FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS APPROPRIATIONS ACT, 1998
(House of Representatives - July 30, 1997)

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[Pages H6380-H6402]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS 
                        APPROPRIATIONS ACT, 1998

  The SPEAKER pro tempore. Pursuant to the order of the House of 
Thursday, July 24, 1997, and rule XXIII, the Chair declares the House 
in the Committee of the Whole House on the State of the Union for the 
further consideration of the bill, H.R. 2159.

                              {time}  2130


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole

[[Page H6381]]

House on the State of the Union for the further consideration of the 
bill (H.R. 2159) making appropriations for foreign operations, export 
financing, and related programs for the fiscal year ending September 
30, 1998, and for other purposes, with Mr. Thornberry in the chair.
  The Clerk read the title of the bill.

                              {time}  2130

  The CHAIRMAN. When the Committee of the Whole rose earlier today, the 
amendment offered by the gentleman from Texas [Mr. Paul] had been 
disposed of and the bill has been read through Page 30, Line 3.
  Mr. CALLAHAN. Mr. Chairman, I ask unanimous consent that the 
Amendment No. 1 by the gentleman from New Jersey [Mr. Smith] provided 
for under the rule and debatable for 40 minutes and Amendment No. 2 by 
the gentleman from New York [Mr. Gilman] provided for by the order of 
the House of July 24 and debatable for 40 minutes, to title V, and 
Amendment No. 19 by the gentleman from California [Mr. Torres], 
Amendment No. 1 by the gentleman from Massachusetts [Mr. Kennedy], 
Amendment No. 30 by the gentleman from Massachusetts [Mr. Kennedy], and 
Amendment Nos. 17 and 18 by the gentleman from California [Mr. Torres] 
will be in order at a later time during the reading of the bill 
notwithstanding that title V may be closed.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Alabama?
  There was no objection.
  Mr. CALLAHAN. Mr. Chairman, I move to strike the last word.
  Mr. Chairman, there will be no more recorded votes tonight. We will 
set aside all amendments dealing with Population Planning and the 
School of Americas until tomorrow. We will continue to offer amendments 
tonight and debate them and roll votes on all amendments that require a 
vote until tomorrow.
  I expect we will be working tonight on this bill until about 10:30 or 
so, and I urge the Members to stay and offer amendments that were not 
included in the unanimous-consent request tonight.
  Ms. HARMAN. Mr. Chairman, I move to strike the last word, and I rise 
for the purpose of engaging in a colloquy with my friend and colleague 
the gentleman from Alabama [Mr. Callahan], chairman of the Subcommittee 
on Foreign Operations, Export Financing and Related Programs.
  I want to commend the committee for including in the foreign 
operations appropriations bill language conditioning the availability 
of the funds appropriated for Russia on the certification that Russia 
has ceased providing assistance to Iran's nuclear and ballistic missile 
programs.
  As my colleague is aware, in the very fluid Russian environment of 
today certain entities may be engaging in proliferation of ballistic 
missile technology without the consent of the Russian Government. The 
bill, as currently formulated, sends a strong message to the Russian 
Government about its own transactions with Iran, but it is vague on 
what the United States reaction will be if nongovernmental entities 
engage in proliferation.
  I seek to ensure that in further deliberations in conference and in 
committee my colleague will explore effective means to prevent Russian 
entities from engaging in further missile technology trade with Iran, 
whether they operate with the authorization of the Russian Government 
or without.
  For this purpose as well, Senator Kyl and I have introduced a 
bipartisan concurrent resolution expressing the sense of Congress that 
proliferation by Russian Governmental and nongovernmental entities must 
stop. Our resolution calls on the President to impose sanctions if 
Russia does not halt these activities and to take further action 
regarding our cooperation with Russia.
  Let me clarify finally that the resolution offered by Senator Kyl and 
me is not intended to affect the Cooperative Threat Reduction program, 
which I fully support, but we need to be clear that those individuals 
who proliferate will be penalized with the tools the U.S. has 
available.
  Mr. CALLAHAN. Mr. Chairman, will the gentlewoman yield?
  Ms. HARMAN. I yield to the gentleman from Alabama.
  Mr. CALLAHAN. Mr. Chairman, I fully agree with the gentlewoman from 
California's concerns regarding media reports of Russian missile 
transfers to Iran. This is an extremely serious issue, and she is right 
to draw attention to it. Her earlier discussions with the committee on 
this issue were greatly appreciated. The committee has focused on this 
issue under the leadership of the gentleman from California [Mr. 
Packard], and the bill before us contains very tough language on this 
subject. Last year's public law contained language prohibiting aid to 
the Government of Russia unless it terminated nuclear transfers to 
Iran, along with an ``important to the national security interest'' 
waiver which the administration has regularly used. This year the 
committee bill prohibits aid to the Government of Russia if it 
cooperates with Iran in the nuclear and missile areas. The waiver was 
raised to vital national security interests, which is a very high 
standard. If the President does use it, only 50 percent of the funds 
can be made available. This is very tough language, which reflects the 
House view, and this is an extremely serious problem.
  Mr. Chairman, I appreciate the gentlewoman's leadership and her 
attention to this issue.
  Ms. HARMAN. Mr. Chairman, I thank the gentleman from Alabama for his 
support and pledge to work with him, the committee and the full House 
and the other body to ensure that this activity is corrected.
  Mr. EWING. Mr. Chairman, I move to strike the last word. I would like 
to engage in a colloquy with the gentleman from Alabama [Mr. Callahan].
  Mr. Chairman, I have filed an amendment to H.R. 2159 to cut funding 
for Peru under the international military education and training 
program unless the President reports to Congress that the Government of 
Peru is working to provide timely, open and fair legal proceedings 
against American citizens held in jail in Peru. This is done as a 
result of the unconscionable treatment of Jennifer Davis who has been 
held for 8 months in a Peruvian prison without any of her proper due 
process rights.
  I will not offer that amendment because it is my understanding it 
would be ruled in violation of legislating on appropriations rule. 
However, this amendment was adopted in the Senate, and I strongly 
encourage the chairman to agree to this amendment during conference 
with the Senate.
  I would like to thank the gentleman for including report language in 
H.R. 2159 at my request, which expresses the concern of the committee 
about the fate of American citizens being imprisoned in Peru. This 
language, coupled with the amendment I just mentioned, should send a 
strong message to Peru that the United States Congress is finding it 
more and more difficult to justify sending foreign aid to Peru when 
that country fails to respect the basic human rights to timely and fair 
legal actions.
  Mr. CALLAHAN. Mr. Chairman, will the gentleman yield?
  Mr. EWING. I yield to the gentleman from Alabama.
  Mr. CALLAHAN. Mr. Chairman, I share the gentleman's concerns on this 
very important issue, and I appreciate the gentleman drawing it to the 
committee's attention. Because of his concerns and concerns voiced by 
other Members, we have included specific language on this issue in our 
report. I can assure the gentleman we will consider this issue in 
conference and we will work closely with the gentleman in conveying our 
concerns to the State Department and to the government of Peru.
  The CHAIRMAN. The Clerk will read.
  The Clerk read as follows:


                   FOREIGN MILITARY FINANCING PROGRAM

       For expenses necessary for grants to enable the President 
     to carry out the provisions of section 23 of the Arms Export 
     Control Act, $3,259,250,000: Provided, That funds 
     appropriated by this paragraph that are made available for 
     Israel and Egypt shall be made available only as grants: 
     Provided further, That the funds appropriated by this 
     paragraph for Israel shall be disbursed within thirty days of 
     enactment of this Act or by October 31, 1997, whichever is 
     later: Provided further, That to the extent that the 
     Government of Israel requests that funds be used for such 
     purposes, grants made available for Israel by this paragraph 
     shall, as agreed by Israel and the United States, be 
     available for advanced weapons systems, of which not less 
     than $475,000,000 shall be available for the procurement in 
     Israel of defense articles and defense services, including 
     research and development: Provided further, That funds made

[[Page H6382]]

     available under this paragraph shall be nonrepayable 
     notwithstanding any requirement in section 23 of the Arms 
     Export Control Act: Provided further, That none of the funds 
     made available under this heading shall be available for any 
     non-NATO country participating in the Partnership for Peace 
     Program except through the regular notification procedures of 
     the Committees on Appropriations.
       For the cost, as defined in section 502 of the 
     Congressional Budget Act of 1974, of direct loans authorized 
     by section 23 of the Arms Export Control Act as follows: cost 
     of direct loans, $60,000,000: Provided, That these funds are 
     available to subsidize gross obligations for the principal 
     amount of direct loans of not to exceed $657,000,000: 
     Provided further, That the rate of interest charged on such 
     loans shall be not less than the current average market yield 
     on outstanding marketable obligations of the United States of 
     comparable maturities: Provided further, That funds 
     appropriated under this heading shall be made available for 
     Greece and Turkey only on a loan basis, and the principal 
     amount of direct loans for each country shall not exceed the 
     following: $105,000,000 only for Greece and $150,000,000 only 
     for Turkey.
       None of the funds made available under this heading shall 
     be available to finance the procurement of defense articles, 
     defense services, or design and construction services that 
     are not sold by the United States Government under the Arms 
     Export Control Act unless the foreign country proposing to 
     make such procurements has first signed an agreement with the 
     United States Government specifying the conditions under 
     which such procurements may be financed with such funds: 
     Provided, That all country and funding level increases in 
     allocations shall be submitted through the regular 
     notification procedures of section 515 of this Act: Provided 
     further, That funds made available under this heading shall 
     be obligated upon apportionment in accordance with paragraph 
     (5)(C) of title 31, United States Code, section 1501(a): 
     Provided further, That none of the funds appropriated under 
     this heading shall be available for Sudan and Liberia: 
     Provided further, That funds made available under this 
     heading may be used, notwitstanding any other provision of 
     law, for activities related to the clearance of landmines and 
     unexploded ordnance, and may include activities implemented 
     through nongovernmental and international organizations: 
     Provided further, That only those countries for which 
     assistance was justified for the ``Foreign Military Sales 
     Financing Program'' in the fiscal year 1989 congressional 
     presentation for security assistance programs may utilize 
     funds made available under this heading for procurement of 
     defense articles, defense services or design and construction 
     services that are not sold by the United States Government 
     under the Arms Export Control Act: Provided further, That, 
     subject to the regular notification procedures of the 
     Committees on Appropriations, funds made available under this 
     heading for the cost of direct loans may also be used to 
     supplement the funds available under this heading for grants, 
     and funds made available under this heading for grants may 
     also be used to supplement the funds available under this 
     heading for the cost of direct loans: Provided further, That 
     funds appropriated under this heading shall be expended at 
     the minimum rate necessary to make timely payment for defense 
     articles and services: Provided further, That not more than 
     $23,250,000 of the funds appropriated under this heading may 
     be obligated for necessary expenses, including the purchase 
     of passenger motor vehicles for replacement only for use 
     outside of the United States, for the general costs of 
     administering military assistance and sales: Provided 
     further, That none of the funds appropriated under this 
     heading shall be available for Guatemala: Provided further, 
     That not more than $350,000,000 of funds realized pursuant to 
     section 21(e)(1)(A) of the Arms Export Control Act may be 
     obligated for expenses incurred by the Department of Defense 
     during fiscal year 1998 pursuant to section 43(b) of the Arms 
     Export Control Act, except that this limitation may be 
     exceeded only through the regular notification procedures of 
     the Committees on Appropriations.


                        PEACEKEEPING OPERATIONS

       For necessary expenses to carry out the provisions of 
     section 551 of the Foreign Assistance Act of 1961, 
     $77,500,000: Provided, That none of the funds appropriated 
     under this paragraph shall be obligated or expended except as 
     provided through the regular notification procedures of the 
     Committees on Appropriations.

               TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE


                  FUNDS APPROPRIATED TO THE PRESIDENT

                  INTERNATIONAL FINANCIAL INSTITUTIONS

     CONTRIBUTION TO THE INTERNATIONAL BANK FOR RECONSTRUCTION AND 
                              DEVELOPMENT

       For payment to the International Bank for Reconstruction 
     and Development by the Secretary of the Treasury, for the 
     United States contribution to the Global Environment Facility 
     (GEF), $35,000,000, to remain available until September 30, 
     1999.


       CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT ASSOCIATION

       For payment to the International Development Association by 
     the Secretary of the Treasury, $606,000,000, for the United 
     States contribution to the eleventh replenishment, to remain 
     available until expended: Provided, That none of the funds 
     may be obligated until the Secretary of the Treasury 
     certifies to the Committees on Appropriations that 
     procurement restrictions applicable to the United States 
     under the terms of the Interim Trust Fund have been lifted 
     and that the total unobligated balance available for open 
     competition has been released.


          CONTRIBUTION TO THE INTER-AMERICAN DEVELOPMENT BANK

       For payment to the Inter-American Development Bank by the 
     Secretary of the Treasury, for the United States share of the 
     paid-in share portion of the increase in capital stock, 
     $25,610,667, and for the United States share of the increase 
     in the resources of the Fund for Special Operations, 
     $20,835,000, to remain available until expended.


              LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

       The United States Governor of the Inter-American 
     Development Bank may subscribe without fiscal year limitation 
     to the callable capital portion of the United States share of 
     such capital stock in an amount not to exceed $1,503,718,910.


               CONTRIBUTION TO THE ASIAN DEVELOPMENT BANK

       For payment to the Asian Development Bank by the Secretary 
     of the Treasury for the United States share of the paid-in 
     portion of the increase in capital stock, $13,221,596, to 
     remain available until expended.


              LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

       The United States Governor of the Asian Development Bank 
     may subscribe without fiscal year limitation to the callable 
     capital portion of the United States share of such capital 
     stock in an amount not to exceed $647,858,204.


               CONTRIBUTION TO THE ASIAN DEVELOPMENT FUND

       For the United States contribution by the Secretary of the 
     Treasury to the increases in resources of the Asian 
     Development Fund, as authorized by the Asian Development Bank 
     Act, as amended (Public Law 89-369), $100,000,000, to remain 
     available until expended.


              CONTRIBUTION TO THE AFRICAN DEVELOPMENT FUND

       For the United States contribution by the Secretary of the 
     Treasury to the increase in resources of the African 
     Development Fund, $25,000,000, to remain available until 
     expended.


  CONTRIBUTION TO THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT

       For payment to the European Bank for Reconstruction and 
     Development by the Secretary of the Treasury, $35,778,717, 
     for the United States share of the paid-in portion of the 
     increase in capital stock, to remain available until 
     expended.


              LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

       The United States Governor of the European Bank for 
     Reconstruction and Development may subscribe without fiscal 
     year limitation to the callable capital portion of the United 
     States share of such capital stock in an amount not to exceed 
     $123,237,803.

                    North American Development Bank

       For payment to the North American Development Bank by the 
     Secretary of the Treasury, for the United States share of the 
     paid-in portion of the capital stock, $56,500,000, to remain 
     available until expended.


              LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

       The United States Governor of the North American 
     Development Bank may subscribe without fiscal year limitation 
     to the callable capital portion of the United States share of 
     the capital stock of the North American Development Bank in 
     an amount not to exceed $318,750,000.


                INTERNATIONAL ORGANIZATIONS AND PROGRAMS

       For necessary expenses to carry out the provisions of 
     section 301 of the Foreign Assistance Act of 1961, and of 
     section 2 of the United Nations Environment Program 
     Participation Act of 1973, $194,000,000: Provided, That none 
     of the funds appropriated under this heading shall be made 
     available for the United Nations Fund for Science and 
     Technology: Provided further, That none of the funds 
     appropriated under this heading that are made available to 
     the United Nations Population Fund (UNFPA) shall be made 
     available for activities in the People's Republic of China: 
     Provided further, That not more than $25,000,000 of the funds 
     appropriated under this heading may be made available to the 
     UNFPA: Provided further, That not more than one-half of this 
     amount may be provided to UNFPA before March 1, 1998, and 
     that no later than February 15, 1998, the Secretary of State 
     shall submit a report to the Committees on Appropriations 
     indicating the amount UNFPA is budgeting for the People's 
     Republic of China in 1998: Provided further, That any amount 
     UNFPA plans to spend in the People's Republic of China in 
     1998 shall be deducted from the amount of funds provided to 
     UNFPA after March 1, 1998, pursuant to the previous provisos: 
     Provided further, That with respect to any funds appropriated 
     under this heading that are made available to UNFPA, UNFPA 
     shall be required to maintain such funds in a separate 
     account and not commingle them with any other funds: Provided 
     further, That none of the funds appropriated under this

[[Page H6383]]

     heading may be made available to the Korean Peninsula Energy 
     Development Organization (KEDO) or the International Atomic 
     Energy Agency (IAEA): Provided further, That none of the 
     funds appropriated under this heading may be made available 
     to the United Nations development group or any similar 
     organization.

                      TITLE V--GENERAL PROVISIONS


             OBLIGATIONS DURING LAST MONTH OF AVAILABILITY

       Sec. 501. Except for the appropriations entitled 
     ``International Disaster Assistance'', and ``United States 
     Emergency Refugee and Migration Assistance Fund'', not more 
     than 15 per centum of any appropriation item made available 
     by this Act shall be obligated during the last month of 
     availability.


     PROHIBITION OF BILATERAL FUNDING FOR INTERNATIONAL FINANCIAL 
                              INSTITUTIONS

       Sec. 502. Notwithstanding section 614 of the Foreign 
     Assistance Act of 1961, as amended, none of the funds 
     contained in title II of this Act may be used to carry out 
     the provisions of section 209(d) of the Foreign Assistance 
     Act of 1961.


                    LIMITATION ON RESIDENCE EXPENSES

       Sec. 503. Of the funds appropriated or made available 
     pursuant to this Act, not to exceed $126,500 shall be for 
     official residence expenses of the Agency for International 
     Development during the current fiscal year: Provided, That 
     appropriate steps shall be taken to assure that, to the 
     maximum extent possible, United States-owned foreign 
     currencies are utilized in lieu of dollars.


                         LIMITATION ON EXPENSES

       Sec. 504. Of the funds appropriated or made available 
     pursuant to this Act, not to exceed $5,000 shall be for 
     entertainment expenses of the Agency for International 
     Development during the current fiscal year.


               LIMITATION ON REPRESENTATIONAL ALLOWANCES

       Sec. 505. Of the funds appropriated or made available 
     pursuant to this Act, not to exceed $95,000 shall be 
     available for representation allowances for the Agency for 
     International Development during the current fiscal year: 
     Provided, That appropriate steps shall be taken to assure 
     that, to the maximum extent possible, United States-owned 
     foreign currencies are utilized in lieu of dollars: Provided 
     further, That of the funds made available by this Act for 
     general costs of administering military assistance and sales 
     under the heading ``Foreign Military Financing Program'', not 
     to exceed $2,000 shall be available for entertainment 
     expenses and not to exceed $50,000 shall be available for 
     representation allowances: Provided further, That of the 
     funds made available by this Act under the heading 
     ``International Military Education and Training'', not to 
     exceed $50,000 shall be available for entertainment 
     allowances: Provided further, That of the funds made 
     available by this Act for the Inter-American Foundation, not 
     to exceed $2,000 shall be available for entertainment and 
     representation allowances: Provided further, That of the 
     funds made available by this Act for the Peace Corps, not to 
     exceed a total of $4,000 shall be available for entertainment 
     expenses: Provided further, That of the funds made available 
     by this Act under the heading ``Trade and Development 
     Agency'', not to exceed $2,000 shall be available for 
     representation and entertainment allowances.


                 PROHIBITION ON FINANCING NUCLEAR GOODS

       Sec. 506. None of the funds appropriated or made available 
     (other than funds for ``Nonproliferation, Anti-terrorism, 
     Demining and Related Programs'') pursuant to this Act, for 
     carrying out the Foreign Assistance Act of 1961, may be used, 
     except for purposes of nuclear safety, to finance the export 
     of nuclear equipment, fuel, or technology.


        PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN COUNTRIES

       Sec. 507. None of the funds appropriated or otherwise made 
     available pursuant to this Act shall be obligated or expended 
     to finance directly any assistance or reparations to Cuba, 
     Iraq, Libya, North Korea, Iran, Sudan, or Syria: Provided, 
     That for purposes of this section, the prohibition on 
     obligations or expenditures shall include direct loans, 
     credits, insurance and guarantees of the Export-Import Bank 
     or its agents.


                             MILITARY COUPS

       Sec. 508. None of the funds appropriated or otherwise made 
     available pursuant to this Act shall be obligated or expended 
     to finance directly any assistance to any country whose duly 
     elected Head of Government is deposed by military coup or 
     decree: Provided, That assistance may be resumed to such 
     country if the President determines and reports to the 
     Committees on Appropriations that subsequent to the 
     termination of assistance a democratically elected government 
     has taken office.


                         Parliamentary Inquiry

  Mr. BEREUTER. Mr. Chairman, I have a parliamentary inquiry.
  The CHAIRMAN. The gentleman will state his parliamentary inquiry.
  Mr. BEREUTER. Mr. Chairman, would it be appropriate now for the 
gentleman to offer an amendment to title V?
  The CHAIRMAN. Only to the section being read within title V.
  Mr. CALLAHAN. Mr. Chairman, I ask unanimous consent that the 
remainder of title V of the bill through page 93, line 15 be considered 
as read and printed in the Record and open to amendment at any point.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Alabama?
  Mr. DINGELL. Reserving the right to object, Mr. Chairman, what is the 
request?
  The CHAIRMAN. The request by the gentleman from Alabama is that the 
remainder of title V of the bill through page 93, line 15 be considered 
as read, printed in the Record and open to amendment at any point.
  Is there objection to the request of the gentleman from Alabama?
  Mr. DINGELL. Further reserving the right to object, Mr. Chairman, as 
I understood, it opens up the bill through page 93, line 15; is that 
correct?
  Mr. CALLAHAN. Mr. Chairman, will the gentleman yield?
  Mr. DINGELL. I yield to the gentleman from Alabama.
  Mr. CALLAHAN. On page 93 through line 15, yes.
  Mr. DINGELL. Mr. Chairman, I withdraw my reservation of objection.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Alabama?
  There was no objection.
  The text of the bill from page 42, line 3 through page 93, line 15 is 
as follows:


                       TRANSFERS BETWEEN ACCOUNTS

       Sec. 509. None of the funds made available by this Act may 
     be obligated under an appropriation account to which they 
     were not appropriated, except for transfers specifically 
     provided for in this Act, unless the President, prior to the 
     exercise of any authority contained in the Foreign Assistance 
     Act of 1961 to transfer funds, consults with and provides a 
     written policy justification to the Committees on 
     Appropriations of the House of Representatives and the 
     Senate: Provided, That the exercise of such authority shall 
     be subject to the regular notification procedures of the 
     Committees on Appropriations.


                  DEOBLIGATION/REOBLIGATION AUTHORITY

       Sec. 510. (a) Amounts certified pursuant to section 1311 of 
     the Supplemental Appropriations Act, 1955, as having been 
     obligated against appropriations heretofore made under the 
     authority of the Foreign Assistance Act of 1961 for the same 
     general purpose as any of the headings under title II of this 
     Act are, if deobligated, hereby continued available for the 
     same period as the respective appropriations under such 
     headings or until September 30, 1998, whichever is later, and 
     for the same general purpose, and for countries within the 
     same region as originally obligated: Provided, That the 
     Appropriations Committees of both Houses of the Congress are 
     notified fifteen days in advance of the reobligation of such 
     funds in accordance with regular notification procedures of 
     the Committees on Appropriations.
       (b) Obligated balances of funds appropriated to carry out 
     section 23 of the Arms Export Control Act as of the end of 
     the fiscal year immediately preceding the current fiscal year 
     are, if deobligated, hereby continued available during the 
     current fiscal year for the same purpose under any authority 
     applicable to such appropriations under this Act: Provided, 
     That the authority of this subsection may not be used in 
     fiscal year 1998.


                         AVAILABILITY OF FUNDS

       Sec. 511. No part of any appropriation contained in this 
     Act shall remain available for obligation after the 
     expiration of the current fiscal year unless expressly so 
     provided in this Act: Provided, That funds appropriated for 
     the purposes of chapters 1, 8, and 11 of part I, section 667, 
     and chapter 4 of part II of the Foreign Assistance Act of 
     1961, as amended, and funds provided under the heading 
     ``Assistance for Eastern Europe and the Baltic States'', 
     shall remain available until expended if such funds are 
     initially obligated before the expiration of their respective 
     periods of availability contained in this Act: Provided 
     further, That, notwithstanding any other provision of this 
     Act, any funds made available for the purposes of chapter 1 
     of part I and chapter 4 of part II of the Foreign Assistance 
     Act of 1961 which are allocated for cash disbursements in 
     order to address balance of payments or economic policy 
     reform objectives, shall remain available until expended: 
     Provided further, That the report required by section 653(a) 
     of the Foreign Assistance Act of 1961 shall designate for 
     each country, to the extent known at the time of submission 
     of such report, those funds allocated for cash disbursement 
     for balance of payment and economic policy reform purposes.


            LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT

       Sec. 512. No part of any appropriation contained in this 
     Act shall be used to furnish assistance to any country which 
     is in default during a period in excess of one calendar year 
     in payment to the United States of principal or interest on 
     any loan made to such country by the United States pursuant 
     to a program for which funds are appropriated under this Act: 
     Provided, That this section and section 620(q) of the Foreign 
     Assistance Act of 1961 shall not apply to funds

[[Page H6384]]

     made available in this Act or during the current fiscal year 
     for Nicaragua and Liberia, and for any narcotics-related 
     assistance for Colombia, Bolivia, and Peru authorized by the 
     Foreign Assistance Act of 1961 or the Arms Export Control 
     Act.


                           COMMERCE AND TRADE

       Sec. 513. (a) None of the funds appropriated or made 
     available pursuant to this Act for direct assistance and none 
     of the funds otherwise made available pursuant to this Act to 
     the Export-Import Bank and the Overseas Private Investment 
     Corporation shall be obligated or expended to finance any 
     loan, any assistance or any other financial commitments for 
     establishing or expanding production of any commodity for 
     export by any country other than the United States, if the 
     commodity is likely to be in surplus on world markets at the 
     time the resulting productive capacity is expected to become 
     operative and if the assistance will cause substantial injury 
     to United States producers of the same, similar, or competing 
     commodity: Provided, That such prohibition shall not apply to 
     the Export-Import Bank if in the judgment of its Board of 
     Directors the benefits to industry and employment in the 
     United States are likely to outweigh the injury to United 
     States producers of the same, similar, or competing 
     commodity, and the Chairman of the Board so notifies the 
     Committees on Appropriations.
       (b) None of the funds appropriated by this or any other Act 
     to carry out chapter 1 of part I of the Foreign Assistance 
     Act of 1961 shall be available for any testing or breeding 
     feasibility study, variety improvement or introduction, 
     consultancy, publication, conference, or training in 
     connection with the growth or production in a foreign country 
     of an agricultural commodity for export which would compete 
     with a similar commodity grown or produced in the United 
     States: Provided, That this subsection shall not prohibit--
       (1) activities designed to increase food security in 
     developing countries where such activities will not have a 
     significant impact in the export of agricultural commodities 
     of the United States; or
       (2) research activities intended primarily to benefit 
     American producers.


                          SURPLUS COMMODITIES

       Sec. 514. The Secretary of the Treasury shall instruct the 
     United States Executive Directors of the International Bank 
     for Reconstruction and Development, the International 
     Development Association, the International Finance 
     Corporation, the Inter-American Development Bank, the 
     International Monetary Fund, the Asian Development Bank, the 
     Inter-American Investment Corporation, the North American 
     Development Bank, the European Bank for Reconstruction and 
     Development, the African Development Bank, and the African 
     Development Fund to use the voice and vote of the United 
     States to oppose any assistance by these institutions, using 
     funds appropriated or made available pursuant to this Act, 
     for the production or extraction of any commodity or mineral 
     for export, if it is in surplus on world markets and if the 
     assistance will cause substantial injury to United States 
     producers of the same, similar, or competing commodity.


                       NOTIFICATION REQUIREMENTS

       Sec. 515. For the purposes of providing the Executive 
     Branch with the necessary administrative flexibility, none of 
     the funds made available under this Act for ``Child Survival 
     and Disease Programs Fund'', ``Development Assistance'', 
     ``International organizations and programs'', ``Trade and 
     Development Agency'', ``International narcotics control'', 
     ``Assistance for Eastern Europe and the Baltic States'', 
     ``Assistance for the New Independent States of the Former 
     Soviet Union'', ``Economic Support Fund'', ``Peacekeeping 
     operations'', ``Operating expenses of the Agency for 
     International Development'', ``Operating expenses of the 
     Agency for International Development Office of Inspector 
     General'', ``Nonproliferation, anti-terrorism, demining and 
     related programs'', ``Foreign Military Financing Program'', 
     ``International military education and training'', ``Inter-
     American Foundation'', ``African Development Foundation'', 
     ``Peace Corps'', ``Migration and refugee assistance'', shall 
     be available for obligation for activities, programs, 
     projects, type of materiel assistance, countries, or other 
     operations not justified or in excess of the amount justified 
     to the Appropriations Committees for obligation under any of 
     these specific headings unless the Appropriations Committees 
     of both Houses of Congress are previously notified fifteen 
     days in advance: Provided, That the President shall not enter 
     into any commitment of funds appropriated for the purposes of 
     section 23 of the Arms Export Control Act for the provision 
     of major defense equipment, other than conventional 
     ammunition, or other major defense items defined to be 
     aircraft, ships, missiles, or combat vehicles, not previously 
     justified to Congress or 20 per centum in excess of the 
     quantities justified to Congress unless the Committees on 
     Appropriations are notified fifteen days in advance of such 
     commitment: Provided further, That this section shall not 
     apply to any reprogramming for an activity, program, or 
     project under chapter 1 of part I of the Foreign Assistance 
     Act of 1961 of less than 10 per centum of the amount 
     previously justified to the Congress for obligation for such 
     activity, program, or project for the current fiscal year: 
     Provided further, That the requirements of this section or 
     any similar provision of this Act or any other Act, including 
     any prior Act requiring notification in accordance with the 
     regular notification procedures of the Committees on 
     Appropriations, may be waived if failure to do so would pose 
     a substantial risk to human health or welfare: Provided 
     further, That in case of any such waiver, 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, in the context of 
     the circumstances necessitating such waiver: Provided 
     further, That any notification provided pursuant to such a 
     waiver shall contain an explanation of the emergency 
     circumstances.
       Drawdowns made pursuant to section 506(a)(2) of the Foreign 
     Assistance Act of 1961 shall be subject to the regular 
     notification procedures of the Committees on Appropriations.


limitation on availability of funds for international organizations and 
                                programs

       Sec. 516. Notwithstanding any other provision of law or of 
     this Act, none of the funds provided for ``International 
     Organizations and Programs'' shall be available for the 
     United States proportionate share, in accordance with section 
     307(c) of the Foreign Assistance Act of 1961, for any 
     programs identified in section 307, or for Libya, Iran, or, 
     at the discretion of the President, Communist countries 
     listed in section 620(f) of the Foreign Assistance Act of 
     1961, as amended: Provided, That, subject to the regular 
     notification procedures of the Committees on Appropriations, 
     funds appropriated under this Act or any previously enacted 
     Act making appropriations for foreign operations, export 
     financing, and related programs, which are returned or not 
     made available for organizations and programs because of the 
     implementation of this section or any similar provision of 
     law, shall remain available for obligation through September 
     30, 1999.


              economic support fund assistance for israel

       Sec. 517. The Congress finds that progress on the peace 
     process in the Middle East is vitally important to United 
     States security interests in the region. The Congress 
     recognizes that, in fulfilling its obligations under the 
     Treaty of Peace Between the Arab Republic of Egypt and the 
     State of Israel, done at Washington on March 26, 1979, Israel 
     incurred severe economic burdens. Furthermore, the Congress 
     recognizes that an economically and militarily secure Israel 
     serves the security interests of the United States, for a 
     secure Israel is an Israel which has the incentive and 
     confidence to continue pursuing the peace process. Therefore, 
     the Congress declares that, subject to the availability of 
     appropriations, it is the policy and the intention of the 
     United States that the funds provided in annual 
     appropriations for the Economic Support Fund which are 
     allocated to Israel shall not be less than the annual debt 
     repayment (interest and principal) from Israel to the United 
     States Government in recognition that such a principle serves 
     United States interests in the region.


   prohibition on funding for abortions and involuntary sterilization

       Sec. 518. None of the funds made available to carry out 
     part I of the Foreign Assistance Act of 1961, as amended, may 
     be used to pay for the performance of abortions as a method 
     of family planning or to motivate or coerce any person to 
     practice abortions. None of the funds made available to carry 
     out part I of the Foreign Assistance Act of 1961, as amended, 
     may be used to pay for the performance of involuntary 
     sterilization as a method of family planning or to coerce or 
     provide any financial incentive to any person to undergo 
     sterilizations. None of the funds made available to carry out 
     part I of the Foreign Assistance Act of 1961, as amended, may 
     be used to pay for any biomedical research which relates in 
     whole or in part, to methods of, or the performance of, 
     abortions or involuntary sterilization as a means of family 
     planning. None of the funds made available to carry out part 
     I of the Foreign Assistance Act of 1961, as amended, may be 
     obligated or expended for any country or organization if the 
     President certifies that the use of these funds by any such 
     country or organization would violate any of the above 
     provisions related to abortions and involuntary 
     sterilizations: Provided, That none of the funds made 
     available under this Act may be used to lobby for or against 
     abortion.


                 authorization for population planning

       Sec. 518A. Not to exceed $385,000,000 of the funds 
     appropriated in title II of this Act may be made available 
     for population planning activities or other population 
     assistance.


                         REPORTING REQUIREMENT

       Sec. 519. The President shall submit to the Committees on 
     Appropriations the reports required by section 25(a)(1) of 
     the Arms Export Control Act.


                   SPECIAL NOTIFICATION REQUIREMENTS

       Sec. 520. None of the funds appropriated in this Act shall 
     be obligated or expended for Colombia, Haiti, Liberia, 
     Pakistan, Panama, Peru, Russia, Serbia, Sudan, or the 
     Democratic Republic of Congo except as provided through the 
     regular notification procedures of the Committees on 
     Appropriations.


              DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

       Sec. 521. For the purpose of this Act, ``program, project, 
     and activity'' shall be defined

[[Page H6385]]

     at the Appropriations Act account level and shall include all 
     Appropriations and Authorizations Acts earmarks, ceilings, 
     and limitations with the exception that for the following 
     accounts: Economic Support Fund and Foreign Military 
     Financing Program, ``program, project, and activity'' shall 
     also be considered to include country, regional, and central 
     program level funding within each such account; for the 
     development assistance accounts of the Agency for 
     International Development ``program, project, and activity'' 
     shall also be considered to include central program level 
     funding, either as (1) justified to the Congress, or (2) 
     allocated by the executive branch in accordance with a 
     report, to be provided to the Committees on Appropriations 
     within thirty days of enactment of this Act, as required by 
     section 653(a) of the Foreign Assistance Act of 1961.


                   CHILD SURVIVAL AND AIDS ACTIVITIES

       Sec. 522. Up to $8,000,000 of the funds made available by 
     this Act for assistance for family planning, health, child 
     survival, and AIDS, may be used to reimburse United States 
     Government agencies, agencies of State governments, 
     institutions of higher learning, and private and voluntary 
     organizations for the full cost of individuals (including for 
     the personal services of such individuals) detailed or 
     assigned to, or contracted by, as the case may be, the Agency 
     for International Development for the purpose of carrying out 
     family planning activities, child survival activities, and 
     activities relating to research on, and the treatment and 
     control of acquired immune deficiency syndrome in developing 
     countries: Provided, That funds appropriated by this Act that 
     are made available for child survival activities or 
     activities relating to research on, and the treatment and 
     control of, acquired immune deficiency syndrome may be made 
     available notwithstanding any provision of law that restricts 
     assistance to foreign countries: Provided further, That funds 
     appropriated by this Act that are made available for family 
     planning activities may be made available notwithstanding 
     section 512 of this Act and section 620(q) of the Foreign 
     Assistance Act of 1961.


       PROHIBITION AGAINST INDIRECT FUNDING TO CERTAIN COUNTRIES

       Sec. 523. None of the funds appropriated or otherwise made 
     available pursuant to this Act shall be obligated to finance 
     indirectly any assistance or reparations to Cuba, Iraq, 
     Libya, Iran, Syria, North Korea, or the People's Republic of 
     China, unless the President of the United States certifies 
     that the withholding of these funds is contrary to the 
     national interest of the United States.


                           RECIPROCAL LEASING

       Sec. 524. Section 61(a) of the Arms Export Control Act is 
     amended by striking out ``1997'' and inserting in lieu 
     thereof ``1998''.


                NOTIFICATION ON EXCESS DEFENSE EQUIPMENT

       Sec. 525. Prior to providing excess Department of Defense 
     articles in accordance with section 516(a) of the Foreign 
     Assistance Act of 1961, the Department of Defense shall 
     notify the Committees on Appropriations to the same extent 
     and under the same conditions as are other committees 
     pursuant to subsection (c) of that section: Provided, That 
     before issuing a letter of offer to sell excess defense 
     articles under the Arms Export Control Act, the Department of 
     Defense shall notify the Committees on Appropriations in 
     accordance with the regular notification procedures of such 
     Committees: Provided further, That such Committees shall also 
     be informed of the original acquisition cost of such defense 
     articles.


                       AUTHORIZATION REQUIREMENT

       Sec. 526. Funds appropriated by this Act may be obligated 
     and expended subject to section 10 of Public Law 91-672 and 
     section 15 of the State Department Basic Authorities Act of 
     1956.


       PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST COUNTRIES

       Sec. 527. (a) Notwithstanding any other provision of law, 
     funds appropriated for bilateral assistance under any heading 
     of this Act and funds appropriated under any such heading in 
     a provision of law enacted prior to enactment of this Act, 
     shall not be made available to any country which the 
     President determines--
       (1) grants sanctuary from prosecution to any individual or 
     group which has committed an act of international terrorism, 
     or
       (2) otherwise supports international terrorism.
       (b) The President may waive the application of subsection 
     (a) to a country if the President determines that national 
     security or humanitarian reasons justify such waiver. The 
     President shall publish each waiver in the Federal Register 
     and, at least fifteen days before the waiver takes effect, 
     shall notify the Committees on Appropriations of the waiver 
     (including the justification for the waiver) in accordance 
     with the regular notification procedures of the Committees on 
     Appropriations.


                 COMMERCIAL LEASING OF DEFENSE ARTICLES

       Sec. 528. Notwithstanding any other provision of law, and 
     subject to the regular notification procedures of the 
     Committees on Appropriations, the authority of section 23(a) 
     of the Arms Export Control Act may be used to provide 
     financing to Israel, Egypt and NATO and major non-NATO allies 
     for the procurement by leasing (including leasing with an 
     option to purchase) of defense articles from United States 
     commercial suppliers, not including Major Defense Equipment 
     (other than helicopters and other types of aircraft having 
     possible civilian application), if the President determines 
     that there are compelling foreign policy or national security 
     reasons for those defense articles being provided by 
     commercial lease rather than by government-to-government sale 
     under such Act.


                         COMPETITIVE INSURANCE

       Sec. 528A. All Agency for International Development 
     contracts and solicitations, and subcontracts entered into 
     under such contracts, shall include a clause requiring that 
     United States insurance companies have a fair opportunity to 
     bid for insurance when such insurance is necessary or 
     appropriate.


                  STINGERS IN THE PERSIAN GULF REGION

       Sec. 529. Except as provided in section 581 of the Foreign 
     Operations, Export Financing, and Related Programs 
     Appropriations Act, 1990, the United States may not sell or 
     otherwise make available any Stingers to any country 
     bordering the Persian Gulf under the Arms Export Control Act 
     or chapter 2 of part II of the Foreign Assistance Act of 
     1961.


                          DEBT-FOR-DEVELOPMENT

       Sec. 530. In order to enhance the continued participation 
     of nongovernmental organizations in economic assistance 
     activities under the Foreign Assistance Act of 1961, 
     including endowments, debt-for-development and debt-for-
     nature exchanges, a nongovernmental organization which is a 
     grantee or contractor of the Agency for International 
     Development may place in interest bearing accounts funds made 
     available under this Act or prior Acts or local currencies 
     which accrue to that organization as a result of economic 
     assistance provided under title II of this Act and any 
     interest earned on such investment shall be used for the 
     purpose for which the assistance was provided to that 
     organization.


                           SEPARATE ACCOUNTS

       Sec. 531. (a) Separate Accounts for Local Currencies.--(1) 
     If assistance is furnished to the government of a foreign 
     country under chapters 1 and 10 of part I or chapter 4 of 
     part II of the Foreign Assistance Act of 1961 under 
     agreements which result in the generation of local currencies 
     of that country, the Administrator of the Agency for 
     International Development shall--
       (A) require that local currencies be deposited in a 
     separate account established by that government;
       (B) enter into an agreement with that government which sets 
     forth--
       (i) the amount of the local currencies to be generated, and
       (ii) the terms and conditions under which the currencies so 
     deposited may be utilized, consistent with this section; and
       (C) establish by agreement with that government the 
     responsibilities of the Agency for International Development 
     and that government to monitor and account for deposits into 
     and disbursements from the separate account.
       (2) Uses of Local Currencies.--As may be agreed upon with 
     the foreign government, local currencies deposited in a 
     separate account pursuant to subsection (a), or an equivalent 
     amount of local currencies, shall be used only--
       (A) to carry out chapters 1 or 10 of part I or chapter 4 of 
     part II (as the case may be), for such purposes as--
       (i) project and sector assistance activities, or
       (ii) debt and deficit financing; or
       (B) for the administrative requirements of the United 
     States Government.
       (3) Programming Accountability.--The Agency for 
     International Development shall take all necessary steps to 
     ensure that the equivalent of the local currencies disbursed 
     pursuant to subsection (a)(2)(A) from the separate account 
     established pursuant to subsection (a)(1) are used for the 
     purposes agreed upon pursuant to subsection (a)(2).
       (4) Termination of Assistance Programs.--Upon termination 
     of assistance to a country under chapters 1 or 10 of part I 
     or chapter 4 of part II (as the case may be), any 
     unencumbered balances of funds which remain in a separate 
     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.
       (5) Conforming Amendments.--The provisions of this 
     subsection shall supersede the tenth and eleventh provisos 
     contained under the heading ``Sub-Saharan Africa, Development 
     Assistance'' as included in the Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 1989 and 
     sections 531(d) and 609 of the Foreign Assistance Act of 
     1961.
       (6) Reporting Requirement.--The Administrator of the Agency 
     for International Development shall report on an annual basis 
     as part of the justification documents submitted to the 
     Committees on Appropriations on the use of local currencies 
     for the administrative requirements of the United States 
     Government as authorized in subsection (a)(2)(B), and such 
     report shall include the amount of local currency (and United 
     States dollar equivalent) used and/or to be used for such 
     purpose in each applicable country.
       (b) Separate Accounts for Cash Transfers.--(1) If 
     assistance is made available to the government of a foreign 
     country, under chapters 1 or 10 of part I or chapter 4 of 
     part II of the Foreign Assistance Act of 1961, as cash 
     transfer assistance or as nonproject sector assistance, that 
     country shall be required to maintain such funds in a 
     separate account and not commingle them with any other funds.
       (2) Applicability of Other Provisions of Law.--Such funds 
     may be obligated and expended notwithstanding provisions of 
     law

[[Page H6386]]

     which are inconsistent with the nature of this assistance 
     including provisions which are referenced in the Joint 
     Explanatory Statement of the Committee of Conference 
     accompanying House Joint Resolution 648 (H. Report No. 98-
     1159).
       (3) Notification.--At least fifteen days prior to 
     obligating any such cash transfer or nonproject sector 
     assistance, the President shall submit a notification through 
     the regular notification procedures of the Committees on 
     Appropriations, which shall include a detailed description of 
     how the funds proposed to be made available will be used, 
     with a discussion of the United States interests that will be 
     served by the assistance (including, as appropriate, a 
     description of the economic policy reforms that will be 
     promoted by such assistance).
       (4) Exemption.--Nonproject sector assistance funds may be 
     exempt from the requirements of subsection (b)(1) only 
     through the notification procedures of the Committees on 
     Appropriations.


  COMPENSATION FOR UNITED STATES EXECUTIVE DIRECTORS TO INTERNATIONAL 
                         FINANCIAL INSTITUTIONS

       Sec. 532. (a) No funds appropriated by this Act may be made 
     as payment to any international financial institution while 
     the United States Executive Director to such institution is 
     compensated by the institution at a rate which, together with 
     whatever compensation such Director receives from the United 
     States, is in excess of the rate provided for an individual 
     occupying a position at level IV of the Executive Schedule 
     under section 5315 of title 5, United States Code, or while 
     any alternate United States Director to such institution is 
     compensated by the institution at a rate in excess of the 
     rate provided for an individual occupying a position at level 
     V of the Executive Schedule under section 5316 of title 5, 
     United States Code.
       (b) For purposes of this section, ``international financial 
     institutions'' are: the International Bank for Reconstruction 
     and Development, the Inter-American Development Bank, the 
     Asian Development Bank, the Asian Development Fund, the 
     African Development Bank, the African Development Fund, the 
     International Monetary Fund, the North American Development 
     Bank, and the European Bank for Reconstruction and 
     Development.


         compliance with united nations sanctions against iraq

       Sec. 533. None of the funds appropriated or otherwise made 
     available pursuant to this Act to carry out the Foreign 
     Assistance Act of 1961 (including title IV of chapter 2 of 
     part I, relating to the Overseas Private Investment 
     Corporation) or the Arms Export Control Act may be used to 
     provide assistance to any country that is not in compliance 
     with the United Nations Security Council sanctions against 
     Iraq unless the President determines and so certifies to the 
     Congress that--
       (1) such assistance is in the national interest of the 
     United States;
       (2) such assistance will directly benefit the needy people 
     in that country; or
       (3) the assistance to be provided will be humanitarian 
     assistance for foreign nationals who have fled Iraq and 
     Kuwait.


           competitive pricing for sales of defense articles

       Sec. 534. Direct costs associated with meeting a foreign 
     customer's additional or unique requirements will continue to 
     be allowable under contracts under section 22(d) of the Arms 
     Export Control Act. Loadings applicable to such direct costs 
     shall be permitted at the same rates applicable to 
     procurement of like items purchased by the Department of 
     Defense for its own use.


 EXTENSION OF AUTHORITY TO OBLIGATE FUNDS TO CLOSE THE SPECIAL DEFENSE 
                            ACQUISITION FUND

       Sec. 535. Title III of Public Law 103-306 is amended under 
     the heading ``Special Defense Acquisition Fund'' by striking 
     ``1998'' and inserting ``2000''.


                          CASH FLOW FINANCING

       Sec. 536. For each country that has been approved for cash 
     flow financing (as defined in section 25(d) of the Arms 
     Export Control Act, as added by section 112(b) of Public Law 
     99-83) under the Foreign Military Financing Program, any 
     Letter of Offer and Acceptance or other purchase agreement, 
     or any amendment thereto, for a procurement in excess of 
     $100,000,000 that is to be financed in whole or in part with 
     funds made available under this Act shall be submitted 
     through the regular notification procedures to the Committees 
     on Appropriations.


AUTHORITIES FOR THE PEACE CORPS, THE INTER-AMERICAN FOUNDATION AND THE 
                     AFRICAN DEVELOPMENT FOUNDATION

       Sec. 537. Unless expressly provided to the contrary, 
     provisions of this or any other Act, including provisions 
     contained in prior Acts authorizing or making appropriations 
     for foreign operations, export financing, and related 
     programs, shall not be construed to prohibit activities 
     authorized by or conducted under the Peace Corps Act, the 
     Inter-American Foundation Act, or the African Development 
     Foundation Act. The appropriate agency shall promptly report 
     to the Committees on Appropriations whenever it is conducting 
     activities or is proposing to conduct activities in a country 
     for which assistance is prohibited.


                  IMPACT ON JOBS IN THE UNITED STATES

       Sec. 538. None of the funds appropriated by this Act may be 
     obligated or expended to provide--
       (a) any financial incentive to a business enterprise 
     currently located in the United States for the purpose of 
     inducing such an enterprise to relocate outside the United 
     States if such incentive or inducement is likely to reduce 
     the number of employees of such business enterprise in the 
     United States because United States production is being 
     replaced by such enterprise outside the United States;
       (b) assistance for the purpose of establishing or 
     developing in a foreign country any export processing zone or 
     designated area in which the tax, tariff, labor, environment, 
     and safety laws of that country do not apply, in part or in 
     whole, to activities carried out within that zone or area, 
     unless the President determines and certifies that such 
     assistance is not likely to cause a loss of jobs within the 
     United States; or
       (c) assistance for any project or activity that contributes 
     to the violation of internationally recognized workers 
     rights, as defined in section 502(a)(4) of the Trade Act of 
     1974, of workers in the recipient country, including any 
     designated zone or area in that country: Provided, That in 
     recognition that the application of this subsection should be 
     commensurate with the level of development of the recipient 
     country and sector, the provisions of this subsection shall 
     not preclude assistance for the informal sector in such 
     country, micro and small-scale enterprise, and smallholder 
     agriculture.


    restrictions on the termination of sanctions against serbia and 
                               montenegro

       Sec. 539. (a) Restrictions.--Notwithstanding any other 
     provision of law, no sanction, prohibition, or requirement 
     described in section 1511 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160), 
     with respect to Serbia or Montenegro, may cease to be 
     effective, unless--
       (1) the President first submits to the Congress a 
     certification described in subsection (b); and
       (2) the requirements of section 1511 of that Act are met.
       (b) Certification.--A certification described in this 
     subsection is a certification that--
       (1) there is substantial progress toward--
       (A) the realization of a separate identity for Kosova and 
     the right of the people of Kosova to govern themselves; or
       (B) the creation of an international protectorate for 
     Kosova;
       (2) there is substantial improvement in the human rights 
     situation in Kosova;
       (3) international human rights observers are allowed to 
     return to Kosova; and
       (4) the elected government of Kosova is permitted to meet 
     and carry out its legitimate mandate as elected 
     representatives of the people of Kosova.
       (c) Waiver Authority.--The President may waive the 
     application in whole or in part, of subsection (a) if the 
     President certifies to the Congress that the President has 
     determined that the waiver is necessary to meet emergency 
     humanitarian needs or to achieve a negotiated settlement of 
     the conflict in Bosnia and Herzegovina that is acceptable to 
     the parties.


                          special authorities

       Sec. 540. (a) Funds appropriated in title II of this Act 
     that are made available for Afghanistan, Lebanon, and 
     Cambodia, and for victims of war, displaced children, 
     displaced Burmese, humanitarian assistance for Romania, and 
     humanitarian assistance for the peoples of Bosnia and 
     Herzegovina, Croatia, and Kosova, may be made available 
     notwithstanding any other provision of law: Provided, That 
     any such funds that are made available for Cambodia shall be 
     subject to the provisions of section 531(e) of the Foreign 
     Assistance Act of 1961 and section 906 of the International 
     Security and Development Cooperation Act of 1985.
       (b) Funds appropriated by this Act to carry out the 
     provisions of sections 103 through 106 of the Foreign 
     Assistance Act of 1961 may be used, notwithstanding any other 
     provision of law, for the purpose of supporting tropical 
     forestry and energy programs aimed at reducing emissions of 
     greenhouse gases, and for the purpose of supporting 
     biodiversity conservation activities: Provided, That such 
     assistance shall be subject to sections 116, 502B, and 620A 
     of the Foreign Assistance Act of 1961.
       (c) The Agency for International Development may employ 
     personal services contractors, notwithstanding any other 
     provision of law, for the purpose of administering programs 
     for the West Bank and Gaza.


        policy on terminating the arab league boycott of israel

       Sec. 541. It is the sense of the Congress that--
       (1) the Arab League countries should immediately and 
     publicly renounce the primary boycott of Israel and the 
     secondary and tertiary boycott of American firms that have 
     commercial ties with Israel; and
       (2) the decision by the Arab League in 1997 to reinstate 
     the boycott against Israel was deeply troubling and 
     disappointing; and
       (3) the Arab League should immediately rescind its decision 
     on the boycott and its members should develop normal 
     relations with their neighbor Israel; and
       (4) the President should--
       (A) take more concrete steps to encourage vigorously Arab 
     League countries to renounce publicly the primary boycotts of 
     Israel and the secondary and tertiary boycotts

[[Page H6387]]

     of American firms that have commercial relations with Israel 
     as a confidence-building measure;
       (B) take into consideration the participation of any 
     recipient country in the primary boycott of Israel and the 
     secondary and tertiary boycotts of American firms that have 
     commercial relations with Israel when determining whether to 
     sell weapons to said country;
       (C) report to Congress on the specific steps being taken by 
     the President to bring about a public renunciation of the 
     Arab primary boycott of Israel and the secondary and tertiary 
     boycotts of American firms that have commercial relations 
     with Israel and to expand the process of normalizing ties 
     between Arab League countries and Israel; and
       (D) encourage the allies and trading partners of the United 
     States to enact laws prohibiting businesses from complying 
     with the boycott and penalizing businesses that do comply.


                       anti-narcotics activities

       Sec. 542. (a) Of the funds appropriated or otherwise made 
     available by this Act for ``Economic Support Fund'', 
     assistance may be provided to strengthen the administration 
     of justice in countries in Latin America and the Caribbean 
     and in other regions consistent with the provisions of 
     section 534(b) of the Foreign Assistance Act of 1961, except 
     that programs to enhance protection of participants in 
     judicial cases may be conducted notwithstanding section 660 
     of that Act.
       (b) Funds made available pursuant to this section may be 
     made available notwithstanding section 534(c) and the second 
     and third sentences of section 534(e) of the Foreign 
     Assistance Act of 1961. Funds made available pursuant to 
     subsection (a) for Bolivia, Colombia and Peru may be made 
     available notwithstanding section 534(c) and the second 
     sentence of section 534(e) of the Foreign Assistance Act of 
     1961.


                       eligibility for assistance

       Sec. 543. (a) Assistance Through Nongovernmental 
     Organizations.--Restrictions contained in this or any other 
     Act with respect to assistance for a country shall not be 
     construed to restrict assistance in support of programs of 
     nongovernmental organizations from funds appropriated by this 
     Act to carry out the provisions of chapters 1 and 10 and 11 
     of part I, and chapter 4 of part II, of the Foreign 
     Assistance Act of 1961: Provided, That the President shall 
     take into consideration, in any case in which a restriction 
     on assistance would be applicable but for this subsection, 
     whether assistance in support of programs of nongovernmental 
     organizations is in the national interest of the United 
     States: Provided further, That before using the authority of 
     this subsection to furnish assistance in support of programs 
     of nongovernmental organizations, the President shall notify 
     the Committees on Appropriations under the regular 
     notification procedures of those committees, including a 
     description of the program to be assisted, the assistance to 
     be provided, and the reasons for furnishing such assistance: 
     Provided further, That nothing in this subsection shall be 
     construed to alter any existing statutory prohibitions 
     against abortion or involuntary sterilizations contained in 
     this or any other Act.
       (b) Public Law 480.--During fiscal year 1998, restrictions 
     contained in this or any other Act with respect to assistance 
     for a country shall not be construed to restrict assistance 
     under the Agricultural Trade Development and Assistance Act 
     of 1954: Provided, That none of the funds appropriated to 
     carry out title I of such Act and made available pursuant to 
     this subsection may be obligated or expended except as 
     provided through the regular notification procedures of the 
     Committees on Appropriations.
       (c) Exception.--This section shall not apply--
       (1) with respect to section 620A of the Foreign Assistance 
     Act or any comparable provision of law prohibiting assistance 
     to countries that support international terrorism; or
       (2) with respect to section 116 of the Foreign Assistance 
     Act of 1961 or any comparable provision of law prohibiting 
     assistance to countries that violate internationally 
     recognized human rights.


                                earmarks

       Sec. 544. (a) Funds appropriated by this Act which are 
     earmarked may be reprogrammed for other programs within the 
     same account notwithstanding the earmark if compliance with 
     the earmark is made impossible by operation of any provision 
     of this or any other Act or, with respect to a country with 
     which the United States has an agreement providing the United 
     States with base rights or base access in that country, if 
     the President determines that the recipient for which funds 
     are earmarked has significantly reduced its military or 
     economic cooperation with the United States since enactment 
     of the Foreign Operations, Export Financing, and Related 
     Programs Appropriations Act, 1991; however, before exercising 
     the authority of this subsection with regard to a base rights 
     or base access country which has significantly reduced its 
     military or economic cooperation with the United States, the 
     President shall consult with, and shall provide a written 
     policy justification to the Committees on Appropriations: 
     Provided, That any such reprogramming shall be subject to the 
     regular notification procedures of the Committees on 
     Appropriations: Provided further, That assistance that is 
     reprogrammed pursuant to this subsection shall be made 
     available under the same terms and conditions as originally 
     provided.
       (b) In addition to the authority contained in subsection 
     (a), the original period of availability of funds 
     appropriated by this Act and administered by the Agency for 
     International Development that are earmarked for particular 
     programs or activities by this or any other Act shall be 
     extended for an additional fiscal year if the Administrator 
     of such agency determines and reports promptly to the 
     Committees on Appropriations that the termination of 
     assistance to a country or a significant change in 
     circumstances makes it unlikely that such earmarked funds can 
     be obligated during the original period of availability: 
     Provided, That such earmarked funds that are continued 
     available for an additional fiscal year shall be obligated 
     only for the purpose of such earmark.


                         ceilings and earmarks

       Sec. 545. Ceilings and earmarks contained in this Act shall 
     not be applicable to funds or authorities appropriated or 
     otherwise made available by any subsequent Act unless such 
     Act specifically so directs.


                 prohibition on publicity or propaganda

       Sec. 546. No part of any appropriation contained in this 
     Act shall be used for publicity or propaganda purposes within 
     the United States not authorized before the date of enactment 
     of this Act by the Congress: Provided, That not to exceed 
     $500,000 may be made available to carry out the provisions of 
     section 316 of Public Law 96-533.


                       use of american resources

       Sec. 547. To the maximum extent possible, assistance 
     provided under this Act should make full use of American 
     resources, including commodities, products, and services.


           prohibition of payments to united nations members

       Sec. 548. None of the funds appropriated or made available 
     pursuant to this Act for carrying out the Foreign Assistance 
     Act of 1961, may be used to pay in whole or in part any 
     assessments, arrearages, or dues of any member of the United 
     Nations.


                          consulting services

       Sec. 549. The expenditure of any appropriation under this 
     Act for any consulting service through procurement contract, 
     pursuant to section 3109 of title 5, United States Code, 
     shall be limited to those contracts where such expenditures 
     are a matter of public record and available for public 
     inspection, except where otherwise provided under existing 
     law, or under existing Executive order pursuant to existing 
     law.


             private voluntary organizations--documentation

       Sec. 550. None of the funds appropriated or made available 
     pursuant to this Act shall be available to a private 
     voluntary organization which fails to provide upon timely 
     request any document, file, or record necessary to the 
     auditing requirements of the Agency for International 
     Development.


  prohibition on assistance to foreign governments that export lethal 
   military equipment to countries supporting international terrorism

       Sec. 551. (a) None of the funds appropriated or otherwise 
     made available by this Act may be available to any foreign 
     government which provides lethal military equipment to a 
     country the government of which the Secretary of State has 
     determined is a terrorist government for purposes of section 
     40(d) of the Arms Export Control Act. The prohibition under 
     this section with respect to a foreign government shall 
     terminate 12 months after that government ceases to provide 
     such military equipment. This section applies with respect to 
     lethal military equipment provided under a contract entered 
     into after April 24, 1996.
       (b) Assistance restricted by subsection (a) or any other 
     similar provision of law, may be furnished if the President 
     determines that furnishing such assistance is important to 
     the national interests of the United States.
       (c) Whenever the waiver of subsection (b) is exercised, the 
     President shall submit to the appropriate congressional 
     committees a report with respect to the furnishing of such 
     assistance. Any such report shall include a detailed 
     explanation of the assistance estimated to be provided, 
     including the estimated dollar amount of such assistance, and 
     an explanation of how the assistance furthers United States 
     national interests.


 withholding of assistance for parking fines owed by foreign countries

       Sec. 552. (a) In General.--Of the funds made available for 
     a foreign country under part I of the Foreign Assistance Act 
     of 1961, an amount equivalent to 110 percent of the total 
     unpaid fully adjudicated parking fines and penalties owed to 
     the District of Columbia by such country as of the date of 
     enactment of this Act shall be withheld from obligation for 
     such country until the Secretary of State certifies and 
     reports in writing to the appropriate congressional 
     committees that such fines and penalties are fully paid to 
     the government of the District of Columbia.
       (b) Definition.--For purposes of this section, the term 
     ``appropriate congressional committees'' means the Committee 
     on Foreign Relations and the Committee on Appropriations of 
     the Senate and the Committee on International Relations and 
     the Committee on Appropriations of the House of 
     Representatives.

[[Page H6388]]

    limitation on assistance for the plo for the west bank and gaza

       Sec. 553. None of the funds appropriated by this Act may be 
     obligated for assistance for the Palestine Liberation 
     Organization for the West Bank and Gaza unless the President 
     has exercised the authority under section 604(a) of the 
     Middle East Peace Facilitation Act of 1995 (title VI of 
     Public Law 104-107) or any other legislation to suspend or 
     make inapplicable section 307 of the Foreign Assistance Act 
     of 1961 and that suspension is still in effect: Provided, 
     That if the President fails to make the certification under 
     section 604(b)(2) of the Middle East Peace Facilitation Act 
     of 1995 or to suspend the prohibition under other 
     legislation, funds appropriated by this Act may not be 
     obligated for assistance for the Palestine Liberation 
     Organization for the West Bank and Gaza.


                 export financing transfer authorities

       Sec. 554. Not to exceed 5 percent of any appropriation 
     other than for administrative expenses made available for 
     fiscal year 1998 for programs under title I of this Act may 
     be transferred between such appropriations for use for any of 
     the purposes, programs and activities for which the funds in 
     such receiving account may be used, but no such 
     appropriation, except as otherwise specifically provided, 
     shall be increased by more than 25 percent by any such 
     transfer: Provided, That the exercise of such authority shall 
     be subject to the regular notification procedures of the 
     Committees on Appropriations.


                          war crimes tribunals

       Sec. 555. If the President determines that doing so will 
     contribute to a just resolution of charges regarding genocide 
     or other violations of international humanitarian law, the 
     President may direct a drawdown pursuant to section 552(c) of 
     the Foreign Assistance Act of 1961, as amended, of up to 
     $25,000,000 of commodities and services for the United 
     Nations War Crimes Tribunal established with regard to the 
     former Yugoslavia by the United Nations Security Council or 
     such other tribunals or commissions as the Council may 
     establish to deal with such violations, without regard to the 
     ceiling limitation contained in paragraph (2) thereof: 
     Provided, That the determination required under this section 
     shall be in lieu of any determinations otherwise required 
     under section 552(c): Provided further, That 60 days after 
     the date of enactment of this Act, and every 180 days 
     thereafter, the Secretary of State shall submit a report to 
     the Committees on Appropriations describing the steps the 
     United States Government is taking to collect information 
     regarding allegations of genocide or other violations of 
     international law in the former Yugoslavia and to furnish 
     that information to the United Nations War Crimes Tribunal 
     for the former Yugoslavia.


                               landmines

       Sec. 556. Notwithstanding any other provision of law, 
     demining equipment available to the Agency for International 
     Development and the Department of State and used in support 
     of the clearing of landmines and unexploded ordnance for 
     humanitarian purposes may be disposed of on a grant basis in 
     foreign countries, subject to such terms and conditions as 
     the President may prescribe.


           restrictions concerning the palestinian authority

       Sec. 557. None of the funds appropriated by this Act may be 
     obligated or expended to create in any part of Jerusalem a 
     new office of any department or agency of the United States 
     Government for the purpose of conducting official United 
     States Government business with the Palestinian Authority 
     over Gaza and Jericho or any successor Palestinian governing 
     entity provided for in the Israel-PLO Declaration of 
     Principles: Provided, That this restriction shall not apply 
     to the acquisition of additional space for the existing 
     Consulate General in Jerusalem: Provided further, That 
     meetings between officers and employees of the United States 
     and officials of the Palestinian Authority, or any successor 
     Palestinian governing entity provided for in the Israel-PLO 
     Declaration of Principles, for the purpose of conducting 
     official United States Government business with such 
     authority should continue to take place in locations other 
     than Jerusalem. As has been true in the past, officers and 
     employees of the United States Government may continue to 
     meet in Jerusalem on other subjects with Palestinians 
     (including those who now occupy positions in the Palestinian 
     Authority), have social contacts, and have incidental 
     discussions.


               prohibition of payment of certain expenses

       Sec. 558. None of the funds appropriated or otherwise made 
     available by this Act under the heading ``international 
     military education and training'' or ``foreign military 
     financing program'' for Informational Program activities may 
     be obligated or expended to pay for--
       (1) alcoholic beverages;
       (2) food (other than food provided at a military 
     installation) not provided in conjunction with Informational 
     Program trips where students do not stay at a military 
     installation; or
       (3) entertainment expenses for activities that are 
     substantially of a recreational character, including entrance 
     fees at sporting events and amusement parks.


                     equitable allocation of funds

       Sec. 559. Not more than 18 percent of the funds 
     appropriated by this Act to carry out the provisions of 
     sections 103 through 106 and chapter 4 of part II of the 
     Foreign Assistance Act of 1961, that are made available for 
     Latin America and the Caribbean region may be made available, 
     through bilateral and Latin America and the Caribbean 
     regional programs, to provide assistance for any country in 
     such region.


            purchase of american-made equipment and products

       Sec. 560. (a) Sense of Congress.--It is 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.
       (b) Notice Requirement.--In providing financial assistance 
     to, or entering into any contract with, any entity using 
     funds made available in this Act, the head of each Federal 
     agency, to the greatest extent practicable, shall provide to 
     such entity a notice describing the statement made in 
     subsection (a) by the Congress.


        limitation of funds for north american development bank

       Sec. 561. None of the Funds appropriated in this Act under 
     the heading ``North American Development Bank'' and made 
     available for the Community Adjustment and Investment Program 
     shall be used for purposes other than those set out in the 
     binational agreement establishing the Bank.


                 international development association

       Sec. 562. In order to pay for the United States 
     contribution to the eleventh replenishment of the resources 
     of the International Development Association, there are 
     authorized to be appropriated, without fiscal year 
     limitation, $606,000,000 for payment by the Secretary of the 
     Treasury.


                  special debt relief for the poorest

       Sec. 563. (a) Authority To Reduce Debt.--The President may 
     reduce amounts owed to the United States (or any agency of 
     the United States) by an eligible country as a result of--
       (1) guarantees issued under sections 221 and 222 of the 
     Foreign Assistance Act of 1961; or
       (2) credits extended or guarantees issued under the Arms 
     Export Control Act.
       (b) Limitations.--
       (1) The authority provided by subsection (a) may be 
     exercised only to implement multilateral official debt relief 
     and referendum agreements, commonly referred to as ``Paris 
     Club Agreed Minutes''.
       (2) The authority provided by subsection (a) may be 
     exercised only in such amounts or to such extent as is 
     provided in advance by appropriations Acts.
       (3) The authority provided by subsection (a) may be 
     exercised only with respect to 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, commonly referred to as 
     ``IDA-only'' countries.
       (c) Conditions.--The authority provided by subsection (a) 
     may be exercised only with respect to a country whose 
     government--
       (1) does not have an excessive level of military 
     expenditures;
       (2) has not repeatedly provided support for acts of 
     international terrorism;
       (3) is not failing to cooperate on international narcotics 
     control matters;
       (4) (including its military or other security forces) does 
     not engage in a consistent pattern of gross violations of 
     internationally recognized human rights; and
       (5) is not ineligible for assistance because of the 
     application of section 527 of the Foreign Relations 
     Authorization Act, fiscal years 1994 and 1995.
       (d) Availability of Funds.--The authority provided by 
     subsection (a) may be used only with regard to funds 
     appropriated by this Act under the heading ``Debt 
     restructuring''.
       (e) Certain Prohibitions Inapplicable.--A reduction of debt 
     pursuant to subsection (a) shall not be considered assistance 
     for purposes of any provision of law limiting assistance to a 
     country. The authority provided by subsection (a) may be 
     exercised notwithstanding section 620(r) of the Foreign 
     Assistance Act of 1961.


             authority to engage in debt buybacks or sales

       Sec. 564. (a) Loans Eligible for Sale, Reduction, or 
     Cancellation.--
       (1) Authority to sell, reduce, or cancel certain loans.--
     Notwithstanding any other provision of law, the President 
     may, in accordance with this section, sell to any eligible 
     purchaser any concessional loan or portion thereof made 
     before January 1, 1995, pursuant to the Foreign Assistance 
     Act of 1961, to the government of any eligible country as 
     defined in section 702(6) of that Act or on receipt of 
     payment from an eligible purchaser, reduce or cancel such 
     loan or portion thereof, only for the purpose of 
     facilitating--
       (A) debt-for-equity swaps, debt-for-development swaps, or 
     debt-for-nature swaps; or
       (B) a debt buyback by an eligible country of its own 
     qualified debt, only if the eligible country uses an 
     additional amount of the local currency of the eligible 
     country, equal to not less than 40 percent of the price paid 
     for such debt by such eligible country, or the difference 
     between the price paid for such debt and the face value of 
     such debt, to support activities that link conservation and 
     sustainable use of natural resources with local community 
     development, and child survival and other child development, 
     in a manner consistent with sections 707 through 710 of the 
     Foreign Assistance Act of 1961, if the

[[Page H6389]]

     sale, reduction, or cancellation would not contravene any 
     term or condition of any prior agreement relating to such 
     loan.
       (2) Terms and conditions.--Notwithstanding any other 
     provision of law, the President shall, in accordance with 
     this section, establish the terms and conditions under which 
     loans may be sold, reduced, or canceled pursuant to this 
     section.
       (3) Administration.--The Facility, as defined in section 
     702(8) of the Foreign Assistance Act of 1961, shall notify 
     the administrator of the agency primarily responsible for 
     administering part I of the Foreign Assistance Act of 1961 of 
     purchasers that the President has determined to be eligible, 
     and shall direct such agency to carry out the sale, 
     reduction, or cancellation of a loan pursuant to this 
     section. Such agency shall make an adjustment in its accounts 
     to reflect the sale, reduction, or cancellation.
       (4) Limitation.--The authorities of this subsection shall 
     be available only to the extent that appropriations for the 
     cost of the modification, as defined in section 502 of the 
     Congressional Budget Act of 1974, are made in advance.
       (b) Deposit of Proceeds.--The proceeds from the sale, 
     reduction, or cancellation of any loan sold, reduced, or 
     canceled pursuant to this section shall be deposited in the 
     United States Government account or accounts established for 
     the repayment of such loan.
       (c) Eligible Purchasers.--A loan may be sold pursuant to 
     subsection (a)(1)(A) only to a purchaser who presents plans 
     satisfactory to the President for using the loan for the 
     purpose of engaging in debt-for-equity swaps, debt-for-
     development swaps, or debt-for-nature swaps.
       (d) Debtor Consultations.--Before the sale to any eligible 
     purchaser, or any reduction or cancellation pursuant to this 
     section, of any loan made to an eligible country, the 
     President should consult with the country concerning the 
     amount of loans to be sold, reduced, or canceled and their 
     uses for debt-for-equity swaps, debt-for-development swaps, 
     or debt-for-nature swaps.
       (e) Availability of Funds.--The authority provided by 
     subsection (a) may be used only with regard to funds 
     appropriated by this Act under the heading ``Debt 
     restructuring''.


                               guatemala

       Sec. 565. (a) Funds provided in this Act may be made 
     available for the Guatemalan military forces, and the 
     restriction on Guatemala under the heading ``Foreign Military 
     Financing Program'' shall not apply, only if the President 
     determines and certifies to the Congress that the Guatemalan 
     military is cooperating fully with efforts to resolve human 
     rights abuses which elements of the Guatemalan military 
     forces are alleged to have committed, ordered or attempted to 
     thwart the investigation of, and to implement the peace 
     settlement.
       (b) The prohibition contained in subsection (a) shall not 
     apply to funds made available to implement a ceasefire or 
     peace agreement.
       (c) Any funds made available pursuant to subsections (a) or 
     (b) shall be subject to the regular notification procedures 
     of the Committees on Appropriations.


          sanctions against countries harboring war criminals

       Sec. 566. (a) Bilateral Assistance.--The President is 
     authorized to withhold funds appropriated by this Act under 
     the Foreign Assistance Act of 1961 or the Arms Export Control 
     Act for any country described in subsection (c).
       (b) Multilateral Assistance.--The Secretary of the Treasury 
     should instruct the United States executive directors of the 
     international financial institutions to work in opposition 
     to, and vote against, any extension by such institutions of 
     financing or financial or technical assistance to any country 
     described in subsection (c).
       (c) Sanctioned Countries.--A country described in this 
     subsection is a country the government of which knowingly 
     grants sanctuary to persons in its territory for the purpose 
     of evading prosecution, where such persons--
       (1) have been indicted by the International Criminal 
     Tribunal for the former Yugoslavia, the International 
     Criminal Tribunal for Rwanda, or any other international 
     tribunal with similar standing under international law, or
       (2) have been indicted for war crimes or crimes against 
     humanity committed during the period beginning March 23, 1933 
     and ending on May 8, 1945 under the direction of, or in 
     association with--
       (A) the Nazi government of Germany;
       (B) any government in any area occupied by the military 
     forces of the Nazi government of Germany;
       (C) any government which was established with the 
     assistance or cooperation of the Nazi government; or
       (D) any government which was an ally of the Nazi government 
     of Germany.


                   limitation on assistance for haiti

       Sec. 567. (a) Limitation.--None of the funds appropriated 
     or otherwise made available by this Act, may be provided to 
     the Government of Haiti until the President reports to 
     Congress that--
       (1) the Government is conducting thorough investigations of 
     extrajudicial and political killings that have taken place in 
     Haiti since February 12, 1996; and
       (2) the Government has completed privatization of (or 
     placed under long-term private management contract) at least 
     three major public enterprises.
       (b) Nothing in this section shall be construed to restrict 
     the provision of humanitarian, law enforcement, 
     antinarcotics, or electoral assistance.
       (c) The President may waive the requirements of this 
     section on a semiannual basis if he determines and certifies 
     to the appropriate committees of Congress that it is in the 
     national interest of the United States.


  requirement for disclosure of foreign aid in report of secretary of 
                                 state

       Sec. 568. (a) Foreign Aid Reporting Requirement.--In 
     addition to the voting practices of a foreign country, the 
     report required to be submitted to Congress under section 
     406(a) of the Foreign Relations Authorization Act, fiscal 
     years 1990 and 1991 (22 U.S.C. 2414a), shall include a side-
     by-side comparison of individual countries' overall support 
     for the United States at the United Nations and the amount of 
     United States assistance provided to such country in fiscal 
     year 1997.
       (b) United States Assistance.--For purposes of this 
     section, the term ``United States assistance'' has the 
     meaning given the term in section 481(e)(4) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2291(e)(4)).


   restrictions on voluntary contributions to united nations agencies

       Sec. 569. (a) Prohibition on Voluntary Contributions for 
     the United Nations.--None of the funds appropriated or 
     otherwise made available by this Act may be made available to 
     pay any voluntary contribution of the United States to the 
     United Nations (including the United Nations Development 
     Program) if the United Nations implements or imposes any 
     taxation on any United States persons.
       (b) Certification Required for Disbursement of Funds.--None 
     of the funds appropriated or otherwise made available under 
     this Act may be made available to pay any voluntary 
     contribution of the United States to the United Nations 
     (including the United Nations Development Program) unless the 
     President certifies to the Congress 15 days in advance of 
     such payment that the United Nations is not engaged in any 
     effort to implement or impose any taxation on United States 
     persons in order to raise revenue for the United Nations or 
     any of its specialized agencies.
       (c) Definitions.--As used in this section the term ``United 
     States person'' refers to--
       (1) a natural person who is a citizen or national of the 
     United States; or
       (2) a corporation, partnership, or other legal entity 
     organized under the United States or any State, territory, 
     possession, or district of the United States.


                              north korea

       Sec. 570. Ninety days after the date of enactment of this 
     Act, and every 180 days thereafter, the Secretary of State, 
     in consultation with the Secretary of Defense, shall provide 
     a report in a classified or unclassified form to the 
     Committee on Appropriations including the following 
     information:
       (a) a best estimate on fuel used by the military forces of 
     the Democratic People's Republic of Korea (DPRK);
       (b) the deployment position and military training and 
     activities of the DPRK forces and best estimate of the 
     associated costs of these activities;
       (c) steps taken to reduce the DPRK level of forces; and
       (d) cooperation, training, or exchanges of information, 
     technology or personnel between the DPRK and any other nation 
     supporting the development or deployment of a ballistic 
     missile capability.

  The CHAIRMAN. Are there amendments to this portion of the bill?


                Amendment No. 53 Offered by Mr. Bereuter

  Mr. BEREUTER. Mr. Chairman, I offer an amendment.
  The Clerk read as follows:

       Amendment No. 53 offered by Mr. Bereuter:
       At the end of the bill, insert after the last section--
     preceding the short title--the following new section:
       Sec.  . (a). None of the funds appropriated in this Act may 
     be made available directly to the Government of Cambodia.

  Mr. BEREUTER. Mr. Chairman, this Member rises today as the chairman 
of the Subcommittee on Asia and the Pacific to offer an amendment to 
this legislation concerning provision of United States assistance to 
the Government of Cambodia. This Member's amendment would terminate 
United States foreign assistance to the Government of Cambodia, but is 
designed to allow continued humanitarian assistance to flow to 
humanitarian nongovernmental organizations and pro-democracy funds to 
flow through the National Endowment for Democracy. It would, however, 
prevent development assistance from going to the tyrants who have 
seized power in Phnom Penh.
  Mr. Chairman, the 4-year-old experiment with democracy in Cambodia is 
in dire straits, and a tyrant has seized power through the force of 
arms, intimidation, terror, and summary executions. Few people have 
experienced as much pain, suffering, and terror as the people of 
Cambodia have over the

[[Page H6390]]

last 30 years. Ravaged by the war in Indochina, bled white by the 
genocidal regime of Pol Pot and the Khmer Rouge, and subjugated by a 
Communist government fronted by the leader of the coup d'etat, Hen Sen, 
a former member of the Khmer Rouge himself, Cambodia and the United 
States find themselves on all too familiar ground.

                              {time}  2145

  After nearly $3 billion in aid and assistance in the first democratic 
elections in the history of this country, Cambodians are again facing 
the domination of a ruthless tyrant who murders his opponents, 
terrorizes the population, and profits from narco-trafficking and 
corruption. Yet, Hun Sen claims that he respects the rule of law and 
the wishes of the people, who roundly rejected him and his party at the 
polls, and tells the international community that supplies over 40 
percent of the Cambodian budget to mind its own business and to stay 
out of Cambodian affairs.
  Mr. Chairman, the United States continually urges other nations to 
respect the rule of law, but in the case of Cambodia the Clinton 
administration is demonstrating that it will ignore a law that is 
inconvenient. Section 508 of the Foreign Operations Export Financing 
and Related Programs Appropriations Act of 1997 terminates U.S. 
assistance to any country whose duly-elected head of government is 
deposed by a military coup until such time that the President 
determines that a democratically-elected government has taken office.
  The Clinton administration has refused to observe this law regarding 
Cambodia, claiming that what has happened earlier this month was not 
really a coup. This Member regrets to say that our articulate, plain-
speaking Secretary of State does not at this point seem to have the 
word ``coup'' in her vocabulary when it comes to Cambodia.
  At a hearing of the Subcommittee on Asia and the Pacific 2 weeks ago 
on the Cambodian crisis, the State Department witness stated that if 
the administration actually obeyed the law it would close off too many 
options for U.S. foreign policy. This Member submits that the 
administration does not have the option to ignore the provisions of 
Section 508.
  Mr. Chairman, this amendment seeks to cut off all direct U.S. 
assistance to the Government of Cambodia. The U.S. cannot give any 
support, political, material, or otherwise, to the illegal regime of 
Hun Sen. This Member would also like to commend the efforts of the 
chairman of the Committee on International Relations, the gentleman 
from New York [Mr. Gilman] and the ranking member of that committee, 
the gentleman from Indiana [Mr. Hamilton] for joining this Member in 
leading the effort in the House to address the Cambodian crisis.
  This Member would also like to commend the gentleman from California 
[Mr. Rohrabacher], the gentleman from Iowa [Mr. Leach], and the ranking 
minority member of the Subcomittee on Asia and the Pacific, the 
gentleman from California [Mr. Berman] for their efforts on this issue.
  With their support, this Chamber passed House Resolution 195 on 
Cambodia on Monday, which, among other things, expressed the sense of 
the House that such aid should be cut off to Hun Sen's regime by the 
invocation of Section 508. Therefore, this amendment is appropriate.
  Mr. Chairman, I urge support of this amendment which prohibits aid to 
the Government of Cambodia.
  Mr. GILMAN. Mr. Chairman, will the gentleman yield?
  Mr. BEREUTER. I yield to the gentleman from New York..
  Mr. GILMAN. I thank the gentleman for yielding to me, Mr. Chairman.
  Mr. Chairman, I rise in strong support of this amendment to end aid 
to the Government of Cambodia offered by our distinguished chairman of 
the Subcommittee on Asia and the Pacific, the gentleman from Nebraska 
[Mr. Bereuter].
  This timely amendment rightfully cuts off direct aid to the Cambodian 
Government, which just underwent a violent coup d'tat at the hands of 
the former Khmer Rouge tyrant, Hun Sen. This unconstitutional act by 
Hun Sen and his cronies has resulted in the murder of tens of 
opposition leaders, the arrest of hundreds, and the fleeing of 
thousands, all of this at a time when the future of Cambodia looked 
bright.
  The United States and this body must show the kind of leadership the 
world expects of us, and take decisive actions against this illegal and 
unacceptable forcible removal of the democratically elected Government 
in Cambodia. Cutting off aid to an assistance-hungry government like 
Cambodia is an appropriate response and the amendment of the gentleman 
from Nebraska [Mr. Bereuter] does just that.
  Accordingly, I urge my colleagues to support the amendment of the 
distinguished gentleman from Nebraska.
  Ms. LOFGREN. Mr. Chairman, I move to strike the last word.
  Mr. Chairman, I share the concern that has just been expressed by the 
chairman of the subcommittee and the chairman of the full committee 
about the outrages that are currently going on in Cambodia. Just this 
week, we read in the Washington Post accounts of what has gone on. 
These were confirmed by numerous reports of torture, Hun Sen's forces 
capturing individuals, gouging out the eyes of people who they were 
interrogating, and then killing them; cases of bodies found with hands 
tied behind their backs, bullets in the head, fingernails pulled out, 
tongues yanked from mouths with pliers before the murder was done.
  This is the kind of outrage that occurred during the regime of Pol 
Pot. I hope that our country can act with a great deal of strength this 
time to prevent the Holocaust from growing.
  Mr. Chairman, I feel a personal stake in this in a sense because of 
the number of individuals I have met in this country, Cambodian 
Government officials, who have since been murdered. I think of those 
young individuals who were democrats with a small d, and they have now 
given their lives for democracy. We need to stand up for them.
  I appreciate the amendment being offered by the chairman of the 
subcommittee. However, I am mindful, I do not know if the gentleman 
from California [Mr. Rohrabacher] intends to offer his amendment.
  Mr. ROHRABACHER. Mr. Chairman, will the gentlewoman yield?
  Ms. LOFGREN. I yield to the gentleman from California.
  Mr. ROHRABACHER. Mr. Chairman, I do plan to offer my amendment when 
given the opportunity. It is very similar to that of the gentleman from 
Nebraska [Mr. Bereuter], but it goes a little further. I am supporting 
the amendment offered by the gentleman from Nebraska, but I will be 
offering mine as well.
  Ms. LOFGREN. Reclaiming my time, Mr. Chairman, I understand what the 
gentleman is doing, but in this case I think that the amendment offered 
by the gentleman from California [Mr. Rohrabacher] to the amendment 
which takes this step a little farther really merits our attention.
  Mr. BEREUTER. Mr. Chairman, will the gentlewoman yield?
  Ms. LOFGREN. I yield to the gentleman from Nebraska.
  Mr. BEREUTER. Mr. Chairman, I like the intent of what the gentleman 
is attempting to do, but I would like to tell the gentlewoman that we 
cannot cut off aid through the multilateral development organizations. 
All we can do is direct our executive director to those multilateral 
development organizations what he or she should do in attempting to 
cause those organizations to stop aiding Cambodia.
  I do not, therefore, think that the gentleman's amendment is 
implementable when it comes to the multilateral development banks. That 
is why I believe, while well-intended, what he attempts to do, at least 
with the MDBs, is not possible. I thank the gentlewoman for yielding.
  Ms. LOFGREN. Certainly. Mr. Chairman, I will let the gentleman defend 
his own amendment, rather than doing it for him. But I would just say 
that opinions differ.
  I really feel in this case, given the dependency that Cambodia has on 
the international community, including the United States, for their 
very survival, that the opportunity to greatly influence events there 
is present, and it may not always be present.
  I would like to further state that as we move forward in this effort, 
we must make sure that our partners, our international partners 
throughout the world who have also provided aid, stand with us in 
isolating this lawless government from funds.

[[Page H6391]]

  I would further say, as we move forward hoping for elections that I 
would strongly urge must be supervised once again by the United Nations 
or the international community, we must gain a guarantee that the 
winner of the election actually gets to take power this time. I think 
it was a very serious mistake that we failed to do that last time that 
has helped create this problem.
  Mr. Chairman, with that, I do not know if the gentleman from 
California [Mr. Rohrabacher] would like to defend his amendment for the 
comments made that this is beyond our jurisdiction.
  Mr. CALLAHAN. Mr. Chairman, I move to strike the requisite number of 
words.
  Mr. Chairman, the pending amendment would cut off funds for Cambodia. 
Normally I would oppose such an amendment as an infringement upon the 
President's prerogatives to conduct foreign policy. However, in 
Cambodia, we have in effect a military coup.
  Section 508 of our bill is a longstanding provision that prohibits 
assistance to a country if a duly-elected head of government is deposed 
by a military coup or decree. Normally this would be automatically 
invoked for a situation like Cambodia. However, in Cambodia, we have 
had one Prime Minister deposing another Prime Minister. Although 
technically this is not a coup, it has had the same effect.
  The United States has a sizable assistance program to Cambodia. I 
would not support any assistance to the government of a country whose 
new leader has had at least 40 of his political opponents executed. 
Clearly, despite our best efforts and those of the international 
community, democracy does not exist in Cambodia. So I support the 
gentleman's amendment and ask that it be adopted.
  Ms. PELOSI. Mr. Chairman, I move to strike the requisite number of 
words.
  Mr. Chairman, I rise in support of the gentleman's amendment. I will 
not take the full 5 minutes. Mr. Chairman, for the information of our 
colleagues who may have just tuned in, the United States has cut off 
all assistance for Cambodia for 30 days following the July 5 incident 
in Cambodia. All assistance programs that have any connection to the 
government of Cambodia have been suspended.
  Decisions on resumption or reconfiguring of aid are yet to be made, 
and depend on many factors. Indeed, as reports of atrocities continue 
to come in, it becomes more difficult to resume support for the current 
government for reasons that have been mentioned.
  I particularly want to commend my colleague, the gentlewoman from 
California [Ms. Lofgren], for her interest and leadership on this 
issue. She and I are both blessed with a Cambodian-American population, 
are familiar with the situation in Cambodia, and there is a great deal 
of interest there. I am so pleased she was here to add her support to 
the amendment offered by the gentleman from Nebraska [Mr. Bereuter].
  It is indeed tragic that the enormous international effort to lift 
Cambodia from its misery has apparently been usurped, and I therefore 
recommend that we accept the amendment offered by the gentleman from 
Nebraska [Mr. Bereuter].
  However, I do think we should continue to assess the situation, 
because the gentleman's amendment specifically prohibits assistance to 
the Government of Cambodia. I assume that other forms of assistance 
through nongovernmental organizations engaged in humanitarian or 
democracy-building programs would not be prohibited.
  The Cambodian people have endured years of suffering under a 
repressive regime, and they voted in 1993 to bring non-Communist 
parties to power. As our colleague pointed out, we did not have a clear 
winner, maybe that was part of the problem, a clear resolution of the 
election.
  We should continue to assess the situation as we move forward on the 
bill. I, too, will be supporting the Rohrabacher amendment but urge my 
colleagues now to support the Bereuter amendment.
  Mr. ROHRABACHER. Mr. Chairman, I move to strike the requisite number 
of words.
  Mr. Chairman, I do have an amendment that I will be offering after we 
hopefully get done with the amendment offered by the gentleman from 
Nebraska [Mr. Bereuter]. I certainly appreciate the sincerity of the 
attempt of the gentleman from Nebraska. I sometimes am known as 
somebody who tries to push things a little bit further, and I think 
that my amendment, while better, while pushing things a little bit 
further, should be adopted, but that does not mean that I am opposing 
the amendment offered by the gentleman from Nebraska [Mr. Bereuter].
  I, in fact, support the amendment, but I would say it needs to be 
strengthened, because in the gentleman's amendment we have a situation 
where the amendment states that funds, it says, ``None of the funds 
appropriated in this act shall be made available directly to the 
Government of Cambodia.''
  That use of the word ``directly'' weakens the bill considerably as 
compared to what I would do. When we are sending a message to the 
Government of Cambodia, we want to make sure they know that even if 
they are trying to get money through the back door, we are not 
supportive of money going through the back door to this murderous 
regime.
  Also it has been argued by the gentleman from Nebraska [Mr. Bereuter] 
that my bill would affect the money or would not affect the money, 
although we are attempting to, that will be going to Cambodia through 
the International Development Association and the IMF and the Asian 
Development Bank, and other lending and financial institutions that are 
supported by American taxpayers.
  We may not be able to mandate that money, but we are making our case 
as the elected representatives of the United States Government to those 
agencies through this legislation. We are making a statement to those 
individuals who are making those decisions in these financial 
institutions that they should not be using that money to provide loans 
or guarantees for loans to this murderous regime in Cambodia.
  So I would ask my fellow colleagues to support the Bereuter 
amendment, but I would also ask them to support my amendment, which 
makes that statement, we do not want people investing in Cambodia until 
democracy is restored. We certainly do not want to guarantee the loans 
of American businesses doing that.
  Ms. LOFGREN. Mr. Chairman, will the gentleman yield?
  Mr. ROHRABACHER. I yield to the gentlewoman from California.

                              {time}  2200

  Ms. LOFGREN. Mr. Chairman, I wanted to ask a clarification question. 
It is my understanding that the gentleman's amendment would, while 
doing all that he says, still permit the standard humanitarian aid; is 
that correct?
  Mr. ROHRABACHER. Mr. Chairman, that is correct. My amendment does not 
prevent us from giving money to the nongovernmental organizations and 
to other humanitarian efforts. It just prevents us from giving any 
money to the government directly or indirectly. While, as I say, the 
Bereuter amendment does make a statement in a positive direction, I 
think we should go a lot further.
  The fact is the Government of Cambodia now is controlled by a 
murderous man named Hun Sen who is in alliance with drug lords, a man 
who has got blood all the way up to his elbows, who was a Khmer Rouge 
trigger man, who overthrew an elected government that we struggled so 
long and hard to put in place back in 1993.
  Many Members of this body have visited Cambodia and supported the 
United Nations operation back in 1993 and now we have this dictator, 
this gangster trying to undo what was done. We need to send a strong 
message immediately. This is the vehicle to do so. The Bereuter 
amendment sends a message. It is a positive message. It is a message we 
need to send. I think it needs to be a little stronger, so I support 
the Bereuter amendment but will also be offering by own amendment 
shortly.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Nebraska [Mr. Bereuter].
  The question was taken; and the Chairman announced that the noes 
appeared to have it.
  Mr. BEREUTER. Mr. Chairman, I demand a recorded vote.
  The CHAIRMAN. Pursuant to the order of the House of Thursday, July

[[Page H6392]]

24, 1997, further proceedings on the amendment offered by the gentleman 
from Nebraska [Mr. Bereuter] will be postponed.


                    Amendment Offered by Mr. Saxton

  Mr. SAXTON. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 4 printed in House Report 105-184 offered by 
     Mr. Saxton: 
       At the end of the bill, insert after the last section 
     (preceding the short title) the following new section:


  limitation on assistance to the p.l.o. and the palestinian authority

       Sec. 572. (a) Sense of the Congress.--It is the sense of 
     the Congress that the Palestine Liberation Organization 
     (hereafter the ``P.L.O.'') should do far more to demonstrate 
     an irrevocable denunciation of terrorism and to ensure a 
     peaceful settlement of the Middle East dispute, and in 
     particular it should--
       (1) submit to the Palestinian Council for formal approval 
     the necessary changes to those specific articles of the 
     Palestinian National Charter which deny Israel's right to 
     exist or support the use of violence;
       (2) to the maximum extent possible, preempt acts of terror, 
     discipline violators, publicly condemn all terrorist acts, 
     actively work to dismantle other terrorist organizations, and 
     contribute to stemming the violence that has resulted in the 
     deaths of over 230 Israeli and United States citizens since 
     the signing of the Declaration of Principles on Interim Self-
     Government Arrangements (hereafter the ``Declaration of 
     Principles'') on September 13, 1993, at the White House;
       (3) prohibit participation in the P.L.O. or the Palestinian 
     Authority or its successors of any groups or individuals 
     which promote or commit acts of terrorism;
       (4) cease all anti-Israel rhetoric, which potentially 
     undermines the peace process;
       (5) confiscate all unlicensed weapons and restrict the 
     issuance of licenses to those with legitimate need;
       (6) transfer and cooperate in transfer proceedings relating 
     to any person accused by Israel or the United States of 
     having committed acts of terrorism against Israeli or United 
     States nationals; and
       (7) respect civil liberties, human rights and democratic 
     norms as applied equally to all persons regardless of ethnic, 
     religious, or national origin.
       (b) Limitation on Assistance.--
       (1) In general.--Notwithstanding any other provision of 
     law, funds appropriated or otherwise made available by this 
     Act may be obligated for assistance to the P.L.O. or the 
     Palestinian Authority only for the period beginning 3 months 
     after the date of the enactment of this Act and for 6 months 
     thereafter, and only if--
       (A) the President has exercised the authority under section 
     604(a) of the Middle East Peace Facilitation Act of 1995 
     (title VI of Public Law 104-107) or any other legislation to 
     suspend or make inapplicable section 307 of the Foreign 
     Assistance Act of 1961 and that suspension is still in 
     effect; and
       (B) in addition to the requirements contained in such Act 
     or other legislation, the President prepares and transmits to 
     the Congress a report described in paragraph (2).
       (2) Report.--A report described in this paragraph is a 
     report containing the following:
       (A) A description of all efforts being made to apprehend, 
     prosecute, or have extradited to the United States Mohammad 
     Deif (allegedly responsible for the death of Nachshon 
     Wachsman, a United States citizen), Amjad Hinawi (allegedly 
     responsible for the death of David Boim, a United States 
     citizen), Abu Abbas (responsible for the death of Leon 
     Klinghoffer, a United States citizen), Amid al-Iindi 
     (allegedly responsible for death of David Berger, a United 
     States citizen), and Nafez Mahmoud Sabih (who helped plan the 
     February 1996 attack on a Jerusalem bus in which Jewish 
     Theological Seminary students Sara Duker and Matthew 
     Eisenfeld, both United States citizens, were murdered).
       (B) An official, updated, and revised copy of the 
     Palestinian National Charter (Covenant) showing which 
     specific articles have been rescinded by the decision taken 
     on April 24, 1996 by the P.L.O. Executive Committee.
       (C) A description of all actions being taken by the 
     Palestinian Authority to eradicate and prevent the use of the 
     map of Israel to represent ``Palestine''.
       (D) A certification that the Palestinian Authority has 
     established a court system that respects due process 
     requirements, including the right to a lawyer, the right to 
     confront witnesses, the right to be informed of the charges 
     under which one is accused, and the right to a jury trial.
       (E) A certification that the Palestinian Authority has 
     established humane prison conditions.
       (F) A certification that the Palestinian Authority has 
     taken all measures to rescind the death penalty imposed for 
     the sale of land to Jews, has eliminated the practice of 
     incarcerating real estate agents for the sale of land to Jews 
     or Israelis, and has actively sought the perpetrators of such 
     actions.

  The CHAIRMAN. Pursuant to the order of House of Thursday, July 24, 
1997, the gentleman from New Jersey [Mr. Saxton] and a Member opposed, 
the gentleman from Alabama [Mr. Callahan], each will control 5 minutes.
  Mr. CALLAHAN. Mr. Chairman, I ask unanimous consent that 3\1/2\ 
minutes of my time be yielded to the gentlewoman from California [Ms. 
Pelosi] and that she been allowed to further yield time.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Alabama?
  There was no objection.
  The CHAIRMAN. The Chair recognizes the gentleman from New Jersey [Mr. 
Saxton].
  Mr. SAXTON. Mr. Chairman, I yield such time as he may consume to the 
gentleman from New York [Mr. Gilman], chairman of the authorization 
committee.
  (Mr. Gilman asked and was given permission to revise and extend his 
remarks.)
  Mr. GILMAN. Mr. Chairman, I rise in support of the Saxton amendment 
and wish to thank the gentleman from New Jersey for his steadfast 
support and commitment for true peace in the Middle East.
  Mr. Chairman, I rise in support of the Saxton amendment, and wish to 
thank the gentleman from New Jersey for his steadfast support and 
commitment for true peace in the Middle East.
  Mr. Saxton's amendment comes on a tragic, but ironically, auspicious 
day, when as we have seen, the lack of PLO security cooperation with 
Israel has cost the lives and limbs of many innocent Israelis.
  The amendment expresses the sense of the Congress that the PLO/PA 
would have to take action on the covenant, truly fight against 
terrorism, truly confiscate weapons, and follow through on commitments 
to transfer prisoners to Israel, according to the Oslo Accords.
  The sense of the Congress language also insists that Arafat and the 
PA cease incitement toward violence, and improve the abysmal human 
rights situation in the areas under Palestinian control.
  According to Mr. Saxton's amendment, assistance would be available 
only for the period beginning 3 months after enactment and for 6 months 
thereafter only if the President certifies the PLO on critical issues 
of concern to all Americans.
  Once the certification is made, Congress would have to approve the 
report by joint resolution. The report must describe all efforts taken 
by the Palestinian Authority to arrest, prosecute or extradite 
Palestinian killers of American citizens; specify which articles of the 
covenant have indeed been rescinded; and describe all actions taken by 
PLO/PA to eradicate and cease usage of a map of all Israel (from 1948 
to the present) shown as the State of Palestine. The report must also 
certify that a Palestinian court system respectful of human rights has 
been established and due process upheld, that humane prison conditions 
exist, and that the PA has taken all measures to rescind the death 
penalty for land sales to Jews or Israelis.
  Mr. Chairman, earlier today I noted during consideration of House 
Concurrent Resolution 133 that the explosions in Jerusalem today are 
the culmination of a lack of Palestinian security cooperation that goes 
back a long way. Mr. Saxton's amendment is the correct response at this 
time .
  Accordingly, I urge support for the Saxton amendment.
  Mr. SAXTON. Mr. Chairman, I yield myself such time as I may consume.
  This is an amendment which suspends aid, direct aid to the 
Palestinian Authority. It has been drafted with cooperation of the 
gentleman from New York [Mr. Gilman], the gentleman from New York [Mr. 
Engel], the gentleman from Pennsylvania [Mr. Fox], the gentleman from 
New York [Mr. Nadler], and the gentleman from New York [Mr. Forbes], 
which obviously makes it a bipartisan amendment.
  At the conclusion of the 90-day suspension period, if certain 
conditions are met and attested to by the United States administration, 
then aid could resume. I believe this is an absolutely necessary 
amendment given the events of the past six months or so. I know there 
are others who wish to speak on this.
  Mr. Chairman, I reserve the balance of my time.
  Ms. PELOSI. Mr. Chairman, I yield such time as he may consume to the 
gentleman from Michigan [Mr. Dingell].
  (Mr. DINGELL asked and was given permission to revise and extend his 
remarks.)
  Mr. DINGELL. Mr. Chairman, I rise in opposition to the amendment.
  Mr. Chairman, I rise to speak for peace in the Middle East. Lasting 
viable peace, with

[[Page H6393]]

justice for all the people in the area, Jew, Arab, Christian, or of 
whatever race or religion.
  Mr. Chairman, I oppose the amendment offered by the gentleman from 
New Jersey [Mr. Saxton], because I do not believe it serves the 
interests of the Israelis, the Palestinians, or the United States.
  Since 1993, our Government has tried mightily to achieve a lasting 
peace which will allow Israelis, Palestinians, and all Arabs to live 
with greater security and dignity. In almost 4 years, the Middle East 
peace process has had many positive developments. Unfortunately, most 
of the progress has slowed in the past 18 months, the result of 
provocations, charges and countercharges issued on both sides of the 
negotiating table. The situation has degenerated so much that not only 
has the Oslo schedule fallen behind; discussions have virtually 
stopped, and the United States is being thwarted in its effort to serve 
as mediator in concert with European and Middle Eastern allies.
  The Saxon amendment implicitly lays blame for the recent difficulties 
squarely upon the Palestinians. Does the Palestinian Authority have 
some serious problems with civil administration, human rights, and 
controlling extremism? It certainly does. However, these problems are 
not unique to Mr. Arafat's government, and American policy has been 
predicated on the assumption that tightly controlled foreign assistance 
should be a tool that helps solve these problems while promoting a 
final accord with the Israelis.
  The administration strongly opposes this amendment. In addition to 
finding it counterproductive to achieving peace, the State Department 
has concluded that it would go well beyond reasonable limits in 
imposing new restrictions on Palestinian assistance without meeting the 
minimal criteria of reason and fair play.
  Over the past 10 days, there has been a quiet resumption of talks 
aimed at jumpstarting the peace process. The amendment offered by the 
gentleman from New Jersey would place these efforts in jeopardy, as 
well as risk another flareup of passions and violence in Israeli and 
Palestinian neighborhoods.
  There are several problems with the amendment. First, it is not 
balanced. If signed into law, our Government would be unable to provide 
financial assistance to the Palestinian people for 3 months. Worse yet, 
United States aid could resume assistance to the Palestinians only if 
Congress votes to approve a report on the Palestinians which would be 
submitted by the administration. Unlike other limitations on aid this 
body has approved in the past, this amendment allows no Presidential 
waiver, even if the President finds it to be in our national security 
interest.
  No disruption in aid to Israel is contemplated, and there should not 
be a disruption. However, it is not fair or consistent to tie the State 
Department's hands on only one side of a very sensitive negotiation. If 
foreign aid is going to be used as a bargaining chip to achieve our 
goals on foreign policy, human rights, judicial process, or prison 
conditions, we must apply a single fair standard to all. This amendment 
would do just the opposite.
  Mr. Chairman, I also am very concerned about the other standards this 
amendment would apply only to the Palestinian Authority. These 
provisions include:
  A prohibition on any speech which could be somehow deemed anti-Israel 
if it is believed that such speech undermines the peace process. It is 
not clear how a violation would be handled, by whom the violation would 
be judged, or just what constitutes a statement which is anti-Israel. 
What if Palestinians were to say in negotiations that they question 
Israel's right to hold all of Jerusalem? What if a Palestinian were to 
make allegations of unfair treatment under Israeli law? The lack of a 
clear definition is very troublesome. If such a provision was ever 
imposed upon our citizens, it would be swiftly condemned as 
unconstitutional.
  A requirement that our Government to certify the viability and 
fairness of the Palestinian court system. There is no doubt that the 
nascent Palestinian Authority must continue to pursue a more consistent 
application of justice. But in the interest of balance, the 1996 State 
Department Human Rights Report mentions many abuses within the Israeli 
justice system. The Saxton amendment would not seek a review of these 
problems.
  Rather than turn our backs on the Middle East peace process, Congress 
should be providing additional tools to the State Department to provide 
the elusive breakthrough.
  The United States has acted boldly in the pursuit of Middle East 
peace. The Middle East Peace Facilitation Act of 1993, which allows our 
Government to recognize the Palestinians, work with them, and provide 
them the help they need to establish security and work for a peaceful 
existence with Israel, will expire on August 12. Rather than completely 
obstructing our administration at this most crucial stage by punishing 
only the Palestinians, I believe it is in our own best interest to 
extend the Middle East Peace Facilitation Act [MEPFA] for another 180 
days so we do not risk the loss of peace--or worse yet--the resumption 
of war. I am therefore, introducing a bill with the Gentleman from West 
Virginia [Mr. Rahall] to extend MEPFA. I urge my colleagues to 
cosponsor this bill, and if at all possible, for this body to extend 
MEPFA before we leave for the August recess.
  Have no doubt, there are many in Middle East who are paying attention 
to us this evening. Almost two months ago, this House approved a 
resolution, House Concurrent Resolution 60, which reasserted the view 
of this body that Jerusalem should be the exclusive territory of 
Israel. That action was viewed in the Middle East as a preemptive 
strike against the successful completion of final status negotiations 
laid out in the Oslo accords. The result was to spark additional 
violence and bloodshed, placing in further jeopardy even the modest 
level of trust which is necessary for an agreement.
  A vote for this amendment not only will hurt the Palestinians; it 
will send the message that this Government no longer cares whether or 
not a secure peace is achieved. I urge the Palestinian and Israeli 
people to try to show additional restraint, and know that they still 
have many friends in America who care more about peace and security for 
both races.
  Let us not jeopardize the peace, let us not jeopardize the long and 
hard efforts of the United States to bring the parties together in 
negotiations leading to a peaceful resolution of a long and terrible 
struggle which has cost thousands of lives.

  The events of today, the bombing are terrible, they deserve 
condemnation of all right thinking human beings. The events of today 
must not be repeated, but the Saxton amendment rather than reducing the 
incentives for this kind of terrible action, provides more pressure for 
violence and terrorism. It provides the kind of frustration, anger and 
outrage that invites violence and murder.
  Do not remove the tools this nation needs to bring about peaceful 
negotiations, leading to peace in the Middle East which will bless all 
the people there.
  I urge the House to reject the Saxton amendment. Its adoption leads 
us away from peace and hope.
  Ms. PELOSI. Mr. Chairman, I yield 30 seconds to the gentleman from 
New York [Mr. Nadler].
  (Mr. NADLER asked and was given permission to revise and extend his 
remarks.)
  Mr. NADLER. Mr. Chairman, there can be no peace in the Middle East 
unless both sides show through both words and deeds that they are 
sincere in their quest for peace. Israel has shown that sincerity. The 
Palestinian Authority has not. They sentence Palestinians to death for 
doing business with Jews. They turn a blind eye or give a green light 
to acts of terrorism. They think they have a right to play the violence 
card whenever negotiations are not proceeding to their liking. That is 
not the path to peace. It is the path of Munich and Ma'alot. We should 
not stand for it, and I support this amendment.
  Mr. Chairman, I rise in support of the Saxton amendment which will 
cut off direct funds for the Palestinian Authority for 90 days until 
the PA begins meeting its obligations under the Oslo Peace Accords.
  Let there be no question in anyone's mind, the purpose of this 
amendment is to advance the cause of peace. But, there can be no peace 
in the Middle East unless both sides show through both words and deeds 
that they are sincere in this quest for peace.
  Israel has more than shown her sincerity and commitment to peace.
  Unfortunately, the leaders of the Palestinian Authority have yet to 
truly commit to peace. They sentence Palestinians to death for doing 
business with Jews. They turn a blind eye, or even give a green light, 
to acts of vicious terrorism. They think they have a right to play the 
violence card whenever the negotiations aren't proceeding to their 
liking.
  Well that's not the path of peace. It's the path of Munich and 
Ma'alot, and we shouldn't stand for it.
  Just yesterday, the 25th of Tammuz, another bomb went off in 
Jerusalem's Mahaneh Yehuda market, killing 13 innocent civilians and 
wounding 168.
  If the PLO is serious about peace, let them demonstrate their 
sincerity. Peace means cracking down on the murderers in their midst. 
Peace means an end to stirring up hatred against their Jewish neighbors 
with blood libels. Peace means a halt to death sentences against 
Palestinians who do business with Jews.
  Mr. Chairman, I share the heartfelt yearning of the Israeli people 
for a lasting peace in the Middle East. But the Israelis can't make 
peace alone. The PLO must join in, or there will be no peace.

[[Page H6394]]

  We should send Arafat a message. We should vote resoundingly for the 
Saxton amendment.
  Mr. SAXTON. Mr. Chairman, I yield 30 seconds to the gentleman from 
New York [Mr. Engel].
  (Mr. ENGEL asked and was given permission to revise and extend his 
remarks.)
  Mr. ENGEL. Mr. Chairman, I rise in strong support of the amendment. 
Certainly the events of today have shown us that we need to have an 
amendment. What this simply does is it suspends aid to the Palestinian 
Authority for 90 days at which point the President has to certify that 
certain compliance is being met. I think it is fair and it is 
reasonable. If peace is going to exist, both sides have to fulfill 
commitments. Mr. Arafat and the Palestinian Authority cannot turn a 
blind eye to terrorism. They must make sure that terrorism is 
controlled by cooperation with the Israelis. This is a good step in 
that direction.
  Ms. PELOSI. Mr. Chairman, I yield 3 minutes to the distinguished 
gentleman from West Virginia [Mr. Rahall].
  Mr. RAHALL. Mr. Chairman, I thank the distinguished ranking member 
for yielding me the time.
  I do rise in opposition to the pending Saxton amendment. I have no 
illusions as to what the outcome of this vote would be, if such were 
called, especially in the climate that we exist today and after the 
most horrendous and stupid acts of the last 24 hours. But, Mr. 
Chairman, it is important to realize that the Middle East Peace 
Facilitation Act is a tool which the President uses to conduct foreign 
policy. We have one Commander in Chief, one individual in charge of 
this foreign policy.
  In this case it is a means the President uses to stay in touch with 
both chairman Arafat and the Palestinian people so that he can make the 
appropriate timely reports to Congress. The collapse of peace talks 4 
months ago was because of mutual distrust, recriminations, and 
provocations. The Saxton amendment will only add to this distrust, 
recriminations, and provocations.
  It continues to be imperative that the U.S. role is allowed to be 
evenhanded, as an honest broker's role should be. Placing additional 
restrictions only on aid to the Palestinian Authority, only on such 
aid, fails the test of balance and fairness, because we all know that 
as the Secretary of State has said, failure to comply with stipulations 
in the Oslo accords is not confined to just Palestinians.
  Press reports indicate that there is documentation that Israel has 
been found in violation of the Oslo accords as well, a total number of 
34 times. And I have such a list of Israeli violations of the Oslo 
accords as well.
  So there have been violations on both sides.
  It is not necessary for the Congress to point fingers only at one 
side.
  The White House is strongly opposed to this amendment because it goes 
way beyond reasonable limits. It imposes new restrictions on 
Palestinian aid and new requirements on the President. A vote today to 
cut off aid will stamp out what little economic progress the 
Palestinians have achieved for a majority of their impoverished and 
innocent citizens. Even Prime Minister Netanyahu knows this is true. He 
is quoted as saying this, and it is quoted in a letter to Members of 
Congress by Americans for Peace Now, and I quote, it is necessary for 
PLO aid to continue. That is the current Prime Minister Benjamin 
Netanyahu, urging that aid to the Palestinians continue. His 
predecessors, Prime Minister Peres and Prime Minister Rabin both are on 
record as urging continuation of this aid as well.
  While there are certainly practices and acts by the Palestinian 
Authority which are reprehensible and there are serious problems and 
they should cease, this amendment is not the way to go about it nor to 
get such a cessation. We can either bolster our government's efforts to 
achieve a lasting peace in a balanced manner or we can extinguish that 
hope perhaps for all time by adoption of this amendment.
  If we were to extinguish that hope at this most precarious time, then 
only escalating violence, bloodshed and death may rise from the passage 
of the Saxton amendment. Given the remarks of our Secretary of State, 
Madeleine Albright, who I commend for her courageous decisions, not 
only in regard to Lebanon recently but in the region as a whole, it 
should be perfectly clear to Members of this House that passage of the 
Saxton amendment is dangerous and liable to cause further violence in 
both neighborhoods in the Middle East.
  I rise and urge my colleagues to defeat the Saxton amendment.
  Mr. SAXTON. Mr. Chairman, I yield myself such time as I may consume.
  I would like to respond to the gentleman from West Virginia by saying 
that to me at least and I think to most other Members of the House, the 
status quo in Israel and in the Middle East is unacceptable. And 
inasmuch as we have the responsibility to oversee at least the 
expenditure of American taxpayers' dollars, it seems to me that what we 
ought to be doing is to try to find a way to change the dynamic that 
exists currently in the Middle East to make peace a possibility.
  Obviously not only the events of the last 24 hours but the events of 
the last several months have borne out full well that peace is not at 
hand in the Middle East. And to the extent that we can affect that, I 
think we should do that. To me the status quo is not acceptable and I 
believe that this is a step in the right direction.
  I will include for the Record, Mr. Chairman, today's article from the 
Washington Post, Palestinian panel charges widespread corruption by 
Arafat's entire cabinet, as well as an article from the Washington 
Times, Arafat's cabinet should be dissolved, lawmakers from Palestine 
report.
  Up to $340 million, half of the Palestinian Authority budget, is 
estimated to have been misspent or embezzled. Obviously these are very 
serious charges and during this 90-day period these matters can be 
looked into as well.
  The essence of this amendment, Mr. Chairman, is to provide for an 
opportunity for our administration to submit various information to 
this House relative to the Palestinian Council which changes those 
specific articles of the Palestinian national charter which deny 
Israel's right to exist or support violence. We also ask to the maximum 
extent possible to preempt acts of terror, discipline violators, 
publicly condemn acts of terror and dismantle terrorist organizations.
  All of these things were agreed to in the Oslo accords and, of 
course, agreed to on the lawn of the White House between the Israeli 
leader and Yasser Arafat. So to the extent that we can effect change in 
the Middle East, to the extent that we can promote peace by changing 
the dynamic of the situation there, which obviously is unacceptable to 
the great majority of the Members of this House, I believe that we 
should do so. I also believe, Mr. Chairman, that that is a primary 
reason that agreement has been reached on this amendment.
  Mr. Chairman, I include for the Record the articles to which I 
referred:

               [From the Washington Post, July 30, 1997]

  Palestinian Panel Charges Widespread Corruption by Arafat's Entire 
                                Cabinet

                           (By Said Ghazali)

       Ramallah, West Bank.--A Palestinian legislative panel today 
     reported wide-ranging corruption--including diversion of 
     foreign aid donations--in all 18 Palestinian ministries. It 
     urged Palestinian leader Yasser Arafat to fire his entire 
     cabinet and called for three ministers to be put on trial.
       The panel was formed in response to an official 
     comptroller's report that found $326 million of the 
     Palestinian self-rule administration's $800 million annual 
     budget had been squandered through corruption or 
     mismanagement. While the panel has no legal authority, its 
     report puts Arafat on the spot--compelling him either to 
     repudiate his political allies or face rising public anger 
     over financial abuses.
       The Palestinian leader quickly sought to cast the report in 
     a positive light. His spokesman, Marwan Kanafani, praised it 
     and said it provides ``a strong basis'' for cabinet revisions 
     that Arafat was already planning.
       Legislators and some members of Arafat's own 
     administration, however, faulted the panel for failing to 
     investigate whether Arafat played a role in any wrongdoing. 
     ``The mismanagement starts from the top--way up on top,'' 
     declared Husam Khader, a legislator from Nablus.
       The five-member investigating panel was made up of members 
     of Arafat's Fatah party and independent members of the 
     legislative council, which has been locked in a power 
     struggle with Arafat over its role as an elected lawmaking 
     body.
       Although the report does not fault Arafat personally, 
     analysts say it could jeopardize

[[Page H6395]]

     his standing should he fail to act on it. The panel's 
     findings come at a time of increased anger among Palestinians 
     over brazen shows of wealth by government officials, 
     including the purchase of huge villas and numerous expensive 
     cars.
       The report declared that the cabinet had failed to follow 
     up reports of mismanagement, and it urged Arafat to replace 
     it with one ``made up of technocrats and qualified people.'' 
     It also recommended criminal trials for three cabinet 
     ministers, including Nabil Shaath, the chief negotiator in 
     peace talks with Israel, who is accused of charging his home 
     telephone and electric bills to the government.
       Among other allegations in the report are: Information 
     Minister Yasser Abed Rabbo used $7,500 in ministry funds to 
     pay for central heating at his home; Transportation Minister 
     Ali Qawasmeh accepted bribes to license cars that did not 
     meet road standards; Civil Affairs Minister Jamal Tarifi 
     allowed illegal exemptions from customs duties for more than 
     4,300 cars, including a Jaguar for his father; Tarifi's Civil 
     Affairs Ministry and Shaath's Planning Ministry 
     misappropriated funds from unnamed foreign donors.
       Besides Shaath, the panel called for putting Tarifi and 
     Qawasmeh on trial. Both strongly denied wrongdoing. Shaath 
     accused the panel of being ``out of touch with reality'' and 
     said it never approached his ministry for information.
       Agriculture Minister Jawad Saleh criticized investigators 
     for stopping short of Arafat's office. ``The report is 
     important because it is a first attempt by the legislative 
     council to look into offenses by officials,'' Saleh said. 
     ``But it is not comprehensive and . . . does not deal with 
     sensitive issues like security organizations and the office 
     of the president. I blame the president.''
       Arafat's administration has been buffeted by other recent 
     allegations of corruption and mismanagement. In June, 
     attorney general Khaled Kidrah stepped down after being 
     accused of pocketing bail money and taking bribes from 
     prisoners.
       Internaitonal donors have pledged $1.5 billion to Arafat's 
     three-year-old administration, including $225 million from 
     the United States. But far less has actually been delivered, 
     in part because of concerns about lack of accountability.
                                  ____

         

 Arafat's Cabinet Should Be Dissolved, Lawmakers Report--Inquiry Panel 
                        Finds Rampant Corruption

                           (By Julian Borger)

       Jerusalem.--Yasser Arafat's Cabinet is so riddled with 
     corruption that it should be dissolved and some of its 
     ministers put on trial, a Palestinian parliamentary inquiry 
     reported yesterday.
       The report was the latest in a series to lambaste the 
     Palestinian leadership for the flaunting of luxury cars and 
     villas, nepotism and bribe-taking amid the poverty of the 
     West Bank and Gaza.
       Up to $340 million, half the Palestinian Authority's 
     budget, is estimated to have been misspent or embezzled.
       Sa'di al-Krunz, one of the report's authors, said half of 
     the Palestinian Cabinet was implicated in misappropriation of 
     funds. ``There are others who do nothing wrong, but on the 
     other hand they do nothing good,'' he said. ``They are old or 
     they do not know about the ministries they are in charge 
     of.''
       The allegations come at a time when the confidence of major 
     donors is wearing thin and Mr. Arafat desperately needs 
     Western support in his negotiations with the Israelis, due to 
     restart in the next few days.
       The latest report was read at an open session of the 
     Palestinian Legislative Council (PLC) by members of a special 
     investigative committee. It called on Mr. Arafat to 
     ``dissolve the Cabinet and form a new Cabinet made up of 
     technocrats and qualified people.''
       ``The president of the authority should issue his 
     instructions to punish violators against whom there has been 
     proof of guilt and to punish them immediately and to take 
     them to court in order to restore confidence between the 
     Palestinian Authority and its people,'' the report said.
       The committee's findings singled out Civil Affairs Minister 
     Jamil al-Tarifi, Planning Minister Nabil Shaath and Transport 
     Minister Ali Kawasmeh as the worst offenders. Mr. Shaath is 
     the Palestinians' leading negotiator in talks with the 
     Israeli government.
       Mr. Al-Krunz said his committee had come across several 
     cases in which foreign aid had been misappropriated by 
     ministers or senior officials to buy themselves cars or 
     expand and decorate their houses.
       ``When they knew we have discovered these things, they have 
     tried to give the money back,'' he said.
       Another report earlier this month, commissioned by Mr. 
     Arafat himself, came to similar conclusions and called on the 
     Palestinian leader to ``put his house in order.''
       In May, a 600-page audit of the Palestinian Authority found 
     more than $340 million had been ``mismanaged or squandered'' 
     in 1996. At the time, Mr. Arafat promised to take stern 
     action against culprits but warned that he would not allow 
     anyone to ``kill the embryonic dream, our Palestinian 
     Authority, our last step towards an embryonic state.''
       The PLC's report is not legally binding on Mr. Arafat, who 
     frequently ignores the council's proceedings and resolutions. 
     However, he is reportedly planning a Cabinet shakeup, which 
     may take recent allegations into account.
       Since its creation in 1994, Mr. Arafat's Palestinian 
     Authority has received about $1.5 billion in foreign aid.

  Mr. Chairman, I yield 10 seconds to the gentleman from New Jersey 
[Mr. Pappas].
  Mr. PAPPAS. Mr. Chairman, I want to commend the gentleman from New 
Jersey for offering this amendment and stand in strong support of it.
  Mr. SAXTON. Mr. Chairman, I yield myself the balance of my time.
  I would just like to say in closing my part of the debate that there 
are many Americans who have watched and prayed about the peace process 
in the Middle East. Everyone that I know wants it to work. The fact of 
the matter is, it is not working.
  For the concerns of those of us who believe that the agreements are 
not being lived up to, in spite of everyone's best intentions, this 
amendment will provide an opportunity during a 90-day period for the 
President of the United States to take a close look at whatever 
violations have been alleged and then certify as to whether or not 
these in fact have been violations and then if necessary and if 
appropriate and if the House decides further that it is appropriate, 
then obviously aid to the PA will begin.
  Mr. CALLAHAN. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from New Jersey [Mr. Saxton].
  The amendment was agreed to.

                              {time}  2215

  Mr. HASTERT. Mr. Chairman, I move to strike the last word.
  Mr. Chairman, I ask the gentleman from Alabama if he would join with 
me in a colloquy.
  Mr. Chairman, the gentleman from Indiana [Mr. Souder] had a proposal 
to earmark $50 million of INL moneys to purchase four Blackhawk utility 
helicopters for the Colombian National Police as well as provide a 
maintenance and support package in order to further the war against 
drugs, in this case specifically heroin.
  Without this added lift capacity the UH-60's will provide the 
Colombian National Police, they cannot eradicate opium at the high 
elevation of the Andes Mountains. Colombian heroin is killing our kids. 
It does not require precursor chemicals, it does not require big labs, 
and it is nearly impossible to interdict since it comes in deadly one-
kilo packages, one at a time and one carrier at a time.
  Mr. Chairman, the Colombian National Police have been awarded the 
Human Rights Watch seal of approval for their respect for human rights 
and I would ask if the chairman would give me the assurance that he 
will work with me and others to ensure that this issue is raised in 
conference; and we are looking for an earmark of $50 million, if that 
is possible, made available for this purpose.
  Mr. CALLAHAN. Mr. Chairman, will the gentleman yield?
  Mr. HASTERT. I yield to the gentleman from Alabama.
  Mr. CALLAHAN. Mr. Chairman, I will be happy to work with the 
gentleman on this important issue, and I will personally raise this 
issue in conference and press for support of the acquisition of these 
helicopters for the government of Colombia's national police to fight 
narcotics.
  Mr. GILMAN. Mr. Chairman, will the gentleman yield?
  Mr. HASTERT. I yield to the gentleman from New York.
  Mr. GILMAN. Mr. Chairman, I thank the gentleman for yielding to me, 
and I wanted to associate myself with the remarks of the gentleman from 
Illinois [Mr. Hastert], a dedicated drug fighter. I cannot think of a 
more appropriate use of State INL money than for utility helicopters 
for the courageous, dedicated Colombian National Police.
  They are professional law enforcement officers who sorely need this 
equipment to fight drugs at their source, especially the opium crops in 
the Andes, opium from which heroin is derived and which is nearly 
impossible to interdict in small quantities, for example, one kilo at a 
time in which it is trafficked.
  Eradicating it in the high Andes in the opium stage is the key to 
combating the new heroin crisis which we are facing from Colombia 
today, and I urge my colleagues to support the gentleman's proposal.
  Ms. PELOSI. Mr. Chairman, will the gentleman yield?

[[Page H6396]]

  Mr. HASTERT. I yield to the gentlewoman from California.
  Ms. PELOSI. Mr. Chairman, I am pleased that the gentleman will yield. 
However, he may not be happy when he hears what I say.
  The distinguished chief deputy majority whip knows the high esteem in 
which I hold him, so I very regretfully oppose the provision for an 
additional $50 million for the Blackhawk helicopters. Despite the 
chairman's remarks, I would not be supportive of that in conference.
  I very strongly opposed the rule that left the language on human 
rights unprotected with respect to narcotics-related assistance, and 
have serious concerns about that entire issue, and regretfully oppose 
the $50 million for the Blackhawks.
  Mr. HASTERT. Mr. Chairman, reclaiming my time, I thank the 
gentlewoman for her comments, but I disagree with her.
  And, Mr. Chairman, I submit for the Record the endorsement of the 
Human Rights Watch for the Colombian National Police and the work that 
they do, and would just remind the gentlewoman from California that 
heroin, which these helicopters would be used to eradicate, is in the 
high Andes. There is no other way to get there. They cannot get in 
there with the Huey helicopters the Colombia police use today, and 
this, in fact, is their only egress to get into that area.
  I would certainly think that this is a credible thing, and appreciate 
the chairman engaging in this colloquy.
  Ms. PELOSI. Mr. Chairman, will the gentleman yield?
  Mr. HASTERT. I yield to the gentlewoman from California.
  Ms. PELOSI. Mr. Chairman, I want to associate myself with the remarks 
of the gentleman. When I spoke earlier on the point of order on 
removing the language from the bill, I made the distinction between the 
Colombian military and the national police. Indeed, I do not oppose the 
support that we give to the Colombian police in the fight against 
narcotics.
  Mr. HASTERT. Mr. Chairman, reclaiming my time, I would just remind 
the gentlewoman from California that this is the Colombian National 
Police.
  Ms. PELOSI. Mr. Chairman, if the gentleman will continue to yield, I 
understand that. That is why I was saying that I agree with the 
gentleman on the characterization he made about the police. It was not 
about them, it was about the Blackhawks.
  Mr. HASTERT. Mr. Chairman, the extraneous materials I referred to are 
submitted for the Record in support of this colloquy, as follows:
     Date: 07/16/97.
     Time: 02:28:07 pm
     To: International Relations, John Mackey.
     Fax No: 2022252035.
       Dear John: This is a statement we made today in Colombia 
     regarding US military aid to fight drugs. In it, we state 
     very clearly that we are not opposing aid to the Anti-
     Narcotics Police because of their good human rights record, 
     but continue to oppose aid to the Army (point 7).
       Mark can probably parse out the Spanish for a quick read, 
     but I'd be happy to give you the exact wording in English if 
     you need it.
       You're fully welcome to refer to this as the HRW ``Seal of 
     Approval'' for police aid, if you wish. Hang onto it--it 
     doesn't come often!
           Best,
                                                       Robin Kirk,
     Research Associate.
                                  ____

       The UH-60L Blackhawk ``Utility'' Helicopter will provide 
     the Colombian National Police with:
       1. Increased range.
       2. Increased speed.
       3. Increased lift capability.
       4. Increased operational hours.
       5. A demonstrated capability to operate in the higher 
     altitudes of the Andean mountain range to eradicate opium 
     poppies.
       6. Improved crew survivability in high threat environments.
       The overall superiority of the UH-60L Blackhawk helicopter 
     vs. the UH-1H `Huey' helicopter is without question. The 
     `Huey' is today an almost obsolete airframe in comparison to 
     the ``Blackhawk''.
                                 ______
                                 

                               H.R. 2159

                         Offered by: Mr. Souder

       Amendment No. 74: Page 16, line 25, after ``$625,000,000'' 
     insert ``(decreased by $50,000,000)''.
       Page 23, line 26, after ``$230,000,000'' insert 
     ``(increased by $50,000,000)''.

                               H.R. 2159

                         Offered by: Mr. Souder

       Amendment No. 75: Page 24, line 16, insert before the 
     period the following: ``: Provided further, That not less 
     than $50,000,000 shall be available only for the procurement 
     in the United States of four UH-60 Blackhawk utility 
     helicopters, including maintenance and support for such 
     helicopter, to be made available to the DANTI anti-narcotics 
     unit of the Colombian National Police for the purpose of 
     carrying out counternarcotics activities''.


                   Amendment Offered By Mr. McGovern

  Mr. McGOVERN. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 5 printed in House Report 105-184 offered by 
     Mr. McGovern:
       At the end of the bill, insert after the last section 
     (preceding the short title) the following new section:


   sense of the congress relating to international adoption laws and 
                         practices of paraguay

       Sec. 572. It is the sense of the Congress that the 
     President and the Secretary of State should use all 
     opportunities and means to express directly to all 
     appropriate officials of the Government of Paraguay that--
       (1) the United States respects and supports the commitment 
     of the Government of Paraguay to reform its laws and 
     practices regarding international adoptions;
       (2) the pending international adoption cases filed by 
     United States families at or prior to the establishment by 
     the Government of Paraguay of a moratorium on international 
     adoptions, including the 11 adoption cases commonly referred 
     to as the ``window of opportunity'' adoption cases, should be 
     allowed to continue and complete the adoption process in a 
     fair, unbiased, and timely fashion;
       (3) such United States adoption cases should be determined 
     on the basis of the two key tenets for international adoption 
     in Paraguay, namely the fitness of the petitioning family to 
     be parents and what is in the best interests and welfare of 
     the child; and
       (4) any international adoption reform legislation approved 
     by the Government of Paraguay should allow such United States 
     adoption cases to complete the adoption process.

  The CHAIRMAN. Pursuant to the order of the House of Thursday, July 
24, 1997, the gentleman from Massachusetts [Mr. McGovern] and a Member 
opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Massachusetts [Mr. McGovern].
  Mr. McGOVERN. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, an urgent situation confronts American families 
attempting to adopt children from Paraguay. In September 1995 the 
Government of Paraguay imposed a moratorium on all international 
adoptions so that it might reform its laws and regulations and clean up 
the corruption that had so plagued the system.
  Many U.S. families were caught in various stages of the adoption 
process at the time the moratorium was imposed. It has been 23 months 
since the moratorium was imposed, and over three dozen American 
families still find their petitions for international adoptions 
pending.
  While our Embassy personnel in Paraguay have been sympathetic to 
these families, not once has the Paraguayan Government heard from our 
highest officials about the right of these United States families to 
receive fair, timely due process. Not once have they expressed concern 
for the welfare of these children. This amendment seeks to ensure that 
such communication take place.
  Let me be very clear, Mr. Chairman. This amendment means no 
disrespect for Paraguay and, indeed, expresses support for its reform 
process. This amendment is aimed at moving the highest officials of our 
own Government to speak out on behalf of these families and to do it 
quickly, before all hope is lost.
  One of these families caught in the moratorium, Donald and Elaine 
Berube, live in Seekonk, MA, and hope to adopt a little girl. Three 
years ago they successfully adopted a little boy from Paraguay. They 
want to provide him with a baby sister of similar heritage.
  Since they were familiar with the Paraguayan adoption process, and 
had already been approved once as desirable parents by the Paraguayan 
courts, they chose to return to Paraguay in 1995 and file for the 
adoption of a little girl. A few months later the moratorium was 
imposed, and for the Berubes, the judicial process in Paraguay turned 
into an emotional nightmare.
  Like all the American families, the Berubes have struggled to have 
their case proceed through the Paraguayan

[[Page H6397]]

courts in a fair and unbiased manner. They have always acted in a 
manner respectful of the Paraguayan system, and in return they have 
been subjected to delays, arbitrary rulings, appeals and what often 
appears to be anti-American bias and prejudice on the part of the 
Paraguayan press, courts, and some of the judges.
  After reviewing their case and others, it appears to me that the 
Berubes and all of these families have been subjected to special 
scrutiny, with government attorneys and judges searching for every and 
any reason to deny these cases the possibility of proceeding.
  For nearly 2 years the Berubes have bonded with the little girl they 
hope to adopt. They are deeply concerned about her health and her 
welfare. At 20 months she weighs less than 17 pounds, a victim of 
neglect she has experienced at the hands of the Paraguayan state and 
agencies. I firmly believe that without the direct involvement of 
United States officials at the very highest levels, these cases will 
proceed no further and all these children will be doomed to lives of 
neglect.
  Mr. Chairman, these children need families, they need love, and they 
need a healthy environment where they will be well-nourished 
physically, emotionally, and spiritually.
  I hope this amendment will be viewed by all Members of the House as 
noncontroversial. I urge my colleagues to support it, and I would also 
like to thank the chairman, the gentleman from Alabama [Mr. Callahan] 
for his support and generosity in allowing this issue to come forward 
for debate.
  Mr. Chairman, I yield the balance of my time to the gentleman from 
Wisconsin Mr. Jay Johnson.
  Mr. JOHNSON of Wisconsin. Mr. Chairman, I rise tonight in support of 
the McGovern amendment, in support of the children of Paraguay and the 
families in my district and across the United States, like those in Mr. 
McGovern's district, like those in my district and many other places 
who are trying to adopt these children.
  The Jandourek and Pappas families in my district have experienced 
firsthand similar trials and hardships in trying to adopt children from 
Paraguay.
  The Pappas family has been trying to adopt a young girl from Paraguay 
since May 1995. They have faced roadblocks from agents, lawyers, and 
the courts, claiming irregularities in the case. They may not be able 
to adopt. I am told the young girl they are trying to adopt has just 
turned 3 years old. Almost 3 years of waiting, not knowing about her 
future.
  The Jandourek family has experienced similar difficulties. They are 
just beginning their efforts.
  Mr. Chairman, I urge my colleagues to support this amendment and help 
address some of the difficulties that not only families in Wisconsin 
are having, but the difficulties families across the United States are 
experiencing in trying to adopt children from Paraguay. These families 
have waited long enough. I ask for my colleagues' support of adopting 
families and the children of Paraguay. Adopt the McGovern amendment.
  Mr. MATSUI. Mr. Chairman, I rise in strong support of the McGovern 
amendment. I believe it is critical that the Congress make its voice 
heard on the difficult situation facing a number of American families 
attempting to adopt children in Paraguay.
  Among these families are Richard and Donna Moser, who reside in my 
district. some 26 months ago, in May 1995, the Mosers began their 
efforts to adopt a Paraguayan child. On September 18 of that year, the 
Government of Paraguay imposed a moratorium on international adoptions 
in order to reform its laws in this area. Like other families with 
adoption cases pending when the moratorium took effect, the Mosers have 
since faced a seemingly endless series of hurdles and delays in their 
efforts to complete the adoption process.
  The language of this amendment makes it quite clear that no Member of 
this body is questioning the absolutely legitimate efforts of the 
Paraguayan Government to reform its laws governing international 
adoptions. The supporters of this amendment are merely asking that 
cases initiated prior to the moratorium, including the so-called window 
of opportunity cases, will be allowed to proceed without delay under 
the current legal situation and within the provisions of any 
forthcoming new adoption law in Paraguay.
  As my colleagues can imagine, the families who have persevered 
through the very halting and uncertain process since the moratorium was 
announced have made tremendous commitments of their time and emotional 
energies. They have a right to expect a reasonable, comprehensible 
adoption process. The children these families seek to adopt face great 
hardships in Paraguay. They too deserve to have fairness prevail here.
  By passing this amendment, the Congress is making a plea to the 
Government of Paraguay on behalf of this very limited group of families 
seeking the right to finish a process that they could not possibly have 
anticipated would be so terribly arbitrary when they chose this path. I 
believe we are also sending a message to the U.S. State Department that 
this issue merits and requires the highest level of attention. I urge 
my colleagues to join in making this greatly needed statement.
  Mr. SAXTON. Mr. Chairman, I rise in strong support of the amendment 
offered today by my colleague from Massachusetts, Mr. McGovern. I would 
like to thank Mr. McGovern for offering this amendment and I would like 
to thank Chairman Callahan for his strong support for allowing this 
amendment to come to the floor.
  This amendment will help families in America who have sought 
international adoptions from Paraguay.
  Let me take a quick moment to express how important this is, 
especially to the children waiting to be adopted. A family from Berlin, 
NJ, Lori and Ira Bussison have been working to adopt a child named Alex 
since his birth almost 3 years ago.
  Despite the fact that Alex's biological father abandoned his mother 
during her pregnancy and his biological mother placed the child up for 
adoption immediately after giving birth, the Paraguayan court system 
refuses to let this adoption to become finalized.
  While Lori and Ira remain hopeful, each time it seems like Alex will 
be allowed to come to America with his new parents, the family is told 
of another unknown technicality preventing this adoption from becoming 
finalized.
  Recently, Lori spend 3 months living with young Alex in a hotel, 
thinking the adoption case would soon be finalized. Heartbreakingly, 
when it became apparent that the court system would continue to stall, 
Lori, financially drained, had to return to America without Alex yet 
again.
  We must look at the best interest of the family and especially the 
children. A boy like Alex deserves loving parents like Lori and Ira. 
Passage of this amendment will show that the U.S. Congress cares about 
these families and is willing to do its part in finalizing these 
adoption cases.
  I strongly support the McGovern amendment.
  Mr. PAPPAS. Mr. Chairman, I rise in support of the McGovern 
amendment. In my own district, a physician and his wife, fully 
qualified to love and support a child, having been waiting for almost 2 
years for the process to be finalized so they can bring their adopted 
son home to New Jersey. During this time, one or the other of these 
parents has been in Paraguay with the child to nurture and care for 
him, causing great disruption and expense to their family in New 
Jersey.
  Inappropriate and frustrating delays coupled with procrastination by 
officials in Paraguay have turned the joyful and rewarding experience 
of adopting a child into a problem of enormous and unnecessary 
proportions. I would hope that the Government of the United States, and 
the Government of Paraguay working together will be able to quickly 
work through the maze of regulations and make it possible for all the 
children waiting to finally be welcomed by loving families. Let's stop 
being bystanders, and become an active part of the process which will 
help these adoptions be complete.
  I would like to thank the gentleman from Massachusetts on his 
leadership on this issue and I urge every Member to support this 
amendment. Let's prove we are a family-friendly Congress and Nation and 
support adoption of children in Paraguay.
  I thank the chairman and I yield back the balance of my time.
  Mr. TIERNEY. Mr. Chairman, I thank my good friend and colleague from 
Massachusetts for offering this amendment. Mr. Chairman, I have 
tremendous respect for countries such as Paraguay that make significant 
efforts to improve their government. I understand that Paraguay is 
making strong efforts to reform its adoption laws.
  However, there are instances when their judicial system seems not to 
be providing objective due process to international adoptions despite 
the fact that applicants are doing everything in their power to pursue 
these applications legally.
  Mr. Chairman, I have a constituent named Maria Saiz who has been 
trying desperately for 2 years to adopt a little girl named Sara. She 
has done everything possible and legal in her control and still 
receives unfounded excuses for why the process has not gone forward 
favorably.

[[Page H6398]]

  I am happy to report now that the case has been re-routed to the 
lower courts for further processing, but we have no guarantee of how 
that will result.
  Mr. Chairman, this amendment strongly articulates the respect that 
the United States has for Paraguay's efforts to reform its laws, but at 
the same time, it sends a clear message that the courts should fairly 
determine these United States adoption cases based on the fitness of 
the petitioners as parents and the best interest of the child only.
  We must participate in these efforts with the hope that soon these 
children can be adopted by loving parents. I urge my colleagues to vote 
for the McGovern amendment and I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Massachusetts [Mr. McGovern].
  The amendment was agreed to.
  Mr. LAZIO of New York. Mr. Chairman, I move to strike the last word.
  Mr. Chairman, I had prepared an amendment to reduce foreign aid to 
Egypt, but I will suspend that for a moment.
  I have serious concern about the objectives and the part Egypt has 
been playing in terms of its constructive role in the peace process in 
the Middle East. Egypt, as we know, has been historically a partner in 
the pursuit of peace in the Middle East, but its recent actions have 
run contrary to our interests.
  First, Egypt openly advocated for Libya, a well-known terrorist 
state. It urged the U.N. Security Council to accept Lybia's request to 
try the Pan Am 103 bombing suspects in front of an international 
tribunal. That is opposed to the United States policy.
  Second, Egypt is openly encouraging cutbacks to the economic and 
trade sanctions imposed on Libya in 1992. Egypt permitted Colonel 
Qaddafi to fly into Egypt and attend an Arab League summit in Cairo, in 
open violation of the United Nations ban on Libyan air travel. 
Terrorists will never respond to sanctions such as isolation if our 
allies assist Colonel Qaddafi in participating in such a pivotal 
meeting.
  Third, Egypt acted as host of the June 1996 Arab League summit. That 
meeting provided a platform for Arab leaders opposed to peace to 
threaten the halt of normalization of relations between Israel and the 
Arab countries wanting peace.
  Fourth, Egypt, as the leading Arab country, has taken an 
inappropriately active role in lobbying other Arab States to slow the 
normalization of their ties with Israel. Over the last few years, Cairo 
has hosted several meetings with one common aim: The isolation of 
Israel. Egypt even supported the renewal of the boycott of Israel at 
the April 1997 meeting of the Arab League.
  Fifth, in March of this year, Egypt was the only country to block an 
important United States proposal. We were trying to bypass the U.N. 
Security Council condemnation of Israel's construction of a Jewish 
neighborhood in Har Homa. Once again, Egypt's position directly 
conflicted with our Nation's policy.
  And, finally, earlier this month Egypt led an effort to propose a 
U.N. resolution that threatened Israel's participation in the U.N. 
General Assembly. This is one of a series of resolutions introduced 
this year which attempts to isolate Israel and slow the peace process 
in the Middle East.
  To say the least, Egypt's efforts to create momentum and revitalize 
negotiations between Israel and the Palestinians have not been 
consistent. Egyptian public statements that call into question the 
peace process encourage radical Palestinians to harden their Hebron 
negotiating position.
  For example, last October, when violence erupted in the West Bank, 
President Mubarak was the only leader to decline the President's 
invitation to attend a summit in Washington. That summit put the peace 
process back on track and reduced the violence in Israel.
  While Egypt has been, and certainly may remain a strong ally in the 
Middle East, recent actions undercutting their support for peace are 
alarming. Reducing foreign aid to them will emphasize that the United 
States Congress expects Egypt to play a constructive and positive role 
in the Middle East, a role which ensures security for Israel and 
durable peace and prosperity for the entire region.
  Mr. GILMAN. Mr. Chairman, will the gentleman yield?
  Mr. LAZIO of New York. I yield to the gentleman from New York.
  Mr. GILMAN. Mr. Chairman, I thank the gentleman for yielding to me, 
and I want to take the opportunity to thank the gentleman from New York 
for expressing his concern about Egypt and its relationship with our 
Nation and with Israel, and its involvement in the Middle East peace 
process and other regional concerns of critical United States interest.
  During consideration of our foreign aid bill, our House Committee on 
International Relations included language which spoke to the growing 
disappointment among Members of Congress regarding Egypt's activities 
in a broadening spectrum of issue areas, some of which the gentleman 
has already recited here tonight.
  That language reiterated that Egypt's assistance, of which $1.3 
billion is military assistance and $850 million is economic assistance, 
is based upon its implementation of the Camp David Accords, notably 
establishing relationships with Israel that are normal to states at 
peace with each other, and found Egypt's fulfillment of these 
obligations disappointing.

                              {time}  2230

  Many Members of Congress believe that future assistance to Egypt 
should, therefore, be predicated on Egypt's full implementation of its 
campaign obligations and promotion of peace with Israel and other 
critical United States interests.
  And while I have been informed that the gentleman from New York [Mr. 
Lazio] may consider withdrawing his amendment, he can be certain that 
we share many of his concerns that our Committee on International 
Relations will continue to closely monitor Egypt's performance on a 
wide variety of issues that he raised. And I thank the gentleman from 
New York [Mr. Lazio] for raising these issues before us this evening.
  Mr. LAZIO of New York. Mr. Chairman, reclaiming my time, I thank the 
gentleman from New York [Mr. Gilman], the distinguished chairman of the 
Committee on International Relations, and based on the gentleman's 
representations, I will not offer this amendment.
  But I do want to reiterate the strong concerns that many Members of 
Congress have, including this Member, about Egypt's actions and the 
lack of engaging in a constructive role in the Middle East and that the 
foreign aid account should not be considered sancrosanct when it comes 
to considering this issue.


                Amendment No. 73 Offered by Mr. Menendez

  Mr. MENENDEZ. Mr. Speaker, I offer an amendment.
  The CHAIRMAN. Is the amendment printed in the Record?
  Mr. MENENDEZ. Yes, Mr. Chairman, it is.
  The Clerk read as follows:

       Amendment No. 73 offered by Mr. Menendez:
       At the end of the bill, insert after the last section 
     (preceding the short title) the following new section:
       Sec. 572. None of the funds appropriated or otherwise made 
     available by this Act under the heading ``nonproliferation, 
     anti-terrorism, demining and related programs'' that are made 
     available for the International Atomic Energy Agency shall be 
     made available for programs and projects of such Agency in 
     Cuba.

  Mr. MENENDEZ (during the reading). Mr. Chairman, I ask unanimous 
consent that the amendment be considered as read and printed in the 
Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New Jersey?
  There was no objection.
  Mr. MENENDEZ. Mr. Chairman, my amendment seeks to limit the use of 
U.S. taxpayer dollars to the International Atomic Energy Agency for 
programs and projects in Cuba. Over the next 3 years, Cuba will receive 
more than $1.7 million from the IAEA, even though Cuba has continuously 
refused to sign the Treaty on Non-Proliferation of Nuclear Weapons, 
ratify the Treaty of Tlatelolco, negotiate full-scope safeguards or 
incorporate internationally accepted nuclear safety standards.
  In addition to those glaring aberrations, the Castro dictatorship has 
decided that a dangerous Soviet-era nuclear plant in Juragua, near 
Cienfuegos, Cuba, should be completed and operated. Already the IAEA 
has provided

[[Page H6399]]

nearly $700,000 to Cuba to support the Juragua Nuclear Power Plant.
  A letter to me from President Clinton stated that:

       The United States opposes the construction of the Juragua 
     nuclear power plant because of our concerns about Cuba's 
     ability to ensure the safe operation of the facility and 
     because of Cuba's refusal to sign the Nuclear Non-
     proliferation Treaty or ratify the Treaty of Tlatelolco.

  The State Department, the Nuclear Regulatory Commission, and the 
Department of Energy have also expressed concerns about the 
construction and operation of Cuba's proposed nuclear reactors.
  Dr. Edward Purvis, who headed the United States Department of 
Energy's investigation of Cuba's reactors has this to say:

       An accident in the Cuban VVER-440 is probable. It is just a 
     question of when. I don't know if they are the most dangerous 
     reactors in the world, but they are the most dangerous 
     reactors anywhere close to the United States.

  In a report to Congress, the General Accounting Office outlined 
concerns among nuclear energy experts about deficiencies in the 
Cienfuegos nuclear plant project. They included: A lack in Cuba both of 
a nuclear regulatory scheme and an adequate infrastructure to ensure 
the plant's safe operation, maintenance, and adequate training of 
program operators.
  Reports by a former technician from Cuba who, by examining with x 
rays, weld sites believed to be part of the auxiliary plumbing system 
for the plant, found that 10 to 15 percent of those were defective. 
This technician, Mr. Jose Oro, was quoted as saying, ``The operation of 
this reactor will be criminal. The construction was being performed in 
a completely negligent manner.''
  According to the U.S. Geological Survey, the Caribbean plate, where 
this reactor sits, is in fact subject to seismic risks to Cuba in the 
reactor cite and may produce large to moderate earthquakes and in fact 
may produce large to moderate earthquakes. In fact, on May 25, 1992, 
the Caribbean plate produced an earthquake numbering 7 on the Richter 
scale.
  Finally, I would like members who are from the State of Texas, 
Louisiana, Arkansas, Mississippi, Alabama, Florida, Georgia, Tennessee, 
South Carolina, North Carolina, Maryland, Virginia, and here in 
Washington, DC, to consider the following: We are talking about in 
those States over 80 million Americans, Mr. Chairman, almost one in 
three Americans to my right on this chart.
  According to a study by the National Oceanic and Atmospheric 
Administration, summer winds could carry radioactive pollutants from a 
nuclear accident at the power plant throughout all of Florida and parts 
of the States on the gulf coast as far as Texas and northern winds 
could carry the pollutants as far northeast as Virginia and Washington, 
DC. Many more states would be affect in the time.
  So we should point out that this is not a question of nuclear safety 
where we might be interested in supporting the IAEA here, because there 
is at present no nuclear material at the Juragua power plant. But what 
the IAEA is doing is preserving the plant so that construction can be 
renewed at a point in time in which Cuba acquires sufficient financing 
a plant that we have said that we do not want a plant, that the 
President has said he is concerned about a plant, that the GAO says 
that does not make any sense and is a risk and that the National 
Oceanic and Atmospheric Administration says is a risk.
  So the question is whether or not you believe that the United States 
taxpayer dollars should be supporting the preservation of this 
dangerous plant with our tax dollars, particularly whether Cuba will 
likely never have the resources to complete it and if it did would pose 
a very serious national security threat to the United States.
  I believe it is in our national interest not to be having resources 
go in this way. If there was a plant that was up and running and a 
plant that we said did not pose a threat to us, yes, let us have the 
IAEA produce the opportunity for oversight but let us not give them 
money to mothball a plant that we never want to see take place in the 
first place.
  I hope that the committee will accept the amendment, and certainly I 
ask my colleagues to support it.
  Ms. PELOSI. Mr. Chairman, I move to strike the last word.
  Mr. Chairman, our distinguished colleague, the gentleman from New 
Jersey [Mr. Menendez] said at the end of his remarks that he 
understands that the committee will accept the amendment, and that is 
my understanding as well. But I would like to just take a moment to put 
a couple of observations on the Record without commenting on the 
Committee's rule.
  My colleagues, I understand your preference to shut down the IAEA's 
activity in Cuba. As we know, that is not necessarily achieveable by 
simply cutting off U.S. participation. The IAEA functions as an 
international body with contributions from many sources, and 
consequently its program decisions are not made by the United States 
alone.
  I do not necessarily disagree with the gentleman from New Jersey [Mr. 
Menendez] on the issue of renewing the construction of the power plant 
in Cuba. I oppose that in fact, and the U.S. opposes that. In fact, the 
United States has regularly pleaded with our allies not to help Cuba 
revive this project. So far, that effort has succeeded.
  Unilateral efforts such as this pose a problem for us in achieving 
our credibility in achieving our goal in these multilateral, 
multinational bodies. I am concerned, therefore, how this action would 
affect our credibility with the IAEA on other matters. For years the 
United States, at the urging of Congress, fought with other nations who 
were attempting to exclude Israel from IAEA.
  Our point was that an international organization was unfair to single 
out one country for discriminatory treatment. This amendment puts us in 
a position of doing that. We are presently depending on the work of the 
IAEA to be the eyes and ears of the world when it comes to monitoring 
the activities of North Korea, Iraq, and other countries that we might 
not consider to be within the realm of countries that are operating in 
a way with respect for their citizens. We are counting on the IAEA to 
be the eyes and ears, as I said, with respect to nuclear programs.
  The U.S. has a vital stake in this ongoing work, and we should not 
jeopardize that. That is why I want to put on the Record my concern for 
passing unilateral prohibitions such as this one. It puts us in an 
uncomfortable position when comes to influencing IAEA or countries like 
North Korea, where vital U.S. interests are also at stake.

  So, as I say, I am not disagreeing with the gentleman from New Jersey 
[Mr. Menendez] on the substance of his amendment, but I do in terms of 
my responsibilities to the subcommittee and our other activities want 
to put some of these concerns on the Record.
  Mr. MENENDEZ. Mr. Chairman, will the gentlewoman yield?
  Ms. PELOSI. I yield to the gentleman from New Jersey.
  Mr. MENENDEZ. Mr. Chairman, I appreciate the statements of the 
gentlewoman from California [Ms. Pelosi] and I appreciate her support, 
notwithstanding her concerns. I just want to address her concerns and 
say that it is my understanding that in all years except one, actually 
this was written into the law up to 1994, and subsequently to that, we 
have sought through amendments to do what in fact we are doing here 
again tonight; and that has not in any way created a difficulty for us 
as a country with the IAEA.
  As a matter of fact, we made contributions to what they call a 
special account that in fact is directly for this purpose. So I think 
that we will continue to have a good relationship with the IAEA, we 
will continue to make sure that they provide for nuclear safeguards and 
in many places throughout the world in which they do excellent work, 
but still send a very clear message that we do not want this power 
plant.
  I appreciate the concerns of the gentlewoman from California [Ms. 
Pelosi].
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from New Jersey [Mr. Menendez].
  The amendment was agreed to.


              Amendment No. 12 Offered by Mr. Rohrabacher

  Mr. ROHRABACHER. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. Has the amendment been printed in the Record?

[[Page H6400]]

  Mr. ROHRABACHER. Yes, Mr. Chairman, it has.
  The Clerk read as follows:

       Amendment No. 12 offered by Mr. Rohrabacher:
       At the end of the bill, insert after the last section 
     (preceding the short title) the following new section:


                 prohibition of assistance to cambodia

       Sec.   . (a) None of the funds appropriated in this Act may 
     be made available to the Government of Cambodia.
       (b) None of the funds appropriated in this Act for the 
     International Development Association, the International 
     Monetary Fund, or the Asian Development Bank may be used for 
     any loan to the Government of Cambodia.

  Mr. ROHRABACHER (during the reading). Mr. Chairman, I ask unanimous 
consent that the amendment be considered as read and printed in the 
Record.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
California?
  There was no objection.
  Mr. ROHRABACHER. Mr. Chairman, the amendment that I am offering is a 
second amendment we have had tonight on Cambodia. It is a bit tougher 
than the last amendment. Although I appreciate the efforts of the 
gentleman from Nebraska [Mr. Bereuter] in the last amendment.
  The reason why my amendment is a bit tougher than the last one is 
that it puts the United States Congress on record as supporting the 
denial of any funds that are appropriated by this act for international 
lending institutions, such as International Monetary Fund and Asian 
Development Bank.
  This measure is essential. Because, while direct United States 
foreign aid is a small portion of the Cambodian regimes, and we are now 
talking about a rogue Cambodian regime, international donations account 
for half of that government's revenues. It is essential that the 
dictator, the strongman there, Hun Sen, realize that American 
representatives to these lending institutions are being directed by 
Congress to press for withholding of these funds. Even if the 
prohibition of these funds is not immediately possible, at least our 
people will be making the case. And if abuses in Cambodia continues, 
the U.S. position will be strengthened.
  Thus, I would ask my colleagues to join me in supporting this 
amendment, which, as I say, is a bit tougher and sends a message that 
we are not going to permit aid to come through the back door to this 
gangster that shot his way into power and who has brutally murdered his 
opposition. We are taking a tough stand on Cambodia, and that is 
exactly what we should do, to send a message that we want a return to 
democracy and we are not going to be supportive of that regime until 
the regime goes back on track toward a Democratic election in May.
  Ms. LOFGREN. Mr. Chairman, will the gentleman yield?
  Mr. ROHRABACHER. I yield to the gentlewoman from California.
  Ms. LOFGREN. Mr. Chairman, I thank the gentleman from California [Mr. 
Rohrabacher] for yielding.
  Mr. Chairman, I rise in support of the Rohrabacher amendment. I 
really believe that on both sides of the aisle we are of one mind on 
the outrage that is going on in Cambodia. We want to take a strong 
stand. I appreciate the Bereuter amendment, and I support this further 
step.
  I understand, I am not a member of this committee, that the Bereuter 
amendment, comments on it might be technically correct. But I think 
this takes a stand, as my colleague has noted, the international 
community, in addition to this Congress, needs to stand up for human 
rights and for democracy and against a repeat of the killing fields in 
Cambodia.
  In addition to this, I hope that our administration is listening 
tonight so that they may take those steps necessary to rally around the 
international community, our allies that are also contributing that 
half of revenue into Cambodia. We need to act internationally to 
prevent an even greater disaster that has yet occurred and to insist 
that civility be returned to Cambodia, that democracy exist in that 
country, and that we will stand by those Cambodians who have risked 
their lives and their families and the lives of their families in 
behalf of freedom.

                              {time}  2245

  Mr. ROHRABACHER. Reclaiming my time, I appreciate the efforts of the 
gentleman from Nebraska [Mr. Bereuter], I appreciate the support of 
others on the committee. This is a truly bipartisan effort as are most 
of the human rights efforts made in this Congress, and ever 
increasingly made in this Congress.
  My bill is a bit tougher than the other amendment that has been 
offered regarding American support to Cambodia. It is tougher because 
it puts Congress on record of supporting the denial of U.S. funds 
appropriated in this act for international lending institutions, such 
as the International Monetary Fund and the Asian Development Bank. This 
measure is essential because while direct United States foreign aid is 
a small portion of the regime's funding, international donations 
account for half of the Government of Cambodia's revenues. It is 
essential that Hun Sen realize that American representatives to these 
lending institutions will press for withholding of these funds, even if 
the prohibition of these funds is not immediately possible. If abuses 
in Cambodia continue the United States position will be strengthened.
  This provision was requested by exiled members of the elected 
Cambodian Government, by many members of the Cambodian-American 
community and in consultation with Steven Solarz, the Clinton 
administration's special envoy for Cambodia.
  It is my intention that funding be restored after a democratic 
government constituted through the framework of the 1991 Paris accords 
is restored, including: the return of all elected members of government 
and leaders of democratic opposition parties currently in exile to 
safely campaign for a free and fair election; the disbanding of all 
private armies and militias; the creation of national election laws and 
an independent judiciary system; and certification by the President 
that adequate safeguards are in place to assure free and fair 
elections, including penalty provisions for any further abuses.
  Ms. PELOSI. Mr. Chairman, will the gentleman yield?
  Mr. ROHRABACHER. I yield to the gentlewoman from California.
  Ms. PELOSI. Because the hour is late, I thank the gentleman for 
yielding, and I thank him for his leadership on this important issue. I 
once again reiterate my support for the gentleman's amendment. I thank 
the gentlewoman from California for her leadership as well.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from California [Mr. Rohrabacher].
  The amendment was agreed to.
  Mr. FOX of Pennsylvania. Mr. Chairman, I move to strike the last 
word.
  Mr. Chairman, I would like to engage the chairman's assistance for 
NATO expansion. It is my understanding that this bill contains funds 
for new countries to join NATO at the invitation of the organization 
this summer in Madrid.
  Mr. CALLAHAN. Mr. Chairman, will the gentleman yield?
  Mr. FOX of Pennsylvania. I yield to the gentleman from Alabama.
  Mr. CALLAHAN. The answer is yes.
  Mr. FOX of Pennsylvania. Under this provision, Mr. Chairman, are the 
funding levels adequate for these new countries to join NATO and to 
maintain NATO standards, in the gentleman's opinion?
  Mr. CALLAHAN. The answer is once again yes.
  Mr. FOX of Pennsylvania. Further, Mr. Chairman, do we have the 
chairman's assurance that he will support and protect this provision in 
conference and do everything in his power to follow through from the 
Madrid conference and make sure that these same new countries will be 
asked to join and will be helped in maintaining complete NATO 
standards?
  Mr. CALLAHAN. Yes.
  Mr. FOX of Pennsylvania. Mr. Chairman, I thank the gentleman from 
Alabama [Mr. Callahan] very much. As the chairman of the committee, I 
want to thank the gentleman for his leadership, for the time and 
assistance he has given to this and other issues important to our 
country in our international relations. I would like to add that I 
wholeheartedly support this program and will take all measures 
necessary to see that we do invite the nations chosen in Madrid to join 
NATO at the earliest possible date and that we continue to invite new 
NATO members in the future.
  Mr. COX of California. Mr. Chairman, I move to strike the last word.
  Mr. Chairman, the administration's stated intention in funding KEDO 
was to gain international monitoring and supervision of North Korea's 
nuclear

[[Page H6401]]

program and specifically to assist in preventing North Korea from 
developing nuclear weapons. A further goal of the Clinton 
administration's support for KEDO was to require North Korea to submit 
to third-party inspection of its nuclear facilities, to provide an 
accounting for its plutonium stocks, particularly any highly enriched 
weapons-grade plutonium, and to minimize the future production of 
weapons-grade plutonium from its nuclear power plants. I would ask the 
chairman whether that is the committee's understanding.
  Mr. CALLAHAN. Mr. Chairman, will the gentleman yield?
  Mr. COX of California. I yield to the gentleman from Alabama.
  Mr. CALLAHAN. Yes, that is my understanding, and I think the 
committee as well, that these were the stated intentions of the 
administration when they requested funding for KEDO.
  Mr. COX of California. I thank the chairman. I wonder if I might 
inquire whether it is the chairman's further understanding that KEDO is 
assuming substantial debts with some estimates that these debts total 
over $40 million?
  Mr. CALLAHAN. Yes, I am very much concerned about the reports that 
KEDO has been accruing large debts to support the purchase of heavy 
fuel oil for North Korea which are well above the funds made available 
by appropriations by the Congress for this purpose. The information 
that the gentleman has furnished me is very disturbing to me.
  Mr. COX of California. I thank the chairman once again.
  Mr. Chairman, an amendment to strike the funding in the bill for KEDO 
was made in order. My amendment was prompted by reports that North 
Korea has in fact developed nuclear weapons, that it has thus far 
failed to permit third-party inspections of its nuclear facilities 
adequate to account for its stocks of highly enriched weapons-grade 
plutonium and that KEDO has sought to borrow funds in excess of its 
direct international funding. Since the committee's inclusion of KEDO 
funding is premised on the administration's representations about these 
very matters, I once again inquire, will the chairman be willing to 
revisit the provision of this bill at a future date if the reports to 
which I have referred prove to be true?
  Mr. CALLAHAN. The committee's understanding is that the 
administration's intention in funding KEDO is to deter North Korea's 
production of nuclear weapons. If it is confirmed that North Korea has 
in fact developed nuclear weapons and is continuing to do so, or that 
North Korea has failed to account to the international community for 
its plutonium stocks, or that KEDO is engaged in borrowings not 
anticipated by our original agreement to provide financial support, 
then yes, I think the committee would indeed wish to revisit our 
support, because the United States should not provide even indirect 
support for North Korea's energy programs under such circumstances.
  Mr. COX of California. Mr. Chairman, in light of the committee's 
intention to terminate U.S. funding of KEDO if the original premises 
are no longer valid, my amendment is rendered unnecessary, and I would 
withdraw it.
  Mr. BEREUTER. Mr. Chairman, will the gentleman yield?
  Mr. COX of California. I yield to the gentleman from Nebraska.
  Mr. BEREUTER. I thank the gentleman for yielding. I want to 
compliment him and the chairman on the understanding they have reached. 
As the chairman of the authorizing subcommittee, I certainly agree with 
the premises of the gentleman's comments and colloquy from the 
chairman. I commend the gentleman on it.
  Mr. COX of California. I wish in turn to recognize the efforts of the 
chairman on this very subject and I look forward to working with the 
gentleman.
  Mr. GILMAN. Mr. Chairman, will the gentleman yield?
  Mr. COX of California. I yield to the gentleman from New York.
  Mr. GILMAN. I thank the gentleman from California for bringing this 
matter to our attention. While I certainly support food aid to North 
Korea that the gentleman initially was concerned about, and as long as 
it is adequately monitored I share the gentleman's concerns about KEDO 
and will raise this in our Committee on International Relations. I 
would not support an amendment cutting off food aid but would support 
the gentleman's concerns about KEDO. I commend the gentleman for 
raising the issue.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I move to strike the last 
word.
  Mr. Chairman, I would like to enter into a colloquy with the 
gentleman from Alabama [Mr. Callahan] and the gentlewoman from 
California [Ms. Pelosi]. I would like to thank the gentleman from 
Alabama [Mr. Callahan] and the distinguished ranking member for 
engaging me in this very important colloquy. According to the State 
Department, Ethiopia's government limits freedom of association and 
refuses to register several nongovernmental organizations. Societal 
discriminations and violence against women and abuse of children remain 
problems. The apparent act of female genital mutilation is nearly 
universal. Domestic violence including wife beating and rape are 
pervasive social problems. Nationwide, thousands of criminal suspects 
remain in detention without charge or trial at the close of 1996. Most 
often these detentions resulted from the severe shortage and limited 
training of judges, prosecutors and attorneys.
  Mr. CALLAHAN. Mr. Chairman, will the gentlewoman yield?
  Ms. JACKSON-LEE of Texas. I yield to the gentleman from Alabama.
  Mr. CALLAHAN. Mr. Chairman, I would like to thank the gentlewoman 
from Texas for once again bringing this very important matter to the 
attention of the Subcommittee on Foreign Operations, Export Financing 
and Related Programs of the Committee on Appropriations.
  Human rights is important around the world, but it is especially 
important in Africa. We need to closely monitor Ethiopia's human rights 
record. I would be very happy to work closely with the gentlewoman to 
make certain the State Department pursues this issue aggressively and 
the Government of Ethiopia responds to your concerns.
  Ms. JACKSON-LEE of Texas. I thank the gentleman for his kindness and 
recognizing the very important issue that this is.
  Ms. PELOSI. Mr. Chairman, will the gentlewoman yield?
  Ms. JACKSON-LEE of Texas. I yield to the gentlewoman from California, 
the ranking member who has a distinguished record on human rights.
  Ms. PELOSI. Mr. Chairman, I thank the gentlewoman for yielding. I 
want to join our distinguished chairman in thanking the gentlewoman 
from Texas for her leadership in bringing this matter to the 
subcommittee's attention and will join our chairman in working with her 
to monitor the State Department's actions on this. I again commend the 
gentlewoman for her leadership on this issue.
  Mr. GILMAN. Mr. Chairman, will the gentlewoman yield?
  Ms. JACKSON-LEE of Texas. I yield to the gentleman from New York and 
thank the gentleman because we worked so closely together during the 
authorization period. I thank him for his leadership.
  Mr. GILMAN. I thank the gentlewoman from Texas for her longtime 
interest in Ethiopia and African issues in general. Africa receives far 
less attention from this body than it deserves. However, I wanted to 
make certain that we recognize the gentlewoman's efforts on behalf of 
Ethiopia. The Agency for International Development does take into 
account human rights issues when it decides on the level of assistance 
for Ethiopia as it does for other nations in Africa and elsewhere. 
Ethiopia, of course, does not have a perfect record on human rights 
issues, but many of its neighbors in Africa and other regions have far 
worse records and we are not singling them out.
  The gentlewoman's raising this issue before this body is worthy of 
our attention. I want to assure the gentlewoman our committee will 
continue to monitor the events in Ethiopia. I thank the gentlewoman for 
her concern.
  Ms. JACKSON-LEE of Texas. I thank the gentleman very much. He is very 
right. Africa must rise very high on our barometer screen and we must 
recognize the importance of improving their human rights position.
  Again I would like to thank both the chairman and the distinguished 
ranking member. I bring this to the attention of the Subcommittee on 
Foreign

[[Page H6402]]

Operations, Export Financing and Related Programs of the Committee on 
Appropriations and the whole House because I think we must be concerned 
about how countries treat their citizens if we are doling out the 
public's money every year. The American people need to know that the 
maternal mortality rate is extremely high, due in part to food taboos 
for pregnant women, early marriage, and birth complications related to 
female genital mutilation. For example, I am particularly interested 
and concerned about Ethiopia's treatment toward women. It is true that 
clitoridectomies are typically performed 7 days after birth and 
excision of the labia and the infibulation are the most dangerous and 
extreme.
  Again I would like to urge the Congress to monitor the human rights 
record of Ethiopia as it relates to obligating funds for fiscal years 
1998 and 1999, and I think collectively we can improve all conditions 
in Africa and particularly improve conditions in Ethiopia.
  Mr. BEREUTER. Mr. Chairman, I move to strike the last word.
  Mr. Chairman, I want to thank the chairman, the ranking member and 
all the staff here this evening for their indulgence. I would like to 
engage the chairman in a colloquy on two issues.
  Mr. Chairman, I would like to thank first of all the gentleman from 
Alabama [Mr. Callahan] and the subcommittee for its recommendations 
with respect to international agricultural assistance. This Member is 
pleased that the committee report recommends continued support for a 
number of collaborative research support programs and calls for 
increased support for the agricultural development assistance in 
USAID's budget. However this Member would request that the chairman of 
the Appropriations Subcommittee enter into a colloquy to further 
clarify this matter.
  Mr. Chairman, the committee report specifically mentions support for 
six collaborative research support programs. Certainly all of the CRSP 
programs make major contributions in helping agrarian-based nations 
develop their economies and increase their readiness for private 
investment through their contributions in human resource development, 
education, training, health and nutrition and in improving the human 
capital capacity of agricultural research and development institutions.
  Mr. Chairman, in addition to the six CRSPs specifically mentioned in 
the committee report, is it also the committee's intention to support 
the sorghum millet CRSP and the integrated pest management CRSP in 
their efforts to promote sustainable agricultural practices in the 
developing world?
  Mr. CALLAHAN. Mr. Chairman, will the gentleman yield?
  Mr. BEREUTER. I yield to the gentleman from Alabama.
  Mr. CALLAHAN. The response is yes, it is our intention.
  Mr. BEREUTER. I thank the gentleman very much. I want to thank the 
gentleman for his clarification.
  On the second matter, Mr. Chairman, I would like to comment on the 
report of the distinguished Commission on International Trade 
Development and Cooperation which calls for a funding level of at least 
$500 million for international agriculture and rural development 
programs in the USAID appropriation for fiscal year 1998. It seems like 
a reasonable goal to me, given the importance of the programs to the 
development of future markets for our U.S. farmers and the need to 
reverse the decline in these programs at USAID in recent years.
  Does the gentleman agree that there has been a relative decline in 
funds for this important program and that a target of $500 million or a 
relevant percentage increase in funding would be appropriate over the 
next several years?
  Mr. CALLAHAN. Yes, I do agree that agricultural decline has been too 
much and that we should work together to establish an appropriate goal 
consistent with other priorities.
  Mr. BEREUTER. Mr. Chairman, that is all I can ask. I do appreciate 
the distinguished gentleman for his cooperation on this effort and for 
his effort tonight in general.

                              {time}  2300

  Mr. CALLAHAN. Mr. Chairman, I am sure you will be pleased to hear 
that we are going to rise.
  We thank our entire staff for their patience and their understanding 
and cooperation that we have received, and I move that the Committee do 
now rise.
  The motion was agreed to.
  Accordingly, the Committee rose; and the Speaker pro tempore [Mr. 
Pease] having assumed the chair, Mr. Thornberry, Chairman of the 
Committee of the Whole House on the State of the Union, reported that 
that Committee, having had under consideration the bill (H.R. 2159), 
making appropriations for foreign operations, export financing, and 
related programs for the fiscal year ending September 30, 1998, and for 
other purposes, had come to no resolution thereon.

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