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Introduced in Senate (06/23/1995)

TABLE OF CONTENTS:

Title I: Defense and Security Assistance

Chapter 1: Military and Related Assistance

Chapter 2: International Military Education and

Training

Chapter 3: Antiterrorism Assistance

Chapter 4: Narcotics Control Assistance

Chapter 5: Peacekeeping Operations

Chapter 6: Other Provisions

Title II: Trade and Export Development

Title III: Private Sector, Economic, and Development

Assistance

Chapter 1: Private Sector Enterprise Funds

Chapter 2: Development Assistance Fund and Other

Authorities

Chapter 3: Peace Corps

Chapter 4: International Disaster Assistance Programs

Title IV: Peace and Security in the Middle East

Title V: Other Regional Issues

Title VI: International Organizations and Programs

Title VII: Special Authorities and General Provisions

Chapter 1: Reporting Requirements

Chapter 2: General Provisions

Chapter 3: Repeals

Title VIII: Effective Date

Foreign Aid Reduction Act of 1995 - Title I: Defense and Security Assistance - Chapter 1: Military and Related Assistance - Subchapter A: Foreign Military Financing Program - Authorizes appropriations for FY 1996 and 1997 for grant assistance and subsidy costs of direct loans for the procurement by friendly countries and international organizations of defense articles and services.

(Sec. 102) Makes specified amounts of such funds available for subsidy costs of direct loans for: (1) Greece; (2) Turkey; (3) Czech Republic; (4) Hungary; (5) Poland; (6) Estonia; (7) Latvia; (8) Lithuania; and (9) Slovenia.

(Sec. 103) Requires that loans available for defense article and service credit sales be provided at interest rates not less than the current average market yield on outstanding marketable U.S. obligations of comparable maturities.

(Sec. 105) Amends the Arms Export Control Act to prohibit the President from requiring the repayment of any grant assistance provided to a foreign country or international organization.

Subchapter B: Other Assistance - Amends the Foreign Assistance Act of 1961 to increase the amount of funds the President may use in emergency situations, or in the national interest, for the drawdown of articles and services, including military education and training, for: (1) international narcotics control, international disaster assistance, and refugee and migrant assistance; or (2) Vietnam, Cambodia, and Laos for locating MIA's from the Vietnam War, and for the safety of U.S. personnel engaged in humanitarian projects.

(Sec. 112) Provides 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. 113) Revises provisions regarding the transfer of excess defense articles to authorize the President to transfer such articles to countries for which its receipt was justified pursuant to the annual congressional presentation documents for military assistance programs, or for assistance programs for certain developing countries, or for which receipt of such articles was separately justified to the Congress. Allows transfer of such articles on a grant basis only if it is preferable to transfer on a sales basis. Requires the President to determine that a transfer: (1) will not have an adverse impact on the national technology and industrial base; and (2) will not reduce the opportunities of entities in that base to sell new or used equipment to the countries to which such articles are transferred. Prohibits the President from transferring significant military equipment or any articles valued at $7 million or more, until 15 days after notice of the proposed transfer has been provided to specified congressional committees. Limits the aggregate value of articles transferred to countries in any fiscal year to $350 million.

Chapter 2: International Military Education and Training - Authorizes appropriations for FY 1996 and 1997 for military education and training for military and related civilian personnel of foreign countries. Includes individuals who are not members of the government for such training. Authorizes the President to provide for the attendance of foreign military and civilian defense personnel at U.S. test pilot flight schools without charge if certain conditions are met.

Chapter 3: Antiterrorism Assistance - Authorizes appropriations for FY 1996 and 1997 for antiterrorism assistance to foreign countries. Prohibits such assistance from being used for the procurement of weapons and ammunition, except for certain small arms and ammunition directly related to antiterrorism training. Repeals specified reporting requirements.

Chapter 4: Narcotics Control Assistance - Authorizes appropriations for FY 1996 and 1997 for international narcotics control assistance programs.

Chapter 5: Peacekeeping Operations - Authorizes appropriations for FY 1996 and 1997 for peacekeeping operations which are not mandated by the United Nations, are not funded by U.N. assessments or which are carried out by other multilateral organizations.

Chapter 6: Other Provisions - Amends the Arms Export Control Act to revise congressional review procedures for certain transfers of defense articles and services to require the passage of a joint resolution (currently, enactment of a law) to prohibit such transfers by the President to North Atlantic Treaty Organization (NATO) countries, Japan, Australia, or New Zealand. Provides for waiver of such requirement in cases where the President certifies to the Congress that an emergency exists which requires that consent to such transfers become effective immediately in the national interests of the United States. Limits to 15 days (30 days for any other country) the notification requirement with respect to transfers to NATO countries, Japan, Australia, or New Zealand, and requires congressional action within such time period.

(Sec. 162) Declares that Presidential consent shall not be required for the transfer by a foreign country of defense articles sold by the United States if specified requirements are met.

(Sec. 164) Amends the Arms Export Control Act to repeal a price and availability reporting requirement relating to proposed sales of defense articles and services.

(Sec. 166) Amends the Foreign Assistance Act of 1961 to require the President to notify the Congress before: (1) designating a country as a major non-NATO ally for purposes of the provision of military assistance; or (2) terminating such designation. Declares that the President shall not be required to notify the Congress with respect to the designation of Australia, Egypt, Israel, Japan, Korea, and New Zealand as major non-NATO allies.

(Sec. 167) Sets forth competitive pricing requirements with respect to procurement contracts for the sale of defense articles and services.

(Sec. 168) Bars the use of funds for the sale of M-833 antitank shells, or any comparable antitank shells, containing a depleted uranium penetrating component to any country other than: (1)a NATO country; (2) a designated major non-NATO ally; or (3) Taiwan. Provides for waiver of such prohibition if the President believes it is in the national security interest of the United States.

(Sec. 169) Authorizes the President to provide training, advice, financial support, and equipment for police, prisons, or other law enforcement forces of a foreign government, unless he or she determines that: (1) such government is not democratically elected; or (2) notwithstanding the above, such forces engage in a pattern of gross violations of internationally recognized human rights, or they do not maintain a policy against the trafficking or production of illegal drugs by members of the force. Repeals a prohibition on the use of funds for such activities.

(Sec. 170) Authorizes the use of defense articles and services furnished to a foreign country for law enforcement purposes.

(Sec. 171) Amends the Arms Export Control Act to require a certain presidential report and certification regarding letters of offer to sell, and applications for a license for the export of, certain major defense equipment and services to a foreign country to specify, among other things: (1) comparable kinds and amounts of similar equipment or services that are available from other countries; and (2) other countries, if any, to which the United States has already offered such equipment and services.

(Sec. 172) Repeals the requirement of recoupment of certain nonrecurring cost charges with respect to letters of offer for the sale of defense articles and services.

(Sec. 173) Authorizes the President to reduce the price to be paid for the sale of a defense article if such sale would: (1) facilitate the sale of a similar new defense article; (2) support the national defense industrial base; and (3) serve the national security interests of the United States.

(Sec. 174) Repeals the requirement for a certain presidential report to the Congress on the acquisition of defense articles and services.

Title II: Trade and Export Development - Amends the Foreign Assistance Act of 1961 to require the Director of the Trade and Development Agency (instead of, as currently, the President) to report annually to specified congressional committees on the agency's activities. Extends the authorization of appropriations for the Trade and Development Agency through FY 1997.

(Sec. 202) Expresses the sense of the Congress that the United States should continue to grant treatment under the generalized system of preferences (GSP) for all countries of Central and Eastern Europe in transition to a free market economy, including but not limited to Poland, Hungary, the Czech Republic, Slovakia, the Baltic countries, Romania, and Bulgaria, if such countries are in compliance with applicable statutory requirements.

Title III: Private Sector, Economic, and Development Assistance - Chapter 1: Private Sector Enterprise Funds - Amends the Foreign Assistance Act of 1961 to authorize the President to provide funds and support to private sector Enterprise Funds for countries eligible to receive development assistance on the same basis as such funds and support are provided to Enterprise Funds for Poland and Hungary under the Support for East European Democracy (SEED) Act of 1989.

(Sec. 301) Directs the President to designate a private, nonprofit organization (to be known as the Trans-Caucasus Enterprise Fund) to provide development assistance to the Trans-Caucasus region of the former Soviet Union.

Authorizes appropriations.

(Sec. 302) Replaces the Private Sector Revolving Fund with a program providing credit and training to micro- and small enterprises.

Chapter 2: Development Assistance Fund and Other Authorities - Authorizes appropriations for FY 1996 and 1997 for specified development assistance, including: (1) the Development Fund for Africa; (2) assistance for the independent states of the former Soviet Union; (3) the SEED Program; (4) housing and other credit guaranty programs; and (5) assistance to American schools and hospitals abroad.

(Sec. 312) Authorizes appropriations for FY 1996 and 1997 for the Economic Support Fund. Earmarks specified amounts for: (1) Cyprus; (2) the International Fund for Ireland; and (3) the rapid development of a prototype industrial park in the Gaza Strip.

(Sec. 313) Bars the use of development assistance funds for any activity that violates the laws of a foreign country concerning the circumstances under which abortion is permitted, regulated, or prohibited, or which seeks to alter the laws of a foreign country concerning the circumstances under which it is permitted, regulated, or prohibited.

(Sec. 314) Increases from 25 to 30 percent a foreign country's share of costs for certain programs that receive development assistance.

(Sec. 315) Bars the use of development assistance funds for U.S. private and voluntary organizations, except cooperative development organizations, which obtain less than 25 percent of annual funding from sources other than the U.S. Government.

(Sec. 316) Bars the use of development assistance funds by any private and voluntary organization which: (1) fails to provide any document, file, or record necessary to the auditing requirements of the agency primarily responsible for administering such funds; or (2) is not registered with such agency.

(Sec. 317) Bars the use of certain foreign assistance funds by private and voluntary organizations to pay for the purchase or lease of office equipment for use in the United States.

(Sec. 318) Prohibits any U.S. officer or employee from engaging in any activity intended to circumvent a statutory prohibition or restriction in the provision of U.S. assistance. Sets forth criminal penalties for violation of such prohibition.

(Sec. 319) Requires withholding from assistance to a foreign country of an amount equal to 110 percent of the total unpaid parking fines and penalties owed by the country to the District of Columbia, Virginia, and Maryland.

(Sec. 320) Prohibits a waiver of sanctions against major drug producing and drug-transit countries during any year following a period of two consecutive years of such waivers.

(Sec. 321) States hat significant resources shall be made available to the U.S. private sector, including small- and medium-size businesses, farm groups, entrepreneurs, and others, with indigenous private enterprises in developing foreign nations.

Chapter 3: Peace Corps - Amends the Peace Corps Act to authorize appropriations for FY 1996 and 1997.

Chapter 4: International Disaster Assistance Programs - Amends the Foreign Assistance Act of 1961 to authorize appropriations for FY 1996 and 1997 for international disaster assistance programs.

Title IV: Peace and Security in the Middle East - Earmarks specified amounts of economic support fund (ESF) assistance and foreign military financing assistance for Israel and Egypt.

(Sec. 405) Expresses the sense of the Congress that the President should extend duty-free treatment to the products of Taba, Egypt, Aqaba, and Jordan if certain conditions are met.

(Sec. 406) Expresses the sense of the Congress that the United States should grant duty-free treatment to products from the West Bank and Gaza.

(Sec. 407) Expresses the sense of the Congress with respect to the establishment of an industrial park in Gaza, including presidential appointment of a Special Coordinator to coordinate the park's rapid development.

Title V: Other Regional Issues - Prohibits the extension of U.S. loans or credit to any independent state of the former Soviet Union that does not satisfy specified repayment conditions. Directs the Secretary of State to instruct the U.S. executive directors of specified international banks to propose policies opposing loans or credit to such states unless repayment is secured in accordance with this Act.

(Sec. 502) Permits development or ESF assistance for FY 1996 and 1997 to be made available to Nicaragua only if the Secretary of State certifies to the appropriate congressional committees that specified conditions have been met with respect to investigation of the May 23, 1993, Santa Rosa arms cache explosion, and related issues.

(Sec. 503) Prohibits development assistance to North Korea and the Korean Peninsula Energy Development Organization unless specified conditions are met.

(Sec. 504) Expresses the sense of the Congress that the President should: (1) negotiate a new base rights agreement with Panama; and (2) consult with the Congress throughout such negotiations.

(Sec. 505) Makes Panama eligible to purchase defense article and services under the Arms Export Control Act.

(Sec. 506) Revises bilateral and multilateral assistance certification procedures with respect to illegal drug producing and drug trafficking activities in Colombia. Sets forth specified trade sanctions against major illicit drug-producing countries and major drug-transit countries whenever the President does not make a waiver certification with respect to such activities or the Congress enacts a joint resolution disapproving such certification.

(Sec. 507) Requires the Secretary of State to itemize to appropriate congressional committees all U.S. Government debt owed by Israel to the United States.

(Sec. 508) Directs the President to report to appropriate congressional committees on the involvement of senior Mexican Government officials and their relatives and associates in illegal drug trafficking.

(Sec. 509) Bars the use of funds to provide assistance to the State Law Order Restoration Council (SLORC) to combat illicit narcotics production and trafficking in Burma (Myanmar), with specified exceptions. Prohibits intelligence sharing with SLORC.

(Sec. 510) Declares that certain prohibitions on the provision of military assistance to Pakistan shall not apply to the provision of assistance for: (1) international narcotics control; (2) facilitating military-to-military contact, training, or humanitarian assistance projects; (3) peacekeeping operations; or (4) antiterrorism assistance.

Expresses the sense of the Congress that the fundamental U.S. policy interests in South Asia include: (1) the resolution of underlying disputes that create conditions for nuclear proliferation; and (2) cooperation on counterterrorism, counternarcotics, international peacekeeping, and other U.S. international efforts.

(Sec. 511) Expresses the sense of the Senate that the United States should support the construction of an oil pipeline through Azerbaijan, Armenia, and Turkey.

(Sec. 512) Directs the President to report to the appropriate congressional committees on U.S. progress in eradicating production of and trafficking in illicit drugs.

(Sec. 513) Requires the Secretary of State to report to specified congressional committees on the status of disputes between Pakistan and U.S. persons with respect to cellular telecommunications, and on the progress of efforts to resolve such disputes.

(Sec. 514) Authorizes appropriations for FY 1996 and 1997 to carry out bilateral and multilateral nonproliferation and disarmament activities for the independent states of the former Soviet Union, other countries, and international organizations under the Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support Act of 1992.

(Sec. 515) Expresses the sense of the Congress that: (1) the Russian Federation should be strongly condemned if it continues with a commercial agreement to provide Iran with nuclear technology which would assist it in the development of nuclear weapons; and (2) if such transfer occurs, the Federation would be ineligible for assistance under the Freedom Support Act.

(Sec. 516) Expresses the sense of the Congress that it: (1) reaffirms that the status quo on Cyprus is unacceptable; and (2) insists that all parties to the dispute regarding Cyprus agree to seek a solution based on relevant United Nations resolutions.

(Sec. 517) Directs the Secretary of State to report annually to appropriate congressional committees on the city of Moscow's activities in seizing control of foreign joint ventures and joint stock companies.

(Sec. 518) Declares it is U.S. policy that the African continent is relevant to U.S. security, economic, political, and humanitarian interests, and that long-term development assistance to African nations complements U.S. foreign policy goals and national security interests.

Title VI: International Organizations and Programs - Authorizes appropriations for FY 1996 and 1997 for voluntary contributions to international organizations and programs. Earmarks specified amounts for the United Nations Children's Fund (UNICEF).

(Sec. 602) Earmarks for FY 1996 and 1997 specified amounts of development assistance funds for the United Nations Fund for Population Activities. Prohibits the use of such funds for activities in the People's Republic of China.

(Sec. 603) Declares that development assistance funds shall not be available for the U.S. proportionate share for programs, projects, or activities for Sudan. Makes the Palestine Liberation Organization (PLO) eligible for such assistance.

(Sec. 604) Changes from semiannually to annually the President's mandatory report to the appropriate congressional committees listing all U.S. voluntary contributions to international organizations. Requires the President to transmit, as part of the report, a justification of the manner in which such U.S. contributions benefit U.S. national security or other national interests.

(Sec. 605) Withholds a specified amount of the funds allocated to the United Nations Development Program (UNDP) for FY 1996 and 1997 until the President certifies to the appropriate congressional committees that UNDP has terminated its activities in Burma.

(Sec. 606) Amends the Asian Development Bank Act to authorize the U.S. Governor of the Asian Development Bank to subscribe to an increase in the authorized capital stock of the Bank (the fourth replenishment). Authorizes appropriations.

(Sec. 607) Expresses the sense of the Congress that the United States should encourage the United Nations to take action by considering Taiwan's unique situation in the international community and adopting a comprehensive solution to accommodate it in the United Nations and its related agencies.

(Sec. 608) Expresses the sense of the Congress with respect to separate accession of China (subject to specified conditions) and Taiwan to the World Trade Organization (WTO).

Title VII: Special Authorities and General Provisions - Chapter 1: Reporting Requirements - Amends the Foreign Assistance Act of 1961 to require the President to report to the appropriate congressional committees on expropriation of U.S. property.

Chapter 2: General Provisions - Declares it is U.S. assistance policy to recognize that: (1) no amount of foreign assistance can provide sustainable development for the people of a country which is not committed to free market principles and economic freedom; and (2) the Congress and American taxpayers have a right to know how such assistance benefits U.S. national interests, how it supports economic growth in recipient countries, and when U.S. bilateral assistance to each foreign assistance recipient will cease. Requires inclusion of specified information on the U.S. national interest and recipient country economic growth in the President's annual congressional presentation materials on U.S. bilateral assistance.

(Sec. 712) Authorizes the President, for purposes of making an equitable settlement of termination claims under extraordinary contractual relief standards, to adopt as a contract or other obligation of the U.S. Government and assume any liabilities arising thereunder, any contract with a U.S. or third-country contractor to carry out any program of foreign assistance that was subsequently terminated.

(Sec. 713) Prohibits funds made available to carry out the Foreign Assistance Act of 1961 or the Arms Export Control Act from being provided to any foreign government engaged in intelligence activities harmful to U.S. national security.

(Sec. 715) Expresses the sense of the Congress that the President should instruct the U.S. Permanent Representative to the United Nations to enhance the U.N. role in the enforcement of nonproliferation treaties and global non-proliferation.

Prohibits the provision of military assistance under the Foreign Assistance Act of 1961 or any other Act, or the provision of military equipment or technology or services under the Arms Export Control Act, to any non-nuclear weapon state that is found by the President to be diverting unsafeguarded special nuclear material from a civilian to a military use. Provides for a waiver of such prohibitions.

(Sec. 716) Prohibits the President from providing foreign assistance to a foreign country that is not implementing a treaty entered into by such country and the United States with respect to the extradition of individuals who have been charged with or who have committed felony offenses.

(Sec. 717) Prohibits the use of funds under the Foreign Assistance Act of 1961 to provide: (1) any financial incentive to a business to induce 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 any export processing zone or designated area in which the 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 jobs within the United States; or (3) assistance for any project that contributes to the violation of workers' rights. Exempts assistance for microenterprises, small-scale enterprises, or small-holder agriculture in the informal sector of the foreign country from such prohibition.

(Sec. 718) Makes certain cargo preference requirements under the Merchant Marine Act of 1936 inapplicable to the transportation of agricultural commodities as part of any U.S.-administered program of food assistance to foreign countries.

(Sec. 719) Urges the President to reduce U.S. foreign assistance to any country that employs mercenary forces by an amount equal to the sum paid by such government to employ them.

(Sec. 720) Authorizes the President to pay the expenses incurred in the transport of humanitarian assistance which has been privately donated in the United States to the independent states of the former Soviet Union, the Baltic states, and the independent states of the former Yugoslavia (excluding Serbia). Authorizes appropriations.

(Sec. 721) Prohibits U.S. assistance to any country that prohibits or restricts the transport or delivery of U.S. humanitarian assistance. Waives such prohibition if the President determines and notifies the Congress that such assistance to the country is in the national interest of the United States.

Chapter 3: Repeals - Repeals specified foreign assistance laws.

Title VIII: Effective Date - Sets forth the effective date of this Act.