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105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-401
_______________________________________________________________________


 
  MAKING APPROPRIATIONS FOR FOREIGN OPERATIONS, EXPORT FINANCING, AND 
RELATED PROGRAMS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1998, AND FOR 
                             OTHER PURPOSES

                                _______
                                

               November 12, 1997.--Ordered to be printed

_______________________________________________________________________


Mr. Callahan, from the Committee on Conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 2159]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
2159) ``making appropriations for foreign operations, export 
financing, and related programs for the fiscal year ending 
September 30, 1998, and for other purposes,'' having met, after 
full and free conference, have agreed to recommend and do 
recommend to their respective Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate, and agree to the same with an 
amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert:

That the following sums are appropriated, out of any money in 
the Treasury not otherwise appropriated, for the fiscal year 
ending September 30, 1998, and for other purposes, namely:

               TITLE I--EXPORT AND INVESTMENT ASSISTANCE


                export-import bank of the united states


    The Export-Import Bank of the United States is authorized 
to make such expenditures within the limits of funds and 
borrowing authority available to such corporation, and in 
accordance with law, and to make such contracts and commitments 
without regard to fiscal year limitations, as provided by 
section 104 of the Government Corporation Control Act, as may 
be necessary in carrying out the program for the current fiscal 
year for such corporation: Provided, That none of the funds 
available during the current fiscal year may be used to make 
expenditures, contracts, or commitments for the export of 
nuclear equipment, fuel, or technology to any country other 
than a nuclear-weapon State as defined in Article IX of the 
Treaty on the Non-Proliferation of Nuclear Weapons eligible to 
receive economic or military assistance under this Act that has 
detonated a nuclear explosive after the date of enactment of 
this Act.


                         subsidy appropriation


    For the cost of direct loans, loan guarantees, insurance, 
and tied-aid grants as authorized by section 10 of the Export-
Import Bank Act of 1945, as amended, $683,000,000 to remain 
available until September 30, 2001: Provided, That such costs, 
including the cost ofmodifying such loans, shall be as defined 
in section 502 of the Congressional Budget Act of 1974: Provided 
further, That such sums shall remain available until 2013 for the 
disbursement of direct loans, loan guarantees, insurance and tied-aid 
grants obligated in fiscal years 1998 and 1999: Provided further, That 
up to $50,000,000 of funds appropriated by this paragraph shall remain 
available until expended and may be used for tied-aid grant purposes: 
Provided further, That none of the funds appropriated by this Act or 
any prior Act appropriating funds for foreign operations, export 
financing, or related programs for tied-aid credits or grants may be 
used for any other purpose except through the regular notification 
procedures of the Committees on Appropriations: Provided further, That 
funds appropriated by this paragraph are made available notwithstanding 
section 2(b)(2) of the Export-Import Bank Act of 1945, in connection 
with the purchase or lease of any product by any East European country, 
any Baltic State, or any agency or national thereof.


                        administrative expenses


    For administrative expenses to carry out the direct and 
guaranteed loan and insurance programs (to be computed on an 
accrual basis), including hire of passenger motor vehicles and 
services as authorized by 5 U.S.C. 3109, and not to exceed 
$20,000 for official reception and representation expenses for 
members of the Board of Directors, $48,614,000: Provided, That 
necessary expenses (including special services performed on a 
contract or fee basis, but not including other personal 
services) in connection with the collection of moneys owed the 
Export-Import Bank, repossession or sale of pledged collateral 
or other assets acquired by the Export-Import Bank in 
satisfaction of moneys owed the Export-Import Bank, or the 
investigation or appraisal of any property, or the evaluation 
of the legal or technical aspects of any transaction for which 
an application for a loan, guarantee or insurance commitment 
has been made, shall be considered nonadministrative expenses 
for the purposes of this heading: Provided further, That, 
notwithstanding subsection (b) of section 117 of the Export 
Enhancement Act of 1992, subsection (a) thereof shall remain in 
effect until October 1, 1998.


                overseas private investment corporation


                           noncredit account


    The Overseas Private Investment Corporation is authorized 
to make, without regard to fiscal year limitations, as provided 
by 31 U.S.C. 9104, such expenditures and commitments within the 
limits of funds available to it and in accordance with law as 
may be necessary: Provided, That the amount available for 
administrative expenses to carry out the credit and insurance 
programs (including an amount for official reception and 
representation expenses which shall not exceed $35,000) shall 
not exceed$32,000,000: Provided further, That project-specific 
transaction costs, including direct and indirect costs incurred in 
claims settlements, and other direct costs associated with services 
provided to specific investors or potential investors pursuant to 
section 234 of the Foreign Assistance Act of 1961, shall not be 
considered administrative expenses for the purposes of this heading.


                            program account


    For the cost of direct and guaranteed loans, $60,000,000, 
as authorized by section 234 of the Foreign Assistance Act of 
1961 to be derived by transfer from the Overseas Private 
Investment Corporation noncredit account: Provided, That such 
costs, including the cost of modifying such loans, shall be as 
defined in section 502 of the Congressional Budget Act of 1974: 
Provided further, That such sums shall be available for direct 
loan obligations and loan guaranty commitments incurred or made 
during fiscal years 1998 and 1999: Provided further, That such 
sums shall remain available through fiscal year 2006 for the 
disbursement of direct and guaranteed loans obligated in fiscal 
year 1998, and through fiscal year 2007 for the disbursement of 
direct and guaranteed loans obligated in fiscal year 1999: 
Provided further, That in addition, such sums as may be 
necessary for administrative expenses to carry out the credit 
program may be derived from amounts available for 
administrative expenses to carry out the credit and insurance 
programs in the Overseas Private Investment Corporation 
Noncredit Account and merged with said account.

                  Funds Appropriated to the President


                      trade and development agency


    For necessary expenses to carry out the provisions of 
section 661 of the Foreign Assistance Act of 1961, $41,500,000, 
to remain available until September 30, 1999: Provided, That 
the Trade and Development Agency may receive reimbursements 
from corporations and other entities for the costs of grants 
for feasibility studies and other project planning services, to 
be deposited as an offsetting collection to this account and to 
be available for obligation until September 30, 1999, for 
necessary expenses under this paragraph: Provided further, That 
such reimbursements shall not cover, or be allocated against, 
direct or indirect administrative costs of the agency.

                TITLE II--BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

    For expenses necessary to enable the President to carry out 
the provisions of the Foreign Assistance Act of 1961, and for 
other purposes, to remain available until September 30, 1998, 
unless otherwise specified herein, as follows:


                  agency for international development


                child survival and disease programs fund


    For necessary expenses to carry out the provisions of 
chapters 1 and 10 of part I of the Foreign Assistance Act of 
1961, for child survival, basic education, assistance to combat 
tropical and other diseases, and related activities, in 
addition to funds otherwise available for such purposes, 
$650,000,000, to remain available until expended: Provided, 
That this amount shall be made available for such activities 
as: (1) immunization programs; (2) oral rehydration programs; 
(3) health and nutrition programs, and related education 
programs, which address the needs of mothers and children; (4) 
water and sanitation programs; (5) assistance for displaced and 
orphaned children; (6) programs for the prevention, treatment, 
and control of, and research on, tuberculosis, HIV/AIDS, polio, 
malaria and other diseases; (7) up to $98,000,000 for basic 
education programs for children; and (8) a contribution on a 
grant basis to the United Nations Children's Fund (UNICEF) 
pursuant to section 301 of the Foreign Assistance Act of 1961.


                  agency for international development


                         development assistance


                     (including transfer of funds)


    For necessary expenses to carry out the provisions of 
sections 103 through 106 and chapter 10 of part I of the 
Foreign Assistance Act of 1961, title V of the International 
Security and Development Cooperation Act of 1980 (Public Law 
96-533) and the provisions of section 401 of the Foreign 
Assistance Act of 1969, $1,210,000,000, to remain available 
until September 30, 1999: Provided, That of the amount 
appropriated under this heading, up to $22,000,000 may be made 
available for the Inter-American Foundation and shall be 
apportioned directly to that Agency: Provided further, That of 
the amount appropriated under this heading, up to $14,000,000 
may be made available for the African Development Foundation 
and shall be apportioned directly to that agency: Provided 
further, That none of the funds made available in this Act nor 
any unobligated balances from prior appropriations may be made 
available to any organization or program which, as determined 
by the President of the United States, supports or participates 
in the management of a program of coercive abortion or 
involuntary sterilization: Provided further, That none of the 
funds made available under this heading may be used to pay for 
the performance of abortion as a method of family planning or 
to motivate or coerce any person to practice abortions; and 
that in order to reduce reliance on abortion in developing 
nations, funds shall be available only to 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: Provided further, That in 
awarding grants for natural family planning under section 104 
of the Foreign Assistance Act of 1961 no applicant shall be 
discriminated against because of such applicant's religious or 
conscientious commitment to offer only natural family planning; 
and, additionally, all such applicants shall comply with the 
requirements of the previous proviso: Provided further, That 
for purposes of this or any other Act authorizing or 
appropriating funds for foreign operations, export financing, 
and related programs, the term ``motivate'', as it relates to 
family planning assistance, shall not be construed to prohibit 
the provision, consistent with local law, of information or 
counseling about all pregnancy options: Provided further, That 
nothing in this paragraph shall be construed to alter any 
existing statutory prohibitions against abortion under section 
104 of the Foreign Assistance Act of 1961: Provided further, 
That notwithstanding section 109 of the Foreign Assistance Act 
of 1961, of the funds appropriated under this heading in this 
Act, and of the unobligated balances of funds previously 
appropriated under this heading, not to exceed $2,500,000 shall 
be transferred to ``International Organizations and Programs'' 
for a contribution to the International Fund forAgricultural 
Development (IFAD), and that any such transfer of funds shall be 
subject to the regular notification procedures of the Committees on 
Appropriations: Provided further, That of the funds appropriated under 
this heading that are made available for assistance programs for 
displaced and orphaned children and victims of war, not to exceed 
$25,000, in addition to funds otherwise available for such purposes, 
may be used to monitor and provide oversight of such programs: Provided 
further, That none of the funds made available under this heading may 
be used for any activity which is in contravention to the Convention on 
International Trade in Endangered Species of Flora and Fauna (CITES).


                  private and voluntary organizations


    None of the funds appropriated or otherwise made available 
by this Act for development assistance may be made available to 
any United States private and voluntary organization, except 
any cooperative development organization, which obtains less 
than 20 per centum of its total annual funding for 
international activities from sources other than the United 
States Government: Provided, That the requirements of the 
provisions of section 123(g) of the Foreign Assistance Act of 
1961 and the provisions on private and voluntary organizations 
in title II of the ``Foreign Assistance and Related Programs 
Appropriations Act, 1985'' (as enacted in Public Law 98-473) 
shall be superseded by the provisions of this section, except 
that the authority contained in the last sentence of section 
123(g) may be exercised by the Administrator with regard to the 
requirements of this paragraph.
    Funds appropriated or otherwise made available under title 
II of this Act should be made available to private and 
voluntary organizations at a level which is at least equivalent 
to the level provided in fiscal year 1995. Such private and 
voluntary organizations shall include those which operate on a 
not-for-profit basis, receive contributions from private 
sources, receive voluntary support from the public and are 
deemed to be among the most cost-effective and successful 
providers of development assistance.


                                 cyprus


    Of the funds appropriated under the headings ``Development 
Assistance'' and ``Economic Support Fund'', not less than 
$15,000,000 shall be made available for Cyprus to be used only 
for scholarships, administrative support of the scholarship 
program, bicommunal projects, and measures aimed at 
reunification of the island and designed to reduce tensions and 
promote peace and cooperation between the two communities on 
Cyprus.


                                 burma


    Of the funds appropriated under the headings ``Development 
Assistance'' and ``Economic Support Fund'',not less than 
$5,000,000 shall be made available to support activities in Burma, 
along the Burma-Thailand border, and for activities of Burmese student 
groups and other organizations located outside Burma: Provided, That 
funds made available for Burma related activities under this heading 
may be made available notwithstanding any other provision of law: 
Provided further, That provision of such funds shall be made available 
subject to the regular notification procedures of the Committees on 
Appropriations.


                                cambodia


    None of the funds appropriated in this Act may be made 
available for the Government of Cambodia: Provided, That the 
restrictions under this heading shall not apply to 
humanitarian, demining or election-related programs or 
activities: Provided further, That such funds shall be subject 
to the regular notification procedures of the Committees on 
Appropriations: Provided further, That 30 days after enactment 
of this Act, the President shall report to the Committees on 
Appropriations on the results of the FBI investigation into the 
bombing attack in Phnom Penh on March 30, 1997.


                   international disaster assistance


    For necessary expenses for international disaster relief, 
rehabilitation, and reconstruction assistance pursuant to 
section 491 of the Foreign Assistance Act of 1961, as amended, 
$190,000,000, to remain available until expended.


                           debt restructuring


    For the cost, as defined in section 502 of the 
Congressional Budget Act of 1974, of modifying direct loans and 
loan guarantees, as the President may determine, for which 
funds have been appropriated or otherwise made available for 
programs within the International Affairs Budget Function 150, 
including the cost of selling, reducing, or canceling amounts, 
through debt buybacks and swaps, owed to the United States as a 
result of concessional loans made to eligible Latin American 
and Caribbean countries, pursuant to part IV of the Foreign 
Assistance Act of 1961; of modifying concessional loans 
extended to least developed countries, as authorized under 
section 411 of the Agricultural Trade Development and 
Assistance Act of 1954, as amended; and of modifying any 
obligation, or portion of such obligation for Latin American 
countries to pay for purchases of United States agricultural 
commodities guaranteed by the Commodity Credit Corporation 
under export credit guarantee programs authorized pursuant to 
section 5(f) of the Commodity Credit Corporation Charter Act of 
June 29, 1948, as amended, section 4(b) of the Food for Peace 
Act of 1966, as amended (Public Law 89-808), or section 202 of 
the Agricultural Trade Act of 1978, as amended (Public Law 95-
501); $27,000,000, to remain available until expended: 
Provided, That not to exceed $1,500,000 of such funds may be 
used for implementation of improvements in the foreign credit 
reporting system of the United States government.


         micro and small enterprise development program account


    For the cost of direct loans and loan guarantees, 
$1,500,000, as authorized by section 108 of the Foreign 
Assistance Act of 1961, as amended: Provided, That such costs 
shall be as defined in section 502 of the Congressional Budget 
Act of 1974: Provided further, That guarantees of loans made 
under this heading in support of microenterprise activities may 
guarantee up to 70 percent of the principal amount of any such 
loans notwithstanding section 108 of the Foreign Assistance Act 
of 1961. In addition, for administrative expenses to carry out 
programs under this heading, $500,000, all of which may be 
transferred to and merged with the appropriation for Operating 
Expenses of the Agency for International Development: Provided 
further, That funds made available under this heading shall 
remain available until September 30, 1999.


             urban and environmental credit program account


    For the cost, as defined in section 502 of the 
Congressional Budget Act of 1974, of guaranteed loans 
authorizedby sections 221 and 222 of the Foreign Assistance Act 
of 1961, including the cost of guaranteed loans designed to promote the 
urban and environmental policies and objectives of part I of such Act, 
$3,000,000, to remain available until September 30, 1999: Provided, 
That these funds are available to subsidize loan principal, 100 percent 
of which shall be guaranteed, pursuant to the authority of such 
sections. In addition, for administrative expenses to carry out 
guaranteed loan programs, $6,000,000, all of which may be transferred 
to and merged with the appropriation for Operating Expenses of the 
Agency for International Development: Provided further, That 
commitments to guarantee loans under this heading may be entered into 
notwithstanding the second and third sentences of section 222(a) and, 
with regard to programs for Central and Eastern Europe and programs for 
the benefit of South Africans disadvantaged by apartheid, section 
223(j) of the Foreign Assistance Act of 1961.


     payment to the foreign service retirement and disability fund


    For payment to the ``Foreign Service Retirement and 
Disability Fund'', as authorized by the Foreign Service Act of 
1980, $44,208,000.


     operating expenses of the agency for international development


    For necessary expenses to carry out the provisions of 
section 667, $473,000,000: Provided, That none of the funds 
appropriated by this Act for programs administered by the 
Agency for International Development may be used to finance 
printing costs of any report or study (except feasibility, 
design, or evaluation reports or studies) in excess of $25,000 
without the approval of the Administrator of the Agency or the 
Administrator's designee.


 operating expenses of the agency for international development office 
                          of inspector general


    For necessary expenses to carry out the provisions of 
section 667, $29,047,000, to remain available until September 
30, 1999, which sum shall be available for the Office of the 
Inspector General of the Agency for International Development.

                  Other Bilateral Economic Assistance


                         economic support fund


    For necessary expenses to carry out the provisions of 
chapter 4 of part II, $2,400,000,000, to remain available until 
September 30, 1999: Provided, That of the funds appropriated 
under this heading, not less than $1,200,000,000 shall be 
available only for Israel, which sum shall be available on a 
grant basis as a cash transferand shall be disbursed within 
thirty days of enactment of this Act or by October 31, 1997, whichever 
is later: Provided further, That not less than $815,000,000 shall be 
available only for Egypt, which sum shall be provided on a grant basis, 
and of which sum cash transfer assistance may be provided, with the 
understanding that Egypt will undertake significant economic reforms 
which are additional to those which were undertaken in previous fiscal 
years: Provided further, That in exercising the authority to provide 
cash transfer assistance for Israel, the President shall ensure that 
the level of such assistance does not cause an adverse impact on the 
total level of nonmilitary exports from the United States to such 
country: Provided further, That of the funds appropriated under this 
heading, not less than $150,000,000 shall be made available for Jordan: 
Provided further, That of the funds made available under this heading 
in previous Acts making appropriations for foreign operations, export 
financing, and related programs, notwithstanding any provision in any 
such heading in such previous Acts, up to $116,000,000 may be allocated 
or made available for programs and activities under this heading 
including the Middle East Peace and Stability Fund: Provided further, 
That in carrying out the previous proviso, the President should seek to 
ensure to the extent feasible that not more than 1 percent of the 
amount specified in section 586 of this Act should be derived from 
funds that would otherwise be made available for any single country: 
Provided further, That funds provided for the Middle East Peace and 
Stability Fund by a country in the region under the authority of 
section 635(d) of the Foreign Assistance Act of 1961, and funds made 
available for Jordan following the date of enactment of this Act from 
previous Acts making appropriations for foreign operations, export 
financing, and related programs, shall count toward meeting the earmark 
contained in the fourth proviso under this heading: Provided further, 
That up to $10,000,000 of funds under this heading in previous foreign 
operations, export financing, and related programs appropriations Acts 
that were reprogrammed for Jordan during fiscal year 1997 shall also 
count toward such earmark: Provided further, That, in order to 
facilitate the implementation of the fourth proviso under this heading, 
the requirement of section 515 of this Act or any similar provision of 
law shall not apply to the making available of funds appropriated for a 
fiscal year for programs, projects, or activities that were justified 
for another fiscal year: Provided further, That for fiscal year 1998 
such portions of the notification required under section 653 of the 
Foreign Assistance Act of 1961 that relate to the Middle East may be 
submitted to the Congress as soon as practicable, but no later than 
March 1, 1998: Provided further, That during fiscal year 1998, of the 
local currencies generated from funds made available under this heading 
for Guatemala by this Act and prior Appropriations Acts, the United 
States and Guatemala may jointly program the Guatemala quetzales 
equivalent of a total of up to $10,000,000 for the purpose of retiring 
the debt owed by universities in Guatemala to the Inter-American 
Development Bank.


                     international fund for ireland


    For necessary expenses to carry out the provisions of 
chapter 4 of part II of the Foreign Assistance Act of 1961, 
$19,600,000, which shall be available for the United States 
contribution to the International Fund for Ireland and shall be 
made available in accordance with the provisions of the Anglo-
Irish Agreement Support Act of 1986 (Public Law 99-415): 
Provided, That such amount shall be expended at the minimum 
rate necessary to make timely payment for projects and 
activities: Provided further, That funds made available under 
this heading shall remain available until September 30, 1999.


          assistance for eastern europe and the baltic states


    (a) For necessary expenses to carry out the provisions of 
the Foreign Assistance Act of 1961 and the Support for East 
European Democracy (SEED) Act of 1989, $485,000,000, to remain 
available until September 30, 1999, which shall be available, 
notwithstanding any other provision of law, for economic 
assistance and for related programs for Eastern Europe and the 
Baltic States.
    (b) Funds appropriated under this heading or in prior 
appropriations Acts that are or have been made available for an 
Enterprise Fund may be deposited by such Fund in interest-
bearing accounts prior to the Fund's disbursement of such funds 
for program purposes. The Fund may retain for such program 
purposes any interest earned on such deposits without returning 
such interest to the Treasury of the United States and without 
further appropriation by the Congress. Funds made available for 
Enterprise Funds shall be expended at the minimum rate 
necessary to make timely payment for projects and activities.
    (c) Funds appropriated under this heading shall be 
considered to be economic assistance under the Foreign 
Assistance Act of 1961 for purposes of making available the 
administrative authorities contained in that Act for the use of 
economic assistance.
    (d) None of the funds appropriated under this heading may 
be made available for new housing construction or repair or 
reconstruction of existing housing in Bosnia and Herzegovina 
unless directly related to the efforts of United States troops 
to promote peace in said country.
    (e) With regard to funds appropriated or otherwise made 
available under this heading for the economic revitalization 
program in Bosnia and Herzegovina, and local currencies 
generated by such funds (including the conversion of funds 
appropriated under this heading into currency used by Bosnia 
and Herzegovina as local currency and local currency returned 
or repaid under such program)--
            (1) the Administrator of the Agency for 
        International Development shall provide written 
        approval for grants and loans prior to the obligation 
        and expenditure of funds for such purposes, and prior 
        to the use of funds that have been returned or repaid 
        to any lending facility or grantee; and
            (2) the provisions of section 532 of this Act shall 
        apply.
    (f) The President is authorized to withhold funds 
appropriated under this heading made available for economic 
revitalization programs in Bosnia and Herzegovina, if he 
determines and certifies to the Committees on Appropriations 
that the Federation of Bosnia and Herzegovina has not complied 
with article III of annex 1-A of the General Framework 
Agreement for Peace in Bosnia and Herzegovina concerning the 
withdrawal of foreign forces, and that intelligence cooperation 
on training, investigations, and related activities between 
Iranian officials and Bosnian officials has not been 
terminated.
    (g) Not to exceed $200,000,000 of the funds appropriated 
under this heading may be made available for Bosnia and 
Herzegovina exclusive of assistance for police training.
    (h) Not to exceed $7,000,000 of the funds made available 
for Bosnia and Herzegovina may be made available for the cost, 
as defined in section 502 of the Congressional Budget Act of 
1974, of modifying direct loans and loan guarantees for said 
country.


  assistance for the new independent states of the former soviet union


    (a) For necessary expenses to carry out the provisions of 
chapter 11 of part I of the Foreign Assistance Act of 1961 and 
the FREEDOM Support Act, for assistance for the new independent 
states of the former Soviet Union and for related programs, 
$770,000,000, to remain available until September 30, 1999: 
Provided, That the provisions of such chapter shall apply to 
funds appropriated by this paragraph.
    (b) None of the funds appropriated under this heading shall 
be made available to the Government of Russia--
            (1) unless that Government is making progress in 
        implementing comprehensive economic reforms based on 
        market principles, private ownership, negotiating 
        repayment of commercial debt, respect for commercial 
        contracts, and equitable treatment of foreign private 
        investment;
            (2) if that Government applies or transfers United 
        States assistance to any entity for the purpose of 
        expropriating or seizing ownership or control of 
        assets, investments, or ventures; and
            (3) funds may be furnished without regard to this 
        subsection if the President determines that to do so is 
        in the national interest.
    (c) None of the funds appropriated under this heading shall 
be made available to any government of the new independent 
states of the former Soviet Union if that government directs 
any action in violation of the territorial integrity or 
national sovereignty of any other new independent state, such 
as those violations included in the Helsinki Final Act: 
Provided, That such funds may be made available without regard 
to the restriction in this subsection if the President 
determines that to do so is in the national security interest 
of the United States: Provided further, That the restriction of 
this subsection shall not apply to the use of such funds for 
the provision of assistance for purposes of humanitarian and 
refugee relief.
    (d) None of the funds appropriated under this heading for 
the new independent states of the former Soviet Union shall be 
made available for any state to enhance its military 
capability: Provided, That this restriction does not apply to 
demilitarization, demining, or nonproliferation programs.
    (e) Funds appropriated under this heading shall be subject 
to the regular notification procedures of the Committees on 
Appropriations.
    (f) Funds made available in this Act for assistance to the 
new independent states of the former Soviet Union shall be 
subject to the provisions of section 117 (relating to 
environment and natural resources) of the Foreign Assistance 
Act of 1961.
    (g) Funds appropriated under title II of this Act, 
including funds appropriated under this heading, may be made 
available for assistance for Mongolia: Provided, That funds 
made available for assistance for Mongolia may be made 
available in accordance with the purposes and utilizing the 
authorities provided in chapter 11 of part I of the Foreign 
Assistance Act of 1961.
    (h) In issuing new task orders, entering into contracts, or 
making grants, with funds appropriated under this heading or in 
prior appropriations Acts, for projects or activities that have 
as one of their primary purposes the fostering of private 
sector development, the Coordinator for United States 
Assistance to the New Independent States and the implementing 
agency shall encourage the participation of and give 
significant weight to contractors and grantees who propose 
investing a significant amount of their own resources 
(including volunteer services and in-kind contributions) in 
such projects and activities.
    (i) Funds appropriated under this heading or in prior 
appropriations Acts that are or have been made available for an 
Enterprise Fund may be deposited by such Fund in interest-
bearing accounts prior to the disbursement of such funds by the 
Fund for program purposes. The Fund may retain for such program 
purposes any interest earned on such deposits without returning 
such interest to the Treasury of the United States and without 
further appropriation by the Congress. Funds made available for 
Enterprise Funds shall be expended at the minimum rate 
necessary to make timely payment for projects and activities.
    (j)(1) Of the funds appropriated under this heading that 
are allocated for assistance for the Government of Russia, 50 
percent shall be withheld from obligation until the President 
determines and certifies in writing to the Committees on 
Appropriations that the Government of Russia has terminated 
implementation of arrangements to provide Iran with technical 
expertise, training, technology, or equipment necessary to 
develop a nuclear reactor, related nuclear research facilities 
or programs, or ballistic missile capability.
    (2) Notwithstanding paragraph (1) assistance may be 
provided for the Government of Russia if the 
Presidentdetermines and certifies to the Committees on Appropriations 
that making such funds available (A) is vital to the national security 
interest of the United States, and (B) that the Government of Russia is 
taking meaningful steps to limit major supply contracts and to curtail 
the transfer of technology and technological expertise related to 
activities referred to in paragraph (1).
    (k) Of the funds appropriated under this heading, not less 
than $225,000,000 shall be made available for Ukraine, which 
sum shall be provided with the understanding that Ukraine will 
undertake significant economic reforms which are additional to 
those which were undertaken in the previous fiscal year: 
Provided, That 50 percent of the amount made available in this 
subsection, exclusive of funds made available for election 
related initiatives and nuclear reactor safety activities, 
shall be withheld from obligation and expenditure until the 
Secretary of State determines and certifies no later than April 
30, 1998, that the Government of Ukraine has made significant 
progress toward resolving complaints made by United States 
investors to the United States embassy prior to April 30, 1997: 
Provided further, That funds made available under this 
subsection, and funds appropriated for Ukraine in the Foreign 
Operations, Export Financing, and Related Programs 
Appropriations Act, 1997 as contained in Public Law 104-208 
shall be made available to complete the preparation of safety 
analysis reports at each nuclear reactor in Ukraine over the 
next three years.
    (l) Of the funds appropriated under this heading, not less 
than $250,000,000 shall be made available for assistance for 
the Southern Caucasus region: Provided, That of the funds 
provided under this subsection 37 percent shall be made 
available for Georgia and 35 percent shall be made available 
for Armenia: Provided further, That of the funds made available 
for the Southern Caucasus region, 28 percent should be used for 
reconstruction and remedial activities relating to the 
consequences of conflicts within the region, especially those 
in the vicinity of Abkhazia and Nagorno-Karabakh: Provided 
further, That if the Secretary of State after May 30, 1998, 
determines and reports to the relevant Committees of Congress 
that the full amount of reconstruction and remedial funds that 
may be made available under the previous proviso cannot be 
effectively utilized, up to 62.5 percent of the amount provided 
under the previous proviso for reconstruction and remediation 
may be used for other purposes under this heading.
    (m) Funds provided under the previous subsection shall be 
made available for humanitarian assistance for refugees, 
displaced persons, and needy civilians affected by the 
conflicts in the Southern Caucasus region, includingthose in 
the vicinity of Abkhazia and Nagorno-Karabakh, notwithstanding any 
other provision of this or any other Act.
    (n) Funds made available under this Act or any other Act 
may not be provided for assistance to the Government of 
Azerbaijan until the President determines, and so reports to 
the Congress, that the Government of Azerbaijan is taking 
demonstrable steps to cease all blockades against Armenia and 
Nagorno-Karabakh: Provided, That the restriction of this 
subsection and section 907 of the FREEDOM Support Act shall not 
apply to--
            (1) activities to support democracy or assistance 
        under title V of the FREEDOM Support Act and section 
        1424 of Public Law 104-201;
            (2) any assistance provided by the Trade and 
        Development Agency under section 661 of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2421); and
            (3) any activity carried out by a member of the 
        United States and Foreign Commercial Service while 
        acting within his or her official capacity.
    (o) None of the funds appropriated under this heading or in 
prior appropriations legislation may be made available to 
establish a joint public-private entity or organization engaged 
in the management of activities or projects supported by the 
Defense Enterprise Fund.

                           Independent Agency


                              peace corps


    For expenses necessary to carry out the provisions of the 
Peace Corps Act (75 Stat. 612), $222,000,000, including the 
purchase of not to exceed five passenger motor vehicles for 
administrative purposes for use outside of the United States: 
Provided, That none of the funds appropriated under this 
heading shall be used to pay for abortions: Provided further, 
That funds appropriated under this heading shall remain 
available until September 30, 1999.

                          Department of State


                    international narcotics control


    For necessary expenses to carry out section 481 of the 
Foreign Assistance Act of 1961, $215,000,000: Provided, That 
during fiscal year 1998, the Department of State may also use 
the authority of section 608 of the Act, without regard to its 
restrictions, to receive non-lethal excess property from an 
agency of the United States Government for the purpose of 
providing it to a foreign country under chapter 8 of part I of 
that Act subject to the regular notification procedures of the 
Committees on Appropriations: Provided further, That not later 
than sixty days after the date of enactment of this Act, the 
Secretary of State in consultation with the Director of the 
Office of National Drug Control Policy shall submit a report to 
the Committees on Appropriations containing: (1) a list of all 
countries in which the United States carries out international 
counter-narcotics activities; (2) the number, mission and 
agency affiliation of United States personnel assigned to each 
such country; and (3) all costs and expenses obligated for each 
program, project or activity by each United States agency in 
each country: Provided further, That of the amount made 
available under this heading not to exceed $5,000,000 shall be 
allocated to operate the Western Hemisphere International Law 
Enforcement Academy: Provided further, That 10 percent of the 
funds appropriated under this heading shall not be available 
for obligation until the Secretary of State submits a report to 
the Committees on Appropriations providing a financial plan for 
the funds appropriated under this heading and under the heading 
``Narcotics Interdiction''.


                         narcotics interdiction


    For necessary expenses to carry out the provisions of 
section 481 of the Foreign Assistance Act of 1961, $15,000,000, 
to remain available until expended, in addition to amounts 
otherwise available for such purposes, which shall be available 
for assistance, including procurement, for support of air drug 
interdiction and eradication and other related purposes: 
Provided, That funds appropriated under this heading shall be 
made available subject to the regular notification procedures 
of the Committee on Appropriations.


                    migration and refugee assistance


    For expenses, not otherwise provided for, necessary to 
enable the Secretary of State to provide, as authorized by law, 
a contribution to the International Committee of the Red Cross, 
assistance to refugees, including contributions to the 
International Organization for Migration and the United Nations 
High Commissioner for Refugees, and other activities to meet 
refugee and migration needs; salaries and expenses of personnel 
and dependents as authorized by the Foreign Service Act of 
1980; allowances as authorized by sections 5921 through 5925 of 
title 5, United States Code; purchase and hire of passenger 
motor vehicles; and services as authorized by section 3109 of 
title 5, United States Code, $650,000,000: Provided, That not 
more than $12,000,000 shall be available for administrative 
expenses: Provided further, That not less than $80,000,000 
shall be made available for refugees from the former Soviet 
Union and Eastern Europe and other refugees resettling in 
Israel.


                    refugee resettlement assistance


    For necessary expenses for the targeted assistance program 
authorized by title IV of the Immigration and Nationality Act 
and section 501 of the Refugee Education Assistance Act of 1980 
and administered by the Office of Refugee Resettlement of the 
Department of Health and Human Services, in addition to amounts 
otherwise available for such purposes, $5,000,000.


     united states emergency refugee and migration assistance fund


    For necessary expenses to carry out the provisions of 
section 2(c) of the Migration and Refugee Assistance Act of 
1962, as amended (22 U.S.C. 260(c)), $50,000,000, to remain 
available until expended: Provided, That the funds made 
available under this heading are appropriated notwithstanding 
the provisions contained in section 2(c)(2) of the Migration 
and Refugee Assistance Act of 1962 which would limit the amount 
of funds which could be appropriated for this purpose.


    nonproliferation, anti-terrorism, demining and related programs


    For necessary expenses for nonproliferation, anti-terrorism 
and related programs and activities, $133,000,000, to carry out 
the provisions of chapter 8 of part II of the Foreign 
Assistance Act of 1961 for anti-terrorism assistance, section 
504 of the FREEDOM Support Act for the Nonproliferation and 
Disarmament Fund, section 23 of the Arms Export Control Act or 
the Foreign Assistance Act of 1961 for demining, the clearance 
of unexploded ordnance, and related activities, notwithstanding 
any other provision of law, including activities implemented 
through nongovernmental and international organizations,section 
301 of the Foreign Assistance Act of 1961 for a voluntary contribution 
to the International Atomic Energy Agency (IAEA) and a voluntary 
contribution to the Korean Peninsula Energy Development Organization 
(KEDO): Provided, That of this amount not to exceed $15,000,000, to 
remain available until expended, may be made available for the 
Nonproliferation and Disarmament Fund, notwithstanding any other 
provision of law, to promote bilateral and multilateral activities 
relating to nonproliferation and disarmament: Provided further, That 
such funds may also be used for such countries other than the new 
independent states of the former Soviet Union and international 
organizations when it is in the national security interest of the 
United States to do so: Provided further, That such funds shall be 
subject to the regular notification procedures of the Committees on 
Appropriations: Provided further, That funds appropriated under this 
heading may be made available for the International Atomic Energy 
Agency only if the Secretary of State determines (and so reports to the 
Congress) that Israel is not being denied its right to participate in 
the activities of that Agency: Provided further, That not to exceed 
$30,000,000 may be made available to the Korean Peninsula Energy 
Development Organization (KEDO) only for the administrative expenses 
and heavy fuel oil costs associated with the Agreed Framework: Provided 
further, That such funds may be obligated to KEDO only if, thirty days 
prior to such obligation of funds, the President certifies and so 
reports to Congress that: (1)(A) the parties to the Agreed Framework 
are taking steps to assure that progress is made on the implementation 
of the January 1, 1992, Joint Declaration on the Denuclearization of 
the Korean Peninsula and the implementation of the North-South 
dialogue, and (B) North Korea is complying with the other provisions of 
the Agreed Framework between North Korea and the United States and with 
the Confidential Minute; (2) North Korea is cooperating fully in the 
canning and safe storage of all spent fuel from its graphite-moderated 
nuclear reactors and that such canning and safe storage is scheduled to 
be completed by April 1, 1998; and (3) North Korea has not 
significantly diverted assistance provided by the United States for 
purposes for which it was not intended: Provided further, That the 
President may waive the certification requirements of the preceding 
proviso if the President determines that it is vital to the national 
security interests of the United States: Provided further, That no 
funds may be obligated for KEDO until thirty calendar days after 
submission to Congress of the waiver permitted under the preceding 
proviso: Provided further, That the obligation of any funds for KEDO 
shall be subject to the regular notification procedures of the 
Committees on Appropriations: Provided further, That the Secretary of 
State shall submit to the appropriate congressional committees an 
annual report (to be submitted with the annual presentation for 
appropriations) providing a full and detailed accounting of the fiscal 
year request for the United States contribution to KEDO, the expected 
operating budget of the Korean Peninsula Energy Development 
Organization, to include unpaid debt, proposed annual costs associated 
with heavy fuel oil purchases, and the amount of funds pledged by other 
donor nations and organizations to support KEDO activities on a per 
country basis, and other related activities: Provided further, That of 
the funds made available under this heading, up to $10,000,000 may be 
made available to the Korean Peninsula Energy Development Organization 
(KEDO), in addition to funds otherwise made available under this 
heading for KEDO, if the Secretary of State certifies and reports to 
the Committees on Appropriations that, except for the funds made 
available under this proviso, funds sufficient to cover all outstanding 
debts owed by KEDO for heavy fuel oil have been provided to KEDO by 
donors other than the United States.

                     TITLE III--MILITARY ASSISTANCE

                  Funds Appropriated to the President


             international military education and training


    For necessary expenses to carry out the provisions of 
section 541 of the Foreign Assistance Act of 1961, $50,000,000: 
Provided, That the civilian personnel for whom military 
education and training may be provided under this heading may 
include civilians who are not members of a government whose 
participation would contribute to improved civil-military 
relations, civilian control of the military, or respect for 
human rights: Provided further, That funds appropriated under 
this heading for grant financed military education and training 
for Indonesia and Guatemala may only be available for expanded 
international military education and training and funds made 
available for Guatemala may only be provided through the 
regular notification procedures of the Committees on 
Appropriations: Provided further, That none of the funds 
appropriated under this heading may be made available to 
support grant financed military education and training at the 
School of the Americas unless: (1) the Secretary of Defense 
certifies that the instruction and training provided by the 
School of the Americas is fully consistent with training and 
doctrine, particularly with respect to the observance of human 
rights, provided by the Department of Defense to United States 
military students at Department of Defense institutions whose 
primary purpose is to train United States military personnel; 
(2) the Secretary of Defense certifies that the Secretary of 
State, in consultation with the Secretary of Defense, has 
developed and issued specific guidelines governing the 
selection and screening of candidates for instruction at the 
School of the Americas; and (3) the Secretary of Defense 
submits to the Committees on Appropriations a report detailing 
the training activities of the School of the Americas and a 
general assessment regarding the performance of its graduates 
during 1996.


                   foreign military financing program


    For expenses necessary for grants to enable the President 
to carry out the provisions of section 23 of the Arms Export 
Control Act, $3,296,550,000: Provided, That of the funds 
appropriated under this heading, not less than $1,800,000,000 
shall be available for grants only for Israel, and not less 
than $1,300,000,000 shall be made available for grants only for 
Egypt: Provided further, That the funds appropriated by this 
paragraph for Israel shall be disbursed within thirty days of 
enactment of this Act or by October 31, 1997, whichever is 
later: Provided further, That to the extent that the Government 
of Israel requests that funds be used for such purposes, grants 
made available for Israel by this paragraph shall, as agreed 
byIsrael and the United States, be available for advanced weapons 
systems, of which not less than $475,000,000 shall be available for the 
procurement in Israel of defense articles and defense services, 
including research and development: Provided further, That of the funds 
appropriated by this paragraph, not less than $75,000,000 shall be 
available for assistance for Jordan: Provided further, That during 
fiscal year 1998 the President is authorized to, and shall, direct 
drawdowns 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 less than 
$25,000,000 under the authority of this proviso for Jordan for the 
purposes of part II of the Foreign Assistance Act of 1961, and any 
amount so directed shall count toward meeting the earmark in the 
previous proviso: Provided further, That section 506(c) of the Foreign 
Assistance Act of 1961 shall apply, and section 632(d) of the Foreign 
Assistance Act of 1961 shall not apply, to any such drawdown: Provided 
further, That of the funds appropriated by this paragraph, a total of 
$18,300,000 should be available for assistance for Estonia, Latvia, and 
Lithuania: Provided further, That none of the funds made available 
under this heading shall be available for any non-NATO country 
participating in the Partnership for Peace Program except through the 
regular notification procedures of the Committees on Appropriations: 
Provided further, That funds appropriated by this paragraph shall be 
nonrepayable notwithstanding any requirement in section 23 of the Arms 
Export Control Act: Provided further, That funds made available under 
this paragraph shall be obligated upon apportionment in accordance with 
paragraph (5)(C) of title 31, United States Code, section 1501(a): 
Provided further, That $50,000,000 of the funds appropriated or 
otherwise made available under this heading should be made available 
for the purpose of facilitating the integration of Poland, Hungary, and 
the Czech Republic into the North Atlantic Treaty Organization.
    For the cost, as defined in section 502 of the 
Congressional Budget Act of 1974, of direct loans authorized by 
section 23 of the Arms Export Control Act as follows: cost of 
direct loans, $60,000,000: Provided, That these funds are 
available to subsidize gross obligations for the principal 
amount of direct loans of not to exceed $657,000,000: Provided 
further, That the rate of interest charged on such loans shall 
be not less than the current average market yield on 
outstanding marketable obligations of the United States of 
comparable maturities: Provided further, That funds 
appropriated under this paragraph shall be made available for 
Greece and Turkey onlyon a loan basis, and the principal amount 
of direct loans for each country shall not exceed the following: 
$105,000,000 only for Greece and $150,000,000 only for Turkey.
    None of the funds made available under this heading shall 
be available to finance the procurement of defense articles, 
defense services, or design and construction services that are 
not sold by the United States Government under the Arms Export 
Control Act unless the foreign country proposing to make such 
procurements has first signed an agreement with the United 
States Government specifying the conditions under which such 
procurements may be financed with such funds: Provided, That 
all country and funding level increases in allocations shall be 
submitted through the regular notification procedures of 
section 515 of this Act: Provided further, That none of the 
funds appropriated under this heading shall be available for 
Sudan and Liberia: Provided further, That funds made available 
under this heading may be used, notwithstanding any other 
provision of law, for demining, the clearance of unexploded 
ordnance, and related activities and may include activities 
implemented through nongovernmental and international 
organizations: Provided further, That only those countries for 
which assistance was justified for the ``Foreign Military Sales 
Financing Program'' in the fiscal year 1989 congressional 
presentation for security assistance programs may utilize funds 
made available under this heading for procurement of defense 
articles, defense services or design and construction services 
that are not sold by the United States Government under the 
Arms Export Control Act: Provided further, That, subject to the 
regular notification procedures of the Committees on 
Appropriations, funds made available under this heading for the 
cost of direct loans may also be used to supplement the funds 
available under this heading for grants, and funds made 
available under this heading for grants may also be used to 
supplement the funds available under this heading for the cost 
of direct loans: Provided further, That funds appropriated 
under this heading shall be expended at the minimum rate 
necessary to make timely payment for defense articles and 
services: Provided further, That not more than $23,250,000 of 
the funds appropriated under this heading may be obligated for 
necessary expenses, including the purchase of passenger motor 
vehicles for replacement only for use outside of the United 
States, for the general costs of administering military 
assistance and sales: Provided further, That none of the funds 
under this heading shall be available for Guatemala: Provided 
further, That not more than $350,000,000 of funds realized 
pursuant to section 21(e)(1)(A) of the Arms ExportControl Act 
may be obligated for expenses incurred by the Department of Defense 
during fiscal year 1998 pursuant to section 43(b) of the Arms Export 
Control Act, except that this limitation may be exceeded only through 
the regular notification procedures of the Committees on 
Appropriations.


                        peacekeeping operations


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

               TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE


                  funds appropriated to the president


                  international financial institutions


     contribution to the international bank for reconstruction and 
                              development


    For payment to the International Bank for Reconstruction 
and Development by the Secretary of the Treasury, for the 
United States contribution to the Global Environment Facility 
(GEF), $47,500,000, to remain available until September 30, 
1999.


       contribution to the international development association


    For payment to the International Development Association by 
the Secretary of the Treasury, $1,034,503,100, to remain 
available until expended, of which $234,503,100 shall be 
available to pay for the tenth replenishment: Provided, That 
none of the funds may be obligated or made available until the 
Secretary of the Treasury certifies to the Committees on 
Appropriations that procurement restrictions applicable to 
United States firms under the terms of the Interim Trust Fund 
have been lifted from all funds which Interim Trust Fund donors 
proposed to set aside for review of procurement restrictions at 
the conclusion of the February 1997 IDA Deputies Meeting in 
Paris.


          contribution to the inter-american development bank


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


              limitation on callable capital subscriptions


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


contribution to the enterprise for the americas multilateral investment 
                                  fund


    For payment to the Enterprise for the Americas Multilateral 
Investment Fund by the Secretary of the Treasury, for the 
United States contribution to the Fund to be administered by 
the Inter-American Development Bank, $30,000,000 to remain 
available until expended, which shall be available for 
contributions previously due.


               contribution to the asian development bank


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


              limitation on callable capital subscriptions


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


               contribution to the asian development fund


    For the United States contribution by the Secretary of the 
Treasury to the increases in resources of the Asian Development 
Fund, as authorized by the Asian Development Bank Act, as 
amended (Public Law 89-369), $150,000,000, of which $50,000,000 
shall be available for contributions previously due, to remain 
available until expended.


              contribution to the african development fund


    For the United States contribution by the Secretary of the 
Treasury to the increase in resources of the African 
Development Fund, $45,000,000, to remain available until 
expended and which shall be available for contributions 
previously due.


  contribution to the european bank for reconstruction and development


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


              limitation on callable capital subscriptions


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

                    North American Development Bank

    For payment to the North American Development Bank by the 
Secretary of the Treasury, for the United States share of the 
paid-in portion of the capital stock, $56,500,000, to remain 
available until expended of which $250,000 shall be available 
for contributions previously due: Provided, That none of the 
funds appropriated under this heading that are made available 
for the Community Adjustment and Investment Program shall be 
used for purposes other than those set out in the binational 
agreement establishing the Bank: Provided further, That of the 
amount appropriated under this heading, not more than 
$41,250,000 may be expended for the purchase of such capital 
shares in fiscal year 1998.


              limitation on callable capital subscriptions


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


                international organizations and programs


    For necessary expenses to carry out the provisions of 
section 301 of the Foreign Assistance Act of 1961, and of 
section 2 of the United Nations Environment 
ProgramParticipation Act of 1973, $192,000,000: Provided, That none of 
the funds appropriated under this heading shall be made available for 
the United Nations Fund for Science and Technology: Provided further, 
That none of the funds appropriated under this heading that are made 
available to the United Nations Population Fund (UNFPA) shall be made 
available for activities in the People's Republic of China: Provided 
further, That not more than $25,000,000 of the funds appropriated under 
this heading may be made available to UNFPA: Provided further, That not 
more than one-half of this amount may be provided to UNFPA before March 
1, 1998, and that no later than February 15, 1998, the Secretary of 
State shall submit a report to the Committees on Appropriations 
indicating the amount UNFPA is budgeting for the People's Republic of 
China in 1998: Provided further, That any amount UNFPA plans to spend 
in the People's Republic of China in 1998 shall be deducted from the 
amount of funds provided to UNFPA after March 1, 1998, pursuant to the 
previous provisos: Provided further, That with respect to any funds 
appropriated under this heading that are made available to UNFPA, UNFPA 
shall be required to maintain such funds in a separate account and not 
commingle them with any other funds: Provided further, That none of the 
funds appropriated under this heading may be made available to the 
Korean Peninsula Energy Development Organization (KEDO) or the 
International Atomic Energy Agency (IAEA): Provided further, That not 
less than $4,000,000 should be made available to the World Food 
Program.

                      TITLE V--GENERAL PROVISIONS


             obligations during last month of availability


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


     prohibition of bilateral funding for international financial 
                              institutions


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


                    limitation on residence expenses


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


                         limitation on expenses


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


               limitation on representational allowances


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


                 prohibition on financing nuclear goods


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


        prohibition against direct funding for certain countries


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


                             military coups


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


                       transfers between accounts


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


                  deobligation/reobligation authority


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


                         availability of funds


    Sec. 511. No part of any appropriation contained in this 
Act shall remain available for obligation after the expiration 
of the current fiscal year unless expressly so provided in this 
Act: Provided, That funds appropriated for the purposes of 
chapters 1, 8, and 11 of part I, section667, and chapter 4 of 
part II of the Foreign Assistance Act of 1961, as amended, and funds 
provided under the heading ``Assistance for Eastern Europe and the 
Baltic States'', shall remain available until expended if such funds 
are initially obligated before the expiration of their respective 
periods of availability contained in this Act: Provided further, That, 
notwithstanding any other provision of this Act, any funds made 
available for the purposes of chapter 1 of part I and chapter 4 of part 
II of the Foreign Assistance Act of 1961 which are allocated or 
obligated for cash disbursements in order to address balance of 
payments or economic policy reform objectives, shall remain available 
until expended: Provided further, That the report required by section 
653(a) of the Foreign Assistance Act of 1961 shall designate for each 
country, to the extent known at the time of submission of such report, 
those funds allocated for cash disbursement for balance of payment and 
economic policy reform purposes.


            limitation on assistance to countries in default


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


                           commerce and trade


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


                          surplus commodities


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


                       notification requirements


    Sec. 515. For the purposes of providing the Executive 
Branch with the necessary administrative flexibility, none of 
the funds made available under this Act for ``Child Survival 
and Disease Programs Fund'', ``Development Assistance'', 
``International organizations and programs'', ``Trade and 
Development Agency'', ``International narcotics control'', 
``Narcotics Interdiction'', ``Assistance for Eastern Europe and 
the Baltic States'', ``Assistance for the New Independent 
States of the Former Soviet Union'', ``Economic Support Fund'', 
``Peacekeeping operations'', ``Operating expenses of the Agency 
for International Development'', ``Operating expenses of the 
Agency for International Development Office of Inspector 
General'', ``Nonproliferation, anti-terrorism, demining and 
related programs'', ``Foreign Military Financing Program'', 
``International military education andtraining'', ``Peace 
Corps'', ``Migration and refugee assistance'', shall be available for 
obligation for activities, programs, projects, type of materiel 
assistance, countries, or other operations not justified or in excess 
of the amount justified to the Appropriations Committees for obligation 
under any of these specific headings unless the Appropriations 
Committees of both Houses of Congress are previously notified fifteen 
days in advance: Provided, That the President shall not enter into any 
commitment of funds appropriated for the purposes of section 23 of the 
Arms Export Control Act for the provision of major defense equipment, 
other than conventional ammunition, or other major defense items 
defined to be aircraft, ships, missiles, or combat vehicles, not 
previously justified to Congress or 20 percent in excess of the 
quantities justified to Congress unless the Committees on 
Appropriations are notified fifteen days in advance of such commitment: 
Provided further, That this section shall not apply to any 
reprogramming for an activity, program, or project under chapter 1 of 
part I of the Foreign Assistance Act of 1961 of less than 10 percent of 
the amount previously justified to the Congress for obligation for such 
activity, program, or project for the current fiscal year: Provided 
further, That the requirements of this section or any similar provision 
of this Act or any other Act, including any prior Act requiring 
notification in accordance with the regular notification procedures of 
the Committees on Appropriations, may be waived if failure to do so 
would pose a substantial risk to human health or welfare: Provided 
further, That in case of any such waiver, notification to the Congress, 
or the appropriate congressional committees, shall be provided as early 
as practicable, but in no event later than three days after taking the 
action to which such notification requirement was applicable, in the 
context of the circumstances necessitating such waiver: Provided 
further, That any notification provided pursuant to such a waiver shall 
contain an explanation of the emergency circumstances.
    Drawdowns made pursuant to section 506(a)(2) of the Foreign 
Assistance Act of 1961 shall be subject to the regular 
notification procedures of the Committees on Appropriations.


limitation on availability of funds for international organizations and 
                                programs


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


              economic support fund assistance for israel


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


   prohibition on funding for abortions and involuntary sterilization


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


                         reporting requirement


    Sec. 519. Section 25 of the Arms Export Control Act is 
amended--
            (1) in subsection (a), by striking ``Congress'' and 
        inserting in lieu thereof ``appropriate congressional 
        committees'';
            (2) in subsection (b), by striking ``the Committee 
        on Foreign Relations of the Senate or the Committee on 
        Foreign Affairs of the House of Representatives'' and 
        inserting in lieu thereof ``any of the congressional 
        committees described in subsection (e)''; and
            (3) by adding the following subsection:
    ``(e) As used in this section, the term `appropriate 
congressional committees' means the Committee on Foreign 
Relations and the Committee on Appropriations of the Senate and 
the Committee on International Relations and the Committee on 
Appropriations of the House of Representatives.''.


                   special notification requirements


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


              definition of program, project, and activity


    Sec. 521. For the purpose of this Act, ``program, project, 
and activity'' shall be defined at the Appropriations Act 
account level and shall include all Appropriations and 
Authorizations Acts earmarks, ceilings, and limitations with 
the exception that for the following accounts: Economic Support 
Fund and Foreign Military Financing Program, ``program, 
project, and activity'' shall also be considered to include 
country, regional, and central program level funding within 
each such account; for the development assistance accounts of 
the Agency for International Development ``program, project, 
and activity'' shall also be considered to include central 
program level funding, either as (1) justified to the Congress, 
or (2) allocated by the executive branch in accordance with a 
report, to be provided to the Committees on Appropriations 
within thirty days of enactment of this Act, as required by 
section 653(a) of the Foreign Assistance Act of 1961.


               child survival, aids, and other activities


    Sec. 522. Up to $10,000,000 of the funds made available by 
this Act for assistance for family planning, health, child 
survival, basic education, and AIDS, may be used to reimburse 
United States Government agencies, agencies of State 
governments, institutions of higher learning, and private and 
voluntary organizations for the full cost of individuals 
(including for the personal services of such individuals) 
detailed or assigned to, or contracted by, as the case may be, 
the Agency for International Development for the purpose of 
carrying out family planning activities, child survival, and 
basic education activities, and activities relating to research 
on, and the treatment and control of acquired immune deficiency 
syndrome in developing countries: Provided, That funds 
appropriated by this Act that are made available for child 
survival activities or activities relating to research on, and 
the treatment and control of, acquired immune deficiency 
syndrome may be made available notwithstanding any provision of 
law that restricts assistance to foreign countries: Provided 
further, That funds appropriated by this Act that are made 
available for family planning activities may be made available 
notwithstanding section 512 of this Act and section 620(q) of 
the Foreign Assistance Act of 1961.


       prohibition against indirect funding to certain countries


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


                           reciprocal leasing


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


                notification on excess defense equipment


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


                       authorization requirement


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


       prohibition on bilateral assistance to terrorist countries


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


                 commercial leasing of defense articles


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


                         competitive insurance


    Sec. 529. All Agency for International Development 
contracts and solicitations, and subcontracts entered into 
under such contracts, shall include a clause requiring that 
United States insurance companies have a fair opportunity to 
bid for insurance when such insurance is necessary or 
appropriate.


                  stingers in the persian gulf region


    Sec. 530. Except as provided in section 581 of the Foreign 
Operations, Export Financing, and Related Programs 
Appropriations Act, 1990, the United States may not sell or 
otherwise make available any Stingers to any country bordering 
the Persian Gulf under the Arms Export Control Act or chapter 2 
of part II of the Foreign Assistance Act of 1961.


                          debt-for-development


    Sec. 531. In order to enhance the continued participation 
of nongovernmental organizations in economic assistance 
activities under the Foreign Assistance Act of 1961, including 
endowments, debt-for-development and debt-for-nature exchanges, 
a nongovernmental organization which is a grantee or contractor 
of the Agency for International Development may place in 
interest bearing accounts funds made available under this Act 
or prior Acts or local currencies which accrue to that 
organization as a result of economic assistance provided under 
title II of this Act and any interest earned on such investment 
shall be used for the purpose for which the assistance was 
provided to that organization.


                           separate accounts


    Sec. 532. (a) Separate Accounts for Local Currencies.--(1) 
If assistance is furnished to the government of a foreign 
country under chapters 1 and 10 of part I or chapter 4 of part 
II of the Foreign Assistance Act of 1961 under agreements which 
result in the generation of local currencies of that country, 
the Administrator of the Agency for International Development 
shall--
            (A) require that local currencies be deposited in a 
        separate account established by that government;
            (B) enter into an agreement with that government 
        which sets forth--
                    (i) the amount of the local currencies to 
                be generated; and
                    (ii) the terms and conditions under which 
                the currencies so deposited may be utilized, 
                consistent with this section; and
            (C) establish by agreement with that government the 
        responsibilities of the Agency for International 
        Development and that government to monitor and account 
        for deposits into and disbursements from the separate 
        account.
    (2) Uses of Local Currencies.--As may be agreed upon with 
the foreign government, local currencies deposited in a 
separate account pursuant to subsection (a), or an equivalent 
amount of local currencies, shall be used only--
            (A) to carry out chapters 1 or 10 of part I or 
        chapter 4 of part II (as the case may be), for such 
        purposes as--
                    (i) project and sector assistance 
                activities; or
                    (ii) debt and deficit financing; or
            (B) for the administrative requirements of the 
        United States Government.
    (3) Programming Accountability.--The Agency for 
International Development shall take all necessary steps to 
ensure that the equivalent of the local currencies disbursed 
pursuant to subsection (a)(2)(A) from the separate account 
established pursuant to subsection (a)(1) are used for the 
purposes agreed upon pursuant to subsection (a)(2).
    (4) Termination of Assistance Programs.--Upon termination 
of assistance to a country under chapters 1 or 10 of part I or 
chapter 4 of part II (as the case may be), any unencumbered 
balances of funds which remain in a separate account 
established pursuant to subsection (a) shall be disposed of for 
such purposes as may be agreed to by the government of that 
country and the United States Government.
    (5) Conforming Amendments.--The provisions of this 
subsection shall supersede the tenth and eleventh provisos 
contained under the heading ``Sub-Saharan Africa, Development 
Assistance'' as included in the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1989 and 
sections 531(d) and 609 of the Foreign Assistance Act of 1961.
    (6) Reporting Requirement.--The Administrator of the Agency 
for International Development shall report on an annual basis 
as part of the justification documents submitted to the 
Committees on Appropriations on the use of local currencies for 
the administrative requirements of the United States Government 
as authorized in subsection (a)(2)(B), and such report shall 
include the amount of local currency (and United States dollar 
equivalent) used and/or to be used for such purpose in each 
applicable country.
    (b) Separate Accounts for Cash Transfers.--(1) If 
assistance is made available to the government of a foreign 
country, under chapters 1 or 10 of part I or chapter 4 of part 
II of the Foreign Assistance Act of 1961, as cash transfer 
assistance or as nonproject sector assistance, that country 
shall be required to maintain such funds in a separate account 
and not commingle them with any other funds.
    (2) Applicability of Other Provisions of Law.--Such funds 
may be obligated and expended notwithstanding provisions of law 
which are inconsistent with the nature of this assistance 
including provisions which are referenced in the Joint 
Explanatory Statement of the Committee of Conference 
accompanying House Joint Resolution 648 (H. Report No. 98-
1159).
    (3) Notification.--At least fifteen days prior to 
obligating any such cash transfer or nonproject sector 
assistance, the President shall submit a notification through 
the regular notification procedures of the Committees on 
Appropriations, which shall include a detailed description of 
how the funds proposed to be made available will be used, with 
a discussion of the United States interests that will be served 
by the assistance (including, as appropriate, a description of 
the economic policy reforms that will be promoted by such 
assistance).
    (4) Exemption.--Nonproject sector assistance funds may be 
exempt from the requirements of subsection (b)(1) only through 
the notification procedures of the Committees on 
Appropriations.


  compensation for united states executive directors to international 
                         financial institutions


    Sec. 533. (a) No funds appropriated by this Act may be made 
as payment to any international financial institution while the 
United States Executive Director to such institution is 
compensated by the institution at a rate which, together with 
whatever compensation such Directorreceives from the United 
States, is in excess of the rate provided for an individual occupying a 
position at level IV of the Executive Schedule under section 5315 of 
title 5, United States Code, or while any alternate United States 
Director to such institution is compensated by the institution at a 
rate in excess of the rate provided for an individual occupying a 
position at level V of the Executive Schedule under section 5316 of 
title 5, United States Code.
    (b) For purposes of this section, ``international financial 
institutions'' are: the International Bank for Reconstruction 
and Development, the Inter-American Development Bank, the Asian 
Development Bank, the Asian Development Fund, the African 
Development Bank, the African Development Fund, the 
International Monetary Fund, the North American Development 
Bank, and the European Bank for Reconstruction and Development.


         compliance with united nations sanctions against iraq


    Sec. 534. None of the funds appropriated or otherwise made 
available pursuant to this Act to carry out the Foreign 
Assistance Act of 1961 (including title IV of chapter 2 of part 
I, relating to the Overseas Private Investment Corporation) or 
the Arms Export Control Act may be used to provide assistance 
to any country that is not in compliance with the United 
Nations Security Council sanctions against Iraq unless the 
President determines and so certifies to the Congress that--
            (1) such assistance is in the national interest of 
        the United States;
            (2) such assistance will directly benefit the needy 
        people in that country; or
            (3) the assistance to be provided will be 
        humanitarian assistance for foreign nationals who have 
        fled Iraq and Kuwait.


           competitive pricing for sales of defense articles


    Sec. 535. Direct costs associated with meeting a foreign 
customer's additional or unique requirements will continue to 
be allowable under contracts under section 22(d) of the Arms 
Export Control Act. Loadings applicable to such direct costs 
shall be permitted at the same rates applicable to procurement 
of like items purchased by the Department of Defense for its 
own use.


 extension of authority to obligate funds to close the special defense 
                            acquisition fund


    Sec. 536. Title III of Public Law 103-306 is amended under 
the heading ``Special Defense Acquisition Fund'' by striking 
``1998'' and inserting ``2000''.


authorities for the peace corps, the inter-american foundation and the 
                     african development foundation


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


                  impact on jobs in the united states


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


                          special authorities


    Sec. 539. (a) Funds appropriated in title II of this Act 
that are made available for Afghanistan, Lebanon, and for 
victims of war, displaced children, displaced Burmese, 
humanitarian assistance for Romania, and humanitarianassistance 
for the peoples of Bosnia and Herzegovina, Croatia, and Kosova, may be 
made available notwithstanding any other provision of law.
    (b) Funds appropriated by this Act to carry out the 
provisions of sections 103 through 106 of the Foreign 
Assistance Act of 1961 may be used, notwithstanding any other 
provision of law, for the purpose of supporting tropical 
forestry and energy programs aimed at reducing emissions of 
greenhouse gases, and for the purpose of supporting 
biodiversity conservation activities: Provided, That such 
assistance shall be subject to sections 116, 502B, and 620A of 
the Foreign Assistance Act of 1961.
    (c) The Agency for International Development may employ 
personal services contractors, notwithstanding any other 
provision of law, for the purpose of administering programs for 
the West Bank and Gaza.
    (d)(1) Waiver.--The President may waive the provisions of 
section 1003 of Public Law 100-204 if the President determines 
and certifies in writing to the Speaker of the House of 
Representatives and the President Pro Tempore of the Senate 
that it is important to the national security interests of the 
United States.
    (2) Period of application of waiver.--Any waiver pursuant 
to paragraph (1) shall be effective for no more than a period 
of six months at a time and shall not apply beyond twelve 
months after enactment of this Act.


        policy on terminating the arab league boycott of israel


    Sec. 540. It is the sense of the Congress that--
            (1) the Arab League countries should immediately 
        and publicly renounce the primary boycott of Israel and 
        the secondary and tertiary boycott of American firms 
        that have commercial ties with Israel; and
            (2) the decision by the Arab League in 1997 to 
        reinstate the boycott against Israel was deeply 
        troubling and disappointing; and
            (3) the Arab League should immediately rescind its 
        decision on the boycott and its members should develop 
        normal relations with their neighbor Israel; and
            (4) the President should--
                    (A) take more concrete steps to encourage 
                vigorously Arab League countries to renounce 
                publicly the primary boycotts of Israel and the 
                secondary and tertiary boycotts of American 
                firms that have commercial relations with 
                Israel as a confidence-building measure;
                    (B) take into consideration the 
                participation of any recipient country in the 
                primary boycott of Israel and the secondary and 
                tertiary boycotts of American firms that have 
                commercial relations with Israel when 
                determining whether to sell weapons to said 
                country;
                    (C) report to Congress on the specific 
                steps being taken by the President to bring 
                about a public renunciation of the Arab primary 
                boycott of Israel and the secondary and 
                tertiary boycotts of American firms that have 
                commercial relations with Israel and to expand 
                the process of normalizing ties between Arab 
                League countries and Israel; and
                    (D) encourage the allies and trading 
                partners of the United States to enact laws 
                prohibiting businesses from complying with the 
                boycott and penalizing businesses that do 
                comply.


                       anti-narcotics activities


    Sec. 541. (a) Of the funds appropriated or otherwise made 
available by this Act for ``Economic Support Fund'', assistance 
may be provided to strengthen the administration of justice in 
countries in Latin America and the Caribbean and in other 
regions consistent with the provisions of section 534(b) of the 
Foreign Assistance Act of 1961, except that programs to enhance 
protection of participants in judicial cases may be conducted 
notwithstanding section 660 of that Act.
    (b) Funds made available pursuant to this section may be 
made available notwithstanding section 534(c) and the second 
and third sentences of section 534(e) of the Foreign Assistance 
Act of 1961. Funds made availablepursuant to subsection (a) for 
Bolivia, Colombia, and Peru may be made available notwithstanding 
section 534(c) and the second sentence of section 534(e) of the Foreign 
Assistance Act of 1961.


                       eligibility for assistance


    Sec. 542. (a) Assistance Through Nongovernmental 
Organizations.--Restrictions contained in this or any other Act 
with respect to assistance for a country shall not be construed 
to restrict assistance in support of programs of 
nongovernmental organizations from funds appropriated by this 
Act to carry out the provisions of chapters 1 and 10 and 11 of 
part I, and chapter 4 of part II, of the Foreign Assistance Act 
of 1961: Provided, That the President shall take into 
consideration, in any case in which a restriction on assistance 
would be applicable but for this subsection, whether assistance 
in support of programs of nongovernmental organizations is in 
the national interest of the United States: Provided further, 
That before using the authority of this subsection to furnish 
assistance in support of programs of nongovernmental 
organizations, the President shall notify the Committees on 
Appropriations under the regular notification procedures of 
those committees, including a description of the program to be 
assisted, the assistance to be provided, and the reasons for 
furnishing such assistance: Provided further, That nothing in 
this subsection shall be construed to alter any existing 
statutory prohibitions against abortion or involuntary 
sterilizations contained in this or any other Act.
    (b) Public Law 480.--During fiscal year 1998, restrictions 
contained in this or any other Act with respect to assistance 
for a country shall not be construed to restrict assistance 
under the Agricultural Trade Development and Assistance Act of 
1954: Provided, That none of the funds appropriated to carry 
out title I of such Act and made available pursuant to this 
subsection may be obligated or expended except as provided 
through the regular notification procedures of the Committees 
on Appropriations.
    (c) Exception.--This section shall not apply--
            (1) with respect to section 620A of the Foreign 
        Assistance Act or any comparable provision of law 
        prohibiting assistance to countries that support 
        international terrorism; or
            (2) with respect to section 116 of the Foreign 
        Assistance Act of 1961 or any comparable provision of 
        law prohibiting assistance to countries that violate 
        internationally recognized human rights.


                                earmarks


    Sec. 543. (a) Funds appropriated by this Act which are 
earmarked may be reprogrammed for other programs within the 
same account notwithstanding the earmark ifcompliance with the 
earmark is made impossible by operation of any provision of this or any 
other Act or, with respect to a country with which the United States 
has an agreement providing the United States with base rights or base 
access in that country, if the President determines that the recipient 
for which funds are earmarked has significantly reduced its military or 
economic cooperation with the United States since enactment of the 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1991; however, before exercising the authority of 
this subsection with regard to a base rights or base access country 
which has significantly reduced its military or economic cooperation 
with the United States, the President shall consult with, and shall 
provide a written policy justification to the Committees on 
Appropriations: Provided, That any such reprogramming shall be subject 
to the regular notification procedures of the Committees on 
Appropriations: Provided further, That assistance that is reprogrammed 
pursuant to this subsection shall be made available under the same 
terms and conditions as originally provided.
    (b) In addition to the authority contained in subsection 
(a), the original period of availability of funds appropriated 
by this Act and administered by the Agency for International 
Development that are earmarked for particular programs or 
activities by this or any other Act shall be extended for an 
additional fiscal year if the Administrator of such agency 
determines and reports promptly to the Committees on 
Appropriations that the termination of assistance to a country 
or a significant change in circumstances makes it unlikely that 
such earmarked funds can be obligated during the original 
period of availability: Provided, That such earmarked funds 
that are continued available for an additional fiscal year 
shall be obligated only for the purpose of such earmark.


                         ceilings and earmarks


    Sec. 544. Ceilings and earmarks contained in this Act shall 
not be applicable to funds or authorities appropriated or 
otherwise made available by any subsequent Act unless such Act 
specifically so directs.


                 prohibition on publicity or propaganda


    Sec. 545. No part of any appropriation contained in this 
Act shall be used for publicity or propaganda purposes within 
the United States not authorized before the date of enactment 
of this Act by the Congress: Provided, That not to exceed 
$500,000 may be made available to carry out the provisions of 
section 316 of Public Law 96-533.


            purchase of american-made equipment and products


    Sec. 546. (a) To the maximum extent possible, assistance 
provided under this Act should make full use ofAmerican 
resources, including commodities, products, and services.
    (b) It is the Sense of the Congress that, to the greatest 
extent practicable, all equipment and products purchased with 
funds made available in this Act should be American-made.
    (c) In providing financial assistance to, or entering into 
any contract with, any entity using funds made available in 
this Act, the head of each Federal agency, to the greatest 
extent practicable, shall provide to such entity a notice 
describing the statement made in subsection (b) by the 
Congress.


           prohibition of payments to united nations members


    Sec. 547. None of the funds appropriated or made available 
pursuant to this Act for carrying out the Foreign Assistance 
Act of 1961, may be used to pay in whole or in part any 
assessments, arrearages, or dues of any member of the United 
Nations.


                          consulting services


    Sec. 548. The expenditure of any appropriation under this 
Act for any consulting service through procurement contract, 
pursuant to section 3109 of title 5, United States Code, shall 
be limited to those contracts where such expenditures are a 
matter of public record and available for public inspection, 
except where otherwise provided under existing law, or under 
existing Executive order pursuant to existing law.


             private voluntary organizations--documentation


    Sec. 549. None of the funds appropriated or made available 
pursuant to this Act shall be available to a private voluntary 
organization which fails to provide upon timely request any 
document, file, or record necessary to the auditing 
requirements of the Agency for International Development.


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


    Sec. 550. (a) None of the funds appropriated or otherwise 
made available by this Act may be available to any foreign 
government which provides lethal military equipment to a 
country the government of which the Secretary of State has 
determined is a terrorist government for purposes of section 
40(d) of the Arms Export Control Act. The prohibition under 
this section with respect to a foreign government shall 
terminate 12 months after that government ceases to provide 
such military equipment. This section applies with respect to 
lethal military equipment provided under a contract entered 
into after October 1, 1997.
    (b) Assistance restricted by subsection (a) or any other 
similar provision of law, may be furnished if the President 
determines that furnishing such assistance is important to the 
national interests of the United States.
    (c) Whenever the waiver of subsection (b) is exercised, the 
President shall submit to the appropriate congressional 
committees a report with respect to the furnishing of such 
assistance. Any such report shall include a detailed 
explanation of the assistance estimated to be provided, 
including the estimated dollar amount of such assistance, and 
an explanation of how the assistance furthers United States 
national interests.


 withholding of assistance for parking fines owed by foreign countries


    Sec. 551. (a) In General.--Of the funds made available for 
a foreign country under part I of the Foreign Assistance Act of 
1961, an amount equivalent to 110 percent of the total unpaid 
fully adjudicated parking fines and penalties owed to the 
District of Columbia by such country as of the date of 
enactment of this Act shall be withheld from obligation for 
such country until the Secretary of State certifies and reports 
in writing to the appropriate congressional committees that 
such fines and penalties are fully paid to the government of 
the District of Columbia.
    (b) Definition.--For purposes of this section, the term 
``appropriate congressional committees'' means the Committee on 
Foreign Relations and the Committee on Appropriations of the 
Senate and the Committee on International Relations and the 
Committee on Appropriations of the House of Representatives.


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


    Sec. 552. None of the funds appropriated by this Act may be 
obligated for assistance for the Palestine Liberation 
Organization for the West Bank and Gaza unless the President 
has exercised the authority under section 604(a) of the Middle 
East Peace Facilitation Act of 1995 (title VI of Public Law 
104-107) or any other legislation to suspend or make 
inapplicable section 307 of the Foreign Assistance Act of 1961 
and that suspension is still in effect: Provided, That if the 
President fails to make the certification under section 
604(b)(2) of the Middle East Peace Facilitation Act of 1995 or 
to suspend the prohibition under other legislation, funds 
appropriated by this Act may not be obligated for assistance 
for the Palestine Liberation Organization for the West Bank and 
Gaza.


                     war crimes tribunals drawdown


    Sec. 553. If the President determines that doing so will 
contribute to a just resolution of charges regarding genocide 
or other violations of international humanitarianlaw, the 
President may direct a drawdown pursuant to section 552(c) of the 
Foreign Assistance Act of 1961, as amended, of up to $25,000,000 of 
commodities and services for the United Nations War Crimes Tribunal 
established with regard to the former Yugoslavia by the United Nations 
Security Council or such other tribunals or commissions as the Council 
may establish to deal with such violations, without regard to the 
ceiling limitation contained in paragraph (2) thereof: Provided, That 
the determination required under this section shall be in lieu of any 
determinations otherwise required under section 552(c): Provided 
further, That sixty days after the date of enactment of this Act, and 
every one hundred eighty days thereafter, the Secretary of State shall 
submit a report to the Committees on Appropriations describing the 
steps the United States Government is taking to collect information 
regarding allegations of genocide or other violations of international 
law in the former Yugoslavia and to furnish that information to the 
United Nations War Crimes Tribunal for the former Yugoslavia.


                               landmines


    Sec. 554. Notwithstanding any other provision of law, 
demining equipment available to the Agency for International 
Development and the Department of State and used in support of 
the clearance of landmines and unexploded ordnance for 
humanitarian purposes may be disposed of on a grant basis in 
foreign countries, subject to such terms and conditions as the 
President may prescribe: Provided, That not later than 90 days 
after the enactment of this Act, the Secretary of Defense, in 
consultation with the Secretary of State, shall submit a report 
to the Committees on Appropriations describing potential 
alternative technologies or tactics and a plan for the 
development of such alternatives to protect anti-tank mines 
from tampering in a manner consistent with the ``Convention on 
the Prohibition, Use, Stockpiling, Production and Transfer of 
Anti-personnel Mines and on Their Destruction''.


           restrictions concerning the palestinian authority


    Sec. 555. None of the funds appropriated by this Act may be 
obligated or expended to create in any part of Jerusalem a new 
office of any department or agency of the United States 
Government for the purpose of conducting official United States 
Government business with the Palestinian Authority over Gaza 
and Jericho or any successor Palestinian governing entity 
provided for in the Israel-PLO Declaration of Principles: 
Provided, That this restriction shall not apply to the 
acquisition of additional space for the existing Consulate 
General in Jerusalem: Provided further, That meetings between 
officers and employees of the United States and officials of 
the Palestinian Authority, or any successor Palestinian 
governing entity provided for in the Israel-PLO Declaration of 
Principles, for the purpose of conducting official United 
States Government business with such authority should continue 
to take place in locations other than Jerusalem. As has been 
true in the past, officers and employees of the United States 
Government may continue to meet in Jerusalem on other subjects 
with Palestinians (including those who now occupy positions in 
the Palestinian Authority), have social contacts, and have 
incidental discussions.


               prohibition of payment of certain expenses


    Sec. 556. None of the funds appropriated or otherwise made 
available by this Act under the heading ``International 
Military Education and Training'' or ``Foreign Military 
Financing Program'' for Informational Program activities may be 
obligated or expended to pay for--
            (1) alcoholic beverages;
            (2) food (other than food provided at a military 
        installation) not provided in conjunction with 
        Informational Program trips where students do not stay 
        at a military installation; or
            (3) entertainment expenses for activities that are 
        substantially of a recreational character, including 
        entrance fees at sporting events and amusement parks.


                     equitable allocation of funds


    Sec. 557. Not more than 18 percent of the funds 
appropriated by this Act to carry out the provisions of 
sections 103 through 106 and chapter 4 of part II of the 
Foreign Assistance Act of 1961, that are made available for 
Latin America and the Caribbean region may be made available, 
through bilateral and Latin America and the Caribbean regional 
programs, to provide assistance for any country in such region.


                  special debt relief for the poorest


    Sec. 558. (a) Authority To Reduce Debt.--The President may 
reduce amounts owed to the United States (or any agency of the 
United States) by an eligible country as a result of--
            (1) guarantees issued under sections 221 and 222 of 
        the Foreign Assistance Act of 1961; or
            (2) credits extended or guarantees issued under the 
        Arms Export Control Act;
            (3) any obligation or portion of such obligation 
        for a Latin American country, to pay for purchases of 
        United States agricultural commodities guaranteed by 
        the Commodity Credit Corporation under export credit 
        guarantee programs authorized pursuant to section 5(f) 
        of the Commodity Credit Corporation Charter Act of June 
        29, 1948, as amended, section 4(b) of the Food for 
        Peace Act of 1966, as amended (Public Law 89-808), or 
        section 202 of the Agricultural Trade Act of 1978, as 
        amended (Public Law 95-501).
    (b) Limitations.--
            (1) The authority provided by subsection (a) may be 
        exercised only to implement multilateral official debt 
        relief and referendum agreements, commonly referred to 
        as ``Paris Club Agreed Minutes''.
            (2) The authority provided by subsection (a) may be 
        exercised only in such amounts or to such extent as is 
        provided in advance by appropriations Acts.
            (3) The authority provided by subsection (a) may be 
        exercised only with respect to countries with heavy 
        debt burdens that are eligible to borrow from the 
        International Development Association, but not from the 
        International Bank for Reconstruction and Development, 
        commonly referred to as ``IDA-only'' countries.
    (c) Conditions.--The authority provided by subsection (a) 
may be exercised only with respect to a country whose 
government--
            (1) does not have an excessive level of military 
        expenditures;
            (2) has not repeatedly provided support for acts of 
        international terrorism;
            (3) is not failing to cooperate on international 
        narcotics control matters;
            (4) (including its military or other security 
        forces) does not engage in a consistent pattern of 
        gross violations of internationally recognized human 
        rights; and
            (5) is not ineligible for assistance because of the 
        application of section 527 of the Foreign Relations 
        Authorization Act, Fiscal Years 1994 and 1995.
    (d) Availability of Funds.--The authority provided by 
subsection (a) may be used only with regard to funds 
appropriated by this Act under the heading ``Debt 
restructuring''.
    (e) Certain Prohibitions Inapplicable.--A reduction of debt 
pursuant to subsection (a) shall not be considered assistance 
for purposes of any provision of law limiting assistance to a 
country. The authority provided by subsection (a) may be 
exercised notwithstanding section 620(r) of the Foreign 
Assistance Act of 1961.


             authority to engage in debt buybacks or sales


    Sec. 559. (a) Loans Eligible for Sale, Reduction, or 
Cancellation.--
            (1) Authority to sell, reduce, or cancel certain 
        loans.--Notwithstanding any other provision of law, the 
        President may, in accordance with this section, sell to 
        any eligible purchaser any concessional loan or portion 
        thereof made before January 1, 1995, pursuant to the 
        Foreign Assistance Act of 1961, to the government of 
        any eligible country as defined in section 702(6) of 
        that Act or on receipt of payment from an eligible 
        purchaser, reduce or cancel such loan or portion 
        thereof, only for the purpose of facilitating--
                    (A) debt-for-equity swaps, debt-for-
                development swaps, or debt-for-nature swaps; or
                    (B) a debt buyback by an eligible country 
                of its own qualified debt, only if the eligible 
                country uses an additional amount of the local 
                currency of the eligible country, equal to not 
                less than 40 percent of the price paid for such 
                debt by such eligible country, or the 
                difference between the price paid for such debt 
                and the face value of such debt, to support 
                activities that link conservation and sustain- 
                able use of natural resources with local 
                community development, and child survival and 
                other child development, in a manner consistent 
                with sections 707 through 710 of the Foreign 
                Assistance Act of 1961, if the sale, reduction, 
                or cancellationwould not contravene any term or 
condition of any prior agreement relating to such loan.
            (2) Terms and conditions.--Notwithstanding any 
        other provision of law, the President shall, in 
        accordance with this section, establish the terms and 
        conditions under which loans may be sold, reduced, or 
        canceled pursuant to this section.
            (3) Administration.--The Facility, as defined in 
        section 702(8) of the Foreign Assistance Act of 1961, 
        shall notify the administrator of the agency primarily 
        responsible for administering part I of the Foreign 
        Assistance Act of 1961 of purchasers that the President 
        has determined to be eligible, and shall direct such 
        agency to carry out the sale, reduction, or 
        cancellation of a loan pursuant to this section. Such 
        agency shall make an adjustment in its accounts to 
        reflect the sale, reduction, or cancellation.
            (4) Limitation.--The authorities of this subsection 
        shall be available only to the extent that 
        appropriations for the cost of the modification, as 
        defined in section 502 of the Congressional Budget Act 
        of 1974, are made in advance.
    (b) Deposit of Proceeds.--The proceeds from the sale, 
reduction, or cancellation of any loan sold, reduced, or 
canceled pursuant to this section shall be deposited in the 
United States Government account or accounts established for 
the repayment of such loan.
    (c) Eligible Purchasers.--A loan may be sold pursuant to 
subsection (a)(1)(A) only to a purchaser who presents plans 
satisfactory to the President for using the loan for the 
purpose of engaging in debt-for-equity swaps, debt-for-
development swaps, or debt-for-nature swaps.
    (d) Debtor Consultations.--Before the sale to any eligible 
purchaser, or any reduction or cancellation pursuant to this 
section, of any loan made to an eligible country, the President 
should consult with the country concerning the amount of loans 
to be sold, reduced, or canceled and their uses for debt-for-
equity swaps, debt-for-development swaps, or debt-for-nature 
swaps.
    (e) Availability of Funds.--The authority provided by 
subsection (a) may be used only with regard to funds 
appropriated by this Act under the heading ``Debt 
restructuring''.


                  international financial institutions


    Sec. 560. (a) Authorizations.--The Secretary of the 
Treasury may, to fulfill commitments of the United States: (1) 
effect the United States participation in the first general 
capital increase of the European Bank for Reconstruction and 
Development, subscribe to and make payment for 100,000 
additional shares of the capital stock of the Bank on behalf of 
the United States; and (2) contribute on behalf of the United 
States to the eleventh replenishment of the resources of the 
International Development Association, to the sixth 
replenishment of the resources of the Asian Development Fund, a 
special fund of the Asian Development Bank. The following 
amounts are authorized to be appropriated without fiscal year 
limitation for payment by the Secretary of the Treasury: (1) 
$285,772,500 for paid-in capital, and $984,327,500 for callable 
capital of the European Bank for Reconstruction and 
Development; (2) $1,600,000,000 for the International 
Development Association; (3) $400,000,000 for the Asian 
Development Fund; and (4) $76,832,001 for paid-in capital, and 
$4,511,156,729 for callable capital of the Inter-American 
Development Bank in connection with the eighth general increase 
in the resources of that Bank. Each such subscription or 
contribution shall be subject to obtaining the necessary 
appropriations.
    (b) Consideration of Environmental Impact of International 
Finance Corporation Loans.--Section 1307 of the International 
Financial Institutions Act (Public Law 95-118) is amended as 
follows:
            (1) in subsection (a)(1)(A) strike ``borrowing 
        country'' and insert in lieu thereof ``borrower'';
            (2) in subsection (a)(2)(A) strike ``country''; and
            (3) at the end of Section 1307, add a new 
        subsection as follows:
    ``(g) For purposes of this section, the term `multilateral 
development bank' means any of the institutions named in 
Section 1303(b) of this Act, and the International Finance 
Corporation.''.
    (c) The Secretary of the Treasury shall instruct the United 
States Executive Directors of the International Bank for 
Reconstruction and Development and the International 
Development Association to use the voice and vote of the United 
States to strongly encourage their respective institutions to--
            (1) provide timely public information on 
        procurement opportunities available to United States 
        suppliers, with a special emphasis on small business; 
        and
            (2) systematically consult with local communities 
        on the potential impact of loans as part of the normal 
        lending process, and expand the participation of 
        affected peoples and nongovernmental organizations in 
        decisions on the selection, design and implementation 
        of policies and projects.


          sanctions against countries harboring war criminals


    Sec. 561. (a) Bilateral Assistance.--The President is 
authorized to withhold funds appropriated by this Act under the 
Foreign Assistance Act of 1961 or the Arms Export Control Act 
for any country described in subsection (c).
    (b) Multilateral Assistance.--The Secretary of the Treasury 
should instruct the United States executive directors of the 
international financial institutions to work in opposition to, 
and vote against, any extension by such institutions of 
financing or financial or technical assistance to any country 
described in subsection (c).
    (c) Sanctioned Countries.--A country described in this 
subsection is a country the government of which knowingly 
grants sanctuary to persons in its territory for the purpose of 
evading prosecution, where such persons--
            (1) have been indicted by the International 
        Criminal Tribunal for Rwanda, or any other 
        international tribunal with similar standing under 
        international law; or
            (2) have been indicted for war crimes or crimes 
        against humanity committed during the period beginning 
        March 23, 1933 and ending on May 8, 1945 under the 
        direction of, or in association with--
                    (A) the Nazi government of Germany;
                    (B) any government in any area occupied by 
                the military forces of the Nazi government of 
                Germany;
                    (C) any government which was established 
                with the assistance or cooperation of the Nazi 
                government; or
                    (D) any government which was an ally of the 
                Nazi government of Germany.


                   limitation on assistance for haiti


    Sec. 562. (a) Limitation.--None of the funds appropriated 
or otherwise made available by this Act may be provided to the 
Government of Haiti unless the President reports to Congress 
that the Government of Haiti--
            (1) is conducting thorough investigations of 
        extrajudicial and political killings;
            (2) is cooperating with United States authorities 
        in the investigations of political and extrajudicial 
        killings;
            (3) has substantially completed privatization of 
        (or placed under long-term private management or 
        concession) at least three major public enterprises; 
        and
            (4) has taken action to remove from the Haitian 
        National Police, national palace and residential guard, 
        ministerial guard, and any other public security entity 
        of Haiti those individuals who are credibly alleged to 
        have engaged in or conspired to conceal gross 
        violations of internationally recognized human rights.
    (b) Exceptions.--The limitation in subsection (a) does not 
apply to the provision of humanitarian, electoral, counter-
narcotics, or law enforcement assistance.
    (c) Waiver.--The President may waive the requirements of 
this section on a semiannual basis if the President determines 
and certifies to the appropriate committees of Congress that 
such waiver is in the national interest of the United States.
    (d) Parastatals Defined.--As used in this section, the term 
``parastatal'' means a government-owned enterprise.


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


    Sec. 563. (a) Foreign Aid Reporting Requirement.--In 
addition to the voting practices of a foreign country, the 
report required to be submitted to Congress under section 
406(a) of the Foreign Relations Authorization Act, fiscal years 
1990 and 1991 (22 U.S.C. 2414a), shall include a side-by-side 
comparison of individual countries' overall support for the 
United States at the United Nations and the amount of United 
States assistance provided to such country in fiscal year 1997.
    (b) United States Assistance.--For purposes of this 
section, the term ``United States assistance'' has the meaning 
given the term in section 481(e)(4) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2291(e)(4)).


   restrictions on voluntary contributions to united nations agencies


    Sec. 564. (a) Prohibition on Voluntary Contributions for 
the United Nations.--None of the funds appropriated or 
otherwise made available by this Act may be made available to 
pay any voluntary contribution of the United States to the 
United Nations (including the United Nations Development 
Program) if the United Nations implements or imposes any 
taxation on any United States persons.
    (b) Certification Required for Disbursement of Funds.--None 
of the funds appropriated or otherwise made available under 
this Act may be made available to pay any voluntary 
contribution of the United States to the United Nations 
(including the United Nations Development Program) unless the 
President certifies to the Congress 15 days in advance of such 
payment that the United Nations is not engaged in any effort to 
implement or impose any taxation on United States persons in 
order to raise revenue for the United Nations or any of its 
specialized agencies.
    (c) Definitions.--As used in this section the term ``United 
States person'' refers to--
            (1) a natural person who is a citizen or national 
        of the United States; or
            (2) a corporation, partnership, or other legal 
        entity organized under the United States or any State, 
        territory, possession, or district of the United 
        States.


                          assistance to turkey


    Sec. 565. (a) Not more than $40,000,000 of the funds 
appropriated in this Act under the heading ``Economic Support 
Fund'' may be made available for Turkey.
    (b) Of the funds made available under the heading 
``Economic Support Fund'' for Turkey, not less than fifty 
percent of these funds shall be made available for the purpose 
of supporting private nongovernmental organizations engaged in 
strengthening democratic institutions in Turkey, providing 
economic assistance for individuals and communities affected by 
civil unrest, and supporting and promoting peaceful solutions 
and economic development which will contribute to the 
settlement of regional problems in Turkey.


         limitation on assistance to the palestinian authority


    Sec. 566. (a) Prohibition of Funds.--None of the funds 
appropriated by this Act to carry out the provisions of chapter 
4 of part II of the Foreign Assistance Act of 1961 may be 
obligated or expended with respect to providing funds to the 
Palestinian Authority.
    (b) Waiver.--The prohibition included in subsection (a) 
shall not apply if the President certifies in writing to the 
Speaker of the House of Representatives and the President pro 
tempore of the Senate that waiving such prohibition is 
important to the national security interests of the United 
States.
    (c) Period of Application of Waiver.--Any waiver pursuant 
to subsection (b) shall be effective for no more than a period 
of six months at a time and shall not apply beyond twelve 
months after enactment of this Act.


         limitation on assistance to the government of croatia


    Sec. 567. None of the funds appropriated or otherwise made 
available by title II of this Act may be made available to the 
Government of Croatia to relocate the remains of Croatian 
Ustashe soldiers, at the site of the World War II concentration 
camp at Jasenovac, Croatia.


                           burma labor report


    Sec. 568. Not later than one hundred twenty days after 
enactment of this Act, the Secretary of Labor in consultation 
with the Secretary of State shall provide to the Committees on 
Appropriations a report addressing labor practices in Burma.


                                 haiti


    Sec. 569. The Government of Haiti shall be eligible to 
purchase defense articles and services under the Arms Export 
Control Act (22 U.S.C. 2751 et seq.), for the civilian-led 
Haitian National Police and Coast Guard: Provided, That the 
authority provided by this section shall be subject to the 
regular notification procedures of the Committees on 
Appropriations.


              limitation on assistance to security forces


    Sec. 570. None of the funds made available by this Act may 
be provided to any unit of the security forces of a foreign 
country if the Secretary of State has credible evidence that 
such unit has committed gross violations of human rights, 
unless the Secretary determines and reports to the Committees 
on Appropriations that the government of such country is taking 
effective measures to bring the responsible members of the 
security forces unit to justice: Provided, That nothing in this 
section shall be construed to withhold funds made available by 
this Act from any unit of the security forces of a foreign 
country not credibly alleged to be involved in gross violations 
of human rights: Provided further, That in the event that funds 
are withheld from any unit pursuant to this section, the 
Secretary of State shall promptly inform the foreign government 
of the basis for such action and shall, to the maximum extent 
practicable, assist the foreign government in taking effective 
measures to bring the responsible members of the security 
forces to justice so funds to the unit may be resumed.


      limitations on transfer of military equipment to east timor


    Sec. 571. In any agreement for the sale, transfer, or 
licensing of any lethal equipment or helicopter for Indonesia 
entered into by the United States pursuant to the authority of 
this Act or any other Act, the agreement shall state that the 
United States expects that the items will not be used in East 
Timor: Provided, That nothing in this section shall be 
construed to limit Indonesia's inherent right to legitimate 
national self-defense as recognized under the United Nations 
Charter and international law.


                        transparency of budgets


    Sec. 572. Section 576(a)(1) of the Foreign Operations, 
Export Financing, and Related Programs Appropriations Act, 
1997, as contained in Public Law 104-208, is amended to read as 
follows:
            ``(1) does not have in place a functioning system 
        for reporting to civilian authorities audits of 
        receipts and expenditures that fund activities of the 
        armed forces and security forces;''.
    Section 576(a)(2) of the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1997, as 
contained in Public Law 104-208, is amended to read as follows:
            ``(2) has not provided to the institution 
        information about the audit process requested by the 
        institution.''.


restrictions on assistance to countries providing sanctuary to indicted 
                             war criminals


    Sec. 573. (a) Bilateral Assistance.--None of the funds made 
available by this or any prior Act making appropriations for 
foreign operations, export financing and related programs, may 
be provided for any country, entity or canton described in 
subsection (d).
    (b) Multilateral Assistance.--
            (1) Prohibition.--The Secretary of the Treasury 
        shall instruct the United States executive directors of 
        the international financial institutions to work in 
        opposition to, and vote against, any extension by such 
        institutions of any financial or technical assistance 
        or grants of any kind to any country or entity 
        described in subsection (d).
            (2) Notification.--Not less than 15 days before any 
        vote in an international financial institution 
        regarding the extension of financial or technical 
        assistance or grants to any country or entity described 
        in subsection (d), the Secretary of the Treasury, in 
        consultation with the Secretary of State, shall provide 
        to the Committee on Appropriations and the Committee on 
        Foreign Relations of the Senate and the Committee on 
        Appropriations and the Committee on Banking and 
        Financial Services of the House of Representatives a 
        written justification for the proposed assistance, 
        including an explanation of the U.S. position regarding 
        any such vote, as well as a description of the location 
        of the proposed assistance by municipality, its 
        purpose, and its intended beneficiaries.
            (3) Definition.--The term ``international financial 
        institution'' includes the International Monetary Fund, 
        the International Bank for Reconstruction and 
        Development, the International Development Association, 
        the International Finance Corporation, the Multilateral 
        Investment Guaranty Agency, and the European Bank for 
        Reconstruction and Development.
    (c) Exceptions.--
            (1) In general.--Subject to paragraph (2), 
        subsections (a) and (b) shall not apply to the 
        provision of--
                    (A) humanitarian assistance;
                    (B) democratization assistance;
                    (C) assistance for cross border physical 
                infrastructure projects involving activities in 
                both a sanctioned country, entity, or canton 
                and a nonsanctioned contiguous country, entity, 
                or canton, if the project is primarily located 
                in and primarily benefits the nonsanctioned 
                country, entity, or canton and if the portion 
                of the project located in the sanctioned 
                country, entity, or canton is necessary only to 
                complete the project;
                    (D) small-scale assistance projects or 
                activities requested by U.S. armed forces that 
                promote good relations between such forces and 
                the officials and citizens of the areas in the 
                U.S. SFOR sector of Bosnia;
                    (E) implementation of the Brcko Arbitral 
                Decision;
                    (F) lending by the international financial 
                institutions to a country or entity to support 
                common monetary and fiscal policies at the 
                national level as contemplated by the Dayton 
                Agreement; or
                    (G) direct lending to a non-sanctioned 
                entity, or lending passed on by the national 
                government to a non-sanctioned entity.
            (2) Further limitations.--Notwithstanding paragraph 
        (1)--
                    (A) no assistance may be made available by 
                this Act, or any prior Act making 
                appropriations for foreign operations, export 
                financing and related programs, in any country, 
                entity, or canton described in subsection (d), 
                for a program, project, or activity in which a 
                publicly indicted war criminal is known to have 
                any financial or material interest; and
                    (B) no assistance (other than emergency 
                foods or medical assistance or demining 
                assistance) may be made available by this Act, 
                or any prior Act making appropriations for 
                foreign operations, export financing and 
                related programs for any program, project, or 
                activity in a community within any country, 
                entity or canton described in subsection (d) if 
                competent authorities within that community are 
                not complying with the provisions of Article IX 
                and Annex 4, Article II, paragraph 8 of the 
                Dayton Agreement relating to war crimes and the 
                Tribunal.
    (d) Sanctioned Country, Entity, or Canton.--A sanctioned 
country, entity, or canton described in this section is one 
whose competent authorities have failed, as determined by the 
Secretary of State, to take necessary and significant steps to 
apprehend and transfer to the Tribunal all persons who have 
been publicly indicted by the Tribunal.
    (e) Waiver.--
            (1) In general.--The Secretary of State may waive 
        the application of subsection (a) or subsection (b) 
        with respect to specified bilateral programs or 
        international financial institution projects or 
        programs in a sanctioned country, entity, or canton 
        upon providing a written determination to the Committee 
        on Appropriations and the Committee on Foreign 
        Relations of the Senate and the Committee on 
        Appropriations and the Committee on International 
        Relations of the House of Representativesthat such 
assistance directly supports the implementation of the Dayton Agreement 
and its Annexes, which include the obligation to apprehend and transfer 
indicted war criminals to the Tribunal.
            (2) Report.--Not later than 15 days after the date 
        of any written determination under paragraph (e)(1), 
        the Secretary of State shall submit a report to the 
        Committee on Appropriations and the Committee on 
        Foreign Relations of the Senate and the Committee on 
        Appropriations and the Committee on International 
        Relations of the House of Representatives regarding the 
        status of efforts to secure the voluntary surrender or 
        apprehension and transfer of persons indicted by the 
        Tribunal, in accordance with the Dayton Agreement, and 
        outlining obstacles to achieving this goal.
            (3) Assistance programs and projects affected.--Any 
        waiver made pursuant to this subsection shall be 
        effective only with respect to a specified bilateral 
        program or multilateral assistance project or program 
        identified in the determination of the Secretary of 
        State to Congress.
    (f) Termination of Sanctions.--The sanctions imposed 
pursuant to subsections (a) and (b) with respect to a country 
or entity shall cease to apply only if the Secretary of State 
determines and certifies to Congress that the authorities of 
that country, entity, or canton have apprehended and 
transferred to the Tribunal all persons who have been publicly 
indicted by the Tribunal.
    (g) Definitions.--As used in this section--
            (1) Country.--The term ``country'' means Bosnia-
        Herzegovina, Croatia, and Serbia-Montenegro (Federal 
        Republic of Yugoslavia).
            (2) Entity.--The term ``entity'' refers to the 
        Federation of Bosnia and Herzegovina and the Republika 
        Srpska.
            (3) Canton.--The term ``canton'' means the 
        administrative units in Bosnia and Herzegovina.
            (4) Dayton agreement.--The term ``Dayton 
        Agreement'' means the General Framework Agreement for 
        Peace in Bosnia and Herzegovina, together with annexes 
        relating thereto, done at Dayton, November 10 through 
        16, 1995.
            (5) Tribunal.--The term ``Tribunal'' means the 
        International Criminal Tribunal for the Former 
        Yugoslavia.
    (h) Role of Human Rights Organizations and Government 
Agencies.--In carrying out this subsection, the Secretary of 
State, the Administrator of the Agency for International 
Development, and the executivedirectors of the international 
financial institutions shall consult with representatives of human 
rights organizations and all government agencies with relevant 
information to help prevent publicly indicted war criminals from 
benefitting from any financial or technical assistance or grants 
provided to any country or entity described in subsection (d).


              extension of certain adjudication provisions


    Sec. 574. The Foreign Operations, Export Financing, and 
Related Programs Appropriations Act, 1990 (Public Law 101-167) 
is amended--
            (1) in section 599D (8 U.S.C. 1157 note)--
                    (A) in subsection (b)(3), by striking ``and 
                1997'' and inserting ``1997, and 1998''; and
                    (B) in subsection (e), by striking 
                ``October 1, 1997'' each place it appears and 
                inserting ``October 1, 1998''; and
            (2) in section 599E (8 U.S.C. 1255 note) in 
        subsection (b)(2), by striking ``September 30, 1997'' 
        and inserting ``September 30, 1998''.


additional requirements relating to stockpiling of defense articles for 
                           foreign countries


    Sec. 575. (a) Value of Additions to Stockpiles.--Section 
514(b)(2)(A) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321h(b)(2)(A)) is amended by inserting before the period at 
the end the following: ``and $60,000,000 for fiscal year 
1998''.
    (b) Requirements Relating to the Republic of Korea and 
Thailand.--Section 514(b)(2)(B) of such Act (22 U.S.C. 
2321h(b)(2)(B)) is amended by adding at the end the following: 
``Of the amount specified in subparagraph (A) for fiscal year 
1998, not more than $40,000,000 may be made available for 
stockpiles in the Republic of Korea and not more than 
$20,000,000 may be made available for stockpiles in 
Thailand.''.


       delivery of drawdown by commercial transportation services


    Sec. 576. Section 506 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2318) is amended--
            (1) in subsection (b)(2), by striking the period 
        and inserting the following: ``, including providing 
        the Congress with a report detailing all defense 
        articles, defense services, and military education and 
        training delivered to the recipient country or 
        international organization upon delivery of such 
        articles or upon completion of such services or 
        education and training. Such report shall also include 
        whether any savings were realized by utilizing 
        commercial transport services rather than acquiring 
        those services from United States Government transport 
        assets.'';
            (2) by redesignating subsection (c) as subsection 
        (d); and
            (3) by inserting after subsection (b) the 
        following:
    ``(c) For the purposes of any provision of law that 
authorizes the drawdown of defense or other articles or 
commodities, or defense or other services from an agency of the 
United States Government, such drawdown may include the supply 
of commercial transportation and related services that are 
acquired by contract for the purposes of the drawdown in 
question if the cost to acquire such commercial transportation 
and related services is less than the cost to the United States 
Government of providing such services from existing agency 
assets.''.


 to prohibit foreign assistance to the government of russia should it 
  implement laws which would discriminate against minority religious 
                    faiths in the russian federation


    Sec. 577. (a) None of the funds appropriated under this Act 
may be made available for the Government of the Russian 
Federation unless within 30 days of the date this section 
becomes effective the President determines and certifies in 
writing to the Committees on Appropriations and the Committee 
on Foreign Relations of the Senate and the Committee on 
International Relations of the House of Representatives that 
the Government of the Russian Federation has implemented no 
statute, executive order, regulation or similar government 
action that would discriminate, or would have as its principal 
effect discrimination, against religious groups or religious 
communities in the Russian Federation in violation of accepted 
international agreements on human rights and religious freedoms 
to which the Russian Federation is a party.
    (b) This section shall become effective one hundred fifty 
days after the enactment of this Act.


 u.s. policy regarding support for countries of the south caucasus and 
                              central asia


    Sec. 578. (a) Findings.--Congress makes the following 
findings:
            (1) The ancient Silk Road, once the economic 
        lifeline of Central Asia and the South Caucasus, 
        traversed much of the territory now within the 
        countries of Armenia, Azerbaijan, Georgia, Kazakstan, 
        Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.
            (2) Economic interdependence spurred mutual 
        cooperation among the peoples along the Silk Road and 
        restoration of the historic relationships and economic 
        ties between those peoples is an important element of 
        ensuring their sovereignty as well as the success of 
        democratic and market reforms.
            (3) The development of strong political and 
        economic ties between countries of the South Caucasus 
        and Central Asia and the West will foster stability in 
        the region.
            (4) The development of open market economies and 
        open democratic systems in the countries of the South 
        Caucasus and Central Asia will provide positive 
        incentives for international private investment, 
        increased trade, and other forms of commercial 
        interactions with the rest of the world.
            (5) The Caspian Sea Basin, overlapping the 
        territory of the countries of the South Caucasus and 
        Central Asia, contains proven oil and gas reserves that 
        may exceed $4,000,000,000,000 in value.
            (6) The region of the South Caucasus and Central 
        Asia will produce oil and gas in sufficient quantities 
        to reduce the dependence of the United States on energy 
        from the volatile Persian Gulf region.
            (7) United States foreign policy and international 
        assistance should be narrowly targeted to support the 
        economic and political independence of the countries of 
        the South Caucasus and Central Asia.
    (b) General.--The policy of the United States in the 
countries of the South Caucasus and Central Asia should be--
            (1) to promote sovereignty and independence with 
        democratic government;
            (2) to assist actively in the resolution of 
        regional conflicts;
            (3) to promote friendly relations and economic 
        cooperation;
            (4) to help promote market-oriented principles and 
        practices;
            (5) to assist in the development of infrastructure 
        necessary for communications, transportation, and 
        energy and trade on an East-West axis in order to build 
        strong international relations and commerce between 
        those countries and the stable, democratic, and market-
        oriented countries of the Euro-Atlantic Community; and
            (6) to support United States business interests and 
        investments in the region.
    (c) Definition.--In this section, the term ``countries of 
the South Caucasus and Central Asia'' means Armenia, 
Azerbaijan, Georgia, Kazakstan, Kyrgystan, Tajikistan, 
Turkmenistan, and Uzbekistan.


                                pakistan


    Sec. 579. (a) OPIC.--Section 239(f) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2199(f)) is amended by 
inserting ``, or Pakistan'' after ``China''.
    (b) Trade and Development.--It is the sense of Congress 
that the Director of the Trade and Development Agency should 
use funds made available to carry out the provisions of section 
661 of the Foreign Assistance Act of 1961 (22 U.S.C. 2421) to 
promote United States exports to Pakistan.


requirements for the reporting to congress of the costs to the federal 
government associated with the proposed agreement to reduce greenhouse 
                             gas emissions


    Sec. 580. The President shall provide to the Congress a 
detailed account of all Federal agency obligations and 
expenditures for climate change programs and activities, 
domestic and international, for fiscal year 1997, planned 
obligations for such activities in fiscal year 1998, and any 
plan for programs thereafter in the context of negotiations to 
amend the Framework Convention on Climate Change (FCCC) to be 
provided to the appropriate congressional committees no later 
than November 15, 1997.


           authority to issue insurance and extend financing


    Sec. 581. (a) In General.--Section 235(a) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2195(a)) is amended--
            (1) by striking paragraphs (1) and (2)(A) and 
        inserting the following:
            ``(1) Insurance and financing.--(A) The maximum 
        contingent liability outstanding at any one time 
        pursuant to insurance issued under section 234(a), and 
        the amount of financing issued under sections 234 (b) 
        and (c), shall not exceed in the aggregate 
        $29,000,000,000.'';
            (2) by redesignating paragraph (3) as paragraph 
        (2); and
            (3) by amending paragraph (2) (as so redesignated) 
        by striking ``September 30, 1997'' and inserting 
        ``September 30, 1999''.
    (b) Conforming Amendment.--Paragraph (2) of section 235(a) 
of that Act (22 U.S.C. 2195(a)), as redesignated by subsection 
(a), is further amended by striking ``(a) and (b)'' and 
inserting ``(a), (b), and (c)''.


withholding assistance to countries violating united nations sanctions 
                             against libya


    Sec. 582. (a) Withholding of Assistance.--Except as 
provided in subsection (b), whenever the President determines 
and certifies to Congress that the government of any country is 
violating any sanction against Libya imposed pursuant to United 
Nations Security Council Resolution 731, 748, or 883, then not 
less than 5 percent of the funds allocated for the country 
under section 653(a) of the Foreign Assistance Act of 1961 out 
of appropriations in this Act shall be withheld from obligation 
and expenditure for that country.
    (b) Exception.--The requirement to withhold funds under 
subsection (a) shall not apply to funds appropriated in this 
Act for allocation under section 653(a) of the Foreign 
Assistance Act of 1961 for development assistance or for 
humanitarian assistance.
    (c) Waiver.--Funds may be provided for a country without 
regard to subsection (a) if the President determines that to do 
so is in the national security interest of the United States.


                         war crimes prosecution


    Sec. 583. Section 2401 of title 18, United States Code 
(Public Law 104-192; the War Crimes Act of 1996) is amended as 
follows--
            (1) in subsection (a), by striking ``grave breach 
        of the Geneva Conventions'' and inserting ``war 
        crime'';
            (2) in subsection (b), by striking ``breach'' each 
        place it appears and inserting ``war crime''; and
            (3) so that subsection (c) reads as follows:
    ``(c) Definition.--As used in this section the term `war 
crime' means any conduct--
            ``(1) defined as a grave breach in any of the 
        international conventions signed at Geneva 12 
August1949, or any protocol to such convention to which the United 
States is a party;
            ``(2) prohibited by Articles 23, 25, 27, or 28 of 
        the Annex to the Hague Convention IV, Respecting the 
        Laws and Customs of War on Land, signed 18 October 
        1907;
            ``(3) which constitutes a violation of common 
        Article 3 of the international conventions signed at 
        Geneva 12 August 1949, or any protocol to such 
        convention to which the United States is a party and 
        which deals with non-international armed conflict; or
            ``(4) of a person who, in relation to an armed 
        conflict and contrary to the provisions of the Protocol 
        on Prohibitions or Restrictions on the Use of Mines, 
        Booby-Traps and Other Devices as amended at Geneva on 3 
        May 1996 (Protocol II as amended on 3 May 1996), when 
        the United States is a party to such Protocol, 
        willfully kills or causes serious injury to 
        civilians.''.


   international military education and training programs for latin 
                                america


    Sec. 584. (a) Expanded IMET.--The Secretary of Defense, in 
consultation with the Secretary of State, should make every 
effort to ensure that approximately 30 percent of the funds 
appropriated in this Act for ``International Military Education 
and Training'' for the cost of Latin American participants in 
IMET programs will be disbursed for the purpose of supporting 
enrollment of such participants in expanded IMET courses.
    (b) Civilian Participation.--The Secretary of State, in 
consultation with the Secretary of Defense, should identify 
sufficient numbers of qualified, non-military personnel from 
countries in Latin America so that approximately 25 percent of 
the total number of individuals from Latin American countries 
attending United States supported IMET programs and the Center 
for Hemispheric Defense Studies at the National Defense 
University are civilians.
    (c) Report.--Not later than twelve months after the date of 
enactment of this Act, the Secretary of Defense, in 
consultation with the Secretary of State, shall report in 
writing to the appropriate committees of the Congress on the 
progress made to improve military training of Latin American 
participants in the areas of human rights and civilian control 
of the military. The Secretary shall include in the report 
plans for implementing additional expanded IMET programs for 
Latin America during the next three fiscal years.


       aid to the government of the democratic republic of congo


    Sec. 585. None of the funds appropriated or otherwise made 
available by this Act may be provided to thecentral Government 
of the Democratic Republic of Congo until such time as the President 
reports in writing to the Congress that the central Government of the 
Democratic Republic of Congo is cooperating fully with investigators 
from the United Nations in accounting for human rights violations 
committed in the Democratic Republic of Congo or adjacent countries.


                     assistance for the middle east


    Sec. 586. Of the funds appropriated by this Act under the 
headings ``Economic Support Fund'', ``Foreign Military 
Financing'', ``International Military Education and Training'', 
``Peacekeeping Operations'', for refugees resettling in Israel 
under the heading ``Migration and Refugee Assistance'', and for 
assistance for Israel to carry out provisions of chapter 8 of 
part II of the Foreign Assistance Act of 1961 under the heading 
``Nonproliferation, Anti-Terrorism, Demining, and Related 
Programs'', not more than a total of $5,402,850,000 may be made 
available for Israel, Egypt, Jordan, Lebanon, the West Bank and 
Gaza, the Israel-Lebanon Monitoring Group, the Multinational 
Force and Observers, the Middle East Regional Democracy Fund, 
Middle East Regional Cooperation, and Middle East Multilateral 
Working Groups: Provided, That any funds that were appropriated 
under such headings in prior fiscal years and that were at the 
time of enactment of this Act obligated or allocated for other 
recipients may not during fiscal year 1998 be made available 
for activities that, if funded under this Act, would be 
required to count against this ceiling: Provided further, That 
funds may be made available notwithstanding the requirements of 
this section if the President determines and certifies to the 
Committees on Appropriations that it is important to the 
national security interest of the United States to do so and 
any such additional funds shall only be provided through the 
regular notification procedures of the Committees on 
Appropriations.


                              agriculture


    Sec. 587. The first proviso of subsection (k) under the 
heading ``Assistance for the New Independent States of the 
Former Soviet Union'' in the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1997, as 
contained in Public Law 104-208, is amended by striking ``not 
less than'' and inserting in lieu thereof ``up to''.


                      enterprise fund restrictions


    Sec. 588. Section 201(l) of the Support for East European 
Democracy Act (22 U.S.C. 5421(l)) is amended to read as 
follows:
    ``(l) Limitation on Payments to Enterprise Fund 
Personnel.--
            ``(1) No part of the funds of an Enterprise Fund 
        shall inure to the benefit of any board member, 
        officer, or employee of such Enterprise Fund, except as 
        salary or reasonable compensation for services subject 
        to paragraph (2).
            ``(2) An Enterprise Fund shall not pay compensation 
        for services to--
                    ``(A) any board member of the Enterprise 
                Fund, except for services as a board member; or
                    ``(B) any firm, association, or entity in 
                which a board member of the Enterprise Fund 
                serves as partner, director, officer, or 
                employee.
            ``(3) Nothing in paragraph (2) shall preclude 
        payment for services performed before the date of 
        enactment of this subsection nor for arrangements 
        approved by the grantor and notified in writing to the 
        Committees on Appropriations.''.


                                cambodia


    Sec. 589. The Secretary of the Treasury should instruct the 
United States Executive Directors of the international 
financial institutions to use the voice and vote of the United 
States to oppose loans to the Government of Cambodia, except 
loans to support basic human needs.


                 export financing transfer authorities


    Sec. 590. Not to exceed 5 percent of any appropriation 
other than for administrative expenses made available for 
fiscal year 1998 for programs under title I of this Actmay be 
transferred between such appropriations for use for any of the 
purposes, programs and activities for which the funds in such receiving 
account may be used, but no such appropriation, except as otherwise 
specifically provided, shall be increased by more than 25 percent by 
any such transfer: Provided, That the exercise of such authority shall 
be subject to the regular notification procedures of the Committees on 
Appropriations.


                      development credit authority


    Sec. 591. For the cost, as defined in section 502 of the 
Congressional Budget Act of 1974, of direct loans and loan 
guarantees in support of the development objectives of the 
Foreign Assistance Act of 1961 (FAA), up to $7,500,000, which 
amount may be derived by transfer from funds appropriated by 
this Act to carry out part I of the Foreign Assistance Act of 
1961 and funds appropriated by this Act under the heading 
``Assistance for Eastern Europe and the Baltic States'', to 
remain available until expended: Provided, That up to $500,000 
of the funds appropriated by this Act under the heading 
``Operating Expenses of the Agency for International 
Development'' may be made available for administrative expenses 
to carry out such programs: Provided further, That the 
provisions of section 107A(d) (relating to general provisions 
applicable to development credit authority) of the Foreign 
Assistance Act of 1961, as added by section 306 of H.R. 1486 as 
reported by the House Committee on International Relations on 
May 9, 1997, shall be applicable to direct loans and loan 
guarantees provided under this paragraph: Provided further, 
That direct loans or loan guarantees under this paragraph may 
not be provided until the Director of the Office of Management 
and Budget has certified to the Committees on Appropriations 
that the Agency for International Development has established a 
credit management system capable of effectively managing the 
credit programs funded under this heading, including that such 
system: (1) can provide accurate and timely provision of loan 
and loan guarantee data; (2) contains information control 
systems for loan and loan guarantee data; (3) is adequately 
staffed; and (4) contains appropriate review and monitoring 
procedures.


                 authorization for population planning


    Sec. 592. (a) Not to exceed $385,000,000 of the funds 
appropriated in title II of this Act may be available for 
population planning activities or other population assistance.
    (b) Such funds may be apportioned only on a monthly basis, 
and such monthly apportionments may not exceed 8.34 percent of 
the total available for such activities.
    This Act may be cited as the ``Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1998''.
    And the Senate agree to the same.
                                   Sonny Callahan,
                                   John Edward Porter,
                                   Ron Packard,
                                   Joe Knollenberg,
                                   Mike Forbes,
                                   Jack Kingston,
                                   R.P. Frelinghuysen,
                                   Bob Livingston,
                                   Nancy Pelosi,
                                   Sidney R. Yates,
                                   Nita M. Lowey,
                                   Esteban E. Torres,
                                   David Obey,
                                 Managers on the Part of the House.
                                   Mitch McConnell,
                                   Arlen Specter,
                                   Judd Gregg,
                                   Richard Shelby,
                                   R.F. Bennett,
                                   Ben Nighthorse Campbell,
                                   Ted Stevens,
                                   Thad Cochran,
                                   Patrick J. Leahy,
                                   Daniel K. Inouye,
                                   Frank R. Lautenberg,
                                   Tom Harkin,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and Senate at the 
conference on the disagreeing votes of the two Houses on the 
amendment of the Senate to the bill (H.R. 2159) making 
appropriations for foreign operations, export financing, and 
related programs for the fiscal year ending September 30, 1998, 
submit the following joint statement to the House and Senate in 
explanation of the effect of the action agreed upon by the 
managers and recommended in the accompanying conference report:

               TITLE I--EXPORT AND INVESTMENT ASSISTANCE

     Export-Import Bank of the United States Subsidy Appropriation

      The conference agreement appropriates $683,000,000 for 
the subsidy appropriation of the Export-Import Bank instead of 
$632,000,000 as proposed by the House and $700,000,000 as 
proposed by the Senate. The appropriations are available for 
four years, and the level provided anticipates significant 
participation by the Eximbank in the Partnership for Freedom.
      The conferees note that the Administration requested 
authority to transfer funds from ``Assistance for the New 
Independent States of the Former Soviet Union'' to this 
account, and that the Senate had provided transfer authority of 
up to $22,000,000 for that purpose. The conference agreement, 
instead, provides significant funding above the request for 
Eximbank, without reserving any specific amount for the New 
Independent States. The conferees expect that Eximbank will 
coordinate its activity in the region with the Special Advisor 
to the President and the Secretary of State on Assistance to 
the New Independent States.
      Authority is provided as proposed by the Senate for up to 
$50,000,000 to be used for tied aid grants, and funds 
designated in this or prior Acts for tied aid grants may be 
used for other purposes, subject to notification.
      A one year extension of the Export-Import Bank's basic 
authority is included in title V.

    Export-Import Bank of the United States Administrative Expenses

      The conference agreement appropriates $48,614,000 for 
administrative expenses of the Export-Import Bank as proposed 
by the House instead of $46,614,000 as proposed by the Senate.

        Overseas Private Investment Corporation Program Account

      The conference agreement appropriates $60,000,000 for 
program expenses of the Overseas Private Investment Corporation 
(OPIC) as proposed by the Senate. The House bill contained no 
provision on this matter.
      The conference agreement also extends the authorization 
for OPIC for two years, in section 581, and allows the agency 
to combine its existing statutory ceilings on financing and 
insurance within an overall credit ceiling of $29,000,000,000 
as proposed by the Senate.
      The managers are concerned about the viability of 
projects supported by OPIC in Gaza, and direct OPIC to move 
expeditiously and report to the Committees not later than 
December 15, 1997 on its efforts to resolve claims and 
defaulted investments that the Executive branch encouraged to 
locate in Gaza.

                      Trade and Development Agency

      The conference agreement appropriates $41,500,000 for the 
Trade and Development Agency instead of $43,000,000 as proposed 
by the Senate and $40,000,000 as proposed by the House.

                TITLE II--BILATERAL ECONOMIC ASSISTANCE

                  Agency for International Development

                Child Survival and Disease Programs Fund

      The conference agreement appropriates $650,000,000 as 
proposed by the House. The Senate bill contained no provision 
on this matter. The managers agree with the House report 
language regarding the use of the funds appropriated under this 
heading, including $100,000,000 for a grant to UNICEF and 
$25,000,000 for polio eradication. The grant for UNICEF does 
not preclude AID from providing additional funding for specific 
UNICEF projects as may be applicable.
      The managers also concur with House and Senate report 
language on infectious diseases. An increase of $50,000,000 is 
to be made available from funds under this heading to 
strengthen global surveillance and control of infectious 
diseases as proposed by the House instead of an increase of 
$30,000,000 as proposed by the Senate in bill language under 
``Development Assistance''.
      The total amount available for infectious diseases in 
fiscal year 1998 should be $207,000,000, consisting of 
$121,000,000 for HIV/AIDS, $50,000,000 for this new initiative, 
and the balance from funds to combat infectious diseases 
derived from sources other than funding for Child Survival 
activities.
      In implementing programs, projects, and activities to 
combat infectious diseases, the conferees agree with the Senate 
report language and expect AID to consult closely with the 
Appropriations Committees, the National Institute of Allergy 
and Infectious Diseases of the National Institutes of Health 
(NIH), the Centers for Disease Control and Prevention (CDC), 
and other relevant agencies involved in international health 
issues, including the World Health Organization (WHO).
      The funding increase should be used for programs, 
projects, and activities for the prevention and control of such 
infectious diseases as tuberculosis, malaria, yellow fever, 
acute respiratory infections, and diseases that are resistant 
to antimicrobial drugs.
      The conferees strongly encourage support for the Global 
Tuberculosis Initiative, which is to be coordinated by the 
World Health Organization (WHO) with support and input from the 
U.S. Centers for Disease Control and the Agency for 
International Development. Funds should be used in support of 
the initiative to provide assistance in Eastern Europe and 
Russia and other WHO identified ``hot zones''--Mexico, Vietnam, 
the Philippines and Central America--for implementation of the 
Directly Observed Treatment Strategy (DOTS); as bridge funds to 
purchase fixed-dose combination anti-TB drugs; to strengthen 
monitoring and surveillance of tuberculosis and drug-resistant 
tuberculosis; to provide technical support tolimit drug-
resistant tuberculosis hot zones; and to enhance information 
dissemination, education, and research programs. In addition, the 
conferees support the plan for a regional tuberculosis control 
initiative proposed by the Gorgas Memorial Institute and recommend that 
$2,000,000 be made available for this activity in Latin America and 
Southeast Asia. Finally, the conferees urge AID to consult closely with 
any nongovernmental organizations (NGO's) with demonstrated expertise 
and long-standing experience in international tuberculosis control as 
funds in the area of TB control are obligated.
      The conferees intend that a total of $121,000,000 shall 
be made available for both bilateral and multilateral HIV/AIDS 
prevention and control programs. The conferees recommend that 
funding through nongovernmental and private voluntary 
organizations operating at the community level be maximized, 
and that U.S. funding for UNAIDS be maintained. The conferees 
expect that the United States will continue to build upon its 
leadership role in combating this pandemic.
      The conferees recommend that $98,000,000 be provided for 
basic education programs. The conferees support the use of 
basic education funds to address the educational needs of 
children who are in or have been subjected to situations of 
hazardous and exploitative labor.
      The conferees support the Senate report language 
regarding the International Foundation for Education and Self-
Help (IFESH).

                         Development Assistance

                     (including transfer of funds)

      The conference agreement appropriates $1,210,000,000 for 
``Development Assistance'' instead of $1,167,000,000 as 
proposed by the House and $1,358,093,020 as proposed by the 
Senate.
      The conference agreement includes language from the 
Senate amendment which inserts authority to obligate funds 
pursuant to title V of the International Security and 
Development Cooperation Act of 1980 (African Development 
Foundation), and section 401 of the Foreign Assistance Act of 
1969 (Inter-American Foundation) under this heading. The 
conference agreement provides authority apportioning directly 
up to $22,000,000 for the Inter-American Foundation and up to 
$14,000,000 for the African Development Foundation. The Senate 
provided allocations for these two foundations at levels of 
$20,000,000 and $11,500,000, respectively. The House bill had 
provided separate appropriations accounts for the foundations, 
together with authority to provide grants to the foundations 
under ``Development Assistance''.
      The conferees support the House report language regarding 
the funding levels for Latin America and the Caribbean and for 
sub-Saharan Africa. The conferees also note that sub-Saharan 
Africa is undergoing major transitions that require creative 
and non-traditional approaches to dealing with fundamental 
development issues.
      Institution-building and capacity-building are the most 
pressing problems that need to be addressed by AID programs in 
Africa. Therefore the conferees are concerned that large non-
project assistance programs (NPA), such as the one currently 
being funded for Malawi (which has received nearly $700,000,000 
in AID resources since 1962), could perpetuate aid 
dependencies. The conferees request that AID undertake a 
thorough review of such assistance programs to determine 
whether or not current AID strategies are consistent with 
building self-reliance, and to report to the Committees on 
Appropriations on the results of such review by March 1, 1998. 
In addition, the conferees request that AID include a summary 
of proposed NPA by country in the fiscal year 1999 budget 
request, including an indication for the reason such assistance 
is being proposed in lieu of assistance to build institutions 
and country-capacity and whether past NPA has resulted in 
higher economic growth and a decrease in development 
dependence.
      The conferees concur with the House report language 
encouraging AID to utilize funds made available for 
nongovernmental organizations in southern and eastern Sudan 
outside government control to include capacity building 
activities in addition to traditional disaster relief programs.
      The conferees agree with language in the House report 
that expresses concern over the decline in recent years of 
budgetary resources that have been made available for 
international agriculture development assistance. The decline 
of this important segment of U.S. assistance, together with the 
corresponding decline in the number of international 
agriculture experts at AID and the State Department, should be 
reversed. The conferees also strongly support funding for 
collaborative research support programs (CRSP's).
      The conference agreement also includes language allowing 
not to exceed $2,500,000 to be transferred to ``International 
Organizations and Programs'' for a contribution to the 
International Fund for Agricultural Development (IFAD). The 
Senate amendment contained similar language. The House bill 
contained no provision on this matter. The conferees note that 
IFAD has many years of experience in working with smallholder 
farmers, and in microenterprise development, to alleviate 
poverty and hunger among the rural poor. Many of AID's goals 
and program initiatives are similar to those of IFAD. The 
conferees encourage AID to examine how it could work more 
closely with IFAD.
      The conferees direct that not less than $500,000 shall be 
made available for support of the United States 
Telecommunications Training Institute, in accordance with 
information received from the Agency for International 
Development. This organization provides valuable communications 
and broadcast training to professionals around the world. The 
Senate amendment included bill language mandating that such 
funds be made available for this purpose. The House bill did 
not address this matter.
      The conference agreement does not contain Senate language 
requiring that not less than $15,000,000 shall be available 
only for the American Schools and Hospitals Abroad (ASHA) 
program. However, the managers direct the Agency for 
International Development to fully uphold its commitment to the 
Appropriations Committees to obligate at least $15,000,000 for 
the American Schools and Hospitals Abroad program in fiscal 
year 1998.
      The conference agreement recommends $14,000,000 for AID's 
Office of Women in Development, and the managers encourage AID 
to undertake the institutional changes needed to expand support 
for women in development and to provide appropriate support for 
the Girls' and Womens' Education Initiative.
      The conferees note the contribution of the Leahy War 
Victims Fund in assisting war victims in over a dozen countries 
since its inception in 1989. Recently, world attention has 
focused increasingly on the problem of landmines, and the need 
for additional funds for the care and rehabilitation, including 
social and economic reintegration, of landmine victims. 
Accordingly, the conferees recommend that up to $7,500,000 be 
made available for such activities.
      The conference agreement also includes Senate language to 
allow not to exceed $25,000 for oversight of assistance 
programs for displaced and orphaned children and victims of 
war.
      The conference agreement also deletes Senate language 
requiring that not less than 65 percent of the funds made 
available for family planning assistance shall be made 
available directly to the agency's central Office of 
Population. However, the managers strongly support AID's 
central population office, which plays a vital role in AID's 
efforts to stabilize global population growth rates.
      The managers agree with the Senate report language on 
microenterprise regarding poverty lending programs, including 
the allocation of $135,000,000 for such purposes.
      The managers strongly support the fertilizer-related 
research and development being conducted by the International 
Fertilizer Development Center (IFDC) and direct the 
Administrator of AID to make at least $3,000,000 available for 
the core grant to IFDC.
      The conference agreement prohibits funds from being made 
available for any activity in contravention to the Convention 
on International Trade in Endangered Species of Flora and Fauna 
(CITES).
      The conferees recognize the importance of commercial law 
reform in the Caribbean as an essential part of future business 
development and increased trade between the United States and 
the region, and strongly support the business facilitation 
activities undertaken by the Caribbean Law Institute.
      The conferees endorse the House report language on 
proposed cooperation between AID and the National Aeronautics 
and Space Administration, including the establishment of a 
collaboration with NASA's Global Hydrology and Climate Center.
      The conferees recognize that the volunteers of the 
International Executive Service Corps (IESC) promote the long-
term interests of the United States by creating new businesses, 
increasing employment, and raising living standards. Therefore 
the conferees strongly urge AID to provide IESC with grant 
funds at a level comparable with fiscal year 1997 to ensure the 
continued availability of their services worldwide, and an 
additional amount to enable the organization to renew 
activities in Latin America and the Caribbean.
      The conferees support the scholarship programs known as 
the Cooperative Association States for Scholarships (CASS) and 
expect AID to continue funding for this program at the same 
level provided in fiscal year 1997.
      The conferees also support the continuation of AID's 
programs in Yemen, which are helping that country make the 
transition to democracy.

                   Population, Development Assistance

      The conference agreement deletes Senate language 
proposing a separate appropriations account of $435,000,000 for 
development assistance population activities. The funding for 
such activities is provided as part of the ``Development 
Assistance'' account in the conference agreement.

                  Private and Voluntary Organizations

      The conference agreement includes language from the 
Senate amendment providing that funds appropriated under title 
II of this Act should be made available to private and 
voluntary organizations (PVO's) at a level which is at least 
equivalent to the level provided in fiscal year 1995. The House 
bill included similar language.

                                 Cyprus

      The conference agreement includes Senate language 
providing that not less than $15,000,000 of the funds 
appropriated under ``Development Assistance'' and ``Economic 
Support Fund'' be made available for Cyprus, to be used only 
for scholarships, administrative support, bicommunal projects, 
and measures aimed at reunification of the island. The House 
bill contained no provision on this matter.

                                 Burma

      The conference agreement includes a total of $5,000,000 
from ``Development Assistance'' and ``Economic Support Fund'' 
to support democracy and humanitarian programs in Burma. Such 
funds may be made available notwithstanding any other provision 
of law and are subject to notification. The Senate amendment 
specified the uses for the funds and the funding source was 
limited to ``Development Assistance''. The House bill contained 
no provision on this matter.
      The conferees have provided assistance to support 
activities designed to restore democracy in Burma and to 
provide humanitarian programs for Burmese exiles and refugees. 
The assistance has been provided to underscore U.S. support for 
Aung San Suu Kyi and her supporters.
      The conferees note strong concern about the severe 
restrictions imposed on Aung San Suu Kyi. Although not under 
formal arrest, she is unable to move about freely and visitors 
must be approved by the State Law and Order Restoration 
Council. As a result, family, friends, associates, journalists 
and advocates for restoring her to office have been denied 
access. In addition, she has drawn public attention to the 
continuation of a campaign of violence, intimidation and terror 
being waged against her party members with the goal of 
destroying the democratic opposition.
      The conferees expect that not less than $3,000,000 of the 
funds made available for Burma be provided to support democracy 
activities and $2,000,000 be provided to support humanitarian 
initiatives along Burma's borders. The conferees oppose any 
expenditure of funds in Burma.

                   Guatemala Clarification Commission

      The conference agreement does not include language from 
the Senate amendment providing that not less than $1,000,000 
shall be made available to support the Guatemala Clarification 
Commission. The House bill did not address this matter.
      The conferees support the provision of sufficient funds 
to enable the commission to complete its work, and urge the 
Department of State to closely monitor the commission's 
resource needs and to seek additional support from other 
donors.

                                cambodia

      The conference agreement includes language prohibiting 
funds for the Government of Cambodia, except for support for 
demining, humanitarian assistance, and elections. In addition, 
the conference agreement includes a provision similar to that 
in the Senate amendment requiring a report from the President 
on the results of the investigation of the Federal Bureau of 
Investigation into the bombing attack in Phnom Penh of March 
20, 1997.
      The House bill had two provisions on this matter; one 
would have prohibited funding directly to the Government of 
Cambodia, and one would have prohibited funding to the 
Government and funding through international financial 
institutions for Cambodia. The Senate amendment included a 
prohibition on funding for activities and programs in Cambodia 
except under certain conditions, and also made United States 
support for loans through international financial institutions 
dependent on similar conditions.
      Political violence in Cambodia reached a crisis point in 
July when forces loyal to Second Prime Minister Hun Sen seized 
control and ousted First Prime Minister Ranariddh from both the 
coalition government and the country. Subsequent to this 
takeover, Hun Sen forces engaged in a systematic campaign of 
summary executions, torture and kidnappings, much of which has 
been verified and documented in an August 21, 1997, United 
Nations Center for Human Rights report.
      In response to these events, the Secretary of State 
announced a temporary suspension and review of U.S. assistance 
programs. The conferees believe that, in effect, Hun Sen gained 
power by a coup which would normally require the termination of 
U.S. assistance under section 508 of this Act.
      To assure no assistance is provided to Hun Sen or his 
supporters, the conferees have prohibited most bilateral aid 
for the Government of Cambodia. The Secretary of the Treasury 
should instruct U.S. Executive Directors to international 
financial institutions to use the voice and vote of the United 
States in opposition to loans to Cambodia.
      In restricting bilateral aid, the conferees have exempted 
demining, elections and humanitarian programs which directly 
benefit Cambodia's citizens. The conferees hope that Hun Sen's 
opponents will be allowed to return to Cambodia and safely 
participate in open, fair elections. The conferees expect the 
Committees on Appropriations to be notified prior to the 
initiation or renewal of any program in Cambodia.

                   International Disaster Assistance

      The conference agreement appropriates $190,000,000 for 
``International Disaster Assistance'' as proposed by the House 
instead of $195,000,000 as proposed by the Senate.
      The conferees support the House report language on 
activities in Kosova and assistance for internally displaced 
persons in Northern Iraq.

                           Debt Restructuring

      The conference agreement appropriates $27,000,000 as 
proposed by the House instead of $34,000,000 as proposed by the 
Senate.
      The agreement includes language to allow modification of 
concessional loans made under section 411 of the Agricultural 
Trade Development and Assistance Act of 1954, the Commodity 
Credit Corporation Charter Act, the Food for Peace Act of 1966, 
or the Agricultural Trade Act of 1978, to Latin American 
countries which have completed Paris Club debt agreements. Debt 
relief for Jordan was completed in fiscal year 1997, and 
therefore language affecting Jordan in the House bill and 
Senate amendment has been deleted.
      The conference agreement on legislative language follows 
the House in not retaining the proposed requirement for 
notifications for the obligations of funds from this account. 
In lieu of the House report language request for quarterly 
reports on obligations made from this account, the conferees 
request the following actions for debt restructuring activity 
in this account:
            1. on the basis of final appropriations action, an 
        annual notification should be provided at the beginning 
        of the fiscal year listing expected poorest country 
        debt reduction and buyback/swap activities for the 
        upcoming fiscal year;
            2. the Committees on Appropriations should be 
        informed should action subsequently be anticipated for 
        additional countries, or involve deeper relief;
            3. signed bilateral agreements to implement 
        bilateral agreements should be submitted to the 
        Committees on Appropriations prior to the entry into 
        force of such agreements; and
            4. a final report should be provided at the end of 
        the fiscal year listing Paris Club ad referendum 
        agreements, signature and/or entry into force of 
        bilateral debt reduction agreements, obligation of 
        funds for poorest country debt reduction, and buyback/
        swap agreements concluded during the fiscal year.
      The conference agreement also provides up to $1,500,000 
for the Department of Treasury to improve the foreign credit 
reporting system of the U.S. Government.

             Urban and Environmental Credit Program Account

      The conference agreement incorporates House language 
allowing for funds under this heading to be used for the cost 
of guaranteed loans designed to promote the urban and 
environmental policies and objectives of part I of the Foreign 
Assistance Act. The Senate amendment did not contain such 
language.

     Operating Expenses of the Agency for International Development

      The conference agreement appropriates $473,000,000 as 
proposed by the Senate instead of $468,750,000 as proposed by 
the House.
      The conferees are very concerned about the lack of 
progress in the implementation of the New Management System 
(NMS) and request that AID regularly report to the Committees 
on Appropriations on the status of this program.

                         Economic Support Fund

      The conference agreement appropriates $2,400,000,000 
instead of $2,541,150,000 as proposed by the Senate and 
$2,375,000,000 as proposed by the House.

                            the middle east

      The conference agreement inserts language proposed by the 
Senate which earmarks $1,200,000,000 for Israel, $815,000,000 
for Egypt and $150,000,000 for Jordan. The conference agreement 
also provides that aid to Egypt is provided with the 
understanding that Egypt will undertake significant economic 
reforms and that in providing aid to Egypt and Israel the 
President shall ensure the level of aid does not cause an 
adverse impact on the total level of non-military exports from 
the United States to each country.
      The conference agreement inserts language proposed by the 
House which provides that of the funds made available in 
previous Acts making appropriations for foreign operations, 
export financing, and related programs, notwithstanding any 
provision of any similar heading in such previous Acts, up to 
$116,000,000 may be made available to support Economic Support 
Fund programs and activities, including the Middle East Peace 
and Stability Fund. The language also provides that the 
President should seek to ensure to the extent feasible that not 
more than 1 percent ($54,000,000) of the amount specified in 
section 586 shall be derived from any single country. The 
conference agreement further provides that any funds provided 
to the Middle East Peace and Stability Fund by a country in the 
region pursuant to the general authorities of section 635(d) of 
the Foreign Assistance Act of 1961, as well as funds made 
available for Jordan from previous Acts, shall count toward 
meeting the earmark for Jordan. In addition, the conference 
agreement stipulates that up to $10,000,000 in fiscal year 1997 
funds reprogrammed for Jordan shall also count toward the 
Jordan earmark in fiscal year 1998. The conference agreement 
also includes language modifying certain notification 
requirements in order to facilitate the implementation of the 
authorities provided under this heading and the requirements of 
section 586, ``Assistance for the Middle East.''

                                 haiti

      The conference agreement strikes language proposed by the 
Senate earmarking not less than $500,000 for the Special 
Investigative Unit (SIU) of the Haiti National Police and 
providing that up to $250,000 may be made available to assist 
orphanages in Haiti. The managers expect not less than $500,000 
be made available to the SIU and concur with the Senate that a 
professional SIU, fully supported by its Government, is 
essential to the rule of law in Haiti and that programs to 
assist Haitian children in orphanages should be continued under 
the current dire economic conditions in Haiti. No later than 45 
days after enactment of this Act, the Secretary of State is 
requested to report to the Committees on the proposed fiscal 
year allocation for these programs in Haiti.

                    palestinian-israeli cooperation

      The conferees recommend that $500,000 be made available 
to support the Palestinian-Israeli Cooperation Program to 
promote better understanding and mutual respect between 
Israelis and Palestinians at a time when the Middle East Peace 
process is threatened by violence and terrorist acts.

                                  iraq

      The conferees note that the people of Iraq continue to 
suffer under the repressive rule of Saddam Hussein, despite 
efforts of the international community to provide humanitarian 
assistance to the trulyneedy in Iraq. In particular, the 
conferees are concerned that humanitarian assistance provided by 
private religious and charitable groups may not be reaching intended 
beneficiaries in Iraq. The conferees direct the Department of State to 
work with these groups to coordinate monitoring activities and to apply 
international pressure to make certain that innocent victims in Iraq 
are not denied humanitarian assistance provided by private charitable 
organizations.

                 timber trade in thailand and cambodia

      The conferees remain very concerned by reports that 
despite efforts by the Administration and Thai officials to 
deter the export of timber from Cambodia through Thailand, this 
illegal trade continues and may be increasing due to recent 
political turmoil in Cambodia. Reports implicate Cambodian 
political and military officials, as well as Thai border guards 
in this profitable trade. Although the conferees have not 
repeated past conditions on assistance to Thailand, the 
conferees expect the Administration to use its influence with 
both the Thai and Cambodian authorities to produce concrete 
results in stemming this illegal trade.

                               guatemala

      Authority is provided to use local currency generated by 
AID programs, in Guatemala to prepay the debts owed by several 
universities to multilateral development banks. Full repayment 
of the debt was made for many years, until devaluation of the 
local currency made prompt repayment in hard currency extremely 
difficult. The affected institutions have made major 
contributions to the peace and reconciliation process in 
Guatemala, and the authority is provided in recognition of that 
fact. Similar authority was provided for El Salvador in 1992.

                south pacific regional fisheries treaty

      The conferees note that the South Pacific Regional 
Fisheries Treaty requires the United States to contribute 
$14,000,000 annually to the South Pacific Island states and 
expect that this treaty obligation will be met.

                     International Fund for Ireland

      The conference agreement appropriates $19,600,000 for the 
``International Fund for Ireland'' as proposed by the House. 
The Senate amendment did not contain a provision on this 
matter.

          Assistance for Eastern Europe and the Baltic States

      The conference agreement appropriates $485,000,000 as 
proposed by the Senate instead of $470,000,000 as proposed by 
the House.
      The conference agreement includes House language deleted 
by the Senate that prohibits funds from being used for new 
housing construction or repair or reconstruction of existing 
housing in Bosnia and Herzegovina unless directly related to 
efforts of United States troops to promote peace in said 
country. The agreement also includes language, similar to that 
contained in both the House bill and the Senate amendment, that 
authorizes the President to withhold funds made available for 
economic revitalization for Bosnia and Herzegovina if he 
determines and certifies to the Committees on Appropriations 
that the Federation of Bosnia and Herzegovina is not in 
compliance with the Dayton agreement regarding the removal of 
foreign forces, and that intelligence cooperation on training, 
investigations, and related activities between Iranian and 
Bosnian officials has not been terminated.
      The conference agreement retains language from the House 
limiting the assistance for Bosnia and Herzegovina to 
$200,000,000. However, this limitation excludes funds for 
police training and related expenses. The conference agreement 
includes up to $15,000,000 for this purpose. The conferees 
endorse the House report language encouraging the State 
Department to seek funds from other nations for police training 
activities in Bosnia, and expect that any proposal to provide 
more than $15,000,000 for police training and related expenses 
will be subject to notification.
      The conference agreement also includes House language not 
in the Senate amendment to allow for up to $7,000,000 for 
modifying direct loans and loan guarantees for Bosnia and 
Herzegovina.
      The conferees recognize that realtors in the United 
States have had success in working with the Eastern Europe Real 
Property Foundation. Building and privatizing real estate 
markets is still a priority in building a free and democratic 
economy. The conferees recommend funding at up to $2,000,000 
over the next two years to continue to develop professional 
associations with ethics and laws that will lead to a private 
real estate market throughout Central Europe.
      The conferees recommend that AID and the Department of 
State make best efforts to provide funding at the fiscal year 
1996 level for the Russian, Eurasian, and East European 
Research and Training Program (title VIII),both in this account 
and in ``Assistance for the New Independent States of the Former Soviet 
Union''.

  Assistance for the New Independent States of the Former Soviet Union

      The conference agreement appropriates $770,000,000 
instead of $625,000,000 as proposed by the House and 
$800,000,000 as proposed by the Senate. The conferees did not 
include Senate language that allowed for the transfer of up to 
$22,000,000 to the Export-Import Bank and up to $8,000,000 to 
the Micro and Small Enterprise Program of AID.

                              russia-iran

      The conference agreement provides that fifty percent of 
the funds allocated for the Government of Russia shall be 
withheld from obligation until the President determines and 
certifies in writing to the Committees on Appropriations that 
the Government of Russia has terminated implementation of 
arrangements to provide Iran with certain goods and services 
related to nuclear and ballistic missile programs in Iran. The 
managers also include a provision allowing the President to 
waive the provisions of the paragraph if he finds that 
continuing assistance to the Government of Russia is vital to 
the national security interests of the United States and that 
the Government of Russia is taking meaningful steps to limit 
major supply contracts and curtail the transfer of technology. 
The Senate had no similar waiver provision.

                           gazprom financing

      The managess understand that the Chairman of the Export 
Import Bank signed a memorandum of understanding with Gazprom 
in 1994 providing up to $750 million in guarantees of 
commercial loans for the purchase of American equipment and 
services to improve the efficiency and productivity of Russian 
oil and gas fields. Since implementation, the Bank has approved 
or has under consideration $338 million in financing.
      In 1996, the Iran Libya Sanctions Act went into effect 
requiring the President to impose sanctions against companies 
which invest more than $20 million in the development of Iran's 
energy sector. The managers are concerned by reports that 
Gazprom has agreed to participate in a $2 billion project to 
develop Iranian energy fields. The managers strongly oppose the 
use of Bank financing to directly or indirectly support the 
development of Iranian gas and oil fields and urge the Board of 
the Bank to suspend all Gazprom transactions for a period of 
review to assure no funds are used for these purposes.

                                ukraine

      The conference agreement earmarks $225,000,000 for 
Ukraine with the understanding that Ukraine will undertake 
significant economic reforms which are additional to those 
which were undertaken in previous years.
      The conferees take note of important developments which 
have enhanced stability in Ukraine including the introduction 
of a new currency, passage of a Constitution and completion of 
a new NATO-Ukraine security agreement. The conferees take note 
of President Kuchma's recent initiatives to combat corruption, 
privatize state owned, enterprises and replace senior officials 
opposed to serious reforms. While welcome, these efforts must 
be expanded and measured by immediate, concrete progress on 
legal, political and economic reforms. Reforms, especially in 
the agriculture sector, are essential if U.S. and multilateral 
assistance is to achieve meaningful results. Without them, it 
will be difficult for Ukraine to prosper and secure its 
political independence.
      To encourage results, the conferees have withheld 50 
percent of the funding for Ukraine until the Secretary of State 
is able to certify that specific cases involving U.S. companies 
have been resolved. The conferees have taken this action with 
the view that the private sector is key to Ukraine's economic 
growth. Resolution of these cases, as well as similar 
complaints by Ukrainian firms, and improvements in the legal 
system are necessary if Ukraine is to restore private sector 
confidence and attract investment capital.
      With parliamentary elections scheduled in March 1998, the 
managers strongly support expanded political party training and 
election-related activities to encourage informed participation 
and an open, fair process. The conferees remain concerned that 
the current Rada has opposed many of President Kuchma's reform 
initiatives. The conferees note that the outcome of the 
elections could have a significant impact on the future 
assistance program as well as private sector investment.
      The managers expect that not less than $25,000,000 of the 
funds allocated to Ukraine be transferred to the Department of 
Energy's International Nuclear Safety Program for simulators, 
training, and safety analysis at nuclear reactors in Ukraine. 
The managers direct the Department of Energy's INSP office to 
consult with the Senate and House committees prior to any 
allocation of funds. The conference agreement also includes 
language modifying prior year language on nuclear safety 
analyses to extend the time available for such activities in 
Ukraine.
      The conference has deleted House language terminating 
assistance to the Government of Ukraine if the President 
determines and reports to the Committees that the Government of 
Ukraine is engaged in military cooperation with the Government 
of Libya. There was no similar Senate provision, and the 
conferees have been assured by the State Department that there 
is no cooperation with Libya at the present time. The managers 
caution Ukraine to move immediately to halt any and all 
transfers of weapons to terrorist states.

                         commercial law reform

      The Senate version of the bill included $25,000,000 for 
commercial law reform in Ukraine. The House bill did not 
include such a provision.
      The conferees express strong support for commercial law 
reform in Ukraine. The conferees strongly urge AID to set aside 
funds for comprehensive legal restructuring in Ukraine 
necessary to support a decentralized market-oriented economic 
system, including the enactment of all necessary substantive 
commercial law procedures, the implementation of reforms 
necessary to establish an independent judiciary and bar, the 
education of judges, attorneys, law students, and related 
public education.

                        southern caucasus region

      The conference agreement provides for a new Southern 
Caucasus Region funding category that is not contained in the 
House bill or Senate amendment. The managers seek to make the 
maximum use of American assistance as an incentive for the 
regional parties to cooperate with the Minsk Group and other 
international mediators seeking to bring peace to the South 
Caucasus. The managers are convinced that the ready 
availability of international reconstruction aid, including the 
potential U.S. initial contribution provided in this conference 
agreement, will encourage leaders to make peace. The managers 
intend that emphasis be placed on restoring transportation, 
telecommunications, and other infrastructure that promote 
regional economic integration.
      The managers include in the $250,000,000 made available 
for the Southern Caucasus specific funding for three areas of 
United States national interest in the region:
            (1) up to $70,000,000 to aid the refugees and 
        internally displaced persons affected by the conflicts 
        in the Caucasus, and if feasible, provide the United 
        States share of an international effort to reconstruct 
        the regions most affected by the conflict once interim 
        settlements are agreed to. The managers direct the 
        Coordinator to move forthwith to provide assistance of 
        $12,500,000 for victims of the Nagorno-Karabakh 
        conflict and $5,000,000 for victims of the Abkhazia 
        conflict;
            (2) the amount of $87,500,000 for Armenia (not 
        including, under the previous category, aid for 
        Armenians residing outside the boundaries of Armenia), 
        a country in the center of a volatile region that 
        cannot prosper without renewed trade and communications 
        with its sometimes hostile neighbors; and
            (3) the amount of $92,500,000 for Georgia (not 
        including, under the previous category, aid for 
        Georgians displaced from Abkhazia) a key country 
        providing regional leadership for conflict resolution 
        and economic reform. Training and infrastructure 
        support for customs and border control by Georgian 
        officials should be a high priority for use of these 
        funds.
      In order to facilitate United States leadership in the 
Minsk Group process, the managers have included in the 
conference agreement language renewing Congressional concern 
about blockades of Armenia, but have exempted humanitarian aid 
to refugees and displaced persons throughout the Southern 
Caucasus from restrictions imposed by the FREEDOM Support Act. 
This should facilitate American assistance to residents of 
Nagorno-Karabakh as well as persons displaced from neighboring 
regions of Azerbaijan.
      The bill again contains language which restates section 
907 of the FREEDOM Support Act (P.L. 102-511). The managers 
recognize that restrictions contained in section 907 are 
applicable to assistance to the Government of Azerbaijan.
      The conference agreement does not exempt reconstruction 
aid from the restrictions imposed by the FREEDOM Support Act. 
The managers assume that in the event that an interim 
settlement is reached with regard to Nagorno-Karabakh, any 
blockades will be lifted and the President will be in a 
position to make the determination necessary to lift such 
restrictions.
      In addition to provisions included in prior year 
Appropriations Acts, the conference agreement allows for 
limited support for United States commercial entities, as 
proposed by the Senate, by clarifying that the Foreign 
Commercial Service and the Trade and Development Agency can 
function in Azerbaijan. Both House and Senate provisions 
relating to the Export-Import Bank were deleted from the 
conference agreement.
      It is the intent of the conferees that in the case of any 
assistance funded or otherwise provided pursuant to this Act, 
the direct beneficiaries of which are required by law to be 
United States entities (e.g., in which guaranties or insurance 
are provided to U.S. entities), such assistance shall not be 
considered assistance to a foreign country or government, and 
therefore is not covered by restrictions on such assistance.
      In order to provide flexibility for the Executive branch, 
the conference agreement includes a provision allowing the 
Secretary of State to use up to $43,750,000 from the Southern 
Caucasus funding category for other areas of the former Soviet 
Union, if she reports to Congress that the full amount cannot 
be effectively utilized. The managers anticipate that this 
provision would be used only if an interim settlement proposed 
by the Minsk Group is not agreed to by May 30, 1998.

                                armenia

      Because of concern about the impact of the continuing 
physical isolation of Armenia from several of its neighbors and 
the uneven performance of her economy, the conferees direct 
that the Agency for InternationalDevelopment and other United 
States Government agencies provide no less than $82,500,000 for 
technical and humanitarian assistance requested by the Government of 
Armenia and qualified non-governmental organizations in Armenia. This 
level of assistance is provided with the understanding that Armenia 
will undertake significant economic reforms which are additional to 
those which were undertaken in previous years.
      As Armenian Prime Minister Kocharian recently stated, 
``further economic growth largely depends on foreign investment 
and from that point of view, the role of the Armenian diaspora 
can scarcely be overestimated.'' Without a favorable investment 
climate, no amount of American Government assistance will bring 
prosperity to Armenia or its neighbors.

                                georgia

      Because of the constructive role undertaken by Georgia in 
attempting to resolve regional conflicts and its economic and 
democratic progress, the conferees direct that the Agency for 
International Development and other United States Government 
agencies provide no less than $87,500,000 for technical, 
security, and humanitarian assistance requested by the 
Government of Georgia and qualified non-governmental 
organizations in Georgia.

   lack of priority for health, population, and environment programs

      The conferees are distressed that the NIS assistance 
program has made Health, Population, and Environment projects a 
low priority. Virtually all of the New Independent States have 
severe health and environmental problems. Unfortunately, the 
positive changes in the areas of democratization and 
privatization in these republics has been accompanied by a 
steady deterioration in the quality of health care. Health 
indicators in virtually all republics reflect this trend. Few 
if any environmental guidelines or laws exist in the NIS 
republics, and there is little capacity to implement them even 
where there do exist. A low percentage of women in the NIS have 
access to family planning services. Dramatic reductions in 
abortion rates have been achieved in areas where U.S. resources 
have been made available for such services.
      The conferees have agreed to provide a $145,000,000 or 23 
percent increase in the funds for the NIS program for fiscal 
year 1998. The magnitude of the problems mentioned above should 
not prevent the Coordinator from devoting additional resources 
to them, particularly in light of the large increase in the NIS 
account. The conferees expect the priorities reflected in the 
fiscal year 1998 NIS program, including the Partnership for 
Freedom, to be revisited and that significant additional 
resources will be devoted to the Health, Population, and 
Environmental programs.

                            russian far east

      The Russian Far East is widely recognized as vital to the 
overall development of the Russian Federation's economy. Its 
rich natural resource base and proximity to robust Pacific rim 
economies have attracted the attention of many international 
companies, but the investment climate remains difficult because 
of governance issues in the region.
      The Russian Far East presents a unique set of investment 
opportunities which have been overlooked in past United States 
economic cooperation initiatives in Russia. As the Partnership 
for Freedom program will designate selected regions in the 
Russian Federation as especially attractive for American 
investment, the managers direct the Coordinator to designate at 
least one such region in the Russian Far East. The conferees 
also urge the Board of the United States Russia Investment Fund 
(TUSRIF) to develop a lending mechanism to increase investment 
in small- to medium-sized business projects in the Russian Far 
East.

       rural and agricultural regions of Russia and central asia

      The failure of a market economy to develop in rural and 
agricultural regions of the Russian Federation, Ukraine, and 
Central Asia is noted with concern by the conferees. The 
Coordinator is encouraged to take the lagging pace of reform in 
rural Russia into account as he selects regions of 
concentration for United States technical cooperation. To this 
end, consideration should be given to forging links between 
American institutions and Russian agricultural universities and 
institutes, as well as strengthening and replicating ongoing 
collaborative efforts between academic and commercial 
enterprises. Also, the Administrator of AIDS is requested to 
provide in writing no later than December 15, 1997, the 
Agency's strategic objectives (including a financial plan) with 
region to economic growth in rural areas of the Central Asian 
republics, including public health and environmental indicators 
and the role of American-Israel cooperative research and 
development in the region.

              nis coordinator personnel presence in region

      The conferees are concerned about the lack of personnel 
in the New Independent States coordinating United States 
assistance programs. The Office of the Coordinator of NIS 
assistance has no full time personnel in Moscow and only one 
full time position in the Southern Caucasus. As theoffice 
charged with developing and coordinating all U.S. assistance programs 
in the New Independent States, it is imperative that adequate personnel 
resources be made available in the region. The conferees expect this 
situation to be addressed promptly.

      health issues resulting from the chornobyl nuclear accident

      The conferees urge AID to supplement the generosity tens 
of thousands of Americans have directed to the victims of the 
Chornobyl nuclear tragedy. Active consideration should be given 
to providing ways to decontaminate fresh milk in Ukraine and 
Belarus in order to increase its acceptability to children and 
mothers. The conferees request that the Coordinator work with 
relevant federal agencies to determine the viability of 
installing and operating effective and affordable technology to 
decontaminate milk supplies in the contaminated region. 
Emphasis should be placed on the development of privately-owned 
dairies and milk processing plants. This priority supersedes 
any non-conforming ``strategic objectives'' of USAID.

                          crime and corruption

      The conferees agree with the House report language 
characterizing officially tolerated corruption as the biggest 
impediment to private investment and economic growth in the 
former Soviet Union. The report requested by the House from the 
Secretary of State and the Coordinator should be provided to 
both Committees no later than 90 days following enactment of 
this Act.

                            enterprise funds

      The conference agreement does not reserve any funds for 
the Trans-Caucasus Enterprise Fund as proposed by the Senate. 
The House bill did not address this matter.
      The conference agreement includes a Senate provision that 
none of the funds provided under this heading or in prior 
appropriations Acts may be made available to invest in a joint 
public-private management entity established by the Defense 
Enterprise Fund.
      During fiscal year 1997, the Defense Enterprise Fund 
(DEF) received a final installment of $15,000,000 of a 
$71,000,000 commitment from the United States Government. 
Release of these resources was conditioned upon an 
understanding by the DEF senior management that the funds would 
be directly invested in defense conversion projects and related 
activities. The managers expect that during fiscal year 1998, 
none of the government funds provided to the DEF will be used 
for any other purposes. The conference language is not intended 
to limit or prevent the managers of the Fund from raising 
private capital or receiving contributions from multilateral 
financial institutions to invest in the Fund's projects or 
activities.
      The conferees direct the Coordinator for United States 
Assistance to the New Independent States, in consultation with 
the implementing agency, to submit a report to the Committees 
on Appropriations no later than 60 days after the date of 
enactment of this Act on the rate of obligation and risk and 
anticipated returns associated with commitments made to the 
United States-Russia Investment Fund (TUSRIF). The report shall 
include a recommendation on the continued relevance and 
advisability of the initial planned life of project funding 
commitment for TUSRIF.

        civil society and continued development of a free press

      The conferees endorse the House report language on civil 
society and continued development of a free press. In addition, 
the Coordinator is encouraged to continue support for the long-
term development of an independent print media in Russia and 
Ukraine, utilizing organizations with demonstrated experience 
in working with print media in countries of the region.

     endorsement of other priorities in the partnership for freedom

      The managers endorse the House report language on the 
important role of American business centers and centers for 
business skills development in the Partnership for Freedom 
initiative. The conferees also support the Senate report 
language with regard to expansion of support for sustainable 
programs at Russian agricultural institutions.

                                mongolia

      The conference agreement deletes the Senate earmark of 
$12,000,000 for Mongolia, but retains authority for funds 
provided under this heading to be used in Mongolia.
      Positive economic and political developments in Mongolia 
make clear that a robust program of assistance especially in 
the areas of judicial, tax, banking, commercial and related 
legal code reforms could have a major impact securing free 
market democracy. The managers believe the current conditions 
in Mongolia offer a unique opportunity to carry out 
significant, permanent reforms in a short period with minimal 
resources and yet a lasting impact. Therefore, the managers 
direct that not less than $12,000,000 be made available from 
development assistance funds and resources made available under 
the New Independent States heading.
      In addition, the managers are concerned about continued 
reports that AID intends to close its mission in Ulan Bator at 
the end of fiscal year 1998. The managers oppose closure of the 
mission at this time and request consultation in advance of any 
such decision. While Mongolia represents a unique opportunity 
to provide short term support and quickly graduate a nation 
from U.S. aid programs, a closure in 1998 would compromise 
prospects for successfully completing reforms.
      The managers strongly encourage the Coordinator and the 
Administrator to coordinate completion of programs to modernize 
the Mongolian energy sector. The managers recognize that the 
Mongolian Government is committed to infrastructure development 
and environmental protection, the latter adding value to the 
economy because of the potential for ecotourism. Institutions 
such as the Academy of Natural Sciences can help Mongolian 
scientists through cooperative research programs that promote 
environmentally sensitive economic development in Mongolia.

     distribution of contracts to small and disadvantaged business

      In fiscal year 1996 because of concern that small and 
disadvantaged businesses were not receiving a fair share of 
contracts from AID, particularly in the NIS programs, the 
Conference report contained language directing AID to take 
immediate measures to ensure that all contractors be given a 
fair chance to perform and receive contracts. While the initial 
actions taken by AID were encouraging, recent actions have 
brought AID commitment to this directive into doubt. The 
conferees expect AID to adhere to the earlier directive with 
respect to allowing small and disadvantaged contractors the 
opportunity to compete fairly for AID contracts.

                           Independent Agency

                              Peace Corps

      The conference agreement appropriates $222,000,000 as 
proposed by the House instead of $206,000,000 as proposed by 
the Senate.

                          Department of State

                    International Narcotics Control

      The conference agreement appropriates $215,000,000 for 
``International Narcotics Control''. The House bill proposed 
$230,000,000 for this account, while the Senate amendment 
contained an appropriation of $216,200,000.
      In addition, the conference agreement includes 
$15,000,000 in a new account, ``Narcotics Interdiction'', in 
order to provide the Bureau of International Narcotics and Law 
Enforcement Affairs (INL) with the flexibility and funds to 
procure Black Hawk helicopters for the Colombian National 
Police. The bureau is directed to use the funds in this 
account, together with base funds from ``International 
Narcotics Control'', to procure three Black Hawk utility 
helicopters, including maintenance and training, for the 
National Police solely for conternarcotics purposes, at a cost 
of $36,000,000. In addition, $14,000,000 should be made 
available to provide upgrades for UH-IH Huey helicopters for 
the Colombian National Police solely for counternarcotics 
purposes.
      The managers are extremely concerned about reports that 
Colombian heroin is flooding the U.S. market. According to the 
Drug Enforcement Administration, 60 percent of all heroin 
recently seized on American streets is of Colombian origin. The 
new appropriations account, together with base funds in 
``International Narcotics Control'', is intended to address the 
equipment shortfall of the Colombian National Police.
      The conferees are also concerned that helicopters for 
drug interdiction were removed from Guatemala several years 
ago. The transit of drugs through Guatemala has re-emerged as a 
serious problem, and the managers would support the proposed 
redeployment of helicopters from Bolivia to that country.
      The conference agreement includes language from the House 
bill, deleted by the Senate amendment, that allows the Bureau 
to use section 608 of the Foreign Assistance Act, without 
regard to its restrictions, to receive non-lethal excess 
property from an agency of the U.S. government for use in a 
foreign country, subject to notification.
      The conference agreement does not contain Senate language 
providing not less than $10,000,000 for law enforcement 
training and education and not less than $22,000,000 for anti-
crime programs. However, the conferees expect that not less 
than the 1997 levels for each such activity ($9,000,000 and 
$20,000,000, respectively) will be provided in fiscal year 
1998.
      The conference agreement includes language requiring a 
report from the Secretary of State, in consultation with the 
Office of National Drug Control Policy, 60 days after enactment 
on overseas counter-narcotics activities. The Senate amendment 
would have prohibited funding for counter-narcotics activities 
until such report was submitted. The House bill did not address 
this matter.
      The conference agreement includes language from the 
Senate amendment providing not to exceed $5,000,000 for the 
operations of a Western Hemisphere International Law 
Enforcement Academy; however, the reference to the Organization 
of American States is deleted. Although the House bill did not 
address this matter, the conferees endorse the House report 
language regarding the regional training center.
      The conference agreement includes language withholding 
from obligation 10 percent of the funds appropriated under 
``International Narcotics Control'' and ``Narcotics 
Interdiction'' until the Secretary of State submits a financial 
plan for the use of all funds made available in these accounts.
      The conferees support the development of plant pathogens 
capable of destroying illicit drug crops and expect the 
Department to fund research on such biocontrol agents, such as 
the program at Montana State University.
      The conferees support the intent of the Senate report 
language on international crime and the need for the Secretary 
of State to reestablish a task force on international crime.
      The conferees are very concerned that many people in 
Ecuador are being denied due process in its judicial system. 
Many of them, including several United States citizens, have 
been held for months or years without regard to rights accorded 
them under Ecuadoran and international law. The conferees 
strongly urge the Department of State to actively encourage 
Ecuadoran law enforcement and judicial officials they cooperate 
with under the International Narcotics Control programs to 
fulfill their responsibilities in a manner consistent with 
requirements of law and treaty obligations.

                    Migration and Refugee Assistance

      The conference agreement includes Senate language, not in 
the House bill, that provides not less than $80,000,000 for 
refugees from the former Soviet Union and Eastern Europe and 
other refugees resettling in Israel.
      The conferees remain strongly committed to assisting the 
Government of Israel to resettle refugees in Israel from the 
former Soviet Union, Eastern Europe, and elsewhere. Since 1989, 
Israel has absorbed more than 700,000 refugees from countries 
of distress. The funds provided in the conference agreement 
assist in the transportation and initial absorption costs for 
more than 100,000 refugees per year. While there has been a 
modest decrease in the number of refugees coming to Israel this 
year, the conferees note that the historically unprecedented 
numbers still arriving and in need continue to strain the 
resources of the Government of Israel. Should the current 
decline in the number of refugees arriving in Israel continue, 
the conferees expect this program to be funded at $70,000,000 
in fiscal year 1999 and $60,000,000 in fiscal year 2000.
      The conferees believe the United States should play a 
leadership role in helping to establish a fund through the 
United Nations High Commissioner for Refugees for vulnerable 
refugee children, particularly those separated from their 
parents. The conferees recommend that approximately $5,000,000 
in fiscal year 1998 funds be made available for this purpose.
      The conferees also support the House report language on 
assisting Tibetan refugees.

                    Refugee Resettlement Assistance

      The conference agreement appropriates $5,000,000 for 
``Refugee Resettlement Assistance'' as proposed by the House. 
The Senate amendment contained no provision on this matter.

    Nonproliferation, Anti-Terrorism, Demining and Related Programs

      The conference agreement appropriates $133,000,000 for 
``Nonproliferation, Anti-Terrorism, Demining and Related 
Programs'' instead of $129,000,000 as proposed by the Senate 
and $118,000,000 as proposed by the House.

                          demining activities

      The conference agreement recommends $20,000,000 be 
utilized to support global demining activities. The conferees 
strongly support programs to locate and remove landmines and 
other unexploded ordnance, including mine awareness and 
education, mapping and marking, and training of deminers. In 
addition, the conferees urge the Department of State, in 
consultation with the humanitarian demining training program at 
the Department of Defense, to explore opportunities for the 
United States to provide technical advice and assistance to 
Russia and other new independent states in the clearance of 
landmines, including the southern Caucasus region.

            korean peninsula energy development organization

      The conference agreement provides that not to exceed 
$30,000,000 may be made available to the Korean Peninsula 
Energy Development Organization (KEDO) only for administrative 
expenses and heavy fuel oil costs associated with the Agreed 
Framework as proposed by the Senate, instead of $25,000,000 as 
proposed by the House. The conference agreement also stipulates 
that the President must certify that canning activities 
associated with the Agreed Framework are scheduled to be 
completed by April 1, 1998. The conference agreement provides 
that an additional $10,000,000 may be made available to KEDO if 
the Secretary of State certifies that additional funds have 
been provided by foreign donors to KEDO sufficient to cover all 
outstanding debts owed by KEDO for heavy fuel oil. The managers 
also agree that none of the funds in this bill that are made 
available for KEDO in fiscal year 1997 may be used to 
contribute to the light-water nuclear reactors being provided 
to North Korea under the terms of the Agreed Framework.

                      nonproliferation activities

      The conference agreement recommends $15,000,000 for the 
Nonproliferation and Disarmament Fund. The conferees strongly 
support the core nonproliferation activities of the NDF. The 
NDF is designed to provide the Secretary of State with a 
flexible funding source to respond to urgent, unanticipated 
nonproliferation activities of immediate concern to the United 
States. Longer term programmatic activities, such as export 
controls, should be funded separately outside of the NDF 
account and therefore subject to the normal conditions for 
legislative oversight and review. For this reason the 
conference agreement recommends that $3,000,000 in NADR account 
funds be used to support export control related activities.
      The conferees also note that there may be numerous 
nonproliferation programs which could logically be included in 
the NADR account in order to facilitate the continued 
rationalization of government-wide nonproliferation programs 
and activities. The conferees stress that the Committees on 
Appropriations are prepared to work with the Administration in 
this ongoing rationalization process as the Administration 
prepares its fiscal year 1999 request.

                     TITLE III--MILITARY ASSISTANCE

             International Military Education and Training

      The conference agreement appropriates $50,000,000 as 
proposed by the House instead of $47,000,000 as proposed by the 
Senate.

                         school of the americas

      The conference agreement retains language proposed by the 
House which makes the obligation of funds under this heading to 
support IMET training at the School of the Americas contingent 
upon certification by the Secretary of Defense that the 
instruction and training provided by the School of the Americas 
is fully consistent with training and doctrine, particularly 
with respect to the observance of human rights, provided by the 
Department of Defense to United States military students at 
Department of Defense institutions whose primary purpose is to 
train United States military personnel; second, the Secretary 
of State, in consultation with the Secretary of Defense, has 
developed and issued specific guidelines governing the 
selection and screening of candidates for instruction at the 
School of the Americas; and third, the Department of Defense 
has submitted to the Committees on Appropriations a report 
detailing the training activities of the School of the Americas 
and a general assessment regarding the performance of its 
graduates during 1996.

                        guatemala and indonesia

      The conference agreement includes language proposed by 
the House which limits Indonesia and Guatemala to expanded IMET 
only and, in the case of Guatemala, the conferees expect the 
administration to obligate funds subject to the regular 
notification procedures of the Committees on Appropriations. 
The conferees agree that expanded IMET for Guatemala shall be 
used to support the peace settlement and that qualified non-
military personnel should be well represented in such courses 
to the extent practical.

                     civilian participation in imet

      The conference agreement also includes language proposed 
by the Senate which allows IMET participation by civilian 
personnel who are not members of a government if their 
participation would contribute to improved civil-military 
relations, civilian control of the military, or respect for 
human rights.

                                mongolia

      The conferees commend the Department of Defense for the 
Department's implementation of the fiscal year 1997 IMET 
program in Mongolia in a manner consistent with the objectives 
outlined in the Statement of Managers for Public Law 104-208. 
The conferees urge continued support for this important program 
in Mongolia, particularly in the expanded IMET area.

           foreign military financing program (grant program)

      The conference agreement appropriates $3,296,550,000 
instead of $3,308,950,000 as proposed by the Senate and 
$3,259,250,000 as proposed by the House.

                            the middle east

      The conference agreement inserts earmarks for Israel, 
Egypt and Jordan which provide that not less than 
$1,800,000,000 shall be available for grants only for Israel, 
not less than $1,300,000,000 shall be available for grants only 
for Egypt, and not less than $75,000,000 shall be available for 
assistance for Jordan. The conference agreement also directs 
the President to draw down not less than $25,000,000 in defense 
equipment and services for Jordan, the aggregate value of which 
shall count against the earmark for Jordan.

                 poland, hungary and the czech republic

      The conference agreement provides that not less than 
$50,000,000 in funds made available for FMF grants and FMF 
loans should be made available for Poland, Hungary, and the 
Czech Republic to facilitate the integration of these nations 
into NATO.

                           the baltic nations

      The conference agreement provides that $18,300,000 should 
be made available to Estonia, Latvia and Lithuania. These funds 
are provided to enhance programs aimed at improving the 
military capabilities of these nations and to strengthen their 
interoperability and standardization with NATO, including the 
development of a regional airspace control system. Given 
progress in economic reform and meeting military guidelines for 
prospective NATO members, the conferees believe the Baltic 
nations will make an important contribution to enhancing 
stability and peace in Europe and are strong candidates for 
NATO membership.
      The conference agreement retains House language which 
provides that the obligation of funds for any non-NATO country 
participating in the Partnership for Peace shall be subject to 
notification.

                            fmf loan program

      The conference agreement also appropriates $60,000,000 as 
proposed by the House for the subsidy cost of direct loans 
instead of $74,000,000 as proposed by the Senate. The 
conference agreement provides that these funds are available to 
support not to exceed $657,000,000 in direct loans as proposed 
by the House instead of $759,500,000 as proposed by the Senate.
      The conference agreement deletes a Senate earmark of 
$8,000,000 for loans to Estonia, Latvia, and Lithuania. 
Increased assistance for these countries is provided under the 
grant FMF program.
      The conference agreement retains the House levels of 
$105,000,000 and $150,000,000 as ceilings on FMF loans to 
Greece and Turkey respectively instead of $122,500,000 and 
$175,000,000 as proposed by the Senate.

                      fmf administrative expenses

      The conference agreement includes House language which 
provides that not more than $350,000,000 of the funds realized 
pursuant to section 21(e)(1)(A) of the Arms Export Control Act 
may be obligated for expenses incurred by the Department of 
Defense during fiscal year 1998, instead of $355,000,000 as 
proposed by the Senate.

                           fmf loan criteria

      The conference managers are extremely concerned that the 
Administration has apparently abandoned its long-standing 
credit criteria for determining eligibility for the FMF loan 
program. The conferees note that previous year funds were made 
available to support the FMF loan program based upon a clear 
understanding, provided by the Administration at the time the 
funds were being requested, of its loan criteria and its 
intended application. The conferees note that the current 
application of the FMF loan program is not consistent with 
these presentations. The conferees direct the Secretary of 
State, in consultation with the Secretary of Defense, Secretary 
of the Treasury, the Director of the Office of Management and 
Budget, and in coordination with the Director of the 
Congressional Budget Office, to review the current FMF loan 
policy and its application to current and proposed program 
participants and to report to the Committees on Appropriations, 
within 180 days of enactment of this Act, on these issues, to 
include a statement specifically detailing Administration FMF 
loan policy and credit risk criteria. The conferees also direct 
the Secretary of Defense to report to the Committees on 
Appropriations on a quarterly basis, beginning January 1, 1998, 
on the current credit risk ratings for potential and current 
FMF loan program participants.

                        Peacekeeping Operations

      The conference agreement provides $77,500,000 for 
peacekeeping operations as proposed by the House instead of 
$75,000,000 as proposed by the Senate.

                    multilateral force and observers

      The conferees note that the current Director General of 
the Sinai Multilateral Force and Observers is concluding his 
last term in office. The conferees expect a report from the 
Secretary of State, prior to the release of the U.S. share of 
the Observer Force funding, on the status of efforts to replace 
the Director General.

                   african crisis response initiative

      The conferees note that funds provided to support the 
African Crisis Response Initiative should be utilized to foster 
the growth of democracy and the protection of human rights in 
Africa and should not be directed to undemocratic governments 
with a history of human rights abuses by their militaries. The 
conferees agree with the Department of State that ``it is 
important that countries selected to receive additional 
training and equipment have military establishments that accept 
the supremacy of democratic civilian government.'' The 
conferees expect the Administration to consult closely with the 
Committees on Appropriations, prior to obligating such funds, 
to ensure this minimum standard is met.

                                morocco

      The conferees congratulate both Morocco and the POLISARIO 
for reaching an agreement to allow a free, fair and transparent 
referendum on the future of the people of the Western Sahara, 
and recognize the efforts of United Nations Personal Envoy 
James Baker in reaching this agreement. The conferees expect 
full implementation of the terms of the agreement and encourage 
the Department of State to play an active role in ensuring full 
implementation. The conferees also urge both parties to engage 
in the exchange of all prisoners of war, political prisoners 
and political detainees.

               TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

                  International Financial Institutions

     contribution to the international bank for reconstruction and 
                development global environment facility

      The conference agreement appropriates $47,500,000 instead 
of $60,000,000 as proposed by the Senate and $35,000,000 as 
proposed by the House.

       contribution to the international development association

      The conference agreement appropriates $1,034,503,100 
instead of $1,034,500,000 as proposed by the Senate and 
$606,000,000 as proposed by the House.
      The agreement prohibits obligation of IDA funds until the 
Secretary of the Treasury certifies that procurement 
restrictions on American firms under the Interim Trust Fund 
have been lifted. Both the House and Senate bills included 
similar language on this matter.

contribution to the enterprise for the americas multilateral investment 
                                  fund

      The conference agreement appropriates $30,000,000 for the 
Multilateral Investment Fund, all of which was previously due. 
The House bill contained no funds for this program.

               contribution to the asian development fund

      The conference agreement appropriates $150,000,000 for 
the Asian Development Fund as proposed by the Senate instead of 
$100,000,000 as proposed by the House. Of this amount, 
$50,000,000 was previously due.

              contribution to the african development fund

      The conference agreement includes $45,000,000 for the 
African Development Fund, instead of $50,000,000 as proposed by 
the House (including Section 579 of the House bill). The Senate 
amendment did not include any funds for this institution. The 
entire amount provided was previously due.

                    north american development bank

      The House bill and the Senate amendment included 
$56,500,000 for the North American Development Bank, and the 
conference agreement includes language providing that $250,000 
of these funds are for contributions previously due. In 
addition, language is included that limits to $41,250,000 the 
amount of funds that may be expended in fiscal year 1998 for 
purchase of capital shares in the bank. This action is being 
done solely for budgetary reasons and does not reflect any lack 
of support for the North American Development Bank.

  loans to the international monetary fund; new arrangements to borrow

      The conference agreement does not appropriate funds for 
the proposed New Arrangements to Borrow. The Senate proposed 
$3,521,000,000, denominated as the dollar equivalent of IMF 
Special Drawing Rights. The House bill did not include any 
appropriation for this purpose. The managers defer this item 
without prejudice.

        authorizations for international financial institutions

      The statutory authority required by the Secretary of the 
Treasury to activate several of the appropriations provided for 
international financial institutions is found in section 560 of 
the conference agreement.

                International Organizations and Programs

      The conference agreement appropriates $192,000,000 
instead of $194,000,000 as proposed by the House and 
$277,000,000 as proposed by the Senate. The conference 
agreement does not include funding for the United Nations 
Children's Fund (UNICEF) in this account, as proposed by the 
Senate. Funding of $100,000,000 for UNICEF is contained in 
``Child Survival and Disease Programs Fund'' under title II.
      The conference agreement includes House language on the 
United Nations Population Fund (UNFPA) that limits funding to 
UNFPA to one-half of the funding ceiling of $25,000,000 prior 
to March 1, 1998, and requires that no later than February 15, 
1998, the Secretary of State shall submit a report to the 
Committees on Appropriations indicating the amount UNFPA is 
budgeting for the People's Republic of China in 1998. In 
addition, the language requires that any amount UNFPA plans to 
spend in the People's Republic of China in 1998 will be 
deducted from the amount of fundsprovided to UNFPA after March 
1, 1998. Finally, with respect to any funds made available to UNFPA, 
the language requires UNFPA to maintain such funds in a separate 
account and not to commingle them with any other funds.
      The conference agreement does not contain Senate language 
providing $5,000,000 for the World Food Program, but does 
include language indicating that $4,000,000 should be made 
available for this purpose. The House bill contained no 
provision on this matter.
      The conference agreement deletes House language 
prohibiting the use of funds for the United Nations development 
group or any similar organization. The House bill provision, as 
well as House and Senate report language, reflect concern about 
proposals formerly under consideration at the United Nations 
that would have merged and consolidated UNICEF with other 
United Nations development organizations, thereby threatening 
UNICEF's unique mission for the children of the world and its 
ability to raise private sector funding. Since the reform plan 
announced by the Secretary-General on July 16, 1997, appears to 
preserve the special mandate of UNICEF for children, the 
conference agreement does not contain this funding prohibition. 
However, the managers intend to monitor closely the impact upon 
UNICEF of the implementation of the United Nations reform plan. 
The managers expect that the independence of UNICEF will be 
continued and that its ability to work for the survival, 
protection, and development of vulnerable children will remain 
uncompromised. The managers expect this to be a top priority of 
the Department of State as well, and expect to receive regular 
consultations as the reform plan proceeds.
      The conferees support the Administration's request level 
for the United Nations Development Program (UNDP), but expect 
that not less than $98,000,000 should be made available for 
UNDP in fiscal year 1998. The conferees also support the work 
of the United Nations Voluntary Fund for Victims of Torture and 
expect that the Administration will make every effort to 
support this organization at the highest level possible.

                      TITLE V--GENERAL PROVISIONS

Sec. 501. Obligations during last month of availability
      The conference agreement contains House language 
providing that not more than 15 percent of any appropriation 
item made available by this Act shall be obligated during the 
last month of availability, except for funds under the headings 
``International Disaster Assistance'' and ``United States 
Emergency Refugee and Migration Assistance Fund''. The Senate 
amendment contained no provision on this matter.
Sec. 502. Prohibition of bilateral funding for international financial 
        institutions
      The conference agreement includes language proposed by 
the House which prohibits funds in title II being used to carry 
out the provisions of section 209(d) of the Foreign Assistance 
Act, notwithstanding section 614 of said Act. The Senate 
amendment contained no provision on this matter.
Sec. 509. Transfers between accounts
      The conference agreement includes House language 
providing that the exercise of the authority under this section 
shall be subject to the regular notification procedures of the 
Committees on Ap- propriations, except for transfers 
specifically referred to in this Act. The Senate amendment did 
not include the requirement for notification.
Sec. 512. Limitation on assistance to countries in default
      The conference agreement includes a waiver for Liberia 
from the requirements of section 620(q) of the Foreign 
Assistance Act as proposed by the House. The Senate addressed 
this matter in section 561 of the Senate amendment.
Sec. 513. Commerce and trade
      The conference agreement restores House language at the 
end of subsection (a) that provides authority to the Board of 
the Export-Import Bank to waive the prohibition on the use of 
funds to establish or expand production of commodities that 
could adversely affect United States producers. The Senate 
amendment did not contain this provision.
Sec. 515. Notification requirements
      The conference agreement makes ``Child Survival and 
Disease Programs Fund'', as proposed by the House, subject to 
the notification requirements of this section. The Senate 
amendment had deleted the reference to this account.
Sec. 519. Reporting requirement
      The conference agreement amends permanent law as proposed 
by the Senate to provide that the reports required by section 
25(a)(1) of the Arms Export Control Act shall be submitted to 
the Committees on Appropriations. The House bill required such 
reports, but did not amend permanent law.
Sec. 520. Special notification requirements
      The conference agreement adds ``Panama'' as proposed by 
the House to the list of countries subject to the special 
notification requirements of this section. It also deletes 
``Russia'' from this list, as proposed by the Senate. The 
Senate provisions adding ``Guatemala'' and ``Dominican 
Republic'' are not included in the conference agreement.
Sec. 522. Child survival, AIDS and other activities
      The conference agreement includes Senate language 
limiting to $10,000,000 the funds that may be made available to 
reimburse specified organizations for certain activities in 
support of family planing activities, child survival 
activities, and activities relating to research on, and the 
treatment and control of, HIV/AIDS, as well as Senate language 
including basic education activities under the authority of the 
section. The House bill had similar language, but the 
limitation was $8,000,000 and did not include basic education 
activities.
Sec. 526. Authorization requirement
      The conference agreement includes Senate language waiving 
the authorization requirements of section 10 of Public Law 91-
672 and section 15 of the State Department Basic Authorities 
act for the funds appropriated in this Act. The House bill made 
these funds subject to these authorization requirements.
Sec. 536. Extension of authority to obligate funds to close the special 
        defense acquisition fund
      The conference agreement includes language proposed by 
the House which amends title III of Public Law 103-306 to 
extend through fiscal year 2000 the authority to obligate funds 
to close the Special Defense Acquisition Fund. The Senate 
amendment contained no provision on this matter.
Sec. 537. Authorities for the Peace Corps, the Inter-American 
        Foundation and the African Development Foundation
      The conference agreement restores House language 
providing authority for the Inter-American Foundation and the 
African Development Foundation to operate in foreign countries 
notwithstanding other provisions of this or other Acts. The 
Senate amendment deleted the language providing such authority.
Sec. 539. Special authorities
      The conference agreement deletes ``Cambodia'' from the 
provisions that exempt assistance to that country from any 
other provision of law as proposed by the Senate, but restores 
House language exempting humanitarian assistance for the 
peoples of Bosnia and Herzegovina and Croatia from any other 
provision of law.
      The conference agreement also deletes Senate language 
allowing for the use of up to $40,000,000 under the authority 
(relating to unanticipated contingencies) of section 451 of the 
Foreign Assistance Act. The House bill does not address the 
matter. The permanent statutory limit is $25,000,000.
      The conference agreement includes language in a new 
subsection (d) which enables the President to waive section 
1003 of Public Law 100-204, relating to prohibitions regarding 
the Palestinian Liberation Organization, if the President 
determines that it is important to the national security 
interests of the United States.
Sec. 540. Policy on terminating the Arab League boycott of Israel
      The conference agreement includes language proposed by 
the House which deals with the decision in 1997 by the Arab 
League to reinstate the boycott of Israel and encourages the 
President to take certain specific steps in response to this 
decision.
Sec. 542. Eligibility for assistance
      The conference agreement includes House language 
regarding exemptions from restrictions on certain assistance if 
carried out by nongovernmental organizations. The Senate 
amendment included similar language, but did not include 
``Assistance for Eastern Europe and Baltic States'' under the 
terms of the provision. This section allows development 
assistance to be provided for nongovernmental organizations in 
cases where such assistance would otherwise be barred because 
of a statutory prohibition on assistance to a country. Under 
this authority, assistance provided through nongovernmental 
organizations may only marginally benefit the government of a 
country otherwise prohibited from receiving assistance through, 
for example, the necessary use of government facilities by 
nongovernmental organizations providing assistance to the 
people of that country. Except in such limited circumstances, 
the fact that assistance may be provided through 
nongovernmental organizations does not mean that the assistance 
can be provided to the government. Rather, the provision was 
first enacted in recognition that a government's actions should 
not automatically bar assistance to the people of a country 
through nongovernmental channels. It is with this intention 
that the conferees have expanded the scope of the current 
authority to include the former Soviet Union and Eastern 
Europe.
Sec. 545. Prohibition on publicity or propaganda
      The conference agreement includes House language limiting 
to $500,000 the amount that may be made available to carry out 
the provisions of section 316 of Public Law 96-533 relating to 
hunger and development education. The Senate bill did not 
include a limitation.
Sec. 546. Purchase of American-made equipment and products
      The conference agreement combines this section with 
section 558, as proposed by the Senate. The language requires, 
to the greatest extent practicable, that any entity receiving 
assistance under this Act should receive notice that it is the 
Sense of the Congress that all equipment and products funded by 
this Act should be American-made.
Sec. 550. Prohibition on assistance to foreign governments that export 
        lethal military equipment to countries supporting international 
        terrorism
      The conference agreement provides that the prohibition on 
assistance called for in subsection (a) applies with respect to 
a contract entered into after October 1, 1997 instead of 
``April 24, 1996'' as proposed by the House and ``after the 
date of enactment of this Act'' as proposed by the Senate.
Sec. 553. War crimes tribunals drawdown
      The conference agreement changes the designation of the 
section title to include the word ``drawdown'' as proposed by 
the Senate.
Sec. 557. Equitable allocation of funds
      The conference agreement inserts House language providing 
that not more than 18 percent of the funds appropriated to 
carry out the provisions of sections 103 through 106 and 
chapter 4 of part II of the Foreign Assistance Act that are 
made available for Latin America and the Caribbean region may 
be made available, through bilateral and regional programs, to 
provide assistance to any one country in such region. The 
Senate bill did not include this provision.
Sec. 560. Authorization requirement for international financial 
        institutions
      The conference agreement includes language from title IV 
of the Senate amendment authorizing appropriations over several 
years of $1,600,000,000 for the International Development 
Association (IDA), $285,772,500 for paid-in capital of the 
European Bank for Reconstruction and Development, $400,000,000 
for the Asian Development Bank, and $76,832,001 for paid-in 
capital of the Inter-American Development Bank. The House bill 
authorized $606,000,000 for the IDA.
      The conference agreement also amends current law to 
require the International Finance Corporation to comply with 
environmental standards that apply to other multilateral 
institutions. It also includes a provision (from Senate section 
568) relating to procurement opportunities available to United 
States suppliers and community participation in the planning 
and implementation of multilateral bank projects.
      The multilateral lending banks are encouraged to 
undertake an assessment of the transparency and integrity of 
procurements they finance, including a finding on the utility 
of using independent third party procurement monitoring 
services. Such services may help U.S. companies compete for MDB 
procurement awards.
Sec. 561. Sanctions against countries harboring war criminals
      The conference agreement inserts House language on this 
matter, except that there is no reference to the International 
Criminal Tribunal for the former Yugoslavia. Under subsection 
(a), the language authorizes the President to withhold funds 
for countries harboring war criminals as described in this 
section. Under subsection (b), the language states the 
President should instruct the United States executive directors 
of the international financial institutions to work in 
opposition to, and vote against, assistance to countries 
described in this section. The Senate amendment would have 
required that assistance be withheld, and would have limited 
the application of the provision to war criminals indicted by 
the International Criminal Tribunal for Rwanda.
Sec. 562. Limitation on assistance to Haiti
      The conference agreement inserts a substitute provision 
limiting assistance to the Government of Haiti (updating what 
is known as the Dole Amendment). The conference substitute is 
similar to the Senate provision, but requires that the 
privatization of at least three major state enterprises be 
substantially completed as proposed by the House.
Sec. 563. Requirement for disclosure of foreign aid in report of 
        Secretary of State
      The conference agreement continues and updates prior year 
language requiring that the annual report on the voting record 
of foreign countries at the United Nations include a side-by-
side comparison showing the amount of U.S. assistance provided 
to each country in fiscal year 1997. The Senate bill was 
identical except that it referenced the fiscal year 1996.
Sec. 564. Restrictions on voluntary contributions to United Nations 
        agencies
      The conference agreement includes House language 
prohibiting payment of any voluntary contribution to the United 
Nations (including the United Nations Development Program) if 
the U.N. implements any taxation on any United States national 
or corporation. The Senate amendment did not address this 
matter.
Sec. 565. Assistance to Turkey
      The conference agreement inserts language which limits 
``Economic Support Funds'' to Turkey to $40,000,000; provides 
that not less than 50 percent of such funds shall be made 
available for the purposes of supporting private 
nongovernmental organizations engaged in strengthening 
democratic institutions in Turkey, providing economic 
assistance for individuals and communities affected by civil 
unrest, and supporting and promoting peaceful solutions and 
economic development which will contribute to the settlement of 
regional problems in Turkey. The conferees agree that the cash 
transferand direct project assistance components of Turkey's 
assistance are not severable and if, for whatever reason, the directed 
assistance were not provided and spent in the manner provided in 
subsection (b), the Government of Turkey would not receive the direct 
government-to-government assistance. Furthermore, the conferees also 
agree that the Agency for International Development will be responsible 
for administering the project elements of subsection (b) utilizing 
NGO's, PVO's and other instrumentalities consistent with the purposes 
outlined in subsection (b) and in consultation with the Committees on 
Appropriations.
      The conferees also expect that the implementation of 
subsection (b) will be carried out in consultation with the 
Government of Turkey, which should include the participation of 
nongovernmental organizations where necessary and appropriate. 
The conferees note that it is neither the intent of the 
conference, nor is it the effect of this provision, to impinge 
upon Turkey's national sovereignty.
      The Senate amendment did not contain a provision on this 
matter.
Sec. 566. Limitation on assistance to the Palestinian Authority
      The conference agreement includes language which provides 
that none of the funds appropriated by this Act to carry out 
the provisions of chapter 4 of part II (Economic Support Fund) 
of the Foreign Assistance Act of 1961 may be obligated or 
expended with respect to providing funds to the Palestinian 
Authority. The conference agreement allows the President to 
waive this prohibition if it is determined that it is 
``important to the national security interests of the United 
States.'' The waiver is effective for a period of not more than 
six months at a time and shall not apply beyond twelve months 
after enactment of this Act.
      Both the House bill and the Senate amendment included 
similar provisions banning funds for the Palestinian Authority 
and the P.L.O. but each would have allowed for the provision of 
funds based upon a detailed but different Presidential 
certification. Both House and Senate bills include identical 
language (Section 552) which bans assistance to the P.L.O.
Sec. 567. Limitation on assistance to the Government of Croatia
      The conference agreement includes language proposed by 
the House that bars use of funds made available to the 
Government of Croatia in title II to relocate the remains of 
Croatian Ustashe soldiers to the site of the World War II 
concentration camp at Jasenovac, Croatia. The Senate bill did 
not address this matter.
Sec. 568. Burma labor report
      The conference agreement includes language requiring a 
report from the Secretary of Labor, in consultation with the 
Secretary of State, on labor practices in Burma. The Senate 
amendment included the requirement fora report from the 
Secretary of Labor, as well as details regarding contents of the 
report. The House bill did not address this matter.
      The conferees request the report address allegations and 
details on child labor practices, workers' rights, the forced 
relocation of laborers, and the use of forced labor to support 
the tourism industry and the construction of the Yadonna gas 
pipeline. To assure an understanding of its accuracy, the 
conferees also expect an evaluation of the cooperation and 
access afforded in Burma to the officials engaged in the 
preparation of the report.
Sec. 569. Haiti
      The conference agreement includes Senate language making 
the Government of Haiti eligible to purchase defense articles 
and services under the Arms Export Control Act for the Haitian 
National Police and Coast Guard, subject to notification. The 
House bill contained no provision on this matter.
Sec. 570. Limitation on assistance to security forces
      The conference agreement includes language, similar to 
that in the Senate amendment, which prohibits funds in this Act 
from being provided to any unit of the security forces of a 
foreign country if the Secretary of State has credible evidence 
that such unit has committed gross violations of human rights, 
unless the Secretary determines and reports to the Committees 
on Appropriations that the government of such country is taking 
effective measures to bring responsible members of the security 
forces to justice. The language also provides that nothing in 
this section shall be construed to withhold funds from any unit 
credibly alleged to be involved in gross violations of human 
rights. In addition, if funds are withheld pursuant to this 
section, the Secretary is directed to inform promptly the 
foreign government of the basis for such action and shall, to 
the maximum extent practicable, assist the foreign government 
in taking effective measures to bring the responsible members 
of the security forces to justice so funds to the unit may 
resume.
      The conferees are aware that there may be instances when 
providing information to a foreign government would compromise 
sources and methods, or endanger witnesses. The phrase ``to the 
maximum extent practicable'' ensures, among other things, that 
sources, methods and the safety of witnesses are fully 
protected. By ``taking effective measures to bring responsible 
members of the security forces unit to justice'', the conferees 
intend that the government carry out a credible investigation 
and that the individuals involved face appropriate disciplinary 
action or impartial prosecution in accordance with local law.
      The House bill contained no provision on this matter.
Sec. 571. Limitations on transfer of military equipment to East Timor
      The conference agreement includes language which requires 
that any agreement for sale, transfer, or licensing of any 
lethal equipment or helicopters for Indonesia entered into by 
the United States shall state that the United States expects 
that such items will not be used in East Timor. The conference 
agreement also provides that nothing in this section shall be 
construed to limit Indonesia's inherent right to legitimate 
national self-defense as recognized under the United Nations 
Charter and international law.
      The conferees recognize Indonesia's important 
contribution to regional security and its inherent right of 
self-defense under the United Nations Charter. The conferees 
note, however, that U.S. military equipment has been used by 
Indonesian troops in East Timor. The conferees are concerned 
that U.S. military equipment not be used in a manner 
inconsistent with international law, particularly with respect 
to the observance of human rights and therefore have included 
bill language which makes clear that such items should not be 
used in East Timor.
      The House bill did not contain a provision on this 
matter.
Sec. 572. Transparency of budgets
      The conference agreement includes Senate language 
amending section 576 (a)(1) and (a)(2) of Public Law 104-208 to 
require that countries have in place a functioning system for 
reporting to civilian authorities audits of receipts and 
expenditures that fund activities of the armed forces and 
security forces in order to receive U.S. support for 
multilateral assistance through international financial 
institutions, and to condition U.S. support for such assistance 
on the requirement that information be provided to the 
international financial institution on such audit process if 
requested by such institution. The House bill contained no 
provision on this matter.
Sec. 573. Restrictions on funding to countries providing sanctuary to 
        indicted war criminals
      The conference agreement includes language prohibiting 
bilateral assistance and the support of the United States for 
certain multilateral assistance, for countries and entities not 
in compliance with the war crimes provisions of the Dayton 
peace accords for the former Yugoslavia. The Senate bill 
contained language which prohibited most support for such 
countries and entities until measurable progress was made with 
respect to the arrest and transfer to The Hague of indicted war 
criminals. The House addressed the issue of war crimes in the 
former Yugoslavia in section 565 of the House bill, which would 
have authorized the President to withhold assistance to 
countries that granted sanctuary to war criminals.
      The conferees expect that the provision of United States 
assistance to Croatia and Bosnia through international 
financial institutions will be coordinated with U.S. foreign 
policy objectives. With respect to the exemption in the section 
for bilaterally and multilaterally funded cross-border 
infrastructure projects, the conferees intend that the 
exemption should apply only to projects which are predominantly 
located in and predominantly benefit a nonsanctioned entity and 
include a small portion that extends into a contiguous 
sanctioned entity for the purpose of completing the project. 
The conferees note that Republicka Srpska has failed to arrest 
and transfer any of the 53 publicly indicted war criminals 
believed to be in its territory.
Sec. 574. Extension of certain adjudication provisions
      The conference agreement includes Senate language that 
extends for an additional year (until October 1, 1998) the 
provisions of section 599D and 599E of Public Law 101-167; 
these provisions establish categories of aliens for purposes of 
refugee determinations, and provide for the adjustment of 
immigrant status for certain Soviet and Indochinese aliens. The 
House bill did not contain a provision on this matter.
      The managers expect that this matter will be addressed in 
the future by the committees of jurisdiction, and do not 
anticipate making another extension in an appropriations act.
Sec. 575. Additional requirements relating to stockpiling of defense 
        articles for foreign countries
      The conference agreement includes language proposed by 
the Senate which in subsection (a) amends section 514(b)(2)(A) 
of the Foreign Assistance Act by authorizing additions to 
defense stockpiles for foreign countries of $60,000,000 for 
fiscal year 1998. Subsection (b) amends section 514(b)(2)(B) of 
the same act to authorize, for fiscal year 1998, not more than 
$40,000,000 for stockpiles in the Republic of Korea and not 
more than $20,000,000 for stockpiles in Thailand. The House 
bill did not contain a provision on this matter.
Sec. 576. Delivery of drawdown by commercial transportation services
      The conference agreement includes Senate language which 
amends section 506 of the Foreign Assistance Act of 1961, as 
follows: (1) requires a report to Congress detailing all 
defense articles, defense services, and military education and 
training delivered to a recipient country or international 
organization upon delivery of such articles or upon completion 
of such services, including whether any savings were realized 
by utilizing commercial transport services; and (2) authorizes, 
as part of any drawdown of defense or other articles or 
commodities, that such drawdown may include the supply of 
commercial transportation and related services that are 
acquired by contract for the purposes of the drawdown in 
question if the cost to acquire such commercial transportation 
and related services is less than the cost to the United States 
Government of providing such services from agency assets. The 
House bill did not contain a provision on this matter.
Sec. 577. To prohibit foreign assistance to the Government of Russia 
        should it implement laws which would discriminate against 
        minority religious faiths in the Russian Federation
      The conference agreement inserts a new provision instead 
of language proposed by the Senate. The House did not address 
this matter.
      The conference substitute is effective 150 days after 
enactment. Upon its effective date, the President is allowed 30 
days to certify the Congress that the Government of the Russian 
Federation has not implemented any measure that discriminates 
against religion in violation of international agreements that 
include Russia. In the absence of such certification, funds 
appropriated under the Act may not be obligated for the 
Government of the Russian Federation.
      The managers note continued Congressional concern over 
the issue of religious freedom in the Russian Federation. 
Despite the personal intervention of the Vice President and 
many members of Congress, President Yeltsin signed into law a 
measure which could threaten religious freedom in Russia.
      The conferees consider implementation of the new law on 
religion by national, regional, and local entities in Russia to 
be the determining factor regarding religious freedom. The 
operative phase in this section should be interpreted by the 
Administration as giving it discretion to determine if the 
Russian government's actions are discriminatory.
      The conferees acknowledge the advances that the Russian 
Federation has made in the areas of human rights and democratic 
political reforms. Congress has saluted its past willingness to 
allow freedom of speech, assembly, and religion. The managers 
remain optimistic that religious diversity and freedom of 
religious expression can survive in the Russian Federation.
Sec. 578. U.S. policy regarding support for countries of the South 
        Caucasus and Central Asia
      The conference agreement includes Senate language 
supporting the development of strong political and economic 
ties between countries of the Southern Caucasus and Central 
Asia regions and the West; the language also addresses United 
States policy with regard to the independence of Southern 
Caucasus and Central Asia republics and resolutions of regional 
conflicts.
Sec. 579. Pakistan
      The conference agreement includes language proposed by 
the Senate to amend section 239(f) of the Foreign Assistance 
Act of 1961 to exempt the Overseas Private Investment 
Corporation from provisions in the Foreign Assistance Act 
prohibiting OPIC activity in Pakistan and expressing the sense 
of the Congress that the Director of the Trade and Development 
Agency should ``use funds made available'' to promote United 
States exports to Pakistan. The conference agreement deletes 
language proposed by the Senate to amend section 638(b) of the 
Foreign Assistance Act of 1961 to exempt Pakistan from 
prohibitions on certain training activities. The House bill did 
not address this matter.
Sec. 580. Requirements for the reporting to Congress of the costs to 
        the Federal Government associated with the proposed agreement 
        to reduce greenhouse gas emissions
      The conference agreement includes Senate language, except 
for a date change, requiring the President to report on federal 
expenditures for climate and global change programs and 
activities. The report is required by November 15, 1997, rather 
than October 15, 1997, as in the Senate amendment. The House 
bill did not address the matter. The managers are concerned 
about the Administration's failure to comply with a similar 
information request in the fiscal year 1997 Foreign Operations, 
Export Financing and Related Programs Appropriations Act.
Sec. 581. Authority to issue insurance and extend financing
      The conference agreement includes Senate language 
extending the operations of the Overseas Private Investment 
Corporation for two additional years within an overall credit 
ceiling of $29,000,000,000. It does not include a Senate 
provision extending the operations of the Export-Import Bank.
Sec. 582. Withholding assistance to countries violating United Nations 
        sanctions against Libya
      The conference agreement language is similar to that in 
the Senate amendment requiring the President to withhold 5 
percent of the funds (other than humanitarian and development 
assistance) allocated to any country that is violating 
sanctions against Libya. The language also includes a provision 
to allow the President to waive this section if he determines 
that to do so is in the national security interest of the 
United States.
      If the President exercises his waiver authority under 
this section, the determination is to be provided in writing to 
the Committees on Appropriations.
Sec. 583. War crimes prosecution
      The conference agreement includes language similar to 
that in the Senate amendment that amends the War Crimes Act of 
1996. The language is identical to the language of H.R. 1348, 
which passed the House of Representatives on July 29, 1997. 
This provision defines war crimes for the purposes of the War 
Crimes Act. The House bill did not address this matter.
Sec. 584. International military education and training programs for 
        Latin America
      The conference agreement includes language similar to 
that proposed by the Senate which provides that the Secretary 
of Defense, in consultation with the Secretary of State, should 
make every effort to ensure that approximately 30 percent of 
IMET funds for Latin America will be used to support enrollment 
in expanded IMET courses. In addition the conference agreement 
provides that the Secretary of State, in consultation with the 
Secretary of Defense, should identify sufficient numbers of 
qualified, nonmilitary personnel from countries in Latin 
America so that approximately 25 percent of the total number of 
individuals from Latin American countries attending United 
States supported IMET programs and the Center for Hemispheric 
Defense Studies at the National Defense University are 
civilians. Not later than twelve months after the date of 
enactment of this Act, the Secretary of Defense, in 
consultation with the Secretary of State, shall report in 
writing to the appropriate committees of the Congress on the 
progress made to improve military training of Latin American 
participants in the areas of human rights and civilian control 
of the military. The Secretary shall include in the report 
plans for implementing additional expanded IMET programs for 
Latin America during the next three fiscal years.
      The House bill did not contain a provision on this 
matter.
Sec. 585. Aid to the Government of the Democratic Republic of Congo
      The conference agreement modifies Senate language 
regarding assistance to the Democratic Republic of Congo. It 
would prohibit assistance to the central government of the 
Democratic Republic of Congo until the President reports that 
said government is cooperating fully with investigators from 
the United Nations in accounting for human rights violations 
committed in the Democratic Republic of Congo or adjacent 
countries. The House bill did not contain a provision on this 
matter.
Sec. 586. Assistance for the Middle East
      The conference agreement inserts language which provides 
that of the funds appropriated by this Act under the headings 
``Economic Support Fund'', ``Foreign Military Financing'', 
``International Military Education and Training'', 
``Peacekeeping Operations'', for refugees resettling in Israel 
under the heading ``Migration and Refugee Assistance'', and for 
assistance for Israel to carry out provisions of chapter 8 of 
part II of the Foreign Assistance Act of 1961 under the heading 
``Nonproliferation, Anti-Terrorism, Demining, and Related 
Programs'', not more than a total of $5,402,850,000 may be made 
available for Israel, Egypt, Jordan, Lebanon, the West Bank and 
Gaza, the Israel-Lebanon Monitoring Group, the Multinational 
Force and Observers, the Middle East Regional Democracy Fund, 
Middle East Regional Cooperation, and Middle East Multilateral 
Working Groups, unless the President determines and certifies 
to the Committees on Appropriations that it is important to the 
national security interest of the United States to exceed 
$5,402,850,000 and any such additional funds shall only be 
provided through the regular notification procedures of the 
Committees on Appropriations. The conference agreement also 
includes language which would prevent the use of prior year 
funds in the accounts listed in this section but allocated for 
recipients outside of the Middle East region to fund programs 
covered by the limitation on funds for Middle East countries 
and activities required by this section. The conferees included 
this provision in order to make certain that prior year funds 
for other regions such as Africa and Latin America would not be 
used to support Middle East related activities.
Sec. 587. Agriculture
      The conference agreement modifies subsection (k) under 
the heading ``Assistance for the New Independent States of the 
Former Soviet Union'' in the Foreign Operations, Export 
Financing and Related Programs Act, 1997, by striking ``not 
less that'' and inserting ``up to'' with regard to $35,000,000 
made available for agricultural projects, including those 
undertaken through the Food Systems Restructuring Program.
Sec. 588. Enterprise fund restrictions
      The conference agreement includes a modification to 
Senate language limiting payments to enterprise fund personnel. 
the conferees agree to limit certain forms of future 
compensation unless notified in advance by the Committee on 
Appropriations.
Sec. 589 Cambodia
      The conference agreement includes language stating the 
Secretary of the Treasury should instruct the United States 
Executive Directors of international financial institutions to 
use the voice and vote of the United States to oppose loans to 
the Government of Cambodia. The language is similar to that 
included in the House bill and the Senate amendment.
Sec. 591. Development credit authority
      The conference agreement provides $7,500,000 for a new 
enhanced credit authority and $500,000 to be derived from AID 
operating expenses. The managers intend for the credit facility 
to fund a program in the Russian Far East providing market rate 
loans and guarantees to finance non-sovereign and sovereign 
development projects. These projects shall concentrate on 
development of the energy sector, telecommunications and 
infrastructure requirements, especially improvements to ports. 
The managers believe U.S. expertise, technology and services 
have the potential to make a significant contribution to the 
development of the region's vast natural resources while 
generating income, jobs and economic growth. The managers 
believe this credit facility should complement resources and 
activities provided by U.S. trade promotion agencies to the 
private sector.
      No later than 60 days after the date of enactment of this 
Act, the managers request a report from the Coordinator of 
Assistance for the New Independent State clarifying a 
development strategy for the Russian Far East including an 
evaluation of the current and potential contribution of each 
agency funded by this Act.
Sec. 592. Authorization for population planning
      The conference agreement includes House language limiting 
to $385,000,000 the funds available under title II of this Act 
for population planning activities or other population 
assistance. The Senate included a separate appropriations 
account for these activities at a level of $435,000,000. The 
conference agreement also includes language providing for 
monthly apportionments for this funding at a level of not to 
exceed 8.34 percent.

                          Cash Flow Financing

      The conference agreement strikes language proposed by the 
House requiring that FMF procurements in excess of $100,000,000 
which are approved for cash flow financing shall be subject to 
notification. A similar notification requirement is included in 
permanent law (Public Law 104-164). The Senate bill contained 
no provision on this matter.

    Restrictions on the Termination of Sanctions Against Serbia and 
                               Montenegro

      The conference agreement does not include language from 
the Senate amendment prohibiting the lifting of sanctions, 
prohibitions, or requirements of section 1511 of Public Law 
103-160 regarding Serbia or Montenegro unless certain specified 
conditions are met. The House bill contained no provision on 
this matter.

                       Use of American Resources

      The conference agreement deletes House language regarding 
the use of American resources. However, this provision has been 
merged in its entirely with section 546 of the conference 
agreement.

                               Guatemala

        The conference agreement strikes both the House and 
Senate language and includes under the heading ``International 
Military Education and Training'' language limiting Guatemala 
to expanded IMET only.

                              North Korea

        The conference agreement deletes language proposed by 
the House which requires the Secretary of State, in 
consultation with the Secretary of Defense, to submit 
semiannual reports to the Committees on Appropriations on the 
status of the North Korean military. This report is already 
required in permanent law. The Senate bill did not contain a 
similar provision.

   Sense of the Congress Relating to International Adoption Laws and 
                         Practices of Paraguay

        The conference agreement deletes a Sense-of-the-
Congress resolution dealing with the plight of Americans 
seeking to adopt children in Paraguay. The managers have been 
informed by the Department of State that the Secretary has 
become personally involved in this matter, and that a new 
adoption law is expected to be passed in Paraguay at any time. 
The Senate amendment did not contain a provision on this 
matter.

 Withholding of Assistance to Agency Supporting Nuclear Power Plant in 
                                  Cuba

        The conference agreement strikes language proposed by 
the House which would prohibit funds under the heading 
``Nonproliferation, Antiterrorism, Demining, and Related 
Programs'' that are made available for the International Atomic 
Energy Agency from being made available for programs and 
projects in Cuba. The Senate bill had no similar provision. The 
conferees remain convinced that the Juragua nuclear facility in 
Cuba is extremely unsafe and should not be completed. The 
conferees therefore direct the Secretary of State, prior to the 
obligation of funds for the IAEA, to certify to the Committees 
on Appropriations that none of the funds provided will be used 
to facilitate the activation of the Juragua nuclear plant in 
Cuba.

         Limitation on Procurement Outside of the United States

        The conference agreement deletes House language 
restricting the use of United States funds in foreign countries 
to buy products or services, including defense articles or 
defense services, from certain other foreign nations. The 
Senate bill did not include a similar provision.

                    Authorization for NATO Expansion

        The conference agreement strikes a provision proposed 
by the House which provides that no funds in this Act may be 
used to pay for NATO expansion not authorized by law. The 
conferees note that the authorization of funds to support the 
future enlargement of NATO's is within the purview of 
responsibilities of the relevant authorization committees of 
the House and Senate. The Senate did not include a similar 
provision.

                           Transfer Amendment

        The conference agreement deletes House language that 
reduced amounts otherwise available for the Economic Support 
Fund by $25,000,000 and increased the amount available for the 
African Development Fund by the same amount.

Sense of Congress Regarding Costs of the Partnership for Peace Program 
                           and NATO Expansion

        The conference agreement strikes the House language on 
this matter, however, the conferees strongly support the intent 
of the language which states that all member nations of NATO 
should contribute their proportionate share to pay for costs of 
the Partnership for Peace program and any future costs 
attributable to NATO expansion. The conferees direct the 
Secretary of State, in consultation with the Secretary of 
Defense, to report to the appropriate committees of the 
Congress within 90 days of enactment of this Act on the efforts 
being undertaken by the United States to ensure that the United 
States does not bear an unfair or disproportionate share of the 
financial burden of NATO enlargement. The Senate amendment did 
not address this matter.

              International Financial Institution Policies

        The Senate provision relating to procurement 
opportunities available to United States suppliers and 
community participation in the planning and implementation of 
multilateral bank projects is incorporated in section 560 of 
the conference agreement.

         Excess Defense Articles for Certain European Countries

      The conference agreement deletes Senate language amending 
section 105 of Public Law 104-164 to extend the authorities of 
such section to fiscal years 1998 and 1999. The House bill did 
not contain a provision on this matter.

      Sense of the Senate Regarding Estonia, Latvia, and Lithuania

      The conference agreement does not include Sense-of-the-
Senate language regarding Estonia, Latvia, and Lithuania, 
proposed by the Senate but not addressed in the House bill. The 
conferees strongly support increased security relations between 
NATO and the Baltic nations and the conference agreement 
includes a fifty percent increase over the level requested by 
the administration in grant Foreign Military Financing 
assistance for Latvia, Lithuania and Estonia.

            Promotion of Religious Freedom and Human Rights

      The conference agreement does not include language 
proposed by the Senate, but not addressed in the House bill, 
regarding an annual report on religious persecution and 
establishing a Prisoner Information Registry. In addition, the 
Senate language contained a provision expressing the Sense of 
the Congress that a Commission on Security and Cooperation in 
Asia should be established.
      The managers agree to defer to Leadership initiatives to 
move freestanding legislation on the major issue of religious 
freedom.

   United States Intelligence Activities Related to Monitoring Human 
                Rights Abuses and Religious Persecution

      The conference agreement deletes Senate language 
requiring the President to undertake additional reporting to 
the Intelligence Committees. The managers defer to the 
committees of jurisdiction in this matter.

Sense of the Senate on the European Commission's Handling of the Boeing 
                      and McDonnell Douglas Merger

      The conference agreement deletes Senate language 
expressing the Sense of the Senate regarding European 
objections to a merger of two major American firms. The House 
bill did not contain a provision on this matter.

   Use of Funds for the United States-Asia Environmental Partnership

      The conference agreement deletes Senate language 
authorizing, notwithstanding any other provision of law, funds 
to be made available for activities in the People's Republic of 
China through the United States-Asia Environmental Partnership 
program. The House bill did not address this matter.

                    Liberation Tigers of Tamil Eelam

      The conference agreement deletes Senate language 
expressing the Sense of the Senate that the State Department 
should list the Liberation Tigers of Tamil Ecelam as a 
terrorist organization. The House bill did not address this 
matter.

Limitation on International Military Education and Training Assistance 
                                for Peru

      The conference agreement deletes language proposed by the 
Senate prohibiting IMET funds for Peru unless the President 
certifies that the Government of Peru is taking all necessary 
steps to ensure that United States citizens held in prisons in 
Peru are accorded timely, open and fair legal proceedings in 
civilian courts. The House bill did not contain a similar 
provision.
      The conferees direct the Secretary of State, the 
Secretary of the Treasury, and the Administrator of the Agency 
for International Development to use the diplomatic and 
financial resources and influence available to them to 
encourage the Government of Peru to take all necessary steps to 
ensure that United States citizens held in prisons in Peru are 
treated humanely and accorded timely, open and fair legal 
proceedings in civilian courts. The conferees request that, no 
later than March 1, 1998, the Secretary of State submit a 
report to the Committees on Appropriations describing the 
Administration's efforts to achieve these ends and the response 
of the Government of Peru.

                   conference total--with comparisons

      The total new budget (obligational) authority for the 
fiscal year 1998 recommended by the Committee of Conference, 
with comparisons to the fiscal year 1997 amount, the 1998 
budget estimates, and the House and Senate bills for 1998 
follow:

New budget (obligational) authority, fiscal year 1997... $12,311,119,710
Budget estimates of new (obligational) authority, fiscal 
    year 1998...........................................  16,888,168,980
House bill, fiscal year 1998............................  12,311,414,980
Senate bill, fiscal year 1998...........................  16,859,708,000
Conference agreement, fiscal year 1998..................  13,190,968,080
Conference agreement compared with:
    New budget (obligational) authority, fiscal year 
      1997..............................................    +879,848,370
    Budget estimates of new (obligational) authority, 
      fiscal year 1998..................................  -3,697,200,900
    House bill, fiscal year 1998........................    +879,553,100
    Senate bill, fiscal year 1998.......................  -3,668,739,920

                                   Sonny Callahan,
                                   John Edward Porter,
                                   Ron Packard,
                                   Joe Knollenberg,
                                   Mike Forbes,
                                   Jack Kingston,
                                   R.P. Frelinghuysen,
                                   Bob Livingston,
                                   Nancy Pelosi,
                                   Sidney R. Yates,
                                   Nita M. Lowey,
                                   Esteban E. Torres,
                                   David Obey,
                                 Managers on the Part of the House.
                                   Mitch McConnell,
                                   Arlen Specter,
                                   Judd Gregg,
                                   Richard Shelby,
                                   R.F. Bennett,
                                   Ben Nighthorse Campbell,
                                   Ted Stevens,
                                   Thad Cochran,
                                   Patrick J. Leahy,
                                   Daniel K. Inouye,
                                   Frank R. Lautenberg,
                                   Tom Harkin,
                                Managers on the Part of the Senate.