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   104th Congress 1st 
         Session        HOUSE OF REPRESENTATIVES    Rept. 104-128
                                                        Part 1
_______________________________________________________________________

                                     


                AMERICAN OVERSEAS INTERESTS ACT OF 1995

                               ----------                              

                              R E P O R T

                                 of the

                  COMMITTEE ON INTERNATIONAL RELATIONS
                        HOUSE OF REPRESENTATIVES

                                   on

                               H.R. 1561

                             together with

                     MINORITY AND ADDITIONAL VIEWS




                  May 19, 1995.--Ordered to be printed
AMERICAN OVERSEAS INTERESTS ACT OF 1995
   104th Congress 1st   HOUSE OF REPRESENTATIVES    Rept. 104-128
         Session
                                                        Part 1
_______________________________________________________________________

                                     


                AMERICAN OVERSEAS INTERESTS ACT OF 1995

                               __________

                              R E P O R T

                                 of the

                  COMMITTEE ON INTERNATIONAL RELATIONS
                        HOUSE OF REPRESENTATIVES

                                   on

                               H.R. 1561

                             together with

                     MINORITY AND ADDITIONAL VIEWS




                  May 19, 1995.--Ordered to be printed
104th Congress                                            Rept. 104-128
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     Part 1
_______________________________________________________________________


 
                AMERICAN OVERSEAS INTERESTS ACT OF 1995

                                _______


                  May 19, 1995.--Ordered to be printed

_______________________________________________________________________


 Mr. Gilman, from the Committee on International Relations, submitted 
                             the following

                              R E P O R T

                             together with

                     MINORITY AND ADDITIONAL VIEWS

                        [To accompany H.R. 1561]

      [Including cost estimate of the Congressional Budget Office]
    The Committee on International Relations, to whom was 
referred the bill (H.R. 1561) to consolidate the foreign 
affairs agencies of the United States; to authorize 
appropriations for the Department of State and related agencies 
for fiscal years 1996 and 1997; to responsibly reduce the 
authorizations of appropriations for United States foreign 
assistance programs for fiscal years 1996 and 1997, and for 
other purposes, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.
    The amendment is as follows:
    The amendment strikes out all after the enacting clause of 
the bill and inserts a new text which appears in italic type in 
the reported bill.
                         Background and Purpose

    H.R. 1561, the ``American Overseas Interests Act of 1995'', 
is intended to provide for continued United States leadership 
in international affairs consistent with United States 
interests in the post-Cold War era and the constraints of the 
United States budget deficit.
    The bill is organized into three divisions: Division A, the 
``Foreign Affairs Agencies Consolidation Act of 1995''; 
Division B, the ``Foreign Relations Authorization Act, Fiscal 
Years 1996 and 1997''; and Division C, the ``Foreign Aid 
Reduction Act of 1995''. Each of these divisions reforms the 
foreign affairs institutions and programs that have grown up 
over the last forty years and adapts them to the requirements 
of the post-Cold War era.
    Division A abolishes three agencies that effectively 
promoted United States interests during the Cold War--the Arms 
Control and Disarmament Agency, the United States Information 
Agency, and the Agency for International Development--but whose 
functions can now be carried out more efficiently by a 
strengthened and reorganized Department of State. The 
consolidation of these agencies into the Department of State 
will improve the coordination of United States foreign policy 
under the leadership of the Secretary of State. It will also 
facilitate a more rational downsizing of the foreign affairs 
budget by encouraging elimination of overlapping and obsolete 
functions.
    Division A seeks to provide maximum flexibility to the 
Executive branch to carry out the consolidation of foreign 
affairs agencies and the reorganization of the Department of 
State. By resisting the temptation to dictate the precise 
structure that is to emerge from the reorganization, the 
Committee intends to engage the expertise of the Executive 
branch in the reorganization and downsizing process.
    Division B provides for a reduced level of funding for the 
programs and activities of the Department of State, the United 
States Information Agency, and the Arms Control and Disarmament 
Agency in fiscal years 1996 and 1997. These funding reductions, 
which are dictated by the urgent need to reduce the budget 
deficit and by the reduced requirements of the post-Cold War 
era, can be absorbed more readily as a result of the 
consolidation and reorganization of foreign affairs agencies 
mandated by Division A. The authorization levels in Division B 
for the operating costs of the foreign affairs agencies reduce 
spending in fiscal years 1996 and 1997 by $382 million from the 
appropriated levels in the current fiscal year.
    Division C reduces spending on foreign assistance in fiscal 
years 1996 and 1997 and reorders spending priorities in order 
to concentrate spending on programs that promote essential U.S. 
interests.
    The authorization levels in Division C reduce foreign 
assistance spending in fiscal year 1996 by about $1 billion 
from the appropriated level in the current fiscal year, and by 
$1.8 billion from the President's request. Spending in fiscal 
year 1997 is cut by about $2 billion from current spending. 
Projecting the spending levels authorized by Division C over 
seven years, a total of $21 billion will be saved.
    Division C reorients the reduced level of foreign 
assistance spending toward programs and activities that 
demonstrably advance essential U.S. interests. Spending on 
antiterrorism assistance, antinarcotics assistance, NATO 
expansion assistance, and assistance to Israel and Egypt in 
support of the Middle East peace process is either protected 
from cuts or increased.
    As a result of reduced spending and reordered priorities, 
numerous programs foreign assistance programs are eliminated. 
Among the programs eliminated are the AID Housing Guarantee 
Program, the P.L. 480 Title III Food Aid Program, and the U.N. 
Capital Development Fund.
    Because the cuts in foreign assistance and other 
international spending are focused away from high priority 
programs and activities, H.R. 1561 preserves the ability of the 
United States to vigorously advance its interests overseas. By 
streamlining government and contributing significantly to 
deficit reduction, H.R. 1561 will help foster U.S. economic 
growth, thereby preserving into the next century the true 
source of America's global power and influence.
                            COMMITTEE ACTION

                               DIVISION A

    On April 4, l995, the Full Committee held a hearing on 
consolidation of the foreign affairs agencies.
    Witnesses for this hearing included: Under Secretary 
Richard Moose, Department of State; Administrator Brian Atwood, 
Agency for International Development; Director Joseph Duffy, 
U.S. Information Agency; and Director John Holum, Arms Control 
and Disarmament Agency.
    On May 9, 1995, the Full Committee held a hearing on H.R. 
1561, with particular emphasis on consolidation of the foreign 
affairs agencies.
    Witnesses for this hearing included: Under Secretary 
Richard Moose, Department of State; Administrator Brian Atwood, 
Agency for International Development; Director Joseph Duffy, 
U.S. Information Agency; and Deputy Director Ralph Earle,II, 
U.S. Arms Control and Disarmament Agency

                               DIVISION B

    The Subcommittee on International Operations and Human 
Rights held the following hearings on the fiscal year 1996 
authorization requests for the Department of State, USIA, and 
ACDA.
    On February 7, 1995, the Subcommittee held a hearing on 
``1996-97 Foreign Relations Authorization: Department of State 
Management Initiatives.''
    Witness for this hearing included: Hon. Richard Moose--
UnderSecretary for Management, DOS.
    On February 8, 1995, the Subcommittee held a hearing on 
``1996-97 Foreign Relations Authorization: International 
Organizations, Conferences, and Committees.''
    Witnesses for this hearing included: Hon. Madeleine K. 
Albright, U.S. Representative to the UN Hon. Douglas J. Bennet, 
Ass. Sec. for Int'l Org., DOS.
    On February 22, 1995, the Subcommittee held a hearing on 
``Foreign Relations Authorization: Refugees.''
    Witnesses for this hearing included: Ambassador Brunson 
McKinley, Deputy Assistant Secretary of State for Population, 
Refugees, and Migration.
    On February 23, 1995, the Subcommittee held a hearing on 
``Foreign Relations Authorization Act: Arms Control and 
Disarmament Agency.''
    Witness for this hearing included: John Holum, Director 
ACDA.
    On March 1, 1995, the Subcommittee held a hearing on 
``Foreign Relations Authorization Act: USIA.''
    Witnesses for this hearing included: Joseph Duffey, 
Director, USIA Carl Gershman, President, NED.

                               DIVISION C

    The Full Committee held the following hearings on the 
fiscal year 1996 authorization requests for foreign assistance.
    On March 30, 1995, the Full Committee held a hearing on 
``The President's International Affairs Budget Request for FY 
96.''
    Witnesses for this hearing included: Secretary of State 
Warren Christopher, Administrator of the Agency for 
International Development J. Brian Atwood, and Director of the 
Defense Security Assistance Agency Lt. Gen. Thomas Rhame.
    On April 4, 1995, the Full Committee held a hearing on 
``The President's International Affairs Budget Request for FY 
96.''
    Witnesses for this hearing included: Steve Kull, Director, 
Program on International Policy Attitudes, Richard Armitage, 
President, Armitage Associates Tom Sheehy, Jay Kingham Fellow, 
Heritage Foundation and Ms. Linda Powers, Vice President, 
Global Finance, Enron Development Corporation.
    On April 5, 1995, the Full Committee held a hearing on 
``The President's International Affairs Budget Request for FY 
96.''
    Witnesses for this hearing included: Neal Sher, Executive 
Director, American-Israel Public Affairs Committee, John Fox, 
Director, Washington Office, Open Society Institute, Vivian 
Lowery-Derryck, President, Africa-American Institute, Victoria 
Markell, Director of Policy, Population Action International, 
Professor Julian Simon, University of Maryland, Ms. Frances 
Seymour, Senior Policy Officer, World Wildlife Fund, Julia 
Taft, President and CEO, InterAction, John Dellenback, Chairman 
of the Board, World Vision Relief and Development, Martin 
Fergus, District Coordinator for Bread for the World, Maria 
Otero, Executive Vice President, ACCION International, Hobart 
Gardiner, President, International Executive Services Corps, 
James Cox, Director, Project Finance, Westinghouse, and Sy 
Taubenblatt, Executive Representative, Bechtel Group, Inc.

                         JURISDICTIONAL ISSUES

    H.R. 1561, as ordered reported by the Committee on 
International Relations, contains several provisions which may 
fall within the shared jurisdiction of other committees of the 
House. Correspondence received from the Committees on National 
Security, on Government Reform and Oversight, and on 
Agriculture relevant to these jurisdictional issues is set 
forth below:

                     U.S. House of Representatives,
                            Committee on National Security,
                                      Washington, DC, May 17, 1995.
Hon. Benjamin A. Gilman,
Chairman, Committee on International Relations, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: I understand the Committee on 
International Relations has recently ordered reported H.R. 
1561, a bill related to foreign assistance programs for fiscal 
years 1996 and 1997. The bill includes a number of provisions 
that fall within the legislative jurisdiction of the Committee 
on National Security pursuant to House Rule X(k).
    The specific provisions within this committee's legislative 
jurisdiction are: (1) sec. 3123--Transfer of Excess Defense 
Articles; (2) sec. 3124--Nonlethal Excess Defense Articles for 
Albania; (3) sec. 3192--End-use Monitoring of Defense Articles 
and Defense Services; and (4) sec. 3309--Future of United 
States Military Presence in Panama.
    In recognition of your committee's desire to bring this 
legislation expeditiously before the House of Representatives, 
the Committee on National Security will not seek a sequential 
referral of the bill as a result of including these provisions, 
without, of course, waiving or diminishing this committee's 
jurisdiction over the provisions in question. This committee 
will seek to have conferees appointed for these provisions 
during any House-Senate conference.
    I would appreciate your including this letter as a part of 
the report on H.R. 1561 and as part of the record during 
consideration of this bill by the House.
    Thank you for your assistance and prompt attention to this 
matter.
    With warm personal regards, I am.
            Sincerely,
                                 Floyd D. Spence, Chairman.
                                ------                                

                                     U.S. Congress,
             Committee on Governnment Reform and Oversight,
                                      Washington, DC, May 17, 1995.
Hon. Benjamin A. Gilman,
Chairman, Committee on International Relations, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: As you know, H.R. 1561, which includes 
the Foreign Affairs Agencies Consolidation Act of 1995, 
consolidates the United States Information Agency, the Agency 
for International Development and the Arms Control and 
Disarmament Agency in the Department of State. This 
consolidation affects civil service employees, and the 
statutory offices of the inspector general and the chief 
financial officers, that exist within these agencies. Matters 
affecting the inspectors general, the chief financial officers, 
and the civil service fall within the jurisdiction of the 
Government Reform and Oversight Committee.
    The Government Reform and Oversight Committee staff has 
been working in consultation with your staff on the 
International Relations Committee to ensure that the personnel, 
inspectors general and chief financial officers issues raised 
by the consolidation are addressed as effectively as possible. 
Due to this cooperative arrangement and the need to expedite 
H.R. 1561, I will not assert the Government Reform and 
Oversight Committee's official jurisdiction over these matters 
as they relate to H.R. 1561. However, I hope our committees 
will continue to consult each other as appropriate throughout 
the legislative process.
    Please note that this in no way affects or cedes the 
Government Reform and Oversight Committee's jurisdiction under 
Rule X, nor does it affect the Committee's jurisdictional claim 
to civil service, inspector general or chief financial officer 
matters in the future.
    Thank you.
            Sincerely,
                         William F. Clinger, Jr., Chairman.
                                ------                                

                     U.S. House of Representatives,
                                  Committee on Agriculture,
                                      Washington, DC, May 19, 1995.
Hon. Benjamin A. Gilman,
Chairman, Committee on International Relations, Washington, DC.
    Dear Mr. Chairman: I wish to thank you and your staff for 
advising the Committee that you had reported H.R. 1561, as 
amended in Committee, that would among other things authorize 
appropriations for Title II of the Agricultural Trade 
Development and Assistance Act of 1954--P.L. 480 (7 U.S.C. 1721 
et seq.) for fiscal years 1996 and 1997. Also section 443(d) 
would transfer and reallocate fiscal year 1995 unexpended 
balances of appropriations (presumably including titles I, II 
and III of P.L. 480) from the Agency for International 
Development to the Department of State.
    The Committee on Agriculture recognizes the general 
importance of this legislation. Also, as you know as a 
Committee with jurisdiction over programs authorized in the 
Agricultural Trade Development and Assistance Act of 1954 (P.L. 
480) and other programs related to enhancing the food security 
of the developing countries of the world, this Committee has an 
interest in H.R. 1561, the ``American Overseas Interest Act of 
1995''. Moreover, the Committee is aware that the Senate 
Committee will apparently be acting on similar measures in the 
near future.
    The Committee on Agriculture in Title XV of the Food, 
Agriculture, Conservation and Trade Act of 1990 (7 U.S.C. 1691 
note) addressed several of these matters. Furthermore, the 
Committee expects to hold hearings and address several of these 
issues in the consideration of the 1995 Farm Bill later in this 
Session.
    However, in the interest of expediting the consideration of 
H.R. 1561, I do not intend to request a sequential referral of 
the bill to this Committee. However, I would appreciate 
receiving assurance that certain of the matters in the bill of 
concern to this Committee will be effected to our satisfaction 
without a Floor amendment by this Committee. Meanwhile, my 
action here is not intended to waive this Committee's 
jurisdiction over this matter, and should this legislation go 
to a House-Senate conference, the Committee on Agriculture 
reserves the right to request to be included as conferees on 
any provisions within this Committee's jurisdiction.
    Thank you for your cooperation in this matter.
            Sincerely,
                                     Pat Roberts, Chairman.

            Roll Call Votes on Amendments and Final Passage

    In compliance with clause (2)(l)(2)(B) of rule XI of the 
Rules of the House of Representatives, the record of committee 
roll call votes taken on final passage or amendments during the 
committee's consideration of H.R. 1561 is set out on the 
following pages, as is a report of the committee's final action 
on the bill.
     DESCRIPTION OF AMENDMENT, MOTION, ORDER, OR OTHER PROPOSITION

    Smith Amendment providing an earmark of $280 million from 
development assistance accounts child survival activities, $25 
million for the Vitamin A Deficiency program, and $15 million 
for the UNDP/WHO Special Program for Research and Training in 
Tropical Diseases.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,   ........        X   .........  Lee H. Hamilton, IN.....  ........        X   .........
 Chmn.                                                                                                          
William F. Goodling, PA.        X   ........  .........  Sam Gejdenson, CT.......  ........        X   .........
James A. Leach, IA......        X   ........  .........  Tom Lantos, CA..........  ........        X   .........
Toby Roth, WI...........        X   ........  .........  Robert G. Torricelli, NJ  ........  ........  .........
Henry J. Hyde, IL.......        X   ........  .........  Howard L. Berman, CA....  ........        X   .........
Doug Bereuter, NE.......        X   ........  .........  Gary L. Ackerman, NY....  ........        X   .........
Christopher H. Smith, NJ        X   ........  .........  Harry Johnston, FL......  ........  ........         X 
Dan Burton, IN..........        X   ........  .........  Eliot L. Engel, NY......  ........  ........         X 
Jan Meyers, KS..........  ........        X   .........  Eni F.H. Faleomavaega,    ........  ........         X 
                                                          Am. Samoa.                                            
Elton Gallegly, CA......        X   ........  .........  Matthew G. Martinez, CA.  ........  ........         X 
Ileana Ros-Lehtinen, FL.        X   ........  .........  Donald M. Payne, NJ.....  ........        X   .........
Cass Ballenger, NC......        X   ........  .........  Robert E. Andrews, NJ...        X   ........  .........
Dana Rohrabacher, CA....        X   ........  .........  Robert Menendez, NJ.....        X   ........  .........
Donald A. Manzullo, IL..        X   ........  .........  Sherrod Brown, OH.......  ........  ........         X 
Edward R. Royce, CA.....        X   ........  .........  Cynthia A. McKinney, GA.        X   ........  .........
Peter T. King, NY.......        X   ........  .........  Alcee L. Hastings, FL...  ........        X   .........
Jay Kim, CA.............  ........        X   .........  Albert Russell Wynn, MD.        X   ........  .........
Sam Brownback, KS.......        X   ........  .........  Michael R. McNulty, NY..        X   ........  .........
David Funderburk, NC....        X   ........  .........  James P. Moran, VA......        X   ........  .........
Steven J. Chabot, OH....        X   ........  .........  Victor O. Frazer, VI....        X   ........  .........
Marshall ``Mark''         ........        X   .........                                                         
 Sanford, SC.                                                                                                   
Matt Salmon, AZ.........        X   ........  .........                                                         
Amo Houghton, NY........  ........        X   .........                                                         
      Total.............  ........  ........  .........  ........................       25        12          5 
----------------------------------------------------------------------------------------------------------------

    Lantos Amendment prohibiting certain assistance from being 
provided to countries providing assistance relating to nuclear 
or dual-use technology or other military weapons to Iran or any 
other country which the Secretary of State has determined 
repeatedly provides support for acts of international 
terrorism.

----------------------------------------------------------------------------------------------------------------
       Name and State          Aye       No     Present         Name and State          Aye       No     Present
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,      .......        X  ........  Lee H. Hamilton, IN........  .......        X  ........
 Chmn.                                                                                                          
William F. Goodling, PA....        X  .......  ........  Sam Gejdenson, CT..........  .......        X  ........
James A. Leach, IA.........  .......  .......  ........  Tom Lantos, CA.............        X  .......  ........
Toby Roth, WI..............  .......        X  ........  Robert G. Torricelli, NJ...        X  .......  ........
Henry J. Hyde, IL..........  .......        X  ........  Howard L. Berman, CA.......        X  .......  ........
Doug Bereuter, NE..........  .......        X  ........  Gary L. Ackerman, NY.......        X  .......  ........
Christopher H. Smith, NJ...        X  .......  ........  Harry Johnston, FL.........  .......        X  ........
Dan Burton, IN.............        X  .......  ........  Eliot L. Engel, NY.........        X  .......  ........
Jan Meyers, KS.............        X  .......  ........  Eni F.H. Faleomavaega, Am.         X  .......  ........
                                                          Samoa.                                                
Elton Gallegly, CA.........        X  .......  ........  Matthew G. Martinez, CA....        X  .......  ........
Ileana Ros-Lehtinen, FL....        X  .......  ........  Donald M. Payne, NJ........  .......  .......  ........
Cass Ballenger, NC.........  .......        X  ........  Robert E. Andrews, NJ......        X  .......  ........
Dana Rohrabacher, CA.......        X  .......  ........  Robert Menendez, NJ........        X  .......  ........
Donald A. Manzullo, IL.....  .......        X  ........  Sherrod Brown, OH..........        X  .......  ........
Edward R. Royce, CA........        X  .......  ........  Cynthia A. McKinney, GA....        X  .......  ........
Peter T. King, NY..........        X  .......  ........  Alcee L. Hastings, FL......        X  .......  ........
Jay Kim, CA................        X  .......  ........  Albert Russell Wynn, MD....        X  .......  ........
Sam Brownback, KS..........  .......        X  ........  Michael R. McNulty, NY.....        X  .......  ........
David Funderburk, NC.......        X  .......  ........  James P. Moran, VA.........        X  .......  ........
Steven J. Chabot, OH.......        X  .......  ........  Victor O. Frazer, VI.......        X  .......  ........
Marshall ``Mark'' Sanford,   .......        X  ........                                                         
 SC.                                                                                                            
Matt Salmon, AZ............        X  .......  ........                                                         
Amo Houghton, NY...........  .......  .......  ........                                                         
      Total................  .......  .......  ........  ...........................       29       11         0
----------------------------------------------------------------------------------------------------------------

    Bereuter amendment deleting and restating certain 
provisions relative to China, a special envoy to Tibet, and for 
other purposes.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,   ........        X   .........  Lee H. Hamilton, IN.....        X   ........  .........
 Chmn.                                                                                                          
William F. Goodling, PA.  ........        X   .........  Sam Gejdenson, CT.......        X   ........  .........
James A. Leach, IA......        X   ........  .........  Tom Lantos, CA..........  ........  ........  .........
Toby Roth, WI...........  ........        X   .........  Robert G. Torricelli, NJ        X   ........  .........
Henry J. Hyde, IL.......  ........        X   .........  Howard L. Berman, CA....  ........  ........  .........
Doug Bereuter, NE.......        X   ........  .........  Gary L. Ackerman, NY....        X   ........  .........
Christopher H. Smith, NJ  ........        X   .........  Harry Johnston, FL......  ........  ........  .........
Dan Burton, IN..........  ........        X   .........  Eliot L. Engel, NY......  ........        X   .........
Jan Meyers, KS..........        X   ........  .........  Eni F.H. Faleomavaega,    ........  ........  .........
                                                          Am. Samoa.                                            
Elton Gallegly, CA......  ........        X   .........  Matthew G. Martinez, CA.        X   ........  .........
Ileana Ros-Lehtinen, FL.  ........        X   .........  Donald M. Payne, NJ.....        X   ........  .........
Cass Ballenger, NC......  ........        X   .........  Robert E. Andrews, NJ...        X   ........  .........
Dana Rohrabacher, CA....  ........        X   .........  Robert Menendez, NJ.....  ........        X   .........
Donald A. Manzullo, IL..  ........        X   .........  Sherrod Brown, OH.......  ........        X   .........
Edward R. Royce, CA.....  ........        X   .........  Cynthia A. McKinney, GA.  ........        X   .........
Peter T. King, NY.......  ........        X   .........  Alcee L. Hastings, FL...        X   ........  .........
Jay Kim, CA.............  ........        X   .........  Albert Russell Wynn, MD.        X   ........  .........
Sam Brownback, KS.......  ........        X   .........  Michael R. McNulty, NY..        X   ........  .........
David Funderburk, NC....  ........        X   .........  James P. Moran, VA......        X   ........  .........
Steven J. Chabot, OH....  ........        X   .........  Victor O. Frazer, VI....  ........  ........  .........
Marshall ``Mark''               X   ........  .........                                                         
 Sanford, SC.                                                                                                   
Matt Salmon, AZ.........  ........        X   .........                                                         
Amo Houghton, NY........        X   ........  .........                                                         
      Total.............  ........  ........  .........  ........................       16        22          0 
----------------------------------------------------------------------------------------------------------------

    McKinney amendment to require adherence to a ``code of 
conduct'' for arms transfers, restricting the countries to 
which arms could be sold and revising Congressional approval/
disapproval provisions of current law.

----------------------------------------------------------------------------------------------------------------
       Name and State          Aye       No     Present         Name and State          Aye       No     Present
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,      .......        X  ........  Lee H. Hamilton, IN........  .......        X  ........
 Chmn.                                                                                                          
William F. Goodling, PA....  .......        X  ........  Sam Gejdenson, CT..........  .......  .......  ........
James A. Leach, IA.........        X  .......  ........  Tom Lantos, CA.............        X  .......  ........
Toby Roth, WI..............  .......  .......  ........  Robert G. Torricelli, NJ...  .......  .......  ........
Henry J. Hyde, IL..........  .......  .......  ........  Howard L. Berman, CA.......        X  .......  ........
Doug Bereuter, NE..........  .......        X  ........  Gary L. Ackerman, NY.......        X  .......  ........
Christopher H. Smith, NJ...        X  .......  ........  Harry Johnston, FL.........        X  .......  ........
Dan Burton, IN.............  .......        X  ........  Eliot L. Engel, NY.........        X  .......  ........
Jan Meyers, KS.............  .......        X  ........  Eni F.H. Faleomavaega, Am.         X  .......  ........
                                                          Samoa.                                                
Elton Gallegly, CA.........  .......  .......  ........  Matthew G. Martinez, CA....  .......  .......  ........
Ileana Ros-Lehtinen, FL....  .......        X  ........  Donald M. Payne, NJ........        X  .......  ........
Cass Ballenger, NC.........  .......        X  ........  Robert E. Andrews, NJ......  .......  .......  ........
Dana Rohrabacher, CA.......        X  .......  ........  Robert Menendez, NJ........        X  .......  ........
Donald A. Manzullo, IL.....  .......        X  ........  Sherrod Brown, OH..........        X  .......  ........
Edward R. Royce, CA........  .......        X  ........  Cynthia A. McKinney, GA....        X  .......  ........
Peter T. King, NY..........  .......        X  ........  Alcee L. Hastings, FL......        X  .......  ........
Jay Kim, CA................  .......  .......  ........  Albert Russell Wynn, MD....        X  .......  ........
Sam Brownback, KS..........  .......        X  ........  Michael R. McNulty, NY.....  .......        X  ........
David Funderburk, NC.......  .......        X  ........  James P. Moran, VA.........        X  .......  ........
Steven J. Chabot, OH.......  .......        X  ........  Victor O. Frazer, VI.......        X  .......  ........
Marshall ``Mark'' Sanford,   .......        X  ........                                                         
 SC.                                                                                                            
Matt Salmon, AZ............  .......        X  ........                                                         
Amo Houghton, NY...........  .......        X  ........                                                         
      Total................  .......  .......  ........  ...........................       17       18         0
----------------------------------------------------------------------------------------------------------------

    Meyers amendment loosening restrictions on US contributions 
to the UN Fund for Population Activities, and striking language 
relating to prohibition on funding for abortion and to 
prohibition on funding for coercive population control methods, 
and making other changes.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,         X   ........  .........  Lee H. Hamilton, IN.....        X   ........  .........
 Chmn.                                                                                                          
William F. Goodling, PA.  ........  ........  .........  Sam Gejdenson, CT.......        X   ........  .........
James A. Leach, IA......        X   ........  .........  Tom Lantos, CA..........        X   ........  .........
Toby Roth, WI...........  ........        X   .........  Robert G. Torricelli, NJ  ........  ........  .........
Henry J. Hyde, IL.......  ........        X   .........  Howard L. Berman, CA....        X   ........  .........
Doug Bereuter, NE.......  ........        X   .........  Gary L. Ackerman, NY....        X   ........  .........
Christopher H. Smith, NJ  ........        X   .........  Harry Johnston, FL......        X   ........  .........
Dan Burton, IN..........  ........        X   .........  Eliot L. Engel, NY......        X   ........  .........
Jan Meyers, KS..........        X   ........  .........  Eni F.H. Faleomavaega,    ........  ........  .........
                                                          Am. Samoa.                                            
Elton Gallegly, CA......  ........        X   .........  Matthew G. Martinez, CA.        X   ........  .........
Ileana Ros-Lehtinen, FL.  ........        X   .........  Donald M. Payne, NJ.....  ........  ........  .........
Cass Ballenger, NC......  ........        X   .........  Robert E. Andrews, NJ...        X   ........  .........
Dana Rohrabacher, CA....  ........        X   .........  Robert Menendez, NJ.....        X   ........  .........
Donald A. Manzullo, IL..  ........        X   .........  Sherrod Brown, OH.......        X   ........  .........
Edward R. Royce, CA.....  ........        X   .........  Cynthia A. McKinney, GA.        X   ........  .........
Peter T. King, NY.......  ........        X   .........  Alcee L. Hastings, FL...        X   ........  .........
Jay Kim, CA.............  ........        X   .........  Albert Russell Wynn, MD.        X   ........  .........
Sam Brownback, KS.......  ........        X   .........  Michael R. McNulty, NY..  ........        X   .........
David Funderburk, NC....  ........        X   .........  James P. Moran, VA......        X   ........  .........
Steven J. Chabot, OH....  ........        X   .........  Victor O. Frazer, VI....        X   ........  .........
Marshall ``Mark''               X   ........  .........                                                         
 Sanford, SC.                                                                                                   
Matt Salmon, AZ.........  ........        X   .........                                                         
Amo Houghton, NY........        X   ........  .........                                                         
      Total.............  ........  ........  .........  ........................       21        18          0 
----------------------------------------------------------------------------------------------------------------

    Wynn amendment transferring $12 million from the 
Contributions to International Organizations account to more 
fully fund the debt buyback program, and to earmark such funds 
for Latin America and the Caribbean.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,   ........        X   .........  Lee H. Hamilton, IN.....        X   ........  .........
 Chmn.                                                                                                          
William F. Goodling, PA.  ........        X   .........  Sam Gejdenson, CT.......        X   ........  .........
James A. Leach, IA......  ........        X   .........  Tom Lantos, CA..........  ........  ........  .........
Toby Roth, WI...........  ........        X   .........  Robert G. Torricelli, NJ        X   ........  .........
Henry J. Hyde, IL.......  ........  ........  .........  Howard L. Berman, CA....        X   ........  .........
Doug Bereuter, NE.......  ........        X   .........  Gary L. Ackerman, NY....        X   ........  .........
Christopher H. Smith, NJ  ........        X   .........  Harry Johnston, FL......        X   ........  .........
Dan Burton, IN..........  ........        X   .........  Eliot L. Engel, NY......  ........  ........  .........
Jan Meyers, KS..........  ........        X   .........  Eni F.H. Faleomavaega,          X   ........  .........
                                                          Am. Samoa.                                            
Elton Gallegly, CA......  ........        X   .........  Matthew G. Martinez, CA.  ........  ........  .........
Ileana Ros-Lehtinen, FL.  ........        X   .........  Donald M. Payne, NJ.....  ........  ........  .........
Cass Ballenger, NC......  ........        X   .........  Robert E. Andrews, NJ...        X   ........  .........
Dana Rohrabacher, CA....  ........        X   .........  Robert Menendez, NJ.....        X   ........  .........
Donald A. Manzullo, IL..  ........        X   .........  Sherrod Brown, OH.......        X   ........  .........
Edward R. Royce, CA.....  ........        X   .........  Cynthia A. McKinney, GA.        X   ........  .........
Peter T. King, NY.......  ........        X   .........  Alcee L. Hastings, FL...        X   ........  .........
Jay Kim, CA.............  ........        X   .........  Albert Russell Wynn, MD.        X   ........  .........
Sam Brownback, KS.......  ........        X   .........  Michael R. McNulty, NY..        X   ........  .........
David Funderburk, NC....  ........        X   .........  James P. Moran, VA......  ........  ........  .........
Steven J. Chabot, OH....  ........        X   .........  Victor O. Frazer, VI....  ........  ........  .........
Marshall ``Mark''         ........        X   .........                                                         
 Sanford, SC.                                                                                                   
Matt Salmon, AZ.........  ........        X   .........                                                         
Amo Houghton, NY........  ........        X   .........                                                         
      Total.............  ........  ........  .........  ........................       14        22          0 
----------------------------------------------------------------------------------------------------------------

    Brownback amendment to cut authorizations for United States 
informational, educational, and cultural programs.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,   ........        X   .........  Lee H. Hamilton, IN.....  ........        X   .........
 Chmn.                                                                                                          
William F. Goodling, PA.  ........        X   .........  Sam Gejdenson, CT.......  ........        X   .........
James A. Leach, IA......  ........        X   .........  Tom Lantos, CA..........  ........  ........  .........
Toby Roth, WI...........        X   ........  .........  Robert G. Torricelli, NJ  ........  ........  .........
Henry J. Hyde, IL.......  ........        X   .........  Howard L. Berman, CA....  ........        X   .........
Doug Bereuter, NE.......  ........        X   .........  Gary L. Ackerman, NY....  ........        X   .........
Christopher H. Smith, NJ  ........        X   .........  Harry Johnston, FL......  ........        X   .........
Dan Burton, IN..........        X   ........  .........  Eliot L. Engel, NY......  ........        X   .........
Jan Meyers, KS..........  ........        X   .........  Eni F.H. Faleomavaega,    ........        X   .........
                                                          Am. Samoa.                                            
Elton Gallegly, CA......  ........  ........  .........  Matthew G. Martinez, CA.  ........        X   .........
Ileana Ros-Lehtinen, FL.  ........        X   .........  Donald M. Payne, NJ.....  ........        X   .........
Cass Ballenger, NC......  ........        X   .........  Robert E. Andrews, NJ...        X   ........  .........
Dana Rohrabacher, CA....        X   ........  .........  Robert Menendez, NJ.....  ........        X   .........
Donald A. Manzullo, IL..        X   ........  .........  Sherrod Brown, OH.......  ........        X   .........
Edward R. Royce, CA.....        X   ........  .........  Cynthia A. McKinney, GA.  ........        X   .........
Peter T. King, NY.......  ........        X   .........  Alcee L. Hastings, FL...  ........        X   .........
Jay Kim, CA.............  ........  ........  .........  Albert Russell Wynn, MD.  ........        X   .........
Sam Brownback, KS.......        X   ........  .........  Michael R. McNulty, NY..  ........        X   .........
David Funderburk, NC....  ........  ........  .........  James P. Moran, VA......  ........        X   .........
Steven J. Chabot, OH....        X   ........  .........  Victor O. Frazer, VI....  ........        X   .........
Marshall ``Mark''               X   ........  .........                                                         
 Sanford, SC.                                                                                                   
Matt Salmon, AZ.........        X   ........  .........                                                         
Amo Houghton, NY........  ........        X   .........                                                         
      Total.............  ........  ........  .........  ........................       10        28          0 
----------------------------------------------------------------------------------------------------------------

    Berman/Sanford amendment requiring recoupment of certain 
nonrecurring costs in connection with certain exports of major 
defense equipment.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,   ........        X   .........  Lee H. Hamilton, IN.....  ........        X   .........
 Chmn.                                                                                                          
William F. Goodling, PA.  ........        X   .........  Sam Gejdenson, CT.......  ........  ........  .........
James A. Leach, IA......  ........  ........  .........  Tom Lantos, CA..........        X   ........  .........
Toby Roth, WI...........  ........        X   .........  Robert G. Torricelli, NJ  ........  ........  .........
Henry J. Hyde, IL.......  ........  ........  .........  Howard L. Berman, CA....        X   ........  .........
Doug Bereuter, NE.......  ........        X   .........  Gary L. Ackerman, NY....        X   ........  .........
Christopher H. Smith, NJ        X   ........  .........  Harry Johnston, FL......        X   ........  .........
Dan Burton, IN..........  ........        X   .........  Eliot L. Engel, NY......        X   ........  .........
Jan Meyers, KS..........  ........        X   .........  Eni F.H. Faleomavaega,          X   ........  .........
                                                          Am. Samoa.                                            
Elton Gallegly, CA......  ........        X   .........  Matthew G. Martinez, CA.        X   ........  .........
Ileana Ros-Lehtinen, FL.  ........        X   .........  Donald M. Payne, NJ.....        X   ........  .........
Cass Ballenger, NC......  ........        X   .........  Robert E. Andrews, NJ...        X   ........  .........
Dana Rohrabacher, CA....  ........        X   .........  Robert Menendez, NJ.....        X   ........  .........
Donald A. Manzullo, IL..  ........        X   .........  Sherrod Brown, OH.......        X   ........  .........
Edward R. Royce, CA.....  ........        X   .........  Cynthia A. McKinney, GA.        X   ........  .........
Peter T. King, NY.......  ........        X   .........  Alcee L. Hastings, FL...        X   ........  .........
Jay Kim, CA.............  ........        X   .........  Albert Russell Wynn, MD.        X   ........  .........
Sam Brownback, KS.......  ........        X   .........  Michael R. McNulty, NY..  ........  ........  .........
David Funderburk, NC....  ........        X   .........  James P. Moran, VA......        X   ........  .........
Steven J. Chabot, OH....  ........        X   .........  Victor O. Frazer, VI....        X   ........  .........
Marshall ``Mark''               X   ........  .........                                                         
 Sanford, SC.                                                                                                   
Matt Salmon, AZ.........  ........        X   .........                                                         
Amo Houghton, NY........  ........        X   .........                                                         
      Total.............  ........  ........  .........  ........................       18        20          0 
----------------------------------------------------------------------------------------------------------------

    Burton amendment to reduce authorizations for AID operating 
expenses.

----------------------------------------------------------------------------------------------------------------
       Name and State          Aye       No     Present         Name and State          Aye       No     Present
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,      .......        X  ........  Lee H. Hamilton, IN........  .......        X  ........
 Chmn.                                                                                                          
William F. Goodling, PA....        X  .......  ........  Sam Gejdenson, CT..........  .......  .......  ........
James A. Leach, IA.........  .......  .......  ........  Tom Lantos, CA.............  .......        X  ........
Toby Roth, WI..............        X  .......  ........  Robert G. Torricelli, NJ...  .......  .......  ........
Henry J. Hyde, IL..........  .......  .......  ........  Howard L. Berman, CA.......  .......        X  ........
Doug Bereuter, NE..........  .......  .......  ........  Gary L. Ackerman, NY.......  .......        X  ........
Christopher H. Smith, NJ...  .......  .......  ........  Harry Johnston, FL.........  .......        X  ........
Dan Burton, IN.............        X  .......  ........  Eliot L. Engel, NY.........  .......        X  ........
Jan Meyers, KS.............  .......        X  ........  Eni F.H. Faleomavaega, Am.   .......        X  ........
                                                          Samoa.                                                
Elton Gallegly, CA.........        X  .......  ........  Matthew G. Martinez, CA....  .......  .......  ........
Ileana Ros-Lehtinen, FL....        X  .......  ........  Donald M. Payne, NJ........  .......        X  ........
Cass Ballenger, NC.........        X  .......  ........  Robert E. Andrews, NJ......  .......        X  ........
Dana Rohrabacher, CA.......        X  .......  ........  Robert Menendez, NJ........  .......        X  ........
Donald A. Manzullo, IL.....        X  .......  ........  Sherrod Brown, OH..........  .......        X  ........
Edward R. Royce, CA........        X  .......  ........  Cynthia A. McKinney, GA....  .......        X  ........
Peter T. King, NY..........  .......        X  ........  Alcee L. Hastings, FL......  .......        X  ........
Jay Kim, CA................  .......        X  ........  Albert Russell Wynn, MD....  .......        X  ........
Sam Brownback, KS..........        X  .......  ........  Michael R. McNulty, NY.....  .......  .......  ........
David Funderburk, NC.......        X  .......  ........  James P. Moran, VA.........  .......        X  ........
Steven J. Chabot, OH.......        X  .......  ........  Victor O. Frazer, VI.......  .......        X  ........
Marshall ``Mark'' Sanford,         X  .......  ........                                                         
 SC.                                                                                                            
Matt Salmon, AZ............        X  .......  ........                                                         
Amo Houghton, NY...........  .......        X  ........                                                         
      Total................  .......  .......  ........  ...........................       14       21         0
----------------------------------------------------------------------------------------------------------------

    Hastings amendment to increase authorizations for the 
Development Fund for Africa from $572.2 million to $802 
million.

----------------------------------------------------------------------------------------------------------------
       Name and State          Aye       No     Present         Name and State          Aye       No     Present
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,      .......        X  ........  Lee H. Hamilton, IN........        X  .......  ........
 Chmn.                                                                                                          
William F. Goodling, PA....  .......        X  ........  Sam Gejdenson, CT..........  .......  .......  ........
James A. Leach, IA.........  .......        X  ........  Tom Lantos, CA.............        X  .......  ........
Toby Roth, WI..............  .......        X  ........  Robert G. Torricelli, NJ...        X  .......  ........
Henry J. Hyde, IL..........  .......        X  ........  Howard L. Berman, CA.......        X  .......  ........
Doug Bereuter, NE..........  .......  .......  ........  Gary L. Ackerman, NY.......        X  .......  ........
Christopher H. Smith, NJ...  .......        X  ........  Harry Johnston, FL.........        X  .......  ........
Dan Burton, IN.............  .......        X  ........  Eliot L. Engel, NY.........        X  .......  ........
Jan Meyers, KS.............  .......        X  ........  Eni F.H. Faleomavaega, Am.   .......  .......  ........
                                                          Samoa.                                                
Elton Gallegly, CA.........  .......        X  ........  Matthew G. Martinez, CA....        X  .......  ........
Ileana Ros-Lehtinen, FL....  .......        X  ........  Donald M. Payne, NJ........        X  .......  ........
Cass Ballenger, NC.........  .......        X  ........  Robert E. Andrews, NJ......        X  .......  ........
Dana Rohrabacher, CA.......  .......        X  ........  Robert Menendez, NJ........        X  .......  ........
Donald A. Manzullo, IL.....  .......        X  ........  Sherrod Brown, OH..........        X  .......  ........
Edward R. Royce, CA........  .......        X  ........  Cynthia A. McKinney, GA....        X  .......  ........
Peter T. King, NY..........  .......        X  ........  Alcee L. Hastings, FL......        X  .......  ........
Jay Kim, CA................  .......        X  ........  Albert Russell Wynn, MD....        X  .......  ........
Sam Brownback, KS..........  .......        X  ........  Michael R. McNulty, NY.....        X  .......  ........
David Funderburk, NC.......  .......        X  ........  James P. Moran, VA.........        X  .......  ........
Steven J. Chabot, OH.......  .......        X  ........  Victor O. Frazer, VI.......        X  .......  ........
Marshall ``Mark'' Sanford,   .......        X  ........                                                         
 SC.                                                                                                            
Matt Salmon, AZ............  .......        X  ........                                                         
Amo Houghton, NY...........  .......        X  ........                                                         
      Total................  .......  .......  ........  ...........................       18       22         O
----------------------------------------------------------------------------------------------------------------

    Ackerman amendment to reduce funds for the Foreign Military 
Financing program from $3.309 billion to $3.272 billion, and to 
provide $36 million in additional funds for Africa.

----------------------------------------------------------------------------------------------------------------
       Name and State          Aye       No     Present         Name and State          Aye       No     Present
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,      .......        X  ........  Lee H. Hamilton, IN........        X  .......  ........
 Chmn.                                                                                                          
William F. Goodling, PA....  .......        X  ........  Sam Gejdenson, CT..........  .......  .......  ........
James A. Leach, IA.........  .......  .......  ........  Tom Lantos, CA.............        X  .......  ........
Toby Roth, WI..............  .......        X  ........  Robert G. Torricelli, NJ...        X  .......  ........
Henry J. Hyde, IL..........  .......        X  ........  Howard L. Berman, CA.......        X  .......  ........
Doug Bereuter, NE..........  .......  .......  ........  Gary L. Ackerman, NY.......        X  .......  ........
Christopher H. Smith, NJ...  .......        X  ........  Harry Johnston, FL.........        X  .......  ........
Dan Burton, IN.............  .......        X  ........  Eliot L. Engel, NY.........        X  .......  ........
Jan Meyers, KS.............  .......        X  ........  Eni F.H. Faleomavaega, Am.   .......  .......  ........
                                                          Samoa.                                                
Elton Gallegly, CA.........  .......        X  ........  Matthew G. Martinez, CA....        X  .......  ........
Ileana Ros-Lehtinen, FL....  .......        X  ........  Donald M. Payne, NJ........        X  .......  ........
Cass Ballenger, NC.........  .......        X  ........  Robert E. Andrews, NJ......        X  .......  ........
Dana Rohrabacher, CA.......  .......        X  ........  Robert Menendez, NJ........        X  .......  ........
Donald A. Manzullo, IL.....  .......        X  ........  Sherrod Brown, OH..........        X  .......  ........
Edward R. Royce, CA........  .......        X  ........  Cynthia A. McKinney, GA....        X  .......  ........
Peter T. King, NY..........  .......        X  ........  Alcee L. Hastings, FL......        X  .......  ........
Jay Kim, CA................  .......        X  ........  Albert Russell Wynn, MD....        X  .......  ........
Sam Brownback, KS..........  .......        X  ........  Michael R. McNulty, NY.....        X  .......  ........
David Funderburk, NC.......  .......        X  ........  James P. Moran, VA.........        X  .......  ........
Steven J. Chabot, OH.......        X  .......  ........  Victor O. Frazer, VI.......        X  .......  ........
Marshall ``Mark'' Sanford,   .......        X  ........                                                         
 SC.                                                                                                            
Matt Salmon, AZ............  .......        X  ........                                                         
Amo Houghton, NY...........  .......        X  ........                                                         
      Total................  .......  .......  ........  ...........................       19       20         0
----------------------------------------------------------------------------------------------------------------

    Manzullo amendment to strike all funding for United States 
informational, educational, and cultural exchange programs.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,   ........        X   .........  Lee H. Hamilton, IN.....  ........        X   .........
 Chmn.                                                                                                          
William F. Goodling, PA.  ........  ........  .........  Sam Gejdenson, CT.......  ........  ........  .........
James A. Leach, IA......  ........  ........  .........  Tom Lantos, CA..........  ........        X   .........
Toby Roth, WI...........  ........        X   .........  Robert G. Torricelli, NJ  ........        X   .........
Henry J. Hyde, IL.......  ........        X   .........  Howard L. Berman, CA....  ........        X   .........
Doug Bereuter, NE.......  ........        X   .........  Gary L. Ackerman, NY....  ........        X   .........
Christopher H. Smith, NJ  ........        X   .........  Harry Johnston, FL......  ........        X   .........
Dan Burton, IN..........        X   ........  .........  Eliot L. Engel, NY......  ........        X   .........
Jan Meyers, KS..........  ........        X   .........  Eni F.H. Faleomavaega,    ........  ........  .........
                                                          Am. Samoa.                                            
Elton Gallegly, CA......  ........        X   .........  Matthew G. Martinez, CA.  ........        X   .........
Ileana Ros-Lehtinen, FL.        X   ........  .........  Donald M. Payne, NJ.....  ........        X   .........
Cass Ballenger, NC......  ........        X   .........  Robert E. Andrews, NJ...  ........        X   .........
Dana Rohrabacher, CA....        X   ........  .........  Robert Menendez, NJ.....  ........        X   .........
Donald A. Manzullo, IL..        X   ........  .........  Sherrod Brown, OH.......  ........        X   .........
Edward R. Royce, CA.....        X   ........  .........  Cynthia A. McKinney, GA.  ........        X   .........
Peter T. King, NY.......  ........        X   .........  Alcee L. Hastings, FL...  ........        X   .........
Jay Kim, CA.............        X   ........  .........  Albert Russell Wynn, MD.  ........        X   .........
Sam Brownback, KS.......        X   ........  .........  Michael R. McNulty, NY..        X   ........  .........
David Funderburk, NC....  ........        X   .........  James P. Moran, VA......  ........        X   .........
Steven J. Chabot, OH....        X   ........  .........  Victor O. Frazer, VI....  ........        X   .........
Marshall ``Mark''         ........        X   .........                                                         
 Sanford, SC.                                                                                                   
Matt Salmon, AZ.........        X   ........  .........                                                         
Amo Houghton, NY........  ........        X   .........                                                         
      Total.............  ........  ........  .........  ........................       10        29          0 
----------------------------------------------------------------------------------------------------------------

    Bereuter amendment to limit United States contributions to 
the International War Crimes Tribunal for the Former Yugoslavia 
to the lesser of $15 million or 25 percent of its budget, 
whichever is less.

----------------------------------------------------------------------------------------------------------------
       Name and State          Aye       No     Present         Name and State          Aye       No     Present
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,            X  .......  ........  Lee H. Hamilton, IN........        X  .......  ........
 Chmn.                                                                                                          
William F. Goodling, PA....        X  .......  ........  Sam Gejdenson, CT..........  .......  .......  ........
James A. Leach, IA.........  .......        X  ........  Tom Lantos, CA.............        X  .......  ........
Toby Roth, WI..............        X  .......  ........  Robert G. Torricelli, NJ...  .......  .......  ........
Henry J. Hyde, IL..........  .......  .......  ........  Howard L. Berman, CA.......        X  .......  ........
Doug Bereuter, NE..........        X  .......  ........  Gary L. Ackerman, NY.......        X  .......  ........
Christopher H. Smith, NJ...  .......        X  ........  Harry Johnston, FL.........        X  .......  ........
Dan Burton, IN.............        X  .......  ........  Eliot L. Engel, NY.........  .......        X  ........
Jan Meyers, KS.............        X  .......  ........  Eni F.H. Faleomavaega, Am.   .......  .......  ........
                                                          Samoa.                                                
Elton Gallegly, CA.........        X  .......  ........  Matthew G. Martinez, CA....        X  .......  ........
Ileana Ros-Lehtinen, FL....        X  .......  ........  Donald M. Payne, NJ........  .......  .......  ........
Cass Ballenger, NC.........  .......  .......  ........  Robert E. Andrews, NJ......        X  .......  ........
Dana Rohrabacher, CA.......        X  .......  ........  Robert Menendez, NJ........        X  .......  ........
Donald A. Manzullo, IL.....        X  .......  ........  Sherrod Brown, OH..........        X  .......  ........
Edward R. Royce, CA........  .......  .......  ........  Cynthia A. McKinney, GA....        X  .......  ........
Peter T. King, NY..........  .......        X  ........  Alcee L. Hastings, FL......        X  .......  ........
Jay Kim, CA................        X  .......  ........  Albert Russell Wynn, MD....        X  .......  ........
Sam Brownback, KS..........        X  .......  ........  Michael R. McNulty, NY.....        X  .......  ........
David Funderburk, NC.......  .......        X  ........  James P. Moran, VA.........        X  .......  ........
Steven J. Chabot, OH.......        X  .......  ........  Victor O. Frazer, VI.......  .......  .......  ........
Marshall ``Mark'' Sanford,         X  .......  ........                                                         
 SC.                                                                                                            
Matt Salmon, AZ............  .......        X  ........                                                         
Amo Houghton, NY...........        X  .......  ........                                                         
      Total................  .......  .......  ........  ...........................       29        6         O
----------------------------------------------------------------------------------------------------------------



----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,   ........        X   .........  Lee H. Hamilton, IN.....  ........        X   .........
 Chmn.                                                                                                          
William F. Goodling, PA.  ........  ........  .........  Sam Gejdenson, CT.......  ........  ........  .........
James A. Leach, IA......  ........  ........  .........  Tom Lantos, CA..........  ........        X   .........
Toby Roth, WI...........  ........  ........  .........  Robert G. Torricelli, NJ  ........  ........  .........
Henry J. Hyde, IL.......  ........  ........  .........  Howard L. Berman, CA....  ........        X   .........
Doug Bereuter, NE.......  ........        X   .........  Gary L. Ackerman, NY....  ........        X   .........
Christopher H. Smith, NJ        X   ........  .........  Harry Johnston, FL......  ........        X   .........
Dan Burton, IN..........  ........        X   .........  Eliot L. Engel, NY......        X   ........  .........
Jan Meyers, KS..........  ........        X   .........  Eni F.H. Faleomavaega,    ........  ........  .........
                                                          Am. Samoa.                                            
Elton Gallegly, CA......  ........        X   .........  Matthew G. Martinez, CA.  ........  ........  .........
Ileana Ros-Lehtinen, FL.        X   ........  .........  Donald M. Payne, NJ.....  ........  ........  .........
Cass Ballenger, NC......  ........  ........  .........  Robert E. Andrews, NJ...        X   ........  .........
Dana Rohrabacher, CA....  ........        X   .........  Robert Menendez, NJ.....        X   ........  .........
Donald A. Manzullo, IL..  ........        X   .........  Sherrod Brown, OH.......        X   ........  .........
Edward R. Royce, CA.....  ........        X   .........  Cynthia A. McKinney, GA.        X   ........  .........
Peter T. King, NY.......  ........        X   .........  Alcee L. Hastings, FL...  ........        X   .........
Jay Kim, CA.............  ........        X   .........  Albert Russell Wynn, MD.  ........        X   .........
Sam Brownback, KS.......  ........        X   .........  Michael R. McNulty, NY..        X   ........  .........
David Funderburk, NC....  ........        X   .........  James P. Moran, VA......        X   ........  .........
Steven J. Chabot, OH....  ........        X   .........  Victor O. Frazer, VI....  ........  ........  .........
Marshall ``Mark''         ........        X   .........  ........................  ........  ........           
 Sanford, SC.                                                                                                   
Matt Salmon, AZ.........  ........        X   .........  ........................  ........  ........  .........
Amo Houghton, NY........  ........        X   .........  ........................  ........  ........  .........
      Total.............  ........  ........  .........  ........................        9        23          0 
----------------------------------------------------------------------------------------------------------------

    Smith amendment restricting United States assistance to 
countries blocking the delivery of United States humanitarian 
assistance.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,         X   ........  .........  Lee H. Hamilton, IN.....  ........        X   .........
 Chmn.                                                                                                          
William F. Goodling, PA.  ........  ........  .........  Sam Gejdenson, CT.......  ........  ........  .........
James A. Leach, IA......  ........  ........  .........  Tom Lantos, CA..........  ........        X   .........
Toby Roth, WI...........  ........        X   .........  Robert G. Torricelli, NJ        X   ........  .........
Henry J. Hyde, IL.......  ........  ........  .........  Howard L. Berman, CA....        X   ........  .........
Doug Bereuter, NE.......  ........        X   .........  Gary L. Ackerman, NY....  ........  ........  .........
Christopher H. Smith, NJ        X   ........  .........  Harry Johnston, FL......  ........        X   .........
Dan Burton, IN..........  ........        X   .........  Eliot L. Engel, NY......        X   ........  .........
Jan Meyers, KS..........        X   ........  .........  Eni F.H. Faleomavaega,    ........  ........  .........
                                                          Am. Samoa.                                            
Elton Gallegly, CA......        X   ........  .........  Matthew G. Martinez, CA.        X   ........  .........
Ileana Ros-Lehtinen, FL.        X   ........  .........  Donald M. Payne, NJ.....  ........  ........  .........
Cass Ballenger, NC......  ........  ........  .........  Robert E. Andrews, NJ...  ........  ........  .........
Dana Rohrabacher, CA....        X   ........  .........  Robert Menendez, NJ.....        X   ........  .........
Donald A. Manzullo, IL..        X   ........  .........  Sherrod Brown, OH.......        X   ........  .........
Edward R. Royce, CA.....        X   ........  .........  Cynthia A. McKinney, GA.        X   ........  .........
Peter T. King, NY.......        X   ........  .........  Alcee L. Hastings, FL...        X   ........  .........
Jay Kim, CA.............        X   ........  .........  Albert Russell Wynn, MD.        X   ........  .........
Sam Brownback, KS.......        X   ........  .........  Michael R. McNulty, NY..        X   ........  .........
David Funderburk, NC....        X   ........  .........  James P. Moran, VA......        X   ........  .........
Steven J. Chabot, OH....        X   ........  .........  Victor O. Frazer, VI....        X   ........  .........
Marshall ``Mark''               X   ........  .........                                                         
 Sanford, SC.                                                                                                   
Matt Salmon, AZ.........        X   ........  .........                                                         
Amo Houghton, NY........  ........        X   .........                                                         
      Total.............  ........  ........  .........  ........................       27         7          0 
----------------------------------------------------------------------------------------------------------------

    Hamilton amendment eliminating funding for the Foreign 
Military Financing programs for countries in Central Europe and 
transferring $25 million for the Newly Independent States and 
$25 million for the SEED program.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,   ........        X   .........  Lee H. Hamilton, IN.....        X   ........  .........
 Chmn.                                                                                                          
William F. Goodling, PA.  ........        X   .........  Sam Gejdenson, CT.......        X   ........  .........
James A. Leach, IA......        X   ........  .........  Tom Lantos, CA..........        X   ........  .........
Toby Roth, WI...........  ........        X   .........  Robert G. Torricelli, NJ  ........  ........  .........
Henry J. Hyde, IL.......  ........  ........  .........  Howard L. Berman, CA....  ........  ........  .........
Doug Bereuter, NE.......        X   ........  .........  Gary L. Ackerman, NY....        X   ........  .........
Christopher H. Smith, NJ  ........        X   .........  Harry Johnston, FL......        X   ........  .........
Dan Burton, IN..........  ........        X   .........  Eliot L. Engel, NY......        X   ........  .........
Jan Meyers, KS..........  ........        X   .........  Eni F.H. Faleomavaega,    ........  ........  .........
                                                          Am. Samoa.                                            
Elton Gallegly, CA......  ........        X   .........  Matthew G. Martinez, CA.        X   ........  .........
Ileana Ros-Lehtinen, FL.  ........        X   .........  Donald M. Payne, NJ.....        X   ........  .........
Cass Ballenger, NC......  ........  ........  .........  Robert E. Andrews, NJ...        X   ........  .........
Dana Rohrabacher, CA....        X   ........  .........  Robert Menendez, NJ.....        X   ........  .........
Donald A. Manzullo, IL..  ........        X   .........  Sherrod Brown, OH.......        X   ........  .........
Edward R. Royce, CA.....        X   ........  .........  Cynthia A. McKinney, GA.  ........  ........  .........
Peter T. King, NY.......  ........        X   .........  Alcee L. Hastings, FL...        X   ........  .........
Jay Kim, CA.............  ........        X   .........  Albert Russell Wynn, MD.        X   ........  .........
Sam Brownback, KS.......        X   ........  .........  Michael R. McNulty, NY..        X   ........  .........
David Funderburk, NC....        X   ........  .........  James P. Moran, VA......        X   ........  .........
Steven J. Chabot, OH....  ........        X   .........  Victor O. Frazer, VI....        X   ........  .........
Marshall ``Mark''         ........  ........  .........                                                         
 Sanford, SC.                                                                                                   
Matt Salmon, AZ.........        X   ........  .........                                                         
Amo Houghton, NY........  ........        X   .........                                                         
      Total.............  ........  ........  .........  ........................       23        13          0 
----------------------------------------------------------------------------------------------------------------

    Meyers amendment relaxing language conditioning the 
provision of certain funds to the State Department on access by 
certain groups to the Beijing Women's Conference.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,         X   ........  .........  Lee H. Hamilton, IN.....        X   ........  .........
 Chmn.                                                                                                          
William F. Goodling, PA.  ........        X   .........  Sam Gejdenson, CT.......        X   ........  .........
James A. Leach, IA......        X   ........  .........  Tom Lantos, CA..........        X   ........  .........
Toby Roth, WI...........  ........        X   .........  Robert G. Torricelli, NJ        X   ........  .........
Henry J. Hyde, IL.......  ........  ........  .........  Howard L. Berman, CA....  ........  ........  .........
Doug Bereuter, NE.......        X   ........  .........  Gary L. Ackerman, NY....        X   ........  .........
Christopher H. Smith, NJ  ........        X   .........  Harry Johnston, FL......        X   ........  .........
Dan Burton, IN..........  ........        X   .........  Eliot L. Engel, NY......        X   ........  .........
Jan Meyers, KS..........        X   ........  .........  Eni F.H. Faleomavaega,    ........  ........  .........
                                                          Am. Samoa.                                            
Elton Gallegly, CA......  ........        X   .........  Matthew G. Martinez, CA.        X   ........  .........
Ileana Ros-Lehtinen, FL.  ........        X   .........  Donald M. Payne, NJ.....        X   ........  .........
Cass Ballenger, NC......  ........  ........  .........  Robert E. Andrews, NJ...        X   ........  .........
Dana Rohrabacher, CA....  ........        X   .........  Robert Menendez, NJ.....  ........        X   .........
Donald A. Manzullo, IL..  ........        X   .........  Sherrod Brown, OH.......        X   ........  .........
Edward R. Royce, CA.....  ........        X   .........  Cynthia A. McKinney, GA.        X   ........  .........
Peter T. King, NY.......  ........        X   .........  Alcee L. Hastings, FL...        X   ........  .........
Jay Kim, CA.............        X   ........  .........  Albert Russell Wynn, MD.        X   ........  .........
Sam Brownback, KS.......  ........        X   .........  Michael R. McNulty, NY..        X   ........  .........
David Funderburk, NC....  ........        X   .........  James P. Moran, VA......        X   ........  .........
Steven J. Chabot, OH....  ........        X   .........  Victor O. Frazer, VI....        X   ........  .........
Marshall ``Mark''         ........        X   .........                                                         
 Sanford, SC.                                                                                                   
Matt Salmon, AZ.........  ........        X   .........                                                         
Amo Houghton, NY........        X   ........  .........                                                         
      Total.............  ........  ........  .........  ........................       23        16          0 
----------------------------------------------------------------------------------------------------------------

    Lantos amendment to strike a provision creating a 
coordinator for human rights and refugee affairs reporting to 
the Secretary of State.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,   ........        X   .........  Lee H. Hamilton, IN.....        X   ........  .........
 Chmn.                                                                                                          
William F. Goodling, PA.  ........  ........  .........  Sam Gejdenson, CT.......        X   ........  .........
James A. Leach, IA......  ........        X   .........  Tom Lantos, CA..........        X   ........  .........
Toby Roth, WI...........  ........        X   .........  Robert G. Torricelli, NJ        X   ........  .........
Henry J. Hyde, IL.......  ........  ........  .........  Howard L. Berman, CA....  ........  ........  .........
Doug Bereuter, NE.......  ........        X   .........  Gary L. Ackerman, NY....        X   ........  .........
Christopher H. Smith, NJ  ........        X   .........  Harry Johnston, FL......  ........        X   .........
Dan Burton, IN..........  ........        X   .........  Eliot L. Engel, NY......  ........        X   .........
Jan Meyers, KS..........  ........        X   .........  Eni F.H. Faleomavaega,    ........  ........  .........
                                                          Am. Samoa.                                            
Elton Gallegly, CA......  ........        X   .........  Matthew G. Martinez, CA.        X   ........  .........
Ileana Ros-Lehtinen, FL.  ........        X   .........  Donald M. Payne, NJ.....  ........        X   .........
Cass Ballenger, NC......  ........  ........  .........  Robert E. Andrews, NJ...        X   ........  .........
Dana Rohrabacher, CA....  ........        X   .........  Robert Menendez, NJ.....        X   ........  .........
Donald A. Manzullo, IL..  ........        X   .........  Sherrod Brown, OH.......        X   ........  .........
Edward R. Royce, CA.....  ........        X   .........  Cynthia A. McKinney, GA.  ........        X   .........
Peter T. King, NY.......  ........        X   .........  Alcee L. Hastings, FL...        X   ........  .........
Jay Kim, CA.............  ........  ........  .........  Albert Russell Wynn, MD.        X   ........  .........
Sam Brownback, KS.......  ........        X   .........  Michael R. McNulty, NY..  ........        X   .........
David Funderburk, NC....  ........        X   .........  James P. Moran, VA......        X   ........  .........
Steven J. Chabot, OH....  ........        X   .........  Victor O. Frazer, VI....        X   ........  .........
Marshall ``Mark''         ........        X   .........                                                         
 Sanford, SC.                                                                                                   
Matt Salmon, AZ.........  ........        X   .........                                                         
Amo Houghton, NY........  ........        X   .........                                                         
      Total.............  ........  ........  .........  ........................       13        24          0 
----------------------------------------------------------------------------------------------------------------

    Hamilton amendment to replace mandatory language with 
respect to principles of fair employment practice in connection 
with activities funded by U.S. contributions to the 
International Fund for Ireland with language urging compliance 
with such principles in such circumstances.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,   ........        X   .........  Lee H. Hamilton, IN.....        X   ........  .........
 Chmn.                                                                                                          
William F. Goodling, PA.  ........        X   .........  Sam Gejdenson, CT.......  ........        X   .........
James A. Leach, IA......  ........        X   .........  Tom Lantos, CA..........  ........        X   .........
Toby Roth, WI...........  ........        X   .........  Robert G. Torricelli, NJ  ........        X   .........
Henry J. Hyde, IL.......  ........  ........  .........  Howard L. Berman, CA....  ........  ........  .........
Doug Bereuter, NE.......  ........        X   .........  Gary L. Ackerman, NY....  ........        X   .........
Christopher H. Smith, NJ  ........        X   .........  Harry Johnston, FL......        X   ........  .........
Dan Burton, IN..........        X   ........  .........  Eliot L. Engel, NY......  ........        X   .........
Jan Meyers, KS..........        X   ........  .........  Eni F.H. Faleomavaega,          X   ........  .........
                                                          Am. Samoa.                                            
Elton Gallegly, CA......  ........        X   .........  Matthew G. Martinez, CA.  ........  ........  .........
Ileana Ros-Lehtinen, FL.  ........        X   .........  Donald M. Payne, NJ.....  ........        X   .........
Cass Ballenger, NC......        X   ........  .........  Robert E. Andrews, NJ...  ........        X   .........
Dana Rohrabacher, CA....  ........        X   .........  Robert Menendez, NJ.....  ........        X   .........
Donald A. Manzullo, IL..  ........        X   .........  Sherrod Brown, OH.......  ........        X   .........
Edward R. Royce, CA.....        X   ........  .........  Cynthia A. McKinney, GA.  ........        X   .........
Peter T. King, NY.......  ........        X   .........  Alcee L. Hastings, FL...  ........        X   .........
Jay Kim, CA.............  ........        X   .........  Albert Russell Wynn, MD.  ........        X   .........
Sam Brownback, KS.......  ........        X   .........  Michael R. McNulty, NY..  ........        X   .........
David Funderburk, NC....        X   ........  .........  James P. Moran, VA......  ........        X   .........
Steven J. Chabot, OH....  ........        X   .........  Victor O. Frazer, VI....  ........        X   .........
Marshall ``Mark''         ........        X   .........                                                         
 Sanford, SC.                                                                                                   
Matt Salmon, AZ.........  ........        X   .........                                                         
Amo Houghton, NY........  ........        X   .........                                                         
      Total.............  ........  ........  .........  ........................        8        32          0 
----------------------------------------------------------------------------------------------------------------

    Gilman amendment in the nature of a substitute, as amended.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,         X   ........  .........  Lee H. Hamilton, IN.....  ........        X   .........
 Chmn.                                                                                                          
William F. Goodling, PA.        X   ........  .........  Sam Gejdenson, CT.......  ........        X   .........
James A. Leach, IA......        X   ........  .........  Tom Lantos, CA..........  ........        X   .........
Toby Roth, WI...........        X   ........  .........  Robert G. Torricelli, NJ  ........        X   .........
Henry J. Hyde, IL.......        X   ........  .........  Howard L. Berman, CA....  ........  ........  .........
Doug Bereuter, NE.......        X   ........  .........  Gary L. Ackerman, NY....  ........        X   .........
Christopher H. Smith, NJ        X   ........  .........  Harry Johnston, FL......  ........        X   .........
Dan Burton, IN..........        X   ........  .........  Eliot L. Engel, NY......  ........        X   .........
Jan Meyers, KS..........        X   ........  .........  Eni F.H. Faleomavaega,    ........        X   .........
                                                          Am. Samoa.                                            
Elton Gallegly, CA......        X   ........  .........  Matthew G. Martinez, CA.  ........  ........  .........
Ileana Ros-Lehtinen, FL.        X   ........  .........  Donald M. Payne, NJ.....  ........        X   .........
Cass Ballenger, NC......        X   ........  .........  Robert E. Andrews, NJ...  ........        X   .........
Dana Rohrabacher, CA....        X   ........  .........  Robert Menendez, NJ.....  ........        X   .........
Donald A. Manzullo, IL..        X   ........  .........  Sherrod Brown, OH.......  ........        X   .........
Edward R. Royce, CA.....        X   ........  .........  Cynthia A. McKinney, GA.  ........        X   .........
Peter T. King, NY.......        X   ........  .........  Alcee L. Hastings, FL...  ........        X   .........
Jay Kim, CA.............        X   ........  .........  Albert Russell Wynn, MD.  ........        X   .........
Sam Brownback, KS.......        X   ........  .........  Michael R. McNulty, NY..  ........        X   .........
David Funderburk, NC....        X   ........  .........  James P. Moran, VA......  ........        X   .........
Steven J. Chabot, OH....        X   ........  .........  Victor O. Frazer, VI....  ........        X   .........
Marshall ``Mark''               X   ........  .........                                                         
 Sanford, SC.                                                                                                   
Matt Salmon, AZ.........        X   ........  .........                                                         
Amo Houghton, NY........        X   ........  .........                                                         
      Total.............  ........  ........  .........  ........................       23        18          0 
----------------------------------------------------------------------------------------------------------------

    Goodling motion to order the bill, H.R. 1561, reported with 
an amendment in the nature of a substitute with the 
recommendation that the bill, as amended, do pass.

----------------------------------------------------------------------------------------------------------------
     Name and State          Aye       No      Present        Name and State          Aye       No      Present 
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, NY,         X   ........  .........  Lee H. Hamilton, IN.....  ........        X   .........
 Chmn.                                                                                                          
William F. Goodling, PA.        X   ........  .........  Sam Gejdenson, CT.......  ........        X   .........
James A. Leach, IA......        X   ........  .........  Tom Lantos, CA..........  ........        X   .........
Toby Roth, WI...........        X   ........  .........  Robert G. Torricelli, NJ  ........        X   .........
Henry J. Hyde, IL.......        X   ........  .........  Howard L. Berman, CA....  ........        X   .........
Doug Bereuter, NE.......        X   ........  .........  Gary L. Ackerman, NY....  ........        X   .........
Christopher H. Smith, NJ        X   ........  .........  Harry Johnston, FL......  ........        X   .........
Dan Burton, IN..........        X   ........  .........  Eliot L. Engel, NY......  ........        X   .........
Jan Meyers, KS..........        X   ........  .........  Eni F.H. Faleomavaega,    ........        X   .........
                                                          Am. Samoa.                                            
Elton Gallegly, CA......        X   ........  .........  Matthew G. Martinez, CA.  ........        X   .........
Ileana Ros-Lehtinen, FL.        X   ........  .........  Donald M. Payne, NJ.....  ........        X   .........
Cass Ballenger, NC......        X   ........  .........  Robert E. Andrews, NJ...  ........        X   .........
Dana Rohrabacher, CA....        X   ........  .........  Robert Menendez, NJ.....  ........        X   .........
Donald A. Manzullo, IL..        X   ........  .........  Sherrod Brown, OH.......  ........        X   .........
Edward R. Royce, CA.....        X   ........  .........  Cynthia A. McKinney, GA.  ........        X   .........
Peter T. King, NY.......        X   ........  .........  Alcee L. Hastings, FL...  ........        X   .........
Jay Kim, CA.............        X   ........  .........  Albert Russell Wynn, MD.  ........        X   .........
Sam Brownback, KS.......        X   ........  .........  Michael R. McNulty, NY..  ........        X   .........
David Funderburk, NC....        X   ........  .........  James P. Moran, VA......  ........        X   .........
Steven J. Chabot, OH....        X   ........  .........  Victor O. Frazer, VI....  ........        X   .........
Marshall ``Mark''               X   ........  .........                                                         
 Sanford, SC.                                                                                                   
Matt Salmon, AZ.........        X   ........  .........                                                         
Amo Houghton, NY........        X   ........  .........                                                         
      Total.............  ........  ........  .........  ........................       23        18          0 
----------------------------------------------------------------------------------------------------------------

                      Section-by-Section Analysis

                               division a

                      Title I--General Provisions

Sec. 101--Short Title

    Sets forth the short title of this division, the ``Foreign 
Affairs Agencies Consolidation Act of 1995.''

Sec. 102--Congressional Findings

    Sets forth congressional findings that the United States 
must remain engaged in international affairs; that the U.S. 
budget deficit requires streamlining of government programs and 
activities, including foreign programs and activities; and 
that, as part of the downsizing of the international affairs 
budget, the proliferation of foreign affairs agencies that 
occurred during the Cold War must be reversed and the 
leadership of the Secretary of State strengthened.

Sec. 103--Purposes

    States that the purposes of the division are to consolidate 
and reinvent the foreign affairs agencies of the United States 
within the Department of State; provide for the reorganization 
of the Department of State; strengthen the coordination of U.S. 
foreign policy; and to abolish not later than March 1, 1997, 
the United States Arms Control and Disarmament Agency (ACDA), 
the United States Information Agency (USIA), the International 
Development Cooperation Agency, and the Agency for 
International Development (AID).

Sec. 104--Definitions

    Defines terms used within this division.

      Title II--United States Arms Control and Disarmament Agency

                     Chapter 1--General Provisions

Sec. 201--Effective Date

    Provides that the amendments made by this title (other than 
section 221) shall take effect on March 1, 1997, or on an 
earlier date announced by the President in the Federal 
Register, which date may be not earlier than 60 calendar days 
(excluding any days on which either House of Congress is not in 
session because of a sine die adjournment) after the President 
has submitted a reorganization plan to the appropriate 
committees of Congress pursuant to section 221. Section 221 
shall take effect on the date of enactment.

Sec. 202--References in Title

    States that, except as otherwise provided, the references 
in this title to provisions of law shall be considered 
references to the Arms Control and Disarmament Act.

 Chapter 2--Abolition of United States Arms Control and Disar- mament 
         Agency and Transfer of Functions to Secretary of State

Sec. 211--Abolition of United States Arms Control and Disarmament 
        Agency

    Abolishes ACDA.

Sec. 212--Transfer of Functions to Secretary of State

    Transfers to the Secretary of State all functions of the 
Director of ACDA and of ACDA.

Chapter 3--Reorganization of Department of State Relating to Functions 
                      Transferred Under This Title

Sec. 221--Reorganization Plan

    Provides that, not later than March 1, 1996, the President, 
in consultation with the Secretary of State and the Director of 
ACDA, shall submit a reorganization plan to the appropriate 
committees of Congress. The plan is to provide for the 
abolition of ACDA; the transfer of ACDA's functions and 
personnel to the Department of State; and the consolidation, 
reorganization, and streamlining of the Department of State 
upon the transfer in order to carry out the transferred 
functions.
    The plan is to identify the functions of ACDA that are to 
be transferred; the personnel and positions of ACDA and the 
Department that are to be transferred, separated, or 
eliminated; specify the consolidations and reorganizations 
within the Department that will be required; specify the funds 
available to ACDA that will be transferred; specify the 
proposed allocations within the Department of unexpended funds 
that are to be transferred from ACDA; and specify the proposed 
disposition of the property, facilities, contracts, records, 
and other assets and liabilities of ACDA.
    The plan is to provide for an appropriate number of 
assistant secretaries of state to carry out the functions 
transferred to the Department.
    The Committee notes that ACDA's single-mission focus has 
permitted the agency to develop over the years unique expertise 
and experience among its personnel in arms control matters. The 
Department of State has needed to develop similar expertise 
within the Bureau of Political-Military Affairs and elsewhere. 
However, the personnel system of the Department, which 
emphasizes the development of broad expertise among the 
Department's employees so as to equip them to effectively carry 
out the Department's many missions, has necessarily limited the 
Department's ability to match the training and experience in 
arms control matters that is found within ACDA.
    The Committee believes that it would be detrimental to the 
interests of the United States for the expertise and experience 
of ACDA personnel to be lost as a result of the consolidation 
of ACDA with the Department of State. Accordingly, the 
Committee would expect the reorganization plan submitted 
pursuant to section 221 to be designed, to the maximum extent 
feasible, to ensure that the unique expertise and experience of 
ACDA personnel is not lost to the United States government as a 
result of the consolidation.

Sec. 222--Principal Officers

    Amends the State Department Basic Authorities Act to 
establish the new position within the Department of State of 
Coordinator for Arms Control and Disarmament, with the rank and 
status of Ambassador-at-Large. The Coordinator heads the Bureau 
of Arms Control and Disarmament and reports directly to the 
Secretary of State. In addition, an amendment to the National 
Security Act of 1947 provides that the Coordinator shall serve 
as a statutory advisor to the National Security Council.
    A transition provision provides that the President is 
authorized to appoint as the Coordinator for Arms Control and 
Disarmament the Director of ACDA, or other officials of ACDA or 
the Department of State confirmed by the Senate, to serve in an 
acting capacity until the President nominates and the Senate 
confirms a permanent appointee.

                    Chapter 4--Conforming Amendments

Sec. 241--References

    Provides that any reference in any statute or other 
official document or proceeding to the Director of ACDA shall 
be deemed to refer to the Secretary of State, and any reference 
to ACDA shall be deemed to refer to the Department of State.

Sec. 242--Repeal of Establishment of Agency

    Repeals section 21 of the Arms Control and Disarmament Act 
(relating to the establishment of ACDA).

Sec. 243--Repeal of Positions and Offices

    Makes conforming amendments to other provisions of the Arms 
Control and Disarmament Act.

Sec. 244--Transfer of Authorities and Functions Under the Arms Control 
        and Disarmament Act to the Secretary of State

    Makes conforming amendments to other provisions of the Arms 
Control and Disarmament Act.

              Title III--United States Information Agency

                     Chapter 1--General Provisions

Sec. 301--Effective Date

    Provides that the amendments made by this title (other than 
section 321) shall take effect on March 1, 1997, or on an 
earlier date announced by the President in the Federal 
Register, which date may be not earlier than 60 calendar days 
(excluding any days on which either House of Congress is not in 
session because of a sine die adjournment) after the President 
has submitted a reorganization plan to the appropriate 
committees of Congress pursuant to section 321. Section 321 
shall take effect on the date of enactment.

 Chapter 2--Abolition of United States Information Agency and Transfer 
                   of Functions to Secretary of State

Sec. 311--Abolition of United States Information Agency

    Abolishes USIA.

Sec. 312--Transfer of Functions to Secretary of State

    Transfers to the Secretary of State all functions of the 
Director of USIA and of USIA.

Chapter 3--Reorganization of Department of State Relating to Functions 
                      Transferred Under This Title

Sec. 321--Reorganization Plan

    Provides that, not later than March 1, 1996, the President, 
in consultation with the Secretary of State and the Director of 
USIA, shall submit a reorganization plan to the appropriate 
committees of Congress. The plan is to provide for the 
abolition of USIA; the transfer of USIA's functions and 
personnel to the Department of State; and the consolidation, 
reorganization, and streamlining of the Department of State 
upon the transfer in order to carry out the transferred 
functions.
    The plan is to identify the functions of USIA that are to 
be transferred; the personnel and positions of USIA and the 
Department that are to be transferred, separated, or 
eliminated; specify the consolidations and reorganizations 
within the Department that will be required; specify the funds 
available to USIA that will be transferred; specify the 
proposed allocations within the Department of unexpended funds 
that are to be transferred from USIA; and specify the proposed 
disposition of the property, facilities, contracts, records, 
and other assets and liabilities of USIA.
    The plan is to provide for an appropriate number of 
assistant secretaries of state to carry out the functions 
transferred to the Department.

Sec. 322--Principal Officers

    Amends the State Department Basic Authorities Act to 
establish the new positions within the Department of State of 
Under Secretary for Public Diplomacy, Assistant Secretary for 
Academic Programs and Cultural Exchanges, and Assistant 
Secretary for Information, Policy, and Programs. Both assistant 
secretaries shall report to the under secretary.
    Transition provisions provide that the President is 
authorized to appoint to each of these positions the Director 
of USIA, or other officials of USIA or the Department of State 
confirmed by the Senate, to serve in an acting capacity until 
the President nominates and the Senate confirms permanent 
appointees.

                    Chapter 4--Conforming Amendments

Sec. 341--References

    Provides that any reference in any statute or other 
official document or proceeding to the Director of USIA shall 
be deemed to refer to the Secretary of State, and any reference 
to USIA shall be deemed to refer to the Department of State.

Sec. 342--Abolition of Office of Inspector General of the United States 
        Information Agency and Transfer of Functions to Office of 
        Inspector General of the Department of State

    Abolishes the Office of Inspector General of USIA, and 
transfers the functions of that Office to the Office of 
Inspector General of the Department of State.

Sec. 343--Amendments to Title 5
    Makes conforming amendments to title 5 of the United States 
Code.

Sec. 344--Amendments to United States Information and Educational 
        Exchange Act of 1948

    Makes conforming amendments to the United States 
Information and Educational Exchange Act of 1948.

Sec. 345--Amendments to the Mutual Educational and Cultural Exchange 
        Act of 1961 (Fulbright-Hays Act)

    Makes conforming amendments to the Mutual Educational and 
Cultural Exchange Act of 1961.

Sec. 346--International Broadcasting Activities

    Makes conforming amendments to the Foreign Relations 
Authorization Act, Fiscal Years 1994 and 1995, and to title 5 
of the United States Code.

Sec. 347--Television Broadcasting to Cuba

    Makes conforming amendments to the Television Broadcasting 
to Cuba Act.

Sec. 348--Radio Broadcasting to Cuba

    Makes conforming amendments to the Radio Broadcasting to 
Cuba Act.

Sec. 349--National Endowment for Democracy

    Makes conforming amendments to Public Law 98-164.

Sec. 350--United States Scholarship Program for Developing Countries

    Makes conforming amendments to the Foreign Relations 
Authorization Act, Fiscal Years 1986 and 1987.

Sec. 351--Fascell Fellowship Board

    Makes conforming amendments to the Fascell Fellowship Act.

Sec. 352--National Security Education Board

    Makes conforming amendments to the Intelligence 
Authorization Act, Fiscal Year 1992.

Sec. 353--Center for Cultural and Technical Interchange Between North 
        and South

    Makes conforming amendments to the Foreign Relations 
Authorization Act, Fiscal Years 1992 and 1993.

Sec. 354--East-West Center

    Makes conforming amendments to the Mutual Security Act of 
1960.

Sec. 355--Mission of the Department of State

    Makes conforming amendments to the Foreign Relations 
Authorization Act, Fiscal Year 1979.

Sec. 356--Consolidation of Administrative Services

    Makes conforming amendments to the State Department Basic 
Authorities Act of 1956.

Sec. 357--Grants

    Makes conforming amendments to the Foreign Relations 
Authorization Act, Fiscal Years 1992 and 1993.

Sec. 358--Ban on Domestic Activities

    Makes conforming amendments to the Foreign Relations 
Authorization Act, Fiscal Years 1986 and 1987.

Sec. 359--Conforming Repeal to the Arms Control and Disarmament Act

    Makes conforming amendment to the Arms Control and 
Disarmament Act.

Sec. 360--Repeal Relating to Procurement of Legal Services

    Makes conforming amendment to the State Department Basic 
Authorities Act of 1956.

Sec. 361--Repeal Relating to Payment of Subsistence Expenses

    Makes conforming amendment to the State Department Basic 
Authorities Act of 1956.

Sec. 362--Conforming Amendment to the SEED Act

    Makes conforming amendment to the Support for East European 
Democracies Act of 1989.

Sec. 363--International Cultural and Trade Center Commission

    Makes conforming amendments to the Federal Triangle 
Development Act.
Sec. 364--Foreign Service Act of 1980

    Makes conforming amendments to the Foreign Service Act of 
1980.

Sec. 365--Au Pair Programs

    Makes conforming amendment to the Eisenhower Exchange 
Fellowship Act of 1990.

Sec. 366--Exchange Program With Countries in Transition From 
        Totalitarianism to Democracy

    Makes conforming amendments to the National and Community 
Service Act of 1990.

Sec. 367--Edmund S. Muskie Fellowship Program

    Makes conforming amendments to the Foreign Relations 
Authorization Act, Fiscal Years 1992 and 1993.

Sec. 368--Implementation of Convention on Cultural Property

    Makes conforming amendment to the Convention on Cultural 
Property Implementation Act.

Sec. 369--Mike Mansfield Fellowships

    Makes conforming amendment to the Foreign Relations 
Authorization Act, Fiscal Years 1994 and 1995.

             Title IV--Agency for International Development

                     Chapter 1--General Provisions

Sec. 401--Effective Date

    Provides that the amendments made by this title (other than 
section 421) shall take effect on March 1, 1997, or on an 
earlier date announced by the President in the Federal 
Register, which date may be not earlier than 60 calendar days 
(excluding any days on which either House of Congress is not in 
session because of a sine die adjournment) after the President 
has submitted a reorganization plan to the appropriate 
committees of Congress pursuant to section 421. Section 421 
shall take effect on the date of enactment.

Sec. 402--References in Title

    States that, except as otherwise provided, the references 
in this title to provisions of law shall be considered 
references to the Foreign Assistance Act of 1961.

 Chapter 2--Abolition of the Agency for International Development and 
   the International Development Cooperation Agency and Transfer of 
                    Functions to Secretary of State

Sec. 411--Abolition of Agency for International Development and 
        International Development Cooperation Agency

    Abolishes AID and the International Development Cooperation 
Agency.

Sec. 412--Transfer of Functions to Secretary of State

    Transfers to the Secretary of State all functions of the 
Administrator of AID and of AID, and all functions of the 
Director of the International Development Cooperation Agency 
and of the International Development Cooperation Agency.

Chapter 3--Reorganization of Department of State Relating to Functions 
                      Transferred Under This Title

Sec. 421--Reorganization Plan

    Provides that, not later than March 1, 1996, the President, 
in consultation with the Secretary of State and the 
Administrator of AID, shall submit a reorganization plan to the 
appropriate committees of Congress. The plan is to provide for 
the abolition of AID; the transfer of AID's functions and 
personnel to the Department of State; and the consolidation, 
reorganization, and streamlining of the Department of State 
upon the transfer in order to carry out the transferred 
functions.
    The plan is to identify the functions of AID that are to be 
transferred; the personnel and positions of AID and the 
Department that are to be transferred, separated, or 
eliminated; specify the consolidations and reorganizations 
within the Department that will be required; specify the funds 
available to AID that will be transferred; specify the proposed 
allocations within the Department of unexpended funds that are 
to be transferred from AID; and specify the proposed 
disposition of the property, facilities, contracts, records, 
and other assets and liabilities of AID.
    The plan is to provide for an appropriate number of 
assistant secretaries of state to carry out the functions 
transferred to the Department.
    The Committee intends that AID be transferred en bloc into 
the Department of State, reporting to the Under Secretary for 
Development. The Committee reviewed the option of dividing AID 
among the Department's regional bureaus and specifically 
rejected that option.

Sec. 422--Principal Officers

    Amends the State Department Basic Authorities Act to 
establish the new position within the Department of State of 
Under Secretary for Development and Economic Affairs. A 
transition provision provides that the President is authorized 
to appoint to this position the Administrator of AID, or 
another official of AID or the Department of State confirmed by 
the Senate, to serve in an acting capacity until the President 
nominates and the Senate confirms a permanent appointee.
    The Committee intends the Under Secretary for Development 
to be responsible for the administration of funds under the 
Sustainable Development, Development Fund for Africa, SEED, 
FREEDOM Support, ESF, Disaster, Housing Guarantee, Small and 
Micro-enterprise, PL-480 Titles II & III, American Schools and 
Hospitals Abroad and International Fund for Ireland accounts. 
The Committee intends this list of accounts to be the minimum 
number of accounts administered by the Under Secretary for 
Development. Should the Administration wish, the Committee 
would welcome the movement of other foreign assistance programs 
under the Under Secretary's administration.

                    Chapter 4--Conforming Amendments

Sec. 441--References

    Provides that any reference in any statute or other 
official document or proceeding to the Administrator of AID 
shall be deemed to refer to the Secretary of State, and any 
reference to AID shall be deemed to refer to the Department of 
State.

Sec. 442--Abolition of Office of Inspector General of the Agency for 
        International Development and Transfer of Functions to Office 
        of Inspector General of the Department of State

    Abolishes the Office of Inspector General of AID, and 
transfers the functions of that Office to the Office of 
Inspector General of the Department of State.

Sec. 443--Abolition of Chief Financial Officer of the Agency for 
        International Development and Transfer of Functions to Chief 
        Financial Officer Department of State

    Abolishes the Office of Chief Financial Officer of AID, and 
transfers the functions of that Office to the Office of Chief 
Financial Officer of the Department of State.

Sec. 444--Amendments to Title 5, United States Code
    Makes conforming amendments to title 5 of the United States 
Code.

Sec. 445--Public Law 480 Program

    Makes conforming amendment to the Agricultural Trade 
Development and Assistance Act of 1954.

                          Title V--Transition

Sec. 501--Reorganization Authority

    Authorizes the Secretary of State to allocate or reallocate 
functions transferred to the Department among the officers of 
the Department, and to establish, consolidate, alter, or 
discontinue organizational entities within the Department as 
necessary to carry out any reorganization under this division. 
This authority does not extend to the abolition of 
organizational entities or offices established by law, or to 
the alteration of any delegation of functions required by law.

Sec. 502--Transfer and Allocation of Appropriations and Personnel

    Provides that personnel, assets, liabilities, contracts, 
property, records, and unexpended appropriations balances of 
the abolished agencies shall be transferred to the Secretary of 
State. Unexpended and unobligated funds that are so transferred 
shall be used only for the purposes for which they were 
originally authorized and appropriated. When an agency is 
abolished, the limit on the number of members of the foreign 
service that may be employed by that agency shall be added to 
the limit for the Department of State.

Sec. 503--Incidental Transfers

    The Director of the Office of Management and Budget, in 
consultation with the Secretary of State, is authorized to make 
such incidental dispositions of personnel, assets, liabilities, 
contracts, property, records, and unexpended balances of 
appropriations as may be necessary to carry out this division.

Sec. 504--Effect on Personnel

    Personnel holding Executive Schedule positions who are 
transferred to the Department of State shall continue to be 
compensated at a rate not less than that of their previous 
position. Positions whose incumbents are appointed by the 
President and confirmed by the Senate, the functions of which 
are transferred, shall terminate upon the transfer. Personnel 
terminated as a result of the abolition of their agency or the 
reorganization of the Department of State may be appointed in 
the competitive or excepted service of another agency.

Sec. 505--Voluntary Separation Incentives

    Authorizes the payment of voluntary separation incentives 
to minimize the need for involuntary separations as a result of 
the abolition of an agency or the reorganization of the 
Department of State pursuant to this division. Such payments 
are to be made in accordance with the authorities of section 3 
of the Federal Workforce Restructuring Act of 1994 (Public Law 
103-226), subject to certain temporal restrictions.

Sec. 506--Savings Provisions

    All orders, rules, regulations, agreements, contracts, and 
other administrative actions of the agencies abolished under 
this division shall remain in effect according to their terms. 
Pending proceedings shall not be affected by the transfer of 
functions of the abolished agencies to the Department of State.

Sec. 507--Property and Facilities

    The Secretary of State shall review the property and 
facilities transferred to the Department to determine whether 
they are required by the Department.

Sec. 508--Authority of Secretary to Facilitate Transition

    The Secretary of State is authorized to utilize the 
services of employees and the funds of the agencies that are to 
be abolished pursuant to this division in order to facilitate 
the transfer of functions to the Department.

Sec. 509--Recommendations for Additional Conforming Amendments

    The Congress urges the President to submit recommendations 
for additional technical and conforming amendments to reflect 
the changes made by this division.

Sec. 510--Final Report

    Not later than October 1, 1998, the President, in 
consultation with the Secretary of the Treasury and the 
Director of the Office of Management and Budget, shall submit 
to the appropriate congressional committees a final accounting 
of the finances of the abolished agencies.

Sec. 511--Severability

    If any provision of this division is held invalid, the 
remainder of the division shall not be affected.
              DIVISION B--FOREIGN RELATIONS AUTHORIZATION

Sec. 2001--Short title

    Section 2001 provides a short title, the ``Foreign 
Relations Authorization Act, Fiscal Years 1996 and 1997'' for 
this Division of the American Overseas Interest Act of 1995.

Sec. 2002--Definitions

               Chapter 1--Authorization of Appropriations

Sec. 2101--Administration of Foreign Affairs

    Section 2101(a) authorizes appropriations for the 
Department of State as follows:
          (1) $1,728,797,000 for fiscal year 1996 and 
        $1,676,903,000 for fiscal 1997 for diplomatic and 
        consular programs;
          (2) Sec. 2101(a)(1)(B) allocates $5,000,000 for 
        fiscal year 1996 and $5,000,000 for fiscal year 1997 to 
        assure that funds are available for the purpose of 
        processing immigrant visas for persons who are outside 
        their country of nationality, have asserted a fear of 
        returning to their countries of nationality and have a 
        credible basis for such fear, and for whom immigrant 
        visas are currently available. This section would not 
        create any new visas or make anyone eligible to 
        immigrate who is not eligible under current law. It is 
        intended to facilitate the processing of applicants who 
        are in refugee camps and who are already eligible to 
        immigrate under current law, but are required by 
        current administrative policies to return to the 
        countries from which they fled in order to apply for 
        immigrant visas to the U.S. These applicants are 
        primarily close relatives of U.S. citizens and lawful 
        permanent residents.
          (3) $366,276,000 in fiscal year 1996 and $355,287,000 
        for fiscal year 1997 for salaries and expenses;
          (4) Sec. 2101(a)(2)(B) states that $11,900,000 in 
        fiscal year 1996 and $11,900,000 in fiscal year 1997 
        authorized for salaries and expenses must be available 
        for the salaries and expenses of the bureau that 
        administers Refugee and Migration Assistance. This 
        continues a provision of current law under which 
        salaries and expenses for the bureau that administers 
        the refugee and migration assistance account are paid 
        out of the Diplomatic and Consular Programs account, 
        not out of funds authorized for refugee and migration 
        programs as requested by the Administration. The 
        purpose of this provision is to ensure that all funds 
        authorized for the refugee account are spent on 
        programs.
          (5) $20,000,000 for fiscal year 1996 and $20,000,000 
        for fiscal year 1997 for the Capital Investment Fund;
          (6) $ 391,760,000 in fiscal year 1996 and 
        $391,760,000 for fiscal year 1997 for acquisition and 
        maintenance of buildings abroad;
          (7) $4,780,000 for fiscal year 1996 and $4,780,000 
        for fiscal year 1997 for representation allowances;
          (8) $6,000,000 in fiscal year 1996 and $6,000,000 in 
        fiscal year 1997 for emergencies in the diplomatic and 
        consular service;
          (9) $23,469,000 in fiscal year 1996 and $23,469,000 
        in fiscal year 1997 for the Office of Inspector 
        General;
          (10) $15,165,000 for fiscal year 1996 and $14,710,000 
        for fiscal year 1997 for the American Institute in 
        Taiwan;
          (11) $9,579,000 for fiscal year 1996 and $9,579,000 
        for fiscal year 1997 for protection of foreign missions 
        and officials;
          (12) $776,000 for fiscal year 1996 and $776,000 for 
        fiscal year 1997 for repatriation loans;
    Amounts provided in the bill for the operations of the 
Department of State support U.S. embassies, consulates, and 
other diplomatic offices abroad, passport and citizens services 
in the United States, and policy direction for the entire 
foreign affairs establishment.
    In 265 overseas offices, American officials work, often 
under extremely difficult circumstances, to protect American 
citizens and economic interests abroad, represent American 
political interests, and report on economic and political 
conditions abroad.
    The Department plays an essential role in securing the 
United States border by screening visa applicants, combatting 
visa and passport fraud, and operating anti-terrorism programs.
    The Committee expects that the Department will use funds 
provided in the capital investment fund to expeditiously 
modernize its antiquated computer and communications equipment. 
In view of the great cost of maintaining American personnel 
abroad, the Committee believes that it may be possible to 
accomplish many more administrative tasks within the United 
States through the use of modern communications techniques.
    The Committee urges the Secretary of State to act quickly 
to carry out the management recommendations and consolidation 
of functions within the Department proposed in the Strategic 
Management Initiative.
    The Committee urges the Department to consider reducing 
staffs in large posts in addition to its plans to close posts.

Sec. 2102--International Organizations, Programs, and Conferences

    Section 2102(a), authorizes $873,505,000 for fiscal year 
1996 and $867,050,000 for fiscal year 1997 for assessed 
contributions to international organizations.
    Organization of American States.--In the last five years, 
the Organization of American States (OAS) has begun to emerge 
as a more relevant tool in advancing the common interests of 
its member states, particularly with respect to strengthening 
representative democracy, protecting human rights, and 
promoting hemispheric trade. New plans are being developed for 
reorganizing the General Secretariat to be more responsive on 
issues of trade liberalization and democratic reform; enhanced 
effectiveness of OAS technical assistance programs and new 
standards of professionalism of OAS personnel are key 
objectives.
    The Committee contemplates that the OAS receive $51 million 
for payment toward the U.S. assessed contribution. While this 
sum is lower than the request, it represents a smaller cut than 
is being recommended for many other international 
organizations. The Committee notes that the United States is 
asked to carry no more than its fair share at the OAS; the 
United States pays roughly 60 percent of the OAS regular 
budget, but represents 75 percent of GDP in the hemisphere. 
Conversely, the Committee recognizes that, because the U.S. 
contribution is a much higher percentage of the OAS's regular 
fund than at the United Nations, unilateral cuts on the lean 
OAS budget have a disproportionate impact on that regional 
organization.
    The Committee acknowledges that the U.S. Mission to the OAS 
has advanced a practical discussion of new mechanisms to ensure 
that other member and observer states contribute more to 
special voluntary programs (such as electoral observer 
missions, etc.). The Committee expects definitive progress in 
the coming year to ensure that some burden-sharing mechanism is 
in place so that the United States no longer is expected to 
shoulder most if not all of these special costs.
    The Committee also notes that, to its credit, USAID has 
funded certain multilateral missions that complement U.S. 
programs, particularly the ongoing OAS missions in Nicaragua 
and Haiti, as well as ad hoc election support and observation 
missions; the Committee intends that USAID continue to treat 
these activities as priorities.
    Sec. 2102(b)--$309,375,000 for fiscal year 1996 and 
$302,902,000 for fiscal year 1997 for voluntary contributions 
to international organizations.
    While the Committee has provided adequate funding for many 
of the international organizations of vital interest to the 
U.S., such as the World Health Organization, the Organization 
of American States, the Organization for Economic Cooperation 
and Development and the General Agreement on Tariffs and Trade, 
budgetary limitations in fiscal year 1997 will require the 
administration to scale back our participation in some lower 
priority organizations and eliminate a U.S. role in others. The 
Committee has identified more than 15 such international 
organizations where our financial contributions could be 
eliminated altogether in two years time. The Committee believes 
it is important for the administration to prioritize our 
interests in an era of declining budgets.
    Sec. 2102(b)(2)(A) states that of the amounts authorized to 
be appropriated for voluntary contributions to international 
organizations, $103,000,000 for fiscal year 1996 and 
$103,000,000 for fiscal year 1997 is authorized only for the 
United Nations Children's Fund (UNICEF). This section also 
states that for fiscal year 1996 not more than 25 percent of 
the funds may be made available to UNICEF until 30 days after 
the submission to Congress of the report required by section 
2523.
    Section 2102(b)(2)(B) states that of the amounts authorized 
to be appropriated for voluntary contributions to international 
organizations, $43,000,000 in fiscal year 1996 and $43,000,000 
for fiscal year 1997 are authorized to be appropriated only for 
the International Atomic Energy Agency. In addition this 
section states that the U.S. contribution to the International 
Atomic Energy Agency is conditioned on that agency allowing 
Israel to participate in its activities.
    Section 2102(b)(2)(C) states that of the amounts authorized 
to be appropriated for voluntary contributions to international 
organizations, $15,000,000 for fiscal year 1996 and $15,000,000 
for fiscal year 1997 is authorized to be appropriated only for 
War Crimes Tribunal for the Former Yugoslavia, or 25 percent of 
the Tribunal's budget, whichever is less.
    The Committee strongly supports the work of the 
International Tribunal for the former Yugoslavia, yet the 
Committee is also reluctant to pay a disproportionate share of 
the costs of the tribunal's costs. Indeed, the Committee is 
sensitive to the fact that this tribunal must be perceived as a 
truly international effort supported by all nations, lest 
critics contend that the tribunal is a strictly U.S. driven 
effort. To that end, the Committee adopted a provision that the 
U.S. contribution be limited to $15,000,000 or 25% of the 
tribunal's budget, whichever is less. It also is the view of 
the Committee that the tribunal should be placed in the regular 
U.N. budget, thus establishing for it a secure source of 
funding.
    Section 2102(b)(2)(D) states that of the amounts authorized 
to be appropriated for voluntary contributions to international 
organizations, $5,000,000 for fiscal year 1996 and $5,000,000 
for fiscal year 1997 are authorized to be appropriated only for 
the World Food Program.
    Section 2102(b)(2)(E) states that of the amounts authorized 
to be appropriated for voluntary contributions to international 
organizations, $1,500,000 for fiscal year 1996 and $3,000,000 
for fiscal year 1997 are authorized to be appropriated only for 
the United Nations Voluntary Fund for Victims of Torture.
    Section 2102(b)(2)(F) states that of the funds authorized 
for voluntary contributions to international organizations, not 
more than $25,000,000 for fiscal year 1996 and $25,000,000 for 
fiscal year 1997 shall be available for the United Nations 
Population Fund (UNFPA).
    The Committee remains concerned about repeated reports of 
forced abortions and other coercive population practices in 
China. Between 1986 and 1993, the U.S. did not contribute to 
UNFPA because previous Administrations determined that UNFPA 
was ineligible for U.S. support as a result of its program in 
the People's Republic of China. UNFPA neither funds abortion 
nor supports or condones coercion in any country, including 
China.
    To ensure that no U.S. funds can be used to support 
coercive activities in China, the Committee has included 
statutory language prohibiting UNFPA from using U.S. funds in 
China. In order to effectively monitor and track U.S. funds, 
UNFPA is required to maintain the funds in a separate account 
and not commingle them with any other funds. In addition, the 
U.S. contribution must be reduced by the United States' 
proportionate share of UNFPA's activities in China. The 
provision also requires that the Secretary of State must submit 
a report to the Committee and other House and Senate committees 
with jurisdiction each fiscal year by February 15th indicating 
the amount that UNFPA is budgeting for activities in China. The 
provision stipulates that the U.S. contribution be reduced by 
the amount of any increase above $7,000,000 in UNFPA's program 
in China in fiscal years 1996 and 1997.
    The Committee does not believe that the United States 
contribution should be conditioned on UNFPA withdrawal from 
China. UNFPA cannot withdraw from any country without the 
approval of its 48-member nation Governing Council. Many of 
UNFPA's other donors believe that the organization's emphasis 
on voluntary family planning is an important reason for UNFPA 
to continue to operate in China. To condition U.S. funding on a 
withdrawal of UNFPA from China would have the same practical 
effect as simply cutting off the entire U.S. contribution. The 
main consequence of such an action would be to reduce UNFPA 
assistance to the many of the 140 developing countries in which 
it works where the United States has no bilateral population 
program.
    Section 2102(b)(2)(G) states that of the amounts authorized 
to be appropriated for voluntary contributions to international 
organizations, $15,000,000 for fiscal year 1996 and $15,000,000 
for fiscal year 1997 are authorized to be appropriated only for 
the Organization of American States. The $15 million is 
comprised of $12,000,000 for technical assistance programs and 
$3,000,000 for activities to strengthen democracy and human 
rights.
    Technical Assistance.--The $12,000,000 for technical 
assistance programs is authorized with the understanding that 
the OAS should provide $1,000,000 to the Inter-American Drug 
Abuse Control Commission and $1,000,000 to activities of the 
OAS Special Committee on Trade. The Committee acknowledges the 
initiatives being considered to restructure the Organization's 
technical assistance programs to focus attention on fewer key 
priorities, to encourage more developed member states to become 
donors rather than recipients, and to ensure evaluation of 
projects to determine their relative value. The Committee 
acknowledges that, unlike other OAS activities, such technical 
assistance programs have historically ensured burden-sharing 
and have systematically leveraged small sums to attract large 
contributions by international financial institutions or larger 
donors.
     Strengthening Democracy and Human Rights.--The $3,000,000 
for democracy and human rights activities is authorized with 
the understanding that the OAS should provide adequate funding 
to implement fully a project of peaceful conflict resolution in 
Guatemala (approximately $1,000,000) as well as provide 
$500,000 to the Inter-American Commission on Human Rights. The 
Committee intends that these U.S. funds not be used to pay 
recurring costs (such as salaries) but should support 
activities to which the OAS and other member states are also 
making significant contributions.
    Section 2102(b)(2)(H) states that none of the funds 
authorized are available for the U.S. proportionate share of 
contributions to international organizations for any programs 
identified in section 397 of the Foreign Assistance Act or for 
programs in Libya, Iran or any terrorist country.
    Section 2102(b)(2)(I) states that of the funds authorized 
to be appropriated for voluntary contributions to international 
organizations, not to exceed $70,000,000 for fiscal year 1996 
and 1997 shall be available for the United Nations Development 
Program (UNDP). None of the funds available to UNDP for fiscal 
years 1996 and 1997 may be spent in Burma. The provision 
provides for a withholding of funds until a Presidential 
certification is made that UNDP has terminated its activities 
in Burma. This limitation is considered necessary for the 
following reasons:
    Section 431 of the Foreign Relations Authorization Act for 
Fiscal Years 1994 and 1995 provided that funds could be made 
available for the UNDP for FY 1995 if a certification was made 
that ``The United Nations Development Program has initiated no 
new programs and no new funding for existing programs in or for 
Burma since the United Nations Development Program Governing 
Council (Executive Board) meeting of June 1993''.
    Although such a certification was made, the Committee 
rejects the Administration's reading of the law. The 
Administration chose to treat what appears to have been either 
new programs or new funding for existing programs, as having 
been ``contemplated'' at the June, 1993 Governing Council 
meeting. Under that reading of the law, the Administration 
released funds to the UNDP. Whether a program was 
``contemplated'' at the June, 1993 Governing Council meeting is 
immaterial to the question of whether a ``new program'' or 
``new funding for existing programs'' were ``initiated'' during 
the relevant period.
    In view of the Administration's decision to make the 
certification referred to above, the Committee has chosen to 
withhold an amount equal to the amount the Committee projects 
the UNDP will spend in Burma--$18.2 million in Fiscal Year 1996 
and $25.48 million in Fiscal Year 1997--until the President 
certifies that the UNDP has terminated its activities in and 
for Burma.
    The Committee notes that the legitimate democratic 
representatives of the Burmese people have asked the UNDP to 
withdraw completely. Further, it will be impossible under the 
current circumstances for the UNDP to avoid benefitting the 
SLORC regime and its allies.
    International Fund for Agricultural Development.--The 
Committee endorses continued U.S. participation in the 
International Fund for Agricultural Development (IFAD) and has 
provided the full Administration's request for IFAD.
    Section 2102(c)(1) authorizes $445,000,000 for the fiscal 
year 1996 and $345,000,000 for fiscal year 1997 for 
contributions to international peacekeeping activities. The 
Committee notes that the funds authorized in fiscal year 1996 
match the Administration's request.
    Sec. 2102(c)(2)--Limitation on Use of Assessed Peacekeeping 
Funds for Contributions to UNPROFOR:
    The limitation on the use of funds authorized to be 
appropriated for ``Contributions for International Peacekeeping 
Activities'' for contributions to the United Nations Protection 
Force (UNPROFOR) in Bosnia and Herzegovina reflects serious 
concerns within the Committee about that peacekeeping 
operation. The UNPROFOR operation is by far the most expensive 
United Nations peacekeeping operation, accounting for nearly 
half of the Administration's Fiscal Year 1996 request for 
``Contributions for International Peacekeeping Activities.'' 
That the long-term viability of the operation is in doubt was 
underscored by the Administration's decision to request funding 
for only the first six months of Fiscal Year 1996.
    The Committee believes that, after some initial successes, 
UNPROFOR increasingly has proven unable to carry out its 
mandate. The continued presence of UNPROFOR in Bosnia and 
Herzegovina in many respects has become an excuse for inaction 
by the parties to the conflict and by the international 
community. At some point, the United Nations may have lost 
sight of the fact that the objective of its policy in Bosnia is 
not to keep UNPROFOR on the ground, but to facilitate a just 
settlement of the conflict.
    The parties to the conflict have taken advantage of this 
confusion on occasion by threatening to expel UNPROFOR, as if 
they were doing the United Nations a favor by permitting 
UNPROFOR to remain in the former Yugoslavia. The United Nations 
has ratified this behavior by negotiating the terms of 
UNPROFOR's continued presence. In a similar vein, the United 
Nations has overlooked military provocations, detention of its 
personnel, serious human rights violations, and countless other 
humiliations in order to keep UNPROFOR on the ground. These 
types of compromises have undermined respect for UNPROFOR and 
exacerbated the operation's ineffectiveness.
    The criteria that must be satisfied before peacekeeping 
funds may be provided for UNPROFOR are designed to assist the 
Administration in evaluating whether UNPROFOR is a worthy 
investment or has become a costly and ineffective band-aid. If 
the latter, the criteria will compel cessation of U.S. 
financial support for the operation.
    The Committee hopes that this prospect will concentrate the 
attention of the parties on the need for them to seriously 
negotiate an end to the conflict. It should also induce the 
international community to consider alternatives to current 
policy in the event that the conflict persists and UNPROFOR 
remains unable effectively to carry out its mandate.
    Section 2102(d) authorizes to be appropriated $68,260,000 
in fiscal year 1996 and $68,260,000 in fiscal year 1997 for 
voluntary contributions to peacekeeping operations.
    Section 2102(e) authorizes to be appropriated $5,000,000 
for fiscal year 1996 and $6,000,000 for fiscal year 1997 for 
international conferences and contingencies. The provision 
makes available an additional $1,000,000 in fiscal year 1996 if 
certain conditions are met by the Department of State. The 
additional funds would be made available if the Secretary of 
State certifies to Congress that no funds of the Department of 
State were expended for travel by any U.S. official or delegate 
to the Fourth World Conference on Women; or that the United 
States vigorously urged the United Nations to grant 
accreditation to a wide range of nongovernmental organizations 
including United States-based groups representing Taiwanese and 
Tibetan women in accordance with relevant international 
standards; that the U.S. encouraged the Government of China and 
the United Nations to provide the accredited nongovernmental 
organizations with access to the main conference site that is 
substantially equivalent in manner and degree to access 
afforded at previous major United Nations conferences; that the 
U.S. delegation vigorously and publicly supported access by 
representatives of accredited nongovernmental organizations to 
the conference especially with respect to U.S. nongovernmental 
organizations; that the U.S. delegation vigorously promoted 
universal respect for human rights; and that if the standards 
of previous conferences are not met regarding access and 
accommodation for nongovernmental, that the United States has 
made a formal, public protest to the United Nations.
    The Committee is deeply concerned that the United Nations 
has been unduly restrictive in accrediting nongovernmental 
organizations to the Fourth World Conference on Women, which is 
to be held in Beijing in September 1995. Furthermore, the 
Chinese government is not providing adequate facilities to 
enable the parallel nongovernmental forum to be held in such a 
way as to provide the nongovernmental organizations with access 
to the main conference.

Sec. 2103--International Commissions
    Section 2103 authorizes appropriations for the 
international commissions account of the Department of State, 
to fulfill the U.S. share of treaty and other international 
obligations involving Canada, Mexico and other countries on 
international boundary and fisheries matters.
    Section 2103 authorizes to be appropriated $13,858,000 for 
fiscal year 1996 and $12,472,000 for fiscal year 1997 for 
salaries and expenses of the International Boundary and Water 
Commission, United States and Mexico; $10,393,000 for fiscal 
year 1996 and $9,353,000 for fiscal year 1997 for construction 
activities of the Commission; $740,000 for fiscal year 1996 and 
$666,000 for fiscal year 1997 for the International Boundary 
Commission, United States and Canada; $3,500,000 for fiscal 
year 1996 and $3,195,000 for the fiscal year 1997 for the 
International Joint Commission; $14,669,000 in fiscal year 1996 
and $13,202,000 for fiscal 1997 for the International Fisheries 
Commissions.

Section 2104--Migration and Refugee Assistance

    Section 2104(a) authorizes to be appropriated $560,000,000 
for fiscal l996 and $590,000,000 for fiscal year 1997 for 
migration and refugee assistance. In addition it authorizes 
$80,000,000 in fiscal year 1996 and $80,000,000 for fiscal year 
1997 for refugees resettling in Israel; authorizes $1,500,000 
in fiscal year 1996 and $1,500,000 in fiscal year 1997 for 
displaced Burmese; and $30 million in fiscal year 1996 for 
resettlement of Vietnamese, Laotians and Cambodians. The total 
funding for the above listed activities is $671,500,000 for 
fiscal year 1996 and $671,500,000 for fiscal year 1997.
    Subsection (a)(2) authorizes $80,000,000 for fiscal years 
1996 and 1997 for refugees resettling in Israel. The Committee 
recommends continuation of this program based on need. Between 
65,000 and 70,000 Jews are expected to arrive in Israel this 
year from the former Soviet Union. Since 1989 Israel has 
absorbed over one-half million refugees, primarily from the 
Soviet Union and Ethiopia. This massive influx has severely 
strained the resources of the government of Israel. U.S. 
government funding helps by underwriting the part of the cost 
of the resettlement of the refugees. None of the funds are used 
for programs outside the pre-1967 borders of Israel.
    Subsection (a)(3) authorizes $1,500,000 for fiscal year 
1996 and $1,500,000 for fiscal year 1997 for assistance to 
displaced Burmese.
    Subsection (a)(4) authorizes $30,000,000 for fiscal year 
1996 for admission and resettlement of certain Southeast Asian 
refugees who are in the high-risk categories identified by the 
``Lautenberg Amendment''; who served with United States forces 
or in the former government of South Viet Nam, religious 
refugees, or are members of the Hmong ethnic minority from 
Laos.
    Subsection (b) prohibits expenditures on programs involving 
repatriation to Viet Nam, Laos, or Cambodia until the President 
certifies that resettlement offers have been made to those in 
high-risk categories and that others have been offered access 
to a fair and effective process for the determination of 
refugee status.
    Section 2104(c) requires that funds appropriated pursuant 
to this section remain available until expended.
    Section 2104(d) defines ``refugee camp'' to mean any place 
in which people who left Vietnam, Cambodia, or Laos are housed 
or held by a government or international organization.

Section 2105 Certain Other International Affairs Programs

    Section 2105 authorizes to be appropriated $10,000,000 for 
fiscal 1996 and $9,000,000 in fiscal year 1997 for the Asia 
Foundation.
    There remains substantial support on the Committee for the 
efforts of the Asia Foundation, particularly in the area of 
democracy building and human rights. The benefits to American 
foreign policy from the non-official presence of the Foundation 
in the Asian region are understood and acknowledged by the 
Committee.

Section 2106--United States Informational, Educational and Cultural 
        Exchange Programs

    Section 2106 authorizes to be appropriated the following 
amounts for international information activities, and 
educational and cultural exchange programs:
          (1) $450,645,000 for the fiscal year 1996 and 
        $428,080,000 for fiscal year 1997 for salaries and 
        expenses;
          (2) $5,050,000 for the fiscal year 1996 and 
        $5,050,000 for fiscal year 1997 for the Technology 
        Fund;
          (3) $117,484,200 for fiscal year 1996 and 
        $113,680,800 for fiscal year l997 for Fulbright 
        Academic Exchanges Programs;
          (4) $900,000 for fiscal year 1996 and $900,000 for 
        fiscal year 1997;
          (5) $800,000 for fiscal year 1996 and $800,000 for 
        fiscal year 1997 for East Timorese Scholarships;
          (6) $141,000 for fiscal year 1996 and $141 for fiscal 
        year 1997 for Cambodian Scholarships;
          (7) $500,000 for fiscal year 1996 and $500,000 for 
        fiscal year 1997 Tibetan Exchanges;
          (8) $87,265,800 for fiscal year 1996 and $87,341,400 
        for fiscal year l997 for other educational exchange 
        programs;
          (9) $321,191,000 for fiscal year 1996 and 
        $286,191,000 for fiscal year 1997 for international 
        broadcasting activities;
          (10) $75,164,000 for fiscal year 1996 and $67,647,000 
        for fiscal year 1997 for Radio Construction;
          (11) $10,000,000 for fiscal year 1996 and $10,000,000 
        for fiscal year 1997 for Radio Free Asia;
          (12) $24,809,000 for fiscal year 1996 and $24,809,000 
        for fiscal year 1997 for Broadcasting to Cuba;
          (13) $4,300,000 for fiscal year 1996 and $3,870,000 
        for fiscal year 1997 for the Office of the Inspector 
        General;
          (14) $15,000,000 for fiscal year 1996 and $10,000,000 
        for fiscal year 1997 for the Center for Cultural and 
        Technical Interchange between East and West;
          (15) $34,000,000 for fiscal year 1996 and $34,000,000 
        for fiscal year 1997 for the National Endowment for 
        Democracy;
          (16) $4,000,000 for fiscal year 1996 and $3,000,000 
        for fiscal year 1997 for the Center for Cultural and 
        Technical Interchange between North and South.
    International Broadcasting.--The Committee believes that 
international broadcasting continues to be important to and 
supportive of American foreign policy objectives. Furthermore, 
while commercial media sources have an increasingly global 
reach, they do not necessarily communicate a message that is 
culturally relevant or in the appropriate language for the 
foreign audience. The Committee would encourage the USIA to 
explore options for supporting broadcasting activities through 
sale of commercial time and encouraging further privatization 
of language services.
    Exchange Programs.--Educational and cultural exchanges are 
an important tool of American foreign policy. Exchanges advance 
mutual understanding through the interchange of people, ideas 
and knowledge. In the opinion of the Committee, mutual 
understanding is important to maintaining a peaceful world. 
Prudent programs designed to increase mutual understanding are 
needed, even with constrained budgets.
    Exchanges allow current and potential opinion leaders to 
travel to the United States and see the American system for 
themselves. While America no longer faces a cold war adversary, 
many foreign ideologues paint this country in dark tones. The 
ability of American national leaders to influence these 
individuals begins with disabusing them of such notions. First-
hand exposure is one of most effective ways to accomplish that 
end.
    The Committee supports exchanges that bear directly on the 
political relations between the United States and foreign 
countries. It is important to bringing foreign political 
leaders to the United States through programs such as those of 
the Institute for Representative Government and through other 
organizations running similar programs.
    In the past, the funding of numerous scholarship and/or 
exchange programs under a general heading such as ``Other 
Programs,'' with discretion implicitly vested in USIA to fund 
or not to fund specific programs, has led to the non-funding of 
certain programs, such as the East Timorese scholarships.
    By means of specific allocations, the House seeks to 
guarantee its policy objective of injecting a strong element of 
human rights concern into the student exchange programs. In 
addition to helping future leaders get to know the United 
States, it is hoped that these programs will also be a source 
of information about the situation in the named countries, and 
will signal to the rulers of those countries that in order to 
obtain American training for their promising students, they 
will have to accept the ``risk'' that American notions of 
democracy and open government will be brought home.
    This policy interest is particularly keen with regard to 
Hong Kong. The Hong Kong Scholarship (Section 2403) is 
introduced this year as a response to the fact that Hong Kong 
will come under the control of the People's Republic of China 
during the authorization cycle covered by this bill.
    Freedom Support Act.--The Committee understands that USIA's 
fiscal year 1996 budget request for international exchange 
programs included an assumption of $40 million for programs 
authorized by the Freedom Support Act. Previously these funds 
were appropriated to the Agency for International Development 
and transferred to USIA to administer. Given that the overall 
funding for exchange programs has been reduced below the 
Administration request and the fiscal year 1995 appropriated 
level, the Committee believes that the Freedom Support Act 
programs should share in the reduction. The Committee expects 
that of the total funds authorized to USIA for international 
education and exchange programs, $32 million will be available 
for the exchange programs for the Newly Independent States 
(NIS). The Committee would expect any sums transferred to USIA 
from AID or other agenices for education and exchange programs 
in the NIS will be in addition to the $32 million in USIA funds 
allocated to this purpose.
    In view of the reduced level of funding for programs in the 
NIS, the Commmittee suggests that an appropriate balance be 
achieved in the allocation of funds among the secondary schools 
exchange program and other exchange and training programs with 
the NIS.
    The Committee finds the secondary school program to be 
worthwhile. The effort to provide high school students from 
Russia, Ukraine and the other newly independent states with the 
opportunity to participate in American society and to return to 
their home countries with insights into the American models of 
democratic government and private enterprise enjoys bipartisan 
support.
    The committee recognizes however that other programs in the 
NIS run by USIA are equally important to the goal of advancing 
democratic political reform and market based economic 
transformation in the former Soviet Union.
    Claude and Mildred Pepper Scholarship Program.--The 
Committee recognizes the valuable contributions of the 
Executive Education Program for Central European Business and 
Professional Leaders in facilitating a smooth transition to a 
market economy in the new republics of Central Europe. The 
Committee also recognizes this leadership program as a 
component of the Claude and Mildred Pepper Scholarship Program 
of the Washington Workshops Foundation. The authorization for 
the Pepper Scholarship Program includes the leadership program 
as well as the ongoing democracy studies program.
    Administrative Funds.--Section 2106(3) authorizes 
appropriations for various educational and cultural exchange 
programs. The Committee expects that up to $14,500,000 of the 
amounts authorized to be appropriated under subsections (A) and 
(F) may be made available for each of the fiscal years 1996 and 
1997 for exchange support activities.
    Section 2106(3)(b) South Pacific Exchanges. This authorizes 
funds for an academic scholarship and exchange program 
promoting better relations between the United States and 
developing nations in the South Pacific region by enabling 
qualified students from the Cook Islands, Kiribati, Niue, 
Tonga, Tuvalu, Western Samoa, Fiji, Papua New Guinea, the 
Solomon Islands, and Vanuatu to pursue undergraduate and 
postgraduate study at institutions of higher learning in the 
United States.
    Section 2106(9) The East West Center. The Committee 
recognizes the unique contribution of the East-West Center to 
the fostering of close relations between the people of the 
United States and Asia. The Committee believes, however, that 
the Center must make greater efforts to attract funding from 
private sources and from Asian and Pacific governments, which 
have benefited greatly over the years from the Center's 
programs. In addition, in making any necessary program cuts, 
the Committee encourages the Center to retain or enhance those 
programs most closely targeted to U.S. foreign policy 
objectives, such as the APEC Education Initiative.
    Book Donation.--The Committee suggests that USIA continue 
the funding for logistic and warehouse support for non-
governmental organizations undertaking book donations abroad. 
These programs can serve information and training needs in 
developing countries and can assist in opening new markets for 
U.S. businesses.

Section 2107--United States Arms Control and Disarmament Agency

    Section 2107 authorizes to be appropriated $44,000,000 for 
fiscal year 1996 and $40,500,000 for fiscal year 1997 for the 
Arms Control and Disarmament Agency. The section also 
authorizes such sums as may be necessary for each of the fiscal 
years 1996 and 1997 for increases in salary, pay, retirement, 
other employee benefits authorized by law, and to offset 
adverse fluctuations in foreign currency exchange rates.
    The Committee notes that $12,000,000 of the $17,000,000 
requested by the Administration for assessed contributions 
under the Chemical Weapons Convention is assumed to be included 
in the assessed contributions to international organizations 
account, and the Committee does not intend that such 
contributions be paid from this account.
    The Committee does not provide an authorization of 
appropriation for the Cobra Dane facility. The Administration's 
budget request proposes to fund the program within ACDA rather 
than from the Defense budget as has been the case in previous 
years. The Committee believes that the facility should continue 
to be funded out of the DoD budget as is the On-Site Inspection 
Agency which is responsible for the technical aspects of 
monitoring and verification of the START I Treaty. The 
Committee urges ACDA to reopen discussions with the Office of 
Management and Budget with regard to the funding of this 
facility.

Section 2201--Revision of Department of State Rewards Program

    Section 2201 raises to $15 million the funds available for 
the payment of rewards program for the purposes of preventing 
acts of terrorism, and narcotics offenses. It also allows 
rewards to be paid for help in preventing counterfeiting of 
U.S. currency by state sponsors and others supporting 
international terrorism. The Secretary is required to submit a 
report to Congress when a reward payment is made, as well as an 
annual report that summarizes all rewards or expenditures made 
from this account, and requests for rewards payments that were 
denied.
    The rewards program is an important tool for capturing 
fugitives abroad in cases of terrorism and narcotics related 
offenses. It is in our vital national interest.
    In order to be fully effective, funds must be available to 
pay rewards. Therefore, the Committee has provided that if 
necessary, fees collected from the machine readable visa (MRV) 
be available for the payment of a reward if there are 
insufficient funds available in the rewards account. The MRV 
fees are to be used only in extraordinary circumstances.
    In addition, the Committee has added sense of Congress 
language recommending long needed asset forfeiture authority 
for the State Department to make its visa and passport fraud 
investigations more effective. The proceeds from the 
forfeitures should be retained to carry out the purposes of the 
rewards program.

Sec. 2202--Authorities of the Secretary of State

    Section 2202 amends the Basic Authorities Act to require 
that either the Director of the Office of Foreign Missions or 
the next most senior officer be an individual who has served in 
the intelligence community. Current law is permissive on this 
point.
    Sec. 2203--Buying Power Maintenance Account.--This 
provision permits the transfer of expired, unobligated balances 
into the no-year Buying Power Maintenance Account, subject to 
compliance with congressional reprogramming requirements. The 
Department maintains that paragraph (D), which makes such 
transfers subject to advance appropriations, is unnecessary and 
has made the transfer authority unworkable. Striking paragraph 
(D) enables the Department to transfer expiring balances with 
greater flexibility.

Section 2204--Expenses relating to certain international claims and 
        proceedings

    Section 2204(a) allows the Department to accept, in certain 
cases, reimbursement from private sector claimants for tribunal 
expenses, salaries, and other ordinary expenses.
    Section 2204(b) amends the State Department Basic 
Authorities Act to enable the Department to use personal 
services contracts to obtain expert and other support services 
for international claims and proceedings. Currently the law 
allows the Legal Advisor's Office to obtain these services by 
contracting with firms. In many cases the same services could 
be obtained at half the cost by contracting with an individual.

Section 2205--Consolidation of U.S. diplomatic Missions and consular 
        posts

    Section 2205 requires the Secretary of State to prepare a 
world wide plan for the consolidation, wherever practicable, on 
a regional or area wide basis of U.S. missions and consular 
posts abroad. This plan is to be submitted to the appropriate 
committees of Congress not later than 180 days after the date 
of the enactment.
    As the Secretary of State develops this worldwide plan 
there should be a recognition of the unique value of the U.S. 
diplomatic mission to the North Atlantic Treaty Organization, 
the mission to the European Union in Brussels, and the U.S. 
consulate covering the activities of the Council of Europe and 
the European Parliament in Strasbourg, France. These missions 
have broad responsibility for representing U.S. security and 
economic interests in Europe. The Committee is mindful that 
these organization's responsibilities cannot be duplicated by 
our bilateral missions in Brussels and Paris.

Section 2206--Denial of Passports to Noncustodial Parents Subject To 
        State Arrest Warrants in Cases of Nonpayment of Child Support
    Section 2206 allows the Secretary of State to refuse to 
issue a passport, or to revoke, restrict, or limit a passport 
in any case in which the Secretary of State determines or is 
informed by a competent authority that the applicant or 
passport holder is a noncustodial parent who is the subject of 
an outstanding arrest for nonpayment of child support.

Section 2207--Capital Investment Fund

    Section 2207 amends how the fund may be used so that the 
Department is able to do in-house upgrades rather than 
contracting out for these activities. It also requires a 
Congressional reprogramming notification to be made at the time 
when monies are to be expended from the fund.

Section 2208--Efficiency in Procurement

    Section 2208 allows US agencies operating overseas to 
participate in existing contracts rather than being required to 
let new contracts for services.

Section 2209--Training

    Section 2209 Allows the US Department of State to provide 
training for employees of U.S. companies operating overseas on 
a reimbursable basis. In addition, this section allows the 
Department to provide foreign language training on a 
reimbursable basis to Members, officials and employees of the 
U.S. Congress.

Section 2210--Lease-Purchase Agreements

    Section 2210 revises current scoring procedures so when the 
Department of State enters into lease-purchase agreements 
involving property in foreign countries it can score the budget 
authority on an annual basis over the period of the lease in an 
amount equal to the annual lease payments.

Sec. 2231--Surcharge for processing machine readable visas.

    Section 2231 extends for fiscal year 1996 and fiscal year 
1997 the ability of the State Department to collect and retain 
fees from the issuance of machine readable visas. The cap on 
the collection of fees is increased to $250 million. The 
provision has been modified to make clear that the fees 
retained are to be used to cover the costs of installation and 
operation of the machine readable visa process, improvements in 
the quality and security of passports, investigations of 
passport and visa fraud, and the technology to support these 
activities. In particular, fees should be dedicated to 
accelerating the modernization and extension of machine 
readable technology and automated name check capability to all 
non-immigrant visa issuing posts. The Committee considers these 
activities to be a top priority for the Department of State and 
the Bureau of Consular Affairs.

Section 2232--Modification of fingerprint check requirement

    Section 2232 modifies the fingerprint requirement for 
immigrant visa applicants established in the FY95 Commerce 
Justice State Appropriations Act (Sec. 505 of PL 103-317). The 
purpose of this amendment is to target more accurately the 
fingerprinting resources to persons who may have a criminal 
record in the United States. The revision requires the 
fingerprinting of individuals 16 years of age, who have at some 
time been in the U.S. and have been determined to have a 
criminal history record under subsection (d)(1) of Sec. 
140(e)(1) of P.L. 103-236, the Foreign Relations Authorization 
Act for Fiscal Years 1994/95.

Sec. 2233--Use of certain passport processing fees for enhanced 
        passport services

    Section 2233 requires that ten percent of the funds 
generated by the expedited passport fee be dedicated 
exclusively to enhancing passport services for U.S. citizens, 
improving the integrity and efficiency of the passport issuance 
process, improving the secure nature of the passport, 
investigating passport fraud, and deterring entry into the U.S 
by terrorists and other criminals.

Sec. 2234--Consular Officers

    Section 2234 is aimed at furthering improvements in the 
efficiency of consular staffing abroad. The Secretary of State 
is currently authorized to designate U.S. citizen employees 
abroad (other than consular officers) to perform notarial and 
passport services. These provisions permit U.S. citizen 
employees abroad, who are not consular officers, to perform 
additional consular functions, including the issuance of 
certificates of birth abroad, the authentication of foreign 
documents, the administration of nationality provisions in 
Title III of the Immigration and Nationality Act, and the 
administration of oaths for patent purposes.

Sec. 2251--U.S. emergency migration and refugee assistance fund

    Section 2251 amends the Migration and Refugee Assistance 
Act (P.L. 87-510) to specify Congressional notification 
requirements for use of funds under the Act. This provision 
requires a 15-day notification to Congress of the drawdown of 
funds from the Emergency Refugee and Migration Account. A 
waiver of this notification is permitted under emergency 
situations.

Sec. 2252--Persecution for Resistance to Coercive Population Control 
        Methods

    Section 2252 provides that forced abortion, forced 
sterilization, or persecution for resistance to such measures 
are ``persecution on account of political opinion'' within the 
meaning of the refugee definition in the Immigration and 
Nationality Act. It is intended to overrule administrative law 
decisions holding that subjection to such measures is not 
ordinarily persecution on account of political opinion. This 
section would effectively reinstate the interpretation of the 
law that was reversed by an Immigration and Naturalization 
Service order on August 5, 1994.
    This section will ensure that people whose asylum or 
refugee claims are based on forced abortion or sterilization, 
such as many of those who arrived on the vessel Golden Venture 
in 1993, and who have been detained for nearly two years, will 
receive a speedy adjudication of their cases and that this 
adjudication will be based on a careful and sensitive 
application of the principles underlying our refugee laws.

Section 2253--Report to Congress concerning Cuban emigration policies

    Section 2253 requires periodic reports on the Cuban 
government's methods of enforcing its 1994 and 1995 anti-
immigration agreements with the United States, on treatment of 
persons returned to Cuba under the 1995 agreement and on the 
methods used by the United States to monitor such treatment and 
enforcement.

Sec. 2254--United States policy regarding the involuntary return of 
        refugees

    Section 2254 provides that no funds authorized by this Act 
be used for the involuntary return of any person to a country 
in which he or she has a well-founded fear of persecution. It 
would not prohibit funding for the return of people who had 
been found to be non-refugees by any process genuinely 
calculated to detect a well-founded fear of persecution.

Sec. 2255--Extension of certain adjudication provisions
    Section 2255 extends the ``Lautenberg Amendment,'' which 
identifies certain high-risk refugee categories and provides 
that applicants in these categories are presumed to be refugees 
if they assert both a fear of persecution and a credible basis 
for their fear of persecution. This standard is somewhat more 
generous than the general ``well-founded fear'' status. The 
high-risk categories include nationals or residents of an 
independent state of the former Soviet Union or Estonia, 
Latvia, or Lithuania who are Jews or evangelical Christians, as 
well as certain Southeast Asians. The provision would also 
extend until Oct. 1, 1997 the Attorney General's ability to 
adjust the status of aliens who are nationals of an independent 
state of the former Soviet Union, Estonia, Latvia, Lithuania, 
Vietnam, Laos, or Cambodia and were granted parole into the US 
after August 14, 1988, to the status of aliens lawfully 
admitted for permanent residence.

Section 2301--Coordinator for Counterterrorism

    Section 2301 makes permanent the office of the Coordinator 
for Counterterrorism, and retains the reporting line directly 
to the Secretary of State.

Section 2302--Special envoy for Tibet

    Section 2302 requires the establishment of a special envoy 
to Tibet within the State Department. The Special Envoy is 
authorized to promote substantive negotiations between the 
Dalai Lama or his representatives and senior members of the 
Chinese government.
    Through this special envoy, the United States demonstrates 
its continued support for His Holiness the Dalai Lama in his 
quest for a peaceful resolution to the situation in Tibet 
through negotiations with the Chinese government.
    This provision also authorizes the special envoy to build 
relations with representatives of the Tibetan Government in 
exile and to travel to Tibet and Tibetan refugee settlements. 
The special envoy would report to Congress and the Secretary of 
State on U.S. policies relevant to Tibet.
    This provision calls attention to the discriminatory 
practices engaged in by the Chinese government against the 
Tibetan people, highlighting the fact that the Tibetans are 
prevented from meaningful participation in decision-making as 
well as in designing development programs which effect the 
Tibetan people. This has led to the further marginalization of 
the Tibetan people.

Section 2303--Establishment of Coordinator for Human Rights and 
        Refugees and Bureau of Refugee and Migration Assistance

    Section 2303 establishes a Coordinator for Human Rights and 
Refugees within the Office of the Secretary of State. It also 
establishes a statutory bureau of Refugee and Migration 
Assistance. The Coordinator for Human Rights and Refugees would 
supervise the Bureau of Refugee and Migration Assistance and 
the Bureau of Democracy, Human Rights, and Labor, and would 
report directly to the Secretary of State. This provision is 
intended to unify the functions of the Department relating to 
refugees and human rights, to put an end to the present 
situation in which the bureau charged with administering 
refugee assistance programs also performs unrelated functions, 
and to ensure that refugee and human rights concerns will be 
represented by an official with direct and regular access to 
the Secretary and other senior foreign policy decision makers.

Section 2304--Elimination of statutory establishment of certain 
        positions of the Department of State

    Section 2304 eliminates the statutory requirements for an 
Assistant Secretary of South Asian Affairs, an Assistant 
Secretary for Oceans, Environment and Science and the Deputy 
Assistant Secretary for Burdensharing. This provides the 
Secretary of State with greater discretion to organize the 
Department.

Section 2305--Establishment of Assistant Secretary of State for Human 
        Resources

    Section 2305 establishes an Assistant Secretary for Human 
resources and requires that the position be occupied by a 
professional in the field personnel and human resources 
management. This is intended to change the current structure 
where the Director General of the Foreign Service is also the 
Director of Personnel.
    The purpose of this section is to emphasize that broad-
based principles of personnel administration--and not just the 
special needs of administering the foreign service--are to 
receive top priority in the administration of foreign affairs. 
As employment patterns in the State Department lean more 
heavily on the talents of the civil service personnel--
especially with the pending consolidation of the foreign 
affairs agencies--personnel matters deserve priority attention. 
It is the intent of the Committee that the Director General of 
the Foreign Service retain current policy and management 
responsibilities and report to the Secretary through the 
Assistant Secretary for Human Resources to ensure the 
coordination of all personnel policies.

Section 2306--Authority of United States Permanent Representative to 
        the United Nations

    Section 2306 is intended to improve the coordination of 
United States foreign policy by clarifying that the United 
States Permanent Representative to the United Nations is 
subordinate to the Secretary of State and takes policy 
direction from the Secretary. The provision addresses the 
confusion that can arise from the fact that some Presidents 
have chosen to give the Permanent Representative Cabinet rank. 
The provision does not preclude Presidents from elevating the 
Permanent Representative to the Cabinet, but it underscores 
that such elevation does not accord the Permanent 
Representative a role in the formulation and conduct of foreign 
policy equal to that of the Secretary of State. This change is 
consistent with Division A of this Act which is intended to 
concentrate responsibility for the conduct of foreign affairs 
in the Secretary of State.

Section 2351--Authorized Strength of the Foreign Service

    Section 2351 imposes specific limits on the total number of 
Foreign Service personnel and on the number of Foreign Service 
personnel who are members of the Senior Foreign Service. The 
levels are specified for the Foreign Service at USIA, AID and 
Department of State. This is an extension of current law with 
adjustments made to reflect the continued ``right sizing'' of 
the Foreign Service.

Section 2352--Repeal of authority for Foreign Service performance pay

    Section 2352 repeals section 405 of the Foreign Service Act 
that provides for the payment of performance pay. The 
Department has elected not to award performance payments in 
recent years.

Section 2353--Recovery of Costs of Health Care Services

    Section 2353 authorizes the Department of State to recover 
and retain the costs incurred by the Department for health care 
services provided to eligible employees and their families. The 
provision permits the recovery and retention of such costs from 
third-party payers and to recover directly from the employee if 
the employee chooses to be uninsured.

Section 2401--Elimination of permanent authority

    Section 2401 eliminates the permanent authorization of the 
North/South Center to conform it to similar centers that are 
authorized every two years in the Foreign Relations 
Authorization Act.

Section 2402--Extension of Au Pair programs

    Section 2402 extends the Au Pair program for two years 
through fiscal year 1997.

Section 2403--Education and cultural exchanges in Hong Kong
    Section 2403 requires the Director of USIA to conduct 
exchange programs with Hong Kong.

Section 2404--Conduct of educational and cultural exchange programs

    Section 2404 states that the Director of USIA shall seek to 
provide opportunities for participation in exchange programs 
for human rights and democracy leaders from countries including 
Hong Kong, China, Vietnam, Cambodia, Tibet, Burma, and East 
Timor.

Section 2405--Educational and cultural exchanges and scholarships for 
        Tibetans and Burmese

    Section 2405 requires the Director of USIA to establish 
exchange programs with the people of Tibet. It requires that at 
least 30 scholarships shall be available to Tibetan students 
and professionals who are outside Tibet and at least 15 
scholarships shall be available for Burmese students and 
professional outside Burma. A waiver provision is included if a 
sufficient number of qualified students can not be found.
    The Tibetan people inside Tibet have been isolated from the 
international community for almost fifty years. It is extremely 
rare that Tibetans are able to participate in US-PRC exchanges, 
and when they do, they are hand-picked communist party members. 
This program seeks to provide opportunities for a wider pool of 
Tibetans--give them exposure to the free world--where their 
efforts to secure peace and democracy can be bolstered.
    It is the opinion of the Committee that American 
organizations with expertise inside Tibet such as the Tibet 
Fund and the International Campaign for Tibet, will be able to 
identify participants inside Tibet who would benefit most from 
cultural and educational exchanges with the United States.
    Thousands of refugees each year make the harrowing escape 
from Tibet, across the Himalayas, into Nepal and Tibet. As the 
ever-expanding refugee community requires more skilled leaders 
and coordinators to function, the need for the Fulbright 
Scholarship program continues to grow in importance.

Section 2406--Availability of VOA transcripts

    Section 2406 permits university level linguistic 
researchers to use VOA and Radio Marti transcripts for the 
purposes of research. This authority sunsets in 5 years from 
date of enactment.

Section 2407--Retention of interest

    Section 2407 allows grantees of the National Endowment for 
Democracy, with the approval of the grantor, to deposit their 
grant money in interest-bearing accounts and use the interest 
for the purposes for which the grant was made. The Committee 
intends that this authority will only be used in the case of 
small grants where it is not cost effective to require the 
return of the interest earned to the U.S. Treasury.

Section 2408--USIA office in Kosova

    Section 2408 states the director of the USIA shall seek to 
establish an office in Pristina, Kosova. This office would 
serve an invaluable role in disseminating information about the 
United States, promoting discussions on human rights, 
democracy, rule of law, and conflict resolution.

Section 2431--Expansion of Broadcasting Board of Governors

    Section 2431 expands the current board by two, from 9 to 
11, in an attempt to ensure greater diversity of viewpoints 
among board members. It is particularly intended that the Board 
should include members who vigorously support the goals of 
Radio Free Asia, Radio and TV Marti, and other ``freedom 
broadcasting'' programs.

Section 2432--Plan for Radio Free Asia

    Section 2432 requires the Director of the USIA to submit a 
plan to Congress to establish Radio Free Asia no later than 90 
days after the date of enactment of this act.

Section 2433--Pilot project for freedom broadcasting to Asia

    Section 2433 authorizes USIA to make grants for 
broadcasting to Asian countries that do not enjoy freedom of 
expression pending establishment of Radio Free Asia. It is 
intended to guarantee that broadcasting of the type that will 
eventually be presented by Radio Free Asia is available to 
people in these countries during the time it will take for 
Radio Free Asia to become fully operational.
    The provision also requires the Director of the USIA to 
submit to Congress the plan for implementing this section which 
shall include details concerning a timetable for 
implementation, grant criteria, and grant application 
procedures. The procedures and timetable should be designed to 
ensure that grantees will begin broadcasting no later than 120 
days after the date of enactment of this Act.
    This interim broadcasting activity is deemed important 
because of the lack of progress by the Administration to 
fulfill obligations to appoint a Broadcasting Board of 
Governors and to proceed with Radio Free Asia. Additional 
targeted broadcasting into Asia is necessary to provide news 
relevant to people in the region struggling for democracy.
    To facilitate this broadcasting program, USIA is authorized 
to make grants to organizations that have an expertise in the 
pro-democracy and human rights movements of Asia.

Section 2501--International Boundary and Water Commission (IBWC)

    Section 2501 clarifies the authority of the U.S. Section of 
the IBWC with regard to the reach of the Rio Grande from the 
Percha Diversion Dam in New Mexico to the American Diversion 
Dam in El Paso, Texas. This provision would permit the U.S. 
Section to stabilize the river channel within the Rio Grande 
Canalization Project .

Section 2521--Reform in budget decision making procedures of the United 
        Nations

    Section 2521 extends current law allowing the President to 
withhold up to 20 percent of appropriated funds for the United 
Nations or certain of its specialized agencies if the UN or the 
agency fails to implement or to continue to implement 
consensus-based budget decision-making procedures. This is to 
ensure that the U.S. and other major contributors to UN agency 
budgets have an appropriate influence in the budget decision 
making processes of international organizations.
    Subsection (b) requires the President to notify Congress 
when a decision is made to withhold funds under subsection (a) 
and when a decision is made to pay any previously withheld 
amounts.
    Subsection (c) clarifies that the Department of State may 
also make arrearage payments for assessed contributions in 
prior years without regard to subsection (a) of this section or 
other similar provisions, provided such payments would further 
US interests in the organization to which payment is made.
    Subsection (d) requires the President to submit a report to 
the Congress not later than February 1 of each year, concerning 
the amount of the US assessed contributions paid to the UN and 
each of its specialized agencies during the preceding calendar 
year.

Section 2522--Limitation on contributions to the United Nations or 
        United Nations affiliated organizations
    Section 2522 prohibits U.S. contributions to the United 
Nations or United Nations affiliated organizations that grant 
full membership to any organization that does not have the 
internationally recognized attributes of statehood.

Section 2523--Report on UNICEF

    Section 2523 requires the Secretary to report on aspects of 
UNICEF's progress, including management reforms and commitment 
to the traditional mission of child health and welfare, with 
particular attention to whether UNICEF has resisted pressure to 
become involved in activities within the scope of 
responsibility of other United Nations agencies.

Section 2524--UN Budgetary and Management Reform

    Sec. 2524(a) amends the UN Participation Act requiring 
withholding at the beginning of Fiscal Year 1996, and in each 
subsequent year, of 20% of the amounts made available for 
assessed contributions to the regular UN budget, 50% of the 
amounts made available for amounts made available for our 
assessed contributions to UN peacekeeping, and all voluntary 
contributions to UN peacekeeping until the President submits an 
annual certification to Congress specifying that:
          (1) the UN has an independent office of Inspector 
        General to conduct audits, investigations and 
        inspections of UN programs;
          (2) the UN has an Inspector General who was appointed 
        by the Secretary General with the approval of the 
        General Assembly and whose appointment was made on the 
        basis of the appointee's integrity and ability in 
        accounting;
          (3) the Inspector General is authorized to make 
        investigations and reports, have access to all records 
        and documents and materials relating to UN programs, 
        have access to any UN official, and have access to all 
        records and officials of UN specialized agencies;
          (4) the UN has fully implemented, and made available 
        to member states, procedures that protect the identity 
        of, and prevent reprisals against, any UN staff member 
        making a complaint or disclosing information to the 
        Inspector General;
          (5) the UN has fully implemented procedures ensuring 
        the compliance with recommendations of the Inspector 
        General;
          (6) the UN has required the Inspector General to 
        issue an annual report and all other reports of the 
        Inspector General are made available to the General 
        Assembly without modification;
          (7) the UN has provided sufficient resources to 
        ensure the effective operation of the office of the 
        Inspector General.
    The Committee notes with concern that the performance of 
this office fails to meet the standards established in law in 
the FY94-95 Foreign Relations Act (Public Law 103-236) insofar 
as the UN has not fully implemented procedures ensuring 
compliance with recommendations of the Inspector General, in so 
far as the office lacks the resources needed to ensure its 
effective operation, and in regard to its failure to protect 
the identity of, and prevent reprisals against, any UN staff 
member making a complaint or disclosing information to the 
Inspector General.
    Section 2524(b) amends Section 11(a) of the UN 
Participation Act by withholding 10% of the amount of funds 
made available for FY97 and in each successive year for U.S. 
assessed contributions to the regular UN budget unless a 
certification has been made by the President to Congress that 
the UN has implemented a system requiring (a) prior 
notification for the submission of all qualified bid proposals 
on all UN procurement opportunities and (b) a public 
announcement of the award of any contract over $100,000.
     It further amends Section 11(b) of the same act for Fiscal 
Year 1997 and in each successive year requiring a 10% 
withholding for the US assessed contribution to the regular 
budget of the UN unless a certification has been made by the 
President to Congress that the procurement regulations of the 
UN prohibit punitive actions, such as the suspension of 
contract eligibility for contractors who challenge contract 
awards.
    It further amends Section 11(c) of the Act for Fiscal Year 
1998 and each subsequent fiscal year requiring a 10% 
withholding for the US assessed contribution to the regular 
budget of the UN unless the President has certified to the 
Congress that the UN has established a contract review process 
for contracts over $100,000.
    It also amends Section 4(d) of the UN Participation Act, as 
amended by section 407 of P.L. 103-236, the Foreign Relations 
Act for Fiscal Years 1994 and 1995, by requiring information on 
contracts won by American firms not only on headquarters 
procurement decided in New York but also on local procurement 
decided on site in each peacekeeping mission around the world.
    The Committee notes that too often the notice of a pending 
contract is received too late to permit a qualified contractor 
to submit a bid. In many of these instances, an ``insider'' 
will enjoy a distinct advantage over other bidders. The 
Committee also notes that at present there is no formal system 
to allow unsuccessful bidders to challenge the awarding of UN 
contracts and that when a contractor complains, for example, 
about the failure of the UN to make prompt payment for goods, 
the contractor can be suspended from eligibility to bid on 
additional contracts.

Section 2601--Applicability of the Taiwan Relations Act

    Section 2601 makes two amendments to the Taiwan Relations 
Act. Section 2601(a) amends the Act to add a new subsection (d) 
to section 3 of the Act. This new subsection reasserts the 
primacy of sections 3(a) and 3(b) of the Taiwan Relations Act 
with regard to United States arms sales to Taiwan. Sections 
3(a) and 3(b) provide in pertinent part that ``the United 
States will make available to Taiwan such defense articles and 
defense services in such quantity as may be necessary to enable 
Taiwan to maintain a sufficient self-defense capability'', and 
that ``[t]he President and the Congress shall determine the 
nature and quantity of such defense articles and services based 
solely upon their judgment of the needs of Taiwan.''
    Subsequent to the enactment of the Taiwan Relations Act, 
and without the approval of the Congress, the Executive branch 
issued a ``Joint Communique of the United States and China'' on 
August 17, 1982, which purported to commit the United States 
``to reduce gradually its sales of arms to Taiwan, leading over 
a period of time to a final solution.'' Insofar as this policy 
statement is inconsistent with sections 3(a) and 3(b) of the 
Act, it is contrary to law and cannot be the policy of the 
United States. The new section 3(d) of the Act is intended to 
underscore this fact.
    The emphasis of the People's Republic of China (PRC) in 
recent years on naval modernization and the acquisition of long 
range strike aircraft has increased Taiwan's exposure to the 
threat of a naval blockade. The PRC has acquired advanced 
conventionally powered submarines of the Russian ``KILO'' 
class, and will likely produce this submarine in China. The 
most effective means of deterring the PRC from contemplating 
the use of a naval blockade to forcibly incorporate Taiwan into 
the PRC is conventionally powered coastal patrol submarines. 
The decision of the Department of State to deny Taiwan's 
request for the transfer of conventionally powered coastal 
patrol submarines or their components to Taiwan has increased 
rather than decreased the likelihood of armed conflict in the 
Taiwan Straits, and therefore raises serious questions under 
sections 3(a) and 3(b) of the Act.
    The new section 3(d) of the Act does not change United 
States law; it reaffirms it. It merely states that the Taiwan 
Relations Act, a law passed by the Congress, has primacy over a 
policy statement issued by the Executive branch. Any policy 
statement which, contrary to sections 3(a) and 3(b) of the Act, 
does not take into account Taiwan's defense needs or the role 
of the Congress and the President in determining such needs is 
invalid as a matter of law.
    Section 2601(b) amends the Taiwan Relations Act to add a 
new subsection (e) to section 4. This new subsection is 
intended to end the Executive branch policy of denying visas 
for travel to the United States to officials of the Government 
of the Republic of China on Taiwan. The Congress has expressed 
its dissatisfaction with this policy on several occasions 
during the past year, but the Administration has chosen to 
disregard the clear view of the Congress. As a last recourse, 
therefore, the new section 4(e) of the Taiwan Relations Act 
will render inapplicable to officials of the Government of the 
Republic of China on Taiwan the statutory authority upon which 
the Executive branch has relied to deny visas to such 
officials.
Section 2602--Bosnia Genocide Justice Act

    Section 2602 expresses the sense of Congress that the 
President should focus on bringing to justice persons 
responsible for genocide, war crimes and other serious 
violations of international human rights law committed in the 
territory of the former Yugoslavia since 1991. The Committee 
urges the President to allow for the collection of relevant 
data on such war crimes and share the information with the War 
Crimes Tribunal and to assist the United Nations in its efforts 
to investigate, prosecute, and try those responsible for the 
atrocities. The provision also requires a report every six 
months describing progress of assisting the War Crimes Tribunal 
for the former Yugoslavia established by the Security Council 
of the United Nations.

Section 2603--Expansion of the Commission for Security and Cooperation 
        in Europe (CSCE)

    Section 2603 expands the CSCE by 8 Commissioners, 4 from 
the House and 4 from the Senate. With this change, the CSCE 
membership would include a total of 13 Senators and 13 
Representatives with seven from the majority and six from the 
minority party of each body. It is the understanding and 
expectation of the Committee that any expansion of the 
membership of the Commission will not result in any increases 
in staff or other support provided by the Commission.

Section 2641--Policy Toward North Korea

    Chapter 2 (encompassing Sections 2641-2645) addresses 
congressional concerns about certain provisions of the Agreed 
Framework and supplies needed additional policy direction to 
the Administration regarding any additional steps towards 
normalization of U.S.-North Korean relations.
    Section 2641 summarizes the findings of Congress regarding 
the salient features of the accord and its inadequacies in 
regard to specific congressional concerns.
    The United States-North Korea nuclear agreement signed last 
October contains troubling risks for important American 
nonproliferation and regional security interests as well as the 
potential to end the threat posed by North Korea's nuclear 
activities. North Korea's behavior to date raises serious 
questions about whether Pyongyang is acting in good faith. 
North Korea apparently has diverted to military use some heavy 
fuel oil in apparent contravention of the agreed purposes of 
interim fuel deliveries, and has continued its relentless 
campaign of harsh denunciations of our ally, South Korea. In 
April, 1995, U.S.-North Korean talks in Berlin were broken off 
prematurely and without agreement due to Pyongyang's refusal to 
accept South Korea as the source of light water reactors to be 
provided under the agreement.
    Section 2642 expresses the Sense of the Congress regarding 
minimum nuclear nonproliferation conditions to be met by North 
Korea.
    Section 2643 makes clear that South Korea is the only 
acceptable source for the light water reactors that are to be 
provided to North Korea under the agreement.
    Section 2644 expresses the Sense of the Congress regarding 
conditions for any further steps towards upgrading relations 
with North Korea. It emphasizes the primacy of the U.S.-South 
Korea relationship by conditioning further steps towards 
upgrading U.S.-North Korea relations on progress towards a 
North-South dialogue and fulfillment of the 1992 North-South 
accord on the denuclearization of the Korean peninsula. The 
same section reinforces the importance of other American 
objectives regarding the Korean Peninsula, including the 
reduction of North Korea's military forces and their 
redeployment away from the Demilitarized Zone, prohibiting the 
deployment of ballistic missiles by Pyongyang, and deterring 
the export of missiles and other weapons of mass destruction.

Section 2645--Restrictions on Assistance to North Korea and the Korean 
        Peninsula Energy Development Organization

    Section 2645 amends the Foreign Assistance Act of 1961 to 
add a new section 620G. This new section will prohibit the 
provision of any U.S. assistance to North Korea or the Korean 
Peninsula Energy Development Organization (KEDO) unless such 
assistance is provided in accordance with otherwise applicable 
requirements and procedures, and unless the President notifies 
the appropriate congressional committees in accordance with the 
reprogramming procedures of section 634A of the Foreign 
Assistance Act and determines that the provision of such 
assistance is vital to the national interests of the United 
States.
    The new section 620G of the Foreign Assistance Act is 
intended to serve two purposes with respect to any U.S. 
financial contributions to implementation of the Agreed 
Framework with North Korea.
    First, the section mandates that any proposed provision of 
U.S. foreign assistance to North Korea or the Korean Peninsula 
Energy Development Organization (KEDO) will be subject to the 
reprogramming procedures of section 634A of the Foreign 
Assistance Act. This ensures that the Committee will be 
notified adequately of the intended provision of such 
assistance and will have the opportunity to consider whether 
the provision of such assistance is warranted in view of North 
Korean behavior.
    The second purpose served by the new section 620G is to 
remove any incentive the Administration otherwise might have to 
provide U.S. assistance to North Korea or KEDO from funds other 
than those authorized for foreign assistance and related 
purposes. The Administration's action in January, 1995, to 
utilize approximately $4.5 million in Defense Department funds 
to purchase heavy oil for delivery to North Korea pursuant to 
the Agreed Framework gave rise to suspicions that the 
Administration wished to avoid restrictions that would have 
applied to the use of foreign assistance funds for such 
purposes.
    Had the Administration sought to provide such assistance 
under the Foreign Assistance Act, the President would have had 
to utilize special waiver authorities to avoid such 
restrictions as the prohibition on providing assistance to 
communist countries (section 620(f) of the Act), and the 
prohibition on providing assistance to countries supporting 
international terrorism (section 620A of the Act). In addition, 
the President would have had to comply with the reprogramming 
procedures of section 634A of the Act. These requirements and 
procedures did not apply to the assistance provided to North 
Korea from Defense Department funds.
    The new section 620G will place the provision of assistance 
to North Korea or KEDO from Defense Department and other non-
foreign assistance funds on an equal footing with the provision 
of such assistance under the Foreign Assistance Act. Under the 
new section 620G, non-foreign assistance funds can be provided 
to North Korea or KEDO only in accordance with the 
reprogramming procedures of section 634A, and only if the 
President makes a determination similar to that required in 
order for the President to exercise the waiver authority of 
section 614 of the Foreign Assistance Act.

Section 2651--United States Policy Concerning the Dictatorship in Burma

    Section 2651(a) states the sense of Congress that the U.N. 
Security Council should impose an international arms embargo on 
Burma, should affirm human rights and protection of minorities, 
condemn Burmese officials responsible for crimes against 
humanity, take steps to encourage multilateral assistance 
programs for refugees from Burma in Thailand and India, and 
reduce U.N. organizations' activities in Burma.
    Section 2651(b) states the sense of Congress that the 
President should reduce the foreign service presence in Burma.

Section 2661--Torture

    Section 2661 provides definitions of the terms used in 
section 2662.

Section 2662--United States policy with respect to the involuntary 
        return of persons subjected to torture

    Section 2662 prohibits the use of funds authorized by this 
Act in the involuntary return of any person to a place in which 
he or she is in serious danger of subjection to torture.

Section 2701--Inter-American Organizations
    Section 2701 states that the Secretary of State should take 
into account the long-term commitment of the United States to 
the affairs of the Western Hemisphere in setting funding levels 
for Inter-American organizations.

Section 2702--Territorial integrity of Bosnia and Herzegovina

    Section 2702 expresses the sense of Congress that the U.S. 
should refuse to recognize the incorporation of any of the 
territory of Bosnia-Herzegovina into the territory of any 
neighboring state or the creation of any new state within the 
borders of Bosnia-Herzegovina. The Committee reiterates the 
U.S. commitment to recognize the territorial integrity of 
Bosnia-Herzegovina as an extension of U.S. recognition of 
Bosnia as a sovereign and independent state on April 7, 1992, 
and its admission as a full participating Member to the United 
Nations and the Organization for Security and Cooperation in 
Europe.

Section 2703--The Laogai system of political prisons

    Section 2703 expresses the sense of Congress that the 
President should condemn the continued existence of the Laogai 
and call upon the Government of the People's Republic of China 
to dismantle it and release all of its political prisoners and 
instructs the diplomatic representatives of the United States 
to support the passage of a resolution condemning the Laogai 
before the U.N. Human Rights Commission.

Section 2704--Concerning the use of Funds to further normalize 
        relations with Vietnam

    Section 2704 expresses a sense of Congress that funds in 
this bill should not be obligated to further normalization of 
relations with the government of Vietnam until that government 
holds free elections, respects human rights, and accounts for 
POWs and MIAs.

Section 2705--Declaration of Congress regarding U.S. Government human 
        rights policy toward China

    Section 2705 expresses the sense of Congress that the 
People's Republic of China government continues to violate a 
broad range of human rights, and requires reports on all 
aspects of the success of the President's 1994 human rights 
policy toward China, as well as on the status of coercive 
population control programs and on prison labor conditions.

Section 2706--Concerning the UN Voluntary Fund for Victims of Torture

    Section 2706 expresses the sense of Congress that the 
Voluntary Fund should develop and support treatment centers for 
torture victims and that the United States should support the 
work of the Special Rapporteur on Torture and the Convention 
Against Torture.

Section 2707--Recommendations of the President for reform of War Powers 
        Resolution

    Section 2707 expresses the sense of Congress that the 
President should transmit to Congress recommendations for 
reform of the War Powers Resolution.

Section 2708--Conflict in Kashmir

    Section 2708 expresses the sense of Congress that the 
United States reiterates the need for all parties to the 
conflict in Kashmir to enter into negotiations and resolve the 
conflict peacefully. It also urges the executive branch to work 
with the parties to the conflict to facilitate a peaceful 
negotiated settlement of the Kashmir conflict.

Section 2709--United States Relations with the Former Yugoslav Republic 
        of Macedonia

    Section 2709 expresses the sense of Congress that the 
Former Yugoslav Republic of Macedonia should be eligible for 
all United States foreign assistance programs including 
programs of the Export-Import Bank and the Overseas Private 
Investment Corporation if the government continues to respect 
the rights of all ethnic minorities.

Section 2710--Sense of the Congress Relating to Indonesia

    Section 2710 expresses the sense of Congress that the 
United States should continue to urge progress in promotion and 
protection of internationally recognized human rights by the 
Government of Indonesia.

Section 2711--Displaced Persons

    Section 2711 expresses the sense of Congress that at least 
$20 million of the amounts made available by the United States 
to the United Nations Development Program should be devoted to 
programs for persons displaced within their own countries of 
nationality, in co-operation with the International 
Organization for Migration, the International Committee for the 
Red Cross, and other non-governmental organizations.
                               DIVISION C

Section 3001. Short Title

    Section 3001 states that the short title of Division C is 
the ``Foreign Aid Reduction Act.''

Section 3002. Findings and Purposes

    Section 3002 states three declarations of policy.

              Title XXXI--Defense and Security Assistance

               Chapter 1--Military and Related Assistance

            Subchapter A--Foreign Military Financing Program

Section 3101. Authorization of Appropriations for Foreign Military 
        Financing Assistance

    Section 3101 authorizes $3,284,440 for FY96 and $3,240,020 
for FY97 for Foreign Military Financing (grant and loan) under 
section 23 of the Arms Export Control Act.

Section 3102. Administrative Expenses

    Section 3102 authorizes that not more than $24,020,000 for 
each of FY96 and FY97 from assistance made available under the 
Foreign Military Financing program under section 23 of the Arms 
Export Control Act may be utilized for necessary expenses for 
the general costs to administer military assistance and sales 
programs.

Section 3103. Assistance for Israel

    Section 3103 authorizes that not less than $1.8 billion in 
grant assistance under the Foreign Military Financing program 
under section 23 of the Arms Export Control Act for each of 
FY96 and FY97 shall be made available for Israel. This section 
also directs that such funds be disbursed in both FY96 and FY97 
within 30 days of enactment, or by October 31, 1995 and 1996, 
whichever is later. This section also states that grant FMF 
made available for Israel may be utilized for advanced weapons 
systems, of which not less than $475 million shall be available 
for procurement in Israel of defense articles and services, 
including research and development. This section also includes 
a new provision ``termed expanded fair pricing'' which allows 
the President to provide without charge to Israel certain 
services to support government-to-government sales (NATO member 
states are also eligible for this exemption). Under this 
authority, the President may exempt Israel from being charged 
for quality assurance, inspection, contract administration 
services, contract audit defense services, and cataloging data 
and cataloging services if Israel provides such services on a 
reciprocal basis to the U.S.

Section 3104. Military Assistance for Egypt

    Section 3104 authorizes that not less than $1.3 billion in 
grant assistance under the Foreign Military Financing program 
under section 23 of the Arms Export Control Act for each of FY 
96 and FY 97 shall be made available for Egypt.

Section 3105. Loans for Greece and Turkey

    Section 3105 authorizes not more than $26.62 million for 
Greece and not more than $37.8 million for Turkey of those 
funds made available for FY 96 under section 23 of the Arms 
Export Control Act shall be made available for the subsidy cost 
of direct loans. No funds are authorized for FY 97.
    It is intended that this authorization level for subsidy 
costs would support a loan program of $224 million for Greece 
in FY 96 and $320 million for Turkey in FY 96. This provision 
represents a reduction from the Administration's FY 96 request 
for subsidy costs of Greece and Turkey was $89.890 million to 
support a loan program of $315 million for Greece and $450 
million for Turkey. The FY 95 program level is $229 million for 
Greece and $328 million for Turkey; subsidy costs were lower 
because interest costs were lower and the credit ratings of 
these countries were higher in FY 97.
    The Committee's recommended level of funding for Turkey 
completes the commitment of the U.S. for funding for Peace Onyx 
I/II, a joint F-16 fighter aircraft program for the Turkish Air 
Force.
    The Committee recommends this level of FMF funding for 
Greece and Turkey in order to maintain the principle of balance 
in U.S. military assistance to those countries, which has been 
recognized over the years by the Congress as an important 
factor in maintaining a stable political and military situation 
in the Eastern Mediterranean.

Section 3106. Terms of Loans Under Foreign Military Financing

    Section 3106 states that loans made available under section 
23 of the Arms Export Control Act shall be not provided at 
concessional rates of interest. This section updates and 
codifies in the Arms Export Control Act the FMF loan terms that 
have been carried annually on the Foreign Operations 
Appropriation bill.

Section 3107. Nonrepayment of Grant Assistance

    Section 3107 codifies in the Arms Export Control Act a 
provision carried in annual appropriations bills which states 
that the President shall not require repayment of grant 
assistance provided under the Foreign Military Financing 
program under section 23 of the Arms Export Control Act.

Section 3108. Additional Requirements

    Section 3108 amends section 23 of the Arms Export Control 
Act to codify several provisions which have been carried on 
annual appropriations bills. The first provision limits the use 
of grant or loan Foreign Military Financing under section 23 of 
the Arms Export Control Act for the purpose of financing 
commercial sales to NATO member states, major non-NATO allies 
or Jordan which are justified in the annual congressional 
presentation documents. The second provision directs the 
Secretary of Defense, as requested by the Director of the 
Defense Security Assistance Agency, to conduct audits on a 
nonreimbursable basis of firms which have entered into 
contracts with foreign governments under which grant or loan 
Foreign Military Financing under section 23 of the Arms Export 
Control Act is utilized. The third provision prohibits the use 
of Foreign Military Financing under section 23 of the Arms 
Export Control Act to be used to facilitate the transport of 
aircraft to commercial arms sales shows. The fourth provision 
states that the Committee shall receive a 15-day pre-
notification for any country or international organization 
which has been approved for cash flow financing for the 
procurement of defense articles, services or design and 
construction services in excess of $100 million that is 
financed in whole or in part with funds made available under 
the Arms Export Control Act or the Foreign Assistance Act of 
1961. The fifth provision limits to $100 million the amount of 
grant or loan Foreign Military Financing under section 23 of 
the Arms Export Control Act that may be made available to 
countries, other than Egypt and Israel, for the purpose of 
financing commercial sales.
    Finally, the sixth provision in this section authorizes 
Foreign Military Financing under section 23 of the Arms Export 
Control Act for demining activities and activities implemented 
through nongovernmental and international organizations.
    With respect to the demining authority, the Committee 
directs the Secretary of State to make all possible efforts to 
ensure that assistance under this subsection, including the 
provision of mine detection/clearing equipment, mine clearing 
training and other assistance related to reducing the threat of 
injury from mines, especially to civilian personnel, be made 
available to Slovenia, Croatia, Bosnia-Hercegovina, Macedonia, 
Angola and Mozambique.

                     Subchapter B--Other Assistance

Section 3121. Defense Drawdown Special Authorities

    Section 3121 increases the special drawdown authorities of 
defense articles and services from defense stocks to assist 
foreign countries from $75 million to $100 million (for 
unforeseen emergencies) and from $75 million to $150 million 
(for national interests relating to international narcotics, 
international disaster assistance, migration and refugee 
assistance and POW/MIA repatriation efforts). The POW/MIA 
repatriation drawdown is codified from the current 
appropriations law. It allows for the drawdown of up to $15 
million in defense articles and services to Vietnam, Cambodia 
and Laos to support efforts to locate and repatriate members of 
the U.S. Armed Forces and civilians who remain unaccounted for 
since the end of the Vietnam war.

Section 3122. Stockpiles of Defense Articles

    Section 3122 authorizes $50 million for each of FY96 and 
FY97 for additions to stockpiles of DoD articles in Korea ($40 
million) and Thailand ($10 million). This section also provides 
authority for the President to establish additional stockpiles 
pursuant to congressional notification procedures. Further, 
this section provides Israel with a permanent authorization for 
additions to DoD stockpiles in that country. (The same 
authority is already in current law for NATO member states).

Section 3123. Transfer of Excess Defense Articles

    Section 3123 streamlines and consolidates DOD authorities 
of current law to transfer excess defense articles.
    This new consolidated authority stipulates that only 
countries which are justified in the annual congressional 
presentation documents for military assistance or counter-
narcotics programs, or separately justified during the fiscal 
year for such purposes, are eligible to receive excess defense 
articles. This section retains current limitations on EDA 
transfers, including: excess defense articles must be drawn 
from existing DoD stocks; no DoD procurement funds may be 
expended in connection with the transfer; the transfer of EDA 
will not have an adverse impact on the military readiness of 
the U.S.; that an analysis be preapred on the impact of 
providing EDA on a grant versus sales basis; and the transfer 
of such articles is consistent with the policy framework for 
the Eastern Mediterranean pursuant to section 620C of the 
Foreign Assistance Act.
    An additional limitation on proposed transfers requires the 
President to determine that the transfer will not have an 
adverse impact on U.S. defense industry and that the transfer 
will not reduce opportunities of U.S. companies to sell new or 
used equipment to countries where transfers are either being 
transferred or being considered for transferred. Such 
determination is also required to be included as part of the 
congressional notification on any proposed transfer (see 
below). The Committee would note that such determination 
applies to both grant transfers and sales of EDA. The Committee 
expects the Defense Security Assistance Agency to work closely 
with U.S. defense industry to ensure that both the spirit and 
the law are met fully with regard to this limitation. The 
Committee will be monitoring the implementation of this 
provision closely.
    This section also codifies EDA provisions carried over from 
current appropriations law including a provision which directs 
that EDA provided to NATO member countries on the southern and 
southeastern flank of NATO and major non-NATO nations on such 
southern and southeastern flank shall be given priority to the 
maximum extent feasible on the delivery of EDA over other 
countries.
    This section also includes a subsection which prohibits the 
expenditure of DoD funds for packing, crating, and handling 
associated with transfers of EDA. Transportation may be 
provided and paid for with DoD funds but on the strict terms 
outlined in this subsection.
    Other subsections of this section include a provision for 
congressional notification of proposed transfers of EDA if the 
proposed transfer is significant military equipment or EDA 
valued at more than $7 million (acquisition cost). This 
notification requires that specific information and assessments 
be made with regard to the proposed transfer.
    This section also includes an aggregate annual limitation 
of $350 million (current value) on the transfer of EDA under 
this section to countries in any fiscal year. The Committee 
directs the Defense Security Assistance Agency to promptly 
consult with the Committee should DSAA consider changing the 
regulations or definitions addressing how current value is 
determined. This aggregate ceiling does not apply to sales of 
EDA.
    Finally, this section requires that the Executive branch 
expand upon the current EDA section in the annual congressional 
presentation documents to provide the committee with specific 
information.

Section 3124. Non-Lethal Excess Defense Articles for Albania

    Section 3124 authorizes DoD to expend funds for crating, 
packing, handling and transportation of nonlethal EDA 
transferred under section 516 of the Foreign Assistance Act to 
Albania, notwithstanding section 516(e) which prohibits the 
expenditure of such funds for such purposes.

        Chapter 2--International Military Education and Training

Section 3141. Authorization of Appropriations

    Section 3141 fully funds the Administration's request of 
$39,781,000 in FY96 and FY97 for the International Military and 
Education Training (IMET) program. While this level of support 
is an increase over FY 94 and FY 95 funding levels, it is far 
lower than the level of support IMET experienced during the 
1980s and early 1990s. This military education program will 
train approximately 3,500 personnel from over 100 countries. It 
enhances the military professionalism of our friends and 
allies, contributes to cooperation in the event of 
international crises, and introduces an intensive level of 
human rights and rule-of-law education to military officers 
from a wide range of developing countries.

Section 3142. Assistance for Indonesia

    Section 3142 authorizes the resumption of IMET for 
Indonesia with the condition that all such IMET be comprised of 
the human rights-oriented Expanded IMET program as described in 
clauses (i) through (iv) of the second sentence of section 541 
of 22 U.S.C. Sec. 2347. The decision to resume targeted IMET 
for Indonesia is based on the importance of Indonesia as a 
trade and security partner, on professionalism and human rights 
sensitivity of the foreign military beneficiaries.
    This limited restoration of IMET, therefore, should not be 
interpreted as an expression of congressional satisfaction with 
the Government of Indonesia's human rights performance in East 
Timor or elsewhere in Indonesia. The Congress remains concerned 
about poor human rights conditions in Indonesia and urges the 
Administration to actively promote better human rights 
practices. Moreover, the Congress looks for improvements in 
these areas prior to restoration of the full range of security 
cooperation with Indonesia as it existed prior to the massacre 
in Dili, East Timor, in November 1991.

Section 3143. Additional Requirements

    Section 3142 amends the Foreign Assistance Act to place 
into permanent law several provisions carried in annual 
appropriations law: first, a provision which allows NGOs to be 
eligible for Expanded IMET assistance; and second, a provision 
which limits IMET assistance to $300,000 to any high-income 
country and only if such country agrees to pay for the 
transportation and living allowances of its students. For 
purposes of this section, ``high-income country'' means any 
country whose annual per capita GNP exceeds $2,349 as set forth 
in the ``World Development Report, 1988''. In addition, this 
section contains a new authority which allows foreign military 
and civilian defense personnel to attend U.S. test pilot flight 
schools if such attendance is agreed to on a reciprocal basis 
with a foreign country and is accomplished without charge to 
this section. This authority will allow the Air Force to train 
test pilots from the U.K. and France on a reciprocal basis 
without cost to the U.S. Government.
                  Chapter 3--Antiterrorism Assistance

Section 3151. Authorization of Appropriations

    Section 3151 authorizes the appropriations of $20 million 
in fiscal year 1996 and $25 million in fiscal year 1997 for the 
Antiterrorism Assistance (ATA) program. This represents a $5 
million increase in FY96 and a $10 million increase in FY97 
from both the FY95 level and the President's request. Amounts 
authorized to be appropriated under this section will remain 
available until expended.
    The increase in the authorization level reflects the 
priority the Committee places on antiterrorism assistance. The 
Committee notes that the law enforcement effort following the 
World Trade Center bombing required the active cooperation and 
support of a number of friendly governments. The Committee 
strongly urges the Administration to strengthen such 
cooperation and assistance to improve and expand the capability 
of friendly governments to assist antiterrorism law enforcement 
activities.

Section 3152. Antiterrorism Training Assistance

    Section 3152 makes a variety of amendments to section 573 
of the Foreign Assistance Act relating to the manner in which 
Antiterrorism Training Assistance (ATA) assistance may be 
provided. When the ATA program was established, a variety of 
restrictions were imposed on how training could be provided and 
specified that only certain types of material assistance could 
be provided due to lingering sensitivities about U.S.-supported 
police training assistance. Some of these restrictions 
currently make the program less effective.
    Section 3152 allows assistance through the ATA program to 
be provided outside the United States, mirroring other current 
law enforcement training authorities. This modification will 
make the program more efficient as well as more cost effective. 
Section 3152 also removes the specific list of material 
assistance that may be provided in favor of a restriction on 
the provision of arms and ammunition. Arms and ammunition may 
only be provided if they are directly and integrally related to 
training being provided and if the Congress is notified 15 days 
in advance in accordance with regular reprogramming procedures. 
This change also makes the program consistent with other U.S.-
supported law enforcement training programs.

Section 3153. Research and Development Expenses

    Section 3153 would allow the Bureau of Diplomatic 
Security's Office of Antiterrorism Assistance to use funds, as 
practicable, for the State Department's Technical Support 
Working Group. Such funds could be made available during the 
fiscal year only after the Office of Antiterrorism Assistance 
determines that its remaining annual training requirements, 
related equipment purchases, and contractual obligations can be 
effectively met by the existing funding allocation. Priority 
use of funds to carry out chapter 8 of part II of the Foreign 
Assistance Act (22 U.S.C. Sec. 2349aa et seq.; relating to 
antiterrorism assistance) shall continue to focus upon training 
and training-related equipment purchases.

                Chapter 4--Narcotics Control Assistance

Section 3161. Authorization of Appropriations

    Section 3161 authorizes the appropriation of $213 million 
in FY96 and FY97 for international narcotics control 
assistance. This fully funds the President's request for this 
program. The authorization also grants the President's request 
for a consolidation of all narcotics-related assistance, 
including Economic Support Fund assistance and Foreign Military 
Financing assistance, into a single account. The President 
requested this consolidation in order to better coordinate all 
counter-narcotics assistance programs and to improve the 
efficiency of the delivery of such assistance.

Section 3162. Additional Requirements

    Section 3162 makes the following technical and 
administrative amendments to the narcotics control authorities 
under the Foreign Assistance Act.
    Section 3162(a) restates a one-year provision of the 
International Narcotics Control Corrections Act of 1994 
relating to programs to combat other international criminal 
activities and makes the provision permanent law. The section 
reflects concern over the increased level of organized 
international criminal activity and the threat posed by such 
activity to U.S. national security. The section is intended to 
allow the provision of assistance to address a variety of 
criminal activities that may not be directly related to 
narcotics production and trafficking, such as alien smuggling, 
counterfeiting, and other types of illegal international 
activity. The section also reflects the creation in the 
Department of State of the Bureau of International Narcotics 
and Law Enforcement Affairs. The Committee intends that all 
Department of State anticrime activities (other than 
antiterrorism activities) be conducted by that bureau.
    Section 3162(b) establishes administrative authorities for 
the provision of international narcotics control assistance by 
allowing the President to accept contributions from other 
governments to augment existing narcotics control activities 
and to provide training and other assistance on a reimbursable 
basis. The United States has the most well-established 
mechanism for providing a wide variety of international 
counter-narcotics related assistance. An integral component of 
the U.S. international narcotics control strategy for the past 
seven years has been efforts to increase support for counter-
narcotics activities by other countries affected by the 
narcotics problem. However, most of these countries do not have 
any type of mechanism available that would allow the effective 
delivery of such assistance. The authority to accept 
contributions from other interested foreign governments will 
allow the President to administer another country's assistance 
efforts under the same terms and conditions as U.S. assistance.
    Section 3162(c) requires that funds authorized under other 
sections of the Foreign Assistance Act for narcotics control or 
crime purposes be apportioned directly to the Bureau for 
International Narcotics and Law Enforcement Affairs. This 
provision is intended to address a problem with internal 
transfers of funds within the Department and between the 
Department and AID (or AID's successor). In FY95, $5 million in 
Economic Support Fund assistance was authorized for anticrime 
programs. These funds experienced a long delay in obligation 
because of the cumbersome inter-Department transfer system. A 
similar situation arose with respect to the $30 million 
authorized for law enforcement assistance to Central Europe and 
the independent states of the former Soviet Union. Despite the 
urgent problems in those countries which the assistance was 
designed to address, the obligation of these funds was delayed 
for several months due to the necessity to transfer the money 
from AID to the Department and then within the Department. 
Section 3162(c) also allows the Secretary to receive property 
declared excess by other U.S. Government agencies and to 
transfer such property to foreign governments under the same 
terms and conditions as funds authorized for international 
narcotics control programs.
    Section 3162(d) makes expanded certification and reporting 
requirements first enacted in the International Narcotics 
Control Act of 1992 permanent. That legislation expanded the 
number of countries about which the President is required to 
report in the annual International Narcotics Control Strategy 
Report (INCSR) and expanded the reporting requirement to 
include more detailed information on major money laundering 
countries and countries which are a major source of precursor 
chemicals. With respect to certification, the International 
Narcotics Control Act of 1992 modified the procedures for 
recertification, allowing a country that had undergone a 
fundamental change in government after being decertified to 
receive assistance without additional congressional action.

Section 3163. Notification Requirement

    Section 3163 requires the Director of the Office of 
National Drug Control Policy to notify the appropriate 
congressional committees 15 days in advance of using the 
authority of the National Narcotics Control Leadership Act of 
1988 to reallocate resources and personnel associated with 
international narcotics control programs and activities. The 
Committee believes that in order to fulfill its oversight 
responsibilities with respect to such programs and activities, 
no such reallocation of personnel or resources should be 
permitted without the prior consultation and approval of the 
Committee.

Section 3164. Waiver of Restrictions for Narcotics-Related Economic 
        Assistance

    Section 3164 restates for FY96 and FY97 a provision of law 
allowing the President to provide narcotics-related economic 
assistance without regard to other restrictions on assistance, 
except for countries which have been decertified for narcotics 
concerns or which systematically violate internationally 
recognized human rights.

            Chapter 5--Nonproliferation and Disarmament Fund

Section 3171. Nonproliferation and Disarmament Fund

    Section 3171 authorizes $25 million for each of FY 96 and 
FY 97 to fund the Nonproliferation and Disarmament Fund which 
is used to carry out bilateral and multilateral 
nonproliferation and disarmament activities worldwide.
    The Committee notes that this fund, which has been 
authorized and appropriated at $10 million for FY 94 and FY 95, 
is increased to $25 million because $15 million has been 
transferred from the 050 defense account to the 150 
international affairs account to carry out export control 
activities in the former Soviet Union. The Committee directs 
the Under Secretary of State for Arms Control and International 
Security Affairs, to which the implementation of this program 
was delegated, to ensure that not more than $15 million of the 
funds authorized for this section are obligated for export 
control activities worldwide. Further, the Committee intends 
that the majority of the remaining funds authorized for this 
fund be dedicated to bilateral and multilateral disarmament 
activities outside of the FSU. Those countries are eligible for 
assistance under the Nunn-Lugar program.

                      Chapter 6--Other Provisions

Section 3181. Standardizing Congressional Review Procedures for Arms 
        Transfers

    Section 3181 eliminates anomalies in current law regarding 
congressional review procedures applicable to different 
categories of transfers to the same country or group of 
countries. This section creates common review procedures for 
given recipients irrespective of the nature of the type of 
transfer (for example, FMS or commercial sale). This section 
also equates the statutory period of time for enactment of a 
joint resolution of disapproval of a transfer to the period of 
time stipulated for review of that transfer. Finally, this 
section standardizes the requirements for all types of sales 
for any Presidential waiver of congressional notification.
    The Committee notes that this section does not affect the 
informal process agreed to between the Committee and the 
Administration regarding arms transfers.

Section 3182. Standardization of Third Country Transfers of Defense 
        Articles

    Section 3182 standardizes the rules governing the re-
transfer of certain U.S.-origin military equipment. Currently, 
re-transfer regulations for direct commercial sales and FMS 
sales differ with respect to re-transfers. By standardizing the 
rules governing third party transfers of FMS equipment and 
commercial sales we provide equitable treatment of equipment 
previously bought under FMS or DCS. While requests to approve 
re-transfers of the type permitted under this proposal are 
routinely granted under the current system, the requirement to 
seek U.S. government approval is administratively burdensome 
for both the foreign parties and the U.S. government. This 
section addresses that problem.

Section 3183. Increased Standardization, Rationalization, and 
        Interoperability of Assistance and Sales Programs

    Section 3183 amends the Foreign Assistance Act to remove 
country specific references with respect to standardization, 
rationalization and interoperability of assistance and sales 
programs, thereby allowing the U.S. to pursue these objectives 
with other nations. Section 515(a)(6) of the Foreign Assistance 
Act (current law) states that the President may assign members 
of the U.S. Armed Forces in a foreign country the function of 
``promoting rationalization, standardization and 
interoperability, and other defense cooperation measures among 
members of NATO, and the armed forces of Japan, Australia and 
New Zealand ...'' By deleting the specific country references, 
this section makes it clear that U.S. security assistance 
officers may pursue those functions worldwide.

Section 3184. Repeal of Price and Availability Reporting Requirement 
        Relating to Proposed Sale of Defense Articles and Services
    Section 3184 repeals a duplicative reporting requirement in 
the Arms Export Control Act. Sales offers to foreign countries 
as well as actual sales are reported in a much broader scope 
(at the $1 million threshold) on a quarterly basis as required 
by section 36(a) of the AECA.

Section 3185. Definition of Significant Military Equipment

    Section 3185 amends the Arms Export Control Act to provide 
a definition of significant military equipment as defined in 
the International Traffic in Arms Regulations (ITAR).

Section 3186. Requirements relating to the Special Defense Acquisition 
        Fund

    Section 3186 deals with issues related to the Special 
Defense Acquisition Fund (SDAF).
    Section 3186(a) repeals an annual reporting requirement 
which is no longer needed or useful. Section 53(a) of the Arms 
Export Control Act requires a report on specific SDAF issues 
related to the SDAF fund for which monies are no longer being 
appropriated. The report is therefore obsolete and this section 
eliminates the report.
    Section 3186(b) increases the decapitalization rate for the 
Special Defense Acquisition Fund by $6,281,000 for FY 96. After 
assurances from the DoD that this modest increase in the SDAF 
is possible, the decapitalization for FY 96 was increased from 
$220,000,000 to $226,281,000.

Section 3187. Cost of leased Defense Articles that Have been Lost or 
        Destroyed

    Section 3187 conforms provisions within the AECA which 
require reimbursement for the cost of leased defense articles 
that have been lost or destroyed. Current law requires the 
leasing country to pay ``the replacement cost (less any 
depreciation in the value) of the articles if the articles are 
lost or destroyed while leased.'' In circumstances in which the 
leased item is not going to be replaced by the U.S. Government, 
the rationale that justifies charging the foreign government 
the full replacement cost is no longer valid or just. Section 
21(a)(1)(A) of the Arms Export Control Act contains a provision 
regarding the pricing of items to be sold which the U.S. does 
not intend to replace: ``The President may sell ... if such 
country agrees to pay, in the case of a defense article not 
intended to be replaced at the time such an agreement is 
entered into, not less than the actual value thereof.'' This 
same rationale should be used in the pricing of lost or 
destroyed leased items.

Section 3188. Designation of Major non-NATO Allies

    Section 3188 designates Australia, Egypt, Israel, Japan, 
Korea and New Zealand as major non-NATO allies for purposes 
under the Foreign Assistance Act and Arms Export Control Act. 
This section also authorizes the President to designate 
additional major non-NATO allies and terminate such 
designations if he notifies the Congress.

Section 3189. Certification Thresholds

    Section 3189 amends the Arms Export Control Act to increase 
the dollar thresholds for reporting arms sales to the Congress: 
from $14 million to $25 million for major defense equipment; 
from $50 million to $75 million for defense articles and 
services; and from $200 million to $300 million for design and 
construction services.

Section 3190. Competitive Pricing for Sales of Defense Articles and 
        Services

    Section 3190 amends the Arms Export Control Act to require 
that countries utilizing grant Foreign Military Financing for 
government-to-government arms sales shall be priced on the same 
costing basis with regard to profit, overhead, independent 
research and development, bid and proposal, and other costing 
elements, as is applicable to procurement of like items 
purchased by the Department of Defense.

Section 3191. Depleted Uranium Ammunition

    Section 3191 amends the Foreign Assistance Act to place 
into permanent law a provision carried in annual appropriations 
law that restricts the sale or transfer of M-833 antitank 
shells or any comparable antitank shell containing a depleted 
uranium penetrating component to any country except for NATO 
member states, major non-NATO states and Taiwan. The section 
also contains a national security interest waiver for the 
President.

Section 3192. End-use monitoring of defense articles and defense 
        services

    Section 3192 directs the Secretary of State to establish a 
comprehensive end-use monitoring program for defense articles 
and services in order to improve accountability with respect to 
those defense articles and services sold, leased or exported 
under the Arms Export Control Act or Foreign Assistance Act. 
The Committee believes that the benefits of an effective system 
of pre- and post-shipment verifications are clear. A random 
selection of licenses/applications for bona fides and end use 
checks will deter those who would illegally acquire and/or 
divert U.S. defense articles. Having proven the effectiveness 
of this type of program for commercial arms transactions 
through the Blue Lantern program at the Office of Defense Trade 
Controls in the Department of State, the Committee believes 
that there would be clear benefits in using a similar procedure 
for FMS sales. Accordingly, this section directs the Secretary 
of State to establish a comprehensive program which covers both 
commercial and FMS types of transactions. This section outlines 
the purposes and objectives of the program and requires a 
report on the implementation of the new program.

Section 3193. Brokering activities relating to commercial sales of 
        defense articles and services

    Section 3193 requires U.S. persons (and foreign persons 
located in the U.S.) involved in defense trade of U.S. and non-
U.S. defense equipment or technology to register with the U.S. 
government and provides the U.S. government authority to 
regulate such brokering activities. The Arms Export Control Act 
provides the Department of State with the authority to regulate 
the destination and use of U.S. origin and U.S.-made defense 
commodities. However, the AECA does not authorize the 
Department to regulate the activities of U.S. persons (and 
foreign persons located in the U.S.) brokering defense 
transactions overseas (except for transactions involving a 
small number of terrorist countries). Nor does the AECA 
authorize the Department to regulate the brokering of non-U.S. 
defense articles or technology.
    This provision provides those new authorities to ensure 
that arms exports support the furtherance of U.S. foreign 
policy objectives, national security interests and world peace. 
More specifically, in some instances U.S. persons are involved 
in arms deals that are inconsistent with U.S. policy. Certain 
of these transactions could fuel regional instability, lend 
support to terrorism or run counter to a U.S. policy decision 
not to sell arms to a specific country or area. The extension 
of U.S. legal authority under this provision to regulate 
brokering activities would help to curtail such transactions.

                    Title XXXII--Economic Assistance

                 Chapter 1--Economic Support Assistance

Section 3201. Economic Support Fund

    Section 3201 authorizes the appropriation of $2,356,378,000 
for FY96 and $2,283,478,000 for FY97 to the Economic Support 
Fund (ESF). The ESF is the primarily source of economic aid 
funds used by the President to support allies and key programs. 
This represents a cut of $12.2 million from last year's 
appropriation and $147.9 million from the President's FY96 
request. For FY97, it represents an $85.1 million cut from 
FY95. The Committee directs these funds to be spent to support 
the following countries or programs:

------------------------------------------------------------------------
                                                 Fiscal year            
        Country or program         -------------------------------------
                                           1996               1997      
------------------------------------------------------------------------
Israel............................          1,200.000          1,200.000
Egypt.............................            815.000            815.000
Jordan............................              7.200              7.200
Lebanon...........................              3.639              3.639
ME Multilaterals..................              3.639              3.639
ME Regional (MERC)................              5.000              5.000
West Bank (Gaza)..................             75.000             75.000
Africa Regional Fund..............              7.400              7.400
Angola............................              5.000              5.000
Asia Regional Fund................              9.500              9.500
Cambodia..........................             20.000             10.000
Mongolia..........................              5.000              2.500
South Pacific Tuna................             14.000             14.000
Cyprus............................             15.000             15.000
International Fund for Ireland....             29.600             19.600
Turkey............................             50.000             40.000
Haiti.............................             71.400             36.000
LAC Regional Fund.................             10.000             10.000
Admin. of Justice/ICITAP..........              5.000              5.000
International Criminal Justice....              5.000              5.000
                                   -------------------------------------
      Total.......................          2,356,378          2,283,478
------------------------------------------------------------------------

1. Cyprus

    The Committee recommends assistance to Cyprus at the level 
of $15 million in FY96 and FY97 to support scholarships and 
bicommunal projects as evidence of our government's strong 
commitment to a peaceful and just solution of the Cyprus 
problem. Aid to Cyprus plays a role in facilitating cooperation 
between the two communities, enhancing prospects for a 
resolution to the 21-year old division of Cyprus. The Committee 
is concerned that with the reductions in foreign assistance 
projected under the budget resolution, continued U.S. aid 
beyond FY97 to Cyprus may be reduced. The Committee urges the 
Administration to study other ways to demonstrate and improve 
the close ties between the U.S. and Cyprus. One such proposal 
may be to study jointly the prospects for a free trade 
agreement between the U.S. and Cyprus.
    The Committee supports the U.N. framework to end Cyprus's 
division providing, among other things, for a bicommunal and 
bizonal federal structure as called for in U.N. Security 
Council Resolution 939. The Committee commends President 
Clerides' proposal for the demilitarization of Cyprus as a 
constructive initiative which could meet the security concerns 
of all sides.
    The Committee welcomes the recent appointment of a Special 
Presidential Emissary for Cyprus and strongly supports our 
continuing commitment to assisting efforts to resolve the 
Cyprus problem. The Committee views the resolution of the 
Cyprus problem as an important measure which would improve 
stability in the Eastern Mediterranean.
    The Committee is pleased to note that the European 
Parliament recently called on the European Union to ``follow 
the example of the U.S. Congress'' and investigate the fate of 
missing persons in Cyprus. The Committee calls upon the 
President to do everything possible to return Cypriot missing 
persons, especially including U.S. citizens, to their families. 
This would also include returning the remains of those who were 
killed in the 1974 invasion and ensuing conflict.

2. Turkey

    The Committee directs the allocation of $50 million in ESF 
in FY96 for Turkey to support the Turkish government's efforts 
to reform the Turkish economy. Although Turkey faces many 
hardships, the Committee is encouraged by the progress made to 
date. For future assistance allocations, the Committee will pay 
special attention to the opening of Turkish markets to U.S. 
goods and services.
    The Committee recognizes the importance of continuing U.S. 
security cooperation with Turkey. Turkey's importance as a 
member of NATO and as a force for stability in the Middle East 
and Trans-Caucasus region is noted. The Committee appreciates 
Turkey's continued support of our mutual interests in the 
development of democratic and free-market institutions in this 
vital area of the globe.
    The Committee deeply appreciates Turkey's role as a base 
for Operation Provide Comfort and its support for U.N. 
sanctions against Iraq. The Committee recognizes the sacrifices 
Turkey has made in this regard, and hopes that the 
international community will continue to assist Turkey in 
bearing these burdens. The Committee applauds the 
Administration's strong support for the implementation of the 
E.U.-Turkey customs union and other measures to more closely 
integrate Turkey with the European and world economy.
    The Committee is concerned about the human rights situation 
in Turkey, particularly government actions against journalists 
and others which infringe upon freedom of expression. The 
Committee has received numerous credible reports from human 
rights organizations of serious violations of international 
standards for human rights which the Committee urges the 
government of Turkey to address. The Committee believes that 
violations of human rights undermine democracy and stability in 
Turkey and run counter to the interests of the Turkish people.
    The Committee expresses concern regarding recent attacks on 
the Ecumenical Patriarchate in Istanbul, Turkey, the center for 
over 250 million Orthodox Christians worldwide. The Committee 
appreciates and encourages the continuation and expansion of 
the actions the government of Turkey took to protect the 
Patriarchate from terrorist activity.

3. Middle East Regional Cooperative Program

    While the Committee did not earmark a specific amount for 
the Middle East Regional Cooperative Program (MERC), the 
Committee strongly urges its continuation at last year's level 
of $5 million. By fostering cooperative projects of a 
scientific and technological nature between Israel and its 
neighbors, MERC programs provide a strong foundation for 
economic and cultural ties within the region. All countries in 
the region share common problems that MERC projects in the 
fields of agriculture, health, energy, the environment, 
education, water resources, and the social sciences are aimed 
to address.

Section 3202. Assistance for Israel

    Section 3202 requires that not less than $1,200,000,000 of 
ESF funds be provided to Israel in FY96 and FY97. It requires a 
cash transfer, early disbursement and amounts provided so as 
not to cause an adverse impact on the total level of 
nonmilitary exports from the United States to Israel--all as 
required in the FY95 Foreign Operations Appropriations Act.
    A fundamental element of United States foreign policy has 
been support for a strong and secure Israel. Israel remains the 
most reliable strategic ally of the United States in the Middle 
East, and a vital partner in the U.S. pursuit for peace in the 
Middle East. There must be no doubt about the United States' 
commitment to Israel. The continuation of U.S. assistance to 
Israel provides that clear signal, in addition to providing 
Israel with the means it needs to defend itself in an 
increasingly dangerous environment. The successes of the past 
few years through the peace process, including a historic peace 
treaty between Israel and Jordan and progress on the Israel/
Palestinian front are the best evidence of the effectiveness of 
our consistent support of Israel through our foreign assistance 
programs.

Section 3203. Assistance for Egypt
    Section 3203 requires that not less than $815,000,000 of 
ESF funds be provided for Egypt in FY96 and FY97. Provisions in 
subsection (b) add the additional appropriations law 
requirement to ensure that there is no adverse impact on the 
total level of nonmilitary exports from the United States to 
Egypt as required in the FY95 Foreign Operations Appropriations 
Act.
    The Committee finds that Egypt is a vital U.S. ally in the 
Middle East and a stalwart partner for peace in the region. 
Egypt's stance toward Middle East peace has been fostered by 
the enlightened Egyptian leadership and reinforced by 
successive U.S. Presidents and Congresses. The Committee 
reasserts its commitment to Middle East peace and Egypt's 
central position to a comprehensive and permanent peace.
    U.S. aid to Egypt is intended to both bolster this long-
standing ally as well as to provide access to the Egyptian 
market for U.S. firms and exports. AID funds provided to Egypt 
support U.S. exports to Egypt as well as contracts in Egypt for 
U.S. firms. The dual purpose of U.S. foreign aid is exemplified 
by the telecommunications sector in Egypt, where AID has funded 
projects for the last 15 years. AID funding of such projects 
helped encourage the entry of U.S. telecommunications firms 
into the Egyptian market in the early 1980's and this is now a 
significant commercial market for such U.S. firms and U.S. 
exports. These projects have greatly increased the efficiency 
of Egypt's telecommunications infrastructure, which, in turn, 
will help promote the growth of business in Egypt. AID's 
funding of the telecommunications sector, therefore, has 
ramifications far beyond that one sector.

Section 3204. International Fund for Ireland

    Section 3204 provides that not more than $29,600,000 in 
FY96 and $19,600,000 in FY97 from ESF may be provided for the 
International Fund for Ireland (``IFI''). Funds are conditioned 
on the IFI adhering to the MacBride equal opportunity 
principles.
    Unemployment, economic hardship, and discrimination fueled 
sectarian violence in Northern Ireland for decades. The problem 
of discrimination in Northern Ireland remains a serious concern 
to the Committee. The contributions of the U.S. Government to 
the IFI must be used in the most effective ways possible to 
help alleviate hardship and to create new opportunities. 
Moreover, this must be accomplished in a manner which does not 
perpetuate unfair hiring practices, and disperses U.S. 
assistance in an evenhanded manner.
    This provision establishes clear and reasonable 
requirements for recipients of United States funds in order to 
carry out the clear intention of the Congress that U.S. funds 
be put to fair and effective use to create the greatest 
economic opportunity. These goals are served by the twofold 
thrust of the provision:
          First, the provision requires that U.S. IFI funds 
        must be directed to areas with the highest rates of 
        unemployment without reference to sectarian 
        demographics. U.S. funds must be primarily directed to 
        activities justified by the economic needs of the 
        residents of distressed communities and not on the 
        basis of sectarian quotas.
          Second, the provision also requires recipients to 
        agree in writing to make reasonable, good faith efforts 
        to implement fair employment practices, consistent with 
        the terms of economic justice, as defined.
    The provision thus helps ensure that the assistance 
provided by American taxpayers will be effectively and justly 
put to use to bring some measure of economic advancement and 
economic justice to the people of Northern Ireland.
    The provision accomplishes these goals without imposing 
burdensome requirements or compromising fundamental American 
values of fairness, equal justice and responsible use of U.S. 
public funds. It also does not put American companies in 
Northern Ireland at a disadvantage if they are already in 
voluntary compliance with the MacBride Principles.
    The fair employment principles set forth in the provision 
are drawn from and closely follow the MacBride Principles, and 
are also reflective of some of the recent changes on the ground 
in Northern Ireland. Several of these principles are already 
embodied in the British Fair Employment Act (FEA) and none of 
these principles impose any requirement inconsistent with 
existing law and policy.
    The establishment of these conditions for U.S. assistance 
merely brings the manner of U.S. participation into harmony 
with prevailing legal trends and international business 
practices in Northern Ireland.
    The Committee fully supports the increased levels of U.S. 
assistance to the IFI as requested by the Administration for 
FY96. This contribution is timely and necessary to support and 
advance the peace process at this important moment in Irish 
history.
    Based on testimony before the Committee, it is evident that 
U.S. assistance should be carefully targeted at the areas of 
greatest need, based upon levels of unemployment and the 
changes incorporated in the Anglo-Irish Agreement of 1986, to 
accomplish that worthy goal.
    In the Committee's opinion, the increased U.S. assistance 
and the clear need for targeted investment consistent with the 
principles of economic justice establish a need for greater 
involvement and oversight by the U.S. observer to the IFI.
    In extending U.S. oversight to the IFI, the Committee does 
not intend to extend the other restrictions and requirements of 
the Foreign Assistance Act to Funds activities.

Section 3205. Law Enforcement Assistance

    Section 3205 provides that not more than $12,000,000 from 
ESF for FY96 and FY97 may be provided to support law 
enforcement assistance under the counter-narcotics chapter of 
the Foreign Assistance Act as requested by the President. The 
Committee intends that these funds shall be administered by the 
State Department's Bureau for International Narcotics and Law 
Enforcement Affairs.

    Chapter 2--Assistance for Private Sector Programs and Activities

Section 3211. Private Sector Enterprise Funds

    Section 3211 authorizes the establishment of enterprise 
funds to support private sector growth using the model of the 
SEED Act. This section would generally authorize the 
establishment of new enterprise funds as a way of fostering 
development. This section would use the authorities under the 
SEED Act as a model for establishing new enterprise funds. This 
funding may come from the Sustainable Development, Development 
Fund for Africa or ESF accounts. Funding from the Development 
Fund for Africa may only support enterprise funds in Africa.

Section 3212. Micro- and Small Enterprise Development Credits

    Section 3212 rewrites section 108 of the Foreign Assistance 
Act to account for credit reform. Prior to credit reform, grant 
and loan programs were scored equally against the budget. After 
credit reform, loan programs are scored by the amount equal to 
the estimated risk that the government may not be repaid. An 
interagency group determines the risk of each loan program on a 
country-by-country basis.
    Under credit reform, Congress authorizes and appropriates 
funds for loan programs to be set aside against loan losses 
(this is called the ``subsidy'' under credit reform). Congress 
must separately authorize and appropriate funds to administer 
these loan programs. The current section 108 of the Foreign 
Assistance Act did not take any of these credit reform 
provisions into account. This section rewrites section 108 to 
authorize appropriations for the subsidy and administrative 
cost portions of the Foreign Assistance Act micro- and small 
enterprise loan program.
    Under this section, the Committee authorizes $2 million in 
FY96 and FY97 for the subsidy costs of loans under this 
program. This represents the current level of funding. The 
Committee reviewed the President's proposal to fund an 
``Enhanced Credit Authority'' (ECA). The Committee chose not to 
authorize such funding at this time, without prejudice to the 
underlying proposal. The Committee expects the President to 
further define this proposal and the risks it entails. Given 
the cuts in aid programs under this bill, the Committee will 
reconsider this proposal next year.
    The Committee also authorizes $500,000 in FY96 and FY97 for 
the administration and training costs of this loan program.

Section 3214. Microenterprise Development Grant Assistance

    Section 3214 adds a new section to the Foreign Assistance 
Act authorizing grants to microenterprise groups in accordance 
with the Gejdenson/McKinney/Gilman/Bereuter bill in the 103rd 
Congress (H.R. 4511).
    Unlike the credit program outlined above, this program 
establishes a new section 129 to the Foreign Assistance Act 
that authorizes microenterprise grant assistance to 
microenterprise groups that would use these funds to make small 
loans to the poor. Under this section, approximately 50 percent 
of the assistance would be used to provide loans of $300 or 
less to very poor members of society, especially women.
                   Chapter 3--Development Assistance

            Subchapter A--Development Assistance Authorities

Section 3221. Authorization of Appropriations

    This section authorizes appropriations for programs in the 
following amounts:

------------------------------------------------------------------------
                                                      Fiscal year       
                   Program                   ---------------------------
                                                  1996          1997    
------------------------------------------------------------------------
Sustainable Development Assistance Program..     858.000       858.000  
Development Fund for Africa.................     629.214       629.214  
Aid for the Newly Indep. States of the FSU..     643.000       650.000  
Aid for Eastern Europe (SEED Act)...........     325.000       275.000  
Inter-American Foundation...................      20.000        10.000  
Africa Development Foundation...............      10.000         5.000  
------------------------------------------------------------------------

    Cuts of this kind were recommended by the House Budget 
Committee as part of its deficit reduction package to set the 
U.S. Government on a seven year ``glide path'' to a balanced 
budget. The amounts authorized under this section for FY96 
would represent a cut of $726 million from the FY95 
appropriated levels and $914.8 million from the request. For 
FY97, the amounts authorized represent a cut of $769.6 million 
from the FY95 level.

1. Development Assistance

    The Committee continues to support the provision of 
development assistance in order to: 1) promote global economic 
growth (which increases U.S. exports and creates U.S. jobs), 2) 
support the transitions to democracy and market economies, and 
3) contribute the U.S. share and provide leadership to solve 
global problems such as environmental degradation, the spread 
of disease and rapid population growth.
    The Committee believes that, in providing development 
assistance, the U.S. should:
          A. Support private sector development, grassroots 
        activities that directly benefit the poor and 
        government efforts to create an enabling environment 
        for the private sector to increase economic growth.
          B. Invest in people through child survival, basic 
        education and health, and other programs which meet 
        basic human needs to build a foundation for economic 
        growth.
          C. Promote economic growth by supporting free-market 
        policies, U.S. trade, micro- and small and medium 
        enterprises, more accountable institutions, and greater 
        access for women over productive assets.
          D. Invest in programs to improve child and maternal 
        health and reduce the incidence of abortion through 
        voluntary family planning and other health programs 
        which emphasize women and children.
          E. Invest in programs which protect the environment 
        while promoting free-market, private sector economic 
        growth, such as more efficient agricultural production 
        and energy from renewable resources.
          F. Strengthen democratic processes, develop a strong 
        and healthy not-for-profit charitable sector relying on 
        private sector contributions and tax preferences, 
        foster inclusion in decision-making at all levels, 
        promote human rights and the rule of law, and enhance 
        access to information.
          G. Emphasize broad-based participation, especially of 
        women, in all phases of development programs and 
        projects, and promote decentralization and the 
        strengthening of nongovernmental organizations and the 
        private sector in development efforts.

2. Development Fund for Africa
    The Committee believes that the United States should remain 
involved in Africa where the U.S. has important interests. The 
Committee notes that over the past three decades, Africa failed 
to foster real economic growth. Africa, and especially Tanzania 
(according to testimony before the Committee), served as a 
lesson of the total failure of the statist, centrally-planned 
economy of the developing world. The Committee is encouraged 
that some 25 African countries are taking steps toward 
democracy and economic reform. While this shift in policy is 
late, the trend is now positive. The current pace of these 
reforms cannot be too quick.
    The Committee believes that Africa's economic development 
needs are best met by sound currencies, foreign investment, 
free trade--particularly with the U.S.--and the freeing of 
economies from regulation and government interference. The U.S. 
can play a more active role by supporting programs in a wide 
variety of fields: free trade, open foreign investment, micro- 
and small enterprise, natural resource management, child 
survival, health care and population planning.
    The responsibility for Africa's democratic development lies 
ultimately with the African people. The U.S. can play a helpful 
role in their efforts. Many African nations are taking their 
first tentative steps toward real democratic reform. The 
Committee believes that the U.S. must be actively engaged in 
encouraging these steps. Consequently, the Committee increased 
its original authorized level from $529 million in the 
introduced bill to $629 million for development activities 
under the DFA.
            A. Angola
    The Committee commends the leaders of both the Government 
of Angola and UNITA for the important steps they have taken 
toward peace. The recent meeting of President Jose Eduardo dos 
Santos and Dr. Jonas Savimbi is a positive indication that the 
two sides can lay the foundation of trust necessary for lasting 
peace.
    The Committee supports the Lusaka Protocol and UNAVEM III. 
The Committee has a number of concerns, however, including the 
use of mercenaries, particularly by the government, the lack of 
cooperation with international de-mining efforts by both sides, 
and the failure, thus far, of the U.N. to provide appropriate 
reconnaissance aircraft to its ceasefire observers.
            B. Ethiopia
    The Committee is concerned by the failure of the major 
opposition parties in Ethiopia to participate in recent 
elections. While the elections were held to be free and fair, 
they cannot be regarded as a complete success. The Committee 
urges the State Department to press both the government and 
recalcitrant political parties to cooperate in future civic 
activity.
            C. Kenya
    The Committee is greatly disturbed by the deteriorating 
human rights situation in Kenya and apparent complicity of the 
government in so-called ``ethnic clashes.'' The government 
stifled the press and antagonized non-governmental 
organizations. The Committee is concerned that the Government 
of Kenya has interpreted the renewed economic assistance from 
the international community as a license to engage in various 
human rights abuses. The Committee urges the Administration to 
work closely with other donor nations to present a united front 
and condemn these abuses.
            D. Mozambique
    The Committee is encouraged by the transition to peace in 
Mozambique and congratulates the people of Mozambique on the 
successful elections held last year. The Committee is 
concerned, however, that Mozambique--the poorest country in the 
world--is not taking advantage of its peace and stability to 
open up to foreign investment and make other important economic 
reforms. The United States and the international community 
invested a great deal of time and money in Mozambique--an 
investment that will only succeed if the Government makes 
significant changes in its budget priorities and approach to 
foreign investment. The Committee strongly urges the President 
and the State Department to continue to press the Government of 
Mozambique to make these necessary changes.
            E. Nigeria
    The Committee strongly supports the President's decision to 
decertify Nigeria for failure to cooperate with U.S. anti-
narcotics efforts. Nigerian drug courier networks and money-
laundering mechanisms are becoming more and more important in 
the world drug trade, while the Government of Nigeria does 
virtually nothing to stop it. The Committee notes additionally 
that Nigeria has done nothing to crack down on the rampant 
document fraud that facilitates these drug networks. The 
Committee urges the State Department, in the context of U.S. 
anti-narcotics efforts, to pressure the Nigerian government to 
crack down on visa and passport fraud.
    The Committee is alarmed by the naked power grab of the 
current Head of State, General Sani Abacha. Gen. Abacha has 
jailed his most serious political rivals and frustrated a 
constitutional conference, preventing it from advocating real 
reform. As the most populous and potentially the richest of 
sub-Saharan nations, Nigeria is crucial to the success of the 
region. The Committee calls upon the Government of Nigeria to 
respect the basic human rights of its citizens and to move 
quickly to build democratic institutions of government.
            F. Rwanda
    The Committee is gravely concerned about the potential for 
further bloodshed in Rwanda. Recognizing that the Government of 
Rwanda has limited resources, the Committee urges AID and the 
State Department to make available appropriate levels and types 
of assistance to Rwanda's devastated justice system. 
Additionally, the Committee strongly urges the President to 
devote sufficient resources to the International Tribunal in 
Rwanda.
3. American Schools and Hospitals Abroad

    The Committee continues to support the valuable work of the 
institutions which were funded under the American Schools and 
Hospitals Abroad (ASHA) program. The Committee chose 
specifically not to earmark funds for this program in light of 
the reductions made in this bill. Nevertheless, the Committee 
does support the work of the institutions mentioned below. The 
Committee regards the ASHA program as an effective public/
private partnership and calls on the Administration to maintain 
a program to support American educational and medical 
institutions abroad.
    The Committee recognizes the Administration's efforts to 
address past concerns that some ASHA funds were being provided 
to ``pervasively sectarian'' institutions. A new screening 
procedure for ASHA applications, implemented in response to a 
decision of the U.S. Court of Appeals for the Second Circuit, 
appears now to have laid to rest questions about the program's 
integrity.
    The Committee is aware of the work of many institutions, in 
particular:
          A. The American University of Beirut (AUB) has been 
        educating Middle Eastern leaders for nearly 130 years. 
        In the process, it earned immense respect for America 
        in a region of the world vital to U.S. interests. To 
        take full advantage of this resource, and to strengthen 
        AUB as an outpost of American culture and ideas in the 
        Middle East, the Committee supports continued funding 
        of AUB to assist it, in the aftermath of the Lebanese 
        war, to rebuild a quality faculty, to renovate its 
        facilities, and to modernize equipment for education 
        and medical care.
          B. The Committee supports continued funding for the 
        Hadassah Medical Organization in Israel. For more than 
        a decade, Hadassah served as a flagship institution and 
        model example of how Private Voluntary Organizations 
        can make significant contributions to U.S. foreign aid. 
        The Committee strongly supports Hadassah's outreach to 
        Arab patients and strongly supports the expansion of 
        such efforts.
          C. The Feinberg Graduate School (FGS) of the Weizmann 
        Institute of Science has long served as a model of 
        American scientific education for graduate science 
        students and scholars from around the world. Chartered 
        in the State of New York, FGS has for several decades 
        received U.S. Government funding support through the 
        ASHA program. These funds, which have been used 
        exclusively to purchase American-made scientific 
        equipment from American suppliers, enabled FGS and 
        Weizmann to maintain the level of excellence required 
        to attract and train future generations of scientists. 
        These funds also helped FGS and Weizmann to collaborate 
        with major U.S. research centers and universities, 
        enriching U.S. researchers and the U.S. research 
        agenda, and to develop scientific knowledge and 
        technologies of importance to the United States.

3. Family Planning Assistance

    In an effort to provide the Administration with maximum 
flexibility in administering U.S. development assistance, the 
Committee refrained from imposing earmarks on many programs. 
This action should in no way be interpreted as a reflection of 
diminishing interest on the part of the Committee in preserving 
adequate levels of funding for voluntary family planning 
assistance programs.
    Rapid population growth undermines the achievement of the 
broader objectives of better social, economic, environmental 
and health conditions in the developing world. Family planning 
is a critical investment in saving lives and in improving the 
health of women and children. As population growth outstrips 
economic growth, providing employment and social services 
becomes increasingly more difficult for developing countries.
    The Committee encourages the Administration to continue to 
focus resources on programs which provide high-quality 
voluntary family planning and related reproductive health 
services in both developing countries and countries in economic 
transition. These programs should strive to improve their 
coverage and to provide the benefits of these programs to 
underserved populations among the very poor, migrants, refugees 
and adolescents.
4. Biodiversity Conservation and Tropical Forest Protection

    Since 1987, the Congress directed AID to support 
biodiversity and tropical forest protection in developing 
countries. The Committee views such programs as an important 
aspect of U.S. development assistance. Maintaining a viable 
global resource basis for important genetic material is vital 
for pharmaceutical applications. Conservation of such resources 
enhances U.S. economic interests.
    The Committee reaffirms its support for biodiversity 
conservation programs. The Committee recommends that the 
Administration focus its efforts on biologically-diverse 
ecosystems facing the most immediate threat of degradation, 
sometimes referred to as the tropical forest ``hotspots.'' 
Biodiversity is not evenly distributed over the planet's 
surface. In order to maintain its effectiveness, the Committee 
believes the Administration must keep a narrow focus on key 
priority areas for conservation.
    The Committee also believes that the Administration should 
emphasize the use of U.S. NGOs and PVOs as efficient means of 
project implementation. The Administration should minimize 
unnecessary bureaucracy and deliver its assistance in a cost 
effective manner.
    Given the cut the Committee recommends for the Sustainable 
Development Assistance account and the Committee's 
understanding that AID biodiversity program spending totalled 
$90 million in FY95, the Committee recommends that the 
Administration provide at least a $60 million level of funding 
to biodiversity conservation programs in FY96.

5. Assistance for the Newly Independent States of the Former Soviet 
        Union

    $643 million is authorized by the Committee to carry out 
programs to support democratic political reform and market-
based economic transformation in FY96 under the FREEDOM Support 
Act of 1992. This represents a cut of $76.4 million from the 
FY95 level and $145 million from the President's FY96 request. 
$650 million is authorized for FREEDOM Support Act programs in 
FY97. This represents a cut of $69.4 million from the FY95 
level.
            A. Doubts About Agency Coordination
    The Committee is concerned over the manner in which the 
FY96 budget request for the New Independent States (NIS) of the 
former Soviet Union was presented. The FREEDOM Support Act of 
1992 clearly sets forth the central role of the State 
Department's Coordinator for Assistance to the NIS in 
allocating U.S. Government assistance to those states. 
Regrettably, the FY96 request of $788 million for assistance 
under the FREEDOM Support Act does not accurately reflect the 
entire request for such assistance. Instead, the Administration 
has requested $40 million separately for exchanges and training 
carried out by the U.S. Information Agency and an estimated $92 
million in trade and investment assistance separately through 
the Trade and Development Agency, the Overseas Private 
Investment Corporation and the Export-Import Bank.
    Following a February 1995 General Accounting Office report 
outlining problems in the proper coordination of U.S. 
Government assistance to the Newly Independent States, the 
manner of presentation of the budget request leaves the 
Committee in doubt as to the Administration's commitment to the 
Coordinator's role in allocating limited funds among various 
agencies in the most efficient manner possible.
            B. Lower Levels of Funding for the Program
    As introduced, H.R. 1561 authorized $700 million of the 
$788 million request for FREEDOM Support Act programs in FY96. 
An amendment adopted in Committee reduced the authorization 
further to $643 million (in favor of funding for the 
Development Fund for Africa). The Committee acknowledges this 
to be a considerable decline from the appropriation levels for 
assistance to the twelve Newly Independent States of $2.3 
billion in FY94 and $850 million in FY95. This lowered level of 
authorization will require the Coordinator to focus the U.S. 
assistance program in the NIS on the two basic objectives of 
democratic political reform and market-based economic 
transformation.
    The Committee strongly recommends and expects that the 
Coordinator will, in focusing on the prime objectives of the 
FREEDOM Support Act, desist from further funding for: nuclear 
safety activities in the NIS (only if such activities may be 
financed separately by the Department of Energy), restructuring 
of energy generation systems, technical advice on energy 
pricing, demonstration projects on energy conservation, 
contingency accounts, creation of non-governmental 
organizations, health care finance and health care improvement 
programs other than hospital partnerships, and environmental 
policy and technology.
    The Committee believes that the implementation of measures 
such as pricing of inputs and outputs, meant to rationalize 
market mechanisms, will bring about far greater improvements in 
areas of environmental and health care than that now brought 
about as a result of the limited technical assistance, 
equipment and training provided under FREEDOM Support programs.
    In addition, the Committee recommends that limited 
decreases in funding for the NIS Exchanges & Training Program 
and in economic restructuring projects be undertaken to provide 
sharper focus in both of those efforts.
            C. Country Allocations
    The Committee notes that the allocation of FREEDOM Support 
funding to activities in Russia declined from an estimated two-
thirds of the total in FY94 to an estimated one-third of the 
total under the FY96 request. At the same time, the allocation 
for Ukraine has risen from roughly 10% to an estimated 20% of 
the total.
    While acknowledging the importance of reform efforts in 
Russia to reform efforts in neighboring states, the Committee 
welcomes this more balanced allocation of assistance under the 
FREEDOM Support Act. It recommends that reductions in programs 
beyond the program terminations and adjustments it recommends 
be carried out in a manner that maintains better-balanced 
allocation among the NIS.
            D. Qualifications of Contractors and Aid Personnel
    The Committee recognizes that the success or failure of 
U.S. assistance programs in the NIS often rides on the caliber 
of the contractors chosen by the Administration to carry out 
those programs. The Committee is concerned over continuing 
allegations that the caliber of many AID contractors is, in 
fact, not good. The Committee, while therefore encouraged by 
reports of some very worthwhile AID efforts, such as the New 
Business Development and privatization programs in the NIS, 
realizes that even a sound and structured program can 
deteriorate in the hands of a contractor who is unfamiliar with 
the needs of the countries in which the contract is to be 
carried out--particularly if the contractor is not familiar 
with the local language, customs and business practices.
    The Committee therefore urges AID to redouble its efforts 
to incorporate in its contract proposals strong requirements 
for fluency in aid-recipient country languages and familiarity 
with aid-recipient country society, politics and business 
practices.
    The Committee is also not persuaded that such language 
fluency and regional expertise is yet the rule among AID 
employees as well, despite AID's efforts to address that 
important matter. AID is again strongly urged to redouble its 
efforts to ensure language and regional studies competency.
    Contractor and AID personnel familiarity with host country 
languages and practices is vital to soliciting the initiative 
and involvement in assistance projects by host country 
nationals--a vital factor in ensuring long-term impact and 
sustainability.
            E. The Eurasia Foundation
    The Committee is encouraged by the work of the Eurasia 
Foundation and calls on the Coordinator to ensure an allocation 
of up to $19 million in funding for the Foundation in FY96. At 
the same time, the Committee expects the Foundation to focus 
its small grants on projects and efforts that most directly 
contribute to political reform and market-based economic 
transformation. The Foundation is also strongly encouraged to 
raise substantial financing for its programs from the private 
sector as well.
            F. Aid Partnerships and Training Project
    The Committee is interested to see the ``Partnerships and 
Training Project,'' already under way with AID financing, 
funded at no less than $15 million in each of the two fiscal 
years authorized by this bill. As stated in the report language 
on assistance to Eastern Europe, the Committee sees this 
program as an interesting approach to building long-term 
sustainability into our technical assistance programs in the 
NIS. The Committee is concerned that current means of 
delivering technical assistance to the NIS may well be 
inadequate in that regard. The program also introduces a degree 
of contribution, either in-kind or financial, by participants 
in Partnership projects.
            G. Organizations That Contribute a Significant Portion to 
                    U.S. Programs
    The Committee is eager to see the Administration's support 
and funding for organizations involved in FREEDOM Support 
programs that bring voluntary, in-kind or financial 
contributions to those programs and/or elicit such 
contributions from host country institutions and businesses. 
The Committee particularly notes the efforts of the Citizens 
Democracy Corps, the International Executive Service Corps, the 
Civic Education Project, and the American Bar Association's 
Central and East European Law Initiative program in this regard 
and strongly encourages the Coordinator and AID to fund or to 
continue funding for organizations such as these, which bring a 
``value-added'' factor to the programs in both the New 
Independent States and Eastern Europe. As U.S. Government 
financial resources under both the Support for East European 
Democracy (SEED) and FREEDOM Support programs decline over the 
next few years, the participation of such organizations may 
well be crucial.
            H. Assistance to Fight Crime and Corruption
    The Committee expects the Coordinator to ensure that up to 
$15 million is allocated in each of FY96 and FY97 to support 
Rule of Law and law enforcement and criminal justice assistance 
activities in the NIS.
            I. Victims of Chernobyl
    The Committee believes that U.S. assistance should be made 
available for the victims of Chernobyl, the largest nuclear 
disaster in history. Nearly five million people in Belarus, 
Russia and the Ukraine live in areas affected by the accident's 
radioactive fallout. Thousands have died and the health of 
hundreds of thousands of others has deteriorated, with 
particular consequences for children, especially thyroid 
cancer. Because of the latency period of various radiation-
related diseases, the peak effect of the disaster will not be 
evident until the late 1990's. A severe shortage of medical 
supplies and effective health care treatment continues. 
Technical assistance is also needed for decontamination and 
resettlement efforts to prevent further radioactive 
contamination from Chernobyl. The Committee urges AID to 
provide up to $10,000,000 for needed assistance, including 
transportation of materials. Special attention should be given 
to the health care needs of children.
            J. Title VIII
    The Committee supports funding from the FREEDOM Support Act 
for the Russian, Eurasian and East European Research and 
Training program (referred to as the ``Title VIII'' program). 
The Committee also supports funding for this program from the 
assistance account for Eastern Europe. This program is the only 
U.S. Government-sponsored program that supports American 
research, training and language expertise concerning states of 
Eastern Europe and the former Soviet Union. The program is 
intended to ensure that broad-based regional expertise is 
available in both the academic and policy-making community.
    Given the declining authorization levels contained in the 
bill for both Eastern Europe and the New Independent States, 
the Committee supports funding for this program at $5 million 
in FY96 and $4.5 million in FY97, with one-third of that total 
funded from the East European account and two-thirds funded 
from the NIS account.
            K. Purchase of Broadcast Equipment for Independent Media
    The Committee recommends that the Coordinator and AID 
employ the ``Notwithstanding'' authority provided in the 
FREEDOM Support Act to ensure that efforts to provide 
broadcasting equipment to independent media outlets move 
forward expeditiously. The Committee finds that coverage of the 
brutal Russian military operation in the separatist region of 
Chechnya by independent Russian media clearly demonstrated the 
positive impact that the free flow of information can have for 
political reform in the NIS.
    Regrettably, Russian broadcast equipment standards do not 
match American equipment standards. A judicious use of the 
``Notwithstanding'' authority in the FREEDOM Support Act should 
assist in furthering U.S. reform objectives throughout the NIS.

6. Assistance for East European Countries

    The Committee authorized to be appropriated $325 million in 
FY96 for programs to support democratic political reform and 
market-based economic transformation in the countries of 
Eastern Europe under the Support for East European Democracy 
(SEED) Act of 1989. $275 million is authorized for FY97. This 
represents a cut of $34 million from the FY95 spending level 
and a cut of $155 million from the President's request. For 
FY97, it represents a cut of $84 million from the FY95 spending 
level.
            A. Lower Levels of Funding for the Program
    As the level of resources available for projects carried 
out under important programs such as this declines, the 
Committee expects the Coordinator for East European assistance 
to conduct a rigorous review of all SEED Act projects. The 
fundamental purpose of SEED Act assistance is to further U.S. 
national interests in Europe through promotion of democratic 
political reform and market-based economic transformation in 
the central and eastern part of that important continent. The 
Committee notes that the SEED Act, while specifically noting 
those two objectives, also authorized a wide variety of 
projects and activities, including environmental and medical 
assistance.
    The Committee shares the concern to see improvements in the 
environment and in health care systems in the countries of 
Eastern Europe. It notes that, as of the end of FY94, $142 
million in SEED funds had been allocated to these two project 
areas over five years. It is apparent, however, that as the 
overall appropriation for SEED Act activities declines, SEED 
projects must be more directly targeted towards democratic 
political reform and market-based economic transformation. It 
is also the expectation of the Committee that as steps to 
rationalize market economic mechanisms (such as prices) are 
carried out in these countries, increased efficiency and 
clearer understanding of supply and demand will create far more 
extensive improvements in areas such as the environment and 
health care systems than that achieved by already-limited SEED 
Act assistance. The Committee therefore expects the Coordinator 
of East European assistance to ensure that the already-limited 
SEED Act projects in such areas are ended. It is the 
expectation of the Committee that international financial and 
development institutions are best positioned to carry on with 
such projects where they are desirable.
    Furthermore, the Coordinator for East European assistance 
is in a position to review on-going projects under the SEED Act 
and weed out programs that are duplicative in nature. The 
Committee submitted several questions for answers in writing 
subsequent to the hearing held on SEED Act programs in March 
1995. Some of the most important of those questions related to 
perceived duplication among SEED projects. The Committee does 
not find the answers provided to those questions persuasive, 
and expects the Coordinator to take expeditious steps to ensure 
that duplication among projects does not continue.
            B. Language and Regional Expertise Among Contractors
    The Committee would welcome and expects to receive by 
September 30, 1995 a report by the Coordinator for East 
European assistance and the Assistant AID Administrator for 
Europe and the New Independent States on steps that have been 
taken to ensure that a greater proportion of contractors 
participating in SEED Act-financed projects possess adequate 
fluency in the language of the country to which the assistance 
is delivered, as well as adequate knowledge of the country, its 
society, culture, political system and business practices. Such 
a report should provide a listing and brief description of 
contracts awarded under the SEED Act that required such 
language fluency and background knowledge of the recipient 
country and its surrounding region. The report shall compare 
that listing with the overall list of contracts awarded under 
the SEED Act.
            C. Title VIII
    The Committee supports funding from the Eastern European 
and Baltic States account for the Russian, Eurasian and East 
European Research and Training program (referred to as the 
``Title VIII'' program). The Committee also supports funding 
for this program from the assistance account for the New 
Independent States. This program is the only U.S. Government-
sponsored program that supports American research, training and 
language expertise concerning the states of Eastern Europe and 
the former Soviet Union. The program is intended to ensure that 
broad-based regional expertise is available in both the 
academic and policy-making community.
    Given the declining authorization levels contained in the 
bill for both Eastern Europe and the New Independent States, 
the Committee supports funding for this program at $5 million 
in FY96 and at $4.5 million in FY97, with one-third of that 
total funded from the East European account and two-thirds 
funded from the New Independent States account.
             D. Central and Eastern European Graduate Fellowship 
                    Program
    The Committee supports the continuation of the Central and 
Eastern European Graduate Fellowship (CEEGF) program, which 
enables graduate students from that region to participate in 
masters degree programs in the U.S. in a number of fields of 
direct relevance to the transition to market economies and 
democratic political systems in Central and Eastern Europe.
    The CEEGF program is a useful counterpart to the Muskie 
Fellowship program, which provides similar opportunities for 
graduate students from the states of the former Soviet Union. 
The Committee recommends that the level of funding for this 
program from the Eastern European assistance account be at a 
level of funding provided from that account in FY95, adjusted 
proportionately to reflect any overall decreases in the 
appropriation for the East European account in each of those 
two fiscal years.
    The Committee furthermore recommends that administration of 
recruitment, selection, and placement of fellows under the 
CEEGF program be conducted on a competitive basis by qualified 
non-profit organizations.
            E. Support for Activities of the North Atlantic Assembly
    The Committee notes that much of the funding for the Rose-
Roth Initiative has been provided on a grant basis from the 
account for Eastern Europe and the Baltic States. The Committee 
supports continued grant support from funds appropriated for 
assistance to Eastern Europe under the authority of the Support 
for East European Democracy (SEED) Act. Such grant funds should 
total no more than $100,000 in either FY96 or FY97. The 
Committee expects that any reductions in Assembly activities 
that may come about as a result of that level of grant 
assistance will be applied to activities that might otherwise 
involve non-parliamentary staff and that might otherwise 
involve fellowships or other academic study or research 
opportunities of more than two weeks' duration.
             F. Partnerships and Training Project
    The Committee is interested to see the ``Partnerships and 
Training Project,'' already begun by the Agency for 
International Development in the states of the former Soviet 
Union, introduced into the states of Eastern Europe. To that 
end, the Committee recommends that $10 million in FY96 funds 
for assistance to Eastern Europe and the Baltic States be 
provided for such a project in that region. The Committee 
supports this measure in the expectation that the self-
sustaining institutional partnerships that might arise from 
this approach will assist in furthering the U.S. foreign policy 
goals of democratization and market transformation long after 
U.S. assistance programs for the region have ended. The 
Committee is concerned that current means of delivering 
technical assistance to the dates of the region may be 
inadequate in that regard.
             G. Assistance for Rule of Law, Law Enforcement and 
                    Criminal Justice Activities
    The Committee expects the Coordinator to ensure that up to 
$15 million is allocated to Rule of Law, law enforcement and 
criminal justice assistance activities in the East European and 
Baltic States in each of the two fiscal years authorized by 
this Bill.
            H. Croatia
    The Committee supports efforts by the Republic of Croatia 
to stabilize the Croatian economy and introduce market-based 
reforms while faced with the military division of Croatia. The 
Committee notes that the U.S. Export-Import Bank and Overseas 
Private Investment Corporation have recently raised Croatia's 
credit rating.
    The Committee supports the creation of an Enterprise Fund 
to support further economic reforms and growth in Croatia and 
in certain of its neighboring states upon the peaceful 
resolution of the conflict there.

7. United States-Asia Environmental Partnership (US-AEP)

    The Committee recommends that the export promotion 
activities of the United States-Asia Environmental Partnership 
(US-AEP) program be discontinued and consolidated in the Trade 
and Development Agency (TDA) and the United States & Foreign 
Commercial Service (US&FCS;), respectively. The Committee 
believes that US-AEP activities--such as the funding of 
feasibility studies, its placement of commercial officers, and 
its other export promotion activities--can be more efficiently 
performed by TDA and US&FCS.;
    The Committee notes that the Trade Promotion Coordination 
Committee, which was statutorily created by Congress in 1992 to 
oversee all trade promotion efforts, recommended in its 1994 
report that funding for all feasibility studies, including US-
AEP funded feasibility studies, be consolidated in TDA.
    The US-AEP began operation in FY92 and to date has expended 
$58.1 million from its five-year core AID grant of $100 
million. US-AEP has 15 overseas offices in 12 Asian countries 
and territories. The partnership claims to have raised outside 
contributions to match core grant funds at a ratio of 4/1 
(contributions/core grant). To date however, outside 
contributions amount to only $142.5. Moreover, the partnership 
lists United States Government agencies as a source of 
``outside contributions.''

8. The Regional Asia Democracy Fund

    This is an entirely new program and it is still unclear how 
the funds would be spent. The Committee sees some merit in 
providing funds for American and, possibly, Chinese and Tibetan 
NGO's working on human rights and democracy in China and Tibet. 
However, there seem to be organizational obstacles to setting 
up this program. In addition, the Committee raises the question 
as to whether this assistance is permissible given the Foreign 
Assistance Act's prohibition on aid to Communist countries. The 
Committee needs to be assured that the aid would not go to the 
PRC government or PRC Government-sponsored Chinese or Tibetan 
NGOs but to truly independent NGOs working on human rights and 
democracy-building in China.

9. Port Cooperation

    The Committee urges the AID to study the involvement of 
U.S. seaports in assisting developing world seaports to 
transition into a modern world economy.

10. U.S. Business Volunteer Programs

    The New Partnership Initiative proposed by the 
Administration appropriately would enhance the roles of both 
PVOs and small and medium size enterprises (SMEs) in U.S. 
development assistance programs.
    The private sector is the principle component of 
development. Within the private sector, SMEs are important. 
U.S. expertise can be particularly effective with SMEs. As in 
the United States, such enterprises serve as the backbone of 
economic growth and the principle source of new employment. 
Small and medium-size enterprises are more responsive to market 
signals and outside assistance. They are part of the pluralism 
of civic society that is so important to creating demand and 
support for reform and to consolidating and sustaining 
democratic institutions.
    Business volunteer programs, such as VOCA, CDC, IESC, and 
the MBA Enterprise Corps, among others, are an effective means 
to support institutions and new markets in developing 
countries--to the benefit of the client company, the economy 
and U.S. economic interests. By applying real world expertise 
from volunteer U.S. business persons at the grass roots level, 
these programs offer high impact, effective people-to-people 
approaches to enterprise and economic development.
    In the time of budget constraints, the tripartite public/
private partnership of the volunteer, the client company, and 
AID and other donor organizations provides a particularly cost-
effective means of supporting enterprise development. The 
experience and capabilities of these programs should 
increasingly be looked to for the implementation of U.S. 
enterprise development programs.
    Volunteer business programs benefit U.S. interests by 
promoting indigenous enterprise and economic development, 
economic and political reform and stability, and U.S. trade 
opportunities.

11. The U.S.-Israel Cooperative Development Research Program

    The Cooperative Development Research Program (CDR) promotes 
international development through science and technology. It is 
based on several important premises: that no country has a 
monopoly on good ideas; that less developed countries (LDC's) 
can and must learn how to solve their own problems; and that 
strengthening local technological capacity can lead to 
sustainable growth. Many of the new technologies that the CDR 
develops provide concrete economic benefits to the United 
States, in terms of services, exports and jobs. By providing 
tangible mutual benefits, the CDR strengthens U.S.-Israeli-LDC 
ties, and helps build the international cooperation and trust 
needed for peace.
12. WHO and PAHO

    The Committee urges AID to provide resources for two 
important vaccine initiatives led by the World Health 
Organization (WHO) and the Pan American Health Organization 
(PAHO): global elimination of polio and measles in the 
Americas. The Committee commends AID for the significant role 
it played in the development of vaccines and in assuring viable 
programs to realize their full life-saving potential.
    The success of vaccination programs eradicated smallpox 
from the entire world with a modest U.S. investment of $40 
million, each saving the taxpayers more than ten times that 
amount for vaccinations we no longer give.

13. Education

    The Committee believes that foreign assistance programs of 
the U.S. Government need have an emphasis on long-term 
effectiveness. When the U.S. Government supports basic 
education, we are not only developing key trading partners, we 
are also supporting the development of stable communities and 
the development of democracies. Therefore, the Committee 
supports a U.S. Government foreign assistance program that 
invests in education and training.

Section 3222. Child Survival Activities, Vitamin A Deficiency Program, 
        and Related Activity

    Section 3222 would earmark $280 million in FY96 and FY97 
from the Development Assistance, Development Fund for Africa, 
ESF and Multilateral Assistance Initiative (MAI) accounts for 
child survival programs. Of these amounts not less than $30 
million shall be provided to private and voluntary 
organizations under the PVO Child Survival grants program. An 
additional $25 million for FY96 and FY97 is earmarked for 
vitamin A deficiency and related program activities.
    The programs funded through these allocations have 
contributed significantly to the successful achievement of a 
child vaccination rate of 80 percent worldwide, which is saving 
three million children annually. Oral rehydration therapy saves 
more than a million lives every year. Vitamin and micronutrient 
programs, also funded through these allocations, are a low-cost 
way of eliminating illness, blindness, and death among children 
in areas of the world with chronic vitamin deficiencies. The 
allocation for tropical disease research will set researchers 
on the road toward eliminating leprosy, river blindness, and 
malaria by the year 2010. In short, the specific fund 
allocations in this bill will help guarantee the United States 
a highly favorable cost-benefit ratio in its foreign aid 
program.

Section 3223. Assistance for Family Planning

    This section includes current appropriations law on family 
planning assistance. Under subsection (a) of this provision, 
recipients of assistance under the Foreign Assistance Act's 
section 104(b) (the main family planning section of the Act), 
would only be allowed for projects ``which offer, either 
directly or through referral to, or information about access 
to, a broad range of family planning methods and services.''
    Under subsection (b), funds may not be made available to 
``any organization or program which, as determined by the 
President, supports or participated in the management of a 
program of coercive abortion or involuntary sterilization.''
    Under subsection (c), in providing funds for natural family 
planning, the administration ``shall not discriminate against 
applicants because of any religious or conscientious commitment 
by such applicants to offer only natural family planning 
services.''
    Under subsection (d), the bill adds the appropriations 
language stating that ``for the purposes of this paragraph, the 
term motivate shall not be construed to prohibit the provision, 
consistent with local law, of information and counseling 
concerning all pregnancy options, including abortion.''
    The Committee amended the permanent statute and included 
language in the bill that reaffirms current law and policy 
governing population assistance under the appropriations 
legislation. The bill requires that no funds may be made 
available to any organization or program which, as determined 
by the President, supports or participates in the management of 
a program of coercive abortion or involuntary sterilization.
    The Committee wishes to clarify that it remains permissible 
under current law to provide treatment to women who are 
suffering from medical complications as a result of septic or 
incomplete abortion. Under language included in the bill, 
population assistance may only be provided to voluntary family 
planning projects that offer (either directly or through 
referral to or information about) access to a broad range of 
family planning information and services. An additional 
provision requires that in awarding grants for natural family 
planning, no applicant shall be discriminated against because 
of an applicant's religious or conscientious commitment to 
offer only natural family planning. However, all such 
applicants shall comply with the requirements of informed 
consent included in the bill.
    During its deliberations, the Committee considered and 
rejected amendments which sought to add additional statutory 
prohibitions against the funding of abortion and restrictions 
on the use of population assistance funds.

Section 3224. Assistance for the Independent States of the Former 
        Soviet Union

    Section 3224 amends the ``FREEDOM Support Act'' aid program 
for Russia, Ukraine and ten other former Soviet Republics to 
attach current appropriations law and new conditions for the 
provision of such aid to any of these states. As under current 
appropriations law, this section makes it clear that no aid 
under that Act shall go to enhance the military capability of 
any of the recipients and that aid should be provided primarily 
through private voluntary organizations, non-governmental 
organizations or the private sector.
    Under current law, the FREEDOM Support Act (Chapter 11 of 
the Foreign Assistance Act) now contains conditions prohibiting 
aid to any government that the President determines:
          (a) is engaged in a consistent pattern of gross 
        violations of internationally recognized human rights.
          (b) has failed to take constructive actions to 
        facilitate the implementation of certain arms control 
        agreements.
          (c) has transferred missile technology inconsistent 
        with the guidelines of the Missile Technology Control 
        Regime.
          (d) has knowingly made certain transfers of material, 
        equipment or technology that would contribute 
        significantly to the recipient country's ability to 
        manufacture weapons of mass destruction, or that has 
        violated certain other proliferation-related standards.
The President is permitted to waive the above conditions in 
certain circumstances.
    The conditions also include a prohibition on FREEDOM 
Support aid to a government that is involved in nuclear 
enrichment transfers, nuclear reprocessing transfers, illegal 
exports for nuclear explosive devices and nuclear detonations--
referencing Sections 669 and 670 of the Foreign Assistance Act 
and sections 306(a)(1) and 307 of the Chemical and Biological 
Weapons Control and Warfare Elimination Act of 1991. The 
President may not waive these provisions.
    In approving this bill, the Committee inserted additional 
conditions regarding the provision of assistance to the states 
of the former Soviet Union under the FREEDOM Support Act of 
1992. Specifically, the bill states that no assistance may be 
provided:
          A. If the President determines that the government of 
        any of the former Soviet republics directs actions that 
        violate the territorial integrity or national 
        sovereignty of any other of the former Soviet 
        republics. Humanitarian, disaster and refugee relief is 
        exempted from this particular prohibition.
          B. To enhance the military capability of any of the 
        former Soviet republics, with the exception of programs 
        of support for demilitarization, defense conversion, 
        nonproliferation, and troop withdrawal.
          C. To the government of any of the former Soviet 
        republics that sells nuclear reactor components to Iran 
        if the President determines that such sales are not 
        consistent with U.S. national security objectives and 
        U.S. concerns regarding proliferation of nuclear 
        weapons. Exemptions are provided for humanitarian, 
        disaster and refugee relief, and for assistance in 
        support of democratic political reform and rule of law 
        activities, and assistance for the creation of a 
        private sector and non-governmental sector independent 
        of government ownership and control.
    The bill also inserts new conditions governing the 
provision of FREEDOM Support Act assistance. Under this section 
the Government of Russia may not receive assistance if:
          A. The President certifies that it is not taking 
        various steps to achieve a peaceful resolution of the 
        conflict in the region of Chechnya. (Exemptions are 
        provided for humanitarian, disaster and refugee relief, 
        and for assistance in support of democratic political 
        reform and rule of law activities, and for assistance 
        for the creation of a private sector and non-
        governmental sector independent of government ownership 
        and control).
          B. The Government of Russia is not implementing 
        comprehensive economic reforms or if it employs any 
        assistance provided under the FREEDOM Support Act to 
        expropriate assets and investments.
    The bill maintains the authority granted to the President 
under the FREEDOM Support Act to issue a waiver of the 
conditions in that Act should that be determined to be in the 
national interest.
    In attempting to address the several issues of great 
concern in relations between the United States and the Russian 
Federation, the Committee maintains the distinction between 
U.S. assistance that goes to the Government of Russia and U.S. 
assistance that goes to support reform-minded elements, 
particularly the on-going effort to support the emergence of a 
private sector and non-governmental sector outside the 
government's control.
    In FY96, roughly 30% of our FREEDOM Support Act assistance 
will be allocated to programs intended to benefit the people of 
Russia. Most of that assistance does not go to assist the 
Russian Government directly. The bulk of that assistance 
instead goes to create institutions and a growing private 
sector of the Russian economy that will be free of government 
ownership and control. Breaking down the former Soviet 
government's totalitarian structure of control over Russia's 
society, politics and economy is in the U.S. national security 
interest.
    The Committee takes note, in particular, of recent 
statements by Mr. Sergei Kovalev, a prominent critic of the 
Russian Government's actions in the separatist region of 
Chechnya, who has called on the U.S. to maintain its support 
and economic assistance for reforms in Russia while pressing 
the Russian Government on issues of concern.
    The Committee does not discount the importance of the 
issues over which the United States and Russia now have serious 
disagreements. The Russian military operation that began in the 
separatist region of Chechnya in December 1994 has been 
extremely brutal. The U.S. and its allies in Europe must search 
for ways to ensure that the Government of Russia lives up to 
its obligations as a member of the Organization on Security and 
Cooperation in Europe (OSCE) and takes concrete steps to end 
the conflict in Chechnya.
    The sale of civilian nuclear reactors to Iran by Russia 
will very likely prove a setback to U.S. efforts to ensure that 
the Iranian regime does not develop the ability to produce 
nuclear weapons. Efforts to dissuade the Russian Government 
from carrying through with this sale to Iran have the strong 
support of the Committee. The Committee believes that the 
additional conditions it has placed on assistance to Russia or 
any other of the New Independent States that might sell nuclear 
reactor components to Iran will help in achieving the 
cancellation of this or other reactor sales to Iran. The 
Committee also notes that under this new condition on 
assistance under the FREEDOM Support Act, the President must 
determine that such sales are consistent with U.S. national 
security and non-proliferation concerns. That is a higher 
standard than simply requiring that such states meet 
international law and treaty standards.
    Finally, the Committee recommends that the Congress search 
for additional means by which it might more directly and 
effectively influence the Russian Government on issues such as 
the sale of reactors to Iran and the military operation in 
Chechnya. It seems obvious that such influence is most closely 
associated with U.S. assistance and U.S. programs that directly 
involve the Russian Government or benefit it.
    In fact, much of our FREEDOM Support Act assistance does 
not go to the Government of Russia, and so its influence over 
governmental actions is limited. The Committee notes, however, 
that the Congress has already enacted into law a prohibition on 
any U.S. nuclear cooperation agreement with Russia, under 
Section 123 of the Atomic Energy Act, until U.S. concerns over 
the reactor sale to Iran are addressed (P.L. 104-6). The 
provisions of this bill, if enacted into law, would end U.S. 
assistance to the Government of Russia until those concerns 
(and concerns over the situation in Chechnya) are met.
    Should Russia's policies not respond to U.S. concerns in 
areas of serious disagreement between the two countries, the 
Committee would recommend that the Congress consider at the 
appropriate time ending support for other programs and 
assistance that directly benefit the Russian Government or its 
ministries and agencies. Specifically, contracts with the 
Russian Space Agency might be terminated, assistance for 
defense conversion joint venture projects might be withheld and 
support for financing of the Russian Government through the 
International Monetary Fund and other international financial 
institutions might be questioned.
    At the same time, the Committee suggests that U.S. efforts 
to resolve the serious disagreements now outstanding in our 
relations with Russia employ incentives, wherever those are 
available. The Committee notes a recent report alleging that 
the process by which the United States is to purchase highly-
enriched uranium from Russia is not operating as was envisioned 
when the federally-owned U.S. Enrichment Corporation was 
created to carry out such purchases. The Committee recommends 
that responsible U.S. Government agencies review the workings 
of the Enrichment Corporation to ensure that the Russian 
Ministry of Atomic Energy is afforded the opportunity to earn 
hard currency in transactions supported by the U.S. rather than 
in unwelcome sales transactions, such as the sale of nuclear 
reactors to Iran.

Section 3225. Development Fund for Latin America and the Caribbean

1. Analysis

    Section 3225 authorizes a ``Development Fund for Latin 
America and the Caribbean'' to promote democracy, sustainable 
development, and economic growth in the region. The intent of 
this section is not to earmark a specific sum for these 
activities. The Committee strongly opposes any new regional 
earmarks for development assistance and related programs. This 
section merely states that ``not less than an amount requested 
by the President and approved by Congress in appropriations 
Acts shall be made available'' to carry out these activities 
under the Fund.
    Because of proximity and interdependence, certain 
development issues in the Western Hemisphere naturally have a 
unique impact on the well-being of the American people. 
Therefore, the Committee concluded that programs focused on 
U.S. priorities close to home--for example, private sector-led 
growth, free-market economic reform, trade liberalization, 
anti-drug cooperation, democratic stability in neighboring 
states--are among the most worthy investments of U.S. aid funds 
that should be spared from deep reductions.
    The Committee notes that because the Western Hemisphere, 
Asia, the Middle East and Western Europe have not had 
geographic earmarks, some programs in these regions have 
suffered. For example, current funding for programs in Latin 
America and the Caribbean already has been reduced by 38 
percent from FY93 levels ($1.02 billion). In another example, 
because of the disproportionate commitment President Clinton 
has made in Haiti--spending approximately $1.5 billion from 
FY94 to present--funding was stripped from many AID programs, 
particularly in the Western Hemisphere, with little apparent 
regard for bilateral commitments in third countries or their 
relative importance to U.S. interests in the region.
    In particular, the Committee recognizes the contributions 
made by certain AID programs in supporting democracy and 
political stability over the last decade in the Western 
Hemisphere. The Committee expects that AID will treat these 
programs as priorities, including the Latin American Journalism 
project, strengthening legislatures throughout the Hemisphere, 
rule of law programs, and support for the Inter-American 
Institute for Human Rights.

2. General Commentary

    The Committee recognizes that 15 years of promoting 
representative democracy and free market economies in the 
Western Hemisphere has produced a dramatic legacy:
          Military dictatorships of the left and right have 
        given way to elected civilians. Military juntas in 
        Grenada, Nicaragua, Haiti, El Salvador, Chile, 
        Argentina and elsewhere submitted to intense U.S. 
        pressure to hold and respect democratic elections. In 
        1980, only 30% of the people in Latin America and the 
        Caribbean lived under democratically-elected 
        governments. Today, that number is well over 90%.
          President Reagan and Bush's prescriptions for the 
        Latin debt crisis and hemispheric free trade helped 
        many regional governments break their economic free-
        fall and emerge from the ``lost decade'' of the 1970's. 
        President Bush's 1989 Enterprise for the Americas 
        Initiative further strengthened the hand of fiscal 
        reformers who raced to rationalize economic policies, 
        privatize statist enterprises, and liberalize trade and 
        investment.
    The Committee notes a new irony: the terms of reference in 
the Americas changed so dramatically since President Reagan 
laid out a vision for hemispheric free trade in 1979 that the 
Latin American and Caribbean leaders were more eager to include 
trade on the agenda of the December 1994 Summit of the Americas 
than the U.S. Administration. Moreover, democratically-elected 
leaders came to the table with new legitimacy and 
accountability--eager and able to follow through with ambitious 
plans for political and economic cooperation in the region.
    The Committee recognizes that the stakes are high for the 
United States in this Hemisphere:
          U.S. exports to Canada, Mexico, the Caribbean, and 
        Central and South America totalled about $180 billion 
        in 1993, nearly 40 percent of all U.S. sales abroad.
          Latin America is the only area of the world in which 
        we enjoy a substantial trade surplus--more than $4 
        billion. (The United States sells more today to Brazil 
        than to Russia, and more to Ecuador than to Hungary and 
        Poland combined.) U.S. exports to Latin America 
        totalled $80 billion in 1993, employing 1.5 million 
        Americans.
    The Committee recognizes the important regional objectives 
advanced at the 1994 Summit of the Americas (held in Miami), 
particularly the fundamental recognition that free market 
policies and democratic governments are indispensable to 
economic growth and modernization. The 34 heads of government 
in attendance signed a ``Plan of Action'' and a ``Declaration 
of Principles'' in which they agreed, inter alia, to:
          Form a ``Free Trade Area of the Americas,'' in which 
        barriers to trade and investment will be eliminated 
        progressively, with negotiations completed by the year 
        2005;
          Preserve and strengthen democracy;
          Eradicate poverty and discrimination; and,
          Guarantee sustainable development and conserve the 
        environment.
    This Declaration also cited the pernicious effects of crime 
and illegal narcotics and condemned terrorism; highlighted the 
marginalization of the very poor and the indigenous people and 
acknowledged significant reforms that make the Organization of 
American States a vital organ in following through with many 
parts of the Summit agenda.
    The Committee endorses many of the specific initiatives set 
forth in the Summit's ``Plan of Action,'' in particular 
commitments to:
          Launch the Free Trade Area of the Americas by 
        directing trade ministers to take concrete steps under 
        a specific timetable, to study existing trade 
        arrangements;
          Combat illegal drugs and related crime, promote 
        programs that reduce the demand for illicit drugs, 
        reduce cultivation and processing, support a global 
        anti-drug conference;
          Practical initiatives to strengthen democratic 
        institutions and the rule of law, particularly through 
        legislatures and the courts; and
          Take steps to make government transparent and 
        accountable and to battle corruption.
    The Committee stresses that the United States must not 
shrink from its leading role in preserving stability and 
security in the Hemisphere. Although multilateral organizations 
and agreements provide some basis for regional security 
cooperation, the United States must be prepared to act alone if 
necessary to defend its vital national security interests in 
the region. The Committee asserts that the reliance of the 
Clinton Administration on the United Nations Security Council 
in the case of Haiti should not serve as a precedent for 
deferring to that or any other multilateral organ on matters of 
vital U.S. national interest. Multilateralism should be a tool 
of U.S. policy, not a substitute for U.S. leadership.
    The Committee urges the Administration to review existing 
regional security arrangements and organizations for their 
relevance and effectiveness in a post-Cold War era. The 
Administration should also redouble its efforts through 
assistance programs and diplomacy to promote effective control 
of democratically elected civilians over the military.
            A. Chile
    Chile's free-market economic policies--which have been 
sustained since the 1980's--generated impressive economic 
growth and spurred remarkable expansion in trade and investment 
with the United States and the rest of the Hemisphere. U.S. 
trade with Chile has doubled since 1986. In December 1994, the 
NAFTA governments declared their intention to pursue Chile's 
accession to the trade agreement. The Committee supports 
vigorous consideration of Chile's accession to NAFTA.
            B. El Salvador
    The Committee applauds the progress made by the people of 
El Salvador from across the political spectrum to implement the 
January 1992 peace accords to put a definitive end to a 12-year 
civil war, build a more just society, and reconstruct the 
Salvadoran economy. The Committee recognizes that the United 
States played a crucial role in this process--through 
diplomatic support and by following through with commitments of 
military and development assistance. The Committee joins the 
Department of State in encouraging other donor countries and 
entities in meeting their commitments to help implement the 
peace accords. The Committee also intends that AID provide 
priority funding to El Salvador programs, particularly those 
aimed at ensuring broad-based, private sector-led economic 
growth and strengthening democratic institutions, in order to 
help ensure a permanent peace with democracy that serves as a 
global model.
            C. Haiti
    Even with the extraordinary investment of U.S. military 
might and financial assistance, the opportunity for making 
profound economic and political changes in Haiti is fleeting. 
The Committee believes that without urgent attention to the 
recommendations outlined below, high expectations will not be 
met, dissatisfaction and instability may ensue, momentum behind 
reform will be lost, and the international community might 
abandon its commitment to shoulder more of the burden in Haiti:
          The United States shouldered a disproportionate cost 
        in restoring Haiti's duly-elected government, and U.S. 
        companies deserve priority consideration in competing 
        for trade, investment, privatization, and contract 
        opportunities.
          AID should have included urgent support for the 
        private sector in its original aid plans. The Overseas 
        Private Investment Corporation should have moved faster 
        in supporting private sector companies interested in 
        restoring U.S. and Haitian jobs. The Committee notes 
        that companies that expanded in Haiti in the mid-1980's 
        at the behest of U.S. officials were hardest-hit by the 
        recent embargo. Any U.S. support program that does not 
        help these companies, which happen to be the most 
        prepared to expand in Haiti and create jobs 
        immediately, has failed a key test.
          The conduct of free and fair elections and the 
        peaceful transition of power to a new president in 
        February 1996 are key tests of our Haiti policy. The 
        Committee is concerned with the capacity of the Haitian 
        government to meet the tight schedule for holding 
        elections as well as the lack of a secure, and even 
        ``playing field''. Elections preparations will require 
        urgent and careful attention by the Embassy and AID. 
        Non-governmental organizations familiar with Haitian 
        politics, such as the Center for Democracy and the 
        International Republican Institute for International 
        Affairs, must be enlisted to support a fair and 
        transparent process.
          The Committee believes that a professionally-trained, 
        adequately equipped, and nonpartisan police force is 
        needed to provide political and economic stability.
          The Committee believes that a competent, independent 
        parliament is needed to institutionalize democracy and 
        to efficiently promulgate the economic and political 
        reforms. The Committee believes that U.S. support for 
        the parliament was inadequate in the days immediately 
        following the U.S.-led occupation in September 1994, 
        fueling the perception that U.S. policy was not to 
        restore democratic institutions but merely to return 
        the president to office. AID should enlist the 
        involvement of technically experienced non-governmental 
        organizations familiar with the Haitian political 
        scene, such as the Center for Democracy, to support the 
        parliament.
            D. Jamaica
    The Committee recognizes that Jamaica emerged as a key 
partner of the United States in the Caribbean Basin. Jamaica 
implemented wide-ranging economic and trade liberalization 
reforms, which have stimulated an active private sector and 
expanded U.S.-Jamaica commercial links. In the past year alone, 
Jamaica reaffirmed the importance of this relationship by 
signing a Bilateral Investment Treaty and an intellectual 
property rights agreement with the United States. Moreover, 
Jamaica maintained excellent cooperation in fighting illicit 
narcotics trafficking in the region. The Committee notes that 
U.S. programs aimed at supporting economic development and 
counternarcotics efforts, in particular, have great merit.
            E. Mexico
    With unprecedented U.S. support (including the availability 
of $20 billion in economic stabilization funds by the 
President), Mexico is gradually overcoming its economic crisis 
that ensued with a dramatic devaluation of the peso beginning 
in December 1994. The Committee recognizes that the condition 
of Mexico's economy has an impact on trade with the United 
States, illegal immigration, the level of resources dedicated 
to anti-drug cooperation, U.S. jobs, and conditions in U.S. 
border communities. The Committee also believes that the 
Congress must continue to play an active role in monitoring 
compliance with the conditions of the February 21, 1995, 
agreements under which U.S. economic assistance is being 
provided to Mexico.
    The Committee recognizes that, although bilateral anti-drug 
cooperation is unprecedented in its scope and intensity, there 
is no substitute for bringing drug ``kingpins'' to justice and 
purging official corruption. The Committee acknowledges strides 
made in 1994 toward establishing free and fair electoral 
processes in Mexico and attaches great significance to the 
conduct of upcoming state and local elections in measuring the 
central government's commitment to representative democracy. 
The Committee also applauds efforts by the Mexican government 
to find a peaceful settlement to the armed conflict in the 
state of Chiapas. The Committee will continue to take into 
account the government's efforts to protect the human rights of 
all persons in the affected region.
            F. Peru
    The Committee notes that Peru appears to have returned to a 
fully democratic track: four national elections, culminating in 
a landslide victory for President Alberto Fujimori (including 
outright control of the 120-member congress), have restored 
constitutional order that was breached by the autogolpe (self-
coup) of April 1992.
    According to the State Department's 1994 International 
Narcotics Control Strategy Report, the Government of Peru took 
concrete anti-drug measures, although it continued to oppose 
eradication of mature coca plants without increased alternative 
development aid from foreign donors. The Committee notes that 
the Peruvian government in September, 1994, approved a national 
plan for drug prevention and control, which includes a goal for 
reducing coca cultivation by 50 percent. The Committee welcomes 
the decision of AID and the State Department to cooperate with 
the Peruvian government to initiate an alternative development 
project--with $30 million in unfrozen U.S. assistance--aimed at 
making significant reductions in coca production by 
facilitating legitimate economic activity.
    The Committee asserts that the primary interest of the 
United States in Peru today is reducing coca production and 
expanding anti-drug cooperation. Our government should seek to 
build constructive relations with a Government that has both 
the will and ability to be an effective partner in that fight.
            G. Peru-Ecuador Conflict
    The Committee urges the Governments of Peru and Ecuador to 
continue to observe the mutual cease-fire and comply with 
commitments under the 1942 Protocol of Rio in order to bring a 
definitive and permanent end to a border conflict that recurred 
in January 1994. The Committee notes that the appalling loss of 
life and economic costs on both sides, as well as the setback 
to the progress of regional cooperation, compel both sides to 
reach a peaceful settlement without delay. The Committee 
applauds the earnest work of the United States government as a 
guarantor of the Rio Protocol.

Section 3226. Effectiveness of United States Development Assistance

    Section 3226 amends chapter 1 of part 1 of the Foreign 
Assistance Act of 1961, as amended, to require the President to 
report to the Congress every three years on the effectiveness 
of U.S. development assistance. The first report shall not be 
transmitted later than December 31, 1996. The report shall 
analyze, on a country-by-country basis, the impact and 
effectiveness of U.S. development assistance, including the 
specific objectives of the assistance, whether the assistance 
was successful, and if not, an explanation of why not. 
Additionally, the report will specify the amount and nature of 
assistance from other donors and discuss the commitment of the 
host government to development. Finally, the report shall list 
the five countries in which U.S. assistance has been the most 
successful and the five least successful.

Section 3227. Funding for Private Voluntary Organizations and 
        Cooperatives

    Section 3227 would protect funding for private and 
voluntary organizations and cooperatives (PVOs) at an aggregate 
level of the funding provided in FY94. The work of these 
organizations is one of the most effective parts of the U.S. 
foreign aid budget. This section would protect these 
organizations and their important work despite the budget 
reductions in the bill.
    Section 3225 of this bill recognizes and promotes the 
important role of America's private and voluntary organizations 
and cooperatives, which have proven to be an efficient and 
cost-effective means of implementing development and 
humanitarian assistance programs overseas. In an era of 
shrinking resources, the Committee believes that priority 
should be placed on supporting the U.S. Government's 
partnership with U.S. PVOs and cooperatives. These 
organizations promote people-to-people assistance, which has 
sustainable and lasting impact in benefitting the lives of the 
poor. The Committee notes that these organizations leverage 
public funds with private resources.
    It is the intent of the Committee that the Administration, 
in carrying out this section as well as section 123(g) of the 
Foreign Assistance Act, should continue to follow the existing 
procedures and requirements as applied by AID regarding PVOs, 
specifically: the definition of PVOs, the process of 
registration with the U.S. Government, the definition of 
privateness and the criteria for funding eligibility.
Section 3228. Sense of Congress Relating to United States Cooperatives 
        and Credit Unions

    Section 3228 contains sense of the Congress language 
highlighting the importance of Cooperatives and Credit Unions 
in development work. Cooperatives enable people to achieve 
dignity and lasting economic independence through member-owned, 
democratic businesses. In the U.S., they have lifted farmers 
and low income people out of poverty and spread the benefits of 
capitalism through credit unions and community-based 
businesses.
    Cooperatives are a nongovernmental and business approach to 
solving problems. They bootstrap people into the marketplace 
and introduce democratic business practices in former Communist 
countries. By sharing business expertise how, these overseas 
programs directly benefit Americans by building long-term 
business partners, increased international sales and 
investments by U.S. businesses.
    The programs do not provide any direct cash payments. The 
cost to U.S. taxpayers is modest for technical and managerial 
expertise only. These programs, which require little federal 
bureaucracy, strengthen the competitive position of U.S 
companies and cooperatives. Without some assistance, U.S. firms 
would not be able to develop markets where investment and trade 
opportunities are opening up, and Western competitors are being 
subsidized by their governments to help capture these new 
markets.
    In sum, U.S. cooperatives provide private sector assistance 
that links American communities and cooperative businesses with 
overseas partners that, in turn, serve U.S. economic interests.

                    Subchapter B--Operating Expenses

Section 3231. Operating Expenses Generally

    Section 3231 provides $465,774,000 for FY96 and 
$419,196,000 for FY97 to administer the FAA. Upon transfer, 
these funds will be transferred from AID to the State 
Department.
    These amounts represent a reduction from the current 
funding of $517 million for AID's Operating Expenses. The bill 
would cut this account below the FY95 level by $52 million in 
FY96 and $98 million in FY97.

Section 3232. Operating Expenses of the Office of the Inspector General

    Section 3232 authorizes $35,206,000 for FY96 and 
$31,685,000 for FY97 for AID's IG. Upon transfer, these funds 
will be transferred from AID to the State Department.

                       Chapter 4--Public Law--480

Section 3241. Authorization of Appropriations for Title II
    Section 3241 reauthorizes minimum levels of assistance for 
Title II food assistance programs under Section 204(a) of the 
Agricultural Trade Development and Assistance Act of 1954 (P.L. 
480). The Committee freezes the minimum overall assistance 
levels for FY96 and FY97 for the Title II program at 2,025,000 
metric tons. This is the same level authorized for FY95. 
Similarly, the Committee freezes the sub-minimum non-emergency 
assistance level for FY96 and FY97 for the Title II program at 
1,550,000 metric tons. This is also the same level authorized 
for FY95. The Committee understands that funding for this 
activity will total $863,951,000 in FY96 and FY97.
    The Committee notes that overall funding for the P.L. 480 
program was cut 24% between fiscal years 1993 through 1995. The 
Committee also notes that Congress, in implementing the Uruguay 
Round Trade Agreement legislation, pledged to ``increase its 
contribution of bona fide food assistance to developing 
countries consistent with the Agreement on Agriculture.'' 
[Section 411(e) of the Uruguay Round implementing legislation.]
    In March, the Department of State indicated to member 
countries of the Food Aid Convention that it would decrease its 
minimum commitment of food aid from 4.47 million metric tons to 
2.5 million metric tons. Over the past decade, the United 
States has provided between 6.5 and 8 million metric tons.

Section 3242. Authorization of Appropriations for Title III

    Section 3242 would effectively end the P.L. 480 Title III 
government-to-government food aid program. Last year, the U.S. 
spent $157 million on this program. This year, the 
Administration only requested $50 million for this program. It 
is widely acknowledged that the program is relatively 
ineffective and duplicated initiatives funded under development 
assistance accounts. In a time of severe budgetary constraints, 
the Committee chose to fund Title II, which saves lives, rather 
that Title III which saves bureaucracies.

                  Chapter 5--Housing Guarantee Program

Section 3251. Authorization of Appropriations

    Section 3251 provides close-down funding for the Housing 
Investment Guarantee (HIG) program in accordance with GAO's 
recommendation. Loan losses and management problems have 
plagued this program. This section authorizes $7 million in 
FY96 and $6 million in FY97 to administer the existing 
portfolio of loans.

Section 3252. Additional Requirements

    Section 3252 prohibits the issuance of any new guarantees 
under the HIG program after the date of enactment of this bill. 
Existing guarantees which have not been applied to loans are 
cancelled upon enactment of this bill. Guarantees of existing 
loans are not affected, nor are guarantees issued for loans in 
Israel, which have been provided under separate statutory 
authority.
    No assistance may be provided under the Foreign Assistance 
Act of 1961 to any entity which is in arrears on a loan which 
is guaranteed under the Foreign Assistance Act, or which has 
caused a claim to be paid by the U.S. Government under a 
guarantee issued under the Act. Assistance is restored when the 
entity is no longer in arrears or when the entity reimburses 
the U.S. Government for its losses. The President may waive the 
suspension of assistance if maintaining assistance is in the 
national interest.
    The termination of the HIG is the bi-partisan 
recommendation of members of the Subcommittee on International 
Economic Policy and Trade, who have had long-standing concerns 
about this program. In 1993, the subcommittee requested a 
General Accounting Office investigation of reports that 
defaults on guarantees were significant, that the program did 
not serve its statutory purpose and that U.S. efforts to 
recover losses were ineffective. The subcommittee has received 
a draft report of the results of GAO's investigation, which 
confirms the subcommittee's concerns. GAO found that $542 
million in claims have been paid on the total $2.7 billion in 
guarantees issued thus far and that an additional $600 million 
is likely to be paid in future claims on these existing 
guarantees.
    GAO investigators located an AID-funded outside audit which 
projects even greater losses than GAO estimated. Moreover, GAO 
asserts that the program does not fulfill the program's 
statutory purpose of expanding the local financing of housing 
and related infrastructure. GAO also determined that U.S. 
Government efforts are ineffective in seeking repayment of the 
debts which are owed to the U.S. by recipients of guarantees 
who have caused claims to be paid. Currently $409 million is 
owed to the U.S. by 23 recipients of guarantees. These debtors 
total more than half of all those who have received guarantees 
during the operation of this program. Some have received new 
guarantees from the United States while owing funds on previous 
guarantees.
    The provisions of this chapter reflect the recommendations 
of GAO and are strongly supported by members of the 
Subcommittee and full Committee. The time has come to terminate 
this program and improve the collection of losses on these 
guarantees.
    The Committee notes that it will seek to adjust the 
provision as reported to exempt the existing HIG program for 
the Republic of South Africa from the requirement that affects 
unused existing guarantees.
                         Chapter 6--Peace Corps

Section 3261. Peace Corps

    Section 3261 authorizes $219,000,000 for FY96 and 97. The 
Committee strongly supports the work of the Peace Corps and 
regrets it could not do more to fund its operations. Without 
Section 3262, this would represent a cut of $12 million from 
Peace Corps funding in FY95.

Section 3262. NIS Funds for Peace Corps

    Section 3262 provides that not more than $11 million may be 
transferred from the NIS account to preserve Peace Corps 
funding for FY96 and 97. It is the Committee's intention that 
AID make this transfer to cover the costs of Peace Corps' 
operations in the NIS and restrict the reductions under Section 
3261.

Section 3263. Prohibition on Use of Funds for Abortion

    Section 3263 enacts into the permanent statute the current 
appropriations restrictions on spending for abortion activities 
under Peace Corps authorities.

              Chapter 7--International Disaster Assistance

Section 3271. Authority to Provide Reconstruction Assistance

    Section 3271 broadens the authority to use disaster 
assistance funds for short-term rehabilitation and 
reconstruction. This was suggested by the Administration and 
would help expand relief activities beyond the immediate post-
disaster operation.

Section 3272. Authorization of Appropriations

    Section 3272 would authorize the President's full request 
for $200,000,000 for FY96 and 97. The represents and increase 
of $30 million from FY95. The Committee sees no higher 
humanitarian mission than the saving of lives following a man-
made or natural disaster.

                      Chapter 8--Other Provisions

Section 3281. Exemption from Restrictions on Assistance through 
        Nongovernmental Organizations

    Section 3281 enacts into the permanent statute current 
appropriations law that relaxes the restrictions contained in 
the Foreign Assistance Act and any other act for aid delivered 
through Non-Governmental Organizations (NGOs). This section 
also broadens this exemption to include the work of NGOs funded 
under the Freedom Support Act for their work in the NIS.

Section 3282. Funding Requirements Relating to United States Private 
        and Voluntary Organizations

    Section 3282 enacts into the permanent statute the current 
appropriations law requiring PVOs to raise at least 20 percent 
of their funds from private sources.

Section 3283. Documentation Requested of Private and Voluntary 
        Organizations

    Section 3283 enacts into the permanent statute the current 
appropriations law on the documentation required of PVOs.

Section 3284. Foreign Government Parking Fines

    Section 3284 enacts into the permanent statute the current 
appropriations law withholding aid to require payment of 
parking fines by foreign governments. This section also adds 
liabilities for tickets written by New York City.

Section 3285. Human Rights Reports

    Section 3285 would amend the Foreign Assistance Act to add 
reporting on the votes of each member of the United Nations 
Commission on Human Rights on ``all country-specific and 
thematic resolutions voted on at the Commission's annual 
session.''
    This section would also require reporting on the extent to 
which each country has extended protection to refugees, 
including the provision of first asylum and resettlement.
Section 3285. Deobligation of Certain Unexpended Economic Assistance 
        Funds

    Section 3285 requires the deobligation of certain 
categories of economic assistance funds which have remained 
unexpended for more than three years after being appropriated. 
Deobligated funds are returned to the Treasury. The President 
may exempt from deobligation any funds which are allocated to 
long-term construction projects or which are allocated to 
projects which have been delayed for unforeseen circumstances. 
The President must submit a report to Congress on any 
exemptions granted. The Inspector General of the agency 
administering foreign assistance must provide Congress with 
comments on exemptions granted.
    This section reflects recommendations made by the General 
Accounting Office to the Committee. After analyzing the 
expenditure of funds from prior years, GAO concluded that 
retaining funds for more than two fiscal years leads to 
significant instances of inappropriate expenditures. In this 
provision, the Committee grants an additional year for 
retention of prior-year funds, beyond what GAO recommendations.
    The accumulation of prior-year funds in AID accounts is 
significant. As of January 1, 1995, AID had $7.7 billion in 
unexpended funds from previous fiscal years. Some $2 billion of 
these funds date back to appropriations made for FY92 and 
earlier, going back to FY88. The Committee included this 
section in foreign assistance authorization bills in prior 
Congresses and continues to believe that significant savings 
can result from enacting this section.
    The Committee has not restricted the ability of AID or its 
successor to reprogram funds even late into the third year to 
be obligated against newer, more worthy projects. The Committee 
will insist that the full protections of section 634A of the 
Foreign Assistance Act govern such reprogrammings.

                   Title XXXIII--Regional Provisions

Section 3301. Prohibition on Assistance to Foreign Governments 
        Providing Assistance to Cuba

    Section 3301 adds a new section to the Foreign Assistance 
Act to prohibit aid (other than humanitarian and refugee aid) 
to countries providing ``economic assistance to or engaged in 
non-market based trade'' with Cuba. The President may waive the 
prohibition if he determines that continued aid is vital to the 
national security of the United States. The President will also 
have to report on other countries' aid programs to Cuba.
    Although the Soviet collapse has stripped Cuba's President 
Castro of his ability to wage war in Latin America or Africa, 
his war on the Cuban people goes on. For 35 years, Fidel Castro 
has been an aggressive enemy of U.S. interests: providing a 
platform for Soviet nuclear weapons targeted on U.S. shores, 
sustaining Latin American guerrilla movements, destabilizing 
Africa and serving as a military and intelligence outpost for 
the Soviet Union.
    Cuba's economic and political isolation of Cuba--the policy 
of eight U.S. Administrations--is having a greater effect now 
that the Soviet life-line has been cut off. The end of Soviet 
subsidies (which totalled $18.5 billion from 1970 to 1989) has 
wrecked Cuba's already stunted economy (e.g., GDP has declined 
by 40 percent since 1989).
    The Committee believes that any government that provides 
assistance or concessionary trade as defined in this section of 
the Act renders itself ineligible for any form of assistance 
under this Act. This prohibition is subject to two forms of 
waiver: a national interest certification by the President 
using procedures under section 634A of the Foreign Assistance 
Act, or a determination by the President that the requirements 
of section 1708 of Cuban Democracy Act of 1992 (specific steps 
toward democracy in Cuba) have been met.
    The Committee notes that, contrary to the assertion made at 
the May 15, 1995, mark-up of this legislation by a State 
Department representative, the definitions in this section of 
``non-market based trade'' are much more specific than the 
definitions in current law that the State Department professed 
to prefer. The Committee expects that the Administration will 
apply this section with vigor, not relying on the vague 
assertions made by Administration witnesses that this 
prohibition does not now affect any country that receives U.S. 
assistance. The Committee expects to be consulted carefully as 
the Administration makes its determinations on the coverage of 
this provision. The Committee hopes that this provision has the 
effect of deterring countries beginning or continuing to aid or 
engage in non-market based trade with Cuba.

Section 3302. Assistance for Nicaragua

    Section 3302 conditions aid to Nicaragua based on the 
Secretary of State certifying that seven conditions are met. 
Under subsection (c), several programs including human rights 
monitoring, election aid and democracy building programs would 
be exempted from these restrictions.
    The Committee recognizes the significant accomplishments 
achieved by the Nicaraguan people since the transition to a 
democratically-elected government of President Violeta Barrios 
de Chamorro on April 20, 1990. The climate of free expression 
and press has improved since the routine repression and 
censorship during the Sandinista regime. The National Assembly 
is operating vigorously. Political parties and civic groups are 
active; spirited public debate on political and economic 
policies has become routine. Although Sandinista unions and 
activists have resorted to violent protest against government 
policies, expression is generally peaceful.
    Nicaragua's economy is showing superficial signs of 
recovery: In 1994, after a decade of drastic economic 
contraction, nearly 3 percent growth was recorded; fueled by 
recovering prices for traditional crops, increased export 
earnings are expected to buoy the growth rate further. 
Inflation, which was astronomical in the late 1980's, was at 
7.7 percent in 1994.
    The Committee notes however, that these dramatic gains are 
threatened by a serious constitutional crisis and persistent 
violations of human rights carried out with absolute impunity 
by Nicaragua's army and police, to wit:
          Since late 1994, a diverse coalition in the National 
        Assembly drafted and approved, by overwhelming margins, 
        over 60 key reforms to the 1987 Sandinista 
        constitution. The executive branch has delayed the 
        promulgation of these reforms (including enhancement of 
        individual rights, protection of private property, 
        accountability of the presidency and reform of the 
        electoral process), which were advocated by President 
        Chamorro in her 1990 campaign. The Committee is 
        concerned that a prolonged institutional crisis, which 
        compromises badly needed constitutional reforms reached 
        by broad-based consensus in the National Assembly, 
        threatens the hard-won legacy of the last five years.
          Between April 1990 and February 1995, the 
        International Commission for Support and Verification 
        of the Organization of American States (CIAV-OEA) 
        recorded 1,561 human rights violations, including 298 
        murders, committed against former members of the 
        Nicaraguan Resistance and their families. Nearly 75 
        percent of the total abuses and over 50 percent of the 
        murders were considered to be political crimes. 
        Nicaragua's security forces were responsible for 55 
        percent of all of the reported abuses and 30 percent of 
        the homicides.
    Dozens of soldiers and policemen accused of committing or 
conspiring to conceal gross human rights violations have never 
been brought to justice, despite having been implicated by key 
authorities of the civilian government itself based on an 
exhaustive investigation by the international Tripartite 
Commission. An admitted assassin, ex-army officer Frank Ibarra, 
has never been prosecuted for his politically-motivated crimes. 
The military has never cooperated fully in investigating the 
October 1990 killing of 15-year-old Jean Paul Genie--a case in 
which retired General Humberto Ortega himself is implicated--or 
the February 1991 assassination of former Nicaraguan Resistance 
leader Enrique Bermudez.
    The Committee notes that all of these particular abuses 
have occurred since the transition to the current government. 
As recently as January 6, 1995 an apparent massacre of 13 
civilians by the army occurred at La Maranosa, in northern 
Nicaragua. The Human Rights Committee of the National Assembly, 
three Nicaraguan human rights groups, and CIAV-OEA have each 
interviewed numerous witnesses and reached the same conclusion: 
that the army's explanation of this incident is not credible. 
Independent investigators found physical evidence suggesting 
that the truck was ambushed and received testimony that the 
victims were unarmed.
    The Committee concludes that the lack of justice in the 
vast majority of these cases--and in virtually every case 
involving the security forces--manifests an absence of 
political will, which stands in sharp contrast with (and, 
indeed, undermines) the progress recorded in other issues. The 
Committee will also continue to monitor whether the rule of law 
is respected in resolving the constitutional impasse in a 
timely fashion.
    Section 3302 restricts aid to the Government of Nicaragua 
in FY 96 and 97 (as well as unobligated balances from prior 
years) until the Secretary of State determines that the 
Nicaraguan Government has investigated and prosecuted cases of 
terrorism and made substantial progress in adjudicating human 
rights cases and resolving outstanding property confiscation 
claims. Several human rights activities, democracy-building 
programs, and support for free and fair elections (including 
technical assistance to Nicaragua's Supreme Electoral Council, 
if necessary) are explicitly excepted from this funding 
restriction.

Section 3303. Sense of Congress Regarding Relations With Burma

    Section 3303 expresses the Committee's concerns with U.S. 
policy towards Burma.

Section 3304. Debt Restructuring for Egypt

    Section 3304 calls for a report to Congress by January 31, 
1996 by the Secretary of State and the Secretary of the 
Treasury on options to restructure and buy down Egypt's debt 
through the use of Economic Support Fund resources. In the 
development of such options, the Secretaries shall consult with 
the Secretary of Commerce for the purpose of determining the 
impact of such options on the level of U.S. exports to Egypt.
    Egypt's remaining debt to the United States totals more 
than $6 billion, and Egypt has been paying the United States 
several hundred million dollars per year while receiving $815 
million per year in ESF funds from the United States.
    The purpose of this report is to provide guidance on how to 
reduce Egypt's debt burden to the United States at a time when 
maintaining current assistance levels are increasingly 
difficult.
    The Committee remains strongly supportive of the Camp David 
peace process and the assistance provided to the Middle East 
which is designed to reinforce the peace process.
    The purpose of such a report is to give guidance to 
Congress on a ``soft landing'' for Egypt if and when cuts in 
assistance do occur. The options this provision seeks to 
develop are intended to help confront budget realities in a way 
that strengthens the peace process and does not undermine it.

Section 3305. Prohibition on Assistance to Foreign Governments 
        Providing Assistance to Iran

    Section 3305(a) notes that Iran is engaged in an intensive 
effort to develop nuclear weapons, that possession of nuclear 
weapons by Iran would represent a serious threat to the 
security of the Middle East region, and that the United States 
places the highest priority on denying to Iran the capability 
of producing nuclear weapons.
    Section 3305(b) expresses the sense of Congress that the 
U.S. should oppose the accession of any country to NATO which 
sells nuclear or dual-use technology, military weapons or 
military equipment of any kind, or any item on any list covered 
by the Missile Technology Control Regime to Iran or any other 
country supporting terrorism pursuant to Section 6(j) of the 
Export Administration Act.
    Section 3305(c) would prohibit any U.S. assistance from the 
U.S. Government to any country which sells nuclear or dual use 
technology or military weapons or military equipment of any 
kind, or any item on any list covered by the MTCR to Iran or 
any other country supporting terrorism pursuant to Section 6(j) 
of the Export Administration Act.

Section 3306. Assistance for Pakistan
    Section 3306 partially relaxes the ban on assistance and 
arms transfers to Pakistan as currently required by the terms 
of Section 620E(e) of the Foreign Assistance Act (the Pressler 
amendment), while retaining the elements of the sanctions--
military assistance and arms transfers--that impose the most 
serious penalty for Pakistan's nuclear weapons activities. The 
underlying principle governing the Committee's action is that 
non-military aid that directly benefits the people of 
Pakistan--such as development assistance to nongovernmental 
organizations and microenterprises-- should not be denied, and 
that other programs, which benefit U.S. interests as much or 
more than they aid Pakistan, should be allowed. These latter 
include Overseas Private Investment Corporation (OPIC) 
insurance programs and narcotics control assistance. 
International Military Education and Training (IMET) would be 
allowed in view of Pakistan's prominence in international 
peacekeeping activities and in the broader interest of 
maintaining professional relationships between the American and 
Pakistani military establishments. For FY97, this authority is 
contingent on a Presidential certification that Pakistan is 
fully cooperating with U.S. narcotics assistance programs and 
policies.
    The Committee also has acted to relax sanctions regarding 
other programs that directly affect the health, welfare and 
safety of American citizens, such as antiterrorism assistance; 
assistance and training in support of aviation safety and 
security; immigration and customs procedures; international 
peacekeeping and multilateral operations; and programs in 
addition to OPIC that promote U.S. trade and investment.

Section 3307. Return of Military Equipment of Pakistan

    Section 3307 includes language that addresses some 
troublesome bilateral complications arising out of the Pressler 
Amendment sanctions. Pakistan has paid several hundred million 
dollars for military aircraft that cannot be delivered under 
the terms of the Pressler amendment. Under current law, the 
funds or aircraft cannot be delivered to Pakistan and the 
manufacturer cannot provide a refund (since the planes have 
been completed).
    The section expresses the sense of the Congress that the 
United States should make a determined effort to find a third 
party buyer for the aircraft and reimburse Pakistan with any 
proceeds thereby derived, up to the amount paid by Pakistan. 
This is consistent with the stated intent of the 
Administration, but removes any doubt about the propriety of 
such action. The amendment imposes no obligation either to 
reimburse Pakistan out of U.S. Government funds or to make up 
any difference between the selling price and the amount of 
progress payments paid by Pakistan.
    Subsection 3307(3) seeks to clear up another unforeseen 
complication arising out of the cutoff of aid and arms 
transfers by allowing the return to Pakistan of military 
equipment or spare parts that had been exported to the United 
States for upgrading or repair. Under the amendment, the return 
of a part in an unrepaired state or a weapons system without 
the upgrade for which it was sent to the United States would 
not be deemed as assistance or a ``transfer'' under the terms 
of Sec. 620E(e).

Section 3308. Eligibility of Panama Under Arms Export Control Act

    Section 3308 authorizes Panama for assistance under the 
Arms Export Control Act to purchase defense articles and 
defense services. Under current law, Panama is not eligible to 
purchase defense articles and services through Foreign Military 
Sales since it no longer has a military. Cash FMS sales however 
would facilitate U.S. assistance in developing civilian-led law 
enforcement institutions, specifically, the national police, 
and maritime and air services. Currently, Panamanian law 
enforcement patrols and counternarcotics activities are 
hindered by a lack of spare parts and components.

Section 3309. The Future of the United States Military in Panama

    Section 3309 expresses the sense of the Congress that the 
President should negotiate a new base rights agreement with the 
Government of Panama to allow the stationing of U.S. armed 
forces in that country beyond December 31, 1999, and to ensure 
that the United States will be able to act appropriately, 
consistent with the Canal treaties, to help ensure that the 
Panama Canal shall remain open, neutral, secure, and 
accessible. The Committee acknowledges explicitly that these 
objectives can and should be met consistent with the treaties 
and with full respect for the sovereignty of the Government of 
Panama.
    The Committee recognizes that inter-American security 
priorities include helping preserve democratic stability in the 
Hemisphere, nurturing constructive relations based on mutual 
respect, expanding commerce and investment and combatting the 
criminal drug trade. Although only 14 percent of U.S. seaborne 
trade goes through the Panama Canal, its strategic location 
makes it important to each of these regional security 
objectives. Conscientious and complete implementation of the 
1977 Canal treaties will impact significantly on U.S. relations 
with other governments in the region.
    Under the Treaty Concerning the Permanent Neutrality and 
Operation of the Panama Canal, all U.S. forces would be 
withdrawn from Panama no later than December 31, 1999. However, 
the United States and Panama agreed that the two countries 
could decide to negotiate the stationing of U.S. military 
forces or the maintenance of defense sites deemed necessary to 
maintain the Canal's neutrality after 1999.
    The Committee believes that a U.S. military force in Panama 
is critical to projecting our interests in the Western 
Hemisphere. In light of the historic presence in Panama, the 
practical advantages of that site to ongoing cooperation 
against narcotics production and trafficking, as well as the 
shared responsibility under the Canal treaties to defend the 
neutrality of the Canal, the Committee believes the 
Administration should move expeditiously to negotiate a new 
base rights agreement with the Government of Panama.
Section 3310. Peace and Stability in the South China Sea

    Section 3310 contains policy language on the dispute over 
the Spratly Islands. The South China Sea is a critically 
important waterway through which twenty-five percent of the 
world's ocean freight and seventy percent of Japan's energy 
supplies transit. It also serves as a crucial sea lane for the 
United States Navy. Without the right of free passage through 
the South China Sea in time of emergency, the United States and 
allied forces would have to add weeks of additional steaming 
time to move ships between the Pacific and the Persian Gulf, 
for example.
    Until the 1970's, the countries bordering the South China 
Sea essentially were content to assert their territorial claims 
without any serious effort to enforce them. In January 1975, 
however, Chinese military forces evicted the then-Republic of 
Vietnam from its claimed locations and began a slow-campaign of 
deception and aggression to assert Chinese claims over other 
parts of the South China Sea. During the 1980's Chinese and 
Socialist Republic of Vietnam forces fought several battles 
over control of various islands and reefs in the South China 
Sea. In all cases, Chinese forces were the aggressors.
    In February 1992, the Chinese National People's Congress 
passed a law claiming the South China Sea as ``territorial 
waters'' of the People's Republic of China and asserting the 
right ``to expel intruders''. China now has overlapping 
territorial claims in the East and South China Seas with Japan, 
the Republic of China on Taiwan, the Philippines, Brunei, the 
Socialist Republic of Vietnam, Malaysia and Indonesia. In a 
startling new development, Chinese Premier Li Peng has begun to 
assert sovereignty over the airspace above the South China Sea 
as well as territorial and water navigation rights upon it.
    Essentially in response to Chinese aggression against the 
Socialist Republic of Vietnam, the countries of the Association 
of South East Asian Nations (ASEAN) have been attempting to 
mediate and promote a harmonious solution to the competing 
claims. In 1992, ASEAN and Vietnam declared in Manila that all 
claimants to territory in the South China Sea should resolve 
questions of boundaries through peaceful negotiations. China 
adhered to the 1992 Manila Declaration and Indonesia has 
sponsored a series of regional workshops designed to promote a 
practical solution. But, even with the best of intentions, the 
workshops were not successful.
    At the beginning of 1995, China raised the tension levels 
in the region markedly by secretly fortifying a number of reefs 
claimed by the Philippines. One of these Chinese military 
installations is well within the Philippines Economic Zone (as 
defined by the Law of the Sea Treaty). When a citizen of the 
Philippines detected Chinese forces on Philippines territory, 
he was kidnapped by the Chinese military and told not to report 
his discovery to Philippine authorities.
    Section 3310 rests on the proposition that armed aggression 
by any of the claimants in the South China Sea against any 
other is a serious matter. However, the significance rises 
profoundly when the aggressor, in this case China, is a large, 
military strong non-democratic state and the victim of 
aggression, in this case the Philippines, is a democratic 
country with a substantially lower level of defense forces. 
Traditionally, the United States has treated acts of aggression 
by a non-democratic state against a democratic state to be a 
matter of grave concern.
    This section declares that the right of free passage 
through the South China Sea is vital to the national security 
interests of the United States, its friends, and allies. It 
further declares that any attempt by a non-democratic power to 
assert, through the use of force or intimidation, its claims to 
territory in the South China Sea to be a matter of grave 
concern to the United States.
    The best solution to the current problem would be for the 
People's Republic of China to adhere faithfully to the 1992 
Manila Declaration, and this section calls upon the government 
of the PRC to do so. However, in the fact of Chinese 
intransigence, the democratic powers must look at the situation 
in a realistic manner.
    The Committee strongly believes that the time has come for 
the United States to review the defense needs of all the 
democratic claimants to territories in the South China Sea. The 
Philippines, for example, has an urgent need for naval and Air 
Force upgrades. Most of its naval and air assets are limited by 
a lack of spare parts and are decades out of date. This section 
urges the President to begin such a review.

Section 3311. Sense of the Congress Regarding Narcotics Control Efforts 
        of Colombia

    Section 3311 reflects the priority the Committee attaches 
to counter-narcotic efforts, expressing the sense of the 
Congress that the Secretary of State should make the issue of 
illicit narcotics the highest foreign policy priority with key 
transit and production nations such as Colombia. This section 
lays out specific, attainable objectives that the Government of 
Colombia should be encouraged to complete, including: the 
arrest and prosecution of cartel leaders, tough sentences of 
drug traffickers, passage of money-laundering legislation and 
eradication of illicit crops. It is the Committee's intention 
that the President consider progress in these specific areas 
when making his certification with respect to Colombia under 
section 490(b)(1)(A) of the Foreign Assistance Act (regarding 
major narcotics producing and transit countries).

Section 3312. Notification of Arms Sales to Saudi Arabia

    Section 3312 requires that the Congress be notified of all 
proposed government-to-government arms transfers to Saudi 
Arabia unless the Secretary of State certifies and report to 
the Congress that specific commercial dispute cases between 
U.S. firms and the Government of Saudi Arabia have been 
resolved satisfactorily. More specifically, this section 
changes the dollar thresholds for reporting arms sales to the 
Congress under section 36(b) of the Arms Export Control Act as 
follows: from $14 million to $0 for major defense equipment; 
from $50 million to $0 for defense articles and services; and 
from $200 million to $0 for design and construction services. 
It is important to note that by reducing these reporting 
thresholds to zero, this section does not restrict sales to 
Saudi Arabia but rather requires the Executive branch to notify 
all proposed government-to-government arms sales to Saudi 
Arabia until the Saudi Government settles outstanding claims 
with U.S. firms. The Committee believes this amendment is 
necessary to help U.S. firms which have completed extensive 
work for the Saudi Government but have had no success in 
getting their due compensation. For example, Gibbs and Hill, 
Inc. of New Jersey has outstanding claims for $43.3 million for 
work on a power plant completed in 1984.

Section 3313. Assistance for Zaire

    Section 3313(a) prohibits ESF, IMET and FMF assistance for 
Zaire for FY 96 and 97. Section 3313(b) prohibits the transfer 
of development (DFA and DA) assistance to the government of 
Zaire for fiscal years 1996 and 1997.
    The Committee strongly condemns President Mobutu Sese 
Seko's continuing suppression of democracy and human rights. In 
addition, the Committee fully supports the Presidential 
determination that suspends the issuance of visas to Zairians 
who impede the transition to democracy.
    This section contains, on a freestanding basis, current 
appropriations law preventing transfers of assistance to the 
Government of Zaire.

         Title XXXIV--Special Authorities and Other Provisions

                     Chapter 1--Special Authorities

Section 3401. Enhanced Transfer Authority

    Section 3401 rewrites section 610 of the Foreign Assistance 
Act to increase the amount allowed to be transferred from 
accounts under the Foreign Assistance Act and Arms Export and 
Control Act from 10 to 20 percent. Limits on the amount 
transferred to accounts would be maintained. It would also 
correct a typographical error in the Foreign Assistance Act to 
allow transfers to military assistance. Transfers under 610 
would now require notifications under section 634A of this Act.

Section 3402. Authority to Meet Unanticipated Contingencies

    Section 3402 rewrites section 451 of the Foreign Assistance 
Act to increase the amount allowed for contingencies (from $25 
million to $40 million). It would now require notifications 
under section 634A of the Foreign Assistance Act but would 
allow a waiver of the notification requirement if there was a 
``substantial risk to human health or welfare.''

Section 3403. Special Waiver Authority

    Section 3403 rewrites section 614 of the Foreign Assistance 
Act to allow assistance under a unified standard of ``vital to 
the national interest'' rather than the two standards used now 
for economic (``important to the security of the United 
States'') and military (``vital to the security of the United 
States'').

Section 3404. Termination of Assistance

    Section 3404 rewrites section 617 of the Foreign Assistance 
Act to update authorities (by removing the outdated references 
to concurrent resolutions) to spend funds and provide the 
option to assume obligations of terminated programs.
                      Chapter 2--Other Provisions

Section 3411. Congressional Presentation Documents

    Section 3411 rewrites section 634 of the Foreign Assistance 
Act to update the language of reports no longer provided to the 
Committee. The section would now govern the annual 
Congressional Presentation Document (``CPD'') report and 
require the Secretary to estimate when countries receiving 
development assistance will graduate.

Section 3412. Prohibition on Assistance to Foreign Governments Engaged 
        in Espionage Against the United States

    Section 3412 prohibits all but humanitarian and refugee 
assistance to any foreign government that the President 
determines conducted espionage ``harmful to the national 
security.'' This section also directs the President to transmit 
unclassified and classified annual reports listing the foreign 
government the President determines are conducting intelligence 
activities within the United States harmful to the national 
security of the United States.

Section 3413. Debt Restructuring for Foreign Assistance

    Section 3413 adds an amendment requested by the Treasury 
Department to the Foreign Assistance Act to authorize and 
regulate reduction of official debt incurred under the Foreign 
Assistance Act or the Arms Export Control Act for especially 
poor countries. A similar provision is carried in the FY '95 
Foreign Operations Appropriations Act.
    The proposal allows the Congress the gain control of this 
program and put it on a regular authorization footing. Debt 
reduction is aimed at clearing the books and helping eligible 
debtor countries that continue with their economic reform 
programs to return to viability and met their remaining debt 
service obligations.
    The G-7 decided at the 1994 Naples summit to move to more 
substantial debt reduction for most of the most heavily-
indebted, poorest counties. Because of the low credit-
worthiness of the countries and under the credit reform 
provisions of the Budget Reform Act, the cost of debt relief is 
quite modest in comparison to the debt owed. Leverage ratios of 
about 19 to 1 can be obtained, according to the Treasury 
Department.
    Relief can only be afforded to countries meeting economic, 
anti-terrorism, human rights, excess military spending, and 
similar criteria.

Section 3414. Debt Buybacks or Sales for Debt Swaps

    Section 3414 contains language requested by the Treasury 
Department to engage in debt buybacks and swaps to support 
environmental and child survival activities in Latin America. 
This proposal will allow highly indebted countries in the 
Hemisphere to reduce their bilateral debt burden with the 
United States through direct buy backs or through debt swaps 
with non-governmental organizations.
    In its FY 96 budget, the Administration proposed $15 
million to offset the costs of debt buy backs and other debt 
reduction programs for Latin America and the Caribbean. This 
proposal will allow highly indebted countries in the Hemisphere 
to reduce their bilateral debt burden with the United States 
through direct buy backs or through swaps with non-governmental 
organizations. This proposal mirrors an approach adopted for 
the Enterprise for the American Initiative (EAI), which this 
committee supported and which successfully reduced debt burdens 
while stimulating development objectives in several countries 
throughout Latin America and the Caribbean.
    Through the EAI debt reduction project, the United States 
reduced approximately $875 million of bilateral foreign 
assistance and/or foreign aid debt of seven Latin American and 
Caribbean countries. These agreements have generated roughly 
$154 million in local currency trust funds, which have been 
used to support environmental and child survival projects. 
Moreover, by easing debt pressures on foreign exchange 
reserves, such debt relief directly promotes U.S. export 
markets in Latin America and the Caribbean.
    Due to budgetary constraint, the Committee was able to 
approve only $3 million in funding for FY 96 and FY 97.
Section 3415. Impact on Jobs in the United States

    Section 3415 contains the language of current 
appropriations law restricting the use of aid funds to assist 
U.S. business enterprises to move from the United States or to 
support zones, such as foreign free trade zones, failing to 
meet certain minimum labor standards.

Section 3416. Prohibition on Assistance to Foreign Governments that 
        Export Lethal Military Equipment to Countries Supporting 
        International Terrorism

    Section 3416 contains language that carries current 
appropriations law conditioning aid to countries that export 
lethal equipment to terrorist countries. The President may 
waive the requirements of this section if he determines that 
the provision of assistance is important to the national 
security of the United States. If the President uses this 
waiver authority, he must prepare and transmit a report on the 
assistance to be provided.

Section 3417. Prohibition on Assistance to Countries that Consistently 
        Oppose the United States Position in the United Nations General 
        Assembly

    Section 3417 would prohibit the U.S. from providing 
security assistance to a country that supports the United 
States position on U.N. General Assembly votes less than 25 
percent of the time. The provision would not require a 
termination of development assistance to any country. 
Specifically, the provision of development assistance to India 
would not be affected. The Secretary of State may waive this 
requirement based on a determination and a report to Congress 
stating that the provision of assistance is necessary to 
promote U.S. foreign policy objectives. This section will be 
effective upon the submission to Congress on March 31, 1996 of 
a report detailing the voting practices of all U.N. General 
Assembly members in 1995.

Section 3418. Limitation on Assistance to Countries that Restrict the 
        Transport or Delivery of United States Humanitarian Assistance

    Section 3418 prohibits assistance to any country that 
impedes or prohibits the transport or delivery of U.S. 
humanitarian assistance. The ban on U.S. aid to countries 
impeding delivery of U.S. humanitarian aid to third countries 
would be waived if the President issued Congress a waiver 
stating that continued aid would be in the U.S. national 
security interest.
    In countries where U.S. law requires that humanitarian 
assistance is delivered through non-governmental organizations, 
NGOs may use governmental facilities, equipment and personnel 
to distribute commodities, as long as the NGO retains control 
of the commodities and services.

Section 3419. Prohibition on Assistance to Foreign Governments, Private 
        Voluntary Organizations, and Other Entities that Inhibit United 
        States-Supported Demining Operations and Activities

    Section 3419 prohibits assistance to foreign governments, 
private and voluntary organizations, and other entities that 
inhibit United States-supported demining operations and 
activities.
    Land mines create serious obstacles to success in the 
transition from war to peace in many countries where a peace 
process is underway. Therefore, the Committee supports 
continued funding for demining operations through the FMF 
account.
    The U.S. supports demining activities both financially and 
as part of our wider diplomatic efforts to bring about normalcy 
in war-torn societies. The Congress expects full cooperation of 
all parties to a conflict when international efforts are made 
to remove live land mines. We are also aware that some of these 
land mine clearing activities encounter bureaucratic obstacles 
which can throttle demining efforts. Therefore, the Committee 
adopted this section to cut off aid to any government, private 
voluntary organization or any entity which inhibits U.S. 
supported demining operations. This includes both financial and 
diplomatic support for such efforts.

                           Chapter 3--Repeals

Section 3421. Repeal of Obsolete Provisions

    This section contains a list of administration-approved, 
bipartisan-backed repeals of outdated statutes previously 
proposed for repeal.

                       Title XXXV--Effective Date

Section 3501. Effective Date

    Unless otherwise provided, this Division will become 
effective on October 1, 1995 or the date of enactment, 
whichever is later.
                      Committee Oversight Findings

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives, the Committee reports 
that the findings and recommendations of the Committee, based 
on oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report. Among the principal 
oversight activities which contributed to the Committee's 
formulation of H.R. 1561 were:
          Extensive hearings and review of the Executive 
        branch's request for programs authorized by this 
        legislation by the full Committee and by the 
        Subcommittees on International Economic Policy and 
        Trade; on International Operations and Human Rights; on 
        the Western Hemisphere; on Africa; and on Asia and the 
        Pacific; and
          Ongoing consultations between Committee Members and 
        staff and Executive branch officials.
    As a result of these oversight activities, the Committee 
recommends that the House approve H.R. 1561 as reported.

         Committee on Government Reform and Oversight Findings

    No findings or recommendations of the Committee on 
Government Reform and Oversight were received as referred to in 
clause 2(l)(3)(D) of rule XI of the Rules of the House of 
Representatives.

               New Budget Authority and Tax Expenditures

    The Committee adopts the cost estimate of the Congressional 
Budget Office, set out below, as its submission of any required 
information on new budget authority, new spending authority, 
new credit authority, or an increase or decrease in the 
national debt required by clause 2(l)(3)(B) of rule XI of the 
House of Representatives.

                     Inflationary Impact Statement

    In compliance with clause 2(l)(4) of rule XI of the Rules 
of the House of Representatives, the Committee estimates that 
H.R. 1561 will have no significant inflationary impact on 
prices and costs in the operation of the national economy.

               Congressional Budget Office Cost Estimate

    In compliance with clause 2(l)(3)(C) of rule XI of the 
Rules of the House of Representatives, the Committee sets forth 
with respect to H.R. 1561 the following estimate and comparison 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Budget Act of 1974:
                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 19, 1995.
Hon. Benjamin A. Gilman,
Chairman, Committee on International Relations, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1561, the American 
Overseas Interests Act of 1995, as ordered reported by the 
House Committee on International Relations on May 15, 1995.
    The bill would affect receipts and direct spending and thus 
would be subject to pay-as-you-go procedures under section 252 
of the Balanced Budget and Emergency Deficit Control Act.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                         Paul Van de Water,
                                             (For June E. O'Neill).
    Enclosure.

                      Congressional Budget Office

                             Cost Estimate

    May 19, 1995.
    1. Bill number: H.R. 1561.
    2. Bill title: American Overseas Interests Act of 1995.
    3. Bill status: As ordered reported by the House Committee 
on International Relations on May 15, 1995.
    4. Bill purpose: The bill would consolidate U.S. foreign 
affairs agencies by abolishing the Arms Control and Disarmament 
Agency, the United States Information Agency, and the U.S. 
Agency for International Development and transferring their 
functions to the Department of State. The bill would authorize 
appropriations in fiscal years 1996 and 1997 for State 
Department operations, contributions to international 
organizations, broadcasting and cultural exchange activities, 
economic and military assistance programs, and various other 
activities and agencies.
    5. Estimated cost to the Federal Government:

                                                                        
                [By fiscal year, in millions of dollars]                
------------------------------------------------------------------------
                      1996       1997       1998       1999       2000  
------------------------------------------------------------------------
                      DIRECT SPENDING AND RECEIPTS                      
Estimated                                                               
 receipts........      (\1\)      (\1\)      (\1\)      (\1\)      (\1\)
Estimated budget                                                        
 authority.......         40         40         40         40         40
Estimated outlays         15         15         38         37         37
                                                                        
                SPENDING SUBJECT TO APPROPRIATIONS ACTION               
                                                                        
Estimated                                                               
 authorization of                                                       
 appropriations..     15,597     15,065          2          2          2
Estimated direct                                                        
 loan obligations        549          1          0          0          0
Estimated                                                               
 guaranteed loan                                                        
 commitments.....         17         17          0          0          0
Estimated outlays     10,222     12,604      4,038      1,263       527 
------------------------------------------------------------------------
\1\ Less than $500,000.                                                 
                                                                        
The costs of the bill fall in budget function 150 (international        
  affairs) and budget function 300 (natural resources and environment). 

Basis of estimate

    The estimate assumes enactment of the bill by September 30, 
1995, and subsequent appropriation of the authorized amounts. 
CBO used historical spend-out rates for estimating outlays 
except for certain development assistance programs where 
provisions of the bill are estimated to change those rates.

                      direct spending and receipts

    In addition to authorizing appropriations, the bill 
contains several provisions affecting direct spending and 
receipts.
    Fees for Brokering Activities. Section 3193 requires that 
persons engaged in brokering activities with respect to the 
manufacture, export, import, or transfer of defense articles or 
services register and pay a fee for a license to conduct those 
activities. The license fees are estimated to increase revenues 
by less than $500,000 a year.
    Fees for Machine Readable Visas. Section 2231 would 
authorize the Secretary of State to collect up to $250 million 
in fees for machine readable visas and to spend the funds on a 
border security program. Fees collected in excess of that 
amount would be deposited in the Treasury as miscellaneous 
receipts, but collections are likely to be much less than that 
threshold. OMB estimates that the Department will collect and 
spend $80 million in 1996 and $92 million in 1997; the table 
below shows the net effects of collecting and spending those 
amounts.

                                                                        
                [By fiscal year, in millions of dollars]                
------------------------------------------------------------------------
                          1996      1997      1998      1999      2000  
------------------------------------------------------------------------
Budget Authority......         0         0         0         0         0
Outlays...............       -12        -6        11         3         1
------------------------------------------------------------------------

    Buying Power Maintenance Reappropriation. Section 2203 
would reappropriate expired balances in various State 
Department accounts and allow the Department to spend the funds 
to cover the increased costs of overseas activities caused by 
the depreciation of the dollar. OMB estimates that the 
Department will recover $20 million per year from expired 
balances. CBO estimates the Department will use the funds 
recovered in 1996 to fund programs in the diplomatic and 
consular service. CBO estimates that funds recovered after 1996 
will be credited to the Department's buying power maintenance 
account and will be released as needed to cover lost purchasing 
power from currency fluctuations.

                                                                        
                [By fiscal year, in millions of dollars]                
------------------------------------------------------------------------
                          1996      1997      1998      1999      2000  
------------------------------------------------------------------------
Budget Authority......        20        20        20        20        20
Outlays...............        17        12        14        18        20
------------------------------------------------------------------------

    Authority to Provide Services on a Reimbursable Basis. The 
bill contains several sections that would allow the Department 
of State to accept reimbursements for services and to credit 
the funds to the performing account. Section 2204 allows the 
Department to accept reimbursement for the expenses of pursuing 
a claim against a foreign government or entity.
    Section 2209 authorizes the Department to provide training 
services to corporate employees, their families, and 
Congressional employees on a reimbursable basis. Section 2353 
authorizes the State Department to collect from insurance 
companies the reasonable costs of health care services provided 
by the Department beginning in 1997 and to spend the 
collections on health care services or other expenses. The 
following table shows the net effect of these provisions.

                                                                        
                [By fiscal year, in millions of dollars]                
------------------------------------------------------------------------
                          1996      1997      1998      1999      2000  
------------------------------------------------------------------------
Budget Authority......         0         0         0         0         0
Outlays...............     (\1\)        -2        -1     (\1\)     (\1\)
------------------------------------------------------------------------
\1\ Less than $500,000.                                                 

    Waiver of Charges for Contract Administration Services. 
Section 3103 would permit the President to provide on a 
reciprocal basis certain contract administration services on 
military sales to Israel without charge. The U.S. government 
currently charges 1.5 percent of the value of sales for such 
services. CBO estimates that enactment of the provision would 
lower receipts by $20 million a year.

                                                                        
                [By fiscal year, in millions of dollars]                
------------------------------------------------------------------------
                          1996      1997      1998      1999      2000  
------------------------------------------------------------------------
Budget Authority......        20        20        20        20        20
Outlays...............        20        20        20        20        20
------------------------------------------------------------------------

    Housing Investment Guarantee Program. Section 3252 would 
cancel unobligated housing investment guarantee commitments 
issued under the authority of Section 222 of the Foreign 
Assistance Act of 1961. Cancelling the commitments would lower 
disbursements from the subsidy account by $34 million over the 
next five years.

                                                                        
                [By fiscal year, in millions of dollars]                
------------------------------------------------------------------------
                          1996      1997      1998      1999      2000  
------------------------------------------------------------------------
Budget Authority......         0         0         0         0         0
Outlays...............       -10       -10        -6        -4        -4
------------------------------------------------------------------------

    Other Provisions. Section 2407 authorizes recipients of 
grants from the National Endowment for Democracy to deposit 
grant funds in interest bearing accounts and to use the 
interest for the same purpose for which the grant was made. 
Under current law, the grantees refund their interest earnings 
to the government. CBO estimates that under this provision the 
Treasury would forgo collections of less than $60,000 a year.
    Section 3162 authorizes the President to accept 
contributions from other governments for international 
narcotics control activities and to provide narcotics control 
services on a reimbursable basis. CBO cannot estimate the 
amount of activity that might be undertaken using this 
authority.
    Section 3404 authorizes the President to deobligate and 
reobligate development assistance funds for countries whose 
assistance program is terminated. The reobligation would cover 
equitable settlements of third parties whose contracts were 
cancelled when the assistance ended. CBO cannot estimate the 
budgetary effect of this section.
    Voluntary Separation Incentives. Section 505 would allow 
the Department of State, the Arms Control and Disarmament 
Agency, the United States Information Agency, and the U.S. 
Agency for International Development to offer payments to 
encourage employees to retire before the end of fiscal year 
1997. Section 505(c) is intended to make the exercise of this 
authority conditional on the provision of funds in advance in 
an appropriations act for the express purpose of making 
incentive payments. Although CBO believes that the language in 
the reported bill does not achieve the committee's intent, the 
cost estimate assumes that the provision will be corrected. If 
the provision were not corrected, CBO's estimate of the bill 
would include additional spending for federal employee 
retirement.

               spending subject to appropriations action

    The bill would authorize $30.7 billion for international 
affairs and other programs over the next two years. The 
estimate assumes amounts specifically authorized will be 
appropriated in the year specified in the bill.
    In addition to the amounts specified, the bill contains 
various indefinite authorizations. Section 2102(f) would 
authorize such sums as may be necessary to cover the increased 
costs of assessed and voluntary contributions to international 
organizations caused by the depreciation of the dollar. OMB 
estimates that an additional $42 million in 1996 would be 
needed to restore the value lost by the sharp drop in the 
dollar since the budget was prepared. Section 2107 makes 
similar provision for contributions under the Arms Control and 
Disarmament Act. That section would authorize an additional 
$0.7 million.
    Section 2201 would authorize such sums as may be necessary 
to maintain an unobligated balance of up to $15 million for the 
payment of rewards leading to the arrest or conviction of 
individuals who have committed or conspired to commit terrorist 
acts or narcotics related offenses. CBO estimates that an 
additional $2 million per year would be authorized by that 
section.
     Deobligation of Certain Unexpended Economic Assistance 
Funds. Section 3286 would require the deobligation of 
unexpended balances in various development assistance programs. 
CBO estimates that enactment of this provision would raise 
outlays in 1997 and 1998 and lower them in 1999 and 2000. The 
change in outlays occurs because the bill would create an 
incentive for program managers to adopt incremental funding of 
multi-year assistance projects and to use existing 
deobligation/reobligation authority to avoid losing funds. 
These practices have been used in recent years to shorten the 
disbursement period in the development assistance account. Over 
90 percent of development assistance disburses in the first 
three years; the other programs specified in this section 
disburse over a five- to seven-year period. The outlay rates 
for the other programs are estimated to change to rates similar 
to those for development assistance.
    Directed Scorekeeping. Section 2210 would direct a change 
in the scoring of budget authority for lease-purchase 
agreements involving property in foreign countries. The change 
would allow the State Department to incur obligations in excess 
of appropriated amounts. In most cases, acquiring property 
through a lease-purchase agreement is more costly than buying 
the same property. Enacting the provision would encourage 
acquisition of property through lease-purchases, thereby 
increasing the government's long-term costs.
    6. Comparison with spending under current law: 
Appropriations in 1995 for discretionary spending programs 
covered by this bill totalled $16,687 million. The bill would 
authorize discretionary spending of $15,597 million in 1996 and 
$15,065 million in 1997. These amounts represent reduction of 
$1,090 million and $1,622 million, respectively, from the 1995 
level.
    7. Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act of 1985 sets up pay-as-you-go 
procedures for legislation affecting direct spending or 
receipts through 1998. H.R. 1561 would have the following pay-
as-you-go impact:

                                                                        
                [By fiscal years, in millions of dollars]               
------------------------------------------------------------------------
                                    1995      1996      1997      1998  
------------------------------------------------------------------------
Change in Outlays...............         0        15        15        38
Change in Receipts..............       \1\       \1\       \1\       \1\
------------------------------------------------------------------------
\1\ Less than $500,000.                                                 


    8. Estimated cost to state and local governments: None.
    9. Estimate comparison: None.
    10. Previous CBO estimate: None.
    11. Estimate prepared by: Joseph C. Whitehill, Christopher 
Duncan, Wayne Boyington.
    12. Estimate approved by: Matthew Miller (for Paul N. Van 
de Water, Assistant Director for Budget Analysis).

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

             STATE DEPARTMENT BASIC AUTHORITIES ACT OF 1956

          * * * * * * *

                  TITLE I--BASIC AUTHORITIES GENERALLY

                organization of the department of state

  Section 1. (a)  * * *
  (b) Under Secretaries.--[There]
          (1) In general.--There shall be in the Department of 
        State not more than 5 Under Secretaries of State, who 
        shall be appointed by the President, by and with the 
        advice and consent of the Senate, and who shall be 
        compensated at the rate provided for at level III of 
        the Executive Schedule under section 5314 of title 5, 
        United States Code.
          (2) Under secretary for public diplomacy.--There 
        shall be in the Department of State an Under Secretary 
        for Public Diplomacy who shall have responsibility to 
        assist the Secretary and the Deputy Secretary in the 
        formation and implementation of United States public 
        diplomacy policies and activities, including 
        international educational and cultural exchange 
        programs, information, and international broadcasting.
          (3) Under secretary for development and economic 
        affairs.--There shall be in the Department of State an 
        Under Secretary for Development and Economic Affairs 
        who shall assist the Secretary and the Deputy Secretary 
        in the formation and implementation of United States 
        policies and activities concerning international 
        development and economic affairs.
  (c) Assistant Secretaries.--
          (1)  * * *
          [(2) Assistant secretary of state for democracy, 
        human rights, and labor.--(A) There shall be in the 
        Department of State an Assistant Secretary of State for 
        Democracy, Human Rights, and Labor who shall be 
        responsible to the Secretary of State for matters 
        pertaining to human rights and humanitarian affairs 
        (including matters relating to prisoners of war and 
        members of the United States Armed Forces missing in 
        action) in the conduct of foreign policy and such other 
        related duties as the Secretary may from time to time 
        designate. The Secretary of State shall carry out the 
        Secretary's responsibility under section 502B of the 
        Foreign Assistance Act of 1961 through the Assistant 
        Secretary.
          [(B) The Assistant Secretary of State for Democracy, 
        Human Rights, and Labor shall maintain continuous 
        observation and review all matters pertaining to human 
        rights and humanitarian affairs (including matters 
        relating to prisoners of war and members of the United 
        States Armed Forces missing in action) in the conduct 
        of foreign policy including the following:
                  [(i) Gathering detailed information regarding 
                humanitarian affairs and the observance of and 
                respect for internationally recognized human 
                rights in each country to which requirements of 
                sections 116 and 502B of the Foreign Assistance 
                Act of 1961 are relevant.
                  [(ii) Preparing the statements and reports to 
                Congress required under section 502B of the 
                Foreign Assistance Act of 1961.
                  [(iii) Making recommendations to the 
                Secretary of State and the Administrator of the 
                Agency for International Development regarding 
                compliance with sections 116 and 502B of the 
                Foreign Assistance Act of 1961, and as part of 
                the Assistant Secretary's overall policy 
                responsibility for the creation of United 
                States Government human rights policy, advising 
                the Administrator of the Agency for 
                International Development on the policy 
                framework under which section 116(e) projects 
                are developed and consulting with the 
                Administrator on the selection and 
                implementation of such projects.
                  [(iv) Performing other responsibilities which 
                serve to promote increased observance of 
                internationally recognized human rights by all 
                countries.]
          (2) Assistant secretary for human resources.--There 
        shall be in the Department of State an Assistant 
        Secretary for Human Resources who shall be responsible 
        to the Secretary of State for matters relating to human 
        resources including the implementation of personnel 
        policies and programs within the Department of State 
        and international affairs functions and activities 
        carried out through the Department of State. The 
        Assistant Secretary shall have substantial professional 
        qualifications in the field of human resource policy 
        and management.
          (3) Assistant secretary for academic programs and 
        cultural exchanges.--There shall be in the Department 
        of State an Assistant Secretary for Academic Programs 
        and Cultural Exchanges who shall report to the Under 
        Secretary for Public Diplomacy.
          (4) Assistant secretary for information, policy, and 
        programs.--There shall be in the Department of State an 
        Assistant Secretary for Information, Policy, and 
        Programs who shall report to the Under Secretary for 
        Public Diplomacy.
          * * * * * * *
  (e) Other Senior Officials.--[In]
          (1) In addition to officials of the Department of 
        State who are otherwise authorized to be appointed by 
        the President, by and with the advice and consent of 
        the Senate, and to be compensated at level IV of the 
        Executive Schedule of section 5315 of title 5, United 
        States Code, four other such appointments are 
        authorized.
          (2) Coordinator for Counterterrorism.--
                  (A) There shall be within the office of the 
                Secretary of State a Coordinator for 
                Counterterrorism (hereafter in this paragraph 
                referred to as the ``Coordinator'') who shall 
                be appointed by the President, by and with the 
                advice and consent of the Senate.
                  (B)(i) The Coordinator shall perform such 
                duties and exercise such power as the Secretary 
                of State shall prescribe.
                  (ii) The principal duty of the Coordinator 
                shall be the overall supervision (including 
                policy oversight of resources) of international 
                counterterrorism activities. The Coordinator 
                shall be the principal advisor to the Secretary 
                of State on international counterterrorism 
                matters. The Coordinator shall be the principal 
                counterterrorism official within the senior 
                management of the Department of State and shall 
                report directly to the Secretary of State.
          (C) The Coordinator shall have the rank and status of 
        Ambassador-at-Large. The Coordinator shall be 
        compensated at the annual rate of basic pay in effect 
        for a position at level IV of the Executive Schedule 
        under section 5314 of title 5, United States Code, or, 
        if the Coordinator is appointed from the Foreign 
        Service, the annual rate of pay which the individual 
        last received under the Foreign Service Schedule, 
        whichever is greater.
          (D) For purposes of diplomatic protocol among 
        officers of the Department of State, the Coordinator 
        shall take precedence after the Secretary of State, the 
        Deputy Secretary of State, and the Under Secretaries of 
        State and shall take precedence among the Assistant 
        Secretaries of State in the order prescribed by the 
        Secretary of State.
          (3) United states special envoy for tibet.--
                  (A) There shall be within the Department of 
                State a United States Special Envoy for Tibet, 
                who shall be appointed by the President, by and 
                with the advice and consent of the Senate. The 
                United States Special Envoy for Tibet shall 
                hold office at the pleasure of the President.
                  (B) The United States Special Envoy for Tibet 
                shall have the personal rank of ambassador.
                  (C) The United States Special Envoy for Tibet 
                is authorized and encouraged--
                          (i) to promote substantive 
                        negotiations between the Dalai Lama or 
                        his representatives and senior members 
                        of the Government of the People's 
                        Republic of China;
                          (ii) to promote good relations 
                        between the Dalai Lama and his 
                        representatives and the United States 
                        Government, including meeting with 
                        members or representatives of the 
                        Tibetan government-in-exile; and
                          (iii) to travel regularly throughout 
                        Tibet and Tibetan refugee settlements.
                  (D) The United States Special Envoy for Tibet 
                shall--
                          (i) consult with the Congress on 
                        policies relevant to Tibet and the 
                        future and welfare of all Tibetan 
                        people;
                          (ii) coordinate United States 
                        Government policies, programs, and 
                        projects concerning Tibet; and
                          (iii) report to the Secretary of 
                        State regarding the matters described 
                        in section 536(a)(2) of the Foreign 
                        Relations Authorization Act, Fiscal 
                        Years 1994 and 1995 (Public Law 103-
                        236).
          (4) Coordinator for human rights and refugees.--
                  (A) There shall be within the office of the 
                Secretary of State a Coordinator for Human 
                Rights and Refugees (hereafter in this 
                paragraph referred to as the `Coordinator') who 
                shall be appointed by the President, by and 
                with the advice and consent of the Senate. The 
                Coordinator shall report directly to the 
                Secretary of State.
                  (B) The Coordinator shall be responsible for 
                matters pertaining to human rights, refugees, 
                and humanitarian affairs (including matters 
                relating to prisoners of war and members of the 
                United States Armed Forces missing in action) 
                in the conduct of foreign policy. The 
                Coordinator shall head the Bureau of Refugee 
                and Migration Assistance and the Bureau of 
                Democracy, Human Rights, and Labor.
                  (C) The Coordinator shall have the rank and 
                status of Ambassador-at-Large. The Coordinator 
                shall be compensated at the annual rate of 
                basic pay in effect for a position at level IV 
                of the Executive Schedule under section 5314 of 
                title 5, United States Code, or, if the 
                Coordinator is appointed from the Foreign 
                Service, the annual rate of pay which the 
                individual last received under the Foreign 
                Service Schedule, whichever is greater.
                  (D) For purposes of diplomatic protocol among 
                officers of the Department of State, the 
                Coordinator shall take precedence after the 
                Secretary of State, the Deputy Secretary of 
                State, and the Under Secretaries of State and 
                shall take precedence among the Assistant 
                Secretaries of State in the order prescribed by 
                the Secretary of State.
          (5) Coordinator for arms control and disarmament.--
                  (A) There shall be within the office of the 
                Secretary of State a Coordinator for Arms 
                Control and Disarmament (hereafter in this 
                paragraph referred to as the ``Coordinator'' 
                who shall be appointed by the President, by and 
                with the advice and consent of the Senate. The 
                Coordinator shall report directly to the 
                Secretary of State.
                  (B)(i) The Coordinator shall perform such 
                duties and exercise such power as the Secretary 
                of State shall prescribe.
                  (ii) The Coordinator shall be responsible for 
                arms control and disarmament matters. The 
                Coordinator shall head the Bureau of Arms 
                Control and Disarmament.
                  (C) The Coordinator shall have the rank and 
                status of Ambassador-at-Large. The Coordinator 
                shall be compensated at the annual rate of 
                basic pay in effect for a position at level IV 
                of the Executive Schedule under section 5314 of 
                title 5, United States Code, or, if the 
                Coordinator is appointed from the Foreign 
                Service, the annual rate of pay which the 
                individual last received under the Foreign 
                Service Schedule, whichever is greater.
  (f) Establishment of Certain Bureaus, Offices, and Other 
Organizational Entities Within the Department of State.--
          (1) Bureau of refugee and migration assistance.--
        There is established within the Department of State the 
        Bureau of Refugee and Migration Assistance which shall 
        assist the Secretary of State in carrying out the 
        Migration and Refugee Assistance Act of 1962. The 
        Bureau shall be headed by the Coordinator for Human 
        Rights and Refugees.
          (2) Bureau of democracy, human rights, and labor.--
        There is established within the Department of State the 
        Bureau of Democracy, Human Rights, and Labor. The 
        Bureau shall be headed by the Coordinator for Human 
        Rights and Refugees. The Bureau shall continuously 
        observe and review all matters pertaining to human 
        rights and humanitarian affairs (including matters 
        relating to prisoners of war and members of the United 
        States Armed Forces missing in action) in the conduct 
        of foreign policy including the following:
                  (A) Gathering detailed information regarding 
                humanitarian affairs and the observance of and 
                respect for internationally recognized human 
                rights in each country to which the 
                requirements of section 116 and 502B of the 
                Foreign Assistance Act of 1961 are relevant.
                  (B) Preparing the statements and reports to 
                Congress required under section 502B of the 
                Foreign Assistance Act of 1961.
                  (C) Making recommendations to the Secretary 
                of State regarding compliance with sections 116 
                and 502B of the Foreign Assistance Act of 1961, 
                and as part of the Bureau's overall policy 
                responsibility for the creation of United 
                States Government human rights policy, advising 
                the Secretary on the policy framework under 
                which section 116(e) projects are developed and 
                consulting with the Secretary on the selection 
                and implementation of such projects.
                  (D) Performing other responsibilities which 
                serve to promote increased observance of 
                internationally recognized human rights by all 
                countries.
          * * * * * * *

                        administrative services

  Sec. 23. (a) Agreements.--Whenever the head of any Federal 
agency performing any foreign affairs functions [(including, 
but not limited to, the Department of State, the International 
Communication Agency, the Agency for International Development, 
and the Arms Control and Disarmament Agency)] determines that 
administrative services performed in common by the Department 
of State and one or more [other such agencies] other Federal 
agencies may be performed more advantageously and more 
economically on a consolidated basis, the Secretary of State 
and the heads of the other agencies concerned may, subject to 
the approval of the Director of the Office of Management and 
Budget, conclude an agreement which provides for the transfer 
to and consolidation within the Department or within one of the 
other agencies concerned of so much of the functions, 
personnel, property, records, and funds of the Department and 
of the other agencies concerned as may be necessary to enable 
the performance of those administrative services on a 
consolidated basis for the benefit of all agencies concerned. 
Agreements for consolidation of administrative services under 
this section shall provide for reimbursement or advances of 
funds from the agency receiving the service to the agency 
performing the service in amounts which will approximate the 
expense of providing administrative services for the serviced 
agency.
          * * * * * * *
  Sec. 24. (a) * * *
  (b)(1) In order to maintain the levels of program activity 
for the Department of State provided for each fiscal year by 
the annual authorizing legislation, there are authorized to be 
appropriated for the Department of State such sums as may be 
necessary to offset adverse fluctuations in foreign currency 
exchange rates, or overseas wage and price changes, which occur 
after November 30 of the earlier of--
          (A) * * *
          * * * * * * *
  (7)(A) Subject to the limitations contained in this 
paragraph, not later than the end of the fifth fiscal year 
after the fiscal year for which funds are appropriated or 
otherwise made available for an account under ``Administration 
of Foreign Affairs'', the Secretary of State may transfer any 
unobligated balance of such funds to the Buying Power 
Maintenance account.
          * * * * * * *
  [(D) The authorities contained in this section may only be 
exercised to such an extent and in such amounts as specifically 
provided for in advance in appropriations Acts.]
          * * * * * * *
  Sec. 26. (a)  * * *
  [(b) The authority available to the Secretary of State under 
this section shall be available to the Director of the United 
States Information Agency, the chairman of the Board for 
International Broadcasting, and the Director of the United 
States International Development Cooperation Agency with 
respect to their respective agencies.]
          * * * * * * *
  Sec. 32. The Secretary of State may pay, without regard to 
section 5702 of title 5, United States Code, subsistence 
expenses of (1) special agents of the Department of State who 
are on authorized protective missions, and (2) members of the 
Foreign Service and employees of the Department who are 
required to spend extraordinary amounts of time in travel 
status. [The authorities available to the Secretary of State 
under this section with respect to the Department of State 
shall be available to the Director of the United States 
Information Agency and the Director of the United States 
International Development Cooperation Agency with respect to 
their respective agencies, except that the authority of clause 
(2) shall be available with respect to those agencies only in 
the case of members of the Foreign Service and employees of the 
agency who are performing security-related functions abroad.]
          * * * * * * *
  Sec. 33. The following documents shall have the same force 
and effect as proof of United States citizenship as 
certificates of naturalization or of citizenship issued by the 
Attorney General or by a court having naturalization 
jurisdiction:
          (1) A passport, during its period of validity (if 
        such period is the maximum period authorized by law), 
        issued by the Secretary of State to a citizen of the 
        United States.
          (2) The report, designated as a ``Report of Birth 
        Abroad of a Citizen of the United States'', issued by a 
        consular officer (or any United States citizen employee 
        of the Department of State designated by the Secretary 
        of State to adjudicate nationality abroad pursuant to 
        such regulations as the Secretary may prescribe) to 
        document a citizen born abroad.
          * * * * * * *
  [Sec. 36. (a)(1) The Secretary of State may pay a reward to 
any individual who furnishes information--
          [(A) leading to the arrest or conviction in any 
        country, of any individual for the commission of an act 
        of international terrorism, or
          [(B) leading to the arrest or conviction, in any 
        country, of any individual for conspiring or attempting 
        to commit an act of international terrorism, or
          [(C) leading to the prevention, frustration, or 
        favorable resolution of an act of international 
        terrorism.
if the act of international terrorism is against a United 
States person or United States property.
  [(2) For purposes of this subsection, the term ``act of 
international terrorism'' includes any act substantially 
contributing to the acquisition of unsafeguarded special 
nuclear material (as defined in section 830(8) of the Nuclear 
Proliferation Prevention Act of 1994) or any nuclear explosive 
device (as defined in section 830(4) of that Act) by an 
individual, group, or non-nuclear-weapon state (as defined in 
section 830(5) of that Act).
  [(b)(1) The Secretary of State, upon the request of a chief 
of mission and with the concurrence of the Attorney General, 
may pay a reward to any individual who furnishes information 
leading to--
          [(A) the arrest or conviction in any country of any 
        individual for committing, primarily outside the 
        territorial jurisdiction of the United States, any 
        narcotics-related offense if that offense involves or 
        is a significant part of conduct that involves--
                  [(i) a violation of United States drug laws 
                which occurs primarily outside the territorial 
                jurisdiction of the United States and which is 
                such that the individual would be a major 
                violator of such laws; or
                  [(ii) the killing or kidnapping outside the 
                territorial jurisdiction of the United States 
                of--
                          [(I) any officer, employee, or 
                        contract employee of the United States 
                        Government while such individual is 
                        engaged in official duties, or on 
                        account of that individual's official 
                        duties, in connection with the 
                        enforcement of United States drug laws 
                        or the implementing of United States 
                        drug control objectives; or
                          [(II) a member of the immediate 
                        family of any such individual on 
                        account of that individual's official 
                        duties in connection with the 
                        enforcement of United States drug laws 
                        or the implementation of United States 
                        drug control objectives; or
                  [(iii) an attempt or conspiracy to do any of 
                the acts described in clause (i) or (ii); or
          [(B) the prevention or frustration of an act 
        described in subparagraph (A).
  [(2) The purpose of the rewards under this subsection is to 
assist narcotics law enforcement in the effective arrest and 
prosecution of major narcotics traffickers and, wherever 
appropriate, to offer rewards in connection with the killing 
of, or the attempt to kill, any United States officer or 
employee, in connection with the performance of narcotics 
control duties by such officer or employee, or any member of 
the family of such officer or employee. To ensure that the 
rewards program authorized by this subsection, especially 
paragraph (1)(A)(i), does not duplicate or interfere with the 
payment of informants or the purchase of evidence or 
information, as authorized to the Department of Justice, the 
offering, administration, and payment of rewards under this 
subsection, including procedures for--
          [(A) identifying individuals, organizations, and 
        offenses with respect to which rewards will be offered,
          [(B) the publication of rewards,
          [(C) offering of joint rewards with foreign 
        governments,
          [(D) the receipt and analysis of data,
          [(E) the payment and the approval of payment, and
          [(F) the recommendations of rewards by chiefs of 
        mission to the Secretary of State and the Attorney 
        General,
shall be governed by procedures approved by the Secretary of 
State and the Attorney General.
  [(c) A reward under this section may not exceed $2,000,000. A 
reward of $100,000 or more may not be made without the approval 
of the President or the Secretary of State personally.
  [(d) Before making a reward under subsection (a) in a matter 
over which there is Federal criminal jurisdiction, the 
Secretary of State shall advise and consult with the Attorney 
General.
  [(e) Any reward granted under this section shall be certified 
for payment by the Secretary of State. If the Secretary 
determines that the identity of the recipient of a reward or of 
the members of the recipient's immediate family must be 
protected, the Secretary may take such measures in connection 
with the payment of the reward as he deems necessary to effect 
such protection.
  [(f) An officer or employee of any governmental entity who, 
while in the performance of his or her official duties, 
furnishes information described in subsection (a) or (b) shall 
not be eligible for a reward under this section.
  [(g) There are authorized to be appropriated, without fiscal 
year limitation, $5,000,000 for use in paying rewards under 
this section, up to $2,000,000 of which may be used for rewards 
for information described in subsection (b)(1). In addition to 
the amount authorized to be appropriated by the preceding 
sentence, there are authorized to be appropriated, without 
fiscal year limitation, $5,000,000 for ``Administration of 
Foreign Affairs'' for use in paying rewards for information 
described in subsection (b)(1). Additional funds to pay rewards 
under this section shall be authorized to be appropriated in 
the annual authorizing legislation for the Department of State.
  [(h) Not later than 30 days after paying any reward under 
this section, the Secretary of State shall submit a report to 
the Congress with respect to that reward. The report, which may 
be submitted on a classified basis if necessary, shall specify 
the amount of the reward paid, to whom the reward was paid, and 
the acts with respect to which the reward was paid, and shall 
discuss the significance of the information for which the 
reward was paid in dealing with those acts.
  [(i) As used in this section--
          [(1) the term ``United States drug laws'' means the 
        laws of the United States for the prevention and 
        control of illicit traffic in controlled substances (as 
        such term is defined for purposes of the Controlled 
        Substances Act); and
          [(2) the term ``member of the immediate family'' 
        includes--
                  [(A) a spouse, parent, brother, sister, or 
                child of the individual;
                  [(B) a person to whom the individual stands 
                in loco parentis; and
                  [(C) any other person living in the 
                individual's household and related to the 
                individual by blood or marriage.]
SEC. 36 DEPARTMENT OF STATE REWARDS PROGRAM.

  (a) Establishment.--(1) There is established a program for 
the payment of rewards to carry out the purposes of this 
section.
  (2) The rewards program established by this section shall be 
administered by the Secretary of State, in consultation, where 
appropriate, with the Attorney General.
  (b) Purpose.--(1) The rewards program established by this 
section shall be designed to assist in the prevention of acts 
of international terrorism, international narcotics 
trafficking, and other related criminal acts.
  (2) The Secretary of State may pay a reward to any individual 
who furnishes information leading to--
          (A) the arrest or conviction in any country of any 
        individual for the commission of an act of 
        international terrorism against a United States person 
        or United States property;
          (B) the arrest or conviction in any country of any 
        individual conspiring or attempting to commit an act of 
        international terrorism against a United States person 
        or United States property;
          (C) the arrest or conviction in any country of any 
        individual for committing, primarily outside the 
        territorial jurisdiction of the United States, any 
        narcotics-related offense if that offense involves or 
        is a significant part of conduct that involves--
                  (i) a violation of United States narcotics 
                laws and which is such that the individual 
                would be a major violator of such laws; or
                  (ii) the killing or kidnapping of--
                          (I) any officer, employee, or 
                        contract employee of the United States 
                        Government while such individual is 
                        engaged in official duties, or on 
                        account of that individual's official 
                        duties, in connection with the 
                        enforcement of United States narcotics 
                        laws or the implementing of United 
                        States narcotics control objectives; or
                          (II) a member of the immediate family 
                        of any such individual on account of 
                        that individual's official duties, in 
                        connection with the enforcement of 
                        United States narcotics laws or the 
                        implementing of United States narcotics 
                        control objectives; or
                  (iii) an attempt or conspiracy to commit any 
                of the acts described in clause (i) or (ii); or
          (D) the arrest or conviction in any country of any 
        individual aiding or abetting in the commission of an 
        act described in subparagraphs (A) through (C); or
          (E) the prevention, frustration, or favorable 
        resolution of an act described in subparagraphs (A) 
        through (C).
  (c) Coordination.--(1) To ensure that the payment of rewards 
pursuant to this section does not duplicate or interfere with 
the payment of informants or the obtaining of evidence or 
information, as authorized to the Department of Justice, the 
offering, administration, and payment of rewards under this 
section, including procedures for--
          (A) identifying individuals, organizations, and 
        offenses with respect to which rewards will be offered;
          (B) the publication of rewards;
          (C) offering of joint rewards with foreign 
        governments;
          (D) the receipt and analysis of data; and
          (E) the payment and approval of payment,
shall be governed by procedures developed by the Secretary of 
State, in consultation with the Attorney General.
  (2) Before making a reward under this section in a matter 
over which there is Federal criminal jurisdiction, the 
Secretary of State shall advise and consult with the Attorney 
General.
  (d) Funding.--(1) There is authorized to be appropriated to 
the Department of State from time to time such amounts as may 
be necessary to carry out the purposes of this section, 
notwithstanding section 102 of the Foreign Relations 
Authorization Act, Fiscal Years 1986 and 1987 (Public Law 99-
93).
  (2) No amount of funds may be appropriated which, when added 
to the amounts previously appropriated but not yet obligated, 
would cause such amounts to exceed $15,000,000.
  (3) To the maximum extent practicable, funds made available 
to carry out this section should be distributed equally for the 
purpose of preventing acts of international terrorism and for 
the purpose of preventing international narcotics trafficking.
  (4) Amounts appropriated to carry out the purposes of this 
section shall remain available until expended.
  (e) Additional Funding.--(1) In extraordinary circumstances 
and when it is important to the national security of the United 
States, the Secretary of State may use fees collected for 
processing machine readable nonimmigrant visas and machine 
readable combined border crossing identification cards and 
nonimmigrant visas pursuant to section 140 of the Foreign 
Relations Authorization Act, Fiscal Years 1994 and 1995 (Public 
Law 103-236; 8 U.S.C. 1351 note) to carry out the purposes of 
this section, subject to the limitation contained in subsection 
(d)(2).
  (2) The authority contained in paragraph (1) may be used only 
if the Secretary notifies the appropriate congressional 
committees 15 days in advance in accordance with regular 
reprogramming procedures. Such notification shall contain a 
detailed justification of the circumstances necessitating the 
use of such fees for the purposes of this section.
  (f) Limitation and Certification.--(1) A reward under this 
section may not exceed $2,000,000.
  (2) A reward under this section of more than $100,000 may not 
be made without the approval of the President or the Secretary 
of State.
  (3) Any reward granted under this section shall be approved 
and certified for payment by the Secretary of State.
  (4) The authority of paragraph (2) may not be delegated to 
any other officer or employee of the United States Government.
  (5) If the Secretary determines that the identity of the 
recipient of a reward or of the members of the recipient's 
immediate family must be protected, the Secretary may take such 
measures in connection with the payment of the reward as he 
considers necessary to effect such protection.
  (g) Ineligibility.--An officer or employee of any 
governmental entity who, while in the performance of his or her 
official duties, furnishes information described in subsection 
(b) shall not be eligible for a reward under this section.
  (h) Reports.--(1) Not later than 30 days after paying any 
reward under this section, the Secretary of State shall submit 
a report to the appropriate congressional committees with 
respect to such reward. The report, which may be submitted on a 
classified basis if necessary, shall specify the amount of the 
reward paid, to whom the reward was paid, and the acts with 
respect to which the reward was paid. The report shall also 
discuss the significance of the information for which the 
reward was paid in dealing with those acts.
  (2) Not later than 60 days after the end of each fiscal year, 
the Secretary of State shall submit an annual report to the 
appropriate congressional committees with respect to the 
operation of the rewards program authorized by this section. 
Such report shall provide information on the total amounts 
expended during such fiscal year to carry out the purposes of 
this section, including amounts spent to publicize the 
availability of rewards. Such report shall also include 
information on all requests for the payment of rewards under 
this section, including the reasons for the denial of any such 
requests.
  (i) Definitions.--As used in this section--
          (1) the term ``appropriate congressional committees'' 
        means the Committee on International Relations of the 
        House of Representatives and the Committee on Foreign 
        Relations of the Senate;
          (2) the term ``act of international terrorism'' 
        includes, but is not limited to--
                  (A) any act substantially contributing to the 
                acquisition of unsafeguarded special nuclear 
                material (as defined in section 830(8) of the 
                Nuclear Proliferation Prevention Act of 1994) 
                or any nuclear explosive device (as defined in 
                section 830(4) of that Act) by an individual, 
                group, or non-nuclear weapon state (as defined 
                in section 830(5) of that Act); and
                  (B) any act, as determined by the Secretary 
                of State, which materially supports the conduct 
                of international terrorism, including the 
                counterfeiting of United States currency or the 
                illegal use of other monetary instruments by an 
                individual, group, or country supporting 
                international terrorism as determined for 
                purposes of section 6(j) of the Export 
                Administration Act of 1979;
          (3) the term ``United States narcotics laws'' means 
        the laws of the United States for the prevention and 
        control of illicit traffic in controlled substances (as 
        such term is defined for purposes of the Controlled 
        Substances Act); and
          (4) the term ``member of the immediate family'' 
        includes--
                  (A) a spouse, parent, brother, sister, or 
                child of the individual;
                  (B) a person to whom the individual stands in 
                loco parentis; and
                  (C) any other person living in the 
                individual's household and related to the 
                individual by blood or marriage.
          * * * * * * *

 expenses relating to participation in arbitrations of certain disputes

  Sec. 38. (a) * * *
          * * * * * * *
  (c) Procurement of Services.--The Secretary of State may use 
competitive procedures or procedures other than competitive 
procedures to procure the services of experts for use in 
preparing or prosecuting a proceeding before an international 
tribunal or a claim by or against a foreign government or other 
foreign entity, whether or not the expert is expected to 
testify, or to procure personal and other support services for 
such proceedings or claims. The Secretary need not provide any 
written justification for the use of procedures other than 
competitive procedures when procuring such services under this 
subsection and need not furnish for publication in the Commerce 
Business Daily or otherwise any notice of solicitation or 
synopsis with respect to such procurement.
          * * * * * * *

  TITLE II--AUTHORITIES RELATING TO THE REGULATION OF FOREIGN MISSIONS

          * * * * * * *

                 authorities of the secretary of state

  Sec. 203. The Secretary shall carry out the following 
functions:
          (1) * * *
          * * * * * * *
          (4) As determined by the Secretary, designate an 
        office within the Department of State to carry out the 
        purposes of this Act. If such an office is established, 
        the President may appoint, by and with the advice and 
        consent of the Senate, a Director, with the rank of 
        ambassador. Of the Director and the next most senior 
        person in the office, one [should] shall be an 
        individual who has served in the Foreign Service and 
        the other [should] shall be an individual who has 
        served in the United States intelligence community.
          * * * * * * *
                              ----------                              


            SECTION 101 OF THE NATIONAL SECURITY ACT OF 1947

                       national security council

  Sec. 101. (a)  * * *
          * * * * * * *
  (i) The Coordinator for Arms Control and Disarmament may, in 
the role of advisor to the National Security Council on arms 
control and disarmament matters, and subject to the direction 
of the President, attend and participate in meetings of the 
National Security Council.
                              ----------                              


                    ARMS CONTROL AND DISARMAMENT ACT

   AN ACT To establish a United States Arms Control and Disarmament 
                                Agency.

  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,

             TITLE I--SHORT TITLE, PURPOSE, AND DEFINITIONS

                              short title

  Section 1. This Act may be cited as the ``Arms Control and 
Disarmament Act''.

                                [purpose

  [Sec. 2. An ultimate goal of the United States is a world 
which is free from the scourge of war and the dangers and 
burdens of armaments; in which the use of force has been 
subordinated to the rule of law; and in which international 
adjustments to a changing world are achieved peacefully. It is 
the purpose of this Act to provide impetus toward this goal by 
creating a new agency of peace to deal with the problem of 
reduction and control of armaments looking toward ultimate 
world disarmament.
  [Arms control, nonproliferation, and disarmament policy, 
being an important aspect of foreign policy, must be consistent 
with national security policy as a whole. The formulation and 
implementation of United States arms control, nonproliferation, 
and disarmament policy in a manner which will promote the 
national security can best be insured by a central organization 
charged by statute with primary responsibility for this field. 
This organization must have such a position within the 
Government that it can provide the President, the Secretary of 
State, other officials of the executive branch, and the 
Congress with recommendations concerning United States arms 
control, nonproliferation, and disarmament policy, and can 
assess the effect of these recommendations upon our foreign 
policies, our national security policies, and our economy.
  [This organization must have the capacity to provide the 
essential scientific, economic, political, military, 
psychological, and technological information upon which 
realistic arms control, nonproliferation, and disarmament 
policy must be based. It shall have the authority, under the 
direction of the President and the Secretary of State, to carry 
out the following primary functions:
          [(1) The preparation for and management of United 
        States participation in international negotiations and 
        implementation fora in the arms control and disarmament 
        field.
          [(2) When directed by the President, the preparation 
        for, and management of, United States participation in 
        international negotiations and implementation fora in 
        the nonproliferation field.
          [(3) The conduct, support, and coordination of 
        research for arms control, nonproliferation, and 
        disarmament policy formulation.
          [(4) The preparation for, operation of, or, as 
        appropriate, direction of, United States participation 
        in such control systems as may become part of United 
        States arms control, nonproliferation, and disarmament 
        activities.
          [(5) The dissemination and coordination of public 
        information concerning arms control, nonproliferation, 
        and disarmament.]

                              definitions

  Sec. 3. As used in this Act--
          (a) The terms ``arms control'' and ``disarmament'' 
        mean the identification, verification, inspection, 
        limitation, control, reduction, or elimination, of 
        armed forces and armaments of all kinds under 
        international agreement including the necessary steps 
        taken under such an agreement to establish an effective 
        system of international control, or to create and 
        strengthen international organizations for the 
        maintenance of peace.
          (b) The term ``Government agency'' means any 
        executive department, commission, agency, independent 
        establishment, corporation wholly or partly owned by 
        the United States which is an instrumentality of the 
        United States, or any board, bureau, division, service, 
        office, officer, authority, administration, or other 
        establishment in the executive branch of Government.
          [(c) The term ``Agency'' means the United States Arms 
        Control and Disarmament Agency.]
          (c) The term ``Department'' means the Department of 
        State.
          (d) The term ``Secretary'' means the Secretary of 
        State.
                         TITLE II--ORGANIZATION

           [united states arms control and disarmament agency

  [Sec. 21. There is hereby established an agency to be known 
as the ``United States Arms Control and Disarmament Agency''.]

                               [director

  [Sec. 22. (a) Appointment.--The Agency shall be headed by a 
Director appointed by the President, by and with the advice and 
consent of the Senate. No person serving on active duty as a 
commissioned officer of the Armed Forces of the United States 
may be appointed Director.
  [(b) Duties.--(1) The Director shall serve as the principal 
adviser to the Secretary of State, the National Security 
Council, and the President and other executive branch 
Government officials on matters relating to arms control, 
nonproliferation, and disarmament. In carrying out his duties 
under this Act, the Director, under the direction of the 
President and the Secretary of State, shall have primary 
responsibility within the Government for matters relating to 
arms control and disarmament, and, whenever directed by the 
President, primary responsibility within the Government for 
matters relating to nonproliferation.
  [(2) The Director shall attend all meetings of the National 
Security Council involving weapons procurement, arms sales, 
consideration of the defense budget, and all arms control, 
nonproliferation, and disarmament matters.

                            [deputy director

  [Sec. 23. A Deputy Director of the Agency shall be appointed 
by the President, by and with the advice and consent of the 
Senate. The Deputy Director shall have direct responsibility, 
under the supervision of the Director, for the administrative 
management of the Agency, intelligence-related activities, 
security, and the Special Compartmental Intelligence Facility, 
and shall perform such other duties and exercise such other 
powers as the Director may prescribe. He shall act for, and 
exercise the powers of, the Director during his absence or 
disability or during a vacancy in said office. No person 
serving on active duty as a commissioned officer of the Armed 
Forces of the United States may be appointed Deputy Director.

                          [assistant directors

  [Sec. 24. Not to exceed four Assistant Directors may be 
appointed by the President, by and with the advice and consent 
of the Senate. They shall perform such duties and exercise such 
powers as the Director may prescribe.

                    [bureaus, offices, and divisions

  [Sec. 25. The Director may establish within the Agency such 
bureaus, offices, and divisions as he may determine to be 
necessary to discharge his responsibilities pursuant to this 
Act, including a bureau of intelligence and information support 
and an office to perform legal services for the Agency.]

                scientific and policy advisory committee

  Sec. 26. (a) Establishment.--(1) The President may appoint a 
Scientific and Policy Advisory Committee (in this section 
referred to as the ``Committee'') of not to exceed 15 members, 
not less than eight of whom shall be scientists.
  (2) The members of the Committee shall be appointed as 
follows:
          (A) One member, who shall be a person of renown and 
        distinction, shall be appointed by the President, by 
        and with the advice and consent of the Senate, as 
        Chairman of the Committee.
          (B) Fourteen other members shall be appointed by the 
        President.
  (3) The Committee shall meet at least twice each year.
  (b) Function.--It shall be the responsibility of the 
Committee to advise the President[, the Secretary of State, and 
the Director] and the Secretary of State respecting scientific, 
technical, and policy matters affecting arms control, 
nonproliferation, and disarmament.
  (c) Reimbursement of Expenses.--The members of the Committee 
may receive reimbursement of expenses only in accordance with 
the provisions applicable to the reimbursement of experts and 
consultants under section 41(d) of this Act.
  (d) Termination.--The Committee shall terminate two years 
after the date of enactment of the Arms Control and 
Nonproliferation Act of 1994.
  (e) Definition.--As used in this section, the term 
``scientist'' means an individual who has a demonstrated 
knowledge and technical expertise with respect to arms control, 
nonproliferation, and disarmament matters and who has 
distinguished himself or herself in any of the fields of 
physics, chemistry, mathematics, biology, or engineering, 
including weapons engineering.
                  presidential special representatives

  Sec. 27. The President may appoint, by and with the advice 
and consent of the Senate, Special Representatives of the 
President for arms control, nonproliferation, and disarmament 
matters. Each Presidential Special Representative shall hold 
the rank of ambassador. One such Representative may serve in 
the [Agency] Department as Chief Science Advisor. Presidential 
Special Representatives appointed under this section shall 
perform their duties and exercise their powers under the 
direction of the President and the Secretary of State[, acting 
through the Director]. The [Agency] Department shall be the 
Government agency responsible for providing administrative 
support, including funding, staff, and office space, to all 
Presidential Special Representatives.

                     program for visiting scholars

  Sec. 28. A program for visiting scholars in the fields of 
arms control, nonproliferation, and disarmament shall be 
established by the [Director] Secretary in order to obtain the 
services of scholars from the faculties of recognized 
institutes of higher learning. The purpose of the program will 
be to give specialists in the physical sciences and other 
disciplines relevant to the [Agency's activities] Department's 
arms control, nonproliferation, and disarmament activities an 
opportunity for active participation in the arms control, 
nonproliferation, and disarmament activities of the [Agency] 
Department and to gain for the [Agency] Department the 
perspective and expertise such persons can offer. Each fellow 
in the program shall be appointed for a term of one year, 
except that such term may be extended for a 1-year period. 
Fellows shall be chosen by a board consisting of the [Director] 
Secretary, who shall be the chairperson[, and all former 
Directors of the Agency].

                          TITLE III--FUNCTIONS

                                research

  Sec. 31. The [Director] Secretary is authorized and directed 
to exercise his powers in such manner as to insure the 
acquisition of a fund of theoretical and practical knowledge 
concerning disarmament and nonproliferation. To this end, the 
[Director] Secretary is authorized and directed, under the 
direction of the President, (1) to insure the conduct of 
research, development, and other studies in the fields of arms 
control, nonproliferation, and disarmament; (2) to make 
arrangements (including contracts, agreements, and grants) for 
the conduct of research, development, and other studies in the 
fields of arms control, nonproliferation, and disarmament by 
private or public institutions or persons; and (3) to 
coordinate the research, development, and other studies 
conducted in the fields of arms control, nonproliferation, and 
disarmament by or for other Government agencies in accordance 
with procedures established under section 35 of this Act. In 
carrying out his responsibilities under this Act, the 
[Director] Secretary shall, to the maximum extent feasible, 
make full use of available facilities, Government and private. 
The authority of the [Director] Secretary with respect to 
research, development, and other studies shall be limited to 
participation in the following insofar as they relate to arms 
control, nonproliferation, and disarmament:
          (a) the detection, identification, inspection, 
        monitoring, limitation, reduction, control, and 
        elimination of armed forces and armaments, including 
        thermonuclear, nuclear, missile, conventional, 
        bacteriological, chemical, and radiological weapons;
          (b) the techniques and systems of detecting, 
        identifying, inspecting, and monitoring of tests of 
        nuclear, thermonuclear, and other weapons;
          (c) the analysis of national budgets, levels of 
        industrial production, and economic indicators to 
        determine the amounts spent by various countries for 
        armaments and of all aspects of antisatellite 
        activities;
          (d) the control, reduction, and elimination of armed 
        forces and armaments in space, in areas on and beneath 
        the earth's surface, and in underwater regions;
          (e) the structure and operation of international 
        control and other organizations useful for arms 
        control, nonproliferation, and disarmament;
          (f) the training of scientists, technicians, and 
        other personnel for manning the control systems which 
        may be created by international arms control, 
        nonproliferation, and disarmament agreements;
          (g) the reduction and elimination of the danger of 
        war resulting from accident, miscalculation, or 
        possible surprise attack, including (but not limited 
        to) improvements in the methods of communications 
        between nations;
          (h) the economic and political consequences of arms 
        control, nonproliferation, and disarmament, including 
        the problems of readjustment arising in industry and 
        the reallocation of national resources;
          (i) the arms control, nonproliferation, and 
        disarmament implications of foreign and national 
        security policies of the United States with a view to a 
        better understanding of the significance of such 
        policies for the achievement of arms control, 
        nonproliferation, and disarmament;
          (j) the national security and foreign policy 
        implications of arms control, nonproliferation, and 
        disarmament proposals with a view to a better 
        understanding of the effect of such proposals upon 
        national security and foreign policy;
          (k) methods for the maintenance of peace and security 
        during different stages of arms control, 
        nonproliferation, and disarmament;
          (l) the scientific, economic, political, legal, 
        social, psychological, military, and technological 
        factors related to the prevention of war with a view to 
        a better understanding of how the basic structure of a 
        lasting peace may be established;
          (m) such related problems as the [Director] Secretary 
        may determine to be in need of research, development, 
        or study in order to carry out the provisions of this 
        Act.

                                patents

  Sec. 32. All research within the United States contracted 
for, sponsored, cosponsored, or authorized under authority of 
this Act, shall be provided for in such manner that all 
information as to uses, products, processes, patents, and other 
developments resulting from such research developed by 
Government expenditure will (with such exceptions and 
limitations, if any, as the [Director] Secretary may find to be 
necessary in the public interest) be available to the general 
public. This subsection shall not be so construed as to deprive 
the owner of any background patent relating thereto of such 
rights as he may have thereunder.
                           policy formulation

  Sec. 33. (a) Formulation.--The [Director] Secretary [shall 
prepare for the President, the Secretary of State,] shall 
prepare for the President and the heads of such other 
Government agencies as the President may determine, 
recommendations and advice concerning United States arms 
control, nonproliferation, and disarmament policy.
  (b) Prohibition.--No action shall be taken pursuant to this 
or any other Act that would obligate the United States to 
reduce or limit the Armed Forces or armaments of the United 
States in a militarily significant manner, except pursuant to 
the treaty-making power of the President set forth in Article 
II, Section 2, Clause 2 of the Constitution or unless 
authorized by the enactment of further affirmative legislation 
by the Congress of the United States.

                         negotiation management

  Sec. 34. (a) Responsibilities.--The [Director] Secretary, 
under the direction of the President [and the Secretary of 
State], shall have primary responsibility for the preparation, 
conduct, and management of United States participation in all 
international negotiations and implementation fora in the field 
of arms control and disarmament and shall have primary 
responsibility, whenever directed by the President, for the 
preparation, conduct, and management of United States 
participation in international negotiations and implementation 
fora in the field of nonproliferation. In furtherance of these 
responsibilities, Special Representatives of the President 
appointed pursuant to section 27, shall, as directed by the 
President, serve as the United States Government 
representatives to international organizations, conferences, 
and activities relating to the field of nonproliferation, such 
as the preparations for and conduct of the review relating to 
the Treaty on the Non-Proliferation of Nuclear Weapons.
  [(b) Functions With Respect to the United States Information 
Agency.--The Director shall perform functions pursuant to 
section 2(c) of the Reorganization Plan 8 of 1953 with respect 
to providing to the United States Information Agency official 
United States positions and policy on arms control, 
nonproliferation, and disarmament matters for dissemination 
abroad.]
  (c) Authority.--The [Director] Secretary is authorized--
          (1) for the purpose of conducting negotiations 
        concerning arms control, nonproliferation, or 
        disarmament or for the purpose of exercising any other 
        authority given him by this Act--
                  (A) to consult and communicate with, or to 
                direct the consultation and communication with, 
                representatives of other nations or of 
                international organizations, and
                  (B) to communicate in the name of the 
                Secretary of State with diplomatic 
                representatives of the United States in the 
                United States or abroad;
          (2) to formulate plans and make preparations for the 
        establishment, operation, and funding of inspections 
        and control systems which may become part of the United 
        States arms control, nonproliferation, and disarmament 
        activities; and
          (3) as authorized by law, to put into effect, direct, 
        or otherwise assume United States responsibility for 
        such systems.

                              coordination

  Sec. 35. The President is authorized to establish procedures 
to (1) assure cooperation, consultation, and a continuing 
exchange of information between the [Agency] Department and the 
Department of Defense, the Atomic Energy Commission, the 
National Aeronautics and Space Administration, and other 
affected Government agencies, in all significant aspects of 
United States arms control, nonproliferation, and disarmament 
policy and related matters, including current and prospective 
policies, plans, and programs, (2) resolve differences of 
opinion between the [Director] Secretary and such other 
agencies which cannot be resolved through consultation, and (3) 
provide for presentation to the President of recommendations of 
the [Director] Secretary with respect to such differences, when 
such differences involve major matters of policy and cannot be 
resolved through consultation.

                        arms control information

  Sec. 36. In order to assist the [Director] Secretary in the 
performance of his duties with respect to arms control, 
nonproliferation, and disarmament policy and negotiations, any 
Government agency preparing any legislative or budgetary 
proposal for--
          (1) any program of research, development, testing, 
        engineering, construction, deployment, or modernization 
        with respect to nuclear armaments, nuclear implements 
        of war, military facilities or military vehicles 
        designed or intended primarily for the delivery of 
        nuclear weapons,
          (2) any program of research, development, testing, 
        engineering, construction, deployment, or modernization 
        with respect to armaments, ammunition, implements of 
        war, or military facilities, having--
                  (A) an estimated total program cost in excess 
                of $250,000,000, or
                  (B) an estimated annual program cost in 
                excess of $50,000,000, or
          (3) any other program involving technology with 
        potential military application or weapons systems which 
        such Government agency or the [Director] Secretary 
        believes may have a significant impact on arms control, 
        nonproliferation, and disarmament policy or 
        negotiations,
shall, on a continuing basis, provide the [Director] Secretary 
with full and timely access to detailed information, in 
accordance with the procedures established pursuant to section 
35 of this Act, with respect to the nature, scope, and purpose 
of such proposal.

                       verification of compliance

  Sec. 37. (a) In General.--In order to ensure that arms 
control, nonproliferation, and disarmament agreements can be 
adequately verified, the [Director] Secretary shall report to 
Congress, on a timely basis, or upon request by an appropriate 
committee of the Congress--
          (1) in the case of any arms control, 
        nonproliferation, or disarmament agreement that has 
        been concluded by the United States, the determination 
        of the [Director] Secretary as to the degree to which 
        the components of such agreement can be verified;
          (2) in the case of any arms control, 
        nonproliferation, or disarmament agreement that has 
        entered into force, any significant degradation or 
        alteration in the capacity of the United States to 
        verify compliance of the components of such agreement;
          (3) the amount and percentage of research funds 
        expended by the [Agency] Department for the purpose of 
        analyzing issues relating to arms control, 
        nonproliferation, and disarmament verification; and
          (4) the number of professional personnel assigned to 
        arms control verification on a full-time basis by each 
        Government agency.
  (b) Standard for Verification of Compliance.--In making 
determinations under paragraphs (1) and (2) of subsection (a), 
the [Director] Secretary shall assume that all measures of 
concealment not expressly prohibited could be employed and that 
standard practices could be altered so as to impede 
verification.
  (c) Rule of Construction.--Except as otherwise provided for 
by law, nothing in this section may be construed as requiring 
the disclosure of sensitive information relating to 
intelligence sources or methods or persons employed in the 
verification of compliance with arms control, nonproliferation, 
and disarmament agreements.
  (d) Participation of the [Agency] Department.--In order to 
ensure adherence of the United States to obligations or 
commitments undertaken in arms control, nonproliferation, and 
disarmament agreements, and in order for the [Director] 
Secretary to make the assessment required by section 51(a)(5), 
the [Director] Secretary, or the [Director's] Secretary's 
designee, shall participate in all interagency groups or 
organizations within the executive branch of Government that 
assess, analyze, or review United States planned or ongoing 
policies, programs, or actions that have a direct bearing on 
United States adherence to obligations undertaken in arms 
control, nonproliferation, or disarmament agreements.
                          negotiating records

  Sec. 38. (a) Preparation of Records.--The [Director] 
Secretary shall establish and maintain records for each arms 
control, nonproliferation, and disarmament agreement to which 
the United States is a party and which was under negotiation or 
in force on or after January 1, 1990, which shall include 
classified and unclassified materials such as instructions and 
guidance, position papers, reporting cables and memoranda of 
conversation, working papers, draft texts of the agreement, 
diplomatic notes, notes verbal, and other internal and external 
correspondence.
  (b) Negotiating and Implementation Records.--In particular, 
the [Director] Secretary shall establish and maintain a 
negotiating and implementation record for each such agreement, 
which shall be comprehensive and detailed, and shall document 
all communications between the parties with respect to such 
agreement. Such records shall be maintained both in hard copy 
and magnetic media.
  (c) Participation of [Agency] Department Personnel.--In order 
to implement effectively this section, the [Director] Secretary 
shall ensure that [Agency] Department personnel participate 
throughout the negotiation and implementation phases of all 
arms control, nonproliferation, and disarmament agreements.

   comprehensive compilation of arms control and disarmament studies

  Sec. 39. Pursuant to his responsibilities under section 31 of 
this Act, and in order to enhance Congressional and public 
understanding of arms control, nonproliferation, and 
disarmament issues, the [Director] Secretary shall provide to 
the Congress not later than June 30 of each year a report 
setting forth--
          (1) a comprehensive list of studies relating to arms 
        control, nonproliferation, and disarmament issues 
        concluded during the previous calendar year by 
        government agencies or for government agencies by 
        private or public institutions or persons; and
          (2) a brief description of each such study.
This report shall be unclassified, with a classified addendum 
if necessary.

                      TITLE IV--GENERAL PROVISIONS

                           [general authority

  [Sec. 41. In the performance of his functions, the Director 
is authorized to--
  [(a) utilize or employ the services, personnel, equipment, or 
facilities of any other Government agency, with the consent of 
the agency concerned, to perform such functions on behalf of 
the Agency as may appear desirable. It is the intent of this 
section that the Director rely upon the Department of State for 
general administrative services in the United States and abroad 
to the extent agreed upon between the Secretary of State and 
the Director. Any Government agency is authorized, 
notwithstanding any other provision of law, to transfer to or 
to receive from the Director, without reimbursement, supplies 
and equipment other than administrative supplies or equipment. 
Transfer or receipt of excess property shall be in accordance 
with the provisions of the Federal Property and Administrative 
Services Act of 1949, as amended;
  [(b) appoint officers and employees, including attorneys, for 
the Agency in accordance with the provisions of title 5, United 
States Code, governing appointment in the competitive service, 
and fix their compensation in accordance with chapter 51 and 
with subchapter III of chapter 53 of such title, relating to 
classification and General Schedule pay rates, except that the 
Director may, to the extent the Director determines necessary 
to the discharge of his responsibilities, appoint and fix the 
compensation of employees possessing specialized technical 
expertise without regard to the provisions of title 5, United 
States Code, governing appointments in the competitive service 
and the provisions of chapter 51 and subchapter III of chapter 
53 of such title relating to classification and General 
Schedule pay rates, if the Director ensures that--
          [(1) any employee who is appointed under this 
        exception is not paid at a rate--
                  [(A) in excess of the rate payable for 
                positions of equivalent difficulty or 
                responsibility, or
                  [(B) exceeding the maximum rate payable for 
                grade 15 of the General Schedule; and
          [(2) the number of employees appointed under this 
        exception shall not exceed 10 percent of the Agency's 
        full-time-equivalent ceiling.
  [(c) enter into agreements with other Government agencies, 
including the military departments through the Secretary of 
Defense, under which officers or employees of such agencies may 
be detailed to the Agency for the performance of service 
pursuant to this Act without prejudice to the status or 
advancement of such officers or employees within their own 
agencies;
  [(d) procure services of experts and consultants or 
organizations thereof, including stenographic reporting 
services, as authorized by section 3109 of title 5 of the 
United States Code, and to pay in connection therewith travel 
expenses of individuals, including transportation and per diem 
in lieu of subsistence while away from their homes or regular 
places of business, as authorized by section 5703 of such 
title: Provided, That no such individual shall be employed for 
more than 130 days in any fiscal year unless the President 
certifies that employment of such individual in excess of such 
number of days is necessary in the national interest: And 
provided further, That such contracts may be renewed annually;
  [(e) employ individuals of outstanding ability without 
compensation in accordance with the provisions of section 
710(b) of the Defense Production Act of 1950, as amended (50 
U.S.C. App. 2160), and regulations issued thereunder;
  [(f) establish advisory boards to advise with and make 
recommendations to the Director on United States arms control 
and disarmament policy and activities. The members of such 
boards may receive the compensation and reimbursement for 
expenses specified for consultants by section 41(d) of this 
Act;
  [(g) permit, under such terms and conditions as he may 
prescribe, any officer or employee of the Agency, in connection 
with the attendance by such officer or employee at meetings or 
in performing advisory services concerned with the functions or 
activities of the Agency, to accept payment, in cash or in 
kind, from any private agency or organization, or from any 
individual affiliated with such agency or organization, for 
travel and subsistence expenses, such payment to be retained by 
such officer or employee to cover the cost thereof or to be 
deposited to the credit of the appropriation from which the 
cost thereof is paid;
  [(i) delegate, as appropriate, to the Deputy Director or 
other officers of the Agency, any authority conferred upon the 
Director by the provisions of this Act; and
  [(j) make, promulgate, issue, rescind, and amend such rules 
and regulations as may be necessary or desirable to the 
exercise of any authority conferred upon the Director by the 
provisions of this Act.]

                       foreign service personnel

  Sec. 42. (a) The Secretary of State may authorize the 
[Director] Secretary to exercise, with respect to members of 
the Foreign Service appointed or employed for the [Agency] 
Department--
          (1) the authority available to the Secretary under 
        the Foreign Service Act of 1980, and
          (2) the authority available to the Secretary under 
        any other provisions of law pertaining specifically or 
        applicable generally to members of the Foreign Service.
  (b) Limited appointments of members of the Foreign Service 
for the [Agency] Department may be extended or renewed, 
notwithstanding section 309 of the Foreign Service Act of 1980, 
so long as the service of the individual under such appointment 
does not exceed ten consecutive years without a break in 
service of at least one year.

                       contracts or expenditures

  Sec. 43. The President may, in advance, exempt actions of the 
[Director] Secretary from the provisions of law relating to 
contracts or expenditures of Government funds whenever he 
determines that such action is essential in the interest of 
United States arms control and disarmament and security policy.

            conflict-of-interest and dual compensation laws

  Sec. 44. The members of the General Advisory Committee 
created by section 26 of this Act, and the members of the 
advisory boards, the consultants, and the individuals of 
outstanding ability employed without compensation, all of which 
are provided in section 41 of this Act, may serve as such 
without regard to the provisions of section 281, 283, 284, or 
1914 of title 18 of the United States Code, or of section 190 
of the Revised Statutes (5 U.S.C. 99), or of any other Federal 
law imposing restrictions, requirements, or penalties in 
relation to the employment of individuals, the performance of 
services, or the payment or receipt of compensation in 
connection with any claim, proceeding, or matter involving the 
United States Government, except insofar as such provisions of 
law may prohibit any such individual from receiving 
compensation from a source other than a nonprofit educational 
institution in respect of any particular matter in which the 
[Agency] Department is directly interested. Nor shall such 
service be considered as employment or holding of office or 
position bringing such individual within the provisions of 
section 13 of the Civil Service Retirement Act (5 U.S.C. 2263), 
or any other Federal law limiting the reemployment of retired 
officers or employees or governing the simultaneous receipt of 
compensation and retired pay or annuities, subject to section 
201 of the Dual Compensation Act.
                         security requirements

  Sec. 45. [(a) The Director shall establish such security and 
loyalty requirements, restrictions, and safeguards as he deems 
necessary in the interest of the national security and to carry 
out the provisions of this Act. Except as provided in 
subsection (d), the Director shall arrange with the Civil 
Service Commission for the conduct of full-field background 
security and loyalty investigations of all the Agency's 
officers, employees, consultants, persons detailed from other 
Government agencies, members of its General Advisory Committee, 
advisory boards, contractors and subcontractors, and their 
officers and employees, actual or prospective. In the case of 
persons detailed from other Government agencies or employed 
directly from other Government agencies, the Director may 
accept the results of full-field background security and 
loyalty investigations conducted by such agencies as the basis 
for the determination required by this subsection that the 
person is not a security risk or of doubtful loyalty. In the 
event the investigation discloses information indicating that 
the person investigated may be or may become a security risk, 
or may be of doubtful loyalty, the report of the investigation 
shall be turned over to the Federal Bureau of Investigation for 
a full-field investigation. The final results of all such 
investigations shall be turned over to the Director for final 
determination. Except as provided in subsection (d), no person 
shall be permitted to enter on duty as such an officer, 
employee, consultant, or member of advisory committee or board, 
or pursuant to any such detail, and no contractor or 
subcontractor, or officer or employee thereof shall be 
permitted to have access to any classified information, until 
he shall have been investigated in accordance with this 
subsection and the report of such investigations made to the 
Director, and the Director shall have determined that such 
person is not a security risk or of doubtful loyalty. Standards 
applicable with respect to the security clearance of persons 
within any category referred to in this subsection shall not be 
less stringent, and the investigation of such persons for such 
purposes shall not be less intensive or complete, than in the 
case of such clearance of persons in a corresponding category 
under the security procedures of the Government agency or 
agencies having the highest security restrictions with respect 
to persons in such category.
  [(b) In the case of contractors or subcontractors and their 
officers or employees, actual or prospective, the Director may 
accept, in lieu of the investigation prescribed in subsection 
(a) hereof, a report of investigation conducted by a Government 
agency, other than the Civil Service Commission or the Federal 
Bureau of Investigation, when it is determined by the Director 
that the completed investigation meets the standards 
established in subsection (a) hereof: Provided, That security 
clearance had been granted to the individual concerned by 
another Government agency based upon such investigation and 
report. The Director may also grant access for information 
classified no higher than ``confidential'' to contractors or 
subcontractors and their officers and employees, actual or 
prospective, on the basis of reports on less than full-field 
investigations: Provided, That such investigations shall each 
include a current national agency check. Notwithstanding the 
foregoing and the provisions of subsection (a), the Director 
may also grant access to classified information to contractors 
or subcontractors and their officers and employees, actual or 
prospective, on the basis of a security clearance granted by 
the Department of Defense, or any agency thereof, to the 
individual concerned; except that any access to Restricted Data 
shall be subject to the provisions of subsection (c).]
  (c) The Atomic Energy Commission may authorize any of its 
employees, or employees of any contractor, prospective 
contractor, licensee, or prospective licensee of the Atomic 
Energy Commission, or any other person authorized to have 
access to Restricted Data by the Atomic Energy Commission under 
section 2165 of title 42, to permit the [Director] Secretary or 
any officer, employee, consultant, person detailed from other 
Government agencies, member of the General Advisory Committee 
or of an advisory board established pursuant to section 41(f), 
contractor, subcontractor, prospective contractor, or 
prospective subcontractor, or officer or employee of such 
contractor, subcontractor, prospective contractor, or 
prospective subcontractor, to have access to Restricted Data 
which is required in the performance of his duties and so 
certified by the [Director] Secretary, but only if (1) the 
Atomic Energy Commission has determined, in accordance with the 
established personnel security procedures and standards of the 
Commission, that permitting such individual to have access to 
such Restricted Data will not endanger the common defense and 
security, and (2) the Atomic Energy Commission finds that the 
established personnel and other security procedures and 
standards of the [Agency] Department are adequate and in 
reasonable conformity to the standards established by the 
Atomic Energy Commission under section 2165 of title 42, 
including those for interim clearance in subsection (b) 
thereof. Any individual granted access to such Restricted Data 
pursuant to this subsection may exchange such data with any 
individual who (A) is an officer or employee of the Department 
of Defense, or any department or agency thereof, or a member of 
the Armed Forces, or an officer or employee of the National 
Aeronautics and Space Administration, or a contractor or 
subcontractor of any such department, agency, or armed force, 
or an officer or employee of any such contractor or 
subcontractor, and (B) has been authorized to have access to 
Restricted Data under the provisions of sections 2163 or 2455 
of title 42.
  [(d) The investigations and determination required under 
subsection (a) may be waived by the Director in the case of any 
consultant who will not be permitted to have access to 
classified information if the Director determines and certifies 
in writing that such waiver is in the best interests of the 
United States.]

                       comptroller general audit

  Sec. 46. No moneys appropriated for the purposes of this Act 
shall be available for payment under any contract with the 
[Director] Secretary, negotiated without advertising, except 
contracts with any foreign government, international 
organization or any agency thereof, unless such contract 
includes a clause to the effect that the Comptroller General of 
the United States or any of his duly authorized representatives 
shall, until the expiration of three years after final payment, 
have access to and the right to examine any directly pertinent 
books, documents, papers, and records of the contractor or any 
of his subcontractors engaged in the performance of, and 
involving transactions related to such contracts or 
subcontracts: Provided, however, That no moneys so appropriated 
shall be available for payment under such contract which 
includes any provisions precluding an audit by the General 
Accounting Office of any transactions under such contract: And 
provided further, That nothing in this section shall preclude 
the earlier disposal of contractor and subcontractor records in 
accordance with records disposal schedules agreed upon between 
the [Director] Secretary and the General Accounting Office.

      transfer of activities and facilities to [agency] department

  Sec. 47. (a) The United States Disarmament Administration, 
together with its records, property, personnel, and funds, is 
hereby transferred to the [Agency] Department. The 
appropriations and unexpended balances of appropriations 
transferred pursuant to this subsection shall be available for 
expenditure for any and all objects of expenditure authorized 
by this Act, without regard to the requirements of 
apportionment under section 665 of title 31.
  (b) The President, by Executive order, may transfer to the 
[Director] Secretary any activities or facilities of any 
Government agency which relate primarily to arms control and 
disarmament. In connection with any such transfer, the 
President may under this section or other applicable authority, 
provide for appropriate transfers of records, property, 
civilian personnel, and funds. No transfer shall be made under 
this subsection until (1) a full and complete report concerning 
the nature and effect of such proposed transfer has been 
transmitted by the President to the Congress, and (2) the first 
period of sixty calendar days of regular session of the 
Congress following the date of receipt of such report by the 
Congress has expired without adoption by either House of the 
Congress of a resolution stating that such House does not favor 
such transfer. The procedures prescribed in title II of the 
Reorganization Act of 1949 shall apply to any such resolution.

                             [use of funds

  [Sec. 48. Appropriations made to the Director for the 
purposes of this Act, and transfers of funds to him by other 
Government agencies for such purposes, shall be available to 
him to exercise any authority granted him by this Act, 
including, without limitation, expenses of printing and binding 
without regard to the provisions of section 11 of the Act of 
March 1, 1919 (44 U.S.C. 111); purchase or hire of one 
passenger motor vehicle for the official use of the Director; 
entertainment and official courtesies to the extent authorized 
by appropriation; expenditures for training and study; 
expenditures in connection with participation in international 
conferences for the purposes of this Act; and expenses in 
connection with travel of personnel outside the United States, 
including transportation expenses of dependents, household 
goods, and personal effects (including any such travel or 
transportation any part of which begins in one fiscal year 
pursuant to travel orders issued in that fiscal year, but which 
is completed after the end of that fiscal year), and expenses 
authorized by the Foreign Service Act of 1980, not otherwise 
provided for.]
  specialists fluent in russian or other languages of the independent 
                   states of the former soviet union
  Sec. 49. The [Director] Secretary is authorized to create up 
to eight additional permanent personnel positions at both 
junior and more senior levels for specialists in the foreign 
and military policies of the independent states of the former 
Union, arms control, or strategic affairs of the former Soviet 
Union, who also demonstrate fluency in the Russian language or 
another language of the independent states of the former Soviet 
Union.
                        [acda inspector general

  [Sec. 50. (a) Establishment and Duties.--There shall be an 
Office of the Inspector General at the Agency headed by the 
Inspector General of the Agency who shall have the duties, 
responsibilities, and authorities specified in the Inspector 
General Act of 1978.
  [(b) Duality of Appointment.--An individual appointed to the 
position of Inspector General of the Department of State shall, 
by virtue of such appointment, also hold the position of 
Inspector General of the Agency.
  [(c) Utilization of Staff.--The Inspector General of the 
Agency shall utilize personnel of the Office of the Inspector 
General of the Department of State in performing the duties of 
the Inspector General of the Agency, and shall not appoint any 
individuals to positions within the Agency.
  [(d) References.--For purposes of this section, references in 
the Inspector General Act of 1978 to the establishment 
involved, to the head of the establishment, and to an Inspector 
General shall be deemed to be references to the Agency, the 
Director of the Agency, and Inspector General of the Agency, 
respectively, except to the extent inconsistent with this 
section.]
                       annual report to congress
  Sec. 51. (a) In General.--Not later than January 31 of each 
year, the President shall submit to the Speaker of the House of 
Representatives and to the chairman of the Committee on Foreign 
Relations of the Senate a report prepared by the [Director] 
Secretary, in consultation with [the Secretary of State,] the 
Secretary of Defense, the Secretary of Energy, the Chairman of 
the Joint Chiefs of Staff, and the Director of Central 
Intelligence, on the status of United States policy and actions 
with respect to arms control, nonproliferation, and 
disarmament. Such report shall include--
          (1)  * * *
          * * * * * * *
 public annual report on world military expenditures and arms transfers
  Sec. 52. Not later than December 31 of each year, the 
[Director] Secretary shall publish an unclassified report on 
world military expenditures and arms transfers. Such report 
shall provide detailed, comprehensive, and statistical 
information regarding military expenditures, arms transfers, 
armed forces, and related economic data for each country of the 
world. In addition, such report shall include pertinent in-
depth analyses as well as highlights with respect to arms 
transfers and proliferation trends and initiatives affecting 
such developments.
            [requirement for authorization of appropriations
  [Sec. 53. (a) Limitation on Obligation and Expenditure of 
Funds.--Notwithstanding any other provision of law, for the 
fiscal year 1994 and for each subsequent year, any funds 
appropriated for the Agency shall not be available for 
obligation or expenditure--
          [(1) unless such funds are appropriated pursuant to 
        an authorization of appropriations; or
          [(2) in excess of the authorized level of 
        appropriations.
  [(b) Subsequent Authorization.--The limitation under 
subsection (a) shall not apply to the extent that an 
authorization of appropriations is enacted after such funds are 
appropriated.
  [(c) Application.--The provisions of this section--
          [(1) may not be superseded, except by a provision of 
        law which specifically repeals, modifies, or supersedes 
        the provisions of this section; and
          [(2) shall not apply to, or affect in any manner, 
        permanent appropriations, trust funds, and other 
        similar accounts which are authorized by law and 
        administered by the Agency.]
          * * * * * * *

                TITLE V--ON-SITE INSPECTION ACTIVITIES 

                                findings

  Sec. 61. The Congress finds that--
          (1) under this Act, the [United States Arms Control 
        and Disarmament Agency] Department of State is charged 
        with the ``formulation and implementation of United 
        States arms control and disarmament policy in a manner 
        which will promote the national security'';
          (2) as defined in this Act, the terms ``arms 
        control'' and ``disarmament'' means ``the 
        identification, verification, inspection, limitation, 
        control, reduction, or elimination, of armed forces and 
        armaments of all kinds under international agreement to 
        establish an effective system of international 
        control'';
          (3) the On-Site Inspection Agency was established in 
        1988 pursuant to the INF Treaty to implement, on behalf 
        of the United States, the inspection provisions of the 
        INF Treaty;
          (4) on-site inspection activities under the INF 
        Treaty include--
                  (A) inspections in Russia, Ukraine, 
                Kazakhstan, Belarus, Turkmenistan, Uzbekistan, 
                the Czech Republic, and Germany,
                  (B) escort duties for teams visiting the 
                United States and the Basing Countries,
                  (C) establishment and operation of the Portal 
                Monitoring Facility in Russia, and
                  (D) support for the inspectors at the Portal 
                Monitoring Facility in Utah;
          (5) the On-Site Inspection Agency has additional 
        responsibilities to those specified in paragraph (4), 
        including the monitoring of nuclear tests pursuant to 
        the Threshold Test Ban Treaty and the Peaceful Nuclear 
        Explosions Treaty and the monitoring of the inspection 
        provisions of such additional arms control agreements 
        as the President may direct;
          (6) the personnel of the On-Site Inspection Agency 
        include civilian technical experts, civilian support 
        personnel, and members of the Armed Forces; and
          (7) the senior officials of the On-Site Inspection 
        Agency include representatives from [the United States 
        Arms Control and Disarmament Agency and] the Department 
        of State.

  policy coordination concerning implementation of on-site inspection 
                               provisions

  Sec. 62. (a) Interagency Coordination.--OSIA should receive 
policy guidance which is formulated through an interagency 
mechanism established by the President.
  (b) Role of the Secretary of Defense.--The Secretary of 
Defense should provide to OSIA appropriate policy guidance 
formulated through the interagency mechanism described in 
subsection (a) and operational direction, consistent with 
section 113(b) of title 10, United States Code.
  (c) Role of the [Director] Secretary.--The [Director] 
Secretary should provide to the interagency mechanism described 
in subsection (a) appropriate recommendations for policy 
guidance to OSIA consistent with sections 2(d), 22, and 34(c) 
of this Act.

        authorizations of appropriations for on-site inspection

  Sec. 63. There are authorized to be appropriated $49,830,000 
for fiscal year 1990 and $48,831,000 for fiscal year 1991 for 
the expenses of the On-Site Inspection Agency in carrying out 
on-site inspection activities pursuant to the INF Treaty.

SEC. 64. IMPROVING CONGRESSIONAL OVERSIGHT OF ON-SITE INSPECTION 
                    ACTIVITIES.

  (a) Report From the President.--Concurrent with the 
submission to the Congress of the request for authorization of 
appropriations for OSIA for fiscal year 1993, the President 
shall submit a report on OSIA to the Committee on Foreign 
Affairs of the House of Representatives, the Committee on 
Foreign Relations of the Senate, and the Committees on Armed 
Services of the House of Representatives and Senate. The report 
shall include a review of--
          (1) the history of OSIA, including how, when, and 
        under what auspices it was established, including the 
        applicable texts of the relevant executive orders;
          (2) the missions and tasks assigned to OSIA to date;
          (3) any additional missions and tasks likely to be 
        assigned to OSIA during fiscal year 1993;
          (4) the budgetary history of OSIA; and
          (5) the extent to which OSIA plays a role in arms 
        control policy formulation and operational 
        implementation.
  (b) Review of Certain Reprogramming Notifications.--Any 
notification submitted to the Congress with respect to a 
proposed transfer, reprogramming, or reallocation of funds from 
or within the budget of OSIA shall also be submitted to the 
Committee on Foreign Affairs of the House of Representatives 
and the Committee on Foreign Relations of the Senate, and shall 
be subject to review by those committees.

                              definitions

  Sec. 65. As used in this title--
          (1) the term ``INF Treaty'' means the Treaty Between 
        the United States and the Union of Soviet Socialist 
        Republics on the Elimination of Their Intermediate-
        Range and Shorter-Range Missiles (signed at Washington, 
        December 8, 1987);
          (2) the term ``OSIA'' means the On-Site Inspection 
        Agency established by the President, or such other 
        agency as may be designated by the President to carry 
        out the on-site inspection provisions of the INF 
        Treaty;
          (3) the term ``Peaceful Nuclear Explosions Treaty'' 
        means the Treaty Between the United States of America 
        and the Union of Soviet Socialist Republics on 
        Underground Nuclear Explosions for Peaceful Purposes 
        (signed at Washington and Moscow, May 28, 1976); and
          (4) the term ``Threshold Test Ban Treaty'' means the 
        Treaty Between the United States of America and the 
        Union of Soviet Socialist Republics on the Limitation 
        of Underground Nuclear Weapons Tests (signed at Moscow, 
        July 3, 1974).
                              ----------                              

                        ARMS EXPORT CONTROL ACT

          * * * * * * *

    CHAPTER 1--FOREIGN AND NATIONAL SECURITY POLICY OBJECTIVES AND 
                               RESTRAINTS

          * * * * * * *
  Sec. 3. Eligibility.--(a)  * * *
  (b) The consent of the President under paragraph (2) of 
subsection (a) or under paragraph (1) of section 505(a) of the 
Foreign Assistance Act of 1961 (as it relates to subparagraph 
(B) of such paragraph) shall not be required for the transfer 
by a foreign country or international organization of defense 
articles sold by the United States under this Act if--
          (1) such articles constitute components incorporated 
        into foreign defense articles;
          (2) the recipient is the government of a member 
        country of the North Atlantic Treaty Organization, the 
        Government of Australia, the Government of Japan, or 
        the Government of New Zealand;
          (3) the United States-origin components are not--
                  (A) significant military equipment (as 
                defined in section 47(9));
                  (B) defense articles for which notification 
                to Congress is required under section 36(b); 
                and
                  (C) identified by regulation as Missile 
                Technology Control Regime items; and
          (4) the foreign country or international organization 
        provides notification of the transfer of the defense 
        articles to the United States Government not later than 
        30 days after the date of such transfer.
          * * * * * * *
  (d)(1) The President may not give his consent under paragraph 
(2) of subsection (a) or under the third sentence of such 
subsection, or under section 505(a)(1) or 505(a)(4) of the 
Foreign Assistance Act of 1961, to a transfer of any major 
defense equipment valued (in terms of its original acquisition 
cost) at [$14,000,000] $25,000,000 or more, or any defense 
article or related training or other defense service valued (in 
terms of its original acquisition cost) at [$50,000,000] 
$75,000,000 or more, unless the President submits to the 
Speaker of the House of Representatives and the Committee on 
Foreign Relations of the Senate a written certification with 
respect to such proposed transfer containing--
          (A) the name of the country or international 
        organization proposing to make such transfer,
          (B) a description of the article or service proposed 
        to be transferred, including its acquisition cost,
          (C) the name of the proposed recipient of such 
        article or service,
          (D) the reasons for such proposed transfer, and
          (E) the date on which such transfer is proposed to be 
        made.
Any certification submitted to Congress pursuant to this 
paragraph shall be unclassified, except that information 
regarding the dollar value and number of articles or services 
proposed to be transferred may be classified if public 
disclosure thereof would be clearly detrimental to the security 
of the United States.
  (2)(A) Except as provided in subparagraph (B), unless the 
President states in the certification submitted pursuant to 
paragraph (1) of this subsection that an emergency exists which 
requires that consent to the proposed transfer become effective 
immediately in the national security interests of the United 
States, such consent shall not become effective until 30 
calendar days after the date of such submission and such 
consent shall become effective then only if the Congress does 
not enact, within such 30-day period, a joint resolution[, as 
provided for in sections 36(b)(2) and 36(b)(3) of this Act] 
prohibiting the proposed transfer.
  (B) In the case of a proposed transfer to the North Atlantic 
Treaty Organization, or any member country of such 
Organization, Japan, Australia, or New Zealand, unless the 
President states in the certification submitted pursuant to 
paragraph (1) of this subsection that an emergency exists which 
requires that consent to the proposed transfer become effective 
immediately in the national security interests of the United 
States, such consent shall not become effective until fifteen 
calendar days after the date of such submission and such 
consent shall become effective then only if the Congress does 
not enact, within such fifteen-day period, a [law] joint 
resolution prohibiting the proposed transfer.
  (C) If the President states in his certification under 
subparagraph (A) or (B) that an emergency exists which requires 
that consent to the proposed transfer become effective 
immediately in the national security interests of the United 
States, thus waiving the requirements of that subparagraph, the 
President shall set forth in the certification a detailed 
justification for his determination, including a description of 
the emergency circumstances which necessitate immediate consent 
to the transfer and a discussion of the national security 
interests involved.
  (D)(i) Any joint resolution under this paragraph shall be 
considered in the Senate in accordance with the provisions of 
section 601(b) of the International Security Assistance and 
Arms Export Control Act of 1976.
  (ii) For the purpose of expediting the consideration and 
enactment of joint resolutions under this paragraph, a motion 
to proceed to the consideration of any such joint resolution 
after it has been reported by the appropriate committee shall 
be treated as highly privileged in the House of 
Representatives.
  (3)(A) The President may not give his consent to the transfer 
of any major defense equipment valued (in terms of its original 
acquisition cost) at [$14,000,000] $25,000,000 or more, or of 
any defense article or defense service valued (in terms of its 
original acquisition cost) at [$50,000,000] $75,000,000 or 
more, the export of which has been licensed or approved under 
section 38 of this Act, unless [at least 30 calendar days] 
before giving such consent the President submits to the Speaker 
of the House of Representatives and the Chairman of the 
Committee on Foreign Relations of the Senate a [report] 
certification containing the information specified in 
subparagraphs (A) through (E) of paragraph (1). [Such consent 
shall become effective then only if the Congress does not 
enact, within a 30-day period, a joint resolution, as provided 
for in sections 36(c)(2) and 36(c)(3) of this Act prohibiting 
the proposed transfer.] Such certification shall be submitted--
          (i) at least 15 calendar days before such consent is 
        given in the case of a transfer to a country which is a 
        member of the North Atlantic Treaty Organization or 
        Australia, Japan, or New Zealand; and
          (ii) at least 30 calendar days before such consent is 
        given in the case of a transfer to any other country,
unless the President states in his certification that an 
emergency exists which requires that consent to the proposed 
transfer become effective immediately in the national security 
interests of the United States. If the President states in his 
certification that such an emergency exists (thus waiving the 
requirements of clause (i) or (ii), as the case may be, and of 
subparagraph (B)) the President shall set forth in the 
certification a detailed justification for his determination, 
including a description of the emergency circumstances which 
necessitate that consent to the proposed transfer become 
effective immediately and a discussion of the national security 
interests involved.
  (B) Consent to a transfer subject to subparagraph (A) shall 
become effective after the end of the 15-day or 30-day period 
specified in subparagraph (A)(i) or (ii), as the case may be, 
only if the Congress does not enact, within that period, a 
joint resolution prohibiting the proposed transfer.
  (C)(i) Any joint resolution under this paragraph shall be 
considered in the Senate in accordance with the provisions of 
section 601(b) of the International Security Assistance and 
Arms Export Control Act of 1976.
  (ii) For the purpose of expediting the consideration and 
enactment of joint resolutions under this paragraph, a motion 
to proceed to the consideration of any such joint resolution 
after it has been reported by the appropriate committee shall 
be treated as highly privileged in the House of 
Representatives.
          * * * * * * *
            CHAPTER 2--FOREIGN MILITARY SALES AUTHORIZATIONS

  Sec. 21. Sales From Stocks.--(a)  * * *
          * * * * * * *
  (g) The President may enter into North Atlantic Treaty 
Organization standardization agreements in carrying out section 
814 of the Act of October 7, 1975 (Public Law 94-106), and may 
enter into [similar agreements with Japan, Australia, and New 
Zealand, and with other countries] similar agreements with 
countries which are major non-NATO allies, for the cooperative 
furnishing of training on a bilateral or multilateral basis, if 
the financial principles of such agreements are based on 
reciprocity. Such agreements shall include reimbursement for 
all direct costs but may exclude reimbursement for indirect 
costs, administrative surcharges, and costs of billeting of 
trainees (except to the extent that members of the United 
States Armed Forces occupying comparable accommodations are 
charged for such accommodations by the United States). Each 
such agreement shall be transmitted promptly to the Speaker of 
the House of Representatives and the Committees on 
Appropriations, Armed Services, and Foreign Relations of the 
Senate. [As used in this subsection, the term ``major non-NATO 
allies'' means those countries designated as major non-NATO 
allies for purposes of section 2350a(i)(3) of title 10, United 
States Code.]
  (h)(1) The President is authorized to provide (without 
charge) quality assurance, inspection, contract administration 
services, and contract audit defense services under this 
section--
          (A) in connection with the placement or 
        administration of any contract or subcontract for 
        defense articles, defense services, or design and 
        construction services entered into after the date of 
        enactment of this subsection by, or under this Act on 
        behalf of, a foreign government which is a member of 
        the North Atlantic Treaty Organization or the 
        Government of Israel, if such government provides such 
        services in accordance with an agreement on a 
        reciprocal basis, without charge, to the United States 
        Government; or
          * * * * * * *
  (2) In carrying out the objectives of this section, the 
President is authorized to provide cataloging data and 
cataloging services, without charge, to the North Atlantic 
Treaty Organization [or to any member government of that 
Organization if that Organization or member government], any 
member government of that Organization, or the Government of 
Israel, if the Organization, member government, or Government 
of Israel, as the case may be, provides such data and services 
in accordance with an agreement on a reciprocal basis, without 
charge, to the United States Government.
          * * * * * * *
  (k) Before entering into the sale under this Act of defense 
articles that are excess to the stocks of the Department of 
Defense, [the President shall first consider the effects of the 
sale of the articles on the national technology and industrial 
base, particularly the extent, if any, to which the sale 
reduces the opportunities of entities in the national 
technology and industrial base to sell new equipment to the 
country or countries to which the excess defense articles are 
sold.] the President shall determine that the sale of such 
articles will not have an adverse impact on the national 
technology and industrial base, and particularly, will not 
reduce the opportunities of entities in the national technology 
and industrial base to sell new or used equipment to the 
countries to which such articles are transferred.
  Sec. 22. Procurement for Cash Sales.--(a)  * * *
          * * * * * * *
  (d) Competitive Pricing.--Procurement contracts made in 
implementation of sales under this section for defense articles 
and defense services wholly paid from funds made available on a 
nonrepayable basis shall be priced on the same costing basis 
with regard to profit, overhead, independent research and 
development, bid and proposal, and other costing elements, as 
is applicable to procurements of like items purchased by the 
Department of Defense for its own use.
  Sec. 23. Credit Sales.--(a)  * * *
          * * * * * * *
  (f) Notwithstanding any other provision of this section, the 
President shall not require repayment of any assistance 
provided on a grant basis under this section to a foreign 
country or international organization.
  (g) Funds made available to carry out this section for a 
fiscal year may be made available to a foreign country or 
international organization for the purpose of financing the 
procurement of defense articles, defense services, and design 
and construction services that are not sold by the United 
States Government under this Act only--
          (1) with respect to a country that is a member 
        country of the North Atlantic Organization, a major 
        non-NATO ally, or Jordan for which assistance was 
        justified under this section in the annual 
        congressional presentation documents under section 634 
        of the Foreign Assistance Act of 1961 for that fiscal 
        year; and
          (2) if such country or international organization 
        enters into an agreement with the United States 
        Government that specifies the terms and conditions 
        under which such procurements shall be financed with 
        such funds.
  (h) For each fiscal year, the Secretary of Defense, as 
requested by the Director of the Defense Security Assistance 
Agency, shall conduct audits on a nonreimbursable basis of 
private firms that have entered into contracts with foreign 
governments under which defense articles, defense services, or 
design and construction services are to be procured by such 
firms for such governments from financing under this section 
for such fiscal year.
  (i) Funds made available to carry out this section may not be 
used to facilitate the transport of aircraft to commercial arms 
sales shows.
  (j)(1) For each country and international organization that 
has been approved for cash flow financing under this section, 
any letter of offer and acceptance or other purchase agreement, 
or any amendment thereto, for a procurement of defense 
articles, defense services, or design and construction services 
in excess of $100,000,000 that is to be financed in whole or in 
part with funds made available under this Act or the Foreign 
Assistance Act of 1961 shall be submitted to the congressional 
committees specified in section 634A(a) of the Foreign 
Assistance Act of 1961 in accordance with the procedures 
applicable to reprogramming notifications under that section.
  (2) For purposes of this subsection, the term ``cash flow 
financing'' has the meaning given such term in the second 
subsection (d) of section 25.
  (k) Of the amounts made available for a fiscal year to carry 
out this section, not more than $100,000,000 for such fiscal 
year may be made available for countries other than Israel and 
Egypt for the purpose of financing the procurement of defense 
articles, defense services, and design and construction 
services that are not sold by the United States Government 
under this Act.
  (l) Notwithstanding any other provision of law, funds made 
available to carry out this section may be used for demining 
activities, and may include activities implemented through 
nongovernmental and international organizations.
          * * * * * * *
  [Sec. 28. Reports on Price and Availability Estimates.--(a) 
The President shall transmit to the Speaker of the House of 
Representatives and the chairman of the Committee on Foreign 
Relations of the Senate, within fifteen days after the end of 
each calendar quarter, a report listing each price and 
availability estimate provided by the United States Government 
during such quarter to a foreign country with respect to a 
possible sale under this Act of major defense equipment for 
$7,000,000 or more, of any other defense articles or defense 
services for $25,000,000 or more, or of any Air-to-Ground or 
Ground-to-Air missiles, or associated launchers (without regard 
to the amount of the possible sale). Each such listing shall 
specify the name of the country to which the estimate was 
provided, the defense articles or services involved, the 
quantity involved, and the price estimate provided.
  [(b) Such reports shall also list each request received by 
the United States Government from a foreign country, during the 
quarter in question, for the issuance of a letter of offer to 
sell defense articles or defense services if (1) the proposed 
sale has not been the subject of a listing pursuant to 
subsection (a) of this section, and (2) the request involves a 
proposed sale of major defense equipment for $7,000,000 or 
more, of any other defense articles or defense services for 
$25,000,000 or more, or of any Air-to-Ground or Ground-to-Air 
missiles, or associated launchers (without regard to the amount 
of the possible sale). Each such listing shall include the name 
of the country making the request, the date of the request, the 
defense articles or services involved, the quantity involved, 
and the price and availability terms requested.]

                  CHAPTER 3--MILITARY EXPORT CONTROLS

  Sec. 31. Authorization and Aggregate Ceiling on Foreign 
Military Sales Credits.--(a)  * * *
          * * * * * * *
  [(c) For fiscal year 1986 and fiscal year 1987, the principal 
amount of credits provided under section 23 at market rates of 
interest with respect to Greece, the Republic of Korea, the 
Philippines, Portugal, Spain, Thailand, and Turkey shall (if 
and to the extent each country so desires) be repaid in not 
more than twenty years, following a grace period of ten years 
on repayment of principal.
  [(d) The aggregate acquisition cost to the United States of 
excess defense articles ordered by the President in any fiscal 
year after fiscal year 1976 for delivery to foreign countries 
or international organizations under the authority of chapter 2 
of part II of the Foreign Assistance Act of 1961 or pursuant to 
sales under this Act may not exceed $250,000,000 (exclusive of 
ships and their onboard stores and supplies transferred in 
accordance with law, and of any defense articles with respect 
to which the President submits a certification under section 
36(b) of this Act).]
  (c) Loans available under section 23 shall be provided at 
rates of interest that are not less than the current average 
market yield on outstanding marketable obligations of the 
United States of comparable maturities.
          * * * * * * *
  Sec. 36. Reports on Commercial and Governmental Military 
Exports; Congressional Action.--(a)  * * *
  (b)(1) In the case of any letter of offer to sell any defense 
articles or services under this Act for [$50,000,000] 
$75,000,000 or more, any design and construction services for 
[$200,000,000] $300,000,000 or more, or any major defense 
equipment for [$14,000,000] $25,000,000 or more, before such 
letter of offer is issued, the President shall submit to the 
Speaker of the House of Representatives and to the chairman of 
the Committee on Foreign Relations of the Senate a numbered 
certification with respect to such offer to sell containing the 
information specified in clauses (i) through (iv) of subsection 
(a), or (in the case of a sale of design and construction 
services) the information specified in clauses (A) through (D) 
of paragraph (9) of subsection (a), and a description, 
containing the information specified in paragraph (8) of 
subsection (a), of any contribution, gift, commission, or fee 
paid or offered or agreed to be paid in order to solicit, 
promote, or otherwise to secure such letter of offer. Such 
numbered certifications shall also contain an item, classified 
if necessary, identifying the sensitivity of technology 
contained in the defense articles, defense services, or design 
and construction services proposed to be sold, and a detailed 
justification of the reasons necessitating the sale of such 
articles or services in view of the sensitivity of such 
technology. In a case in which such articles or services listed 
on the Missile Technology Control Regime Annex are intended to 
support the design, development, or production of a Category I 
space launch vehicle system (as defined in section 74), such 
report shall include a description of the proposed export and 
rationale for approving such export, including the consistency 
of such export with United States missile nonproliferation 
policy. Each such numbered certification shall contain an item 
indicating whether any offset agreement is proposed to be 
entered into in connection with such letter of offer to sell 
(if known on the date of transmittal of such certification). In 
addition, the President shall, upon the request of such 
committee or the Committee on Foreign Affairs of the House of 
Representatives, transmit promptly to both such committees a 
statement setting forth, to the extent specified in such 
request--
          (A)  * * *
          * * * * * * *
          (D) an evaluation, prepared by the [Director of the 
        Arms Control and Disarmament Agency in consultation 
        with the Secretary of State and] Secretary of State in 
        consultation with the Secretary of Defense, of the 
        manner, if any, in which the proposed sale would--
                  (i)  * * *
          * * * * * * *
  [(4) In addition to the other information required to be 
contained in a certification submitted to the Congress under 
this subsection, each such certification shall cite any 
quarterly report submitted pursuant to section 28 of this Act 
which listed a price and availability estimate, or a request 
for the issuance of a letter of offer, which was a basis for 
the proposed sale which is the subject of such certification.]
  (5)(A)  * * *
          * * * * * * *
  (C) If the enhancement or upgrade in the sensitivity of 
technology or the capability of major defense equipment, 
defense articles, defense services, or design and construction 
services described in a numbered certification submitted under 
this subsection costs [$14,000,000] $25,000,000 or more in the 
case of any major defense equipment, [$50,000,000] $75,000,000 
or more in the case of defense articles or defense services, or 
[$200,000,000] $300,000,000 or more in the case of design or 
construction services, then the President shall submit to the 
Speaker of the House of Representatives and the chairman of the 
Committee on Foreign Relations of the Senate a new numbered 
certification which relates to such enhancement or upgrade and 
which shall be considered for purposes of this subsection as if 
it were a separate letter of offer to sell defense equipment, 
articles, or services, subject to all of the requirements, 
restrictions, and conditions set forth in this subsection. For 
purposes of this subparagraph, references in this subsection to 
sales shall be deemed to be references to enhancements or 
upgrades in the sensitivity of technology or the capability of 
major defense equipment, articles, or services, as the case may 
be.
          * * * * * * *
  (c)(1) In the case of an application by a person (other than 
with regard to a sale under section 21 or section 22 of this 
Act) for a license for the export of any major defense 
equipment sold under a contract in the amount of [$14,000,000] 
$25,000,000 or more or of defense articles or defense services 
sold under a contract in the amount of [$50,000,000] 
$75,000,000 or more, before issuing such license the President 
shall transmit to the Speaker of the House of Representatives 
and to the chairman of the Committee on Foreign Relations of 
the Senate an unclassified numbered certification with respect 
to such application specifying (A) the foreign country or 
international organization to which such export will be made, 
(B) the dollar amount of the items to be exported, and (C) a 
description of the items to be exported. Each such numbered 
certification shall also contain an item indicating whether any 
offset agreement is proposed to be entered into in connection 
with such export (if known on the date of transmittal of such 
certification). In addition, the President shall, upon the 
request of such committee or the Committee on Foreign Affairs 
of the House of Representatives, transmit promptly to both such 
committees a statement setting forth, to the extent specified 
in such request a description of the capabilities of the items 
to be exported, an estimate of the total number of United 
States personnel expected to be needed in the foreign country 
concerned in connection with the items to be exported and an 
analysis of the arms control impact pertinent to such 
application, prepared in consultation with the Secretary of 
Defense. In a case in which such articles or services listed on 
the Missile Technology Control Regime Annex are intended to 
support the design, development, or production of a Category I 
space launch vehicle system (as defined in section 74), such 
report shall include a description of the proposed export and 
rationale for approving such export, including the consistency 
of such export with United States missile nonproliferation 
policy. A certification transmitted pursuant to this subsection 
shall be unclassified, except that the information specified in 
clause (B) and the details of the description specified in 
clause (C) may be classified if the public disclosure thereof 
would be clearly detrimental to the security of the United 
States.
  (2) Unless the President states in his certification that an 
emergency exists which requires the proposed export in the 
national security interests of the United States, a license for 
export described in paragraph (1)--
          [(A) shall not be issued until at least 30 calendar 
        days after the Congress receives such certification; 
        and
          [(B) shall not be issued then if the Congress, within 
        such 30-day period, enacts a joint resolution 
        prohibiting the proposed export, except that this 
        subparagraph does not apply with respect to a license 
        issued for an export to the North Atlantic Treaty 
        Organization, any member country of that Organization, 
        Japan, Australia, or New Zealand.]
          (A) in the case of a license for an export to the 
        North Atlantic Treaty Organization, any member country 
        of that Organization or Australia, Japan, or New 
        Zealand, shall not be issued until at least 15 calendar 
        days after the Congress receives such certification, 
        and shall not be issued then if the Congress, within 
        that 15-day period, enacts a joint resolution 
        prohibiting the proposed export; and
          (B) in the case of any other license, shall not be 
        issued until at least 30 calendar days after the 
        Congress receives such certification, and shall not be 
        issued then if the Congress, within that 30-day period, 
        enacts a joint resolution prohibiting the proposed 
        export.
If the President states in his certification that an emergency 
exists which requires the proposed export in the national 
security interests of the United States, thus waiving the 
requirements of subparagraphs (A) and (B) of this paragraph, he 
shall set forth in the certification a detailed justification 
for his determination, including a description of the emergency 
circumstances which necessitate the immediate issuance of the 
export license and a discussion of the national security 
interests involved.
          * * * * * * *
  (d)(1) In the case of an approval under section 38 of this 
Act of a United States commercial technical assistance or 
manufacturing licensing agreement [for or in a country not a 
member of the North Atlantic Treaty Organization] which 
involves the manufacture abroad of any item of significant 
combat equipment on the United States Munitions List, before 
such approval is given, the President shall submit a 
certification with respect to such proposed commercial 
agreement in a manner similar to the certification required 
under subsection (c)(1) containing comparable information, 
except that the last sentence of such subsection shall not 
apply to certifications submitted pursuant to this subsection.
  (2) A certification under this subsection shall be 
submitted--
          (A) at least 15 days before approval is given in the 
        case of an agreement for or in a country which is a 
        member of the North Atlantic Treaty Organization or 
        Australia, Japan, or New Zealand; and
          (B) at least 30 days before approval is given in the 
        case of an agreement for or in any other country;
unless the President states in his certification that an 
emergency exists which requires the immediate approval of the 
agreement in the national security interests of the United 
States.
  (3) If the President states in his certification that an 
emergency exists which requires the immediate approval of the 
agreement in the national security interests of the United 
States, thus waiving the requirements of paragraph (4), he 
shall set forth in the certification a detailed justification 
for his determination, including a description of the emergency 
circumstances which necessitate the immediate approval of the 
agreement and a discussion of the national security interests 
involved.
  (4) Approval for an agreement subject to paragraph (1) may 
not be given under section 38 if the Congress, within the 15-
day or 30-day period specified in paragraph (2) (A) or (B), as 
the case may be, enacts a joint resolution prohibiting such 
approval.
  (5)(A) Any joint resolution under paragraph (4) shall be 
considered in the Senate in accordance with the provisions of 
section 601(b) of the International Security Assistance and 
Arms Export Control Act of 1976.
  (B) For the purpose of expediting the consideration and 
enactment of joint resolutions under paragraph (4), a motion to 
proceed to the consideration of any such joint resolution after 
it has been reported by the appropriate committee shall be 
treated as highly privileged in the House of Representatives.
          * * * * * * *
  Sec. 38. Control of Arms Exports and Imports.--(a)(1)  * * *
  (2) Decisions on issuing export licenses under this section 
shall be made in coordination with the [Director of the United 
States Arms Control and Disarmament Agency, taking into account 
the Director's] Secretary of State, taking into account the 
Secretary's assessment as to whether the export of an article 
would contribute to an arms race, aid in the development of 
weapons of mass destruction, support international terrorism, 
increase the possibility of outbreak or escalation of conflict, 
or prejudice the development of bilateral or multilateral arms 
control or nonproliferation agreements or other arrangements. 
[The Director of the Arms Control and Disarmament Agency is 
authorized, whenever the Director] The Secretary of State is 
authorized, whenever the Secretary determines that the issuance 
of an export license under this section would be detrimental to 
the national security of the United States, to recommend to the 
President that such export license be disapproved.
          * * * * * * *
  (b)(1)(A) [As prescribed in regulations] (i) As prescribed in 
regulations issued under this section, every person (other than 
an officer or employee of the United States Government acting 
in an official capacity) who engages in the business of 
manufacturing, exporting, or importing any defense articles or 
defense services designated by the President under subsection 
(a)(1) shall register with the United States Government agency 
charged with the administration of this section, and shall pay 
a registration fee which shall be prescribed by such 
regulations. Such regulations shall prohibit the return to the 
United States for sale in the United States (other than for the 
Armed Forces of the United States and its allies or for any 
State for local law enforcement agency) of any military 
firearms or ammunition of United States manufacture furnished 
to foreign governments by the United States under this Act or 
any other foreign assistance or sales program of the United 
States, whether or not enhanced in value or improved in 
condition in a foreign country. This prohibition shall not 
extend to similar firearms that have been so substantially 
transformed as to become, in effect, articles of foreign 
manufacture.
  (ii)(I) As prescribed in regulations issued under this 
section, every person (other than an officer or employee of the 
United States Government acting in official capacity) who 
engages in the business of brokering activities with respect to 
the manufacture, export, import, or transfer of any defense 
article or defense service designated by the President under 
subsection (a)(1), or in the business of brokering activities 
with respect to the manufacture, export, import, or transfer of 
any foreign defense article or defense service (as defined in 
subclause (IV)), shall register with the United States 
Government agency charged with the administration of this 
section, and shall pay a registration fee which shall be 
prescribed by such regulations.
  (II) Such brokering activities shall include the financing, 
transportation, freight forwarding, or the taking of any other 
action that facilitates the manufacture, export, or import of a 
defense article or defense service.
  (III) No person may engage in the business of brokering 
activities without a license, issued in accordance with this 
Act, except that no license shall be required for such 
activities undertaken by or for an agency of the United States 
Government--
          (aa) for official use by an agency of the United 
        States Government; or
          (bb) for carrying out any foreign assistance or sales 
        program authorized by law and subject to the control of 
        the President by other means.
  (IV) For purposes of this clause, the term ``foreign defense 
article or defense service'' includes any non-United States 
defense article or defense service of a nature described on the 
United States Munitions List regardless of whether such article 
or service is of United States origin or whether such article 
or service contains United States origin components.
          * * * * * * *
CHAPTER 3A--END-USE MONITORING OF DEFENSE ARTICLES AND DEFENSE SERVICES

SEC. 40A. END-USE MONITORING OF DEFENSE ARTICLES AND DEFENSE SERVICES.

  (a) Establishment of Monitoring Program.--
          (1) In general.--In order to improve accountability 
        with respect to defense articles and defense services 
        sold, leased, or exported under this Act or the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2151 et seq.), the 
        Secretary of State shall establish a program which 
        provides for the end-use monitoring of such articles 
        and services.
          (2) Requirements of program.--To the extent 
        practicable, such program--
                  (A) shall provide for the end-use monitoring 
                of defense articles and defense services in 
                accordance with the standards that apply for 
                identifying high-risk exports for regular end-
                use verification developed under section 
                38(g)(7) of this Act (commonly referred to as 
                the ``Blue Lantern'' program); and
                  (B) shall be designed to provide reasonable 
                assurance that--
                          (i) the recipient is complying with 
                        the requirements imposed by the United 
                        States Government with respect to use, 
                        transfers, and security of defense 
                        articles and defense services; and
                          (ii) such articles and services are 
                        being used for the purposes for which 
                        they are provided.
  (b) Conduct of Program.--In carrying out the program 
established under subsection (a), the Secretary shall ensure 
that the program--
          (1) provides for the end-use verification of defense 
        articles and defense services that incorporate 
        sensitive technology, defense articles and defense 
        services that are particularly vulnerable to diversion 
        or other misuse, or defense articles or defense 
        services whose diversion or other misuse could have 
        significant consequences; and
          (2) prevents the diversion (through reverse 
        engineering or other means) of technology incorporated 
        in defense articles.
  (c) Monitoring Responsibilities.--
          (1) In general.--Pursuant to subsection (a), sections 
        3 and 38 of this Act, and sections 505, 622, and 623 of 
        the Foreign Assistance Act of 1961, the Secretary of 
        State, in consultation with the Secretary of Defense 
        and officials of appropriate other Federal agencies, 
        shall provide for the monitoring of defense articles 
        and defense services described in subsection (a).
          (2) Additional personnel.--Upon the request of the 
        Secretary of State, the Secretary of Defense or the 
        Secretary of the Treasury, as the case may be, shall 
        provide to the agency primarily responsible for the 
        licensing of exports under this section, on a 
        nonreimbursable basis, personnel with appropriate 
        expertise to assist in the end-use monitoring and 
        enforcement functions under this section and section 38 
        of this Act.
  (d) Report to Congress.--Not later than 6 months after the 
date of the enactment of the Foreign Aid Reduction Act of 1995, 
and annually thereafter as a part of the annual congressional 
presentation documents submitted under section 634 of the 
Foreign Assistance Act of 1961, the President shall transmit to 
the Congress a report describing the actions taken to implement 
this section.
  (e) Third Country Transfers.--For purposes of this section, 
defense articles and defense services sold, leased, or exported 
under this Act or the Foreign Assistance Act of 1961 (22 U.S.C. 
2151 et seq.) includes defense articles and defense services 
that are transferred to a third country or other third party.
          * * * * * * *
  Sec. 42. General Provisions.--(a)(1) In carrying out this 
Act, special emphasis shall be placed on procurement in the 
United States, but, subject to the provisions of subsection (b) 
of this section, consideration shall also be given to 
coproduction or licensed production outside the United States 
of defense articles of United States origin when such 
production best serves the foreign policy, national security, 
and economy of the United States. In evaluating any sale 
proposed to be made pursuant to this Act, there shall be taken 
into consideration (A) the extent to which the proposed sale 
damages or infringes upon licensing arrangements whereby United 
States entities have granted licenses for the manufacture of 
the defense articles selected by the purchasing country to 
entities located in friendly foreign countries, which licenses 
result in financial returns to the United States, (B) the 
portion of the defense articles so manufactured which is of 
United States origin, and (C) the assessment of the [Director 
of the United States Arms Control and Disarmament Agency] 
Secretary of State as to whether, and the extent to which, such 
sale might contribute to an arms race, aid in the development 
of weapons of mass destruction, support international 
terrorism, increase the possibility of outbreak or escalation 
of conflict, or prejudice the development of bilateral or 
multilateral arms control or nonproliferation agreements or 
other arrangements.
  (2) Any proposed sale made pursuant to this Act shall be 
approved only after consultation with the [Director of the 
United States Arms Control and Disarmament Agency] Secretary of 
State. The [Director of the Arms Control and Disarmament Agency 
is authorized, whenever the Director] Secretary of State, 
whenever the Secretary determines that a sale under this 
section would be detrimental to the national security of the 
United States, to recommend to the President that such sale be 
disapproved.
          * * * * * * *

    CHAPTER 4--GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS PROVISIONS

          * * * * * * *
  Sec. 47. Definitions.--For purposes of this Act, the term--
  (1)  * * *
          * * * * * * *
  (7) ``defense articles and defense services'' means, with 
respect to commercial exports subject to the provisions of 
section 38 of this Act, those items designated by the President 
pursuant to subsection (a)(1) of such section; [and]
  (8) ``design and construction services'' means, with respect 
to sales under section 29 of this Act, the design and 
construction of real property facilities, including necessary 
construction equipment and materials, engineering services, 
construction contract management services relating thereto, and 
technical advisory assistance in the operation and maintenance 
of real property facilities provided or performed by any 
department or agency of the Department of Defense or by a 
contractor pursuant to a contract with such department or 
agency[.]; and
  (9) ``significant military equipment'' means articles--
          (A) for which special export controls are warranted 
        because of the capacity of such articles for 
        substantial military utility or capability; and
          (B) identified on the United States Munitions List.
              CHAPTER 5--SPECIAL DEFENSE ACQUISITION FUND

  Sec. 51. Special Defense Acquisition Fund.--(a)(1)  * * *
          * * * * * * *
  (4)[(a)] The Fund shall also be used to acquire defense 
articles that are particularly suited for use for narcotics 
control purposes and are appropriate to the needs of recipient 
countries, such as small boats, planes (including helicopters), 
and communications equipment.
  [(B) Each report pursuant to section 53(a) shall designate 
the defense articles that have been acquired or are to be 
acquired pursuant to this paragraph and the defense articles 
acquired under this chapter that were transferred for use in 
narcotics control purposes.]
          * * * * * * *
  [Sec. 53. Annual Reports to Congress.--(a) Not later than 
December 31 of each year, the President shall submit to the 
Congress a comprehensive report on acquisitions of defense 
articles and defense services under this chapter. Each such 
report shall include--
          [(1) a description of each contract for the 
        acquisition of defense articles or defense services 
        under this chapter which was entered into during the 
        preceding fiscal year;
          [(2) a description of each contract for the 
        acquisition of defense articles or defense services 
        under this chapter which the President anticipates will 
        be entered into during the current fiscal year;
          [(3) a description of each defense article or defense 
        service acquired under this chapter which was 
        transferred to a foreign country or international 
        organization during the preceding fiscal year; and
          [(4) an evaluation of the impact of the utilization 
        of the authority of this chapter on United States 
        defense production and the readiness of the United 
        States Armed Forces.
  [(b) As part of the annual written report to the Congress 
required by section 2431(a) of title 10, United States Code, 
regarding procurement schedules for each weapon system for 
which funding authorization is required, the President shall 
provide a report estimating the likely procurements to be made 
through the Fund.]
          * * * * * * *

     CHAPTER 6--LEASES OF DEFENSE ARTICLES AND LOAN AUTHORITY FOR 
             COOPERATIVE RESEARCH AND DEVELOPMENT PURPOSES 

  Sec. 61. Leasing Authority.--(a) The President may lease 
defense articles in the stocks of the Department of Defense to 
an eligible foreign country or international organization if--
          (1)  * * *
          * * * * * * *
          (4) the country or international organization has 
        agreed to pay in United States dollars all costs 
        incurred by the United States Government in leasing 
        such articles, including reimbursement for depreciation 
        of such articles while leased, the costs of restoration 
        or replacement if the articles are damaged while 
        leased, [and the replacement cost (less any 
        depreciation in the value) of the articles if the 
        articles are lost or destroyed while leased.] and, if 
        the articles are lost or destroyed while leased--
                  (A) in the event the United States intends to 
                replace the articles lost or destroyed, the 
                replacement cost (less any depreciation in the 
                value) of the articles; or
                  (B) in the event the United States does not 
                intend to replace the articles lost or 
                destroyed, an amount not less than the actual 
                value (less any depreciation in the value) 
                specified in the lease agreement.
The requirement of paragraph (4) shall not apply to leases 
entered into for purposes of cooperative research or 
development, military exercises, or communications or 
electronics interface projects, or to any defense article which 
has passed three-quarters of its normal service life.
  The President may waive the requirement of paragraph (4) with 
respect to a lease which is made in exchange with the lessee 
for a lease on substantially reciprocal terms of defense 
articles for the Department of Defense, except that this waiver 
authority--
          (A) may be exercised only if the President submits to 
        the Committee on Foreign Affairs and the Committee on 
        Appropriations of the House of Representatives and the 
        Committee on Foreign Relations and the Committee on 
        Appropriations of the Senate, in accordance with the 
        regular notification procedures of those Committees, a 
        detailed notification for each lease with respect to 
        which the authority is exercised; and
          (B) may be exercised only during the fiscal year 1995 
        and only with respect to one country, unless the 
        Congress hereafter provides otherwise.
The preceding sentence does not constitute authorization of 
appropriations for payments by the United States for leased 
articles.
          * * * * * * *
  Sec. 62. Reports to the Congress.--(a) [Not less than 30 days 
before] Before entering into or renewing any agreement with a 
foreign country or international organization to lease any 
defense article under this chapter, or to loan any defense 
article under chapter 2 of part II of the Foreign Assistance 
Act of 1961, for a period of one year or longer, the President 
shall transmit to the Speaker of the House of Representatives, 
and to the chairman of the Committee on Foreign Relations of 
the Senate and the chairman of the Committee on Armed Services 
of the Senate, a written certification which specifies--
          (1) the country or international organization to 
        which the defense article is to be leased or loaned;
          (2) the type, quantity, and value (in terms of 
        replacement cost) of the defense article to be leased 
        or loaned;
          (3) the terms and duration of the lease or loan; and
          (4) a justification for the lease or loan, including 
        an explanation of why the defense article is being 
        leased or loaned rather than sold under this Act.
  (b) The President may waive the requirements of this section 
(and in the case of an agreement described in section 63, may 
waive the provisions of that section) if he [determines, and 
immediately reports to the Congress] states in his 
certification, that an emergency exists which requires that the 
lease or loan be entered into immediately in the national 
security interests of the United States. If the President 
states in his certification that such an emergency exists, he 
shall set forth in the certification a detailed justification 
for his determination, including a description of the emergency 
circumstances which necessitate that the lease be entered into 
immediately and a discussion of the national security interests 
involved.
  (c) The certification required by subsection (a) shall be 
transmitted--
          (1) not less than 15 calendar days before the 
        agreement is entered into or renewed in the case of an 
        agreement with the North Atlantic Treaty Organization, 
        any member country of that Organization or Australia, 
        Japan, or New Zealand; and
          (2) not less than 30 calendar days before the 
        agreement is entered into or renewed in the case of an 
        agreement with any other organization or country.
  Sec. 63. Legislative Review.--(a)[(1)] In the case of any 
agreement involving the lease under this chapter, or the loan 
under chapter 2 of part II of the Foreign Assistance Act of 
1961, to any foreign country or international organization for 
a period of one year or longer of any defense articles which 
are either (i) major defense equipment valued (in terms of its 
replacement cost less any depreciation in its value) at 
[$14,000,000] $25,000,000 or more, or (ii) defense articles 
valued (in terms of their replacement cost less any 
depreciation in their value) at [$50,000,000] $75,000,000 or 
more, the agreement may not be entered into or renewed if the 
Congress, within [30 calendar days after receiving the 
certification with respect to that proposed agreement pursuant 
to section 62(a),] the 15-day or 30-day period specified in 
section 62(c) (1) or (2), as the case may be, enacts a joint 
resolution prohibiting the proposed lease or loan.
  [(2) This section shall not apply with respect to a loan or 
lease to the North Atlantic Treaty Organization, any member 
country of that Organization, Japan, Australia, or New 
Zealand.]
          * * * * * * *
  Sec. 65. Loan of Materials, Supplies, and Equipment for 
Research and Development Purposes.--(a)  * * *
          * * * * * * *
  (d) For purposes of this section, the term ``NATO [or major 
non-NATO] ally'' means a member country of the North Atlantic 
Treaty Organization (other than the United States) [or a 
foreign country other than a member nation of NATO designated 
as a major non-NATO ally under section 2350a(i)(3) of title 10, 
United States Code].
          * * * * * * *

  CHAPTER 7--CONTROL OF MISSILES AND MISSILE EQUIPMENT OR TECHNOLOGY 

  Sec. 71. Licensing.--
  (a) Establishment of List of Controlled Items.--The Secretary 
of State, in consultation with the Secretary of Defense[, the 
Director of the Arms Control and Disarmament Agency,], 
Secretary of State, and the heads of other appropriate 
departments and agencies, shall establish and maintain, as part 
of the United States Munitions List, a list of all items on the 
MTCR Annex the export of which is not controlled under section 
6(l) of the Export Administration Act of 1979.
  (b) Referral of License Applications.--(1) A determination of 
the Secretary of State to approve a license for the export of 
an item on the list established under subsection (a) may be 
made only after the license application is referred to the 
Secretary of Defense and the [Director of the United States 
Arms Control and Disarmament Agency] Secretary of State.
  (2) Within 10 days after a license is issued for the export 
of an item on the list established under subsection (a), the 
Secretary of State shall provide to the Secretary of Defense, 
the Secretary of Commerce, and the [Director of the United 
States Arms Control and Disarmament Agency] Secretary of State 
the license application and accompanying documents issued to 
the applicant, to the extent that the relevant Secretary [or 
the Director] indicates the need to receive such application 
and documents.
  (c) Information Sharing.--The Secretary of State shall 
establish a procedure for sharing information with appropriate 
officials of the intelligence community, as determined by the 
Director of Central Intelligence, with the [Director of the 
United States Arms Control and Disarmament Agency,] Secretary 
of State and with other appropriate Government agencies, that 
will ensure effective monitoring of transfers of MTCR equipment 
or technology and other missile technology.
          * * * * * * *
  Sec. 73. Transfers of Missile Equipment or Technology by 
Foreign Persons.
  (a)  * * *
          * * * * * * *
  (d) Advisory Opinions.--The Secretary of State, in 
consultation with the Secretary of Defense, the Secretary of 
Commerce, and the [Director of the United States Arms Control 
and Disarmament Agency] Secretary of State, may, upon the 
request of any person, issue an advisory opinion to that person 
as to whether a proposed activity by that person would subject 
that person to sanctions under this section. Any person who 
relies in good faith on such an advisory opinion which states 
that the proposed activity would not subject a person to such 
sanctions, and any person who thereafter engages in such 
activity, may not be made subject to such sanctions on account 
of such activity.
          * * * * * * *
                              ----------                              


        SECTION 1706 OF THE UNITED STATES INSTITUTE OF PEACE ACT

                           board of directors

    Sec. 1706. (a) The powers of the Institute shall be vested 
in a Board of Directors unless otherwise specified in this 
title.
    (b) The Board shall consist of fifteen voting members as 
follows:
          (1) * * *
          * * * * * * *
          [(3) The Director of the Arms Control and Disarmament 
        Agency (or if the Director so designates, another 
        officer of that Agency who was appointed with the 
        advice and consent of the Senate).]
          [(4)] (3) The president of the National Defense 
        University (or if the president so designates, the vice 
        president of the National Defense University).
          [(5) Eleven] (4) Twelve individuals appointed by the 
        President, by and with the advice and consent of the 
        Senate.
          * * * * * * *
                              ----------                              

                       ATOMIC ENERGY ACT OF 1954

          * * * * * * *

                         TITLE I--ATOMIC ENERGY

          * * * * * * *

                  CHAPTER 6. SPECIAL NUCLEAR MATERIAL

          * * * * * * *
  Sec. 57. Prohibition.--
  a.  * * *
  b. It shall be unlawful for any person to directly or 
indirectly engage in the production of any special nuclear 
material outside of the United States except (1) as 
specifically authorized under an agreement for cooperation made 
pursuant to section 123, including a specific authorization in 
a subsequent arrangement under section 131 of this Act, or (2) 
upon authorization by the Secretary of Energy after a 
determination that such activity will not be inimical to the 
interest of the United States: Provided, That any such 
determination by the Secretary of Energy shall be made only 
with the concurrence of the Department of State and after 
consultation with [the Arms Control and Disarmament Agency,] 
the Nuclear Regulatory Commission, the Department of Commerce, 
and the Department of Defense. The Secretary of Energy shall, 
within ninety days after the enactment of the Nuclear Non-
Proliferation Act of 1978, establish orderly and expeditious 
procedures, including provision for necessary administrative 
actions and inter-agency memoranda of understanding, which are 
mutually agreeable to the Secretaries of State, Defense, and 
Commerce, [the Director of the Arms Control and Disarmament 
Agency,] and the Nuclear Regulatory Commission for the 
consideration of requests for authorization under this 
subsection. Such procedures shall include, at a minimum, 
explicit direction on the handling of such requests, express 
deadlines for the solicitation and collection of the views of 
the consulted agencies (with identified officials responsible 
for meeting such deadlines), an interagency coordinating 
authority to monitor the processing of such requests, 
predetermined procedures for the expeditious handling of intra-
agency and inter-agency disagreements and appeals to higher 
authorities, frequent meetings of inter-agency administrative 
coordinators to review the status of all pending requests, and 
similar administrative mechanisms. To the extent practicable, 
an applicant should be advised of all the information required 
of the applicant for the entire process for every agency's 
needs at the beginning of the process. Potentially 
controversial requests should be identified as quickly as 
possible so that any required policy decisions or diplomatic 
consultations can be initiated in a timely manner. An immediate 
effort should be undertaken to establish quickly any necessary 
standards and criteria, including the nature of any required 
assurances or evidentiary showings, for the decision required 
under this subsection. The processing of any request proposed 
and filed as of the date of enactment of the Nuclear Non-
Proliferation Act of 1978 shall not be delayed pending the 
development and establishment of procedures to implement the 
requirements of this subsection. Any trade secrets or 
proprietary information submitted by any person seeking an 
authorization under this subsection shall be afforded the 
maximum degree of protection allowable by law: Provided 
further, That the export of component parts as defined in 
subsection 11 v. (2) or 11 cc. (2) shall be governed by 
sections 109 and 126 of this Act: Provided further, That 
notwithstanding subsection 402(d) of the Department of Energy 
Organization Act (Public Law 95-91), the Secretary of Energy 
and not the Federal Energy Regulatory Commission, shall have 
sole jurisdiction within the Department of Energy over any 
matter arising from any function of the Secretary of Energy in 
this section, section 54 d., section 64, or section 111 b.
          * * * * * * *

                  CHAPTER 11. INTERNATIONAL ACTIVITIES

          * * * * * * *
  Sec. 123. Cooperation With Other Nations.--
          No cooperation with any nation, group of nations or 
        regional defense organization pursuant to section 53, 
        54 a., 57, 64, 82, 91, 103, 104, or 144 shall be 
        undertaken until--
                  a. the proposed agreement for cooperation has 
                been submitted to the President, which proposed 
                arrangement shall include the terms, 
                conditions, duration, nature, and scope of the 
                cooperation; and shall include the following 
                requirements:
                          (1)  * * *
          * * * * * * *
                          (9) except in the case of agreements 
                        for cooperation arranged pursuant to 
                        subsection 91 c., 144 b., 144 c., or 
                        144 d., a guaranty by the cooperating 
                        party that any special nuclear 
                        material, production facility, or 
                        utilization facility produced or 
                        constructed under the jurisdiction of 
                        the cooperating party by or through the 
                        use of any sensitive nuclear technology 
                        transferred pursuant to such agreement 
                        for cooperation will be subject to all 
                        the requirements specified in this 
                        subsection.
                The President may exempt a proposed agreement 
                for cooperation (except an agreement arranged 
                pursuant to subsection 91 c., 144 b., 144 c., 
                or 144 d.) from any of the requirements of the 
                foregoing sentence if he determines that 
                inclusion of any such requirement would be 
                seriously prejudicial to the achievement of 
                United States non-proliferation objectives or 
                otherwise jeopardize the common defense and 
                security. Except in the case of those 
                agreements for cooperation arranged pursuant to 
                subsection 91 c., 144 b., 144 c., or 144 d., 
                any proposed agreement for cooperation shall be 
                negotiated by the Secretary of State, with the 
                technical assistance and concurrence of the 
                Secretary of Energy [and in consultation with 
                the Director of the Arms Control and 
                Disarmament Agency (``the Director'')]; and 
                after consultation with the Commission shall be 
                submitted to the President jointly by the 
                Secretary of State and the Secretary of Energy 
                accompanied by the views and recommendations of 
                the Secretary of State, the Secretary of 
                Energy, the Nuclear Regulatory Commission, [and 
                the Director] and the Secretary of Defense, who 
                shall also provide to the President an 
                unclassified Nuclear Proliferation Assessment 
                Statement (A) which shall analyze the 
                consistency of the text of the proposed 
                agreement for cooperation with all the 
                requirements of this Act, with specific 
                attention to whether the proposed agreement is 
                consistent with each of the criteria set forth 
                in this subsection, and (B) regarding the 
                adequacy of the safeguards and other control 
                mechanisms and the peaceful use assurances 
                contained in the agreement for cooperation to 
                ensure that any assistance furnished thereunder 
                will not be used to further any military or 
                nuclear explosive purpose. In the case of those 
                agreements for cooperation arranged pursuant to 
                subsection 91 c., 144 b., 144 c., or 144 d., 
                any proposed agreement for cooperation shall be 
                submitted to the President by the Secretary of 
                Energy or, in the case of those agreements for 
                cooperation arranged pursuant to subsection 91 
                c. 144 b., or 144 d. which are to be 
                implemented by the Department of Defense, by 
                the Secretary of Defense;
          * * * * * * *
                  d. the proposed agreement for cooperation (if 
                arranged pursuant to subsection 91 c., 144 b., 
                144 c., or 144 d., or if entailing 
                implementation of section 53, 54 a., 103, or 
                104 in relation to a reactor that may be 
                capable of producing more than five thermal 
                megawatts or special nuclear material for use 
                in connection therewith) has been submitted to 
                the Congress, together with the approval and 
                determination of the President, for a period of 
                sixty days of continuous session (as defined in 
                subsection 130 g. of this Act) and referred to 
                the Committee on Foreign Affairs of the House 
                of Representatives and the Committee on Foreign 
                Relations of the Senate, and in addition, in 
                the case of a proposed agreement for 
                cooperation arranged pursuant to subsection 91 
                c., 144 b., 144 c., or 144 d., the Committee on 
                Armed Services of the House of Representatives 
                and the Committee on Armed Services of the 
                Senate, but such proposed agreement for 
                cooperation shall not become effective if 
                during such sixty-day period the Congress 
                adopts, and there is enacted, a joint 
                resolution stating in substance that the 
                Congress does not favor the proposed agreement 
                for cooperation: Provided, That the sixty-day 
                period shall not begin until a Nuclear 
                Proliferation Assessment Statement prepared by 
                the [Director of the Arms Control and 
                Disarmament Agency] Secretary of Defense, when 
                required by subsection 123 a., has been 
                submitted to the Congress: Provided further, 
                That an agreement for cooperation exempted by 
                the President pursuant to subsection a. from 
                any requirement contained in that subsection 
                shall not become effective unless the Congress 
                adopts, and there is enacted, a joint 
                resolution stating that the Congress does favor 
                such agreement. During the sixty-day period the 
                Committee on Foreign Affairs of the House of 
                Representatives and the Committee on Foreign 
                Relations of the Senate shall each hold 
                hearings on the proposed agreement for 
                cooperation and submit a report to their 
                respective bodies recommending whether it 
                should be approved or disapproved. Any such 
                proposed agreement for cooperation shall be 
                considered pursuant to the procedures set forth 
                in section 130 i. of this Act.
          Following submission of a proposed agreement for 
        cooperation (except an agreement for cooperation 
        arranged pursuant to subsection 91 c., 144 b., 144 c., 
        or 144 d.) to the Committee on Foreign Affairs of the 
        House of Representatives and the Committee on Foreign 
        Relations of the Senate, the Nuclear Regulatory 
        Commission, the Department of State, the Department of 
        Energy, [the Arms Control and Disarmament Agency,] and 
        the Department of Defense shall, upon the request of 
        either of those committees, promptly furnish to those 
        committees their views as to whether the safeguards and 
        other controls contained therein provide an adequate 
        framework to ensure that any exports as contemplated by 
        such agreement will not be inimical to or constitute an 
        unreasonable risk to the common defense and security.
  If, after the date of enactment of the Nuclear Non-
Proliferation Act of 1978, the Congress fails to disapprove a 
proposed agreement for cooperation which exempts the recipient 
nation from the requirement set forth in subsection 123 a. (2), 
such failure to act shall constitute a failure to adopt a 
resolution of disapproval pursuant to subsection 128 b. (3) for 
purposes of the Commission's consideration of applications and 
requests under section 126 a. (2) and there shall be no 
congressional review pursuant to section 128 of any subsequent 
license or authorization with respect to that state until the 
first such license or authorization which is issued after 
twelve months from the elapse of the sixty-day period in which 
the agreement for cooperation in question is reviewed by the 
Congress.
                              ----------                              

                 NUCLEAR NON-PROLIFERATION ACT OF 1978

          * * * * * * *
                              definitions
    Sec. 4. (a) As used in this Act, the term--
          (1) ``Commission'' means the Nuclear Regulatory 
        Commission;
          [(2) ``Director'' means the Director of the Armed 
        Control and Disarmament Agency;]
          * * * * * * *

  TITLE I--UNITED STATES INITIATIVES TO PROVIDE ADEQUATE NUCLEAR FUEL 
                                 SUPPLY

          * * * * * * *
                      uranium enrichment capacity
    Sec. 102. The Secretary of Energy is directed to initiate 
construction planning and design, construction, and operation 
activities for expansion of uranium enrichment capacity, as 
elsewhere provided by law. Further the Secretary as well as the 
Nuclear Regulatory Commission, [The Secretary of State, and the 
Director of the Arms Control and Disarmament Agency] and the 
Secretary of State are directed to establish and implement 
procedures which will ensure to the maximum extent feasible, 
consistent with this Act, orderly processing of subsequent 
arrangements and export licenses with minimum time delay.
          * * * * * * *

                     TITLE VI--EXECUTIVE REPORTING

          * * * * * * *
                           additional reports
    Sec. 602. (a) * * *
          * * * * * * *
    (c) The Department of State, the Department of Defense, 
[the Arms Control and Disarmament Agency,] the Department of 
Commerce, the Department of Energy, and the Commission shall 
keep the Committees on Foreign Relations and Governmental 
Affairs of the Senate and the Committee on Foreign Affairs of 
the House of Representatives fully and currently informed with 
respect to their activities to carry out the purposes and 
policies of this Act and to otherwise prevent proliferation, 
and with respect to the current activities of foreign nations 
which are of significance from the proliferation standpoint.
          * * * * * * *
                              ----------                              

                      TITLE 5, UNITED STATES CODE

          * * * * * * *

                          PART III--EMPLOYEES

          * * * * * * *

                     Subpart D--Pay and Allowances

          * * * * * * *

                   CHAPTER 53--PAY RATES AND SYSTEMS

          * * * * * * *

              SUBCHAPTER II--EXECUTIVE SCHEDULE PAY RATES

          * * * * * * *

Sec. 5313. Positions at level II

  Level II of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Deputy Secretary of Defense.
          Deputy Secretary of State.
          [Administrator, Agency for International 
        Development.]
          Administrator of the National Aeronautics and Space 
        Administration.
          Deputy Secretary of Veterans Affairs.
          Deputy Secretary of the Treasury.
          Deputy Secretary of Transportation.
          Chairman, Nuclear Regulatory Commission.
          Chairman, Council of Economic Advisers.
          Chairman, Board of Governors of the Federal Reserve 
        System.
          Director of the Office of Science and Technology.
          [Director of the United States Arms Control and 
        Disarmament Agency.
          [Director of the United States Information Agency.]
          * * * * * * *
Sec. 5314. Positions at level III

  Level III of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Solicitor General of the United States.
          Under Secretary of Commerce, Under Secretary of 
        Commerce for Economic Affairs, Under Secretary of 
        Commerce for Export Administration and Under Secretary 
        of Commerce for Travel and Tourism.
          Under Secretaries of State (5).
          Under Secretaries of the Treasury (3).
          Administrator of General Services.
          Administrator of the Small Business Administration.
          [Deputy Administrator, Agency for International 
        Development.]
          Chairman of the Merit Systems Protection Board.
          * * * * * * *
          [Deputy Director of the United States Arms Control 
        and Disarmament Agency.]
          * * * * * * *
Sec. 5315. Positions at level IV

  Level IV of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Deputy Administrator of General Services.
          Associate Administrator of the National Aeronautics 
        and Space Administration.
          [Assistant Administrators, Agency for International 
        Development (6).
          [Regional Assistant Administrators, Agency for 
        International Development (4).]
          Under Secretary of the Air Force.
          * * * * * * *
          [Deputy Director of the United States Information 
        Agency.]
          * * * * * * *
          [Assistant Directors, United States Arms Control and 
        Disarmament Agency (4).
          [Inspector General, United States Information 
        Agency.]
          * * * * * * *
          [Inspector General, Agency for International 
        Development.]
          * * * * * * *
          [Director of the International Broadcasting Bureau, 
        the United States Information Agency] Director of the 
        International Broadcasting Office, the Department of 
        State.
          Inspector General, Social Security Administration.
          The Commissioner of Labor Statistics, Department of 
        Labor.
          Administrator, Rural Utilities Service, Department of 
        Agriculture.
Sec. 5316. Positions at level V

  Level V of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Administrator, Bonneville Power Administration, 
        Department of the Interior.
          Administrator of the National Capital Transportation 
        Agency.
          Associate Administrators of the Small Business 
        Administration (4).
          * * * * * * *
          [Deputy Director, Policy and Plans, United States 
        Information Agency.]
          * * * * * * *
          [General Counsel of the Agency for International 
        Development.]
          * * * * * * *
          [Associate Director (Policy and Plans), United States 
        Information Agency.]
          * * * * * * *
                              ----------                              


                     INSPECTOR GENERAL ACT OF 1978

          * * * * * * *

     [special provisions relating to the agency for international 
                              development

  [Sec. 8A. (a) In addition to the other duties and 
responsibilities specified in this Act, the Inspector General 
of the Agency for International Development--
          [(1) shall supervise, direct, and control all 
        security activities relating to the programs and 
        operations of that Agency, subject to the supervision 
        of the Administrator of that Agency; and
          [(2) to the extent requested by the Director of the 
        United States International Development Cooperation 
        Agency (after consultation with the Administrator of 
        the Agency for International Development), shall 
        supervise, direct, and control all audit, 
        investigative, and security activities relating to 
        programs and operations within the United States 
        International Development Cooperation Agency.
  [(b) In addition to the Assistant Inspector Generals provided 
for in section 3(d) of this Act, the Inspector General of the 
Agency for International Development shall, in accordance with 
applicable laws and regulations governing the civil service, 
appoint an Assistant Inspector General for Security who shall 
have the responsibility for supervising the performance of 
security activities relating to programs and operations of the 
Agency for International Development.
  [(c) The semiannual reports required to be submitted to the 
Administrator of the Agency for International Development 
pursuant to section 5(b) of this Act shall also be submitted to 
the Director of the United States International Development 
Cooperation Agency.
  [(d) In addition to the officers and employees provided for 
in section 6(a)(6) of this Act, members of the Foreign Service 
may, at the request of the Inspector General of the Agency for 
International Development, be assigned as employees of the 
Inspector General. Members of the Foreign Service so assigned 
shall be responsible solely to the Inspector General, and the 
Inspector General (or his or her designee) shall prepare the 
performance evaluation reports for such members.
  [(e) In establishing and staffing field offices pursuant to 
section 6(c) of this Act, the Administrator of the Agency for 
International Development shall not be bound by overseas 
personnel ceilings established under the Monitoring Overseas 
Direct Employment policy.
  [(f) The reference in section 7(a) of this Act to an employee 
of the establishment shall, with respect to the Inspector 
General of the Agency for International Development, be 
construed to include an employee of or under the United States 
International Development Cooperation Agency.
  [(g) The Inspector General of the Agency for International 
Development shall be in addition to the officers provided for 
in section 624(a) of the Foreign Assistance Act of 1961.
  [(h) As used in this Act, the term ``Agency for International 
Development'' includes any successor agency primarily 
responsible for administering part I of the Foreign Assistance 
Act of 1961.]
          * * * * * * *

                              definitions

  Sec. 11. As used in this Act--
          (1) the term ``head of the establishment'' means the 
        Secretary of Agriculture, Commerce, Defense, Education, 
        Energy, Health and Human Services, Housing and Urban 
        Development, the Interior, Labor, State, 
        Transportation, or the Treasury; the Attorney General; 
        [the Administrator of the Agency for International 
        Development,] Environmental Protection, General 
        Services, National Aeronautics and Space, or Small 
        Business, or Veterans' Affairs; the Director of the 
        Federal Emergency Management Agency[, the Office of 
        Personnel Management or the United States Information 
        Agency] or the Office of Personnel Management; the 
        Chairman of the Nuclear Regulatory Commission or the 
        Railroad Retirement Board; the Chairperson of the 
        Thrift Depositor Protection Oversight Board; the Chief 
        Executive Officer of the Corporation for National and 
        Community Service; the Administrator of the Community 
        Development Financial Institutions Fund; and the chief 
        officer of the Resolution Trust Corporation; or the 
        Commissioner of Social Security, Social Security 
        Administration; as the case may be;
          (2) the term ``establishment'' means the Department 
        of Agriculture, Commerce, Defense, Education, Energy, 
        Health and Human Services, Housing and Urban 
        Development, the Interior, Justice, Labor, State, 
        Transportation, or the Treasury; [the Agency for 
        International Development,] the Community Development 
        Financial Institutions Fund, the Environmental 
        Protection Agency, the Federal Emergency Management 
        Agency, the General Services Administration, the 
        National Aeronautics and Space Administration, the 
        Nuclear Regulatory Commission, the Office of Personnel 
        Management, the Railroad Retirement Board, the 
        Resolution Trust Corporation, the Federal Deposit 
        Insurance Corporation, the Small Business 
        Administration, [the United States Information Agency,] 
        the Corporation for National and Community Service,, or 
        the Veterans' Administration, or the Social Security 
        Administration; as the case may be;
          * * * * * * *
                              ----------                              

     UNITED STATES INFORMATION AND EDUCATIONAL EXCHANGE ACT OF 1948

 AN ACT To promote the better understanding of the United States among 
 the peoples of the world and to strengthen cooperative international 
                               relations.

  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,

           TITLE I--SHORT TITLE, OBJECTIVES, AND DEFINITIONS

                              short title

  Section 1. This Act may be cited as the ``United States 
Information and Educational Exchange Act of 1948''.
          * * * * * * *

                  TITLE III--ASSIGNMENT OF SPECIALISTS

                         persons to be assigned

  Sec. 301. The [Director of the United States Information 
Agency] Secretary of State is authorized, when the government 
of another country is desirous of obtaining the services of a 
person having special scientific or other technical or 
professional qualifications, from time to time to assign or 
authorize the assignment for service, to or in cooperation with 
such government, any person in the employ or service of the 
Government of the United States who has such qualifications, 
with the approval of the Government agency in which such person 
is employed or serving. No person shall be assigned for service 
to or in cooperation with the government of any country unless 
(1) the [Director] Secretary of State finds that such 
assignment is necessary in the national interest of the United 
States, or (2) such government agrees to reimburse the United 
States in an amount equal to the compensation, travel expenses, 
and allowances payable to such person during the period of such 
assignment in accordance with the provisions of section 302, or 
(3) such government shall have made an advance of funds, 
property, or services as provided in section 902. Nothing in 
this Act, however, shall authorize the assignment of such 
personnel for service relating to the organization, training, 
operation, development, or combat equipment of the armed forces 
of a foreign government.

                         status and allowances

  Sec. 302. Any person in the employ or service of the 
Government of the United States, while assigned for service to 
or in cooperation with another government under the authority 
of this Act, shall be considered, for the purpose of preserving 
his rights, allowances, and privileges as such, an officer or 
employee of the Government of the United States and of the 
Government agency from which assigned and he shall continue to 
receive compensation from that agency. He may also receive, 
under such regulations as the President may prescribe, 
representation allowances similar to those allowed under 
section 905 of the Foreign Service Act of 1980. The 
authorization of such allowances and other benefits and the 
payment thereof out of any appropriations available therefor 
shall be considered as meeting all the requirements of section 
5536 of title 5, United States Code.

             acceptance of office under another government

  Sec. 303. Any person in the employ or service of the 
Government of the United States, while assigned for service to 
or in cooperation with another government under authority of 
this Act may, at the discretion of his Government agency, with 
the concurrence of the [Director of the United States 
Information Agency] Secretary of State, and without additional 
compensation therefor, accept an office under the government to 
which he is assigned, if the acceptance of such an office in 
the opinion of such agency is necessary to permit the effective 
performance of duties for which he is assigned, including the 
making or approving on behalf of such foreign government the 
disbursement of funds provided by such government or of 
receiving from such foreign government funds for deposit and 
disbursement on behalf of such government, in carrying out 
programs undertaken pursuant to this Act: Provided, however, 
That such acceptance of office shall in no case involve the 
taking of an oath of allegiance to another government.
          * * * * * * *

   TITLE V--DISSEMINATING INFORMATION ABOUT THE UNITED STATES ABROAD

                         general authorization

  Sec. 501. (a) The Secretary is authorized, when he finds it 
appropriate, to provide for the preparation, and dissemination 
abroad, of information about the United States, its people, and 
its policies, through press, publications, radio, motion 
pictures, and other information media, and through information 
centers and instructors abroad. Subject to subsection (b), any 
such information (other than ``Problems of Communism'' and the 
``English Teaching Forum'' which may be sold by the Government 
Printing Office) shall not be disseminated within the United 
States, its territories, or possessions, but, on request, shall 
be available in the English language at the Department of 
State, at all reasonable times following its release as 
information abroad, for examination only by representatives of 
United States press associations, newspapers, magazines, radio 
systems, and stations, and by research students and scholars, 
and, on request, shall be made available for examination only 
to Members of Congress.
  (b)(1) The [Director of the United States Information Agency] 
Secretary of State shall make available to the Archivist of the 
United States, for domestic distribution, motion pictures, 
films, videotapes, and other material prepared for 
dissemination abroad 12 years after the initial dissemination 
of the material abroad or, in the case of such material not 
disseminated abroad, 12 years after the preparation of the 
material.
  (2) The [Director of the United States Information Agency] 
Secretary of State shall be reimbursed for any attendant 
expenses. Any reimbursement to the [Director] Secretary of 
State pursuant to this subsection shall be credited to the 
applicable appropriation of the [United States Information 
Agency] Department of State.
  (3) The Archivist shall be the official custodian of the 
material and shall issue necessary regulations to ensure that 
persons seeking its release in the United States have secured 
and paid for necessary United States rights and licenses and 
that all costs associated with the provision of the material by 
the Archivist shall be paid by the persons seeking its release. 
The Archivist may charge fees to recover such costs, in 
accordance with section 2116(c) of title 44, United States 
Code. Such fees shall be paid into, administered, and expended 
as part of the National Archives Trust Fund.
          * * * * * * *

          [usia] department of state satellite and television

  Sec. 505. (a) In General.--The [Director of the United States 
Information Agency] Secretary of State is authorized to lease 
or otherwise acquire time on commercial or United States 
Government satellites for the purpose of transmitting materials 
and programs to posts and other users abroad.
          (1) [USIA-TV] DEPARTMENT OF STATE-TV will serve as a 
        consistently reliable and authoritative source of news. 
        [USIA-TV] DEPARTMENT OF STATE-TV news will be accurate 
        and objective.
  (b) Broadcast Principles.--The Congress finds that the long-
term interests of the United States are served by communicating 
directly with the peoples of the world by television. [To be 
effective, the United States Information Agency] To be 
effective in carrying out this subsection, the Department of 
State must win the attention and respect of viewers. These 
principles will therefore govern the [Agency's] Department of 
State's television broadcasts (hereinafter in this section 
referred to as ``[USIA-TV] DEPARTMENT OF STATE-TV''):
          (2) [USIA-TV] DEPARTMENT OF STATE-TV will represent 
        the United States, not any single segment of American 
        society and will, therefore, present a balanced and 
        comprehensive projection of significant American 
        thought and institutions.
          (3) [USIA-TV] DEPARTMENT OF STATE-TV will present the 
        policies of the United States clearly and effectively 
        and will also present responsible discussions and 
        opinion on these policies.
  (c) Programs.--The [Director of the United States Information 
Agency] Secretary of State is authorized to produce, acquire, 
or broadcast television programs, via satellite, only if such 
programs--
          (1) are interactive, consisting of interviews among 
        participants in different locales;
          (2) cover news, public affairs, or other current 
        events;
          (3) cover official activities of government, Federal 
        or State, including congressional proceedings and news 
        briefings of any agency of the Executive branch; or
          (4) are of an artistic or scientific character or are 
        otherwise representative of American culture.
  (d) Costs.--When a comparable program produced by United 
States public or commercial broadcasters and producers is 
available at a cost which is equal to or less than the cost of 
production by [USIA-TV] DEPARTMENT OF STATE-TV, the [Director 
of the United States Information Agency] Secretary of State 
shall use such materials in preference to [USIA-TV] DEPARTMENT 
OF STATE-TV produced materials.
  [(e) Allocation of Funds.--(1) Of the funds authorized to be 
appropriated to the United States Information Agency not more 
than $12,000,000 for the fiscal year 1990 and not more than 
$12,480,000 for the fiscal year 1991 may be obligated or 
expended for USIA-TV.
  [(2) The United States Information Agency shall prepare and 
submit to the Congress quarterly reports which contain a 
detailed explanation of expenditures for USIA-TV during the 
fiscal years 1990 and 1991. Such reports shall contain specific 
justification and supporting information pertaining to all 
programs, particularly those described in subsection (c)(4), 
that were produced in-house by USIA-TV. Each such report shall 
include a statement by the Director of the United States 
Information Agency that, according to the best information 
available to the United States Information Agency, no 
comparable United States commercially-produced or public 
television program is available at a cost which is equal to or 
less than the cost of production by USIA-TV.
  [(3) Of the funds authorized to be appropriated to the United 
States Information Agency, $1,500,000 for the fiscal year 1990 
and $1,500,000 for the fiscal year 1991 shall be available only 
for the purchase or use of programs produced with grants from 
the Corporation for Public Broadcasting or produced by United 
States public broadcasters.]

                   voice of america hiring practices

  Sec. 506. (a) Prohibition.--After the date of enactment of 
this section, the Voice of America shall not select candidates 
for employment who must be or are preapproved for employment at 
the Voice of America by a foreign government or an entity 
controlled by a foreign government.
  (b) Exception.--The prohibition referred to in this section 
shall not apply to--
          (1) participants in the Voice of America's exchange 
        programs; or
          (2) clerical, technical, or maintenance staff at 
        Voice of America offices in foreign countries.
  (c) Report.--If the [Director of the United States 
Information Agency] Secretary of State determines that the 
prohibition under subsection (a) would require the termination 
of a specific Voice of America foreign language service, then, 
not less than 90 days before the [Agency] Department of State 
begins to recruit such candidates, the [Director] Secretary of 
State shall submit to the Committee on Foreign Relations of the 
Senate and the Committee on Foreign Affairs of the House of 
Representatives a report concerning--
          (1) the number and location of speakers of the 
        applicable foreign language who could be recruited by 
        the Voice of America without violating this section; 
        and
          (2) the efforts made by the Voice of America to 
        recruit such individuals for employment.

          TITLE VI--ADVISORY COMMISSIONS TO FORMULATE POLICIES

          * * * * * * *

         united states advisory commission on public diplomacy

  Sec. 604. (a) Establishment.--(1) There is established an 
advisory commission to be known as the United States Advisory 
Commission on Public Diplomacy.
  (2) The Commission shall consist of seven members appointed 
by the President, by and with the advice and consent of the 
Senate. The members of the Commission shall represent the 
public interest and shall be selected from a cross section of 
educational, communications, cultural, scientific, technical, 
public service, labor, business, and professional backgrounds. 
Not more than four members shall be from any one political 
party.
  (3) The term of each member shall be 3 years, except that of 
the original seven appointments, two shall be for a term of 1 
year and two shall be for a term of 2 years.
  (4) Any member appointed to fill a vacancy occurring before 
the expiration of the term for which a predecessor was 
appointed shall be appointed for the remainder of such term. 
Upon the expiration of a member's term of office, such member 
may continue to serve until a successor is appointed and 
qualified.
  (5) The President shall designate a member to chair the 
Commission.
  (b) Staff.--The Commission shall have a staff director who 
shall be appointed by the chairperson of the Commission. 
Subject to such rules and regulations as may be adopted by the 
Commission, the chairperson of the Commission may--
          (1) appoint such additional personnel for the staff 
        of the Commission as the chairperson considers 
        necessary; and
          (2) procure temporary and intermittent services to 
        the same extent as is authorized by section 3109(b) of 
        title 5, United States Code, but at rates for 
        individuals not to exceed the daily equivalent of the 
        annual rate of basic pay payable for grade GS-18 of the 
        General Schedule under section 5332 of title 5, United 
        States Code.
  (c) Duties and Responsibilities.--(1) The Commission shall 
formulate and recommend to [the Director of the United States 
Information Agency,] the Secretary of State, and the President 
policies and programs to carry out the functions vested in the 
[Director or the Agency, and shall appraise the effectiveness 
of policies and programs of the Agency] Secretary of State or 
the Department of State, and shall appraise the effectiveness 
of the information, educational, and cultural policies and 
programs of the Department.
  (2) The Commission shall submit to the Congress, the 
President, [the Secretary of State, and the Director of the 
United States Information Agency] and the Secretary of State 
annual reports on programs and activities carried out [by the 
Agency] by the Department of State, including appraisals, where 
feasible, as to the effectiveness of the several programs. The 
Commission shall also include in such reports such 
recommendations as shall have been made by the Commission to 
the [Director for effectuating the purposes of the Agency] 
Secretary for effectuating the information, educational, and 
cultural functions of the Department, and the action taken to 
carry out such recommendations.
  (3) The Commission may also submit such other reports to the 
Congress as it considers appropriate, and shall make reports to 
the public in the United States and abroad to develop a better 
understanding of and support for the [programs conducted by the 
Agency] information, educational, and cultural programs 
conducted by the Department of State.
  (4) The Commission's reports to the Congress shall include 
assessments of the degree to which the scholarly integrity and 
nonpolitical character of the educational and cultural exchange 
activities vested in the [Director of the United States 
Information Agency] Secretary of State have been maintained, 
and assessments of the attitudes of foreign scholars and 
governments regarding such activities.
  (d) Limitation on Authority.--The Commission shall have no 
authority with respect to the J. William Fulbright Foreign 
Scholarship Board or the United States National Commission for 
UNESCO.

                       TITLE VII--APPROPRIATIONS

                    prior authorization by congress

  Sec. 701. (a) Notwithstanding any provision of law enacted 
before the date of enactment of the United States Information 
Agency Appropriation Authorization Act of 1973, no money 
appropriated to carry out this Act shall be available for 
obligation or expenditure--
          (1) unless the appropriation thereof has been 
        previously authorized by law; or
          (2) in excess of an amount previously prescribed by 
        law.
  (b) To the extent that legislation enacted after the making 
of an appropriation to carry out this Act authorizes the 
obligation or expenditure thereof, the limitation contained in 
subsection (a) shall have no effect.
  (c) The provisions of this section shall not be superseded 
except by a provision of law enacted after the date of 
enactment of the United States Information Agency Appropriation 
Authorization Act of 1973, which specifically repeals, 
modifies, or supersedes the provisions of this section.
  (d) The provisions of this section shall not apply with 
respect to appropriations made available under the joint 
resolution entitled ``Joint resolution making continuing 
appropriations for the fiscal year 1974, and for other 
purposes'', approved July 1, 1973, and any provision of law 
specifically amending such joint resolution enacted through 
October 16, 1973.
  (e) The provisions of this section shall not apply to, or 
affect in any manner, permanent appropriations, trust funds, 
and other similar accounts administered by the [United States 
Information Agency] Department of State as authorized by law.
  (f)(1) Subject to paragraphs (2) and (3), funds authorized to 
be appropriated for any account of the [United States 
Information Agency] Department of State in the Department of 
State and Related Agencies Appropriations Act, for the second 
fiscal year of any 2-year authorization cycle may be 
appropriated for such second fiscal year for any other account 
of the [United States Information Agency] Department of State.
  (2) Amounts appropriated for the ``Salaries and Expenses'' 
and ``Educational and Cultural Exchange Programs'' accounts may 
not exceed by more than 5 percent the amount specifically 
authorized to be appropriated for each such account for a 
fiscal year. No other appropriations account may exceed by more 
than 10 percent the amount specifically authorized to be 
appropriated for such account for a fiscal year.
  (3) The requirements and limitations of subsection (a) shall 
not apply to the appropriation of funds pursuant to this 
subsection.
  (4) This subsection shall cease to have effect after 
September 30, 1993.
          * * * * * * *
       nondiscretionary personnel costs and currency fluctuations

  Sec. 704. (a) Amounts appropriated for a fiscal year to carry 
out this Act are authorized to be made available until 
expended.
  (b) There are authorized to be appropriated for the [United 
States Information Agency] Department of State, in addition to 
amounts otherwise authorized to be appropriated for the 
[Agency] Department of State, such sums as may be necessary for 
any fiscal year for increases in salary, pay, retirement, and 
other employee benefits authorized by law.
  (c)(1) In order to maintain the levels of program activity 
provided for by the annual authorizing legislation for the 
[United States Information Agency] Department of State, there 
are authorized to be appropriated for the [Agency] Department 
of State such sums as may be necessary for any fiscal year to 
offset adverse fluctuations in foreign currency exchange rates, 
or overseas wage and price changes, occurring after November 30 
of the earlier of (A) the calendar year which ended during the 
fiscal year preceding such fiscal year, or (B) the calendar 
year which preceded the calendar year during which the 
authorization of appropriations for such fiscal year was 
enacted.
  (2) In carrying out this subsection, there may be established 
a Buying Power Maintenance account.
  (3) In order to eliminate substantial gains to the approved 
levels of overseas operations for the [United States 
Information Agency] Department of State, the [Director] 
Secretary of State shall transfer to the Buying Power 
Maintenance account such amounts appropriated for ``Salaries 
and Expenses'' as the [Director] Secretary of State determines 
are excessive to the needs of the approved level of operations 
under that appropriation account because of fluctuations in 
foreign currency exchange rates or changes in overseas wages 
and prices.
  (4) In order to offset adverse fluctuations in foreign 
currency exchange rates or foreign wages and prices, the 
[Director] Secretary of State may transfer from the Buying 
Power Maintenance account to the ``Salaries and Expenses'' 
appropriations account such amounts as the [Director] Secretary 
of State determines are necessary to maintain the approved 
level of operations under that appropriation account.
  (5) Funds transferred by the [Director] Secretary of State 
from the Buying Power Maintenance account to another account 
shall be merged with and be available for the same purpose, and 
for the same time period, as the funds in that other account. 
Funds transferred by the [Director] Secretary of State from 
another account to the Buying Power Maintenance account shall 
be merged with the funds in the Buying Power Maintenance 
account and shall be available for the purposes of that account 
until expended.
  (6) Any restriction contained in an appropriation Act or 
other provision of law limiting the amounts that may be 
obligated or expended by the [United States Information Agency] 
Department of State shall be deemed to be adjusted to the 
extent necessary to offset the net effect of fluctuations in 
foreign currency exchange rates or overseas wage and price 
changes in order to maintain approved levels.
  (7)(A) Subject to the limitations contained in this 
paragraph, not later than the end of the 5th fiscal year after 
the fiscal year for which funds are appropriated or otherwise 
made available for the ``Salaries and Expenses'' account, the 
[Director] Secretary of State may transfer any unobligated 
balance of such funds to the Buying Power Maintenance account.
  (B) The balance of the Buying Power Maintenance account may 
not exceed $50,000,000 as a result of any transfer under this 
paragraph.
  (C) Any transfer pursuant to this paragraph shall be treated 
as a reprogramming of funds under section 705 and shall be 
available for obligation or expenditure only in accordance with 
the procedures under such section.
  (D) The authorities contained in this section may only be 
exercised to such an extent and in such amounts as specifically 
provided in advance in appropriation Acts.
  Sec. 705. (a) Unless the Committee on Foreign Affairs of the 
House of Representatives and the Committee on Foreign Relations 
of the Senate are notified fifteen days in advance of a 
proposed reprogramming, funds appropriated for the [United 
States Information Agency] Department of State shall not be 
available for obligation or expenditure through any such 
reprogramming of funds--
          (1) which creates new programs;
          (2) which eliminates a program, project, or activity;
          (3) which increases funds or personnel by any means 
        for any project or activity for which funds have been 
        denied or restricted by the Congress;
          (4) which relocates an office or employees;
          (5) which reorganizes offices, programs, or 
        activities;
          (6) which involves contracting out functions which 
        had been performed by Federal employees; or
          (7) which involves a reprogramming in excess of 
        $500,000 or 10 percent, whichever is less, and which 
        (A) augments existing programs, projects, or 
        activities, (B) reduces by 10 percent or more the 
        funding for any existing program, project, or activity, 
        or personnel approved by the Congress, or (C) results 
        from any general savings from a reduction in personnel 
        which would result in a change in existing programs, 
        activities, or projects approved by the Congress.
  (b) In addition, the [United States Information Agency] 
Department of State may award program grants only if the 
Committee on Foreign Affairs of the House of Representatives 
and the Committee on Foreign Relations of the Senate are 
notified fifteen days in advance of the proposed grant.
  (c) Funds appropriated for the [United States Information 
Agency] Department of State may not be available for obligation 
or expenditure through any reprogramming described in 
subsection (a) during the period which is the last 15 days in 
which such funds are available unless notice of such 
reprogramming is made before such period.
                 TITLE VIII--ADMINISTRATIVE PROCEDURES

                             the secretary

  Sec. 801. In carrying out the purposes of this Act, the 
Secretary is authorized, in addition to and not in limitation 
of the authority otherwise vested in him--
          (1) In carrying out title II of this Act, to make 
        grants of money, services, or materials to State and 
        local governmental institutions in the United States, 
        to governmental institutions in other countries, and to 
        individuals and public or private nonprofit 
        organizations both in the United States and in other 
        countries;
          (2) to furnish, sell, or rent, by contract or 
        otherwise, educational and information materials and 
        equipment for dissemination to, or use by, peoples of 
        foreign countries;
          (3) whenever necessary in carrying out title V of 
        this Act, to purchase, rent, construct, improve, 
        maintain, and operate facilities for radio and 
        television transmission and reception, including the 
        leasing of associated real property (either within or 
        outside the United States) for periods not to exceed 
        forty years, or for longer periods if provided for by 
        an appropriation Act, and the alteration, improvement, 
        and repair of such property, without regard to section 
        322 of the Act of June 30, 1932 (40 U.S.C. 278a), and 
        any such real property or interests therein which are 
        outside the United States may be acquired without 
        regard to section 355 of the Revised Statutes of the 
        United States (40 U.S.C. 255) if the sufficiency of the 
        title to such real property or interests therein is 
        approved by the [Director of the United States 
        Information Agency] Secretary of State;
          (4) to provide for printing and binding outside the 
        continental limits of the United States, without regard 
        to section 11 of the Act of March 1, 1919 (44 U.S.C. 
        111);
          (5) to employ persons on a temporary basis without 
        regard to the civil service and classification laws, 
        when such employment is provided for by the pertinent 
        appropriation Act;
          (6) to create with the approval of the Commission on 
        Information and the Commission on Educational Exchange, 
        such advisory committees as the Secretary may decide to 
        be of assistance in formulating his policies for 
        carrying out the purposes of this Act. No Committee 
        member shall be allowed any salary or other 
        compensation for services; but he may be paid his 
        transportation and other expenses, as authorized by 
        section 5 of the Administrative Expenses Act of 1946, 
        as amended (5 U.S.C. 73 b-2); and
          (7) notwithstanding any other provision of law, to 
        carry out projects involving security construction and 
        related improvements for [Agency] Department of State 
        facilities not physically located together with 
        Department of State facilities abroad.

                          government agencies

  Sec. 802. (a) In carrying on activities which further the 
purposes of this Act, subject to approval of such activities by 
the Secretary, the Department and the other Government agencies 
are authorized--
          (1) to place orders and make purchases and rentals of 
        materials and equipment;
          (2) to make contracts, including contracts with 
        governmental agencies, foreign or domestic, including 
        subdivisions thereof, and intergovernmental 
        organizations of which the United States is a member, 
        and, with respect to contracts entered into in foreign 
        countries, without regard to section 3741 of the 
        Revised Statutes (41 U.S.C. 22);
          (3) under such regulations as the Secretary may 
        prescribe, to pay the transportation expenses, and not 
        to exceed $10 per diem in lieu of subsistence and other 
        expenses, of citizens or subjects of other countries, 
        without regard to the Standardized Government Travel 
        Regulations and the Subsistence Act of 1926, as 
        amended; and
          (4) to make grants for, and to pay expenses incident 
        to, training and study.
  (b)(1) Any contract authorized by subsection (a) and 
described in paragraph (3) of this subsection which is funded 
on the basis of annual appropriations may nevertheless be made 
for periods not in excess of 5 years when--
          (A) appropriations are available and adequate for 
        payment for the first fiscal year and for all potential 
        cancellation costs; and
          (B) the [Director of the United States Information 
        Agency] Secretary of State determines that--
                  (i) the need of the Government for the 
                property or service being acquired over the 
                period of the contract is reasonably firm and 
                continuing;
                  (ii) such a contract will serve the best 
                interests of the United States by encouraging 
                effective competition or promoting economies in 
                performance and operation; and
                  (iii) such method of contracting will not 
                inhibit small business participation.
  (2) In the event that funds are not made available for the 
continuation of such a contract into a subsequent fiscal year, 
the contract shall be canceled and any cancellation costs 
incurred shall be paid from appropriations originally available 
for the performance of the contract, appropriations currently 
available for the acquisition of similar property or services 
and not otherwise obligated, or appropriations made for such 
cancellation payments.
  (3) This subsection applies to contracts for the procurement 
of property or services, or both, for the operation, 
maintenance, and support of programs, facilities, and 
installations for or related to telecommunication activities, 
newswire services, and the distribution of books and other 
publications in foreign countries.
  (4)(A) Notwithstanding the other provisions of this 
subsection, the [United States Information Agency] Department 
of State is authorized to enter into contracts for periods not 
to exceed 7 years for circuit capacity to distribute radio and 
television programs.
  (B) The authority of this paragraph may be exercised for a 
fiscal year only to such extent or in such amounts as are 
provided in advance in appropriations Acts.

       maximum use of existing government property and facilities

  Sec. 803. In carrying on activities under this Act which 
require the utilization of Government property and facilities, 
maximum use shall be made of existing Government property and 
facilities.

                            basic authority

  Sec. 804. In carrying out the provisions of this Act, the 
Secretary, or any Government agency authorized to administer 
such provisions, may--
          (1) employ, without regard to the civil service and 
        classification laws, aliens within the United States 
        and abroad for service in the United States relating to 
        the translation or narration of colloquial speech in 
        foreign languages or the preparation and production of 
        foreign language programs when suitably qualified 
        United States citizens are not available when job 
        vacancies occur, and aliens so employed abroad may be 
        admitted to the United States, if otherwise qualified, 
        as nonimmigrants under section 101(a)(15) of the 
        Immigration and Nationality Act (8 U.S.C. 1101(a)(15)) 
        for such time and under such conditions and procedures 
        as may be established by the [Director of the United 
        States Information Agency] Secretary of State and the 
        Attorney General;
          * * * * * * *

   seal of the [united states information agency] department of state
  Sec. 807. The seal of the [United States Information Agency] 
Department of State shall be the arms and crest of the United 
States, encircled by the words ``[United States Information 
Agency] Department of State''. Judicial notice shall be taken 
of the seal.

                       acting associate directors

  Sec. 808. If an Associate Director of the [United States 
Information Agency] Department of State dies, resigns, or is 
sick or absent, the Associate Director's principal assistant 
shall perform the duties of the office until a successor is 
appointed or the absence or sickness stops.
          * * * * * * *

                  use of english-teaching program fees

  Sec. 810. (a) Notwithstanding section 3302 of title 31, 
United States Code, or any other law or limitation of 
authority, fees received by or for the use of the [United 
States Information Agency] Department of State from or in 
connection with English-teaching and library services, and 
[Agency] Department of State-produced publications, and not to 
exceed $100,000 of payments from motion picture and television 
programs, produced or conducted by or on behalf of the [Agency] 
Department of State under the authority of this Act or the 
Mutual Educational and Cultural Exchange Act of 1961 is 
authorized to be credited each fiscal year to the appropriate 
appropriation of the [United States Information Agency] 
Department of State to such extent as may be provided in 
advance in an appropriation Act.

                            debt collection

  Sec. 811. (a) Contract Authority.--(1) Subject to the 
availability of appropriations, the [Director of the United 
States Information Agency] Secretary of State shall enter into 
contracts for collection services to recover indebtedness owed 
by a person, other than a foreign country, to the United States 
which arises out of activities of the [United States 
Information Agency] Department of State and is delinquent by 
more than 90 days.
  (2) Each contract entered into under this section shall 
provide that the person with whom the [Director of the United 
States Information Agency] Secretary of State enters into such 
contract shall submit to the [Director] Secretary of State at 
least once every 180 days a status report on the success of the 
person in collecting debts. Section 3718 of title 31, United 
States Code, shall apply to any such contract to the extent 
that such section is not inconsistent with this subsection.
  (b) Disclosure of Delinquent Debt to Credit Reporting 
Agencies.--The [Director of the United States Information 
Agency] Secretary of State shall, to the extent otherwise 
allowed by law, disclose to those credit reporting agencies to 
which the [Director] Secretary of State reports loan activity 
information concerning any debt of more than $100 owed by a 
person, other than a foreign country, to the United States 
which arises out of activities of the [United States 
Information Agency] Department of State and is delinquent by 
more than 31 days.

        [usia] department of state posts and personnel overseas

  Sec. 812. (a) Limitation.--Except as provided under this 
section no funds authorized to be appropriated to the [United 
States Information Agency] Department of State may be used to 
pay any expense associated with the closing of any [United 
States Information Agency] Department of State post abroad.
  (b) Notification.--Not less than 45 days before the closing 
of any [United States Information Agency] Department of State 
post abroad the [Director of the United States Information 
Agency] Secretary of State shall notify the Committee on 
Foreign Affairs of the House of Representatives and the 
Committee on Foreign Relations of the Senate.
  (c) Exceptions.--This section shall not apply to any [United 
States Information Agency] Department of State post closed--
          (1) because of a break or downgrading of diplomatic 
        relations between the United States and the country in 
        which the post is located; or
          (2) where there is a real and present threat to 
        United States diplomats in the city where the post is 
        located and where a travel advisory warning against 
        travel by United States citizens to the city has been 
        issued by the Department of State.
          * * * * * * *

                         TITLE X--MISCELLANEOUS

          * * * * * * *

                     informational media guaranties

  Sec. 1011. (a) The [Director of the United States Information 
Agency] Secretary of State may make guaranties, in accordance 
with the provisions of subsection (b) of section 413 of the 
Mutual Security Act of 1954, of investments in enterprises 
producing or distributing informational media consistent with 
the national interests of the United States: Provided, That the 
purpose of making informational media guaranties shall be the 
achievement of the foreign policy objectives of the United 
States, including the objective mentioned in sections 
413(b)(4)(A) and 413(b)(4)(G) of the Mutual Security Act of 
1954, as amended.
  (b) The [Director] Secretary of State is authorized to assume 
the obligation of not to exceed $28,000,000 of the notes 
authorized to be issued pursuant to subsection 111(c)(2) of the 
Economic Cooperation Act of 1948, as amended (22 U.S.C. 
1509(c)(2)), together with the interest accrued and unpaid 
thereon, and to obtain advances from time to time from the 
Secretary of the Treasury up to such amount, less amounts 
previously advanced on such notes, as provided for in said 
notes. Such advances shall be deposited in a special account in 
the Treasury available for payments under informational media 
guaranties.
  (c) The [Director] Secretary of State is authorized to make 
informational media guaranties without regard to the 
limitations of time contained in subsection 413(b)(4) of the 
Mutual Security Act of 1954, as amended (22 U.S.C. 1933(b)(4)), 
but the total of such guaranties outstanding at any one time 
shall not exceed the sum of the face amount of the notes 
assumed by the [Director] Secretary of State less the amounts 
previously advanced on such notes by the Secretary of the 
Treasury plus the amount of the funds in the special account 
referred to in subsection (b).
  (d) Foreign currencies available after June 30, 1955, from 
conversions made pursuant to the obligation of informational 
media guaranties may be sold, in accordance with Treasury 
Department regulations, for dollars which shall be deposited in 
the special account and shall be available for payments under 
new guaranties. Such currencies shall be available, as may be 
provided for by the Congress in appropriation Acts, for use of 
educational, scientific, and cultural purposes which are in the 
national interest of the United States, and for such other 
purposes of mutual interest as may be agreed to by the 
governments of the United States and the country from which the 
currencies derive.
  (e) Notwithstanding the provisions of subparagraph 
413(b)(4)(E) of the Mutual Security Act of 1954, as amended (22 
U.S.C. 1933(b)(4)(E), (1) fees collected for the issuance of 
informational media guaranties shall be deposited in the 
special account and shall be available for payments under 
informational media guaranties; and (2) the [Director] 
Secretary of State may require the payment of a minimum charge 
of up to fifty dollars for issuance of guaranty contracts, or 
amendments thereto.
  (f) The [Director] Secretary of State is further authorized, 
under such terms as he may prescribe, to make advance payments 
under informational media guaranties: Provided, That currencies 
receivable from holders of such guaranties on account of such 
advance payments shall be paid to the United States within nine 
months from the date of the advance payment and that 
appropriate security to assure such payments is required before 
any advance payment is made.
  (g) As soon as feasible after the enactment of this 
subsection, all assets, liabilities, income, expenses, and 
charges of whatever kind pertaining to informational media 
guaranties, including any charges against the authority to 
issue notes provided in section 111(c)(2) of the Economic 
Cooperation Act of 1948, as amended, cumulative from the 
enactment of that Act, shall be accounted for separately from 
other guaranties issued pursuant to subsection 413(b) of the 
Mutual Security Act of 1954, as amended (22 U.S.C. 1933(b)): 
Provided, That there shall be transferred from the special 
account established pursuant to subsection (b), into the 
account available for payments under guaranties other than 
informational media guaranties, an amount equal to the total of 
the fees received for the issuance of guaranties other than 
informational media guaranties, and used to make payments under 
informational media guaranties.
  (h)(1) There is authorized to be appropriated annually an 
amount to restore in whole or in part any realized impairment 
to the capital used in carrying on the authority to make 
informational media guaranties, as provided in subsection (c), 
through the end of the last completed fiscal year.
  (2) Such impairment shall consist of the amount by which the 
losses incurred and interest accrued on notes exceed the 
revenue earned and any previous appropriations made for the 
restoration of impairment. Losses shall include the dollar 
losses on foreign currencies sold, and the dollar cost of 
foreign currencies which (a) the Secretary of the Treasury, 
after consultation with the [Director] Secretary of State, has 
determined to be unavailable for, in excess of, requirements of 
the United States, or (b) have been transferred to other 
accounts without reimbursement to the special account.
  (3) Dollars appropriated pursuant to this section shall be 
applied to the payment of interest and in satisfaction of notes 
issued or assumed hereunder, and to the extent of such 
application to the principal of the notes, the [Director] 
Secretary of State is authorized to issue notes to the 
Secretary of the Treasury which will bear interest at a rate to 
be determined by the Secretary of the Treasury, taking into 
consideration the current average market yields of outstanding 
marketable obligations of the United States having maturities 
comparable to the guaranties. The currencies determined to be 
unavailable for, or in excess of requirements of the United 
States as provided above shall be transferred to the Secretary 
of the Treasury to be held until disposed of, and any dollar 
proceeds realized from such disposition shall be deposited in 
miscellaneous receipts.
  (4) Section 701(a) of this Act shall not apply with respect 
to any amounts appropriated under this section for the purpose 
of liquidating the notes (and any accrued interest thereon) 
which were assumed in the operation of the informational media 
guaranty program under this section and which were outstanding 
on the date of enactment of this paragraph.
                              ----------                              

          MUTUAL EDUCATIONAL AND CULTURAL EXCHANGE ACT OF 1961

                          (FULBRIGHT-HAYS ACT)

    AN ACT To provide for the improvement and strengthening of the 
international relations of the United States by promoting better mutual 
 understanding among the peoples of the world through educational and 
                          cultural exchanges.

  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act may be cited as the ``Mutual Educational and Cultural 
Exchange Act of 1961.''
          * * * * * * *
  Sec. 104. (a) The President may delegate, to such officers of 
the Government as he determines to be appropriate, any of the 
powers conferred upon him by this Act to the extent that he 
finds such delegation to be in the interest of the purposes 
expressed in this Act and the efficient administration of the 
programs undertaken pursuant to this Act: Provided, That where 
the President has delegated any of such powers to any officer, 
before the President implements any proposal for the delegation 
of any of such powers to another officer, that proposal shall 
be submitted to the Speaker of the House of Representatives and 
to the Committee on Foreign Relations of the Senate, and 
thereafter a period of not less than sixty days shall have 
elapsed while Congress is in session. In computing such sixty 
days, there shall be excluded the days on which either House is 
not in session because of an adjournment of more than three 
days.
  (b) The President is authorized to employ such other 
personnel as he deems necessary to carry out the provisions and 
purposes of this Act, and of such personnel not to exceed ten 
may be compensated without regard to the provisions of the 
Classification Act of 1949, as amended, but not in excess of 
the highest rate of grade 18 of the general schedule 
established by such Act. Such positions shall be in addition to 
the number authorized by section 505 of the Classification Act 
of 1949, as amended.
  (d) For the purpose of performing functions under this Act 
outside the United States, the President is authorized to 
provide that any person employed or assigned by a United States 
Government agency shall be entitled, except to the extent that 
the President may specify otherwise in cases in which the 
period of employment or assignment exceeds thirty months, to 
the same benefits as are provided by section 310 of the Foreign 
Service Act of 1980, for individuals appointed to the Foreign 
Service.
  (e)(1) In providing for the activities and interchanges 
authorized by section 102 of this Act, grants may be made to or 
for individuals, either directly or through foundations or 
educational or other institutions, which foundations or 
institutions are public or private nonprofit, and may include 
funds for tuition and other necessary incidental expenses, for 
travel expenses from their places of residence and return for 
themselves, and, whenever it would further the purposes of this 
Act, for the dependent members of their immediate families, for 
health and accident insurance premiums, emergency medical 
expenses, costs of preparing and transporting to their former 
homes the remains of any of such persons who may die while away 
from their homes as participants or dependents of participants 
in any program under this Act, and for per diem in lieu of 
subsistence at rates prescribed by the [Director of the 
International Communication Agency] Secretary of State, for all 
such persons, and for such other expenses as are necessary for 
the successful accomplishment of the purposes of this Act.
          * * * * * * *
  Sec. 106. (a)  * * *
          * * * * * * *
  [(c)(1) There is hereby continued the Advisory Committee on 
the Arts (hereinafter referred to as the ``Committee'') created 
under section 10 of the International Cultural Exchange and 
Trade Fair Participation Act of 1956, consisting of a Chairman 
and nine other members of whom at least one shall be a member 
of the Commission. Appointment of all members and selection of 
the Chairman of this Committee shall hereafter be made by the 
Secretary of State. In making such appointments due 
consideration shall be given to the recommendations for 
nomination submitted by leading national organizations in the 
major art fields.
  [(2) The members of the Committee shall be individuals whose 
knowledge of or experience in, or whose profound interest in, 
one or more of the arts will enable them to assist the 
Commission, the President, and other officers of the Government 
in performing the functions described in paragraph (3) of this 
subsection.
  [(3) The Committee shall, in connection with activities 
authorized under subsection 102(a)(2) of this Act--
          [(A) advise and assist the Commission in the 
        discharge of its responsibilities in the field of 
        international educational exchange and cultural 
        presentations with special reference to the role of the 
        arts in such fields;
          [(B) advise other interested officers of the 
        Government in the discharge of their responsibilities 
        in connection with such activities and in connection 
        with other international activities concerned with the 
        arts;
          [(C) provide such other advice and assistance as may 
        be necessary or appropriate.
  [(4) The term of office of each of the members of the 
Committee shall be three years.]
  (d) The President is authorized to create such interagency 
and other advisory committees as in his judgment may be of 
assistance in carrying out the purposes of this Act, and from 
time to time to convene conferences of persons interested in 
educational and cultural affairs to consider matters relating 
to the purposes of this Act.
  (e) The provisions of section 214 of the Act of May 3, 1945 
(59 Stat. 134; 31 U.S.C. 691), shall be applicable to any 
interagency committee created pursuant to the provisions of 
this Act. Members of the Commission, the Committee, and other 
committees provided for in this section shall be entitled (i) 
to transportation expenses and per diem in lieu of subsistence 
at the rate prescribed by or established pursuant to section 5 
of the Administrative Expense Act of 1946, as amended (5 U.S.C. 
73b-2), while away from home in connection with attendance at 
meetings or in consultation with officials of the Government or 
otherwise carrying out duties as authorized, and (ii) if not 
otherwise in the employ of the United States Government, to 
compensation at rates not in excess of $50 per diem while 
performing services for Commission, Committee, or other 
committee. Members of the Board shall be entitled to such 
expenses and per diem in lieu of subsistence as provided for 
under clause (i) of the preceding sentence and, while 
performing services for the Board, to compensation at a rate, 
prescribed by the [Director of the International Communication 
Agency] Secretary of State, not in excess of the daily rate for 
the first step of GS-15 of the General Schedule under section 
5332 of title 5, United States Code.
  (f) The President is authorized to provide for necessary 
secretarial and staff assistance for the Board, the Commission, 
the Committee, and such other committees as may be created 
under this section.
  Sec. 107. The Board, the Commission, and the Committee shall 
submit annual reports to the Congress and such other reports to 
the Congress as they deem appropriate, and shall make reports 
to the public in the United States and abroad to develop a 
better understanding of and support for the programs authorized 
by this Act.
  Sec. 108. (a)(1) Whenever the President determines it to be 
in furtherance of this Act, the functions authorized in section 
102(a) (2) and (3) may be performed without regard to such 
provisions of law or limitations of authority regulating or 
relating to the making, performance, amendment, or modification 
of contracts, the acquisition and disposition of property, and 
the expenditure of Government funds, as he may specify.
  (2) Notwithstanding any other provision of law, the [Director 
of the International Communication Agency] Secretary of State 
may provide, on a reimbursable basis, services within the 
United States in connection with exchange activities otherwise 
authorized by this Act when such services are requested by a 
department or executive agency. Reimbursements under this 
paragraph shall be credited to the applicable appropriation of 
the Agency.
          * * * * * * *
  Sec. 112. (a) [In order to carry out the purposes of this 
Act, there is established in the United States Information 
Agency, or in such appropriate agency of the United States as 
the President shall determine, a [Bureau] Department of State 
of Educational and Cultural Affairs (hereinafter in this 
section referred to as the ``[Bureau] Department of State'').] 
The [Bureau] Department of State shall be responsible for 
managing, coordinating, and overseeing programs established 
pursuant to this Act, including but not limited to--
          (1)  * * *
          * * * * * * *
  (c) The President shall insure that all programs under the 
authority of the [Bureau] Department of State shall maintain 
their nonpolitical character and shall be balanced and 
representative of the diversity of American political, social, 
and cultural life. The President shall insure that academic and 
cultural programs under the authority of the [Bureau] 
Department of State shall maintain their scholarly integrity 
and shall meet the highest standards of academic excellence or 
artistic achievement.
  (d) The [Bureau] Department of State shall administer no 
programs except those operating under the authority of this Act 
and consistent with its purposes.
  [(e) There is established in the Bureau of Educational and 
Cultural Affairs an Office of Citizen Exchanges. The Office 
shall support private not-for-profit organizations engaged in 
the exchange of persons between the United States and other 
countries.]
  (f)(1) The President shall ensure that all exchange programs 
conducted by the United States Government, its departments and 
agencies, directly or through agreements with other parties, 
are reported at a time and in a format prescribed by the 
[Director] Secretary of State. The President shall ensure that 
such exchanges are consistent with United States foreign policy 
and avoid duplication of effort.
          * * * * * * *
                              ----------                              


    FOREIGN RELATIONS AUTHORIZATION ACT, FISCAL YEARS 1994 AND 1995

          * * * * * * *

           TITLE I--DEPARTMENT OF STATE AND RELATED AGENCIES

          * * * * * * *

                   PART B--AUTHORITIES AND ACTIVITIES

          * * * * * * *
SEC. 135. CAPITAL INVESTMENT FUND.

  (a) Establishment.--There is established within the 
Department of State a Capital Investment Fund to provide for 
the procurement and enhancement of information technology and 
other related capital investments for the Department of State 
and to ensure the efficient management, coordination, 
operation, and utilization of such resources.
          * * * * * * *
  (c) Availability.--Amounts deposited into the Fund [are 
authorized to] shall remain available until expended.
  (d) Expenditures From the Fund.--Amounts deposited in the 
Fund shall be available [for expenditure to procure capital 
equipment and information technology] for purposes of 
subsection (a).
  [(e) Reprogramming Procedures.--Funds credited to the Capital 
Investment Fund shall be treated as a reprogramming of funds 
under section 34 of the State Department Basic Authorities Act 
of 1956 (22 U.S.C. 2710) and shall not be available for 
obligation or expenditure except in compliance with the 
procedures applicable to such reprogrammings.]
  (e) Reprogramming Procedures.--Funds credited to the Capital 
Investment Fund shall not be available for obligation or 
expenditure except in compliance with the procedures applicable 
to reprogrammings under section 34 of the State Department 
Basic Authorities Act of 1956 (22 U.S.C. 2710).
          * * * * * * *

SEC. 140. VISAS.

  (a) Surcharge for Processing Certain Visas.--
          (1) * * *
          [(2) Fees collected under the authority of paragraph 
        (1) shall be deposited as an offsetting collection to 
        any Department of State appropriation, to recover the 
        costs of providing consular services. Such fees shall 
        remain available for obligation until expended.
          [(3) For fiscal years 1994 and 1995, fees deposited 
        under the authority of paragraph (2) may not exceed a 
        total of $107,500,000. For subsequent fiscal years, 
        fees may be collected under the authority of paragraph 
        (1) only in such amounts as shall be prescribed in 
        subsequent authorization Acts.]
          (2) For fiscal years 1996 and 1997, not more than 
        $250,000,000 in fees collected under the authority of 
        paragraph (1) shall be deposited as an offsetting 
        collection to any Department of State appropriation to 
        recover the costs of the Department of State's border 
        security program, including the costs of--
                  (A) installation and operation of the machine 
                readable visa and automated name-check process;
                  (B) improving the quality and security of the 
                United States passport;
                  (C) passport and visa fraud investigations; 
                and
                  (D) the technological infrastructure to 
                support and operate the programs referred to in 
                paragraphs (A) through (C).
        Such fees shall remain available for obligation until 
        expended.
          (3) For any fiscal year, fees collected under the 
        authority of paragraph (1) in excess of the amount 
        specified for such fiscal year under paragraph (2) 
        shall be deposited in the general fund of the Treasury 
        as miscellaneous receipts.
          * * * * * * *
          [(5) No fee or surcharge authorized under paragraph 
        (1) may be charged to a citizen of a country that is a 
        signatory as of the date of enactment of this Act to 
        the North American Free Trade Agreement, except that 
        the Secretary of State may charge such fee or surcharge 
        to a citizen of such a country if the Secretary 
        determines that such country charges a visa application 
        or issuance fee to citizens of the United States.]
          * * * * * * *
  (h) Fingerprint Check Requirement.--If a visa applicant is 
determined to have a criminal history record under subsection 
(d)(1), has been physically present in the United States, and 
is more than 16 years of age, the applicant shall provide a 
fingerprint record for submission with the application, at no 
cost to the Department of State. The Department of State shall 
submit such fingerprint record to the Federal Bureau of 
Investigation for analysis to determine whether the applicant 
has been convicted of a felony under State or Federal law in 
the United States.
          * * * * * * *
                PART C--DEPARTMENT OF STATE ORGANIZATION

SEC. 161. ORGANIZATION OF THE DEPARTMENT OF STATE.

  (a) * * *
          * * * * * * *
  [(e) Office of the Coordinator for Counterterrorism.--
Notwithstanding any other provision of this section, for not 
less than one year after the date of the enactment of this Act 
there shall be in the Department of State an Office of the 
Coordinator for Counterterrorism which shall be headed by a 
Coordinator for Counterterrorism. The office shall have the 
same responsibilities and functions as the Office of the 
Coordinator for Counterterrorism at the Department of State had 
as of January 20, 1993.
  [(f) Deputy Assistant Secretary for Burdensharing.--
          [(1) Establishment.--None of the funds authorized to 
        be appropriated by this Act shall be available for 
        obligation or expenditure during fiscal year 1995 
        unless, not later than 90 days after the date of 
        enactment of this Act, the Secretary of State has 
        established within the Department of State the position 
        of Deputy Assistant Secretary for Burdensharing, the 
        incumbent of which shall be an official of 
        ambassadorial rank, appointed by the President by and 
        with the advice and consent of the Senate.
          [(2) Responsibilities.--The Deputy Assistant 
        Secretary for Burdensharing shall perform such duties 
        and exercise such authorities as the Secretary of State 
        shall prescribe, including the following:
                  [(A) The principal duty of negotiating 
                increased in-kind and financial support 
                (including increased payment of basing costs) 
                by countries allied to the United States for 
                Department of Defense military units and 
                personnel assigned to permanent duty ashore 
                outside the United States in support of the 
                security of such countries.
                  [(B) In consultation with the Department of 
                Defense, assist in negotiations with the host 
                governments for the recoupment of funds 
                associated with financial commitments from such 
                countries for paying the United States the 
                residual value of United States facilities in 
                such countries that the United States 
                relinquishes to such countries upon the 
                termination of the use of such facilities by 
                the United States.]
          * * * * * * *

   TITLE II--UNITED STATES INFORMATIONAL, EDUCATIONAL, AND CULTURAL 
                                PROGRAMS

          * * * * * * *

                   PART C--MIKE MANSFIELD FELLOWSHIPS

SEC. 251. SHORT TITLE.

  This part may be cited as the ``Mike Mansfield Fellowship 
Act''.

SEC. 252. ESTABLISHMENT OF FELLOWSHIP PROGRAM.

  (a) Establishment.--(1) There is hereby established the 
``Mike Mansfield Fellowship Program'' pursuant to which the 
[Director of the United States Information Agency] Secretary of 
State will make grants, subject to the availability of 
appropriations, to the Mansfield Center for Pacific Affairs to 
award fellowships to eligible United States citizens for 
periods of 2 years each (or, pursuant to section 253(5)(C), for 
such shorter period of time as the Center may determine based 
on a Fellow's level of proficiency in the Japanese language or 
knowledge of the political economy of Japan) as follows:
          (A)  * * *
          * * * * * * *
        TITLE III--UNITED STATES INTERNATIONAL BROADCASTING ACT
SEC. 301. SHORT TITLE.

  This title may be cited as the ``United States International 
Broadcasting Act of 1994''.
          * * * * * * *

SEC. 304. ESTABLISHMENT OF BROADCASTING BOARD OF GOVERNORS.

  (a) Establishment.--There is hereby established within the 
[United States Information Agency] Department of State a 
Broadcasting Board of Governors (hereafter in this title 
referred to as the ``Board'').
  (b) Composition of the Board.--
          (1) The Board shall consist of 9 members, as follows:
                  (A) 8 voting members who shall be appointed 
                by the President, by and with the advice and 
                consent of the Senate.
                  (B) The [Director of the United States 
                Information Agency] Secretary of State who 
                shall also be a voting member.
          (2) The President shall designate one member (other 
        than the [Director of the United States Information 
        Agency] Secretary of State) as Chairman of the Board.
          (3) Exclusive of the [Director of the United States 
        Information Agency] Secretary of State, not more than 4 
        of the members of the Board appointed by the President 
        shall be of the same political party.
  (c) Term of Office.--The term of office of each member of the 
Board shall be three years, except that the [Director of the 
United States Information Agency] Secretary of State shall 
remain a member of the Board during the Director's term of 
service. Of the other 8 voting members, the initial terms of 
office of two members shall be one year, and the initial terms 
of office of 3 other members shall be two years, as determined 
by the President. The President shall appoint, by and with the 
advice and consent of the Senate, Board members to fill 
vacancies occurring prior to the expiration of a term, in which 
case the members so appointed shall serve for the remainder of 
such term. Any member whose term has expired may serve until a 
successor has been appointed and qualified. When there is no 
[Director of the United States Information Agency] Secretary of 
State, the acting Director of the agency shall serve as a 
member of the Board until a Director is appointed.
  (d) Selection of Board.--Members of the Board appointed by 
the President shall be citizens of the United States who are 
not regular full-time employees of the United States 
Government. Such members shall be selected by the President 
from among Americans distinguished in the fields of mass 
communications, print, broadcast media, or foreign affairs.
  (e) Compensation.--Members of the Board, while attending 
meetings of the Board or while engaged in duties relating to 
such meetings or in other activities of the Board pursuant to 
this section (including travel time) shall be entitled to 
receive compensation equal to the daily equivalent of the 
compensation prescribed for level IV of the Executive Schedule 
under section 5315 of title 5, United States Code. While away 
from their homes or regular places of business, members of the 
Board may be allowed travel expenses, including per diem in 
lieu of subsistence, as authorized by law (5 U.S.C. 5703) for 
persons in the Government service employed intermittently. The 
[Director of the United States Information Agency] Secretary of 
State shall not be entitled to any compensation under this 
title, but may be allowed travel expenses as provided under 
this subsection.
  (f) Decisions.--Decisions of the Board shall be made by 
majority vote, a quorum being present. A quorum shall consist 
of 5 members.

SEC. 305. AUTHORITIES OF THE BOARD.

  (a) Authorities.--The Board shall have the following 
authorities:
          (1) To direct and supervise all broadcasting 
        activities conducted pursuant to this [title,] title 
        (including activities of the Voice of America 
        previously carried out by the United States Information 
        Agency), the Radio Broadcasting to Cuba Act, and the 
        Television Broadcasting to Cuba Act.
          (2) To review and evaluate the mission and operation 
        of, and to assess the quality, effectiveness, and 
        professional integrity of, all such activities within 
        the context of the broad foreign policy objectives of 
        the United States.
          (3) To ensure that United States international 
        broadcasting is conducted in accordance with the 
        standards and principles contained in section 303.
          (4) To review, evaluate, and determine, at least 
        annually, the addition or deletion of language 
        services.
          (5) To make and supervise grants for broadcasting and 
        related activities in accordance with sections 308 and 
        309.
          (6) To allocate funds appropriated for international 
        broadcasting activities among the various elements of 
        the International Broadcasting [Bureau] Office and 
        grantees, subject to the limitations in sections 308 
        and 309 and subject to reprogramming notification 
        requirements in law for the reallocation of funds.
          (7) To review engineering activities to ensure that 
        all broadcasting elements receive the highest quality 
        and cost-effective delivery services.
          (8) To undertake such studies as may be necessary to 
        identify areas in which broadcasting activities under 
        its authority could be made more efficient and 
        economical.
          (9) To submit to the President and the Congress, 
        through the [Director of the United States Information 
        Agency] Secretary of State, an annual report which 
        summarizes and evaluates activities under this title, 
        the Radio Broadcasting to Cuba Act, and the Television 
        Broadcasting to Cuba Act.
          (10) To the extent considered necessary to carry out 
        the functions of the Board, procure supplies, services, 
        and other personal property.
          (11) To appoint such staff personnel for the Board as 
        the Board may determine to be necessary, subject to the 
        provisions of title 5, United States Code, governing 
        appointments in the competitive service, and to fix 
        their compensation in accordance with the provisions of 
        chapter 51 and subchapter III of chapter 53 of such 
        title relating to classification and General Schedule 
        pay rates.
          (12) To obligate and expend, for official reception 
        and representation expenses, such amount as may be made 
        available through appropriations (which for each of the 
        fiscal years 1994 and 1995 may not exceed the amount 
        made available to the Board for International 
        Broadcasting for such purposes for fiscal year 1993).
          (13) To make available in the annual report required 
        by paragraph (9) information on funds expended on 
        administrative and managerial services by the [Bureau] 
        Office and by grantees and the steps the Board has 
        taken to reduce unnecessary overhead costs for each of 
        the broadcasting services.
          (14) The Board may provide for the use of United 
        States Government transmitter capacity for relay of 
        Radio Free Asia.
  (b) Broadcasting Budgets.--
          (1) The Director of the [Bureau] Office and the 
        grantees identified in sections 308 and 309 shall 
        submit proposed budgets to the Board. The Board shall 
        forward its recommendations concerning the proposed 
        budget for the Board and broadcasting activities under 
        this title, the Radio Broadcasting to Cuba Act, and the 
        Television Broadcasting to Cuba Act to the [Director of 
        the United States Information Agency] Secretary of 
        State for the consideration of the Director as a part 
        of the [Agency's] Department's budget submission to the 
        Office of Management and Budget.
          (2) The [Director of the United States Information 
        Agency] Secretary of State shall include in the 
        Agency's submission to the Office of Management and 
        Budget the comments and recommendations of the Board 
        concerning the proposed broadcasting budget.
  (c) Implementation.--The [Director of the United States 
Information Agency] Secretary of State and the Board, in 
carrying out their functions, shall respect the professional 
independence and integrity of the International Broadcasting 
[Bureau] Office, its broadcasting services, and grantees.
  (d) Technical Amendment.--
          (1) Section 4 of the Radio Broadcasting to Cuba Act 
        (22 U.S.C. 1465b) is amended by striking ``and the 
        Associate Director for Broadcasting of the [United 
        States Information Agency] Department of State'' and 
        inserting ``of the Voice of America''.
          (2) Section 5(b) of the Radio Broadcasting to Cuba 
        Act (22 U.S.C.1465c(b)) is amended by striking 
        ``Director and Associate Director for Broadcasting of 
        the [United States Information Agency] Department of 
        State'' and inserting ``Broadcasting Board of 
        Governors''.

SEC. 306. FOREIGN POLICY GUIDANCE.

  To assist the Board in carrying out its functions, the 
Secretary of State[, acting through the Director of the United 
States Information Agency,], acting through the Under Secretary 
of State for Public Diplomacy, shall provide information and 
guidance on foreign policy issues to the Board.

SEC. 307. INTERNATIONAL BROADCASTING [BUREAU] OFFICE.

  (a) Establishment.--There is hereby established an 
International Broadcasting [Bureau] Office within the [United 
States Information Agency] Department of State (hereafter in 
this title referred to as the ``[Bureau] Office''), to carry 
out all nonmilitary international broadcasting activities 
supported by the United States Government other than those 
described in sections 308 and 309.
  (b) Selection of the Director of the [Bureau] Office.--
          (1) The Director of the [Bureau] Office shall be 
        appointed by the Chairman of the Board, in consultation 
        with the [Director of the United States Information 
        Agency] Secretary of State and with the concurrence of 
        a majority of the Board. The Director of the [Bureau] 
        Office shall be entitled to receive compensation at the 
        rate prescribed by law for level IV of the Executive 
        Schedule.
          (2) Section 5315 of title 5, United States Code, is 
        amended by adding at the end the following:
          ``Director of the International Broadcasting [Bureau] 
        Office, the [United States Information Agency] 
        Department of State.''.

SEC. 308. LIMITS ON GRANTS FOR RADIO FREE EUROPE AND RADIO LIBERTY.

  (a) Board of RFE/RL, Incorporated.--The Board may not make 
any grant to RFE/RL, Incorporated, unless the certificate of 
incorporation of RFE/RL, Incorporated, has been amended to 
provide that--
          (1) the Board of Directors of RFE/RL, Incorporated, 
        shall consist of the members of the Broadcasting Board 
        of Governors established under section 304 and of no 
        other members; and
          (2) such Board of Directors shall make all major 
        policy determinations governing the operation of RFE/
        RL, Incorporated, and shall appoint and fix the 
        compensation of such managerial officers and employees 
        of RFE/RL, Incorporated, as it considers necessary to 
        carry out the purposes of the grant provided under this 
        title.
  (b) Location of Principal Place of Business.--
          (1) The Board may not make any grant to RFE/RL, 
        Incorporated unless the headquarters of RFE/RL, 
        Incorporated and its senior administrative and 
        managerial staff are in a location which ensures 
        economy, operational effectiveness, and accountability 
        to the Board.
          (2) Not later than 90 days after confirmation of all 
        members of the Board, the Board shall provide a report 
        to Congress on the number of administrative, 
        managerial, and technical staff of RFE/RL, Incorporated 
        who will be located within the metropolitan area of 
        Washington, D.C., and the number of employees whose 
        principal place of business will be located outside the 
        metropolitan area of Washington, D.C.
  (c) Limitation on Grant Amounts.--The total amount of grants 
made by the Board for the operating costs of Radio Free Europe 
and Radio Liberty may not exceed $75,000,000 for any fiscal 
year after fiscal year 1995.
  (d) Alternative Grantee.--If the Board determines at any time 
that RFE/RL, Incorporated, is not carrying out the functions 
described in section 309 in an effective and economical manner, 
the Board may award the grant to carry out such functions to 
another entity after soliciting and considering applications 
from eligible entities in such manner and accompanied by such 
information as the Board may reasonably require.
  (e) Not a Federal Agency or Instrumentality.--Nothing in this 
title may be construed to make RFE/RL, Incorporated a Federal 
agency or instrumentality.
  (f) Authority.--Grants authorized under section 305 for RFE/
RL, Incorporated, shall be available to make annual grants for 
the purpose of carrying out similar functions as were carried 
out by RFE/RL, Incorporated, on the day before the date of 
enactment of this Act with respect to Radio Free Europe and 
Radio Liberty, consistent with section 2 of the Board for 
International Broadcasting Act of 1973, as in effect on such 
date.
  (g) Grant Agreement.--Grants to RFE/RL, Incorporated, by the 
Board shall only be made in compliance with a grant agreement. 
The grant agreement shall establish guidelines for such grants. 
The grant agreement shall include the following provisions--
          (1) that a grant be used only for activities which 
        the Board determines are consistent with the purposes 
        of subsection (f);
          (2) that RFE/RL, Incorporated, shall otherwise comply 
        with the requirements of this section;
          (3) that failure to comply with the requirements of 
        this section may result in suspension or termination of 
        a grant without further obligation by the Board or the 
        United States;
          (4) that duplication of language services and 
        technical operations between RFE/RL, Incorporated and 
        the International Broadcasting [Bureau] Office be 
        reduced to the extent appropriate, as determined by the 
        Board; and
          (5) that RFE/RL, Incorporated, justify in detail each 
        proposed expenditure of grant funds, and that such 
        funds may not be used for any other purpose unless the 
        Board gives its prior written approval.
  (h) Prohibited Uses of Grant Funds.--No grant funds provided 
under this section may be used for the following purposes:
          (1)(A) Except as provided in subparagraph (B), to pay 
        any salary or other compensation, or enter into any 
        contract providing for the payment of salary or 
        compensation in excess of the rates established for 
        comparable positions under title 5 of the United States 
        Code or the foreign relations laws of the United 
        States, except that no employee may be paid a salary or 
        other compensation in excess of the rate of pay payable 
        for level IV of the Executive Schedule under section 
        5315 of title 5, United States Code.
          (B) Salary and other compensation limitations under 
        subparagraph (A) shall not apply prior to October 1, 
        1995, with respect to any employee covered by a union 
        agreement requiring a salary or other compensation in 
        excess of such limitations.
          (2) For any activity for the purpose of influencing 
        the passage or defeat of legislation being considered 
        by Congress.
          (3) To enter into a contract or obligation to pay 
        severance payments for voluntary separation for 
        employees hired after December 1, 1990, except as may 
        be required by United States law or the laws of the 
        country where the employee is stationed.
          (4) For first class travel for any employee of RFE/
        RL, Incorporated, or the relative of any employee.
          (5) To compensate freelance contractors without the 
        approval of the Board.
  (i) Report on Management Practices.--(1) Effective not later 
than March 31 and September 30 of each calendar year, the 
Inspector General of the [United States Information Agency] 
Department of State shall submit to the Board, the [Director of 
the United States Information Agency] Secretary of State, and 
the Congress a report on management practices of RFE/RL, 
Incorporated, under this section. The Inspector General of the 
[United States Information Agency] Department of State shall 
establish a special unit within the Inspector General's office 
to monitor and audit the activities of RFE/RL, Incorporated, 
and shall provide for on-site monitoring of such activities.
  (j) Audit Authority.--
          (1) Such financial transactions of RFE/RL, 
        Incorporated, as relate to functions carried out under 
        this section may be audited by the General Accounting 
        Office in accordance with such principles and 
        procedures and under such rules and regulations as may 
        be prescribed by the Comptroller General of the United 
        States. Any such audit shall be conducted at the place 
        or places where accounts of RFE/RL, Incorporated, are 
        normally kept.
          (2) Representatives of the General Accounting Office 
        shall have access to all books, accounts, records, 
        reports, files, papers, and property belonging to or in 
        use by RFE/RL, Incorporated pertaining to such 
        financial transactions and necessary to facilitate an 
        audit. Such representatives shall be afforded full 
        facilities for verifying transactions with any assets 
        held by depositories, fiscal agents, and custodians. 
        All such books, accounts, records, reports, files, 
        papers, and property of RFE/RL, Incorporated, shall 
        remain in the possession and custody of RFE/RL, 
        Incorporated.
          (3) Notwithstanding any other provision of law and 
        upon repeal of the Board for International Broadcasting 
        Act, the Inspector General of the [United States 
        Information Agency] Department of State is authorized 
        to exercise the authorities of the Inspector General 
        Act of 1978 with respect to RFE/RL, Incorporated.
  (k) Plan for Relocation.--None of the funds authorized to be 
appropriated for the fiscal years 1994 or 1995 may be used to 
relocate the offices or operations of RFE/RL, Incorporated from 
Munich, Germany, unless--
          (1) such relocation is specifically provided for in 
        an appropriation Act or pursuant to a reprogramming 
        notification; and
          (2)(A) such relocation is authorized by the Board and 
        the Board submits to the Comptroller General of the 
        United States and the appropriate Congressional 
        committees a detailed plan for such relocation, 
        including cost estimates and any and all fiscal data, 
        audits, business plans, and other documents which 
        justify such relocation; or
          (B) prior to the confirmation of all members of the 
        Board, such relocation is authorized by the President, 
        the President certifies that a significant national 
        interest requires that such relocation determination be 
        made before the confirmation of all members of the 
        Board, and the President submits to the Comptroller 
        General of the United States and the appropriate 
        congressional committees a detailed plan for such 
        relocation, including cost estimates and any and all 
        fiscal data, audits, business plans, and other 
        documents which justify such relocation.
  (l) Reports on Personnel Classification.--Not later than 90 
days after the date of confirmation of all members of the 
Board, the Board shall submit a report to the Congress 
containing a justification, in terms of the types of duties 
performed at specific rates of salary and other compensation, 
of the classification of personnel employed by RFE/RL, 
Incorporated. The report shall include a comparison of the 
rates of salary or other compensation and classifications 
provided to employees of RFE/RL, Incorporated, with the rates 
of salary or other compensation and classifications of 
employees of the Voice of America stationed overseas in 
comparable positions and shall identify any disparities and 
steps which should be taken to eliminate such disparities.

SEC. 309. RADIO FREE ASIA.

  (a) Authority.--
          (1) Grants authorized under section 305 shall be 
        available to make annual grants for the purpose of 
        carrying out radio broadcasting to the following 
        countries: The People's Republic of China, Burma, 
        Cambodia, Laos, North Korea, Tibet, and Vietnam.
          (2) Such broadcasting service shall be referred to as 
        ``Radio Free Asia''.
  (b) Functions.--Radio Free Asia shall--
          (1) provide accurate and timely information, news, 
        and commentary about events in the respective countries 
        of Asia and elsewhere; and
          (2) be a forum for a variety of opinions and voices 
        from within Asian nations whose people do not fully 
        enjoy freedom of expression.
  (c) Submission of Detailed Plan for Radio Free Asia.--
          (1) No grant may be awarded to carry out this section 
        unless the Board, through the [Director of the United 
        States Information Agency] Secretary of State, has 
        submitted to Congress a detailed plan for the 
        establishment and operation of Radio Free Asia, 
        including--
                  (A) a description of the manner in which 
                Radio Free Asia would meet the funding 
                limitations provided in subsection (d)(4);
                  (B) a description of the numbers and 
                qualifications of employees it proposes to 
                hire; and
                  (C) how it proposes to meet the technical 
                requirements for carrying out its 
                responsibilities under this section.
          (2) The plan required by paragraph (1) shall be 
        submitted not later than 90 days after the date on 
        which all members of the Board are confirmed.
          (3) No grant may be awarded to carry out the 
        provisions of this section unless the plan submitted by 
        the Board includes a certification by the Board that 
        Radio Free Asia can be established and operated within 
        the funding limitations provided for in subsection 
        (d)(4) and subsection (d)(5).
          (4) If the Board determines that a Radio Free Asia 
        cannot be established or operated effectively within 
        the funding limitations provided for in this section, 
        the Board may submit, through the [Director of the 
        United States Information Agency] Secretary of State, 
        an alternative plan and such proposed changes in 
        legislation as may be necessary to the appropriate 
        congressional committees.
  (d) Grant Agreement.--Any grant agreement or grants under 
this section shall be subject to the following limitations and 
restrictions:
          (1)(A) The Board may not make any grant to Radio Free 
        Asia unless the headquarters of Radio Free Asia and its 
        senior administrative and managerial staff are in a 
        location which ensures economy, operational 
        effectiveness, and accountability to the Board.
          (B) Not later than 90 days after confirmation of all 
        members of the Board, the Board shall provide a report 
        to Congress on the number of administrative, 
        managerial, and technical staff of Radio Free Asia who 
        will be located within the metropolitan area of 
        Washington, D.C., and the number of employees whose 
        principal place of business will be located outside the 
        metropolitan area of Washington, D.C.
          (2) Any grant agreement under this section shall 
        require that any contract entered into by Radio Free 
        Asia shall specify that all obligations are assumed by 
        Radio Free Asia and not by the United States 
        Government, and shall further specify that funds to 
        carry out the activities of Radio Free Asia may not be 
        available after September 30, 1999.
          (3) Any grant agreement shall require that any lease 
        agreements entered into by Radio Free Asia shall be, to 
        the maximum extent possible, assignable to the United 
        States Government.
          (4) Grants made for the operating costs of Radio Free 
        Asia may not exceed $22,000,000 in any fiscal year.
          (5) The total amount of grant funds made available 
        for one-time capital costs of Radio Free Asia may not 
        exceed $8,000,000.
          (6) Grants awarded under this section shall be made 
        pursuant to a grant agreement which requires that grant 
        funds be used only for activities consistent with this 
        section, and that failure to comply with such 
        requirements shall permit the grant to be terminated 
        without fiscal obligation to the United States.
  (e) Limitations on Administrative and Managerial Costs.--It 
is the sense of the Congress that administrative and managerial 
costs for operation of Radio Free Asia should be kept to a 
minimum and, to the maximum extent feasible, should not exceed 
the costs that would have been incurred if Radio Free Asia had 
been operated as a Federal entity rather than as a grantee.
  (f) Assessment of the Effectiveness of Radio Free Asia.--Not 
later than 3 years after the date on which initial funding is 
provided for the purpose of operating Radio Free Asia, the 
Board shall submit to the appropriate congressional committees 
a report on--
          (1) whether Radio Free Asia is technically sound and 
        cost-effective,
          (2) whether Radio Free Asia consistently meets the 
        standards for quality and objectivity established by 
        this title,
          (3) whether Radio Free Asia is received by a 
        sufficient audience to warrant its continuation,
          (4) the extent to which such broadcasting is already 
        being received by the target audience from other 
        credible sources; and
          (5) the extent to which the interests of the United 
        States are being served by maintaining broadcasting of 
        Radio Free Asia.
  (g) Sunset Provision.--The Board may not make any grant for 
the purpose of operating Radio Free Asia after September 30, 
1998, unless the President of the United States determines in 
the President's fiscal year 1999 budget submission that 
continuation of funding for Radio Free Asia for 1 additional 
year is in the interest of the United States.
  (h) Notification and Consultation Regarding Displacement of 
Voice of America Broadcasting.--The Board shall notify the 
appropriate congressional committees before entering into any 
agreements for the utilization of Voice of America 
transmitters, equipment, or other resources that will 
significantly reduce the broadcasting activities of the Voice 
of America in Asia or any other region in order to accommodate 
the broadcasting activities of Radio Free Asia. The Chairman of 
the Board shall consult with such committees on the impact of 
any such reduction in Voice of America broadcasting activities.
  (i) Not a Federal Agency or Instrumentality.--Nothing in this 
title may be construed to make Radio Free Asia a Federal agency 
or instrumentality.
SEC. 310. TRANSITION.

  (a) Authorization.--
          (1) The President is authorized consistent with the 
        purposes of this Act to direct the transfer of all 
        functions and authorities from the Board for 
        International Broadcasting to the [United States 
        Information Agency] Department of State, the Board, or 
        the [Bureau] Office as may be necessary to implement 
        this title.
          (2)(A) Not later than 120 days after the date of 
        enactment of this Act, the [Director of the United 
        States Information Agency] Secretary of State and the 
        Chairman of the Board for International Broadcasting 
        shall jointly prepare and submit to the President for 
        approval and implementation a plan to implement the 
        provisions of this title. Such plan shall include at a 
        minimum a detailed cost analysis to implement fully the 
        recommendations of such plan. The plan shall identify 
        all costs in excess of those authorized for such 
        purposes and shall provide that any excess cost to 
        implement the plan shall be derived only from funds 
        authorized in section 201 of this Act.
          (B) The President shall transmit copies of the 
        approved plan, together with any recommendations for 
        legislative changes that may be necessary, to the 
        appropriate congressional committees.
  (b) New Appointees.--The [Director of the United States 
Information Agency] Secretary of State may assign employees of 
the Agency for service with RFE/RL, Incorporated, with the 
concurrence of the president of RFE/RL, Incorporated. Such 
assignment shall not affect the rights and benefits of such 
personnel as employees of the [United States Information 
Agency] Department of State.
  (c) Board for International Broadcasting Personnel.--All 
Board for International Broadcasting full-time United States 
Government personnel (except special Government employees) and 
part-time United States Government personnel holding permanent 
positions shall be transferred to the [United States 
Information Agency] Department of State, the Board, or the 
[Bureau] Office. Such transfer shall not cause any such 
employee to be separated or reduced in grade or compensation.
  (d) Other Authorities.--The [Director of the United States 
Information Agency] Secretary of State is authorized to utilize 
the provisions of titles VIII and IX of the United States 
Information and Educational Exchange Act of 1948, and any other 
authority available to the Director on the date of enactment of 
this Act, to the extent that the Director considers necessary 
in carrying out the provisions and purposes of this title.
  (e) Repeal.--The Board for International Broadcasting Act of 
1973 (22 U.S.C. 2871, et seq.) is repealed effective September 
30, 1995, or the date on which all members of the Board are 
confirmed, whichever is earlier.
  (f) Savings Provisions.--
          (1) Continuing effect of legal documents.--All 
        orders, determinations, rules, regulations, permits, 
        agreements, grants, contracts, certificates, licenses, 
        registrations, privileges, and other administrative 
        actions--
                  (A) which have been issued, made, granted, or 
                allowed to become effective by the President, 
                any Federal agency or official thereof, or by a 
                court of competent jurisdiction, in the 
                performance of functions which are transferred 
                under this title; and
                  (B) which are in effect at the time this 
                title takes effect, or were final before the 
                effective date of this title and are to become 
                effective on or after the effective date of 
                this title,
        shall continue in effect according to their terms until 
        modified, terminated, superseded, set aside, or revoked 
        in accordance with law by the President, the [Director 
        of the United States Information Agency] Secretary of 
        State or other authorized official, a court of 
        competent jurisdiction, or by operation of law.
          (2) Proceedings not affected.--The provisions of this 
        title shall not affect any proceedings pending before 
        the Board for International Broadcasting at the time 
        this title takes effect, with respect to functions 
        transferred by this title, but such proceedings shall 
        be continued. Orders shall be issued in such 
        proceedings, appeals shall be taken therefrom, and 
        payments shall be made pursuant to such orders, as if 
        this title had not been enacted, and orders issued in 
        any such proceedings shall continue in effect until 
        modified, terminated, superseded, or revoked by a duly 
        authorized official, by a court of competent 
        jurisdiction, or by operation of law. Nothing in this 
        subsection shall be deemed to prohibit the termination 
        or modification of any such proceeding under the same 
        terms and conditions and to the same extent that such 
        proceeding could have been terminated or modified if 
        this title had not been enacted.
          (3) Suits not affected.--The provisions of this title 
        shall not affect suits commenced before the effective 
        date of this title, and in all such suits, proceedings 
        shall be had, appeals taken, and judgments rendered in 
        the same manner and with the same effect as if this 
        title had not been enacted.
          (4) Nonabatement of actions.--No suit, action, or 
        other proceeding commenced by or against the Board for 
        International Broadcasting or by or against any 
        individual in the official capacity of such individual 
        as an officer of the Board for International 
        Broadcasting shall abate by reason of the enactment of 
        this title.
          (5) Administrative actions relating to promulgation 
        of regulations.--Any administrative action relating to 
        the preparation or promulgation of a regulation by the 
        Board for International Broadcasting relating to a 
        function transferred under this title may be continued 
        by the [United States Information Agency] Department of 
        State with the same effect as if this title had not 
        been enacted.
          (6) References.--A reference in any provision of law, 
        reorganization plan, or other authority to the 
        Associate Director for Broadcasting of the [United 
        States Information Agency] Department of State shall be 
        considered to be a reference to the Director of the 
        International Broadcasting [Bureau] Office of the 
        [United States Information Agency] Department of State.
          (7) Effect on other laws.--The provisions of, and 
        authorities contained in or transferred pursuant to, 
        this title are not intended to repeal, limit, or 
        otherwise derogate from the authorities or functions of 
        or available to the [Director of the United States 
        Information Agency] Secretary of State or the Secretary 
        of State under law, reorganization plan, or otherwise, 
        unless such provision hereof--
                  (A) specifically refers to the provision of 
                law or authority existing on the effective date 
                of this title, so affected; or
                  (B) is in direct conflict with such law or 
                authority existing on the effective date of 
                this title.
SEC. 311. PRESERVATION OF AMERICAN JOBS.

  It is the sense of the Congress that the [Director of the 
United States Information Agency] Secretary of State and the 
Chairman of the Board for International Broadcasting should, in 
developing the plan for consolidation and reorganization of 
overseas international broadcasting services, limit, to the 
maximum extent feasible, consistent with the purposes of the 
consolidation, elimination of any United States-based positions 
and should affirmatively seek to transfer as many positions as 
possible to the United States.

SEC. 312. PRIVATIZATION OF RADIO FREE EUROPE AND RADIO LIBERTY.

  (a) Declaration of Policy.--It is the sense of the Congress 
that, in furtherance of the objectives of section 302 of this 
Act, the funding of Radio Free Europe and Radio Liberty should 
be assumed by the private sector not later than December 31, 
1999, and that the funding of Radio Free Europe and Radio 
Liberty Research Institute should be assumed by the private 
sector at the earliest possible time.
  (b) Presidential Submission.--The President shall submit with 
his annual budget submission as provided for in section 307 an 
analysis and recommendations for achieving the objectives of 
subsection (a).
  (c) Reports on Transfer of RFE/RL Research Institute.--Not 
later than 120 days after the date of enactment of this Act, 
the Board for International Broadcasting, or the Board, if 
established, shall submit to the appropriate congressional 
committees a report on the steps being taken to transfer RFE/RL 
Research Institute pursuant to subsection (a) and shall provide 
periodic progress reports on such efforts until such transfer 
has been achieved.
          * * * * * * *
                              ----------                              


                  TELEVISION BROADCASTING TO CUBA ACT

SEC. 243. TELEVISION BROADCASTING TO CUBA.

  (a) Television Broadcasting to Cuba.--In order to carry out 
the purposes set forth in section 242 and notwithstanding the 
limitation of section 501 of the United States Information and 
Educational Exchange Act of 1948 (22 U.S.C. 1461) with respect 
to the dissemination in the United States of information 
prepared for dissemination abroad to the extent such 
dissemination is inadvertent, the [United States Information 
Agency (hereafter in this part referred to as the ``Agency'')] 
Department of State (hereafter in this part referred to as the 
``Department'') shall provide for the open communication of 
information and ideas through the use of television 
broadcasting to Cuba. Television broadcasting to Cuba shall 
serve as a consistently reliable and authoritative source of 
accurate, objective, and comprehensive news.
          * * * * * * *

SEC. 244. TELEVISION MARTI SERVICE OF THE UNITED STATES INFORMATION 
                    AGENCY.

  (a) Television Marti Service.--[The Director of the United 
States Information Agency shall establish within the Voice of 
America a Television Marti Service.] The Secretary of State 
shall administer within the Voice of America the Television 
Marti Service. The Service shall be responsible for all 
television broadcasts to Cuba authorized by this part. The 
[Director of the United States Information Agency] Secretary of 
State shall appoint a head of the Service who shall report 
directly to the Director of the Voice of America. The head of 
the Service shall employ such staff as the head of the Service 
may need to carry out the duties of the Service.
  (b) Use of Existing Facilities of the [USIA] Department of 
State.--To assure consistency of presentation and efficiency of 
operations in conducting the activities authorized under this 
part, the Television Marti Service shall make maximum feasible 
utilization of [Agency facilities] Department facilities and 
management support, including Voice of America: Cuba Service, 
Voice of America, and the [United States Information Agency 
Television Service] Department of State Television Service.
  (c) [USIA Authority.--The Agency] Secretary of State 
Authority.--The Secretary of State may carry out the purposes 
of this part by means of grants, leases, or contracts (subject 
to the availability of appropriations), or such other means as 
the [Agency] Secretary of State determines will be most 
effective.
          * * * * * * *

SEC. 246. ASSISTANCE FROM OTHER GOVERNMENT AGENCIES.

  In order to assist the [United States Information Agency] 
Department of State in carrying out the provisions of this 
part, any agency or instrumentality of the United States may 
sell, loan, lease, or grant property (including interests 
therein) and may perform administrative and technical support 
and services at the request of [the Agency] the Department.

SEC. 247. AUTHORIZATION OF APPROPRIATIONS.

  [(a) Authorization of Appropriations.--In addition to amounts 
otherwise made available under section 201 for such purposes, 
there are authorized to be appropriated to the United States 
Information Agency, $16,000,000 for the fiscal year 1990 and 
$16,000,000 for the fiscal year 1991 for television 
broadcasting to Cuba in accordance with the provisions of this 
part.]
          * * * * * * *
                              ----------                              

                     RADIO BROADCASTING TO CUBA ACT

          * * * * * * *

    additional functions of the [united states information agency] 
                          Department of state

    Sec. 3. (a) In order to carry out the objectives set forth 
in section 2, the [United States Information Agency (hereafter 
in this Act referred to as the ``Agency'')] Department of State 
(hereafter in this Act referred to as the ``Department'') shall 
provide for the open communication of information and ideas 
through the use of radio broadcasting to Cuba. Radio 
broadcasting to Cuba shall serve as a consistently reliable and 
authoritative source of accurate, objective, and comprehensive 
news.
          * * * * * * *
    (f) In the event broadcasting facilities located at 
Marathon, Florida, are rendered inoperable by natural disaster 
or by unlawful destruction, the [Director of the United States 
Information Agency] Secretary of State may, for the period in 
which the facilities are inoperable but not to exceed one 
hundred and fifty days, use other United States Government-
owned transmission facilities for Voice of America broadcasts 
to Cuba authorized by this Act.

                  cuba service of the voice of america

    Sec. 4. [The Director of the United States Information 
Agency shall establish within the Voice of America a Cuba 
Service (hereafter in this section referred to as the 
``Service'').] The Secretary of State shall administer within 
the Voice of America the Cuba Service (hereafter in this 
section referred to as the ``Service''). The Service shall be 
responsible for all radio broadcasts to Cuba authorized by 
section 3. The [Director of the United States Information 
Agency] Secretary of State shall appoint a head of the Service 
and shall employ such staff as the head of the Service may need 
to carry out his duties. The Cuba Service shall be administered 
separately from other Voice of America functions and the head 
of the Cuba Service shall report directly to the Director of 
the Voice of America.
          * * * * * * *
               assistance from other government agencies

    Sec. 6. (a) In order to assist the [United States 
Information Agency] Department of State in carrying out the 
purposes set forth in section 2, any agency or instrumentality 
of the United States may sell, loan, lease, or grant property 
(including interests therein) and may perform administrative 
and technical support and services at the request of [the 
Agency] the Department. Support and services shall be provided 
on a reimbursable basis. Any reimbursement shall be credited to 
the appropriation from which the property, support, or services 
was derived.
    (b) [The Agency] The Department may carry out the purposes 
of section 3 by means of grants, leases, or contracts (subject 
to the availability of appropriations), or such other means as 
[the Agency] the Secretary of State determines will be most 
effective.

                         facility compensation

    Sec. 7. (a)* * *
    (b) Accordingly, the [Agency] Department may make payments 
to the United States radio broadcasting station licensees upon 
their application for expenses which they have incurred before, 
on or after the date of this Act in mitigating, pursuant to 
special temporary authority from the Federal Communications 
Commission, the effects of activities by the Government of Cuba 
which directly interfere with the transmission or reception of 
broadcasts by these licensees. Such expenses shall be limited 
to the casts of equipment replaced (less depreciation) and 
associated technical and engineering costs.
          * * * * * * *
    (d) There are authorized to be appropriated to the [Agency] 
Department $5,000,000 for use in compensating United States 
radio broadcasting licensees pursuant to this section. Amounts 
appropriated under this section are authorized to be available 
until expended.
          * * * * * * *
                    authorization of appropriations

    Sec. 8[(a) There are authorized to be appropriated for the 
United States Information Agency $14,000,000 for fiscal year 
1984, and $11,000,000 for fiscal year 1985 to carry out 
sections 3 and 4 of this Act. The amount obligated by the 
United States Information Agency in ensuing fiscal years shall 
be sufficient to maintain broadcasts to Cuba under this Act at 
rates no less than the fiscal year 1985 level.
    [(b) In addition to amounts otherwise authorized to be 
appropriated to the Agency for the fiscal years 1984 and 1985, 
there are authorized to be appropriated to the Agency 
$54,800,000 for the fiscal year 1984 and $54,800,000 for the 
fiscal year 1985, which amounts shall be available only for 
expenses incurred by essential modernization of the facilities 
and operations of the Voice of America.]
    (a) The amount obligated by the Department of State each 
fiscal year to carry out this Act shall be sufficient to 
maintain broadcasts to Cuba under this Act at rates no less 
than the fiscal year 1985 level of obligations by the former 
United States Information Agency for such broadcasts.
    [(c)](b) Amounts appropriated under this section are 
authorized to be made available until expended.
                              ----------                              


  NATIONAL ENDOWMENT FOR DEMOCRACY ACT (TITLE V OF PUBLIC LAW 98-164)

               TITLE V--NATIONAL ENDOWMENT FOR DEMOCRACY

                              short title

    Sec. 501. This title may be cited as the ``National 
Endowment for Democracy Act''.
          * * * * * * *

                        grants to the endowment

    Sec. 503. (a) The [Director of the United States 
Information Agency] shall make an annual grant to the Endowment 
to enable the Endowment to carry out its purposes as specified 
in section 502(b). Such grants shall be made with funds 
specifically appropriated for grants to the Endowment or with 
funds appropriated to [the Agency] the Department of State for 
the ``Salaries and Expenses'' account. Such grants shall be 
made pursuant to a grant agreement between the [Director] 
Secretary of State and the Endowment which requires that grant 
funds will only be used for activities which the Board of 
Directors of the Endowment determines are consistent with the 
purposes described in section 502(b), that the Endowment will 
allocate funds in accordance with subsection (e) of this 
section, and that the Endowment will otherwise comply with the 
requirements of this title. The grant agreement may not require 
the Endowment to comply with requirements other than those 
specified in this title.
    (b) Funds so granted may be used by the Endowment to carry 
out the purposes described in section 502(b), and otherwise 
applicable limitations on the purposes for which funds 
appropriated to the [United States Information Agency] 
Department of State may be used shall not apply to funds 
granted to the Endowment.
          * * * * * * *
                eligibility of the endowment for grants

    Sec. 504. (a) * * *
          * * * * * * *
    (g) The financial transactions of the Endowment for each 
fiscal year shall be audited by the [United States Information 
Agency] Department of State under the conditions set forth in 
subsection (f)(1).
          * * * * * * *

                         freedom of information

    Sec. 506. (a) * * *
    (b) Publication in Federal Register.--For purposes of 
complying pursuant to subsection (a) with section 552(a)(1) of 
such title, the Endowment shall make available to the [Director 
of the United States Information Agency] Secretary of State 
such records and other information as the [Director] Secretary 
determines may be necessary for such purposes. The [Director] 
Secretary shall cause such records and other information to be 
published in the Federal Register.
    (c) Review by [USIA] Department of State.--(1) In the event 
that the Endowment determines not to comply with a request for 
records under section 552, the Endowment shall submit a report 
to the [Director of the United States Information Agency] 
Secretary of State explaining the reasons for not complying 
with such request.
    (2) If the [Director] Secretary approves the determination 
not to comply with such request, the [United States Information 
Agency] Department of State shall assume full responsibility, 
including financial responsibility, for defending the Endowment 
in any litigation relating to such request.
    (3) If the [Director] Secretary disapproves the 
determination not to comply with such request, the Endowment 
shall comply with such request.
                              ----------                              

    FOREIGN RELATIONS AUTHORIZATION ACT, FISCAL YEARS 1986 AND 1987

          * * * * * * *

               TITLE II--UNITED STATES INFORMATION AGENCY

          * * * * * * *

SEC. 208. BAN ON DOMESTIC ACTIVITIES BY THE USIA.

    Except as provided in section 501 of the United States 
Information and Education Exchange Act of 1948 (22 U.S.C. 1461) 
and this section, no funds authorized to be appropriated to the 
[United States Information Agency] Department of State shall be 
used to influence public opinion in the United States, and no 
program material prepared by the [United States Information 
Agency] Department of State in carrying out its international 
information, educational, and cultural activies shall be 
distributed within the United States. This section shall not 
apply to programs carried out pursuant to the Mutual 
Educational and Cultural Exchange Act of 1961 (22 U.S.C. 2451 
et seq.). The provisions of this section shall not prohibit the 
United States Information Agency from responding to inquiries 
from members of the public about its operations, policies, or 
programs.
          * * * * * * *

  TITLE VI--UNITED STATES SCHOLARSHIP PROGRAM FOR DEVELOPING COUNTRIES

          * * * * * * *

SEC. 603. SCHOLARSHIP PROGRAM AUTHORITY.

    (a) In General.--The President acting through the [United 
States Information Agency], Department of State shall provide 
scholarships (including partial assistance) for undergraduate 
study at United States institutions of higher education by 
citizens and nationals of developing countries who have 
completed their secondary education and who would not otherwise 
have an opportunity to study in the United States due to 
financial limitations.
          * * * * * * *

SEC. 604. GUIDELINES.

    The scholarship program under this title shall be carried 
out in accordance with the following guidelines:
          (1) * * *
          * * * * * * *
          (11) The [United States Information Agency] 
        Department of State shall recommend to each student, 
        who receives a scholarship under this title for study 
        at a college or university, that the student enroll in 
        a course on the classics of American political thought 
        or which otherwise emphasizes the ideas, principles, 
        and documents upon which the United States was founded.
          * * * * * * *
SEC. 606. POLICY REGARDING OTHER INTERNATIONAL EDUCATIONAL PROGRAMS.

    (a) * * *
    (b) [USIA] State Department Funded Postgraduate Study in 
the United States.--The Congress urges the [Director of the 
United States Information Agency] Secretary of State to expand 
opportunities for students of limited postgraduate study at 
United States institutions of higher education.
          * * * * * * *

SEC. 609. GENERAL AUTHORITIES.

    (a) * * *
          * * * * * * *
    (e) Other Activities to Promote Improved Understanding.--
Funds allocated by the [United States Information Agency] 
Department of State, or the agency primarily responsible for 
carrying out part I of the Foreign Assistance Act of 1961, for 
scholarships in accordance with this title shall be available 
to enhance the educational training and capabilities of the 
people of Latin America and the Caribbean and to promote better 
understanding between the United States and Latin America and 
the Caribbean through programs of cooperation, study, training, 
and research. Such funds may be used for program and 
administrative costs for institutions carrying out such 
programs.
          * * * * * * *
                              ----------                              


               SECTION 1003 OF THE FASCELL FELLOWSHIP ACT

SEC. 1003. FELLOWSHIP BOARD.

    (a) Establishment and Function.--There is hereby 
established a Fellowship Board (hereafter in this title 
referred to as the ``Board''), which shall select the 
individuals who will be eligible to serve as Fellows.
    (b) Membership.--The Board shall consist of [9] 8 members 
as follows:
          (1) A senior official of the Department of State (who 
        shall be the chair of the Board), designated by the 
        Secretary of State.
          (2) An officer or employee of the Department of 
        Commerce, designated by the Secretary of Commerce.
          [(3) An officer or employee of the United States 
        Information Agency, designated by the Director of that 
        Agency.
          [(4)] (3) Six academic specialists in international 
        affairs or foreign languages, appointed by the 
        Secretary of State (in consultation with the chairman 
        and ranking minority member of the Committee on Foreign 
        Affairs of the House of Representatives and the 
        chairman and ranking minority of the Committee on 
        Foreign Relations of the Senate).
          * * * * * * *
                              ----------                              

  SECTION 803 OF THE INTELLIGENCE AUTHORIZATION ACT, FISCAL YEAR 1992
SEC. 803. NATIONAL SECURITY EDUCATION BOARD.

  (a) Establishment.--The Secretary of Defense shall establish 
a National Security Education Board.
  (b) Composition.--The Board shall be composed of the 
following individuals or the representatives of such 
individuals:
          (1) The Secretary of Defense, who shall serve as the 
        chairman of the Board.
          (2) The Secretary of Education.
          (3) The Secretary of State.
          (4) The Secretary of Commerce.
          (5) The Director of Central Intelligence.
          [(6) The Director of the United States Information 
        Agency.]
          [(7)] (6) The Chairperson of the National Endowment 
        for the Humanities.
          [(8)] (7) Six individuals appointed by the President, 
        by and with the advice and consent of the Senate, who 
        shall be experts in the fields of international, 
        language, and area studies education and who may not be 
        officers or employees of the Federal Government.
  (c) Term of Appointees.--Each individual appointed to the 
Board pursuant to [subsection (b)(7)] subsection (b)(6) shall 
be appointed for a period specified by the President at the 
time of the appointment, but not to exceed four years. Such 
individuals shall receive no compensation for service on the 
Board but may receive reimbursement for travel and other 
necessary expenses.
          * * * * * * *
                              ----------                              


    FOREIGN RELATIONS AUTHORIZATION ACT, FISCAL YEARS 1992 AND 1993

          * * * * * * *

                      TITLE I--DEPARTMENT OF STATE

          * * * * * * *

         PART B--DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES

          * * * * * * *

[SEC. 122. ASSISTANT SECRETARY OF STATE FOR SOUTH ASIAN AFFAIRS.

  [(a) Establishment of Position.--There is established in the 
Department of State the position of Assistant Secretary of 
State for South Asian Affairs, which is in addition to the 
positions provided under the first section of the Act of May 
26, 1949 (22 U.S.C. 2652).
  [(b) Appointment.--The Assistant Secretary shall be appointed 
by the President, by and with the advice and consent of the 
Senate.
  [(c) Responsibilities.--The Assistant Secretary shall have 
responsibility within the Department of State with respect to 
India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, 
Afghanistan, and the Maldives.
  [(d) Conforming Amendment.--
          [(1) Positions at executive level iv.--Section 5315 
        of title 5, United States Code, is amended by adding at 
        the end thereof the following new item:
          [``Assistant Secretary for South Asian Affairs, 
        Department of State.''.
          [(2) Effective date.--The amendment made by paragraph 
        (1) shall take effect on October 1, 1991.
  [(e) Implementation.--In order to carry out this section, the 
Secretary of State shall reprogram the position of Deputy 
Assistant Secretary for South Asian Affairs.]
          * * * * * * *
   TITLE II--UNITED STATES INFORMATIONAL, EDUCATIONAL, AND CULTURAL 
                                PROGRAMS

                PART A--UNITED STATES INFORMATION AGENCY

          * * * * * * *

SEC. 208. CENTER FOR CULTURAL AND TECHNICAL INTERCHANGE BETWEEN NORTH 
                    AND SOUTH.

  (a) Short Title.--This section may be cited as the ``North/
South Center Act of 1991''.
  (b) Purpose.--The purpose of this section is to promote 
better relations between the United States and the nations of 
Latin America and the Caribbean and Canada through cooperative 
study, training, and research, by supporting in Florida a 
Center for Cultural and Technical Interchange Between North and 
South where scholars and students in various fields from the 
nations of the hemisphere may study, give and receive training, 
exchange ideas and views, and conduct other activities 
consistent with the objectives of the Mutual Educational and 
Cultural Exchange Act of 1961 and other Acts promoting 
international, educational, cultural, scientific, and related 
activities of the United States.
  (c) North/South Center.--In order to carry out the purpose of 
this section, the [Director of the United States Information 
Agency] Secretary of State shall provide for the operation in 
Florida of an educational institution known as the North/South 
Center, through arrangements with public, educational, or other 
nonprofit institutions.
  (d) Authorities.--The [Director of the United States 
Information Agency] Secretary of State, in carrying out this 
section, may utilize the authorities of the Mutual Educational 
and Cultural Exchange Act of 1961. Section 704(b) of the Mutual 
Security Act of 1960 (22 U.S.C. 2056(b)) shall apply in the 
administration of this section. In order to carry out the 
purposes of this section, the North/South Center is authorized 
to use funds made available under this section to acquire 
property and facilities, by construction, lease, or purchase.
  [(e) Authorization of Appropriations.--There are authorized 
to be appropriated $5,000,000 for fiscal year 1992 and 
$10,000,000 for each subsequent fiscal year to carry out this 
section. Amounts appropriated under this section are authorized 
to be available until expended.]
  (f) Repeal.--Effective October 1, 1991, the section enacted 
by the third proviso under the heading ``education and human 
resources development, development assistance'' in the Foreign 
Operations, Export Financing, and Related Programs 
Appropriations Act, 1991, is repealed.
          * * * * * * *
SEC. 212. USIA GRANTS.

  (a) Competitive Grant Procedures.--Except as provided in 
subsection (b), the [United States Information Agency] 
Department of State, in carrying out its international 
information, educational, and cultural functions, shall work to 
achieve full and open competition in the award of grants.
  (b) Exceptions.--The [United States Information Agency] 
Department of State may award a grant under procedures other 
than competitive procedures when--
          (1)  * * *
          * * * * * * *
  (c) Compliance With Grant Guidelines.--
          (1) After October 1, 1991, grants awarded by the 
        [United States Information Agency shall substantially 
        comply with United States Information Agency] 
        Department of State, in carrying out its international 
        information, educational, and cultural functions, shall 
        substantially comply with Department of State grant 
        guidelines and applicable circulars of the Office of 
        Management and Budget.
          (2) If the [Agency] Department determines that a 
        grantee has not satisfied the requirement of paragraph 
        (1), the [United States Information Agency] Department 
        of State shall notify the grantee of the suspension of 
        payments under a grant unless compliance is achieved 
        within 90 days of such notice.
          (3) The [Agency] Department shall suspend payments 
        under any grant which remains in noncompliance 90 days 
        after notification under paragraph (2).
  [(d) Report to Congress.--Not later than 90 days after the 
date of the enactment of this Act, the Director of the United 
States Information Agency shall submit a detailed report to the 
Committee on Foreign Relations of the Senate and the Committee 
on Foreign Affairs of the House of Representatives on United 
States Information Agency action to comply with subsection 
(a).]
          * * * * * * *

           PART B--BUREAU OF EDUCATIONAL AND CULTURAL AFFAIRS

          * * * * * * *

SEC. 227. LAW AND BUSINESS TRAINING PROGRAM FOR GRADUATE STUDENTS FROM 
                    THE SOVIET UNION, LITHUANIA, LATVIA, AND ESTONIA.

  (a) Statement of Purpose.--The purpose of this section is to 
establish a scholarship program designed to bring students from 
the Soviet Union, Lithuania, Latvia, and Estonia to the United 
States for study in the United States.
  (b) Scholarship Program Authority.--Subject to the 
availability of appropriations under subsection (d), the 
President, acting through the [United States Information 
Agency] Department of State, shall provide scholarships 
(including partial assistance) for study at United States 
institutions of higher education together with private and 
public sector internships by nationals of the Soviet Union, 
Lithuania, Latvia, and Estonia who have completed their 
undergraduate education and would not otherwise have the 
opportunity to study in the United States due to financial 
limitations.
  (c) Guidelines.--The scholarship program under this section 
shall be carried out in accordance with the following 
guidelines:
          (1) Consistent with section 112(b) of the Mutual 
        Educational and Cultural Exchange Act of 1961 (22 
        U.S.C. 2460(b)), all programs created pursuant to this 
        Act shall be nonpolitical and balanced, and shall be 
        administered in keeping with the highest standards of 
        academic integrity and cost-effectiveness.
          (2) The [United States Information Agency] Department 
        of State shall design ways to identify promising 
        students for study in the United States.
          (3) The [United States Information Agency] Department 
        of State should develop and strictly implement specific 
        financial need criteria. Scholarships under this Act 
        may only be provided to students who meet the financial 
        need criteria.
          (4) The program may utilize educational institutions 
        in the United States, if necessary, to help 
        participants acquire necessary skills to fully 
        participate in professional training.
          (5) Each participant shall be selected on the basis 
        of academic and leadership potential in the fields of 
        business administration, economics, law, or public 
        administration. Scholarship opportunities shall be 
        limited to fields that are critical to economic reform 
        and political development in the Soviet Union, 
        Lithuania, Latvia, and Estonia, particularly business 
        administration, economics, law, or public 
        administration.
          (6) The program shall be flexible to include not only 
        training and educational opportunities offered by 
        universities in the United States, but to also support 
        internships, education, and training in a professional 
        setting.
          (7) The program shall be flexible with respect to the 
        number of years of education financed, but in no case 
        shall students be brought to the United States for less 
        than one year.
          (8) Further allowance shall be made in the 
        scholarship for the purchase of books and related 
        educational material relevant to the program of study.
          (9) Further allowance shall be made to provide 
        opportunities for professional, academic, and cultural 
        enrichment for scholarship recipients.
          (10) The program shall, to the maximum extent 
        practicable, offer equal opportunities for both male 
        and female students to study in the United States.
          (11) The program shall, to the maximum extent 
        practicable, offer equal opportunities for students 
        from each of the Soviet republics, Lithuania, Latvia, 
        and Estonia.
          (12) The [United States Information Agency] 
        Department of State shall recommend to each student who 
        receives a scholarship under this section that the 
        student include in their course of study programs which 
        emphasize the ideas, principles, and documents upon 
        which the United States was founded.
  [(d) Funding of Scholarships for Fiscal Year 1992 and Fiscal 
Year 1993.--There are authorized to be appropriated to the 
United States Information Agency $7,000,000 for fiscal year 
1992, and $7,000,000 for fiscal year 1993, to carry out this 
section.]
          * * * * * * *
                              ----------                              

                      MUTUAL SECURITY ACT OF 1960

          * * * * * * *

CHAPTER VII--CENTER FOR CULTURAL AND TECHNICAL INTERCHANGE BETWEEN EAST 
                                AND WEST

          * * * * * * *
    Sec. 703. In order to carry out the purpose of this chapter 
the Secretary of State (hereinafter referred to as the 
``Secretary'') shall provide for--
          (1) the [establishment and] operation in Hawaii of an 
        educational institution to be known as the Center for 
        Cultural and Technical Interchange Between East and 
        West, through arrangements with public, educational, or 
        other nonprofit institutions;
          * * * * * * *
    Sec. 704. (a) In carrying out the provisions of this 
chapter, the Secretary may utilize his authority under the 
provisions of the United States Information and Educational 
Exchange Act of 1948, as amended.
    (b) The Secretary may, in administering the provisions of 
this chapter, accept from public and private sources money and 
property to be utilized in carrying out the purposes and 
functions of the Center. In utilizing any gifts, bequests, or 
devises accepted there shall be available to the Secretary the 
same authorities as are available to him in accepting and 
utilizing gifts, bequests, and devises to the Foreign Service 
Institute under the provisions of the section 25 of the State 
Department Basic Authorities Act of 1956. For the purposes of 
Federal income, estate, and gift taxes, any gift, devise, or 
bequest accepted by the Secretary under the authority of this 
chapter shall be deemed to be a gift, devise, or bequest to or 
for the use of the United States.
    (c) The [Director] Secretary of the International 
Communication Agency shall make periodic reports, as he deems 
necessary, to the Congress with respect to his activities under 
the provisions of this chapter, and such reports shall include 
any recommendations for needed revisions in this chapter.
          * * * * * * *
                              ----------                              


  SECTION 202 OF THE FOREIGN RELATIONS AUTHORIZATION ACT, FISCAL YEAR 
                                  1979

           mission of the international communication agency

    Sec. 202. The [mission of the International Communication 
Agency] mission of the Department of State in carrying out its 
information, educational, and cultural functions shall be to 
further the national interest by improving United States 
relations with other countries and peoples through the broadest 
possible sharing of ideas, information, and educational and 
cultural activities. In carrying out this mission, the 
[International Communication Agency] Department of State shall, 
among other activities--
          (1) conduct Government-sponsored information, 
        educational, and cultural activities designed--
                  (A) to provide other peoples with a better 
                understanding of the policies, values, 
                institutions, and culture of the United States; 
                and
                  (B) within the statutory limits governing 
                domestic activities of the [Agency] Department, 
                to enhance understanding on the part of the 
                Government and people of the United States of 
                the history, culture, attitudes, perceptions, 
                and aspirations of others;
          (2) encourage private institutions in the United 
        States to develop their own exchange activities, and 
        provide assistance for those exchange activities which 
        are in the broadest national interest;
          (3) coordinate international informational, 
        educational, or cultural activities conducted or 
        planned by departments and agencies of the United 
        States Government;
          (4) assist in the development of a comprehensive 
        national policy on international communications; and
          (5) promote United States participation in 
        international events relevant to the [mission of the 
        Agency] mission described in this section.
                              ----------                              

SECTION 2 OF THE SUPPORT FOR EAST EUROPEAN DEMOCRACY (SEED) ACT OF 1989
SEC. 2. SUPPORT FOR EAST EUROPEAN DEMOCRACY (SEED) PROGRAM.

  (a)  * * *
          * * * * * * *
  (c) SEED Actions.--Assistance and other activities under the 
SEED Program (which may be referred to as ``SEED Actions'') 
shall include activities such as the following:
          (1)  * * *
          * * * * * * *
          (17) Exchange activities.--Expanded exchange 
        activities under the Fulbright, International Visitors, 
        and other programs conducted by the [United States 
        Information Agency] Department of State.
          * * * * * * *
                              ----------                              

           SECTION 7 OF THE FEDERAL TRIANGLE DEVELOPMENT ACT
SEC. 7. INTERNATIONAL CULTURAL AND TRADE CENTER COMMISSION.

  (a)  * * *
          * * * * * * *
  (c) Membership.--
          (1) Number and appointment.--The Commission shall be 
        composed of [15] 14 members as follows:
                  (A) The Secretary of State or his delegate.
                  (B) The Secretary of Commerce or his 
                delegate.
                  (C) The Secretary of Agriculture or his 
                delegate.
                  (D) The United States Trade Representative or 
                his delegate.
                  (E) The Administrator or his delegate.
                  [(F) The Director of the United States 
                Information Agency or his delegate.]
                  [(G)] (F) The Chairman of the Corporation or 
                his delegate.
                  [(H)] (G) The Mayor of the District of 
                Columbia or his delegate.
                  [(I)] (H) The Chairman of the National 
                Endowment for the Arts or his delegate.
                  [(J)] (I) 6 individuals appointed by the 
                President one of whom shall be a resident and 
                registered voter of the District of Columbia 
                and all of whom shall be specially qualified to 
                serve on the Commission by virtue of their 
                education, training, or experience in 
                international trade, commerce, cultural 
                exchange, finance, business, or management of 
                facilities similar to the international 
                cultural and trade center described in section 
                8.
        A vacancy in the Commission shall be filled in the 
        manner in which the original appointment was made.
          * * * * * * *
                              ----------                              

                      FOREIGN SERVICE ACT OF 1980

          * * * * * * *
  Sec. 2. Table of Contents.--The table of contents for this 
Act is as follows:
                            TABLE OF CONTENTS

Sec. 1. Short title.

            TITLE I--THE FOREIGN SERVICE OF THE UNITED STATES

                      Chapter 1--General Provisions

     * * * * * * *

                         Chapter 4--Compensation

Sec. 401. Salaries of chiefs of mission.
     * * * * * * *
[Sec. 405. Performance pay.]
     * * * * * * *
           TITLE I--THE FOREIGN SERVICE OF THE UNITED STATES

                     Chapter 1--General Provisions

          * * * * * * *

                  Chapter 2--Management of the Service

          * * * * * * *
  Sec. 202. Other Agencies Utilizing the Foreign Service 
Personnel System.--(a)[(1) The Director of the United States 
Information Agency and the Director of the United States 
International Development Cooperation Agency may utilize the 
Foreign Service personnel system with respect to their 
respective agencies in accordance with this Act.]
          * * * * * * *
  Sec. 210. Board of the Foreign Service.--The President shall 
establish a Board of the Foreign Service to advise the 
Secretary of State on matters relating to the Service, 
including furtherance of the objectives of maximum 
compatibility among agencies authorized by law to utilize the 
Foreign Service personnel system and compatibility between the 
Foreign Service personnel system and the other personnel 
systems of the Government. The Board of the Foreign Service 
shall be chaired by an individual appointed by the President 
and shall include one or more representatives of the Department 
of State, [the United States Information Agency, the United 
States International Development Cooperation Agency,] the 
Department of Agriculture, the Department of Commerce, the 
Department of Labor, the Office of Personnel Management, the 
Office of Management and Budget, the Equal Employment 
Opportunity Commission, and such other agencies as the 
President may designate.
          * * * * * * *

                        Chapter 4--Compensation

          * * * * * * *
  [Sec. 405. Performance Pay.--(a) Members of the Senior 
Foreign Service who are serving--
          [(1) under career or career candidate appointments, 
        or
          [(2) under limited appointments with reemployment 
        rights under section 310 as career appointees in the 
        Senior Executive Service,
shall be eligible to compete for performance pay in accordance 
with this section. Performance pay shall be paid in a lump sum 
and shall be in addition to the basic salary prescribed under 
section 402 and any other award. The fact that a member of the 
Senior Foreign Service competing for performance pay would, as 
a result of the payment of such performance pay, receive 
compensation exceeding the compensation of any other member of 
the Service shall not preclude the award or its payment.
  [(b) Awards of performance pay shall take into account the 
criteria established by the Office of Personnel Management for 
performance awards under section 5384 of title 5, United States 
Code, and rank awards under section 4507 of title 5, United 
States Code. Awards of performance pay under this section shall 
be subject to the following limitations:
          [(1) Not more than 50 percent of the members of the 
        Senior Foreign Service may receive performance pay in 
        any fiscal year.
          [(2) Except as provided in paragraph (3), performance 
        pay for a member of the Senior Foreign Service may not 
        exceed 20 percent of the annual rate of basic salary 
        for that member.
          [(3) Not more than 6 percent of the members of the 
        Senior Foreign Service may receive performance pay in 
        any fiscal year in an amount which exceeds the 
        percentage limitation specified in paragraph (2). 
        Payments under this paragraph to a member of the Senior 
        Foreign Service may not exceed $10,000 in any fiscal 
        year, except that payments of up to $20,000 in any 
        fiscal year may be made under this paragraph to up to 1 
        percent of the members of the Senior Foreign Service.
          [(4) Any award under this section shall be subject to 
        the limitation on certain payments under section 5307 
        of title 5, United States Code.
          [(5) The Secretary of State shall prescribe 
        regulations, consistent with section 5582 of title 5, 
        United States Code, under which payment under this 
        section shall be made in the case of any individual 
        whose death precludes payment under paragraph (4) of 
        this subsection.
  [(c) The Secretary shall determine the amount of performance 
pay available under subsection (b)(2) each year for 
distribution among the members of the Senior Foreign Service 
and shall distribute performance pay to particular individuals 
on the basis of recommendations by selection boards established 
under section 602.
  [(d) The President may grant awards of performance pay under 
subsection (b)(3) on the basis of annual recommendations by the 
Secretary of State of members of the Senior Foreign Service who 
are nominated by their agencies as having performed especially 
meritorious or distinguished service. Recommendations by the 
Secretary of State under this subsection shall be made on the 
basis of recommendations by special interagency selection 
boards established by the Secretary of State for the purpose of 
reviewing and evaluating the nominations of agencies.]
          * * * * * * *

        Chapter 7--Career Development, Training, and Orientation

  Sec. 701. Institution for Training.--(a) * * *
          * * * * * * *
  (d)(1) * * *
          * * * * * * *
  [(4) The authorities of section 704 shall apply to training 
and instruction provided under this section.]
  (e)(1) The Secretary of State is authorized to provide 
appropriate training through the institution to employees of 
any United States company engaged in business abroad, and to 
the families of such employees, when such training is in the 
national interest of the United States.
  (2) In the case of any company under contract to provide 
services to the Department of State, the Secretary of State is 
authorized to provide job-related training to any company 
employee who is performing such services.
  (3) Training under this subsection shall be on a reimbursable 
or advance-of-funds basis. Such reimbursements or advances 
shall be credited to the currently applicable appropriation 
account.
  (4) Training under this subsection is authorized only to the 
extent that it will not interfere with the institution's 
primary mission of training employees of the Department and of 
other agencies in the field of foreign relations.
  (f)(1) The Secretary of State is authorized to provide on a 
reimbursable basis foreign language training programs to 
Members of Congress and officers and employees of Congress.
  (2) Reimbursements under this subsection, to the extent 
practicable, should be equivalent to the rate of reimbursement 
charged other agencies of the United States Government for 
comparable training.
  (3) Reimbursements collected under this subsection shall be 
credited to the currently available applicable appropriation 
account.
  (4) Training under this subsection is authorized only to the 
extent that it will not interfere with the institution's 
primary mission of training employees of the Department and of 
other agencies in the field of foreign relations.
  (g) The authorities of section 704 shall apply to training 
and instruction provided under this section.
          * * * * * * *
  Sec. 904. Health Care.--(a) The Secretary of State shall 
establish a health care program to promote and maintain the 
physical and mental health of members of the Service, and (when 
incident to service abroad) other designated eligible 
Government employees, [and] members of the families of such 
members and employees, and for care provided abroad) such other 
persons as are designated by the Secretary of State, except 
that such persons shall be considered persons other than 
covered beneficiaries for purposes of subsections (g) and (h).
          * * * * * * *
  (d) If an individual eligible for health care under this 
section incurs an illness, injury, or medical condition which 
requires treatment, subject to the provisions of subsections 
(g) and (h) while assigned to a post abroad located overseas 
pursuant to Government authorization, the Secretary may pay the 
cost of such treatment.
          * * * * * * *
  (g)(1) In the case of a person who is a covered beneficiary, 
the Secretary of State is authorized to collect from a third-
party payer the reasonable costs incurred by the Department of 
State on behalf of such person for health care services to the 
same extent that the covered beneficiary would be eligible to 
receive reimbursement or indemnification from the third-party 
payer for such costs.
  (2) If the insurance policy, plan, contract, or similar 
agreement of that third-party payer includes a requirement for 
a deductible or copayment by the beneficiary of the plan, then 
the Secretary of State may collect from the third-party payer 
only the reasonable costs of the care provided less the 
deductible or copayment amount.
  (3) A covered beneficiary shall not be required to pay any 
deductible or copayment for health care services under this 
subsection.
  (4) No provision of any insurance, medical service, or health 
plan contract or agreement having the effect of excluding from 
coverage or limiting payment of charges for care in the 
following circumstances shall operate to prevent collection by 
the Secretary of State under paragraph (1)--
          (A) care provided directly or indirectly by a 
        governmental entity;
          (B) care provided to an individual who has not paid a 
        required deductible or copayment; or
          (C) care provided by a provider with which the third-
        party payer has no participation agreement.
  (5) No law of any State, or of any political subdivision of a 
State, and no provision of any contract or agreement shall 
operate to prevent or hinder recovery or collection by the 
United States under this section.
  (6) As to the authority provided in paragraph (1) of this 
subsection--
          (A) the United States shall be subrogated to any 
        right or claim that the covered beneficiary may have 
        against a third-party payer;
          (B) the United States may institute and prosecute 
        legal proceedings against a third-party payer to 
        enforce a right of the United States under this 
        subsection; and
          (C) the Secretary may compromise, settle, or waive a 
        claim of the United States under this subsection.
  (7) The Secretary shall prescribe regulations for the 
administration of this subsection and subsection (h). Such 
regulations shall provide for computation of the reasonable 
cost of health care services.
  (8) Regulations prescribed under this subsection shall 
provide that medical records of a covered beneficiary receiving 
health care under this subsection shall be made available for 
inspection and review by representatives of the payer from 
which collection by the United States is sought for the sole 
purpose of permitting the third party to verify--
          (A) that the care or services for which recovery or 
        collection is sought were furnished to the covered 
        beneficiary; and
          (B) that the provisions of such care or services to 
        the covered beneficiary meets criteria generally 
        applicable under the health plan contract involved, 
        except that this paragraph shall be subject to the 
        provisions of paragraphs (2) and (4).
  (9) Amounts collected under this subsection or under 
subsection (h) from a third-party payer or from any other payer 
shall be deposited as an offsetting collection to any 
Department of State appropriation and shall remain available 
until expended.
  (10) For purposes of this section--
          (A) the term ``covered beneficiary'' means an 
        individual eligible to receive health care under this 
        section whose health care costs are to be paid by a 
        third-party payer under a contractual agreement with 
        such payer;
          (B) the term ``services'', as used in ``health care 
        services'' includes products; and
          (C) the term ``third-party payer'' means an entity 
        that provides a fee-for-service insurance policy, 
        contract, or similar agreement through the Federal 
        Employees Health Benefit program, under which the 
        expenses of health care services for individuals are 
        paid.
  (h) In the case of a person, other than a covered 
beneficiary, who receives health care services pursuant to this 
section, the Secretary of State is authorized to collect from 
such person the reasonable costs of health care services 
incurred by the Department of State on behalf of such person. 
The United States shall have the same rights against persons 
subject to the provisions of this subsection as against third-
party payers covered by subsection (g).
          * * * * * * *
                              ----------                              


      SECTION 8 OF THE EISENHOWER EXCHANGE FELLOWSHIP ACT OF 1990

SEC. 8. EXTENSION OF AU PAIR PROGRAMS.

  The United States Information Agency shall continue to 
implement the au pair programs designated by the [Director of 
United States Information Agency] Secretary of State as of July 
10, 1990, until such au pair programs are authorized and 
implemented by another agency of the United States Government. 
Notwithstanding section 555 of Public Law 100-461 and title III 
of S. 2757 as reported by the Senate Committee on Foreign 
Relations on September 7, 1988 (pursuant to the enactment under 
section 555 of Public Law 100-461), the Director of the United 
States Information Agency is authorized to administer such au 
pair programs through fiscal year [1995] 1997 in a manner 
consistent with the requirements of the Mutual Educational and 
Cultural Exchange Act of 1961 and shall promulgate regulations 
regarding such au pair programs.
                              ----------                              


     SECTION 602 OF THE NATIONAL AND COMMUNITY SERVICE ACT OF 1990

SEC. 602. EXCHANGE PROGRAM WITH COUNTRIES IN TRANSITION FROM 
                    TOTALITARIANISM TO DEMOCRACY.

  (a) Authorization of Activities; Grants or Contracts for 
Exchanges With Foreign Countries.--Pursuant to the Mutual 
Educational and Cultural Exchange Act of 1961 and using the 
authorities contained therein, the President is authorized, 
when the President considers that it would strengthen 
international cooperative relations, to provide, by grant, 
contract, or otherwise, for exchanges with countries that are 
in transition from totalitarianism to democracy, which include, 
but are not limited to Poland, Hungary, Czechoslovakia, 
Bulgaria, and Romania--
          (1) by financing studies, research, instruction, and 
        related activities--
                  (A) of or for American citizens and nationals 
                in foreign countries; and
                  (B) of or for citizens and nationals of 
                foreign countries in American private 
                businesses, trade associations, unions, 
                chambers of commerce, and local, State, and 
                Federal Government agencies, located in or 
                outside the United States; and
          (2) by financing visits and interchanges between the 
        United States and countries in transition from 
        totalitarianism to democracy.
The program under this section shall be coordinated by the 
[United States Information Agency] Department of State.
  (b) Transfer of Funds.--The President is authorized to 
transfer to the [appropriations account of the United States 
Information Agency] appropriate appropriations account of the 
Department of State such sums as the President shall determine 
to be necessary out of the travel accounts of the departments 
and agencies of the United States, except for the Department of 
State [and the United States Information Agency], as the 
President shall designate. Such transfers shall be subject to 
the approval of the Committee on Appropriations of the House of 
Representatives and the Committee on Appropriations of the 
Senate. In addition, the President is authorized to accept such 
gifts or cost-sharing arrangements as may be proffered to 
sustain the program under this section.
                              ----------                              

           CONVENTION ON CULTURAL PROPERTY IMPLEMENTATION ACT

          * * * * * * *

      TITLE III--IMPLEMENTATION OF CONVENTION ON CULTURAL PROPERTY

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Convention on Cultural 
Property Implementation Act''.
          * * * * * * *

SEC. 305. DESIGNATION OF MATERIALS COVERED BY AGREEMENTS OR EMERGENCY 
                    ACTIONS.

    After any agreement enters into force under section 303, or 
emergency action is taken under section 304, the Secretary, 
after consultation with the [Director of the United States 
Information Agency] Secretary of State, shall by regulation 
promulgate (and when appropriate shall revise) a list of the 
archaeological or ethnological material of the State Party 
covered by the agreement or by such action. The Secretary may 
list such material by type or other appropriate classification, 
but each listing made under this section shall be sufficiently 
specific and precise to insure that (1) the import restrictions 
under section 307 are applied only to the archaeological and 
ethnological material covered by the agreement or emergency 
action; and (2) fair notice is given to importers and other 
persons as to what material is subject to such restrictions.

SEC. 306. CULTURAL PROPERTY ADVISORY COMMITTEE.

    (A) * * *
          * * * * * * *
    (E) Staff and Administration.--
          (1) The [Director of the United States Information 
        Agency] Secretary of State shall make available to the 
        Committee such administrative and technical support 
        services and assistance as it may reasonably require to 
        carry out its activities. Upon the request of the 
        Committee, the head of any other Federal agency may 
        detail to the Committee, on a reimbursable basis, any 
        of the personnel of such agency to assist the Committee 
        in carrying out its functions, and provide such 
        information and assistance as the Committee may 
        reasonably require to carry out its activities.
          (2) The Committee shall meet at the call of the 
        [Director of the United States Information Agency] 
        Secretary of State, or when a majority of its members 
        request a meeting in writing.
          * * * * * * *
      (i) Confidential Information.--
          (1) In general.--Any information (including trade 
        secrets and commercial or financial information which 
        is privileged or confidential) submitted in confidence 
        by the private sector to officers or employees of the 
        United States or to the Committee in connection with 
        the responsibilities of the Committee shall not be 
        disclosed to any person other than to--
                  (A) officers and employees of the United 
                States designated by the [Director of the 
                United States Information Agency] Secretary of 
                State;
          * * * * * * *
          (2) Governmental information.--Information submitted 
        in confidence by officers or employees of the United 
        States to the Committee shall not be disclosed other 
        than in accordance with rules issued by the [Director 
        of the United States Information Agency] Secretary of 
        State, after consultation with the Committee. Such 
        rules shall define the categories of information which 
        require restricted or confidential handling by such 
        Committee considering the extent to which public 
        disclosure of such information can reasonably be 
        expected to prejudice the interests of the United 
        States. Such rules shall, to the maximum extent 
        feasible, permit meaningful consultations by Committee 
        members with persons affected by proposed agreements 
        authorized by this title.
          * * * * * * *
                              ----------                              

              SECTION 901 OF TITLE 31, UNITED STATES CODE

Sec. 901. Establishment of agency Chief Financial Officers

  (a) * * *
  (b)(1) The agencies referred to in subsection (a)(1) are the 
following:
          (A) * * *
          * * * * * * *
  (2) The agencies referred to in subsection (a)(2) are the 
following:
          [(A) The Agency for International Development.]
          * * * * * * *
                              ----------                              

       AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Agricultural Trade Development 
and Assistance Act of 1954''.
          * * * * * * *

          TITLE II--EMERGENCY AND PRIVATE ASSISTANCE PROGRAMS

SEC. 201. GENERAL AUTHORITY.

  The President shall establish a program under this title to 
provide agricultural commodities to foreign countries on behalf 
of the people of the United States to--
          (1) * * *
          * * * * * * *
Such program shall be implemented by the [Administrator] Under 
Secretary for Development and Economic Affairs.

SEC. 202. PROVISION OF AGRICULTURAL COMMODITIES.

  (a) Emergency Assistance.--Notwithstanding any other 
provision of law, the [Administrator] Under Secretary for 
Development and Economic Affairs may provide agricultural 
commodities to meet emergency food needs under this title 
through governments and public or private agencies, including 
intergovernmental organizations such as the World Food Program 
and other multilateral organizations, in such manner and on 
such terms and conditions as the [Administrator] Under 
Secretary for Development and Economic Affairs determines 
appropriate to respond to the emergency.
  (b) Non-Emergency Assistance.--The [Administrator] Under 
Secretary for Development and Economic Affairs may provide 
agricultural commodities for non-emergency assistance under 
this title through eligible organizations (as described in 
subsection (d)) that have entered into an agreement with the 
[Administrator] Under Secretary for Development and Economic 
Affairs to use such commodities in accordance with this title.
          * * * * * * *
  (d) Eligible Organizations.--To be eligible to receive 
assistance under subsection (b) an organization shall be--
          (1) a private voluntary organization or cooperative 
        that is, to the extent practicable, registered with the 
        [Administrator] Under Secretary for Development and 
        Economic Affairs; or
          (2) an intergovernmental organization, such as the 
        World Food Program.
  (e) Support for Private Voluntary Organizations and 
Cooperatives.--
          (1) In general.--Of the funds made available in each 
        fiscal year under this title to the [Administrator] 
        Under Secretary for Development and Economic Affairs, 
        not less than $10,000,000, and not more than 
        $13,500,000, shall be made available in each fiscal 
        year to private voluntary organizations and 
        cooperatives to assist such organizations and 
        cooperatives in--
                  (A) * * *
          * * * * * * *
          (2) Request for funds.--In order to receive funds 
        made available under paragraph (1), a private voluntary 
        organization or cooperative must submit a request for 
        such funds (which must be approved by the 
        [Administrator] Under Secretary for Development and 
        Economic Affairs) when submitting a proposal to the 
        [Administrator] Under Secretary for Development and 
        Economic Affairs for an agreement under this title. 
        Such request for funds shall include a specific 
        explanation of--
                  (A) * * *
          * * * * * * *
          (3) Assistance with respect to sale.--Upon the 
        request of a private voluntary organization or 
        cooperative, the [Administrator] Under Secretary for 
        Development and Economic Affairs may provide assistance 
        to that organization or cooperative with respect to the 
        sale of agricultural commodities made available to it 
        under this title.
  (f) Effective Use of Commodities.--To ensure that 
agricultural commodities made available under this title are 
used effectively and in the areas of greatest need, 
organizations or cooperatives through which such commodities 
are distributed shall--
          (1) * * *
          * * * * * * *
          (4) recommend to the [Administrator] Under Secretary 
        for Development and Economic Affairs methods of making 
        assistance available that are the most appropriate for 
        each local setting;
          * * * * * * *
SEC. 203. GENERATION AND USE OF FOREIGN CURRENCIES BY PRIVATE VOLUNTARY 
                    ORGANIZATIONS AND COOPERATIVES.

  (a) Local Sale and Barter of Commodities.--An agreement 
entered into between the [Administrator] Under Secretary for 
Development and Economic Affairs and a private voluntary 
organization or cooperative to provide food assistance through 
such organization or cooperative under this title may provide 
for the sale or barter in the recipient country of the 
commodities to be provided under such agreement.
  (b) Minimum Level of Local Sales.--In carrying out agreements 
of the type referred to in subsection (a), the [Administrator] 
Under Secretary for Development and Economic Affairs shall 
permit private voluntary organizations and cooperatives to 
sell, in recipient countries, an amount of commodities equal to 
not less than 10 percent of the aggregate amounts of all 
commodities distributed under non-emergency programs under this 
title for each fiscal year, to generate foreign currency 
proceeds to be used as provided in this section.
  (c) Description of Intended Uses.--A private voluntary 
organization or cooperative submitting a proposal to enter into 
a non-emergency food assistance agreement under this title 
shall include in such proposal a description of the intended 
uses of any foreign currency proceeds that may be generated 
through the sale, in the recipient country, of any commodities 
provided under an agreement entered into between the 
[Administrator] Under Secretary for Development and Economic 
Affairs and the organization or cooperative.

SEC. 204. LEVELS OF ASSISTANCE.

  (a) Minimum Levels.--
          (1) Minimum assistance.--Except as provided in 
        paragraph (3), the [Administrator] Under Secretary for 
        Development and Economic Affairs shall make 
        agricultural commodities available for food 
        distribution under this title in an amount that--
                  (A) * * *
          * * * * * * *
                  (E) [for fiscal year 1995] for each of the 
                fiscal years 1995 through 1997, is not less 
                than 2,025,000 metric tons.
          (2) Minimum non-emergency assistance.--Of the amounts 
        specified in paragraph (1), and except as provided in 
        paragraph (3), the [Administrator] Under Secretary for 
        Development and Economic Affairs shall make 
        agricultural commodities available for non-emergency 
        food distribution through eligible organizations under 
        section 202 in an amount that--
                  (A) * * *
          * * * * * * *
                  (E) [for fiscal year 1995] for each of the 
                fiscal years 1995 through 1997, is not less 
                than 1,550,000 metric tons.
          (3) Exception.--The [Administrator] Under Secretary 
        for Development and Economic Affairs may waive the 
        requirements of paragraphs (1) and (2) for any fiscal 
        year if the [Administrator] Under Secretary for 
        Development and Economic Affairs determines that such 
        quantities of commodities cannot be used effectively to 
        carry out this title or in order to meet an emergency. 
        In making a waiver under this paragraph, the 
        [Administrator] Under Secretary for Development and 
        Economic Affairs shall prepare and submit to the 
        Committee on Foreign Affairs and Committee on 
        Agriculture of the House of Representatives, and the 
        Committee on Agriculture, Nutrition, and Forestry of 
        the Senate a report containing the reasons for the 
        waiver.
  (b) Use of Value-Added Commodities.--
          (1) Minimum levels.--Except as provided in paragraph 
        (2), in making agricultural commodities available under 
        this title, the [Administrator] Under Secretary for 
        Development and Economic Affairs shall ensure that not 
        less than 75 percent of the quantity of such 
        commodities required to be distributed during each 
        fiscal year under subsection (a)(2) be in the form of 
        processed, fortified, or bagged commodities.
          (2) Waiver of minimum.--The [Administrator] Under 
        Secretary for Development and Economic Affairs may 
        waive the requirement of paragraph (1) for any fiscal 
        year in which the [Administrator] Under Secretary for 
        Development and Economic Affairs determines that the 
        requirements of the programs established under this 
        title will not be best served by the enforcement of 
        such requirement under such paragraph.

SEC. 205. FOOD AID CONSULTATIVE GROUP.

  (a) * * *
  (b) Membership.--The Group shall be composed of--
          (1) the [Administrator] Under Secretary for 
        Development and Economic Affairs;
          * * * * * * *
          (5) representatives from African, Asian and Latin 
        American indigenous non-governmental organizations 
        determined appropriate by the [Administrator] Under 
        Secretary for Development and Economic Affairs.
  (c) Chairperson.--The [Administrator] Under Secretary for 
Development and Economic Affairs shall be the chairperson of 
the Group.
  (d) Consultations.--In preparing regulations, handbooks, or 
guidelines implementing this title, or significant revisions 
thereto, the [Administrator] Under Secretary for Development 
and Economic Affairs shall provide such proposals to the Group 
for review and comment. The [Administrator] Under Secretary for 
Development and Economic Affairs shall consult and, when 
appropriate, meet with the Group regarding such proposed 
regulations, handbooks, guidelines, or revisions thereto prior 
to the issuance of such.

SEC. 207. ADMINISTRATION.

  (a) Proposals.--
          (1) Time for decision.--Not later than 45 days after 
        the receipt by the [Administrator] Under Secretary for 
        Development and Economic Affairs of a proposal 
        submitted--
                  (A) by a private voluntary organization or 
                cooperative, with the concurrence of the 
                appropriate United States field mission, for 
                commodities; or
                  (B) by a United States field mission to make 
                commodities available to a private voluntary 
                organization or cooperative;
        under this title, the [Administrator] Under Secretary 
        for Development and Economic Affairs shall make a 
        decision concerning such proposal.
          (2) Denial.--If a proposal under paragraph (1) is 
        denied, the response shall specify the reasons for 
        denial and the conditions that must be met for the 
        approval of such proposal.
  (b) Notice and Comment.--Not later than 30 days prior to the 
issuance of a final guideline to carry out this title, the 
[Administrator] Under Secretary for Development and Economic 
Affairs shall--
          (1) * * *
          * * * * * * *
  (c) Regulations.--
          (1) In general.--The [Administrator] Under Secretary 
        for Development and Economic Affairs shall promptly 
        issue all necessary regulations and make revisions to 
        agency guidelines with respect to changes in the 
        operation or implementation of the program established 
        under this title.
          (2) Requirements.--The [Administrator] Under 
        Secretary for Development and Economic Affairs shall 
        develop regulations with the intent of--
                  (A) * * *
          * * * * * * *
          (3) Handbooks.--Handbooks developed by the 
        [Administrator] Under Secretary for Development and 
        Economic Affairs to assist in carrying out the program 
        under this title shall be designed to foster the 
        development of programs under this title by eligible 
        organizations.
          * * * * * * *

                    TITLE III--FOOD FOR DEVELOPMENT

SEC. 301. BILATERAL GRANT PROGRAM.

  (a) In General.--The President shall establish a program 
under which agricultural commodities are donated in accordance 
with this title to least developed countries. The revenue 
generated by the sale of such commodities in the recipient 
country may be utilized for economic development activities. 
Such program shall be implemented by the [Administrator] Under 
Secretary for Development and Economic Affairs.
  (b) General Authority.--To carry out the policies and 
accomplish the objectives described in section 2, the 
[Administrator] Under Secretary for Development and Economic 
Affairs may negotiate and execute agreements with least 
developed countries to provide commodities to such countries on 
a grant basis.

SEC. 302. ELIGIBLE COUNTRIES.

  (a) Least Developed Countries.--A country shall be considered 
to be a least developed country and eligible for the donation 
of agricultural commodities under this title if--
          (1) such country meets the poverty criteria 
        established by the International Bank for 
        Reconstruction and Development for Civil Works 
        Preference for providing financial assistance; or
          (2) such country is a food deficit country and is 
        characterized by high levels of malnutrition among 
        significant numbers of its population, as determined by 
        the [Administrator] Under Secretary for Development and 
        Economic Affairs under subsection (b).
  (b) Indicators of Food Deficit Countries.--To make a finding 
under subsection (a)(2) that a country is a food deficit 
country and is characterized by high levels of malnutrition, 
the [Administrator] Under Secretary for Development and 
Economic Affairs must determine that the country meets all of 
the following indicators of national food deficit and 
malnutrition:
          (1) * * *
          * * * * * * *
  (c) Priority.--In determining whether and to what extent 
agricultural commodities shall be made available to least 
developed countries under this title, the [Administrator] Under 
Secretary for Development and Economic Affairs shall give 
priority to countries that--
          (1) * * *
          * * * * * * *

SEC. 303. GRANT PROGRAMS.

  To carry out the policies and accomplish the objectives 
described in section 2, the [Administrator] Under Secretary for 
Development and Economic Affairs may negotiate and execute 
agreements with least developed countries to provide 
commodities to such countries on a grant basis either through 
the Commodity Credit Corporation or through private trade 
channels.

SEC. 304. DIRECT USES OR SALES OF COMMODITIES.

  Agricultural commodities provided to a least developed 
country under this section--
          (1) * * *
          (2) may be sold in such country by the government of 
        the country or the [Administrator] Under Secretary for 
        Development and Economic Affairs (or their designees) 
        as provided in the agreement, and the proceeds of such 
        sale used in accordance with this title.

SEC. 305. LOCAL CURRENCY ACCOUNTS.

  (a) Retention of Proceeds.--To the extent determined to be 
appropriate by the [Administrator] Under Secretary for 
Development and Economic Affairs, revenues generated from the 
sale, under section 304(2), of agricultural commodities 
provided under this title shall be deposited into a separate 
account (that may be interest bearing) in the recipient country 
to be disbursed for the benefit of such country in accordance 
with local currency agreements entered into between the 
recipient country and the [Administrator] Under Secretary for 
Development and Economic Affairs. The [Administrator] Under 
Secretary for Development and Economic Affairs may determine 
not to deposit such revenues in a separate account if--
          (1) local currencies are to be programmed for 
        specific economic development purposes listed in 
        section 306(a); and
          (2) the recipient country programs an equivalent 
        amount of money for such purposes as specified in an 
        agreement entered into by the [Administrator] Under 
        Secretary for Development and Economic Affairs and the 
        recipient country.
  (b) Ownership and Programming of Accounts.--The proceeds of 
sales pursuant to section 304(2) shall be the property of the 
recipient country or the United States, as specified in the 
applicable agreement. Such proceeds shall be utilized for the 
benefit of the recipient country, shall be jointly programmed 
by the [Administrator] Under Secretary for Development and 
Economic Affairs and the government of the recipient country, 
and shall be disbursed for the benefit of such country in 
accordance with local currency agreements between the 
[Administrator] Under Secretary for Development and Economic 
Affairs and that government.
  (c) Overall Development Strategy.--The [Administrator] Under 
Secretary for Development and Economic Affairs shall consider 
the local currency proceeds as an integral part of the overall 
development strategy of the Agency for International 
Development and the recipient country.
SEC. 306. USE OF LOCAL CURRENCY PROCEEDS.

  (a) * * *
          * * * * * * *
  (d) Support for Certain Educational Institutions.--If the 
[Administrator] Under Secretary for Development and Economic 
Affairs determines that local currencies deposited in a special 
account pursuant to this title are not needed for any of the 
activities prescribed in paragraphs (1) through (13) of 
subsection (a) or for any other specific economic development 
purpose in the recipient country, the [Administrator] Under 
Secretary for Development and Economic Affairs may use those 
currencies to provide support for any institution (other than 
an institution whose primary purpose is to provide religious 
education) located in the recipient country that provides 
education in agricultural sciences or other disciplines for a 
significant number of United States nationals (who may include 
members of the United States Armed Forces or the Foreign 
Service or dependents of such members).

             TITLE IV--GENERAL AUTHORITIES AND REQUIREMENTS

          * * * * * * *

SEC. 402. DEFINITIONS.

  As used in this Act:
          (1) [Administrator] Under Secretary for Development 
        and Economic Affairs.--The term ``[Administrator] Under 
        Secretary for Development and Economic Affairs'' means 
        the [Administrator] Under Secretary for Development and 
        Economic Affairs of the Agency for International 
        Development, unless otherwise specified in this Act.
          * * * * * * *

SEC. 403. GENERAL PROVISIONS.

  (a) * * *
  (b) Consultations.--The Secretary or the [Administrator] 
Under Secretary for Development and Economic Affairs, as 
appropriate, shall consult with representatives from the 
International Monetary Fund, the International Bank for 
Reconstruction and Development, the World Bank, and other donor 
organizations to ensure that the importation of United States 
agricultural commodities and the use of local currencies for 
development purposes will not have a disruptive impact on the 
farmers or the local economy of the recipient country.
  (c) Transshipment.--The Secretary or the [Administrator] 
Under Secretary for Development and Economic Affairs, as 
appropriate, shall, under such terms and conditions as are 
determined to be appropriate, require commitments from 
countries designed to prevent or restrict the resale or 
transshipment to other countries, for use for other than 
domestic purposes, of agricultural commodities donated or 
purchased under this Act.
          * * * * * * *
  (g) Participation of Private Sector.--The Secretary or the 
[Administrator] Under Secretary for Development and Economic 
Affairs, as appropriate, shall encourage the private sector of 
the United States and private importers in developing countries 
to participate in the programs established under this Act.
  (h) Safeguard Usual Marketings.--In carrying out this Act, 
reasonable precautions shall be taken to safeguard the usual 
marketings of the United States and to avoid displacing any 
sales of the United States agricultural commodities that the 
Secretary or [Administrator] Under Secretary for Development 
and Economic Affairs determines would otherwise be made.
  (i) Military Distribution of Food Aid.--
          (1) In general.--The Secretary or the [Administrator] 
        Under Secretary for Development and Economic Affairs, 
        as appropriate, shall attempt to ensure that 
        agricultural commodities made available under this Act 
        will be provided without regard to the political 
        affiliation, geographic location, ethnic, tribal, or 
        religious identity of the recipient or without regard 
        to other extraneous factors.
          (2) Prohibition on handling of commodities by the 
        military.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the Secretary or the 
                [Administrator] Under Secretary for Development 
                and Economic Affairs, as appropriate, shall not 
                enter into an agreement under this Act to 
                provide agricultural commodities if such 
                agreement requires or permits the distribution, 
                handling, or allocation of such commodities by 
                the military forces of any government or 
                insurgent group.
                  (B) Exception.--Notwithstanding subparagraph 
                (A), the Secretary or the [Administrator] Under 
                Secretary for Development and Economic Affairs, 
                as appropriate, may authorize the handling or 
                distribution of commodities by the military 
                forces of a country in exceptional 
                circumstances in which--
                          (i) nonmilitary channels are not 
                        available for such handling or 
                        distribution;
                          (ii) such action is consistent with 
                        the requirements of paragraph (1); and
                          (iii) the Secretary or the 
                        [Administrator] Under Secretary for 
                        Development and Economic Affairs, as 
                        appropriate, determines that such 
                        action is necessary to meet the 
                        emergency health, safety, or 
                        nutritional requirements of the 
                        recipient population.
                  (C) Report.--Not later than 30 days after an 
                authorization is provided under subparagraph 
                (B), the Secretary or the [Administrator] Under 
                Secretary for Development and Economic Affairs, 
                as appropriate, shall prepare and submit to the 
                appropriate committees of Congress a report 
                concerning such authorization and include in 
                any such report the reason for the 
                authorization, including an explanation of why 
                no alternatives to such handling or 
                distribution were available.
          (3) Encouragement of safe passage.--When entering 
        into agreements under this Act that involve areas 
        within recipient countries that are experiencing 
        protracted warfare or civil strife, the Secretary or 
        the [Administrator] Under Secretary for Development and 
        Economic Affairs, as appropriate, shall, to the extent 
        practicable, encourage all parties to the conflict to 
        permit safe passage of the commodities and other relief 
        supplies and to establish safe zones for medical and 
        humanitarian treatment and evacuation of injured 
        persons.
  (j) Violations of Human Rights.--
          (1) Ineligible countries.--The Secretary or the 
        [Administrator] Under Secretary for Development and 
        Economic Affairs, as appropriate, shall not enter into 
        any agreement under this Act to provide agricultural 
        commodities, or to finance the sale of agricultural 
        commodities, to the government of any country 
        determined by the President to engage in a consistent 
        pattern of gross violations of internationally 
        recognized human rights, including--
                  (A) * * *
          * * * * * * *

SEC. 404. AGREEMENTS.

  (a) In General.--Before entering into agreements under titles 
I and III for the provision of commodities, the Secretary or 
the [Administrator] Under Secretary for Development and 
Economic Affairs, as appropriate, shall consider the extent to 
which the recipient country is undertaking measures for 
economic development purposes in order to improve food security 
and agricultural development, alleviate poverty, and promote 
broad-based, equitable, and sustainable development.
  (b) Terms of Agreement.--An agreement entered into under this 
Act shall--
          (1) * * *
          * * * * * * *
          (5) contain such other terms and conditions as the 
        Secretary or the [Administrator] Under Secretary for 
        Development and Economic Affairs, as appropriate, 
        determines to be necessary.
  (c) Multi-year Agreements.--
          (1) In general.--Agreements to provide assistance on 
        a multi-year basis under this Act shall be made 
        available to recipient countries or to eligible 
        organizations.
          (2) Exception.--The Secretary or the [Administrator] 
        Under Secretary for Development and Economic Affairs, 
        as appropriate, may determine not to make assistance 
        available on a multi-year basis with respect to a 
        recipient country or an eligible organization if it is 
        determined that assistance should be provided to such 
        country or through such organization only on an annual 
        basis because--
                  (A) * * *
          * * * * * * *
                  (C) other circumstances, as determined by the 
                Secretary or the [Administrator] Under 
                Secretary for Development and Economic Affairs, 
                as appropriate, indicate there is only a need 
                for a 1 year agreement.
  (d) Review of Agreements.--The Secretary or the 
[Administrator] Under Secretary for Development and Economic 
Affairs, as appropriate, may make a determination to terminate, 
or refuse to enter into, a multi-year agreement with respect to 
a recipient country if the Secretary or the [Administrator] 
Under Secretary for Development and Economic Affairs determines 
that such country is not fulfilling the objectives or 
requirements of this Act. In making such a determination, the 
Secretary or the [Administrator] Under Secretary for 
Development and Economic Affairs, as appropriate, may consider 
the extent to which the country is--
          (1) * * *
          * * * * * * *

SEC. 405. CONSULTATION.

  The Secretary and the [Administrator] Under Secretary for 
Development and Economic Affairs shall cooperate and consult in 
the implementation of this Act.
          * * * * * * *

SEC. 407. ADMINISTRATIVE PROVISIONS.

  (a) * * *
          * * * * * * *
  (d) Title II and III Program.--
          (1) Acquisition.--The [Administrator] Under Secretary 
        for Development and Economic Affairs shall transfer, 
        arrange for the transportation, and take other steps 
        necessary to make available agricultural commodities to 
        be provided under title II and title III.
          (2) Full and Open Competition.--No purchase of 
        agricultural commodities from private stocks or 
        purchase of ocean transportation services by the United 
        States Government shall be financed under titles II and 
        III unless such purchases are made on the basis of full 
        and open competition utilizing such procedures as are 
        determined necessary and appropriate by the 
        [Administrator] Under Secretary for Development and 
        Economic Affairs.
          (4) Ocean Transportation Services.--Notwithstanding 
        any provision of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 471 et 
        seq.) or other similar provisions relating to the 
        making or performance of Federal Government contracts, 
        the [Administrator] Under Secretary for Development and 
        Economic Affairs may procure ocean transportation 
        services under this Act under such full and open 
        competitive procedures as the [Administrator] Under 
        Secretary for Development and Economic Affairs 
        determines are necessary and appropriate.
  (e) Timing of Shipments.--In determining the timing of the 
shipment of agricultural commodities to be provided under this 
Act, the Secretary or the [Administrator] Under Secretary for 
Development and Economic Affairs, as appropriate, shall 
consider--
          (1) * * *
          * * * * * * *
  (h) World Food Day Report.--On World Food Day, October 16 of 
each year, the President shall submit to the appropriate 
committees of Congress a report, prepared with the assistance 
of the Secretary and the [Administrator] Under Secretary for 
Development and Economic Affairs, assessing progress towards 
food security in each country receiving United States 
Government food assistance. Special emphasis should be given in 
such report to the nutritional status of the poorest 
populations in such countries.
          * * * * * * *
                              ----------                              

              DEPARTMENT OF STATE APPROPRIATION ACT, 1937

          * * * * * * *

                      TITLE I--DEPARTMENT OF STATE

          * * * * * * *

                   international fisheries commission

          * * * * * * *
  The Secretary of State is authorized to accept reimbursement 
from corporations, firms, and individuals for the expenses of 
travel, translation, printing, special experts, and other 
[extraordinary] expenses incurred in pursuing a claim on their 
behalf against a foreign government or other foreign entity. 
Such reimbursements shall be credited to the appropriation 
account against which the expense was initially charged.
          * * * * * * *
                              ----------                              


SECTION 1689 OF THE REVISED STATUTES OF THE UNITED STATES

          * * * * * * *

             TITLE XVIII--DIPLOMATIC AND CONSULAR OFFICERS

                              CHAPTER ONE

          * * * * * * *

                     CHAPTER TWO--CONSULAR OFFICERS

          * * * * * * *
    Sec. 1689. The various provisions of this Title which are 
expressed in terms of general application to any particular 
classes of consular officers, shall be deemed to apply as well 
to all other classes of such officers and to such other United 
States citizen employees of the Department of State as may be 
designated by the Secretary of State pursuant to such 
regulations as the Secretary may prescribe, so far as may be 
consistent with the subject-matter of the same, and with the 
treaties of the United States.
                              ----------                              

     SECTION 2 OF THE MIGRATION AND REFUGEE ASSISTANCE ACT OF 1962

  Sec. 2. (a) * * *
          * * * * * * *
  (c)(1) * * *
          * * * * * * *
  (4) Notwithstanding any other provision of this Act, the 
President shall notify the appropriate congressional committees 
not less than 15 days before transferring or otherwise making 
available amounts from the United States Emergency Refugee and 
Migration Assistance Fund under paragraph (1).
  [(d) The President shall keep the appropriate committees of 
Congress currently informed of the use of funds and the 
exercise of functions authorized in this Act.]
  (d)(1) Except as provided in paragraph (2), and 
notwithstanding any other provision of this Act, the President 
shall notify the appropriate congressional committees at least 
15 days in advance of the obligation or expenditure of sums 
from the United States Emergency Refugee and Migration 
Assistance Fund under subsection (c).
  (2) Notwithstanding the notification requirement of paragraph 
(1), the President may obligate and expend sums from the United 
States Emergency Refugee and Migration Assistance Fund if the 
President determines, and promptly certifies to the appropriate 
congressional committees, that unforseen emergency 
circumstances require the immediate obligation of sums from 
such fund. Any such certification shall fully inform such 
committees of the amount and use of such sums from the Fund.
  (3) For purposes of this section, the term ``appropriate 
congressional committees'' means the Committee on International 
Relations and the Committee on Appropriations of the House of 
Representatives and the Committee on Foreign Relations and the 
Committee on Appropriations of the Senate.
          * * * * * * *
                              ----------                              

           SECTION 101 OF THE IMMIGRATION AND NATIONALITY ACT

          * * * * * * *

                            TITLE I--GENERAL

                              definitions

  Section 101. (a) As used in this Act--
  (1) * * *
          * * * * * * *
  (42) The term ``refugee'' means (A) any person who is outside 
any country of such person's nationality or, in the case of a 
person having no nationality, is outside any country in which 
such person last habitually resided, and who is unable or 
unwilling to return to, and is unable or unwilling to avail 
himself or herself of the protection of, that country because 
of persecution or a well-founded fear of persecution on account 
of race, religion, nationality, membership in a particular 
social group, or political opinion, or (B) in such 
circumstances as the President after appropriate consultation 
(as defined in section 207(e) of this Act) may specify, any 
person who is within the country of such person's nationality 
or, in the case of a person having no nationality, within the 
country in which such person is habitually residing, and who is 
persecuted or who has a well-founded fear of persecution on 
account of race, religion, nationality, membership in a 
particular social group, or political opinion. The term 
``refugee'' does not include any person who ordered, incited, 
assisted, or otherwise participated in the persecution of any 
person on account of race, religion, nationality, membership in 
a particular social group, or political opinion. For purposes 
of determinations under this Act, a person who has been forced 
to abort a pregnancy or to undergo involuntary sterilization, 
or who has been persecuted for failure or refusal to undergo 
such a procedure or for other resistance to a coercive 
population control program, shall be deemed to have been 
persecuted on account of political opinion, and a person who 
has a well founded fear that he or she will be forced to 
undergo such a procedure or subjected to persecution for such 
failure, refusal, or resistance shall be deemed to have a well 
founded fear of persecution on account of political opinion.
          * * * * * * *
                              ----------                              

      FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS 
                        APPROPRIATIONS ACT, 1990

          * * * * * * *

                      TITLE V--GENERAL PROVISIONS

          * * * * * * *

       establishing categories of aliens for purposes of refugee 
                             determinations

  Sec. 599D. (a) * * *
  (b) Establishment of Categories.--
          (1) * * *
          * * * * * * *
          (3) Within the number of admissions of refugees 
        allocated for fiscal years 1990, 1991, and 1992 for 
        refugees who are nationals of the Soviet Union under 
        section 207(a)(3) of the Immigration and Nationality 
        Act and within the number of such admissions allocated 
        for each of fiscal years 1993, 1994, 1995, [and 1996] 
        1996, and 1997 for refugees who are nationals of the 
        independent states of the former Soviet Union, Estonia, 
        Latvia, and Lithuania under such section, 
        notwithstanding any other provision of law, the 
        President shall allocate one thousand of such 
        admissions for such fiscal year to refugees who are 
        within the category of aliens described in paragraph 
        (2)(B).
          * * * * * * *
  (e) Period of Application.--
          (1) Subsections (a) and (b) shall take effect on the 
        date of the enactment of this Act and shall only apply 
        to applications for refugee status submitted before 
        October 1, [1996] 1997.
          (2) Subsection (c) shall apply to decisions made 
        after the date of the enactment of this Act and before 
        October 1, [1996] 1997.
          (3) Subsection (d) shall take effect on the date of 
        the enactment of this Act and shall only apply to 
        reapplications for refugee status submitted before 
        October 1, [1996] 1997.
    adjustment of status for certain soviet and indochinese parolees

  Sec. 599E. (a) * * *
  (b) Aliens Eligible for Adjustment of Status.--The benefits 
provided in subsection (a) shall only apply to an alien who--
          (1) was a national of the Soviet Union, Vietnam, 
        Laos, or Cambodia, and
          (2) was inspected and granted parole into the United 
        States during the period beginning on August 15, 1988, 
        and ending on September 30, [1996] 1997, after being 
        denied refugee status.
                  (A)  * * *
          * * * * * * *
                              ----------                              

                     FOREIGN ASSISTANCE ACT OF 1961

                                 PART I

          * * * * * * *
  Sec. 104. Population and Health.--(a)  * * *
  (b) Assistance for Population Planning.--[In order to] (1) In 
order to increase the opportunities and motivation for family 
planning and to reduce the rate of population growth, the 
President is authorized to furnish assistance, on such terms 
and conditions as he may determine, for voluntary population 
planning. Such assistance shall be available only for voluntary 
family planning projects which offer, either directly or 
through referral to, or information about access to, a broad 
range of family planning methods and services. In addition to 
the provision of family planning information and services, 
including also information and services which relate to and 
support natural family planning methods, and the conduct of 
directly relevant demographic research, population planning 
programs shall emphasize motivation for small families.
  (2) None of the funds made available to carry out this 
subsection may be made available to any organization or program 
which, as determined by the President, supports or participates 
in the management of a program of coercive abortion or 
involuntary sterilization.
  (3) In providing grants for natural family planning under 
this subsection, the administrator of the agency primarily 
responsible for administering this part shall not discriminate 
against applicants because of any religious or conscientious 
commitment by such applicants to offer only natural family 
planning services.
          * * * * * * *
  (f) Prohibition on Use of Funds for Abortions and Involuntary 
Sterilizations.--(1) [None of the funds] (A) None of the funds 
made available to carry out this part 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.
  (B) For purposes of this paragraph, the term ``motivate'' 
shall not be construed to prohibit the provision, consistent 
with local law, of information and counseling concerning all 
pregnancy options, including abortion.
          * * * * * * *
  [Sec. 108. Private Sector Revolving Fund.--(a) The Congress 
finds that the development of private enterprise, including 
cooperatives, is a vital factor in the stable growth of 
developing countries and in the development and stability of a 
free, open, and equitable international economic system. It is 
therefore in the best interests of the United States to assist 
the development of the private sector in developing countries 
and to engage the United States private sector in that process. 
In order to promote such private sector development, the 
President is authorized to establish a revolving fund account 
in the United States Treasury. All funds deposited in such 
account shall, notwithstanding any provision in an 
appropriation Act to the contrary, be free from fiscal year 
limitations.
  [(b) Of the funds made available under this chapter in each 
of the fiscal years 1986 and 1987, up to $18,000,000 may be 
deposited in this account. Such funds used in accordance with 
the policies and authorities of this section shall be in 
addition to other funds available for private sector activities 
under other authorities in this Act. Any reflows and income 
arising from activities carried out pursuant to this section, 
including loan repayments and fee income (as provided in 
subsection (e) of this section), shall be deposited into the 
revolving fund and remain available to carry out the purposes 
of this section. All funds in such account may be invested in 
obligations of the United States.
  [(c)(1) The agency primarily responsible for administering 
this part is authorized to use the funds maintained in this 
revolving fund account to furnish assistance in furtherance of 
the policy of subsection (a) on such terms and conditions as it 
may determine. Amounts in the revolving fund account shall be 
available for obligation for assistance under this section only 
to such extent as may be provided in advance in appropriation 
Acts. Assistance may be provided under this section without 
regard to sections 604(a) and 620(r) of this Act.
  [(2) Assistance under this section may be provided only to 
support private sector activities which--
          [(A) are consistent with the United States 
        development assistance policies set forth in section 
        102 of this Act and with the development priorities of 
        the host country;
          [(B) are the types of activities for which assistance 
        may be provided under sections 103 through 106 of this 
        Act;
          [(C) will have a demonstration effect;
          [(D) will be innovative;
          [(E) are financially viable;
          [(F) will maximize the development impact appropriate 
        to the host country, particularly in employment and the 
        use of appropriate technology; and
          [(G) are primarily directed to making available to 
        small business enterprises and cooperatives necessary 
        support and services which are not otherwise generally 
        available.
In determining whether an enterprise is a small business 
enterprise, the agency primarily responsible for administering 
this part shall take into consideration the enterprise's total 
net fixed assets and number of employees, together with the 
relevant definition utilized by the host country government and 
the International Bank for Reconstruction and Development and 
other international organizations.
  [(3)(A) Not more than $3,000,000 may be made available under 
this section to support any one project.
  [(B) Not more than 50 per centum of the financial support for 
any project may be provided under this section, and a 
substantial portion of the financial support for a project 
assisted under this section must be provided by sources within 
the host country.
  [(C) Not more than 20 per centum of the assets of the 
revolving fund account under this section may be used to 
support projects in any one country.
  [(D) In order to maximize the impact on institution building, 
loans under this section shall be made primarily to 
intermediary entities which provide necessary support and 
services for private sector activities.
  [(E) Loans under this section shall be at or near the 
interest rate otherwise available to the recipient.
  [(d)(1) If at any time the assets of the revolving fund 
account exceeds $100,000,000, the President shall remit the 
amount in excess of $100,000,000 to the United States Treasury.
  [(2) As used in this section, ``assets'' includes amounts in 
the revolving fund account plus the value of investments made 
with amounts from the fund plus the current value of 
outstanding obligations under loans under this section.
  [(3) In addition to the requirement of paragraph (1), at the 
end of any fiscal year, the agency primarily responsible for 
administering this part may determine that amounts in the 
revolving fund are sufficient to permit the remittance to the 
United States Treasury of an amount equal to a portion or the 
total amount of appropriated funds deposited in the revolving 
fund. Any such remittance shall be deemed to be a decrease in 
the appropriated funds in the revolving fund. After remittance 
has been made of an amount equal to the total amount of 
appropriated funds, the revolving fund shall consist and be 
deemed to consist entirely of nonappropriated funds.
  [(e) A fee may be charged, where appropriate, in carrying out 
activities with funds from the revolving fund authorized in 
this section. The amount of any such fee shall be determined by 
the agency primarily responsible for administering this part.
  [(f) In the event the revolving fund is terminated, all 
unobligated money in the fund at the time of such termination 
shall be transferred to and become part of the miscellaneous 
receipts account of the Treasury.
  [(g) As part of its annual congressional presentation 
documents submitted to the Congress, the agency primarily 
responsible for administering this part shall include a 
description of projects proposed to be funded from the 
revolving fund account for that fiscal year. To the extent that 
projects are proposed for funding which are not contained in 
the annual congressional presentation documents, at least 
fifteen days' advance notification shall be provided to the 
Congress in accordance with section 634A of this Act.
  [(h) Not later than December 31 of each year, the President 
shall submit a comprehensive report which details all projects 
funded under this section during the previous fiscal year, all 
reflows to the revolving fund account, a status report on all 
projects currently contained in the fund's portfolio. Such 
reports shall include, but not be limited to, information 
regarding numbers and kinds of beneficiaries reached, amounts 
and kinds of benefits provided by the funded projects to 
targeted populations, and a justification for projects within 
the context of the goals and objectives of the United States 
development assistance program.
  [(i)(1) To carry out the purposes of subsection (a), in 
addition to the other authorities set forth in this section, 
the agency primarily responsible for administering this part is 
authorized to issue guarantees on such terms and conditions as 
it shall determine assuring against losses incurred in 
connection with loans made to projects that meet the criteria 
set forth in subsection (c). The full faith and credit of the 
United States is hereby pledged for the full payment and 
performance of such guarantees.
  [(2) Loans guaranteed under this subsection shall be on such 
terms and conditions as the agency may prescribe, except for 
the following:
          [(A) The agency shall issue guarantees only when it 
        is necessary to alleviate a credit market imperfection.
          [(B) Loans guaranteed shall provide for complete 
        amortization within a period not to exceed ten years 
        or, if the principal purpose of the guaranteed loan is 
        to finance the construction or purchase of a physical 
        asset with a useful life of less than ten years, within 
        a period not to exceed such useful life.
          [(C) No loan guaranteed to any one borrower may 
        exceed 50 percent of the cost of the activity to be 
        financed, or $3,000,000, whichever is less, as 
        determined by the agency.
          [(D) No loan may be guaranteed unless the agency 
        determines that the lender is responsible and that 
        adequate provision is made for servicing the loan on 
        reasonable terms and protecting the financial interest 
        of the United States.
          [(E) The fees earned from the loan guarantees issued 
        under this subsection shall be deposited in the 
        revolving fund account as part of the guarantee reserve 
        established under paragraph (5) of this subsection. 
        Fees shall be assessed at a level such that the fees 
        received, plus the funds from the revolving fund 
        account placed in the guarantee reserve satisfy the 
        requirements of paragraph (5). Fees shall be reviewed 
        every twelve months to ensure that the fees assessed on 
        new loan guarantees are at the required level.
          [(F) Any guarantee shall be conclusive evidence that 
        such guarantee has been properly obtained, and that the 
        underlying loan as contracted qualifies for such 
        guarantee. Except for fraud or material 
        misrepresentation for which the parties seeking payment 
        under such guarantee are responsible, such guarantee 
        shall be presumed to be valid, legal, and enforceable.
          [(G) The agency shall determine that the standards 
        used by the lender for assessing the credit risk of new 
        and existing guaranteed loans are reasonable. The 
        agency shall require that there be a reasonable 
        assurance of repayment before credit assistance is 
        extended.
          [(H) Commitments to guarantee loans may be made by 
        the agency only to the extent that the total loan 
        principal, any part of which is guaranteed, will not 
        exceed the amount specified in annual appropriations 
        Acts.
  [(3) To the extent that fees are not sufficient as specified 
under paragraph (2)(E) to cover expected future liabilities, 
appropriations are authorized to maintain an appropriate 
reserve.
  [(4) The losses guaranteed under this subsection may be in 
dollars or in other currencies. In the case of loans in 
currencies other than dollars, the guarantees issued shall be 
subject to an overall payment limitation expressed in dollars.
  [(5) The agency shall segregate in the revolving fund account 
and hold as a reserve an amount estimated to be sufficient to 
cover the agency's expected net liabilities on the loan 
guarantees outstanding under this subsection; except that the 
amount held in reserve shall not be less than 25 percent of the 
principal amount of the agency's outstanding contingent 
liabilities on such guarantees. Any payments made to discharge 
liabilities arising from the loan guarantees shall be paid 
first out of the assets in the revolving fund account and next 
out of other funds made available for this purpose.]
SEC. 108. MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS.

  (a) Findings and Policy.--The Congress finds and declares 
that--
          (1) the development of micro- and small enterprise, 
        including cooperatives, is a vital factor in the stable 
        growth of developing countries and in the development 
        and stability of a free, open, and equitable 
        international economic system;
          (2) it is, therefore, in the best interests of the 
        United States to assist the development of the private 
        sector in developing countries and to engage the United 
        States private sector in that process;
          (3) the support of private enterprise can be served 
        by programs providing credit, training, and technical 
        assistance for the benefit of micro- and small 
        enterprises; and
          (4) programs that provide credit, training, and 
        technical assistance to private institutions can serve 
        as a valuable complement to grant assistance provided 
        for the purpose of benefiting micro- and small private 
        enterprise.
  (b) Program.--To carry out the policy set forth in subsection 
(a), the President is authorized to provide assistance to 
increase the availability of credit to micro- and small 
enterprises lacking full access to credit, including through--
          (1) loans and guarantees to credit institutions for 
        the purpose of expanding the availability of credit to 
        micro- and small enterprises;
          (2) training programs for lenders in order to enable 
        them to better meet the credit needs of micro- and 
        small entrepreneurs; and
          (3) training programs for micro- and small 
        entrepreneurs in order to enable them to make better 
        use of credit and to better manage their enterprises.
          * * * * * * *
  Sec. 116. Human Rights.--(a) * * *
          * * * * * * *
  (c) In determining whether or not a government falls within 
the provisions of subsection (a) and in formulating development 
assistance programs under this part, the Administrator shall 
consider, in consultation with the [Assistant Secretary of 
State for Democracy, Human Rights, and Labor] Secretary--
          (1) * * *
          * * * * * * *
  (d) The Secretary of State shall transmit to the Speaker of 
the House of Representatives and the Committee on Foreign 
Relations of the Senate, by January 31 of each year, a full and 
complete report regarding--
          (1) * * *
          (2) wherever applicable, practices regarding coercion 
        in population control, including coerced abortion and 
        involuntary sterilization; [and]
          (3) the votes of each member of the United Nations 
        Commission on Human Rights on all country-specific and 
        thematic resolutions voted on at the Commission's 
        annual session during the period covered during the 
        preceding year;
          (4) the extent to which each country has extended 
        protection to refugees, including the provision of 
        first asylum and resettlement; and
          [(3)] (5) the steps the Administrator has taken to 
        alter United States programs under this part in any 
        country because of human rights considerations.
          * * * * * * *
  Sec. 123. Private and Voluntary Organizations and 
Cooperatives in Overseas Development.--(a)  * * *
          * * * * * * *
  [(e) Prohibitions on assistance to countries contained in 
this or any other Act shall not be construed to prohibit 
assistance by the agency primarily responsible for 
administering this part in support of programs of private and 
voluntary organizations and cooperatives already being 
supported prior to the date such prohibition becomes 
applicable. The President shall take into consideration, in any 
case in which statutory prohibitions on assistance would be 
applicable but for this subsection, whether continuation of 
support for such programs is in the national interest of the 
United States. If the President continues such support after 
such date, he shall prepare and transmit, not later than one 
year after such date, to the Speaker of the House of 
Representatives and to the chairman of the Committee on Foreign 
Relations of the Senate a report setting forth the reasons for 
such continuation.]
  (e)(1) Subject to paragraph (3), restrictions contained in 
this Act or any other provision of law with respect to 
assistance for a country shall not be construed to restrict 
assistance under this chapter, chapter 10, or chapter 11 of 
this part in support of programs of nongovernmental 
organizations.
  (2) The President shall take into consideration, in any case 
in which a restriction on assistance for a country would be 
applicable but for this subsection, whether assistance for 
programs of nongovernmental organizations is in the national 
interest of the United States.
  (3) Whenever the authority of this subsection is used to 
furnish assistance for a program of a nongovernmental 
organization, the President shall notify the congressional 
committees specified in section 634A(a) of this Act in 
accordance with procedures applicable to reprogramming 
notifications under that section. Such notification shall 
describe the program assisted, the assistance provided, and the 
reasons for furnishing such assistance.
          * * * * * * *
  [(g) After December 31, 1984, funds made available to carry 
out section 103(a), 104(b), 104(c), 105, 106, 491, or 496  of 
this Act may not be made available for programs of any United 
States private and voluntary organization which does not obtain 
at least 20 percent of its total annual financial support for 
its international activities from sources other than the United 
States Government, except that this restriction does not apply 
with respect to programs which, as of that date, are receiving 
financial support from the agency primarily responsible for 
administering this part. The Administrator of the agency 
primarily responsible for administering this part may, on a 
case-by-case basis, waive the restriction established by this 
subsection, after taking into account the effectiveness of the 
overseas development activities of the organization, its level 
of volunteer support, its financial viability and stability, 
and the degree of its dependence for its financial support on 
the agency primarily responsible for administering this part.]
  (g) Funds made available to carry out this chapter or chapter 
10 of this part may not be made available to any United States 
private and voluntary organization, except any cooperative 
development organization, that obtains less than 20 percent of 
its total annual financial support for its international 
activities from sources other than the United States 
Government.
          * * * * * * *
SEC. 129. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.

  (a) Authorization.--(1) In carrying out this part, the 
administrator of the agency primarily responsible for 
administering this part is authorized to provide grant 
assistance for programs of credit and other assistance for 
microenterprises in developing countries.
  (2) Assistance authorized under paragraph (1) shall be 
provided through the following organizations that have a 
capacity to develop and implement microenterprise programs:
          (A) United States and indigenous private and 
        voluntary organizations.
          (B) United States and indigenous credit unions and 
        cooperative organizations.
          (C) Other indigenous governmental and nongovernmental 
        organizations.
  (3) Approximately 50 percent of assistance authorized under 
paragraph (1) shall be used for poverty lending programs 
which--
          (A) meet the needs of the very poor members of 
        society, particularly poor women; and
          (B) provide loans of $300 or less in 1995 United 
        States dollars to such poor members of society.
  (4) The administrator of the agency primarily responsible for 
administering this part shall strengthen appropriate 
mechanisms, including mechanisms for central microenterprise 
programs, for the purpose of--
          (A) providing technical support for field missions;
          (B) strengthening the institutional development of 
        the intermediary organizations described in paragraph 
        (2); and
          (C) sharing information relating to the provision of 
        assistance authorized under paragraph (1) between such 
        field missions and intermediary organizations.
  (b) Monitoring System.--In order to maximize the sustainable 
development impact of the assistance authorized under 
subsection (a)(1), the administrator of the agency primarily 
responsible for administering this part shall establish a 
monitoring system that--
          (1) establishes performance goals for such assistance 
        and expresses such goals in an objective and 
        quantifiable form, to the extent feasible;
          (2) establishes performance indicators to be used in 
        measuring or assessing the achievement of the goals and 
        objectives of such assistance; and
          (3) provides a basis for recommendations for 
        adjustments to such assistance to enhance the 
        sustainable development impact of such assistance, 
        particularly the impact of such assistance on the very 
        poor, particularly poor women.

SEC. 130. EFFECTIVENESS OF UNITED STATES DEVELOPMENT ASSISTANCE.

  (a) Reports.--Not later than December 31, 1996, and December 
31 of each third year thereafter, the President shall transmit 
to the Congress a report which analyzes, on a country-by-
country basis, the impact and effectiveness of the United 
States development assistance provided during the preceding 
three fiscal years. Each report shall include the following for 
each recipient country:
          (1) An analysis of the impact of United States 
        development assistance during the preceding three 
        fiscal years on development in that country, with a 
        discussion of the United States interests that were 
        served by the assistance. Such analysis shall be done 
        on a sector-by-sector basis to the extent possible and 
        shall identify any economic policy reforms which were 
        promoted by the assistance. Such analysis shall--
                  (A) include a description, quantified to the 
                extent practicable, of the specific objectives 
                the United States sought to achieve in 
                providing development assistance for that 
                country; and
                  (B) specify the extent to which those 
                objectives were not achieved, with an 
                explanation of why they were not achieved.
          (2) A description of the amount and nature of 
        development assistance provided by other donors during 
        the preceding three fiscal years, set forth by 
        development sector to the extent possible.
          (3) A discussion of the commitment of the host 
        government to addressing the country's needs in each 
        development sector, including a description of the 
        resources devoted by that government to each 
        development sector during the preceding three fiscal 
        years.
          (4) A description of the trends, both favorable and 
        unfavorable, in each development sector.
          (5) Statistical and other information necessary to 
        evaluate the impact and effectiveness of United States 
        development assistance on development in the country.
  (b) Listing of Most and Least Successful Assistance 
Programs.--Each report required by this section shall 
identify--
          (1) those five countries in which United States 
        development assistance has been most successful; and
          (2) those five countries in which United States 
        development assistance has been least successful.
For each country listed pursuant to paragraph (2), the report 
shall explain why the assistance was not more successful and 
shall specify what the United States has done as a result.
  (c) Report To Be a Separate Document.--Each report required 
by this section shall be submitted to the Congress as a 
separate document.
  (d) Definition.--As used in this section, the terms ``United 
States development assistance'' and ``development assistance'' 
means assistance under this chapter.
          * * * * * * *
                       Chapter 2--Other Programs
          * * * * * * *
        TITLE I--MULTILATERAL AND REGIONAL DEVELOPMENT PROGRAMS 

          * * * * * * *
  Sec. 222. Authorization.--(a) To carry out the policy of 
section 221, the President is authorized to issue guaranties to 
eligible investors (as defined in section 238(c)) assuring 
against losses incurred in connection with loans made for 
projects meeting the criteria set forth in section 221. The 
total principal amount of guaranties issued under this title or 
heretofore issued under prior housing guaranty authorities, 
which are outstanding at any one time, shall not exceed 
$2,558,000,000. [The authority of this section shall continue 
through September 30, 1992.] No guaranties may be issued under 
this section on or after the date of the enactment of the 
Foreign Aid Reduction Act of 1995. The President may issue 
regulations from time to time with regard to the terms and 
conditions upon which such guaranties shall be issued and the 
eligibility of lenders.
          * * * * * * *
  [(k)] (d) The total principal amount of guaranties issued 
under this section for each of the fiscal years 1986 and 1987 
shall be comparable to the total principal amount of such 
guaranties issued for fiscal year 1984, subject to the dollar 
limitations on the issuance of guaranties under this section 
which are contained in subsection (a) and in appropriation 
Acts.
  (e) The President shall cancel all guaranties issued under 
this section with respect to which eligible investors have not 
(before the date of the enactment of the Foreign Aid Reduction 
Act of 1995) applied such guaranties to loans for projects 
under this title.
          * * * * * * *
                       [Chapter 5--Contingencies

  [Sec. 451. Contingencies.--(a)(1) Notwithstanding any other 
provision of law, the President is authorized to use funds made 
available to carry out any provision of this Act (other than 
the provisions of chapter 1 of this part) in order to provide, 
for any unanticipated contingencies, assistance authorized by 
this part in accordance with the provisions applicable to the 
furnishing of such assistance, except that the authority of 
this subsection may not be used to authorize the use of more 
than $25,000,000 during any fiscal year.
  [(2) The President shall report promptly to the Speaker of 
the House of Representatives and to the Committee on Foreign 
Relations and the Committee on Appropriations of the Senate 
each time he exercises the authority contained in this 
subsection.
  [(c) No part of this fund shall be used to pay for any gifts 
to any officials of any foreign government made heretofore or 
hereafter.]
          * * * * * * *

               Chapter 8--International Narcotics Control

          * * * * * * *

SEC. 481. POLICY, GENERAL AUTHORITIES, COORDINATION, FOREIGN POLICE 
                    ACTIONS, DEFINITIONS, AND OTHER PROVISIONS.

  (a) Policy and General Authorities.--
          (1) Statements of policy.--(A)  * * *
          * * * * * * *
          (D) International criminal activities, particularly 
        international narcotics trafficking, money laundering, 
        and corruption, endanger political and economic 
        stability and democratic development, and assistance 
        for the prevention and suppression of international 
        criminal activities should be a priority for the United 
        States.
          [(D)] (E) The international community should provide 
        assistance, where appropriate, to those producer and 
        transit countries which require assistance in 
        discharging these primary obligations.
          [(E)] (F) The objective of the United States in 
        dealing with the problem of international money 
        laundering is to ensure that countries adopt 
        comprehensive domestic measures against money 
        laundering and cooperate with each other in narcotics 
        money laundering investigations, prosecutions, and 
        related forfeiture actions.
          [(F)] (G) Effective international cooperation is 
        necessary to control the illicit cultivation, 
        production, and smuggling of, trafficking in, and abuse 
        of narcotic and psychotropic drugs.
          * * * * * * *
  (4) Notwithstanding any other provision of law, the President 
is authorized to furnish assistance to any country or 
international organization, or such terms and conditions as he 
may determine, for the control of narcotic and psychotropic 
drugs and other controlled substances, or for other related 
anticrime purposes.
          * * * * * * *
  Sec. 482. Authorization.--(a)  * * *
          * * * * * * *
  (c) [Contribution by Recipient Country.--To] Contributions 
and Reimbursement.--(1) To ensure local commitment to the 
activities assisted under this chapter, a country receiving 
assistance under this chapter should bear an appropriate share 
of the costs of any narcotics control program, project, or 
activity for which such assistance is to be provided. A country 
may bear such costs on an ``in kind'' basis.
  (2)(A) The President is authorized to accept contributions 
from other foreign governments to carry out the purposes of 
this chapter. Such contributions shall be deposited as an 
offsetting collection to the applicable appropriation account 
and may be used under the same terms and conditions as funds 
appropriated pursuant to this chapter.
  (B) At the time of submission of the annual congressional 
presentation documents required by section 634(a),the President 
shall provide a detailed report on any contributions received in the 
preceding fiscal year, the amount of such contributions, and the 
purposes for which such contributions were used.
  (3) The President is authorized to provide assistance under 
this chapter on a reimbursable basis. Such reimbursements shall 
be deposited as an offsetting collection to the applicable 
appropriation and may be used under the same terms and 
conditions as funds appropriated pursuant to this chapter.
          * * * * * * *
  (f) Treatment of Funds.--Funds transferred to and 
consolidated with funds appropriated pursuant to this chapter 
may be made available on such terms and conditions as are 
applicable to funds appropriated pursuant to this chapter. 
Funds so transferred or consolidated shall be apportioned 
directly to the bureau within the Department of State 
responsible for administering this chapter.
  (g) Excess Property.--For purposes of this chapter, the 
Secretary of State may use the authority of section 608, 
without regard to the restrictions of such section, to receive 
nonlethal excess property from any agency of the United States 
Government for the purpose of providing such property to a 
foreign government under the same terms and conditions as funds 
authorized to be appropriated for the purposes of this chapter.
          * * * * * * *

SEC. 489. REPORTING REQUIREMENTS [FOR FISCAL YEAR 1995].

  [(a) International Narcotics Control Strategy Report.--] Not 
later than March 1 of each year, the President shall transmit 
to the Speaker of the House of Representatives, and to the 
Committee on Foreign Relations of the Senate, a report 
containing the following:
          (1)  * * *
          * * * * * * *
  [(b) Annual Reports on Assistance.--
          [(1) In general.--At the time that the report 
        required by subsection (a) is submitted each year, the 
        Secretary of State, in consultation with appropriate 
        United States Government agencies, shall report to the 
        appropriate committees of the Congress on the 
        assistance provided or proposed to be provided by the 
        United States Government during the preceding fiscal 
        year, the current fiscal year, and the next fiscal year 
        to support international efforts to combat illicit 
        narcotics production or trafficking.
          [(2) Information to be included.--Each report 
        pursuant to this subsection shall--
                  [(A) specify the amount and nature of the 
                assistance provided or to be provided;
                  [(B) include, for each country identified in 
                subsection (a)(3)(A), information from the Drug 
                Enforcement Administration, the Customs 
                Service, and the Coast Guard describing in 
                detail--
                          [(i) the assistance provided or to be 
                        provided to such country by that 
                        agency, and
                          [(ii) the assistance provided or to 
                        be provided to that agency by such 
                        country,
                with respect to narcotic control efforts during 
                the preceding fiscal year, the current fiscal 
                year, and the next fiscal year; and
                  [(C) list all transfers, which were made by 
                the United States Government during the 
                preceding fiscal year, to a foreign country for 
                narcotics control purposes of any property 
                seized by or otherwise forfeited to the United 
                States Government in connection with narcotics-
                related activity, including an estimate of the 
                fair market value and physical condition of 
                each item of property transferred.
  [(c) Effective Date of Sections.--This section applies only 
during fiscal year 1995. Section 489A does not apply during 
that fiscal year.

[SEC. 489A. REPORTING REQUIREMENTS APPLICABLE AFTER SEPTEMBER 30, 1995.

  [(a) International Narcotics Control Strategy Report.--
          [(1) Requirement for report.--Not later than March 1 
        of each year, the President shall transmit to the 
        Speaker of the House of Representatives, and to the 
        Committee on Foreign Relations of the Senate, a report 
        on United States policy to establish and encourage an 
        international strategy to prevent the illicit 
        cultivation and manufacture of and traffic in narcotic 
        and psychotropic drugs and other controlled substances.
          [(2) Contents.--Each report pursuant to this 
        subsection shall include the following:
                  [(A) A description of the policies adopted, 
                agreements concluded, and programs implemented 
                by the Department of State in pursuit of its 
                delegated responsibilities for international 
                narcotics control, including policy 
                development, bilateral and multilateral funding 
                and other support for international narcotics 
                control projects, representations of the United 
                States Government to international 
                organizations and agencies concerned with 
                narcotics control, training of foreign 
                enforcement personnel, coordination of the 
                international narcotics control activities of 
                United States Government agencies, and 
                technical assistance to international demand 
                reduction programs.
                  [(B) A description of the activities of the 
                United States in international financial 
                institutions to combat the entry of narcotic 
                and psychotropic drugs and other controlled 
                substances into the United States for the 
                fiscal year just ended, for the current fiscal 
                year, and for the next fiscal year.
                  [(C) The identity of those countries which 
                are the significant direct or indirect sources 
                of narcotic and psychotropic drugs and other 
                controlled substances significantly affecting 
                the United States. For each such country, each 
                report shall include the following:
                          [(i) A detailed status report, with 
                        such information as can be reliably 
                        obtained, on the narcotic or 
                        psychotropic drugs or other controlled 
                        substances which are being cultivated, 
                        produced, or processed in or 
                        transported through such country, 
                        noting significant changes in 
                        conditions, such as increases or 
                        decreases in the illicit cultivation 
                        and manufacture of and traffic in such 
                        drugs and substances.
                          [(ii) A description of the assistance 
                        under this chapter and the other kinds 
                        of United States assistance which such 
                        country received in the preceding 
                        fiscal year, which are planned for such 
                        country for the current fiscal year, 
                        and which are proposed for such country 
                        for the next fiscal year, with an 
                        analysis of the impact that the 
                        furnishing of each such kind of 
                        assistance has had or is expected to 
                        have on the illicit cultivation and 
                        manufacture of and traffic in narcotic 
                        and psychotropic drugs and other 
                        controlled substances in such country.
                          [(iii) A description of the plans, 
                        programs, and timetables adopted by 
                        such country for the progressive 
                        elimination of the illicit cultivation 
                        of narcotic and psychotropic drugs and 
                        other controlled substances, and a 
                        discussion of the adequacy of the legal 
                        and law enforcement measures taken and 
                        the accomplishments achieved in accord 
                        with these plans.
                          [(iv) A discussion of the extent to 
                        which such country has cooperated with 
                        United States narcotics control efforts 
                        through the extradition or prosecution 
                        of drug traffickers, and, where 
                        appropriate, a description of the 
                        status of negotiations with such 
                        country to negotiate a new or updated 
                        extradition treaty relating to 
                        narcotics offenses.
                  [(D) For each major illicit drug producing 
                country for which the President is proposing to 
                furnish United States assistance for the next 
                fiscal year, a determination by the President 
                of the maximum reductions in illicit drug 
                production which are achievable during the next 
                fiscal year. Each such determination shall be 
                expressed in numerical terms, such as the 
                number of acres of illicitly cultivated 
                controlled substances which can be eradicated.
                  [(E) For each major illicit drug producing 
                country which received United States assistance 
                for the preceding fiscal year, the actual 
                reductions in illicit drug production achieved 
                by that country during such fiscal year.
                  [(F) Specific comments and recommendations by 
                appropriate Federal agencies involved in drug 
                enforcement, including the United States 
                Customs Service and the Drug Enforcement 
                Administration, with respect to the degree to 
                which countries listed in the report have, 
                during the preceding year, cooperated fully 
                with such agencies (as described in section 
                490A(b)).
                  [(G) A description of the United States 
                assistance for the preceding fiscal year which 
                was denied, pursuant to section 490 or 490A, to 
                each major illicit drug producing country and 
                each major drug-transit country.
  [(b) Midyear Report.--Not later than September 1 of each 
year, the President shall transmit to the Speaker of the House 
of Representatives, and to the Committee on Foreign Relations 
of the Senate, a complete and detailed midyear report on the 
activities and operations carried out under this chapter prior 
to such date. Such midyear report shall include the status of 
each agreement concluded prior to such date with other 
countries to carry out this chapter.
  [(c) Annual Reports on Assistance.--
          [(1) In general.--At the time that the report 
        required by subsection (a) is submitted each year, the 
        Secretary of State, in consultation with appropriate 
        United States Government agencies, shall report to the 
        appropriate committees of the Congress on the 
        assistance provided by the United States Government 
        during the preceding fiscal year to support 
        international efforts to combat illicit narcotics 
        production or trafficking.
          [(2) Information to be included.--Each report 
        pursuant to this subsection shall--
                  [(A) specify the amount and nature of the 
                assistance provided;
                  [(B) include, for each country which is a 
                significant direct or indirect source of 
                narcotic and psychotropic drugs and other 
                controlled substances significantly affecting 
                the United States, a section prepared by the 
                Drug Enforcement Administration, a section 
                prepared by the Customs Service, and a section 
                prepared by the Coast Guard, which describes in 
                detail--
                          [(i) the assistance provided or to be 
                        provided (as the case may be) to such 
                        country by that agency, and
                          [(ii) the assistance provided or to 
                        be provided (as the case may be) to 
                        that agency by such country,
                with respect to narcotic control efforts during 
                the preceding fiscal year, the current fiscal 
                year, and the next fiscal year; and
                  [(C) list all transfers, which were made by 
                the United States Government during the 
                preceding fiscal year, to a foreign country for 
                narcotics control purposes of any property 
                seized by or otherwise forfeited to the United 
                States Government in connection with narcotics-
                related activity, including an estimate of the 
                fair market value and physical condition of 
                each item of property transferred.]

SEC. 490. ANNUAL CERTIFICATION PROCEDURES [FOR FISCAL YEAR 1995].

  (a)  * * *
          * * * * * * *
  [(i) Effective Date of Sections.--This section applies only 
during fiscal year 1995. Section 490A does not apply during 
that fiscal year.

[SEC. 490A. ANNUAL CERTIFICATION PROCEDURES AFTER SEPTEMBER 30, 1995.

  [(a) Withholding of Bilateral Assistance and Opposition to 
Multilateral Development Assistance.--
          [(1) Bilateral assistance.--Fifty percent of the 
        United States assistance allocated each fiscal year in 
        the report required by section 653 for each major 
        illicit drug producing country or major drug-transit 
        country shall be withheld from obligation and 
        expenditure, except as provided in subsection (b).
          [(2) Multilateral assistance.--The Secretary of the 
        Treasury shall instruct the United States Executive 
        Director of each multilateral development bank to vote, 
        on and after March 1 of each year, against any loan or 
        other utilization of the funds of their respective 
        institution to or for any major illicit drug producing 
        country or major drug-transit country, except as 
        provided in subsection (b). For purposes of this 
        paragraph, the term ``multilateral development bank'' 
        means the International Bank for Reconstruction and 
        Development, the International Development Association, 
        the Inter-American Development Bank, the Asian 
        Development Bank, the African Development Bank, and the 
        European Bank for Reconstruction and Development.
  [(b) Certification Procedure.--
          [(1) What must be certified.--Subject to subsection 
        (d), the assistance withheld from a country pursuant to 
        subsection (a)(1) may be obligated and expended, and 
        the requirement of subsection (a)(2) to vote against 
        multilateral development bank assistance to a country 
        shall not apply, if the President determines and 
        certifies to the Congress, at the time of the 
        submission of the report required by section 489A(a), 
        that--
                  [(A) during the previous year the country has 
                cooperated fully with the United States, or has 
                taken adequate steps on its own--
                          [(i) in satisfying the goals agreed 
                        to in an applicable bilateral narcotics 
                        agreement with the United States (as 
                        described in paragraph (2)) or a 
                        multilateral agreement which achieves 
                        the objectives of paragraph (2),
                          [(ii) in preventing narcotic and 
                        psychotropic drugs and other controlled 
                        substances produced or processed, in 
                        whole or in part, in such country or 
                        transported through such country, from 
                        being sold illegally within the 
                        jurisdiction of such country to United 
                        States Government personnel or their 
                        dependents or from being transported, 
                        directly or indirectly, into the United 
                        States,
                          [(iii) in preventing and punishing 
                        the laundering in that country of drug-
                        related profits or drug-related moneys, 
                        and
                          [(iv) in preventing and punishing 
                        bribery and other forms of public 
                        corruption which facilitate the 
                        production, processing, or shipment of 
                        narcotic and psychotropic drugs and 
                        other controlled substances, or which 
                        discourage the investigation and 
                        prosecution of such acts; or
                  [(B) for a country that would not otherwise 
                qualify for certification under subparagraph 
                (A), the vital national interests of the United 
                States require that the assistance withheld 
                pursuant to subsection (a)(1) be provided and 
                that the United States not vote against 
                multilateral development bank assistance for 
                that country pursuant to subsection (a)(2).
          [(2) Bilateral narcotics agreement.--A bilateral 
        narcotics agreement referred to in paragraph (1)(A)(i) 
        is an agreement between the United States and a foreign 
        country in which the foreign country agrees to take 
        specific activities, including, where applicable, 
        efforts to--
                  [(A) reduce drug production, drug 
                consumption, and drug trafficking within its 
                territory, including activities to address 
                illicit crop eradication and crop substitution;
                  [(B) increase drug interdiction and 
                enforcement;
                  [(C) increase drug treatment;
                  [(D) increase the identification of and 
                elimination of illicit drug laboratories;
                  [(E) increase the identification of, and 
                elimination of trafficking in, essential 
                precursor chemicals for use in the illicit 
                production of narcotic and psychotropic drugs 
                and other controlled substances;
                  [(F) increase cooperation with United States 
                drug enforcement officials; and
                  [(G) where applicable, increase participation 
                in extradition treaties, mutual legal 
                assistance provisions directed at money 
                laundering, sharing of evidence, and other 
                initiatives for cooperative drug enforcement.
          [(3) Requirement for narcotics agreement for certain 
        countries.--A country which in the previous year was 
        designated as a major illicit drug producing country or 
        a major drug-transit country may not be determined to 
        be cooperating fully under paragraph (1)(A) unless it 
        has in place a bilateral narcotics agreement with the 
        United States or a multilateral agreement which 
        achieves the objectives of paragraph (2).
          [(4) Information to be included in certification.--If 
        the President makes a certification with respect to a 
        country pursuant to paragraph (1)(B), the President 
        shall include in such certification--
                  [(A) a full and complete description of the 
                vital national interests placed at risk if 
                United States bilateral assistance to that 
                country is terminated pursuant to this section 
                and multilateral development bank assistance is 
                not provided to such country; and
                  [(B) a statement weighing the risk described 
                in subparagraph (A) against the risks posed to 
                the vital national interests of the United 
                States by the failure of such country to 
                cooperate fully with the United States in 
                combating narcotics or to take adequate steps 
                to combat narcotics on its own.
          [(5) Licit opium producing countries.--The President 
        may make a certification under paragraph (1)(A) with 
        respect to a major illicit drug producing country, or 
        major drug-transit country, that is a producer of licit 
        opium only if the President determines that such 
        country has taken adequate steps to prevent significant 
        diversion of its licit cultivation and production into 
        the illicit market, maintains production and stockpiles 
        at levels no higher than those consistent with licit 
        market demand, and prevents illicit cultivation and 
        production.
  [(c) Matters To Be Considered.--In determining whether to 
make the certification required by subsection (b) with respect 
to a country, the President shall consider the following:
          [(1) Have the actions of the government of that 
        country resulted in the maximum reductions in illicit 
        drug production which were determined to be achievable 
        pursuant to section 489A(a)(2)(D)? In the case of a 
        major illicit drug producing country, the President 
        shall give foremost consideration, in determining 
        whether to make the determination required by 
        subsection (b)(1)(A), to whether the government of that 
        country has taken actions which have resulted in such 
        reductions.
          [(2) Has that government taken the legal and law 
        enforcement measures to enforce in its territory, to 
        the maximum extent possible, the elimination of illicit 
        cultivation and the suppression of illicit 
        manufacturing of and trafficking in narcotic and 
        psychotropic drugs and other controlled substances, as 
        evidenced by seizures of such drugs and substances and 
        of illicit laboratories and the arrest and prosecution 
        of violators involved in the traffic in such drugs and 
        substances significantly affecting the United States?
          [(3) Has that government taken the legal and law 
        enforcement steps necessary to eliminate, to the 
        maximum extent possible, the laundering in that country 
        of drug-related profits or drug-related moneys, as 
        evidenced by--
                  [(A) the enactment and enforcement by that 
                government of laws prohibiting such conduct;
                  [(B) that government entering into, and 
                cooperating under the terms of, mutual legal 
                assistance agreements with the United States 
                governing (but not limited to) money 
                laundering; and
                  [(C) the degree to which that government 
                otherwise cooperates with United States law 
                enforcement authorities on anti-money 
                laundering efforts?
          [(4) Has that government taken the legal and law 
        enforcement steps necessary to eliminate, to the 
        maximum extent possible, bribery and other forms of 
        public corruption which facilitate the illicit 
        production, processing, or shipment of narcotic and 
        psychotropic drugs and other controlled substances, or 
        which discourage the investigation and prosecution of 
        such acts, as evidenced by the enactment and 
        enforcement of laws prohibiting such conduct?
          [(5) Has that government, as a matter of government 
        policy or practice, encouraged or facilitated the 
        illicit production or distribution of narcotic and 
        psychotropic drugs and other controlled substances?
          [(6) Does any senior official of that government 
        engage in, encourage, or facilitate the illicit 
        production or distribution of narcotic and psychotropic 
        drugs and other controlled substances?
          [(7) Has that government investigated aggressively 
        all cases in which any member of an agency of the 
        United States Government engaged in drug enforcement 
        activities has been the victim, since January 1, 1985, 
        of acts or threats of violence, inflicted by or with 
        the complicity of any law enforcement or other officer 
        of such country or any political subdivision thereof, 
        and energetically sought to bring the perpetrators of 
        such offense or offenses to justice?
          [(8) Having been requested to do so by the United 
        States Government, does that government fail to provide 
        reasonable cooperation to lawful activities of United 
        States drug enforcement agents, including the refusal 
        of permission to such agents engaged in interdiction of 
        aerial smuggling into the United States to pursue 
        suspected aerial smugglers a reasonable distance into 
        the airspace of the requested country?
          [(9) Has that government made necessary changes in 
        legal codes in order to enable law enforcement 
        officials to move more effectively against narcotics 
        traffickers, such as new conspiracy laws and new asset 
        seizure laws?
          [(10) Has that government expeditiously processed 
        United States extradition requests relating to 
        narcotics trafficking?
          [(11) Has that government refused to protect or give 
        haven to any known drug traffickers, and has it 
        expeditiously processed extradition requests relating 
        to narcotics trafficking made by other countries?
  [(d) Congressional Review.--Subsection (e) shall apply if, 
within 45 days of continuous session (within the meaning of 
section 601(b)(1) of the International Security Assistance and 
Arms Export Control Act of 1976) after receipt of a 
certification under subsection (b), the Congress enacts a joint 
resolution disapproving the determination of the President 
contained in such certification.
  [(e) Denial of Assistance for Countries Decertified.--If the 
President does not make a certification under subsection (b) 
with respect to a country or the Congress enacts a joint 
resolution disapproving such certification, then until such 
time as the conditions specified in subsection (f)(1) are 
satisfied--
          [(1) funds may not be obligated for United States 
        assistance for that country, and funds previously 
        obligated for United States assistance for that country 
        may not be expended for the purpose of providing 
        assistance for that country; and
          [(2) the requirement to vote against multilateral 
        development bank assistance pursuant to subsection 
        (a)(2) shall apply with respect to that country, 
        without regard to the date specified in that 
        subsection.
  [(f) Recertification.--
          [(1) Time of recertification; congressional action.--
        Subsection (e) shall apply to a country described in 
        that subsection until--
                  [(A) the President makes a certification 
                under subsection (b) with respect to that 
                country, and the Congress does not enact a 
                joint resolution under subsection (d) 
                disapproving the determination of the President 
                contained in that certification; or
                  [(B) the President submits, at any other 
                time, a certification described in subparagraph 
                (A) or (B) of subsection (b)(1) with respect to 
                such country, and the Congress enacts a joint 
                resolution approving the determination of the 
                President contained in that certification.
          [(2) Congressional review procedures.--(A) Any joint 
        resolution under this section shall be considered in 
        the Senate in accordance with the provisions of section 
        601(b) of the International Security Assistance and 
        Arms Export Control Act of 1976.
          [(B) For the purpose of expediting the consideration 
        and enactment of joint resolutions under this section, 
        a motion to proceed to the consideration of any such 
        joint resolution after it has been reported by the 
        appropriate committee shall be treated as highly 
        privileged in the House of Representatives.
  [(g) Determining Major Drug-Transit and Major Illicit Drug 
Producing Countries After September 30, 1995.--
          [(1) Establishment of guidelines.--For each calendar 
        year, the Secretary of State, after consultation with 
        the appropriate committees of the Congress, shall 
        establish numerical standards and other guidelines for 
        determining which countries will be considered to be 
        major drug-transit countries under subparagraphs (A) 
        and (B) of section 481(e)(5).
          [(2) Notice to congress of preliminary standards.--
        Not later than September 1 of each year, the Secretary 
        of State shall make a preliminary determination of the 
        numerical standards and other guidelines to be used 
        pursuant to paragraph (1) with respect to that year and 
        shall notify the appropriate committees of the Congress 
        of those standards and guidelines.
          [(3) Notice to congress of preliminary 
        determinations.--Not later than October 1 of each year, 
        the Secretary of State shall notify the appropriate 
        committees of the Congress of--
                  [(A) which countries have been determined to 
                be major drug-transit countries for that year 
                under the numerical standards and other 
                guidelines developed pursuant to this 
                subsection; and
                  [(B) which countries have been determined to 
                be major illicit drug producing countries for 
                that year.]

              Chapter 9--International Disaster Assistance

  Sec. 491. Policy and General Authority.--(a)  * * *
  (b) Subject to the limitations in section 492, and 
notwithstanding any other provision of this or any other Act, 
the President is authorized to furnish assistance to any 
foreign country, international organization, or private 
voluntary organization, on such terms and conditions as he may 
determine, for international disaster relief [and 
rehabilitation], rehabilitation, and reconstruction, including 
assistance relating to disaster preparedness, and to the 
prediction of, and contingency planning for, natural disasters 
abroad.
  (c) In carrying out the provisions of this section the 
President shall insure that the assistance provided by the 
United States shall, to the greatest extent possible, reach 
those most in need of relief [and rehabilitation], 
rehabilitation, and reconstruction as a result of natural and 
manmade disasters.
  Sec. 492. Authorization.--[(a) There are authorized to be 
appropriated to the President to carry out section 491, 
$25,000,000 for the fiscal year 1986 and $25,000,000 for the 
fiscal year 1987. Amounts appropriated under this section are 
authorized to remain available until expended.] (a) There are 
authorized to be appropriated to the President to carry out 
section 491, in addition to funds otherwise available for such 
purposes, $200,000,000 for each of the fiscal years 1996 and 
1997.
          * * * * * * *

Chapter 11--Support for the Economic and Democratic Development of the 
             Independent States of the Former Soviet Union

          * * * * * * *

SEC. 498A. CRITERIA FOR ASSISTANCE TO GOVERNMENTS OF THE INDEPENDENT 
                    STATES.

  (a)  * * *
  (b) Ineligibility for Assistance.--The President shall not 
provide assistance under this chapter--
          (1)  * * *
          * * * * * * *
          (4) for the government of any independent state that 
        is prohibited from receiving such assistance by section 
        669 or 670 of this Act or sections 306(a)(1) and 307 of 
        the Chemical and Biological Weapons Control and Warfare 
        Elimination Act of 1991; [or]
          (5) for the Government of Russia, unless the 
        President certifies to the Congress that such 
        Government--
                  (A) is pursuing, without preconditions, an 
                immediate and permanent ceasefire, and is 
                pursuing a negotiated settlement to the 
                conflict in the Russian Federation Republic of 
                Chechnya;
                  (B) is taking steps to provide unhindered 
                access to the region of Chechnya and 
                surrounding areas of the Russian Federation by 
                elected officials of the Russian Federation and 
                by independent Russian media;
                  (C) is cooperating with the Organization for 
                Security and Cooperation in Europe and other 
                appropriate international organizations in 
                undertaking steps to investigate and prosecute 
                any and all individuals, including members of 
                the Russian armed forces and internal security 
                agencies, who may be responsible for 
                atrocities, war crimes, or crimes against 
                humanity in the region of Chechnya;
                  (D) is cooperating with the Assistance Group 
                of the Organization on Security and Cooperation 
                in Europe established in Chechnya in fulfilling 
                that mission's mandate;
                  (E) is cooperating in assuring the unhindered 
                delivery of humanitarian assistance to the 
                civilian population in Chechnya;
                  (F) has made the fullest possible accounting 
                of all persons currently detained by Russian 
                military or security forces as a result of the 
                conflict in Chechnya and has allowed access to 
                those individuals by the International 
                Committee of the Red Cross;
                  (G) is taking steps to repatriate refugees 
                and displaced persons wishing to return to 
                Chechnya; and
                  (H) is taking steps to hold free and fair 
                elections in Chechnya, based on the principles 
                of the Organization on Security and Cooperation 
                in Europe and conducted in the presence of 
                foreign and domestic observers;
        except that this paragraph shall not apply to the 
        provision of such assistance for purposes of 
        humanitarian, disaster, and refugee relief or assisting 
        democratic political reform and rule of law activities, 
        provision of technical assistance for safety upgrade of 
        civilian nuclear power plants, and assisting in the 
        creation of private sector and nongovernmental 
        organizations that are independent of government 
        ownership and control;
          (6) for the government of any independent state that 
        has agreed to provide nuclear reactor components to 
        Iran, unless the President determines that the sale of 
        such components to Iran includes safeguards that are 
        consistent with the national security objectives of the 
        United States and the concerns of the United States 
        with respect to nonproliferation of nuclear weapons 
        technology, except that this paragraph shall not apply 
        to the provision of such of assistance for purposes 
        of--
                  (A) humanitarian, disaster, and refugee 
                relief; or
                  (B) assisting democratic political reform, 
                rule of law activities, and the creation of 
                private sector and nongovernmental 
                organizations that are independent of 
                government ownership and control;
          (7) for the government of any independent state that 
        the President determines directs any action in 
        violation of the territorial integrity or national 
        sovereignty of any other new independent state, except 
        that this paragraph shall not apply to the provision of 
        such assistance for purposes of--
                  (A) humanitarian, disaster, and refugee 
                relief; or
                  (B) assisting democratic political reform, 
                rule of law activities, and the creation of 
                private sector and nongovernmental 
                organizations that are independent of 
                government ownership and control;
          (8) for the purpose of enhancing the military 
        capability of any independent state, except that this 
        paragraph shall not apply to demilitarization, defense 
        conversion or nonproliferation programs, or programs to 
        support troop withdrawal including through the support 
        of an officer resettlement program, and technical 
        assistance for the housing sector;
          (9) for the Government of Russia if the President 
        determines that Government--
                  (A) is not making progress in implementing 
                comprehensive economic reforms based on market 
                principles, including fostering private 
                ownership, the repayment of commercial debt, 
                the respect of commercial contracts, the 
                equitable treatment of foreign private 
                investment; or
                  (B) applies or transfers assistance provided 
                under this chapter to any entity for the 
                purpose of expropriating or seizing ownership 
                or control of assets, investments, or ventures; 
                or
          [(5)] (10) for the Government of Russia if it has 
        failed to make significant progress on the removal of 
        Russian or Commonwealth of Independent States troops 
        from Estonia, Latvia, and Lithuania or if it has failed 
        to undertake good faith efforts, such as negotiations, 
        to end other military practices that violate the 
        sovereignty of the Baltic states.
          * * * * * * *
SEC. 498B. AUTHORITIES RELATING TO ASSISTANCE AND OTHER PROVISIONS.

  [(a) Assistance Through Governments and Nongovernmental 
Organizations.--Assistance under this chapter may be provided 
to governments or through nongovernmental organizations.]
  (a) Assistance Through the Private Sector.--Assistance under 
this chapter shall be provided, to the maximum extent feasible, 
through the private sector, including private and voluntary 
organizations and other nongovernmental organizations 
functioning in the independent states of the former Soviet 
Union.
          * * * * * * *
  (j) Waiver of Certain Provisions.--
          (1) In general.--Funds authorized to be appropriated 
        [for fiscal year 1993 by this chapter] to carry out 
        this chapter, and any other funds [appropriated for 
        fiscal year 1993] that are used under the authority of 
        subsection (f) or (g), may be used to provide 
        assistance under this chapter notwithstanding any other 
        provision of law, except for--
                  (A) this chapter;
          * * * * * * *
    CHAPTER 12--DEVELOPMENT FUND FOR LATIN AMERICA AND THE CARIBBEAN

SEC. 499. STATEMENT OF POLICY.

  The Congress declares the following:
          (1) The historic, economic, political, and geographic 
        relationships among the countries of the Western 
        Hemisphere are unique and of continuing special 
        significance.
          (2) Following the historic Summit of the Americas and 
        the passage of the North American Free Trade Agreement, 
        the countries of the Western Hemisphere have moved 
        steadfastly toward economic and political integration.
          (3) The interests of the countries of the Western 
        Hemisphere are more interrelated than ever, and sound 
        economic, social, and democratic progress in each of 
        the countries continues to be of importance to all 
        countries, and lack of it in any country may have 
        serious repercussions in others.
          (4) For the peoples of Latin America and the 
        Caribbean to progress within the framework of social 
        justice, respect for human rights, political democracy, 
        and market-oriented economies, there is a compelling 
        need for the achievement of social and economic 
        advancement and the consolidation of political 
        democracy and the rule of law adequate to meet the 
        legitimate aspirations of the individual citizens of 
        the countries of Latin America and the Caribbean for a 
        better way of life.
          (5) The prosperity, security, and well-being of the 
        United States is linked directly to peace, prosperity, 
        and democracy in Latin America and the Caribbean.
          (6) Democratic values are dominant throughout Latin 
        America and the Caribbean region and nearly all 
        governments in such region have come to power through 
        democratic elections.
          (7) Nonetheless, existing democratic governments and 
        their supporting institutions remain fragile and face 
        critical challenges, including, in particular, the 
        consolidation of civilian control of such governments 
        and institutions, including control of the military, 
        the consolidation or establishment of independent 
        judicial institutions and of the rule of law, and where 
        appropriate, the decentralization of government.
          (8) In adherence to free market principles, it is 
        essential to promote economic growth with equity--
        enlarging employment and decisionmaking opportunities 
        and the provision of basic social services for 
        traditionally marginalized groups, such as indigenous 
        minorities, women, and the poor--and to protect and 
        promote workers rights.
          (9) By supporting the purposes and objectives of 
        sustainable development and applying such purposes and 
        objectives to Latin America and the Caribbean, the 
        Development Fund for Latin America and the Caribbean 
        can advance the national interests of the United States 
        and can directly improve the lives of the poor, 
        encourage broad-based economic growth while protecting 
        the environment, build human capital and knowledge, 
        support participation in democracy, and promote peace 
        and justice in Latin America and the Caribbean.

SEC. 499A. AUTHORIZATION OF ASSISTANCE.

  (a) In General.--The President is authorized to provide 
assistance for Latin America and the Caribbean to promote 
democracy, sustainable development, and economic growth in 
Latin America and the Caribbean.
  (b) Terms and Conditions.--Assistance under this chapter 
shall be provided on such terms and conditions as the President 
may determine.

SEC. 499B. AVAILABILITY OF AMOUNTS.

  (a) In General.--Of the amounts made available to carry out 
the provisions of law described in subsection (b) for fiscal 
year 1996 and for each succeeding fiscal year, not less than an 
amount requested by the President and approved by the Congress 
in appropriations Acts shall be made available to carry out 
this chapter.
  (b) Provisions of Law.--The provisions of law described in 
this subsection are the following:
          (1) Sections 103 through 106 of this Act (relating to 
        the development assistance fund).
          (2) Chapter 8 of this part (relating to international 
        narcotics control).
          (3) Chapter 4 of part II of this Act (relating to the 
        economic support fund).
          (4) Chapter 5 of part II of this Act (relating to 
        international military education and training).
          (5) Titles II and III of the Agricultural Trade 
        Development and Assistance Act of 1954.
          (6) The ``Foreign Military Financing Program'' under 
        section 23 of the Arms Export Control Act (22 U.S.C. 
        2763).
  (c) Availability.--Amounts made available under this section 
are authorized to remain available until expended.
                                PART II

                           Chapter 1--Policy

          * * * * * * *
  [Sec. 502A. Excess Defense Articles.--Excess defense articles 
shall be provided whenever possible rather than providing such 
articles by the procurement of new items.]
  Sec. 502B. Human Rights.--(a)  * * *
  (b) The Secretary of State shall transmit to the Congress, as 
part of the presentation materials for security assistance 
programs proposed for each fiscal year, a full and complete 
report[, prepared with the assistance of the Assistant 
Secretary of State for Democracy, Human Rights, and Labor,] 
with respect to practices regarding the observance of and 
respect for internationally recognized human rights in each 
country proposed as a recipient of security assistance. 
Wherever applicable, such report shall include information on 
practices regarding coercion in population control, including 
coerced abortion and involuntary sterilization. Each report 
under this section shall list the votes of each member of the 
United Nations Commission on Human Rights on all country-
specific and thematic resolutions voted on at the Commission's 
annual session during the period covered during the preceding 
year. In determining whether a government falls within the 
provisions of subsection (a)(3) and in the preparation of any 
report or statement required under this section, consideration 
shall be given to--
          (1) the relevant findings of appropriate 
        international organizations, including nongovernmental 
        organizations, such as the International Committee of 
        the Red Cross; and
          (2) the extent of cooperation by such government in 
        permitting an unimpeded investigation by any such 
        organization of alleged violations of internationally 
        recognized human rights.
  (c)(1) Upon the request of the Senate or the House of 
Representatives by resolution of either such House, or upon the 
request of the Committee on Foreign Relations of the Senate or 
the Committee on Foreign Affairs of the House of 
Representatives, the Secretary of State shall, within thirty 
days after receipt of such request, transmit to both such 
committees a statement[, prepared with the assistance of the 
Assistant Secretary of State for Democracy, Human Rights, and 
Labor,] with respect to the country designated in such request, 
setting forth--
          (A) * * *
          * * * * * * *
  Sec. 505. Conditions of Eligibility.--(a) * * *
          * * * * * * *
  (g)(1) * * *
          * * * * * * *
  (4)(A) Upon the request of the Committee on Foreign Relations 
of the Senate or the Committee on Foreign Affairs of the House 
of Representatives, the President shall, within 60 days after 
receipt of such request, transmit to both such committees a 
statement[, prepared with the assistance of the Assistant 
Secretary of State for Democracy, Human Rights, and Labor,] 
with respect to the country designated in such request, setting 
forth--
          (ii) * * *
          * * * * * * *

                     Chapter 2--Military Assistance

          * * * * * * *
  Sec. 506. Special Authority.--(a)(1) If the President 
determines and reports to the Congress in accordance with 
section 652 of this Act that--
          (A) an unforeseen emergency exists which requires 
        immediate military assistance to a foreign country or 
        international organization; and
          (B) the emergency requirement cannot be met under the 
        authority of the Arms Export Control Act or any other 
        law except this section;
he may direct, for the purposes of this part, the drawdown of 
defense articles from the stocks of the Department of Defense, 
defense services of the Department of Defense, and military 
education and training, of an aggregate value of not to exceed 
[$75,000,000] $100,000,000 in any fiscal year.
          (2) (A) If the President determines and reports to 
        the Congress in accordance with section 652 of this Act 
        that it is in the national interest of the United 
        States to draw down [defense articles from the stocks 
        of the Department of Defense, defense services of the 
        Department of Defense, and military education and 
        training, he may direct--
                  [(i) the drawdown of such articles, services, 
                and the provision of such training for the 
                purposes and under the authorities of chapters 
                8 and 9 of part I, as the case may be; and
                  [(ii) the drawdown of defense services for 
                the purposes and under the authorities of the 
                Migration and Refugee Assistance Act of 1962.] 
                articles and services from the inventory and 
                resources of any agency of the United States 
                Government and military education and training 
                from the Department of Defense, the President 
                may direct the drawdown of such articles, 
                services, and military education and training--
                  (i) for the purposes and under the 
                authorities of--
                          (I) chapter 8 of part I (relating to 
                        international narcotics control 
                        assistance);
                          (II) chapter 9 of part I (relating to 
                        international disaster assistance); or
                          (III) the Migration and Refugee 
                        Assistance Act of 1962; or
                  (ii) for the purpose of providing such 
                articles, services, and military education and 
                training to Vietnam, Cambodia, and Laos as the 
                President determines are necessary--
                          (I) to support efforts to locate and 
                        repatriate members of the United States 
                        Armed Forces and civilians employed 
                        directly or indirectly by the United 
                        States Government who remain 
                        unaccounted for from the Vietnam War; 
                        and