANCE ACT- The International Security Assistance
  Act of 1978 is repealed.
  (r) 1977 DEVELOPMENT ASSISTANCE ACT- The International Development and Food
  Assistance Act of 1977 is repealed except for section 1, section 132(b),
  and section 133.
  (s) 1977 SECURITY ASSISTANCE ACT- The International Security Assistance
  Act of 1977 is repealed.
  (t) 1976 SECURITY ASSISTANCE ACT- The International Security Assistance and
  Arms Export Control Act is repealed except for section 1, section 201(b),
  section 212(b), section 601, and section 608.
  (u) 1975 DEVELOPMENT ASSISTANCE ACT- The International Development and
  Food Assistance Act of 1975 is repealed.
  (v) 1975 BIB ACT- Public Law 94-104 is repealed.
  (w) 1974 ASSISTANCE ACT- The Foreign Assistance Act of 1974 is repealed.
  (x) 1973 EMERGENCY ASSISTANCE ACT- The Emergency Security Assistance Act
  of 1973 is repealed.
  (y) 1973 ASSISTANCE ACT- The Foreign Assistance Act of 1973 is repealed.
  (z) 1973 DEPARTMENT OF STATE APPROPRIATIONS AUTHORIZATION ACT- Section 13 of
  the Department of State Appropriations Authorization Act of 1973 is repealed.
  (aa) 1971 ASSISTANCE ACT- The Foreign Assistance Act of 1971 is repealed.
  (bb) 1971 SPECIAL ASSISTANCE ACT- The Special Foreign Assistance Act of
  1971 is repealed.
  (cc) 1971 FMS ACT- The Act entitled `An Act to amend the Foreign Military
  Sales Act, and for other purposes', approved January 12, 1971 (Public Law
  91-672), is repealed.
  (dd) 1969 ASSISTANCE ACT- The Foreign Assistance Act of 1969 is repealed
  except for the first section and part IV.
  (ee) 1968 ASSISTANCE ACT- The Foreign Assistance Act of 1968 is repealed.
  (ff) 1964 ASSISTANCE ACT- The Foreign Assistance Act of 1964 is repealed.
  (gg) LATIN AMERICAN DEVELOPMENT ACT- The Latin American Development Act
  is repealed.
  (hh) 1959 MUTUAL SECURITY ACT- The Mutual Security Act of 1959 is repealed.
  (ii) 1954 MUTUAL SECURITY ACT- Section 402 and section 417 of the Mutual
  Security Act of 1954 are repealed.
  (jj) 1979 REORGANIZATION PLAN- Reorganization Plan No. 2 of 1979 is repealed.
TITLE VII--SPECIAL ASSISTANCE INITIATIVES
CHAPTER 1--DEVELOPMENT FUND FOR AFRICA
SEC. 701. DEVELOPMENT ASSISTANCE FOR SUB-SAHARAN AFRICA.
  (a) AUTHORITY TO FURNISH ASSISTANCE- Project and program assistance are
  authorized to be furnished for development in sub-Saharan Africa.
  (b) Purpose of Assistance-
  (1) PURPOSE- The purpose of assistance under this section shall be to help
  the poor majority of men and women in sub-Saharan Africa to participate
  in a process of development through economic growth that is equitable,
  participatory, environmentally sustainable and self-reliant.
  (2) USE OF ASSISTANCE TO ENCOURAGE PRIVATE SECTOR DEVELOPMENT- Assistance
  provided under this section should, in a manner consistent with paragraph
  (1), be used to promote sustained economic growth, encourage private sector
  development, promote individual initiatives, and help to reduce the role
  of central governments in areas more appropriate for the private sector.
  (c) APPLICATION OF FOREIGN ASSISTANCE ACT GOALS- Assistance under this
  section shall be provided consistent with the goals set forth in section
  1 of the Foreign Assistance Act of 1961.
  (d) Private Voluntary Organizations-
  (1) CONSULTATION TO ENSURE LOCAL PERSPECTIVES- The local-level perspectives
  of the rural and urban poor in sub-Saharan Africa, including women,
  should be taken into account during the planning process for project and
  program assistance under this section. In order to gain that perspective
  consultations should be undertaken with African, United States, and other
  private voluntary organizations which have demonstrated effectiveness in
  or commitment to the promotion of local, grassroots activities on behalf
  of development in sub-Saharan Africa as described in subsection (b).
  (2) DEFINITION OF PRIVATE VOLUNTARY ORGANIZATION- For purposes of this
  section, the term `private voluntary organization' includes (in addition to
  entities traditionally considered to be private voluntary organizations)
  cooperatives, credit unions, trade unions, women's groups, nonprofit
  development research institutions, and indigenous local organizations,
  which are private and nonprofit.
  (e) LOCAL INVOLVEMENT IN PROJECT IMPLEMENTATION- Local people, including
  women, should be closely consulted and involved in the implementation of
  projects under this section that have a local focus.
  (f) PARTICIPATION OF AFRICAN WOMEN- The President should ensure that
  development activities assisted under this section incorporate a significant
  expansion of the participation (including decision-making) and integration
  of African women in each of the critical sectors described in subsection (h).
  (g) Types of Assistance Authorized-
  (1) PROJECTS AND PROGRAMS TO ADDRESS CRITICAL SECTORAL PRIORITIES- Assistance
  under this section shall emphasize primarily projects and programs to address
  critical sectoral priorities for development described in subsection (h).
  (2) Reform of economic policies-
  (A) USE OF PROGRAM ASSISTANCE- Assistance under this section may include
  program assistance to promote reform of sectoral economic policies affecting
  long-term development described in sub-Saharan Africa as described in
  subsection (b), with primary emphasis on reform of economic policies to
  support the critical sectoral priorities described in subsection (h).
  (B) PROTECTION OF VULNERABLE GROUPS- Assisted policy reforms shall also
  include provisions to protect vulnerable groups (especially poor, isolated,
  and female farmers, children (including displaced children) and the urban
  poor) and long-term environmental interests from foreseeable negative
  consequences of the reforms.
  (3) OTHER ASSISTANCE- Funds made available to carry out this section that
  are not used to address the critical sectoral priorities for long-term
  development described in subsection (h) shall be used to furnish assistance
  in accordance with section 1101 of the Foreign Assistance Act of 1961.
  (h) CRITICAL SECTORAL PRIORITIES- The critical sectoral priorities for
  long-term development as described in subsection (b) are the following:
  (1) AGRICULTURAL PRODUCTION AND NATURAL RESOURCES-
  (A) AGRICULTURAL PRODUCTION- Increasing agricultural production in ways that
  protect or restore the natural resource base, especially food production,
  including through agricultural policy changes, agricultural research
  (including participatory research directly involving small farmers)
  and extension, development and promotion of agriculture marketing
  activities, credit facilities, and appropriate production packages,
  and the construction and improvement of needed production-related
  infrastructure such as farm-to-market roads, small-scale irrigation,
  and rural electrification. Emphasis shall be given to promoting increased
  equity in rural income distribution, recognizing the role of small farmers.
  (B) NATURAL RESOURCE BASE- Maintaining and restoring the renewable natural
  resource base in ways which increase agricultural production, including
  through the following:
  (i) Support for small-scale, affordable, resource-conserving, low-risk local
  projects, using appropriate technologies (including traditional agricultural
  methods) suited to local environmental, resource, and climatic conditions,
  and featuring close consultation with and involvement of local people at
  all stages of project design and implementation. Emphasis shall be given
  to grants for African local government organizations, international or
  African nongovernmental organizations, and United States private voluntary
  organizations.
  (ii) Support for efforts at national and regional levels to provide technical
  and other support for projects of the kinds described in clause (i) and
  to stengthen the capacities of African countries to provide effective
  extension and other services in support of environmentally sustainable
  increases in food production.
  (iii) Support for special training and education efforts to improve the
  capacity of countries in sub-Saharan Africa to manage their own environments
  and natural resources.
  (iv) Support for low-cost desalination activities in order to increase
  the availability of fresh water sources in sub-Saharan Africa.
  (2) HEALTH- Improving health conditions, with special emphasis on meeting
  the health needs of mothers and children (including displaced children)
  through the establishment of primary health care systems that give priority
  to preventive health and that will be ultimately self-sustaining.
  (3) VOLUNTARY FAMILY PLANNING SERVICES- Providing increased access to, and
  stimulating the demand for, voluntary family planning services, including
  encouragement of private, community, and local government initiatives.
  (4) EDUCATION- Improving the relevance, equity, and efficiency of education,
  with special emphasis on improving primary education.
  (5) INCOME-GENERATING OPPORTUNITIES- Developing income-generating
  opportunities for the unemployed and underemployed in urban and rural areas
  through, among other things, support for off-farm employment opportunities
  in micro- and small-scale labor-intensive enterprises.
  (i) MINIMUM LEVELS OF ASSISTANCE FOR CERTAIN CRITICAL SECTORS- The President
  should target the equivalent of 10 percent of the amount appropriated for
  each fiscal year to carry out this chapter for each of the following:
  (1) The activities described in subsection (h)(1)(B), including identifiable
  components of agricultural production projects.
  (2) The activities described in subsection (h)(2).
  (3) The activities described in subsection (h)(3).
  (j) EFFECTIVE USE OF ASSISTANCE- Assistance provided under this section
  should be concentrated in countries that will make the most effective use
  of such assistance in order to fulfill the purpose specified in subsection
  (b), especially those countries (including those of the Sahel region)
  having the greatest need for outside assistance.
  (k) PROMOTION OF REGIONAL INTEGRATION- Assistance under this section should,
  to the extent consistent with this section, include assistance to promote
  the regional and subregional integration of African production structures,
  markets, and infrastructure.
  (l) DONOR COORDINATION MECHANISM- Funds made available to carry out this
  section may be used to assist the governments of countries in sub-Saharan
  Africa to increase their capacity to participate effectively in donor
  coordination mechanisms at the country, regional, and sector levels.
  (m) Support for SADCC Projects-
  (1) AUTHORITY TO PROVIDE ASSISTANCE- Funds made available to carry out this
  section may be used to assist sector projects, in the sectors specified
  in paragraph (2) of this section, that are supported by the Southern
  Africa Development Coordination Conference (SADCC) to enhance the economic
  development of the member states forming that regional institution.
  (2) SECTORS- The sectors with respect to which assistance may be provided
  under this subsection may include the following: transportation; manpower
  development; agriculture and natural resources; energy (including the
  improved utilization of electrical power sources which already exist in the
  member states and offer the potential to swiftly reduce the dependence of
  those states on South Africa for electricity); and industrial development
  and trade (including private sector initiatives).
  (3) RELATION TO DEVELOPMENT POLICIES AND AUTHORITIES- To the maximum extent
  feasible, the assistance authorized by this subsection shall be provided
  consistent with the policies and authorities contained in the preceding
  subsections of this section.
  (4) RELATIONSHIP TO CERTAIN PROVISIONS OF LAW- Assistance may be furnished
  for activities under this subsection notwithstanding section 4203 of
  the Foreign Assistance Act of 1961 or any similar provisions of law that
  prohibit providing assistance to countries in default on obligations owed
  to the United States.
  (n) South Africa-
  (1) Assistance under this section, and under chapter 3 of title I of the
  Foreign Assistance Act of 1961, may be provided for South Africa as follows:
  (A) for grants to nongovernmental organizations in South Africa promoting
  political, economic, social, juridical, and humanitarian efforts to foster
  a just society and help the victims of apartheid;
  (B) for direct legal and other assistance to political detainees and
  prisoners and their families, including the investigation of the killing of
  protesters and prisoners; and to provide support for actions of black-led
  community organizations to resist, through nonviolent means, the enforcement
  of apartheid policies;
  (C) for activities, notwithstanding any other provision of law, that are
  consistent with the objective of a majority of South Africans for an end to
  the apartheid system and the establishment of a society based on nonracial
  principles, and which may include scholarships, assistance to promote the
  participation of disadvantaged South Africans in trade unions and private
  enterprise and alternative education and community development programs.
  (2) LIMITATIONS AND AUTHORITIES- Grants may be made under paragraphs (1)
  (A) and (B) only for organizations whose character and membership reflect
  the objective of a majority of South Africans for an end to the apartheid
  system of separate development and for interracial cooperation and justice.
  (o) Relation to Other Authorities-
  (1) CENTRAL PROGRAMS- The authority granted by this section to provide
  assistance for development in sub-Saharan Africa is not intended to preclude
  the use of other authorities for that purpose. Centrally funded programs
  which benefit sub-Saharan Africa shall continue to be funded under the
  development assistance program under this title.
  (2) FOREIGN ASSISTANCE ACT OF 1961- Except to the extent inconsistent with
  this chapter--
  (A) assistance under this chapter shall be considered to be economic
  assistance under title I of the Foreign Assistance Act of 1961 for purposes
  of making available the provisions contained in that or other Acts, except
  that the provisions of section 4304 of such Act shall not be applicable
  to assistance under this chapter;
  (B) the provisions of section 5402 of the Foreign Assistance Act of 1961,
  and similar provisions of law relating to the procurement of goods and
  services, shall not apply with respect to goods and services procured for
  use in carrying out this chapter.
SEC. 702. AUTHORIZATION OF APPROPRIATIONS FOR ASSISTANCE FOR SUB-SAHARAN
AFRICA.
  There are authorized to be appropriated to the President to carry out section
  701, $800,000,000 for fiscal year 1992. Amounts authorized to be appropriated
  by this section are authorized to remain available until expended.
SEC. 703. REPORTS AND EVALUATIONS.
  (a) ANNUAL CONGRESSIONAL PRESENTATION DOCUMENTS- The President shall submit
  congressional presentation documents regarding programs under this chapter
  on the same basis as the President submits such documents under section 4301
  of the Foreign Assistance Act of 1961 regarding programs under chapters 2
  and 3 of that Act. In addition, the President shall include a description
  of the progress made during the previous fiscal year in carrying out this
  chapter in three countries in sub-Saharan Africa which represent differing
  economic situations and levels of programs. This description shall include--
  (1) the nature and extent of consultation to ensure local perspectives as
  described in subsections (d)(1) and (e) of section 701;
  (2) the degree of involvement of local people in the implementation of
  projects having a local focus;
  (3) the extent to which there has been an expansion of the participation
  and integration of African women in each of the critical sectors specified
  in subsection (h) of section 701;
  (4) program assistance provided, including the amounts obligated, the
  criteria used for assisting reforms, and the provisions made pursuant
  to section 701(g)(2)(B) to protect vulnerable groups from the possible
  negative consequences of the reforms; and
  (5) a description of the assistance for the critical sectoral priorities
  specified in section 701(h), by sector, including the amounts obligated.
  (b) EVALUATIONS- It is the sense of the Congess that there should be periodic
  evaluations of the progress of the administering agency in achieving the
  purpose specified in section 701(b).
CHAPTER 2--ASSISTANCE FOR EASTERN EUROPE
SEC. 711. UNITED STATES POLICY REGARDING EASTERN EUROPE.
  (a) IN GENERAL- It should be the policy of the United States to facilitate
  the reintegration of the East European countries into the community of
  democratic nations and to end the artificial division of Europe. United
  States programs can continue to make a substantial contribution to these
  objectives by building on earlier initiatives, including important ongoing
  initiatives that were established under the Support for East European
  Democracy (SEED) Act of 1989. In furtherance of these objectives, the
  United States should support economic and political reform in East European
  countries, both through--
  (1) the provision of assistance to governments and private individuals
  and entities in those countries, and
  (2) the promotion of a United States commercial presence in those countries.
  (b) ASSISTANCE- Pursuant to subsection (a)(1), the United States should
  provide assistance for eligible East European countries under the authorities
  of this Act to the extent that such countries are taking steps toward--
  (1) political pluralism, based on progress toward free and fair elections
  and a multiparty political system;
  (2) economic reform, based on progress toward a market-oriented economy;
  (3) respect for internationally recognized human rights; and
  (4) a willingness to build a friendly relationship with the United States.
  (c) DEFINITION OF `ELIGIBLE EAST EUROPEAN COUNTRY'-
  (1) For purposes of this Act, the term `eligible East European country'
  means--
  (A) Poland, Hungary, Czechoslovakia, Bulgaria, Romania; and
  (B) any other East European country if the President has determined that
  such country is taking the steps described in subsection (b).
  (2) Yugoslavia shall also be considered to be an `eligible East European
  country' for purposes of this Act, unless the President determines that
  it is not taking the steps described in subsection (b).
SEC. 712. BASIC OBJECTIVES OF ASSISTANCE.
  (a) BASIC OBJECTIVES- In furtherance of the policy contained in section
  711, assistance programs authorized by this Act shall have as their
  purposes the enhancement of the ability of the countries of Eastern Europe
  and Yugoslavia to address the following two interrelated and mutually
  reinforcing objectives.
  (1) PROMOTION OF DEMOCRACY- Fostering political pluralism, the development of
  open and independent media, and the establishment of an open, accessible,
  fair, and predictable rule of law that values individual liberty and
  respect for individual property, and that facilitates the functioning of
  democratic and free market systems.
  (2) ENCOURAGEMENT OF FREE MARKET SYSTEMS- Fostering market-oriented
  economies and free enterprise based on the principle of private ownership
  of property, consistent with sound environmental policies, thereby
  facilitating and expanding the participation of the local private sector
  in the democratization process and enhancing the ability of the private
  sector in the United States and other free market countries to participate
  in that process.
  (b) DEMOCRACY- Democratic development, political pluralism, and respect
  for internationally recognized human rights are intrinsically linked to
  economic and social progress. It is in the United States interest and in
  keeping with our democratic tradition to foster the spread of democratic
  values and aspirations and universal respect for civil and political
  liberties. While this is true worldwide, it is especially important in
  the newly emerging democratic nations within Eastern Europe and Yugoslavia.
  (1) ELABORATION OF OBJECTIVE- Activities in furtherance of this objective
  would promote--
  (A) the ability of all citizens to organize and associate freely and
  independently of government;
  (B) the ability of all citizens to speak and travel freely;
  (C) the right to choose freely one's government, to hold that government
  accountable, and to participate in political life;
  (D) the full observance of internationally recognized human rights; and
  (E) the growth of indigenous nongovernmental organizations that are
  committed to democratic value and active in the promotion of pluralism.
  (2) TYPES OF ASSISTANCE- In pursuing the above objective the President is
  authorized to undertake actions such as--
  (A) assisting in election activities to ensure open and free elections
  and nationwide dissemination of information;
  (B) strengthening newly established democratic institutions such as
  democratically elected legislatures and local governments, independent
  judiciaries, government administrative entities, and unions; and enhancing
  the effectiveness and impartiality of the administration of justice and
  law enforcement;
  (C) strengthening nongovernmental organizations such as professional
  associations, indigenous private voluntary organizations, and independent
  institutions and foundations;
  (D) encouraging involvement of United States nongovernmental agencies,
  foundations and institutions to participate in promoting democratic
  pluralism within these countries;
  (E) promoting cultural and educational exchanges;
  (F) promoting the establishment of open and independent media; and
  (G) promoting democratic civilian control over its military and law
  enforcement institutions.
  (c) FREE MARKET SYSTEMS- Establishment of a free enterprise, market economy
  is a key component of long-term sustainable growth of any nation. To be
  sustainable, such economic growth also must be environmentally sound. As
  the Eastern European countries and Yugoslavia abandon government-controlled
  pricing and allocation systems, they will be in a position to benefit from
  the experience of the United States and other democracies in operating
  market-oriented economies.
  (1) ELABORATION OF OBJECTIVE- Promoting a free market system covers a
  broad spectrum of activities which would include--
  (A) establishing policies, legal and regulatory frameworks, and financial
  institutions and markets to address the structural problems inhibiting
  the development of free market economies;
  (B) developing the indigenous private sector, mobilizing United States
  private sector investment and trade, and advancing United States business
  interests;
  (C) developing human resources required by free market economies;
  (D) providing support for the transition to market-oriented economic
  systems and a private agricultural sector through the provision of essential
  goods and services such as farm equipment, feed grains, food assistance,
  and fertilizers;
  (E) improving environmental conditions;
  (F) providing for labor market reform;
  (G) providing for a social safety net to protect the health and welfare
  of persons most in need; and
  (H) providing for the active engagement of the United States private sector
  in technical assistance efforts and infrastructure development projects,
  and encouraging the development of United States investment in the region.
  (2) TYPES OF ASSISTANCE- In pursuing the above objective, the President
  is authorized or encouraged to undertake such actions as--
  (A) support for International Monetary Fund and International Bank for
  Reconstruction and Development agreements;
  (B) support for participation in other multilateral institutions and in
  stabilization and structural adjustment programs, and for debt relief;
  (C) provision of Most Favored Nation status and benefits under the
  Generalized System of Preferences consistent with existing legislation;
  (D) encouragement of trade, investment, and economic agreements;
  (E) mobilization of capital for private sector investment through such
  vehicles as enterprise funds, guarantees, financial and capital market
  development;
  (F) provision of technical assistance, technical training and scholarships
  in relevant areas such as management, banking, economics, procurement,
  accounting, agribusiness, law, and privatization;
  (G) provision of food assistance under the Agricultural Trade Development
  and Assistance Act of 1954 and other food assistance programs, consistent
  with the need to avoid disincentives to domestic production and marketing;
  (H) provision of technical assistance for the implementation of labor market
  reforms and to facilitate adjustment during economic transition and reform;
  (I) encouragement and support of small and medium sized United States firm
  activities in Eastern Europe and Yugoslavia, and encouragement of the entry
  of United States firms into the market to stimulate increased bilateral trade
  and investment in ways that encourage the growth of the private sector; and
  (J) promotion of sound environmental policies and practices that address
  the problems of environmental pollution.
  (d) EXTRAORDINARY NATURE OF ASSISTANCE- The Congress recognizes that--
  (1) change is occurring quickly but unevenly in Yugoslavia and the countries
  of Eastern Europe, and it has not been possible, and will not be possible,
  to anticipate with certainty how United States assistance would best
  serve to facilitate the political and economic democratization processes
  in Eastern Europe and Yugoslavia;
  (2) the pace of events in Eastern Europe and Yugoslavia requires that
  the President have the ability to provide United States assistance and
  resources expeditiously if the United States is to be able to influence
  events as they occur;
  (3) the ability of the United States to participate effectively in the
  rebuilding of Eastern Europe and Yugoslavia will be directly related to
  how well United States assistance efforts are coordinated and integrated
  with the similar activities of friendly and allied donor countries, and
  international financial institutions; and
  (4) the success of United States efforts to encourage political, economic,
  and social change depends in large measure on providing the President with
  the authority to use the resources available to him in those countries of
  Eastern Europe and in Yugoslavia, and for activities in those countries,
  which will most effectively promote the objectives of this Act and the
  Support for East European Democracy (SEED) Act of 1989.
SEC. 713. ASSISTANCE ACTIVITIES.
  (a) AUTHORITY- In order to carry out section 712 to foster the transition of
  the countries of Eastern Europe and Yugoslavia to a system of free market
  economies and to political democratization, the President is authorized to
  furnish assistance notwithstanding any other provision of law for eligible
  East European countries. Such assistance may include any of the SEED Actions
  contained in section 2(c) of the Support for East European Democracy (SEED)
  Act of 1989, such as--
  (1) technical assistance and training, including such activities as
  support for labor activities, scholarship programs, medical assistance,
  and support for private sector development;
  (2) technical and other assistance to support housing sectors;
  (3) environment and energy activities, including such activities as
  assistance in developing policies encouraging, and providing incentives for,
  greater efficiency in energy production, distribution, and end-use (including
  use of integrated energy resource planning), heightened awareness of energy
  security concerns, conservation, advanced energy resource development,
  and reliance on renewable energy resources, and further including training
  and technical assistance for related energy and environmental investments,
  waste minimization, local production of environmental or energy-related
  equipment, promotion of United States technologies, and health problems
  directly associated with pollution;
  (4) activities to foster democratic pluralism, including such activities
  as support for democratic organizations, independent media, national
  legislatures (including exchanges involving members, staff, and support
  agencies of Congress and the parliaments of Eastern Europe), rule of law,
  educational reform, and local government;
  (5) the Polish-American and Hungarian-American Enterprise Funds, and other
  Enterprise Funds as may be designated under section 714;
  (6) other private enterprise activities, including such activities as
  technical assistance and training for development of market-oriented
  policies, restructuring and creation of financial institutions (such as
  stock markets, insurance companies and banks), creation and management of
  private business organizations, and privatization of state businesses and
  organizations; and
  (7) agricultural and rural development activities, including such
  activities as technical assistance and training for development of rural
  economies and market-oriented policies, restructuring and creation of
  agricultural financial institutions and marketing systems, development
  of food processing, food transport and food storage systems, creation and
  management of agribusiness organization (including farmer-owned cooperatives)
  and privatization of state farms, agribusiness and credit institutions,
  and other activities that would strengthen private agriculture.
  (b) APPLICABILITY OF SEED ACT TO ELIGIBLE EAST EUROPEAN COUNTRIES-
  (1) Subject to section 714 of this Act, any authority in the Support for
  East European Democracy (SEED) Act of 1989 to provide assistance for,
  or take other action with respect to, Poland or Hungary may be deemed to
  be an authority to provide similar assistance for, or take similar action
  with respect to, any eligible East European country.
  (2) In addition, upon enactment of this Act, the President is authorized to
  use any funds made available for Assistance for Eastern Europe under the
  Foreign Operations, Export Financing, and Related Programs Appropriations
  Act, 1991, to provide balance of payments support with respect to any
  eligible East European country.
  (c) STABILIZATION ASSISTANCE- It is the sense of Congress that the
  President should use the authorities provided under the Support for East
  European Democracy (SEED) Act of 1989 (including those provided under
  sections 101(b) and 102) and this chapter (including those provided under
  section 712(c)) to provide stabilization assistance, including by working
  with multilateral groups to provide timely and appropriate resources and
  coordinated policies to assist Hungary, Czechoslovakia, and other eligible
  East European countries as the President deems appropriate.
  (d) AUTHORIZATION OF APPROPRIATIONS- For purposes of providing assistance
  authorized by this chapter, there are authorized to be appropriated to
  the President $400,000,000 for fiscal year 1992. Amounts authorized to
  be appropriated by this subsection are authorized to remain available
  until expended.
SEC. 714. ENTERPRISE FUNDS.
  (a) AUTHORITY- The President may provide funds and support to Enterprise
  Funds designated in accordance with subsection (d) that are established
  for the purposes of promoting--
  (1) development of the private sectors of eligible East European countries,
  including small businesses, the agricultural sector, and joint ventures
  with United States and host country participants; and
  (2) policies and practices conducive to private sector development in
  eligible East European countries;
on the same basis as funds and support may be provided with respect to
Enterprise Funds for Poland and Hungary under the Support for East European
Democracy (SEED) Act of 1989.
  (b) TREATMENT EQUIVALENT TO ENTERPRISE FUNDS FOR POLAND AND HUNGARY-
  Except as otherwise specifically provided in this section, each of the
  authorities and limitations applicable to the Enterprise Funds for Poland
  and Hungary pursuant to the Support for East European Democracy (SEED) Act
  of 1989 shall apply to any Enterprise Funds that receive funds and support
  under this section. The officers, members, or employees of an Enterprise
  Fund that receives funds and support under this section shall enjoy the
  same status under law that is applicable to officers, members, or employees
  of the Enterprise Funds for Poland and Hungary under the Support for East
  European Democracy (SEED) Act of 1989, including without limitation the
  status that they have pursuant to section 201(d)(5) of that Act.
  (c) REPORTING REQUIREMENT- Notwithstanding any other provision of this
  section or section 201 of the Support for East European Democracy (SEED)
  Act of 1989, the requirement that an Enterprise Fund that receives funds
  and support under this section shall be required to publish an annual
  report not later than January 31 each year shall not apply with respect
  to an Enterprise Fund that receives funds and support under this section
  for the first twelve months after it is designated as eligible to receive
  such funds and support.
  (d) COUNTRIES ELIGIBLE FOR ENTERPRISE FUND- The President is authorized to
  designate a private, nonprofit organization as eligible to receive funds
  and support pursuant to this section with respect to any country in Eastern
  Europe or Yugoslavia in the same manner and with the same limitations as
  set forth in section 201(d) of the Support for East European Democracy
  (SEED) Act of 1989.
  (e) FUNDING- Funds authorized to be appropriated under section 713 of
  this chapter may be made available to Enterprise Funds designated by the
  President under subsection (d), and used for the purposes of this section
  notwithstanding any other provision of law.
SEC. 715. PROGRAM ADMINISTRATION.
  (a) AUTHORITY OF UNITED STATES GOVERNMENT AGENCIES- United States Government
  agencies which are authorized to provide assistance or conduct programs for
  Poland or Hungary under the provisions of the Support for East European
  Democracy (SEED) Act of 1989 are hereby authorized, notwithstanding any
  other provision of law, to provide such assistance or conduct such programs
  as the President may determine for eligible East European countries. Any
  administrative authorities provided by the SEED Act available to any such
  agency to assist it to carry out programs for Poland or Hungary shall be
  applicable for programs, as designated by the President, for other eligible
  East European countries.
  (b) PRIVATE SECTOR DEVELOPMENT- The President may authorize such agency or
  agencies as he may designate to develop and implement, in consultation with
  representatives of business organizations in the United States, programs for
  management and technical assistance to governments and private enterprises
  in Eastern European countries and Yugoslavia.
  (c) PERSONAL SERVICES- Appropriations to carry out the provisions of this
  chapter may be made available for contracting with individuals for personal
  services abroad or in the United States; provided that such individuals
  shall not be regarded as employees of the United States Government for
  the purpose of any law administered by the Office of Personnel Management.
  (d) RELATIONSHIP TO THE FOREIGN ASSISTANCE ACT OF 1961- Except to the
  extent inconsistent with this chapter, assistance under this chapter
  shall be considered to be economic assistance under title I of the Foreign
  Assistance Act of 1961 for purposes of making available the authorities
  contained in that or other Acts (including the authority of the President
  under section 5201 of the Foreign Assistance Act of 1961 to allocate or
  transfer to any agency any part of those funds).
CHAPTER 3--MULTILATERAL ASSISTANCE INITIATIVE FOR THE PHILIPPINES
SEC. 721. FINDINGS AND STATEMENT OF POLICY.
  (a) FINDINGS- The Congress makes the following findings:
  (1) The people of the Philippines and the people of the United States
  continue to enjoy a longstanding relationship of mutual respect and
  cooperation.
  (2) The return of democracy to the Philippines under the leadership of
  President Corazon Aquino has brought the Philippines and the United States
  closer together and offers an opportunity to the Philippines to become
  again an economic, social, and political leader in Southeast Asia.
  (3) The Philippines is currently facing a domestic insurgency that threatens
  the efforts of the Government of the Philippines to broaden the participation
  of the people of the Philippines in the development of their country.
  (4) It is in the mutual interest of our two peoples that the Philippines
  be provided all possible assistance in its efforts to redress the problems
  caused by economic deterioration and social inequity which have fueled
  the domestic insurgency.
  (5) The promotion of democracy and achievement of sustainable economic growth
  require a partnership among the Philippines, multilateral institutions,
  bilateral donors, and the private sector to help the Philippines restructure
  its economy and address its debt service burden in order to achieve broadly
  based, self-sustaining growth and to improve the quality of life of the
  people of the Philippines.
  (b) SENSE OF CONGRESS- It is the sense of the Congress that--
  (1) the United States should continue to participate with the multilateral
  financial institutions and other bilateral donors in a coordinated economic
  reform and development program in the Philippines; and
  (2) the commitment of resources by the United States, other bilateral
  donors, and the multilateral financial institutions and a reform effort and
  leadership role by the Government of the Philippines will continue to be
  necessary in order to ensure economic growth in the Philippines and enhanced
  participation of the people of the Philippines in the democratic process.
SEC. 722. ASSISTANCE.
  (a) AUTHORITY- The President is authorized to provide assistance to carry
  out this chapter in order to promote the goals set forth in section 1
  of the Foreign Assistance Act of 1961. Such assistance shall have as its
  ultimate objective, in conjunction with assistance provided by other donors,
  support of democracy in the Philippines, promotion of sustained economic
  growth led by the private sector, and improvement of living conditions for
  the people of the Philippines, and shall build upon the progress that  the
  Government of the Philippines has made in the development and implementation
  of economic, structural, judicial, and administrative reforms.
  (b) PROGRESS OF REFORMS NECESSARY FOR PROVISION OF  ASSISTANCE- The
  provision of assistance under this chapter shall be linked to progress by
  the Government of the Philippines in the implementation of its economic,
  structural, judicial, and administrative reform program.
  (c) USES OF ASSISTANCE- Assistance under this chapter may include support
  for--
  (1) economic, structural, and administrative reforms that are necessary
  to stimulate growth led by the private sector, import liberalization,
  export growth and diversification, and the privatization of enterprises
  owned or controlled by the government;
  (2) infrastructure needed by the private sector, particularly in rural areas;
  (3) strengthening the private sector, including promoting greater
  participation of the United States private sector in the development of
  the Philippines; and
  (4) such other programs as are consistent with the purposes of this chapter.
SEC.  723. REPORT TO CONGRESS.
  The President shall submit congressional presentation documents regarding
  programs under this chapter on the same basis as the President submits
  such documents under section  4301 of the Foreign Assistance Act of 1961
  regarding programs under chapters 1 and 3 of title I of that Act.
SEC. 724. AUTHORIZATION OF APPROPRIATIONS; AUTHORITIES.
  (a) AUTHORIZATION- There are authorized to be appropriated to the President
  to carry out this chapter (inclusive of amounts previously appropriated),
  $1,000,000,000, of which not more than $160,000,000  may be appropriated
  under this section for fiscal year 1992. Amounts authorized to be
  appropriated by this subsection are in addition to amounts otherwise
  available for such purposes and authorized to remain available until
  expended.
  (b) Except to the extent inconsistent with this chapter, assistance under
  this chapter shall be considered to be economic assistance under title
  I of the Foreign Assistance Act of 1961 for purposes of making available
  the provisions contained in that or other Acts.
SEC. 725. APPROPRIATIONS IN FUTURE YEARS.
  It is the sense of the Congress that, before requesting the appropriation of
  additional amounts to carry out this chapter, the President should take into
  account the progress being made by the Government of the Philippines  toward
  achieving the reform objectives of this chapter, the extent of financial
  and other participation of other bilateral donors and multilateral financial
  institutions, and efforts to coordinate the multilateral assistance program
  for which assistance under this chapter is authorized. Such considerations
  will be primary factors in decisions by the Congress to provide additional
  appropriations to carry out this chapter.
SEC. 726. DONOR COORDINATION.
  It is the sense of the Congress that critical to the success of the
  multilateral assistance program for which assistance under this chapter is
  authorized will be the ability of the bilateral donors, the multilateral
  financial institutions, and the Government of the Philippines to coordinate
  effectively their objectives and  programs. It is further the sense of the
  Congress that all bilateral donors to this multilateral assistance program
  should take steps to simplify procurement and disbursement procedures and
  to ensure that any conditions on the provision or use of assistance are
  complementary, and that the Government of the Philippines should establish
  such internal procedures and processes as will  ensure the most effective
  use of the resources provided by the bilateral donors and the multilateral
  financial institutions.
TITLE VIII--PRESIDENTIAL CONTINGENCY FUND
SEC. 801. AUTHORITY.
  There are authorized to be appropriated to the President, in order to meet
  unanticipated contingencies in programs within the International Affairs
  Budget Function, $20,000,000 for the fiscal year 1992 to remain available
  until expended. Amounts appropriated under this section are authorized to
  be made available notwithstanding any other provision of law.
TITLE IX--AUTHORIZATIONS FOR FISCAL YEAR 1993
SEC. 901. AUTHORIZATIONS.
  Consistent with the Budget Enforcement Act of 1990 (Public Law 101-508),
  there are authorized to be appropriated for the fiscal year 1993 such
  sums as may be necessary to carry out programs and activities for which
  appropriations for the fiscal year 1992 are authorized by this Act and
  the Foreign Assistance Act of 1961 as amended by this Act.