Bill summaries are authored by CRS.

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Passed House amended (09/17/1998)

TABLE OF CONTENTS:

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: Funds Appropriated to the President -

International Monetary Programs

Title VII: Additional General Provisions

Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1999 - Title I: Export and Investment Assistance - Makes appropriations for FY 1999 for: (1) direct loans, loan guarantees, tied-aid grants, insurance, and administrative expenses under Export-Import Bank programs; (2) Overseas Private Investment Corporation (OPIC) direct and guaranteed loans and credit and insurance programs, including administrative expenses; and (3) the Trade and Development Agency.

Title II: Bilateral Economic Assistance - Makes appropriations for FY 1998 for: (1) expenses of the President in carrying out certain programs under the Foreign Assistance Act of 1961; (2) the Agency for International Development (AID) for child survival and disease programs, including basic education programs; (3) specified development assistance (but barring assistance for the central Government of the Republic of South Africa until the Secretary of State takes steps to negotiate repeal, suspension, or termination of a specified South African law relating to medicines and related substances control); (4) private and voluntary organizations; (5) international disaster assistance; (6) micro and small enterprise development programs; (7) guaranteed loans for the urban and environmental credit program; (8) the Foreign Service Retirement and Disability Fund; (9) operating expenses of AID and the AID Office of Inspector General; (10) Economic Support Fund (ESF) assistance (earmarking amounts for Israel and Egypt); (11) the International Fund for Ireland; (12) economic assistance for Eastern Europe and the Baltic States (earmarking amounts for Bosnia and Herzegovina, but with a prohibition on funds for new housing construction or repair or reconstruction of existing housing in Bosnia and Herzegovina unless directly related to U.S. troop efforts to promote peace there); (13) assistance for the new independent states of the former Soviet Union (subject to specified conditions, and earmarking amounts for Mongolia and the Southern Caucasus, including Georgia and Armenia, especially the areas of Abkhazia and Nagorno-Karabakh); (14) the Inter-American Foundation and the African Development Foundation; (15) the Peace Corps (but with a prohibition on the use of such funds for abortions); (16) international narcotics control; (17) migration and refugee assistance; (18) the Emergency Refugee and Migration Assistance Fund; (19) nonproliferation, anti-terrorism and related programs and activities (specifying conditions on funds for the Korean Peninsula Energy Development Organization (KEDO)); and (20) debt restructuring.

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

Makes development assistance funds for family planning available only to voluntary family planning projects which meet specified criteria. Requires the Administrator of AID to report any violation of such requirements to specified congressional committees.

Authorizes the President to withhold funds for economic revitalization programs in Bosnia and Herzegovina if the President certifies to the Committees on Appropriations that: (1) the Federation of Bosnia and Herzegovina has not complied with article III of annex 1-A of the General Framework Agreement for Peace in Bosnia and Herzegovina concerning the withdrawal of foreign forces; and (2) intelligence cooperation on training, investigations, and related activities between Iranian officials and Bosnian officials has not been terminated.

Requires the withholding of certain funds from Russia unless the President certifies to the Committees on Appropriations that: (1) such assistance is vital to the U.S. national security interest; and (2) Russia is taking steps to terminate arrangements to provide Iran with technology to develop a nuclear program.

Title III: Military Assistance - Makes appropriations for FY 1998 for: (1) international military education and training (IMET) (earmarking amounts for Indonesia and Guatemala, with specified restrictions); (2) foreign military financing grants and direct loans (earmarking amounts for Israel, Egypt, Jordan); and (3) international peacekeeping operations (subject to certain conditions).

Prohibits foreign military financing for Sudan, Liberia, and Guatemala.

Title IV: Multilateral Economic Assistance - Makes appropriations for FY 1998 for the U.S. contribution to: (1) the International Bank for Reconstruction and Development (World Bank); (2) the International Development Association; (3) the Inter-American Development Bank; (4) the Enterprise for the Americas Multilateral Investment Fund; (5) the Asian Development Bank; (6) the Asian Development Fund; (7) the African Development Fund; and (8) the European Bank for Reconstruction and Development.

Makes appropriations for FY 1998 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. Prohibits the use of funds for: (1) the Korean Peninsula Energy Development Organization (KEDO); and (2) the International Atomic Energy Agency (IAEA).

Title V: General Provisions - Sets forth limits on the use of appropriations, including that no more than 15 percent of such appropriations shall be obligated during the last month of availability. Renews certain prohibitions, restrictions, and conditions on the use of funds that appeared in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 (P.L. 105-118).

(Sec. 517) Prescribes conditions on assistance to the new independent states of the former Soviet Union.

(Sec. 518) Prohibits the use of development assistance funds for abortions or involuntary sterilizations as methods of family planning or to motivate or coerce any person to practice abortions, or provide any financial incentive to undergo sterilization.

(Sec. 518A) Amends the Foreign Assistance Act of 1961 to prohibit the availability of funds (either directly or as a subcontractor or subgrantee) for population planning activities or other population assistance to any foreign private, nongovernmental, or multilateral organization until it certifies that it will not, during the period for which the funds are made available: (1) perform abortions in any foreign country, except where the life of the mother would be endangered if the pregnancy were carried to term or in cases of forcible rape or incest; or (2) violate the laws of any foreign country concerning the circumstances under which abortion is permitted, regulated, or prohibited, or engage in any activity or effort to alter the laws or governmental policies of any foreign country concerning such circumstances.

Authorizes the President to waive the prohibition against population assistance to foreign organizations that perform abortions in foreign countries; but caps the amount of funds available in that fiscal year for population planning activities or other population assistance.

Prohibits the availability of funds for UNFPA in any fiscal year unless the President certifies that: (1) UNFPA has terminated all activities in the People's Republic of China, and will conduct no such activities during such fiscal year; or (2) during the 12 months preceding such certification there have been no abortions as the result of coercion associated with the family planning policies of the national government or other governmental entities within China.

(Sec. 519) Amends Federal law to extend through FY 2000 the authority to expend funds to transfer excess defense articles to countries eligible for the Partnership for Peace as well as assistance under the Support for East European Democracy (SEED) Act of 1989.

(Sec. 520) Adds Honduras to the list of countries for which no appropriations may be obligated or expended except through the regular notification procedures of the Committees on Appropriations.

(Sec. 523) Bars funding for indirect assistance or reparations to Cuba, Iraq, Libya, Iran, Syria, North Korea, or China unless the President certifies that the withholding of such funds is contrary to the U.S. 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 1999.

(Sec. 527) Authorizes the availability of ESF funds to provide general support for nongovernmental organizations located outside the People's Republic of China that have as their primary purpose fostering democracy in that country.

(Sec. 530) Prohibits U.S. sale of Stinger missiles in the Persian Gulf region, with certain exceptions.

(Sec. 534) Bars assistance to any country that is not in compliance with the United Nations (UN) sanctions against Iraq unless the President certifies to the Congress that such assistance: (1) is in the U.S. 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. 537) 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 establishing or 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 the recipient country.

(Sec. 538) Continues the authorization for the use of foreign assistance funds to support biodiversity conservation activities.

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

(Sec. 539) Expresses the sense of the Congress with respect to: (1) immediate public renunciation by Arab League countries of the boycott of Israel (reinstated in 1997) and of American firms having commercial ties with Israel; and (2) steps the President should take to encourage such renunciation.

(Sec. 540) Authorizes the use of ESF funds to strengthen the administration of justice in countries in Latin America, the Caribbean, and in other regions. Allows such use of ESF funds (including for anti-narcotics activities) for Bolivia, Colombia, and Peru, notwithstanding specified provisions of the Foreign Assistance Act of 1961.

(Sec. 545) Declares that assistance under this Act should make full use of American resources, including commodities, products, and services, to the maximum extent possible.

Declares the sense of the Congress that, to the greatest extent practicable, all equipment and products purchased with funds made available in this Act should be American-made. Requires Federal agency heads, in providing financial assistance to or entering into any contract with any entity using funds made available in this Act, to notify such entity of this intention.

(Sec. 546) Prohibits the use of funds to pay any assessments, arrearages, or dues of any UN member.

(Sec. 549) 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 U.S. national interest.

(Sec. 551) Prohibits the obligation of any appropriations for the Palestine Liberation Organization (PLO) for the West Bank and Gaza unless the President has exercised certain authorities to suspend prohibitions on assistance to the PLO.

(Sec. 552) Permits the President to provide up to a specified amount of commodities and services to the UN War Crimes Tribunal if doing so will contribute to a just resolution of charges regarding genocide or other violations of international law in the former Yugoslavia.

(Sec. 553) Authorizes disposal on a grant basis in foreign countries of demining equipment used in support of the clearing of land mines and unexploded ordnance for humanitarian purposes.

(Sec. 554) 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. 556) Limits the amount of certain foreign assistance funds to Latin America and the Caribbean region.

(Sec. 557) 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; (2) credits extended or guarantees issued under the Arms Export Control Act; or (3) any obligation for a Latin American country to pay for certain purchases of U.S. agricultural commodities.

Sets forth conditions for the exercise of such authority.

(Sec. 558) Authorizes the President to engage in certain debt buybacks or sales, subject to certain conditions.

(Sec. 560) Provides for bilateral and multilateral assistance sanctions against countries harboring war criminals indicted with respect to Rwanda or Nazi Germany.

(Sec. 560) Prohibits provision to the Government of Haiti of any funds appropriated or otherwise made available by this Act (except for humanitarian, electoral, counter narcotics, or law enforcement assistance, and subject to waiver in certain conditions), unless the President reports to the Congress that such Government: (1) is conducting thorough investigations of extrajudicial and political killings; (2) is cooperating with U.S. authorities in such investigations; (3) has substantially completed privatization of (or placed under long-term private management or concession) at least three major public enterprises; and (4) has taken action to remove from the Haitian National Police, national palace and residential guard, ministerial guard, and any other public security entity individuals who have committed human rights violations.

(Sec. 561) Requires a specified annual report of the Secretary of State containing the voting record of each foreign member country of the UN to include a side-by-side comparison of each country's overall support for the United States at the UN and the amount of U.S. assistance provided to it in FY 1997.

(Sec. 562) Prohibits the United States from paying any voluntary contribution to the UN, including the UN Development Program, unless the President certifies to the Congress 15 days in advance of such payment that the UN is not engaged in any effort to implement or impose any taxation on U.S. persons in order to raise revenue for itself or any of its specialized agencies.

(Sec. 563) Prohibits the obligation of any appropriations for the Palestine Liberation Organization (PLO), unless the President certifies to the Congress that it is in the U.S. national security interests.

(Sec. 564) Prohibits the use of funds for Croatia to relocate the remains of Croatian Ustashe soldiers at the site of the World War II concentration camp at Jasenovac, Croatia.

(Sec. 565) Prohibits the use of funds for the security forces of a foreign country if the Secretary of State believes they have committed gross violations of human rights, unless the Secretary reports to the Committees on Appropriations that such country is taking steps to bring the responsible persons to justice.

(Sec. 566) Requires that any agreement between the United States and the Government of Indonesia for the sale of lethal weapons shall state that such items will not be used in East Timor.

(Sec. 567) Provides for bilateral and multilateral assistance sanctions (with humanitarian, democratization, and certain infrastructure project exceptions) against countries harboring war criminals indicted with respect to the former Yugoslavia.

(Sec. 568) Makes funds available for FY 1998 for defense article stockpiles in foreign countries, including the Republic of Korea and Thailand.

(Sec. 569) Directs the President to give a detailed account to the Congress of all Federal agency obligations and expenditures for FY 1998 and 1999 associated with the proposed agreement to reduce greenhouse gas emissions.

(Sec. 570) Directs the President to withhold a specified amount of foreign assistance funds (except development or humanitarian assistance) from countries that violate any UN sanction against Libya.

(Sec. 571) Bars funds to the Government of Congo until the President reports to the Congress that it is cooperating fully with investigators from the UN in accounting for human rights violations committed there or in adjacent countries.

(Sec. 572) Earmarks specified foreign assistance funds for Israel, Egypt, Jordan, Lebanon, the West Bank and Gaza, the Israel-Lebanon Monitoring Group, the Multinational Force and Observers, the Middle East Regional Democracy Fund, Middle East Regional Cooperation, and Middle East Multilateral Working Groups.

(Sec. 573) Requires the President to submit to specified congressional committees a plan for the distribution of the assets of a Enterprise Fund before any distribution resulting from liquidation, dissolution, or winding up of the Fund.

(Sec. 574) Prohibits the availability of funds under this Act for assistance (other than for humanitarian, demining, or election-related programs or activities) for the Government of Cambodia. Directs the Secretary of the Treasury to instruct the U.S. executive directors of international financial institutions to oppose loans to Cambodia (except loans to support basic human needs).

(Sec. 576) Makes specified funds available for bilateral assistance for population planning activities.

(Sec. 577) Directs the Secretaries of Defense and of State to report jointly to the Congress on all overseas military training provided to, and proposed to be provided to, foreign military personnel under programs administered by the Defense and State Departments during FY 1998 and 1999.

(Sec. 578) Prohibits the use of funds under this Act for a voluntary contribution to, or assistance for, KEDO.

Title VI: Funds Appropriated to the President - International Monetary Programs - International Monetary Fund Reform and Authorization Act of 1998 - Earmarks the dollar equivalent to a specified amount of Special Drawing Rights for loans to the International Monetary Fund (IMF) under the New Arrangements to Borrow. Authorizes the use for the New Arrangements to Borrow of a specified amount of previously appropriated IMF Special Drawing Rights for the General Arrangements to Borrow.

(Sec. 601) Prohibits funds appropriated for the U.S. IMF quota from being obligated or made available to the IMF until after the Secretary of the Treasury and the Chairman of the Board of Governors of the Federal Reserve System jointly notify the appropriate congressional committees that the major IMF shareholders have publicly agreed to, and will seek to implement in the IMF, policies that provide for conditions in stand-by agreements or other arrangements regarding the use of IMF resources, requiring that the recipient country: (1) liberalize restrictions on trade in goods and services and on investment, at a minimum consistent with the terms of all international trade obligations and agreements; (2) eliminate the practice or policy of government directed lending on non-commercial terms or provision of market distorting subsidies to favored industries, enterprises, parties, or institutions; and (3) guarantee nondiscriminatory treatment in insolvency proceedings between domestic and foreign creditors, and for debtors and other concerned persons.

Directs the United States to exert its influence with the IMF and its members to encourage it to include as part of its conditions of stand-by agreements or other uses of the IMF's resources that the recipient country take action to remove discriminatory treatment between foreign and domestic creditors in its debt resolution proceedings.

Prescribes conditions for the obligation or availability of funds under this Act to the IMF.

(Sec. 602) Requires the Secretary of the Treasury to submit to the appropriate congressional committees two reports on the implementation of IMF financial stabilization programs in any country in connection with which the United States has made a commitment to provide or has provided stabilization fund financing.

(Sec. 603) Directs the President to establish an International Financial Institution Advisory Commission, which shall report to the appropriate congressional committees on the future role and responsibilities of the IMF and International Bank for Reconstruction and Development (the World Bank).

Requires the Secretary of the Treasury to instruct the U.S. Executive Director at the IMF to seek establishment of a permanent advisory committee to the Interim Committee of the Board of Governors of the IMF, to consist of elected members of the national legislatures of the member countries directly represented by appointed members of such Board.

(Sec. 605) Amends the Bretton Woods Agreement Act to authorize the U.S. Governor of the IMF to consent to an increase in the U.S. IMF quota of Special Drawing Rights (SDRs). Increases the maximum aggregate amount of loans the Secretary of the Treasury may make to the IMF. Authorizes increased appropriations (in SDRs).

(Sec. 607) Amends the International Financial Institutions Act to direct the Secretary of the Treasury to instruct the U.S. Executive Director of the IMF to promote vigorously specified policies to increase the effectiveness of the IMF, including its efforts to promote market-oriented reform, trade liberalization, economic growth, democratic governance, and social stability through certain actions, among them: (1) privatization of government enterprises; (2) economic deregulation; (3) development of internationally acceptable domestic bankruptcy laws; (4) burden-sharing by investors and creditors; (5) improvement of core labor standards; and (6) greater IMF transparency, including a more open release policy toward working papers, past evaluations, and other IMF documents.

Directs the Secretary of the Treasury to establish an International Monetary Fund Advisory Committee.

(Sec. 608) Declares that it is the sense of the Congress that Japan should assume a greater regional leadership role, which would coincide with its goal of promoting strong domestic demand-led growth and avoiding a significant increase in its external surplus with the United States and the countries of the Asia-Pacific region.

(Sec. 609) Amends the International Financial Institutions Act to require the Secretary of the Treasury to report to specified congressional committees on the implementation of IMF financial stabilization programs in any country in connection with which the United States has made a commitment to provide or has provided stabilization fund financing.

(Sec. 610) Directs the Secretary of the Treasury to submit to the appropriate congressional committees three reports on the steps taken by the United States, other members of the world community, and the international financial institutions to strengthen safeguards in the global financial system, and the progress made toward achieving specific goals toward the end of reforming the architecture of the international monetary system.

(Sec. 611) Amends the International Financial Institutions Act to require the Secretary of the Treasury to: (1) report annually to specified congressional committees on the progress (if any) made by the U.S. Executive Director of the IMF in influencing the IMF to adopt certain policies and reform its internal procedures, as called for in this title; and (2) certify to such committees that the Secretary has instructed the U.S. Executive Director at the IMF to facilitate timely General Accounting Office (GAO) access to IMF information and documents that GAO needs to perform financial reviews of the IMF that will facilitate the conduct of U.S. policy with respect to it.

Title VII: Additional General Provisions - Establishes a National Commission on Terrorism to review counter-terrorism policies regarding the prevention and punishment of international acts of terrorism directed at the United States. Authorizes appropriations.

(Sec. 702) Amends the Foreign Assistance Act of 1961 to repeal the President's authority to use any funds made available under such Act for unanticipated contingencies (emergencies).

Reduces the maximum amount of funds under such Act which may be allocated to any one country in any fiscal year (under special authorities for assistance and arms export sales, credits, and guaranties) unless that country is a victim of active aggression.