Summary: H.R.1868 — 104th Congress (1995-1996)All Information (Except Text)

Bill summaries are authored by CRS.

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Reported to Senate with amendment(s) (09/14/1995)


Title I: Export and Investment Assistance

Title II: Bilateral Economic Assistance

Title III: Military Assistance

Title IV: Multilateral Economic Assistance

Title V: General Provisions

Title VI: Middle East Peace Facilitation Act of 1995

Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1996 - Title I: Export and Investment Assistance - Makes appropriations for FY 1996 for: (1) direct loans, loan guarantees, tied-aid grants, insurance, and administrative expenses under Export-Import Bank programs; (2) Overseas Private Investment Corporation direct and guaranteed loans and administrative expenses; and (3) the Trade and Development Agency.

Title II: Bilateral Economic Assistance - Makes appropriations for FY 1996 for: (1) expenses of the President in carrying out certain programs under the Foreign Assistance Act of 1961; (2) specified development assistance programs to be funded through the economic assistance account; (3) the Office of Population of the Agency for International Development (AID); (4) specified projects aimed at reunification of Cyprus; (5) democracy and humanitarian activities in Burma; (6) debt restructuring; (7) micro and small enterprise development programs; (8) guaranteed loans for projects under the worldwide housing guarantees program (with special emphasis for initiatives in South Africa); (9) international disaster assistance; (10) the Foreign Service Retirement and Disability Fund; (11) operating expenses of AID and the AID Office of Inspector General; (12) Middle East Fund assistance (earmarking amounts for Israel and Egypt); (13) economic assistance for Eastern Europe and the Baltic States; (14) assistance for the independent states of the former Soviet Union, including funds for establishment of a Trans- Caucasus Enterprise Fund (but with a prohibition on funds to Russia unless the President certifies to the Committees on Appropriations that it has terminated arrangements to provide Iran with technology to develop a nuclear program); (15) the Peace Corps (but with a prohibition on the use of such funds for abortions); (16) international narcotics control (earmarking amounts to expand Federal Bureau of Investigation (FBI) activities in Cairo, Egypt, and Secret Service programs in Latin America); (17) migration and refugee assistance (earmarking amounts for refugees from the former Soviet Union and Eastern Europe and other refugees resettling in Israel); (18) the Emergency Refugee and Migration Assistance Fund; (19) antiterrorism assistance; and (20) the Nonproliferation and Disarmament Fund.

Bars the use of development assistance funds for: (1) abortions or involuntary sterilizations; (2) Zaire; and (3) U.S. private and voluntary organizations which obtain less than 20 percent of annual funding from sources other than the U.S. Government.

Prohibits ESF assistance to Zaire.

Title III: Military Assistance - Makes appropriations for FY 1996 for: (1) international military education and training (with a bar on such assistance to Zaire and Guatemala); (2) foreign military financing and direct loans (earmarking amounts for Israel, Egypt, Greece, and Turkey); and (3) international peacekeeping operations (subject to notification procedures of the Committees on Appropriations).

Authorizes the transfer of specified funds for the Warsaw Initiative Program.

Prohibits foreign military financing for: (1) any non-NATO country participating in the Partnership for Peace Program except through the regular notification procedures of the Committees on Appropriations; and (2) Zaire, Sudan, Peru, Liberia, and Guatemala. Prohibits such assistance to Colombia or Bolivia until the Secretary of State certifies that such funds will be used primarily for counternarcotics activities there.

Title IV: Multilateral Economic Assistance - Makes appropriations for FY 1996 for the U.S. contribution to the: (1) International Bank for Reconstruction and Development (World Bank); (2) International Development Association; (3) International Finance Corporation; (4) Inter-American Development Bank; (5) Enterprise for the Americas Multilateral Investment Fund; (6) Asian Development Bank; (7) Asian Development Fund; and (8) European Bank for Reconstruction and Development. Makes appropriations for FY 1996 for international programs and organizations.

Sets certain restrictions on international organization funding, including prohibiting the use of funds made available to the United Nations Population Fund (UNFPA) for activities in China.

Title V: General Provisions - Sets forth limits on the use of appropriations, including no more than: (1) 15 percent of such appropriations shall be obligated during the last month of availability; (2) $126,500 for official residence expenses of AID; (3) $95,000 for representation allowances for AID; and (4) $2,000 for representation allowances for the Inter-American Foundation and the Trade and Development Agency. Prohibits the use of funds for entertainment expenses of AID, the Inter-American Foundation, the Peace Corps, the Trade and Development Agency, or under the Foreign Military Financing Program.

(Sec. 502) Prohibits the use of funds for: (1) bilateral funding of international financial institutions; (2) the export of nuclear equipment, fuel, or technology; (3) direct assistance or reparations to Cuba, Iraq, Libya, North Korea, Iran, Serbia, Sudan, or Syria; (4) assistance to any country whose elected head of government is deposed by military coup; (5) certain transfers between appropriations accounts without consultation with Congress; (6) assistance to any country in default in excess of a year on payments on a U.S. loan (except for Nicaragua and narcotics-related assistance for Colombia, Bolivia, and Peru); and (7) assistance for certain commodities which are in surplus on world markets and could injure U.S. producers of a similar commodity, with specified exceptions.

(Sec. 514) Directs the Secretary of the Treasury to instruct the U.S. Executive Directors of specified international financial institutions to oppose any assistance for the production or extraction of any commodity or mineral for export if it is in surplus on world markets and such assistance will cause substantial injury to U.S. producers of a similar commodity.

(Sec. 516) Prohibits the use of international organization funds for the Palestine Liberation Organization (PLO), Libya, Iran, specified other countries, or certain Communist countries.

(Sec. 517) Declares it is U.S. policy that economic assistance funds allocated to Israel shall not be less than the annual debt repayment from Israel to the United States.

(Sec. 518) Prohibits the use of development assistance funds for abortions or involuntary sterilizations.

(Sec. 519) Requires the President to report to the Committees on Appropriations on annual arms sales proposals covering major weapons under the Arms Export Control Act.

(Sec. 520) Prohibits the use of funds for Colombia, Dominican Republic, Guatemala, Haiti, Liberia, Nicaragua, Peru, Sudan, or Zaire, except through the regular notification procedures of the Committees on Appropriations.

(Sec. 522) Makes funds available to AID for family planning, health, child survival, and AIDS research and control in developing countries.

(Sec. 523) Bars funding for indirect assistance to Cuba, Iraq, Libya, Iran, Syria, North Korea, or China unless the President certifies that the withholding of such funds is contrary to the national security interest.

(Sec. 524) Amends the Arms Export Control Act to extend the President's waiver authority with respect to reciprocal leasing through FY 1996.

(Sec. 525) Requires the Department of Defense (DOD) to notify the Committees on Appropriations before providing excess DOD articles to certain NATO and major non-NATO countries.

(Sec. 527) Directs the Secretary of the Treasury to instruct the U.S. Executive Director of each international financial institution, and the Administrator of the Agency for International Development to instruct the U.S. Executive Director of the International Fund for Agriculture Development, to oppose any bilateral assistance to any country that supports terrorism.

(Sec. 527A) Prohibits bilateral assistance funds to any country which the President determines grants sanctuary from prosecution to any individual or group which has committed an act of international terrorism or otherwise supports such activities. Authorizes a waiver by the President for national security and humanitarian reasons, requiring notification to the Committees on Appropriations.

(Sec. 528) Authorizes the commercial leasing of defense articles to Israel, Egypt, NATO, and major non-NATO allies if the President determines that there are compelling foreign policy or national security reasons.

(Sec. 528A) Requires all AID contracts and subcontracts to include a clause requiring that U.S. insurance companies have a fair opportunity to bid for insurance when it is necessary.

(Sec. 530) Authorizes nongovernmental organizations which are grantees or contractors of AID to place funds made available to them under this Act in interest bearing accounts in order to enhance their participation in economic activities under the Foreign Assistance Act of 1961, including endowments and debt-for-development and debt-for-nature exchanges.

(Sec. 531A) Amends the Arms Export Control Act to require procurement contracts entered into by the President for sales of defense articles and services to be priced on the same costing basis (competitive pricing) as is applicable to procurements of like items purchased by the DOD.

(Sec. 531B) Amends the Foreign Assistance Act of 1961 to provide that certain value limitations on new stockpiles of defense articles for allied or other foreign countries shall not apply to agreements with Israel. Sets forth dollar limits on the value of such stockpile additions for FY 1996 and 1997 for foreign countries, including the Republic of Korea and Thailand. Requires the President to notify specified congressional committees, in accordance with reprogramming notification procedures, at least 15 days before designating a country where such stockpiles may be located outside the boundaries of a U.S. military base or a base used primarily by the United States.

(Sec. 532) Directs the Administrator of the AID to require foreign countries that receive foreign assistance which results in the generation of local currencies to deposit such currencies in a separate account to be used to finance foreign assistance activities.

(Sec. 533) Prohibits payments to any international financial institution while the U.S. Executive Director to the institution is compensated at a rate in excess of that for a specified position under the Executive Schedule.

(Sec. 534) Bars assistance to any country that is not in compliance with the United Nations sanctions against Iraq, Serbia, or Montenegro unless the President certifies to the Congress that such assistance: (1) is in the national interest; (2) will directly benefit the needy people in that country; or (3) will be humanitarian assistance for foreign nationals who have fled Iraq and Kuwait.

(Sec. 535) Authorizes the drawdown of defense articles, services, and training to Vietnam, Cambodia, and Laos to assist in efforts to locate members of the armed forces and U.S. civilians who remain unaccounted for from the Vietnam War.

Authorizes appropriations.

(Sec. 536A) Requires that priority be given, to the maximum extent feasible, to the delivery of excess defense articles that are to be transferred on a grant basis to NATO allies and major non-NATO allies on the southern and southeastern flank of NATO, over the delivery of such articles to other countries.

(Sec. 537) Requires the Committees on Appropriations to be notified of each country that has been approved for cash flow financing for the procurement of defense articles in excess of $100 million.

(Sec. 538) Declares that provisions under this or any other Act authorizing appropriations for foreign operations or export financing shall not be construed to prohibit activities authorized by the Peace Corps Act, the Inter-American Foundation Act, or the African Development Foundation Act. Directs an agency to report to the Committees on Appropriations whenever it is conducting or proposing activities in a country for which such assistance is prohibited.

(Sec. 539) Prohibits the use of funds to provide: (1) any financial incentive to a business for purposes of inducing it to relocate outside the United States if it will reduce the number of employees in the United States; (2) assistance for developing in a foreign country an export processing zone or other designated area in which a country's tax, tariff, labor, environment, and safety laws do not apply to activities in the area, unless the President certifies that such assistance is not likely to cause a loss of U.S. jobs; or (3) assistance for any project that contributes to the violation of internationally recognized workers rights in such country.

(Sec. 540) Authorizes the President, pursuant to a lifting of the United Nations arms embargo against Bosnia-Hercegovina, to transfer defense articles to such country's government without reimbursement if he certifies to the Congress that the transfer of such articles would assist that nation in self-defense and promote the security and stability of the region. Authorizes appropriations.

(Sec. 540A) Declares that no sanction, prohibition, or restriction against Serbia or Montenegro shall cease to be effective, unless the: (1) President submits to the Congress a specified certification with respect to human rights and progress toward self-determination in Kosova; and (2) certain requirements are met.

Provides that the prohibition on the use of foreign assistance funds for the training of foreign law enforcement forces shall not apply with respect to assistance, including training, relating to sanctions monitoring and enforcement.

(Sec. 541) Declares that funds appropriated under this Act for Afghanistan, Lebanon, and Cambodia, and for victims of war, displaced children, humanitarian assistance for Romania, and humanitarian assistance for the peoples of Bosnia-Hercegovina, Croatia, and Kosova, may be made available notwithstanding any other provision of law.

Directs the President to terminate assistance to any country that he determines is cooperating militarily or commercially with the Khmer Rouge.

Authorizes the use of foreign assistance funds to support: (1) tropical forestry and energy programs aimed at reducing emissions of greenhouse gases; and (2) biodiversity conservation activities.

Authorizes AID to employ personal services contractors to administer programs for the West Bank and Gaza.

(Sec. 542) Expresses the sense of the Congress with respect to steps the President should take to encourage renunciation of the Arab boycott of Israel.

(Sec. 543) Authorizes the use of economic assistance funds to strengthen the administration of justice in countries in Latin America and the Caribbean.

(Sec. 544) Declares that restrictions on assistance to foreign countries contained in this Act or any other Act shall not be construed to restrict assistance in support of programs of nongovernmental organizations as long as it is in the national interest of the United States.

(Sec. 544A) Authorizes the reprogramming of earmarked appropriations for other programs within the same account, provided certain requirements are met.

(Sec. 546) Authorizes for FY 1996 the provision of nonlethal excess defense articles, without regard to certain restrictions, to countries (including Jordan) for which U.S. foreign assistance has been requested and for which receipt of such articles was separately justified for the fiscal year.

(Sec. 547) Prohibits the use of funds for publicity or propaganda purposes within the United States that were not authorized before the enactment of this Act.

(Sec. 548) States that assistance under this Act should make full use of American resources, including commodities, products, and services, to the maximum extent possible.

(Sec. 549) Prohibits the use of funds to pay any assessments, arrearages, or dues of any U.N. member.

(Sec. 551) Prohibits the provision of funds to a private voluntary organization that fails to provide any document, file, or record necessary to the auditing requirements of AID.

(Sec. 552) Prohibits the provision of funds to any foreign government that provides lethal military equipment to a country that the Secretary of State has determined has a terrorist government, unless the President determines that the furnishing of such assistance is in the national interest.

(Sec. 553) Withholds assistance to a foreign country in an amount equal to 110 percent of the total unpaid parking fines and penalties owed by the country to the District of Columbia.

(Sec. 554) Prohibits the obligation of any appropriations for the PLO for the West Bank and Gaza unless the President has exercised certain authorities to suspend prohibitions on assistance to the PLO.

(Sec. 556) Permits the President to provide a specified amount of commodities and services to the U.N. War Crimes Tribunal if doing so will contribute to a resolution of charges regarding genocide or other violations of international law in the former Yugoslavia.

(Sec. 557) Authorizes the use of funds made available to DOD for crating, packing, handling, and transportation of nonlethal excess defense articles transferred to countries eligible to participate in the Partnership for Peace and to receive assistance under the Program of Support for East European Democracy (SEED).

(Sec. 558) Authorizes demining equipment used in support of the clearing of landmines for humanitarian purposes to be disposed of on a grant basis in foreign countries.

Amends the National Defense Authorization Act for Fiscal Year 1993 to extend the moratorium on transfers of anti-personnel landmines to foreign countries.

(Sec. 560) Prohibits the obligation of appropriations to create in Jerusalem a new U.S. agency office for the purpose of conducting U.S. business with the Palestinian Authority over Gaza and Jericho (or any successor Palestinian governing entity) provided for in the Israel-PLO Declaration of Principles.

(Sec. 561) Prohibits certain funds appropriated for Informational Program activities from being obligated to pay for: (1) alcoholic beverages; (2) food (other than food provided at a military installation) not provided in conjunction with Program trips where students do not stay at a military installation: or (3) entertainment expenses.

(Sec. 562) Amends Federal civil service law to extend nonovertime differential pay to AID foreign service criminal investigators.

(Sec. 565) Directs the President to withhold funds made available under this Act equal to the sum of assistance and credits, if any, provided by a foreign country, or any entity in that country, in support of the completion of the Cuban nuclear facility at Juragua, near Cienfuegos, Cuba, with specified exceptions.

(Sec. 570) Bars the use of funds for the International Narcotics Control or Crop Substitution Assistance for Burma.

(Sec. 570A) Authorizes the Secretary of the Treasury to subscribe to an increase in the authorized capital stock of the Asian Development Bank (the fourth replenishment). Authorizes appropriations.

(Sec. 570B) Authorizes the President to reduce amounts owed to the United States by eligible countries as a result of: (1) housing guarantees made pursuant to the Foreign Assistance Act of 1961; or (2) credits extended or guarantees issued under the Arms Export Control Act.

Permits such authority only to: (1) implement multilateral official debt relief and referendum agreements known as the Paris Club Agreed Minutes; and (2) countries with heavy debt burdens that are eligible to borrow from the International Development Association (but not from the International Bank for Reconstruction and Development) (IDA-only countries). Prescribes additional conditions for the exercise of such authority.

(Sec. 575) Prohibits foreign assistance funds to the Korean Peninsula Energy Development Organization (KEDO) unless the President makes a certain certification to the Committees on Appropriations.

(Sec. 576) Authorizes the President to direct the drawdown for Jordan of defense articles and services from DOD, and military education and training up to a specified dollar amount provided certain conditions are met.

Title VI: Middle East Peace Facilitation Act of 1995 - Middle East Peace Facilitation Act of 1995 - Declares the sense of the Congress specifying additional steps the PLO must take to demonstrate an irrevocable denunciation of terrorism and ensure a peaceful settlement of the Middle East dispute.

(Sec. 604) Authorizes the President to suspend specified provisions of law which prohibit foreign and United Nations assistance to the PLO, the receipt or expenditure of PLO funds, and PLO membership in the International Monetary Fund, upon certification to specified congressional committees that: (1) such waiver is in the national interest; (2) the PLO continues to abide by commitments made in letters to Israel and the Foreign Minister of Norway and under the Declaration of Principles signed in September 1993; and (3) specified funds provided under this Act and other Acts have been used for the purposes for which they were intended. Makes such suspensions effective for up to six months.