[Congressional Bills 103th Congress] [From the U.S. Government Publishing Office] [H.R. 2404 Engrossed in House (EH)] 103d CONGRESS 1st Session H. R. 2404 _______________________________________________________________________ AN ACT To authorize appropriations for foreign assistance programs, and for other purposes. 103d CONGRESS 1st Session H. R. 2404 _______________________________________________________________________ AN ACT To authorize appropriations for foreign assistance programs, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Foreign Assistance Authorization Act of 1993''. SEC. 2. TABLE OF CONTENTS. The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. TITLE I--REFORM OF FOREIGN ASSISTANCE PROGRAMS Sec. 101. Need for foreign assistance reform. Sec. 102. Evaluation and accountability. Sec. 103. Economic assistance reform. TITLE II--AUTHORIZATIONS FOR FOREIGN ASSISTANCE PROGRAMS Sec. 201. Authorizations of appropriations for fiscal year 1994. Sec. 202. Child survival activities and Vitamin A Deficiency Program and related activities. Sec. 203. Housing guarantee program. Sec. 204. Overseas Private Investment Corporation. Sec. 205. Special debt reduction authority. Sec. 206. Special Defense Acquisition Fund. TITLE III--REGIONAL PROVISIONS Sec. 301. Sub-Saharan Africa disaster assistance. Sec. 302. African Development Foundation. Sec. 303. Conflict resolution initiative for Africa. Sec. 304. SADC projects. Sec. 305. South Africa. Sec. 306. Sudan. Sec. 307. Zaire. Sec. 308. Afghanistan humanitarian assistance. Sec. 309. Multilateral Assistance Initiative for the Philippines. Sec. 310. Assistance for Eastern Europe and the Baltics. Sec. 311. Assistance for the independent states of the former Soviet Union. Sec. 312. Assistance for Mongolia. Sec. 313. Termination of IMET program for Malta. Sec. 314. Administration of justice and other law enforcement assistance programs for Latin America and the Caribbean. Sec. 315. Waiver of Brooke amendment for Nicaragua. Sec. 316. Special notification requirements for Guatemala and Peru. Sec. 317. Assistance for the Middle East. Sec. 318. Military drawdown for Israel. Sec. 319. Termination of IMET program for India. TITLE IV--PROVISIONS RELATING TO ARMS TRANSFERS Sec. 401. Competitive pricing for sales of defense articles and services. Sec. 402. Increase in aggregate ceiling on transfers of excess defense articles. Sec. 403. Eligibility of East European countries to receive nonlethal excess defense articles. Sec. 404. Exception to payment of full cost for sales of defense training services to certain countries and international organizations. Sec. 405. Eligibility of major non-NATO allies to receive certain contract services in connection with sales of defense articles and services. Sec. 406. Additions to war reserve stockpiles for allies. Sec. 407. Arab boycott. TITLE V--OTHER FOREIGN ASSISTANCE PROVISIONS Sec. 501. Interest accruing to nongovernmental organizations. Sec. 502. Private Sector Revolving Fund. Sec. 503. Development assistance through nongovernmental organizations. Sec. 504. Impact of foreign assistance programs on jobs in the United States. Sec. 505. Capital projects. Sec. 506. Microenterprise development. Sec. 507. Report on AID's implementation of Agenda 21 principles. Sec. 508. Authority to provide reconstruction assistance under international disaster assistance. Sec. 509. Deobligation of certain unexpended economic assistance funds. Sec. 510. Procurement. Sec. 511. Violations of terms of assistance. Sec. 512. Foreign aid reporting requirement. Sec. 513. Disadvantaged enterprises. Sec. 514. Prohibition on security assistance to countries that consistently oppose the United States position in the United Nations General Assembly. TITLE VI--BOSNIA-HERCEGOVINA Sec. 601. Short title. Sec. 602. Findings. Sec. 603. United States arms embargo of the Government of Bosnia- Hercegovina. Sec. 604. United States military assistance for Bosnia-Hercegovina. Sec. 605. Authority of the Secretary of Defense. TITLE VII--MISCELLANEOUS PROVISIONS Sec. 701. Deployment of U.N. troops to Kosovo. Sec. 702. Increase in CSCE observer missions in Kosovo. TITLE I--REFORM OF FOREIGN ASSISTANCE PROGRAMS SEC. 101. NEED FOR FOREIGN ASSISTANCE REFORM. (a) Need for Reform.--The Congress-- (1) remains convinced that United States foreign assistance programs and the Agency for International Development are in need of immediate reform; and (2) remains prepared to enact reform legislation in time for the fiscal year 1995 authorization and appropriations cycle. (b) Comprehensive Reform Plan.--To facilitate this reform process, the President shall submit to the Congress, within 60 days after the date of enactment of this Act, a plan for comprehensive reform of United States foreign assistance programs and of the agency primarily responsible for administering part I of the Foreign Assistance Act of 1961. SEC. 102. EVALUATION AND ACCOUNTABILITY. Section 125 of the Foreign Assistance Act of 1961 is amended to read as follows: ``SEC. 125. EVALUATION AND ACCOUNTABILITY. ``(a) Need for Evaluation.--In order to effectively and responsibly manage the resources with which it is provided, the agency primarily responsible for administering this part must have a capacity to evaluate objectively the extent of its progress in achieving development results and to derive lessons from its development experience. ``(b) Actions To Be Taken.--In furtherance of subsection (a), the President shall establish a program performance, monitoring, and evaluation capacity within the agency primarily responsible for administering this part that will do the following: ``(1) Enhance, through training and other means, the use of program performance, monitoring, and evaluation as a management tool, by both the agency and its counterparts in countries receiving assistance, in the planning, designing, and implementation of foreign assistance projects and programs. ``(2) Develop a program performance information system to afford agency managers at all levels a means for monitoring and assessing achievement of impact and interim performance of the agency's major programs in support of the strategic management of economic assistance. ``(3) Prepare and disseminate objective and periodic reports on the progress of the agency in meeting development objectives and on lessons learned from its development programs. ``(4) Strengthen the capacity to utilize the findings of program performance, measurement, and evaluation in decisions of the agency about program direction and resource allocation. ``(5) Coordinate with the Inspector General of the agency so as to ensure appropriate complementarity of efforts, recognizing that-- ``(A) it is the responsibility of the agency to direct a system of performance measurement and independent evaluations of its programs and policies, as well as the operational and management systems that affect the development impact of those programs and policies; and ``(B) it is the responsibility of the Inspector General to conduct regular and comprehensive assessments and audits of financial management and administrative systems, including the adequacy of the systems for monitoring and evaluating agency projects and programs. ``(c) Accountability.--The President shall prepare an annual report to the Congress as a separate part of the congressional presentation materials of the agency primarily responsible for administering this part. This report shall include the following: ``(1) An assessment of progress toward the achievement of sustainable development objectives, based on the findings of program performance, monitoring, and evaluation studies conducted by the agency and on such other empirical analyses as may be appropriate. ``(2) An analysis, on a country-by-country basis, of the impact on economic development in each such country during the preceding 3 to 5 fiscal years of United States economic assistance programs, with a discussion of the United States interests that were served by the assistance. Each country receiving economic assistance under this part or under the Support for East European Democracy (SEED) Act of 1989 shall be included in such an analysis at least once every 5 years. For each country, the analysis shall-- ``(A) describe the specific objectives the United States sought to achieve in providing economic assistance, and specify the extent to which those objectives were or were not achieved; ``(B) to the extent possible, be done on a sector- by-sector basis and identify trends (both favorable and unfavorable) within each sector and, if relevant, identify any economic policy reforms conducive to sustainable economic growth that were promoted by the assistance and the progress being made by the country in adopting economic policies that foster and enhance the freedom and opportunity of individuals to participate in economic growth in the country; ``(C) as part of the context of United States economic assistance, describe the amount and nature of economic assistance provided by other major donors during the preceding 3 to 5 fiscal years, set forth by the development sector to the extent possible; and ``(D) contain statistical and other information necessary to evaluate the impact and effectiveness of United States economic assistance on development in the country.''. SEC. 103. ECONOMIC ASSISTANCE REFORM. (a) Basic Objectives.--Section 102 of the Foreign Assistance Act of 1961 is amended to read as follows: ``SEC. 102. BASIC OBJECTIVES OF ECONOMIC ASSISTANCE PROGRAMS AND UNITED STATES DEVELOPMENT COOPERATION POLICY. ``(a) Four Basic Objectives.--The primary purpose of United States economic assistance is the promotion of broad based, sustainable, participatory development, with particular focus on the poor. In pursuit of that purpose, economic assistance programs to the extent specified in this Act, and United States economic cooperation policy generally, shall have the following four basic objectives, which are interrelated and mutually reinforcing: ``(1) Sustainable economic growth.--Promotion of broad based economic growth. ``(2) Sustainable resource management.--Improvement of resource management designed to bring about environmentally and economically sustainable patterns of development. ``(3) Poverty alleviation.--Alleviation of the worst manifestations of poverty through the development of human resource capacity. ``(4) Democracy.--Promotion of democracy, respect for human rights, and social and economic pluralism. ``(b) Sustainable Economic Growth.-- ``(1) Rationale.--Broad based, sustainable economic growth is in the interest of the United States because it permits countries to progress toward economic self-reliance, to improve the living standards of their citizens, and to increase international markets for trade and investment. Market-oriented economic growth establishes the basis for sustainable development and reinforces democratic ideals and practices. Successful long-term development cannot occur without broad based, sustainable economic growth that enables the poor to increase their incomes and access to productive resources and services so that they can satisfy their basic needs and lead lives of decency, dignity, and hope. ``(2) Elaboration on objective.--(A) Implementation of the objective of promoting broad based economic growth should recognize that economic, social, political, and environmental conditions vary among countries. While taking account of such differences, the economic assistance programs carried out in furtherance of the four basic objectives set forth in this section shall emphasize the following principles: ``(i) Security of economic rights for all citizens without regard to sex, race, religion, language, or social status, including the right to own property, the right to fair return from one's labor, and the right to engage in productive use of available assets. ``(ii) Economic policies based on free market principles as a means for establishing prices and for allocating goods and services. ``(iii) Economic reforms that benefit or are sensitive to and minimize adverse impact on the poor. ``(iv) Market base reforms--deregulation, privatization, labor market reform, reduction in barriers to the free flow of trade and investment-- which increase the opportunity for all, especially the poor, to participate in economic activity. ``(v) Government policies protecting economic rights, fair and open markets, and the fulfillment of basic human needs. ``(vi) Adherence by governments to international economic agreements, particularly those relating to free and fair trade practices and to respect for worker rights. ``(B) A primary test of the effectiveness of economic assistance programs designed to promote broad based economic growth is the extent to which the poor and disenfranchised can participate in and benefit from these programs and are thereby brought into the development process. ``(c) Sustainable Resource Management.-- ``(1) Rationale.--The economic and social well-being and the security of the United States and other countries are affected by how the world's environment and physical resource base are managed. Consumption patterns, systems of industrial and agricultural production, demographic trends, and the manner of use of natural resources all impact on the opportunities for long-term development and growth and survival for all countries. Both developed and developing countries share responsibility for the rational and sustainable management of natural resources. Responsible management of physical resources is necessary to insure the availability of resources for future generations and to assure that the burdens of improved resource management do not fall disproportionately on the poor. ``(2) Elaboration of objective.--(A) Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Economic assistance programs authorized by this title should assist countries to adopt policies and programs that promote ecologically sound patterns of growth. Improved resource management tailored to the conditions and capabilities of the particular developing countries should be an integral part of all planning, programming, and reporting activities with respect to economic assistance. ``(B) Sustainable resource management should be promoted through research and through the establishment and implementation of public policies and programs that provide incentives for better long-term management of resources and private and public investment toward resource-conserving technologies of production in energy, agricultural, and industrial production. To achieve this objective will entail, among other things-- ``(i) more efficient and resource-conserving systems of sustainable agricultural production, with special emphasis on rain-fed agriculture, maintenance of soil structure and fertility, and minimization of soil erosion and soil and water contamination; ``(ii) adoption of appropriate use of fertilizer and pesticides; ``(iii) greater attention to forestry management for sustainable yields, agroforestry, reforestation, and watershed conservation, including better resource monitoring and assessment systems; ``(iv) improved water use management, including watershed protection, sustainable and efficient irrigation projects, and efforts to reduce costs and improve delivery of potable water and sanitation systems for both urban and rural areas; ``(v) more systematic collection, preservation, and sharing of original and evolved plant and animal genetic material, including preservation of ecosystems and natural habitats; ``(vi) attention to more efficient management of existing energy systems, to the promotion of increased use of least-cost energy resource planning procedures, and to the development of economically viable and more efficient systems of energy production and consumption that seek to maximize resource conservation; ``(vii) attention to resource conserving systems of urban development and industrialization that make efficient use of energy and natural resources, minimize the adverse effects of air and water pollution, facilitate safe waste disposal, including toxic wastes, and provide for improved environmental health and safety of the urban and surrounding rural populations; ``(viii) efforts to analyze and to reduce man-made contributions to changes in the global climate, including factors that may be contributing to global warming in the Earth's atmosphere; and ``(ix) greater attention to the relationships among demographic pressures, poverty, and environmental degradation. ``(C) Growth that is not environmentally sustainable cannot be economically sustainable in the long run. Improved resource management is a critical element of a balanced pattern of development. ``(d) Poverty Alleviation.-- ``(1) Rationale.--It is in the interest of the United States to assist developing countries to achieve patterns of growth and development that will measurably and sustainably alleviate the worst manifestations of poverty in rural and urban areas and allow all people, especially those with low incomes, to lead economically and socially productive lives. As a people endowed with a spirit of humanitarian generosity, United States citizens have long demonstrated a moral imperative to help those in need. Further, peace and stability in the world cannot be achieved without economic development that also alleviates the worst manifestations of poverty. ``(2) Elaboration of objective.--(A) Broad based economic growth is necessary for the alleviation of the worst manifestations of poverty. Conversely, neither growth nor the alleviation of poverty can be sustained unless all people, especially the poor, have the basic assets and capabilities that foster the exercise of choice and participation in the economic, social, and political life of the country. Women, female children, and children of poor people have been especially disadvantaged in their access to these assets. Governments, together with nongovernmental organizations and international and multilateral organizations, should give special attention to alleviating the worst manifestations of poverty among these groups. Long-term poverty alleviation depends on patterns of broad based economic growth and the productivity generated by investments in the expansion of human well-being, capacity, and choice. ``(B) To achieve the objective of alleviating the worst manifestations of poverty will entail, among other things-- ``(i) the expansion of education to all segments of the society, with particular attention to universal access to basic education, to sustainable improvement in the quality and diversity of educational opportunity, and to female education at all age levels; ``(ii) improvement in coverage, quality, and sustainability of health services, with special emphasis on universal access to primary health care, epidemiological detection and prevention programs, and sustainable systems of health care for mothers and children; ``(iii) a consistent program of support for systematic expansion of voluntary family planning services, with special emphasis on the role of the private voluntary and commercial sectors as providers of such services and on the development of more effective, acceptable family planning technologies appropriate to the conditions of developing countries; ``(iv) support for activities that enhance secure access of all to adequate food and nutrition derived from sustainable agricultural production, including the effectiveness and development contribution of food assistance made available under the Agricultural Trade Development and Assistance Act of 1954 and other food assistance programs; and ``(v) support for activities that enhance universal access to safe drinking water, basic sanitation, and basic shelter necessary for health. ``(e) Democracy.-- ``(1) Rationale.--The promotion of democracy throughout the world is in the basic interest of the United States. Democratic development, political pluralism, and respect for internationally recognized human rights are intrinsically linked to economic and social progress. Democracy can only be sustained in a society in which the legitimacy of the government rests firmly on the expressed consent of the governed; the rights of all citizens, including minorities, are respected and protected; and there is effective civilian control over the military and security forces. It is in the interest of the United States and in keeping with our democratic traditions to support democratic aspirations and values, foster the spread of democratic institutions, and encourage universal respect for civil and political liberties. ``(2) Elaboration on objective.--(A) Furtherance of the basic objective of democracy requires that the United States promote-- ``(i) the ability of all citizens of a country to organize and associate freely and independently of the government; ``(ii) the ability of all citizens to freely choose their government, to hold that government accountable, and to participate in political life; ``(iii) increased respect for internationally recognized human rights and the rule of law; ``(iv) respect for the diversity among the citizens of a country; and ``(v) acceptance of and respect for civilian authority by all elements of society. ``(B) An essential ingredient of development is the growth of indigenous nongovernmental organizations that are committed to democratic values and active in the promotion of democracy. United States efforts to foster democratic pluralism and build democratic institutions are most likely to create enduring bonds of democratic cooperation when United States nongovernmental organizations are involved in strengthening the capacity of nongovernmental organizations in other countries. ``(C) Democracy requires honest and open participatory government. United States assistance should help governments to establish processes of accountability and transparency to eliminate corruption and abuses of power and assist nongovernmental organizations to develop the capability to monitor the government's performance. ``(D) With regard to economic assistance under this Act or the Support for East European Democracy (SEED) Act of 1989 for countries that are in transition from communism to democracy, it shall be the policy of the United States, to the extent feasible, to provide assistance directly to democratically elected governments of states whose incorporation into the Union of Soviet Socialist Republics has never been recognized by the United States: Provided, That economic assistance to Yugoslavia otherwise authorized by law shall not be prohibited as a consequence of this provision. As used in this subparagraph, the term `democratically elected' means elected through open, free, and fair elections. Nothing in this paragraph shall be construed to preclude assistance to agencies of such federal governments that promote democratic reforms, human rights, the rule of law, and/or market oriented reforms, provided that funds are not provided directly to any such agency. ``(f) Effective Uses of Assistance.-- ``(1) Beneficiary countries.--Assistance furnished under this title should be concentrated in countries that will make the most effective use of that assistance in promoting the four basic objectives set forth in subsection (a). ``(2) Assistance within countries.--Activities should be undertaken in regions of recipient countries that offer potential for successful development and should not be undertaken if the relevant sector or national economic policies of the country are clearly unfavorable to the sustainability or broadest possible impact of the assisted program or project. ``(3) Types of activities.--Assistance should focus on those types of activities that the United States can provide most effectively.''. (b) Repeal of Development Assistance Authorities.--Effective October 1, 1995, sections 103 through 107 of the Foreign Assistance Act of 1961 are repealed. TITLE II--AUTHORIZATIONS FOR FOREIGN ASSISTANCE PROGRAMS SEC. 1201. AUTHORIZATIONS OF APPROPRIATIONS FOR FISCAL YEAR 1994. (a) Economic Assistance.--There are authorized to be appropriated for fiscal year 1994 the following amounts for the following purposes: (1) Development assistance fund.--$850,000,000 to carry out sections 103 through 106 of the Foreign Assistance Act of 1961. (2) Population, development assistance.--$395,000,000 to carry out section 104(b) of the Foreign Assistance Act of 1961. (3) Development fund for africa.--$900,000,000 to carry out chapter 10 of part I of the Foreign Assistance Act of 1961. (4) International disaster assistance.--$148,965,000 to carry out section 491 of the Foreign Assistance Act of 1961. (5) American schools and hospitals.--$35,000,000 to carry out section 214 of the Foreign Assistance Act of 1961. (6) Multilateral assistance initiative for the philippines.--$30,000,000 for assistance for the Philippines under chapter 4 of part I of the Foreign Assistance Act of 1961. (7) Assistance for eastern europe and the baltic states.-- $400,000,000 for economic assistance for Eastern Europe and the Baltic states under the Foreign Assistance Act of 1961 and the Support for East European Democracy (SEED) Act of 1989. (8) Assistance for the independent states of the former soviet union.--$903,820,000 to carry out chapter 11 of part I of the Foreign Assistance Act of 1961 and to carry out exchanges and training and similar programs under section 807 of the Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support Act of 1992. (9) Inter-american foundation.--$30,960,000 to carry out section 401 of the Foreign Assistance Act of 1969. (10) African development foundation.--$18,000,000 to carry out the African Development Foundation Act. (11) International fund for ireland.--$19,600,000 to carry out part I of the Foreign Assistance Act of 1961, which shall be available for the United States contribution to the International Fund for Ireland in accordance with the Anglo- Irish Agreement Support Act of 1986. Amounts appropriated under this paragraph are authorized to remain available until expended. (b) Security Assistance.--There are authorized to be appropriated for fiscal year 1994 the following amounts for the following purposes: (1) Foreign military financing program grants.-- $3,200,000,000 for grants under section 23 of the Arms Export Control Act. Funds made available under this paragraph shall be nonrepayable notwithstanding any requirement of that section. (2) Foreign military financing program loans.--$57,000,000 for the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990) of loans under section 23 of the Arms Export Control Act. (3) Economic support fund.--$2,424,400,000 to carry out chapter 4 of part II of the Foreign Assistance Act of 1961. (4) International military education and training.-- $40,000,000 to carry out chapter 5 of part II of the Foreign Assistance Act of 1961. (5) Anti-terrorism assistance.--$15,555,000 to carry out chapter 8 of part II of the Foreign Assistance Act of 1961. (6) Nonproliferation and disarmament fund.--$25,000,000 to carry out section 504 of the Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support Act of 1992. (c) Peace Corps.--There are authorized to be appropriated $219,745,000 for fiscal year 1994 to carry out the Peace Corps Act. (d) Reduction in Previously Enacted Authorization For International Narcotics Control Assistance.--Section 482(a)(1) of the Foreign Assistance Act of 1961 is amended by striking ``$171,500,000'' and inserting ``$135,000,000''. (e) Rule of Construction.--In order to ensure that all otherwise applicable authorities, restrictions, and other provisions of law apply with respect to the amounts that are authorized to be appropriated by this section for fiscal year 1994, those amounts shall be deemed to be authorized to be appropriated by the provision of the Foreign Assistance Act of 1961 or other Act that provided the corresponding authorization of appropriations for prior fiscal years. (f) Reduction in Authorizations.--The amount appropriated for fiscal year 1994 pursuant to the authorizations of appropriation in this title may not exceed the amount which is $360,000,000 less than the sum of the specified authorization amounts for that fiscal year. SEC. 202. CHILD SURVIVAL ACTIVITIES AND VITAMIN A DEFICIENCY PROGRAM AND RELATED ACTIVITIES. (a) Child Survival Activities.--The Congress expects that not less than $275,000,000 of the funds made available for fiscal year 1994 to carry out part I of the Foreign Assistance Act of 1961 (relating to development and other economic assistance) will be used for child survival activities. (b) Vitamin A Deficiency Program and Related Activities.--The Congress expects that not less than $25,000,000 of the funds made available for fiscal year 1994 to carry out sections 103 through 106 of the Foreign Assistance Act of 1961 (relating to development assistance) will be made available for the Vitamin A Deficiency Program and activities relating to iodine deficiency and other micro-nutrients. SEC. 203. HOUSING GUARANTEE PROGRAM. (a) Authorizations.-- (1) Cost of guaranteed loans.--There are authorized to be appropriated $16,407,000 for fiscal year 1994 for the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990) of guaranteed loans under sections 221 and 222 of the Foreign Assistance Act of 1961. (2) Program ceiling.--Section 222(a) of that Act is amended by striking ``$2,558,000,000'' in the second sentence and inserting ``$3,000,000,000''. (3) Program expiration date.--Section 222(a) of that Act is amended by striking ``1992'' in the third sentence and inserting ``1995''. (4) Administrative expenses.--(A) There are authorized to be appropriated $8,407,000 for fiscal year 1994 for administrative expenses to carry out guaranteed loan programs under sections 221 and 222 of that Act. Amounts appropriated under this paragraph are authorized to remain available until expended. (B) Amounts appropriated under this paragraph may be transferred to and merged with the appropriations for ``Operating Expenses of the Agency for International Development''. (b) Preferential Treatment to Projects in Poorer Countries.-- Section 222 of the Foreign Assistance Act of 1961 is amended-- (1) by redesignating subsection (k) as subsection (e); and (2) by inserting after subsection (c) the following: ``(d) Preferential Consideration to Projects in Poorer Countries.-- In issuing guarantees under this section and in carrying out related activities, the President shall give preferential consideration to projects in countries with an annual per capita income of $1,196 or less in 1991 United States dollars, and shall restrict guarantees and related activities for projects in countries with an annual per capita income of $5,190 or more in 1991 United States dollars.''. (c) Fee Increase.-- (1) Study.--The administrator of the agency primarily responsible for administering part I of the Foreign Assistance Act of 1961-- (A) shall conduct a study to determine the feasibility of increasing the fees charged pursuant to section 223(a) of that Act for guarantees issued under sections 221 and 222 of that Act in an effort to reduce the costs (as defined in section 502(5) of the Federal Credit Reform Act of 1990) of the guarantee program; and (B) shall submit the results of this study to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate not later than 6 months after the date of enactment of this Act. (2) Policy.--The administrator should increase the fees described in paragraph (1)(A) to the extent determined to be feasible in the study conducted pursuant to this subsection. SEC. 204. OVERSEAS PRIVATE INVESTMENT CORPORATION. (a) Program Authorization of Fiscal Year 1995.--Section 235(a) of the Foreign Assistance Act of 1961 is amended-- (1) in paragraph (1) by striking ``$9,000,000,000'' and inserting ``$10,000,000,000''; (2) in paragraph (2)(A) by striking ``$2,500,000,000'' and inserting ``$3,500,000,000''; and (3) in paragraph (2)(B)-- (A) by striking ``and'' at the end of clause (i); (B) by striking the period at the end of clause (ii) and inserting ``; and''; and (C) by inserting after clause (ii) the following: ``(iii) to transfer such sums as are necessary from its noncredit account revolving fund to pay for the subsidy cost of a program level for the loan and loan guarantee program under subsections (b) and (c) of section 234 of $1,000,000,000 for fiscal year 1995.''. (b) Termination Date.--Section 235(a)(3) of that Act is amended by striking ``1994'' and inserting ``1995''. (c) Administrative Expenses.--Section 235(g) of that Act is amended-- (1) in paragraph (1) by striking ``and''; (2) in paragraph (2) by striking the period and inserting ``; and''; and (3) by adding at the end the following: ``(3) $15,000,000 for fiscal year 1995.''. SEC. 205. SPECIAL DEBT REDUCTION AUTHORITY. (a) Authority To Reduce Debt.--Notwithstanding any other provision of law (other than the Federal Credit Reform Act of 1990), the President may reduce amounts of principal and interest owed to the United States (or any agency of the United States) by an eligible country as a result of-- (1) guarantees issued under sections 221 and 222 of the Foreign Assistance Act of 1961; or (2) credits extended or guarantees issued under the Arms Export Control Act. (b) Implementation of Paris Club Debt Reduction.--The authority provided by this section may be exercised only to implement the multilateral official debt relief ad referendum agreements that are commonly referred to as ``Paris Club Agreed Minutes''. (c) Appropriations Requirement.--The authority provided by this section may be exercised only in such amounts or to such extent as is provided in advance by appropriations Acts in accordance with the requirements of the Federal Credit Reform Act of 1990. (d) Eligible Countries.--For purposes of this section, the term ``eligible country'' means a country that the President determines-- (1) has a heavy debt burden; and (2) is eligible to borrow from the International Development Association but not from the International Bank for Reconstruction and Development (commonly referred to as an ``IDA-only'' country). SEC. 206. SPECIAL DEFENSE ACQUISITION FUND. (a) Decapitalization.--Notwithstanding section 51(b) of the Arms Export Control Act, collections described in that section that are in excess of obligational authority provided in foreign operations, export financing, and related appropriations Acts for fiscal years prior to fiscal year 1994 shall be deposited in the Treasury as miscellaneous receipts. (b) Avoidance of Duplicative Provisions.--Subsection (a) shall not apply if the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1994, contains an identical requirement. TITLE III--REGIONAL PROVISIONS SEC. 301. SUB-SAHARAN AFRICA DISASTER ASSISTANCE. The Congress expects that not less than $100,000,000 of the funds made available for fiscal year 1994 to carry out section 491 of the Foreign Assistance Act of 1961 (relating to international disaster assistance) will be used for disaster relief, rehabilitation, and reconstruction assistance for sub-Saharan Africa. SEC. 302. AFRICAN DEVELOPMENT FOUNDATION. (a) Ceiling on Assistance for a Project.--Section 505(a)(2) of the African Development Foundation Act is amended by adding at the end the following: ``In exceptional circumstances, the board of directors of the Foundation may waive such dollar limitation with respect to a project. Any such waivers shall be reported to the Congress annually.''. (b) Authority To Employ Aliens.--Section 506(a) of that Act is amended-- (1) by redesignating paragraphs (8) through (12) as paragraphs (9) through (13), respectively; and (2) by inserting after paragraph (7) the following: ``(8) when determined by the president of the Foundation to be necessary (but subject to the limitation established by paragraph (7) on the number of Foundation employees), may employ persons who are not citizens of the United States notwithstanding any provision of law that would otherwise prohibit the use of appropriated funds to pay the compensation of officers or employees of the Government who are not citizens of the United States;''. (c) Travel Expenses.-- (1) Members of board.--Section 507(b) of that Act is amended by striking ``actual and necessary expenses not exceeding $100 per day, and for transportation expenses,'' and inserting ``travel expenses, including per diem in lieu of subsistence, in accordance with section 5703 of title 5, United States Code,''. (2) Conforming amendment.--Section 507(e)(3) of that Act is amended by striking ``and other expenses'' and inserting ``expenses, including per diem in lieu of subsistence,''. (d) Interest Accruing to Grantees.-- (1) Authority to retain.--The African Development Foundation Act is amended by adding at the end the following: ``SEC. 511. INTEREST ACCRUING TO GRANTEES. ``When, with the permission of the Foundation, funds made available to a grantee under this title are invested pending disbursement, the resulting interest is not required to be deposited in the United States Treasury if the grantee uses the resulting interest for the purpose for which the grant was made.''. (2) Effective date.--The amendment made by paragraph (1) applies to both interest earned before and interest earned after the date of enactment of this Act. SEC. 303. CONFLICT RESOLUTION INITIATIVE FOR AFRICA. (a) Improving OAU's Conflict Resolution Capabilities.-- (1) Description of assistance.--The President is authorized to provide assistance to help establish a permanent conflict resolution capability within the Organization of African Unity (referred to in this subsection as the ``OAU''), as follows: (A) Funds may be provided to the OAU for use in supporting its conflict resolution capability. (B) Funds may be used for expenses of sending individuals with expertise in conflict resolution (who may include United States Government employees) from the United States to work with the OAU for a period of up to 2 years. (C) Funds may be provided to the OAU to support the establishment and maintenance of an African Conflict Resolution Research Center that is linked to the OAU secretariat. (2) Funding.--Of the funds that are allocated for sub- Saharan Africa, not less than $1,500,000 for each of the fiscal years 1994 through 1998 should be used to carry out paragraph (1), in addition to funds otherwise available for such purpose. (3) Requirement for approval of certain reforms.-- Assistance may be provided pursuant to this subsection only if the President determines that the OAU has approved and is in the process of implementing the reforms proposed by the Secretary General of the OAU in February 1993 in the Interim Report of the Secretary General on the Mechanisms for Conflict Prevention, Resolution and Management. (b) Improving Conflict Resolution Capabilities of Multilateral Subregional Organizations.-- (1) Types of assistance to be provided.--The President is authorized to provide assistance to help establish permanent conflict resolution capabilities within subregional organizations established by countries in sub-Saharan Africa, as follows: (A) Funds may be provided to such an organization for use in supporting its conflict resolution capability. (B) Funds may be used for the expenses of sending individuals with expertise in conflict resolution (who may include United States Government employees) from the United States to work with such an organization for a period of up to 2 years. (2) Funding.--Of the funds that are allocated for sub- Saharan Africa under chapter 4 of part II of the Foreign Assistance Act of 1961 (relating to the economic support fund), up to $1,500,000 for each of the fiscal years 1994 through 1998 may be used to carry out paragraph (1). (c) African Demobilization and Retraining Program.-- (1) In general.--In order to facilitate reductions in the size of the armed forces of countries of sub-Saharan Africa, the President is authorized to provide assistance for-- (A) encampment and related activities associated with demobilization of such forces, and (B) the retraining for civilian occupations of military personnel who have been demobilized. (2) Funding.--(A) Of the funds that are allocated for sub- Saharan Africa under chapter 4 of part II of the Foreign Assistance Act of 1961 (relating to the economic support fund) and under the ``Foreign Military Financing Program'' account under section 23 of the Arms Export Control Act, $10,000,000 for fiscal year 1994 should be used for the assistance described in paragraph (1)(A). (B) A portion of the funds made available for fiscal year 1994 to carry out chapter 10 of part I of the Foreign Assistance Act of 1961 (relating to the Development Fund for Africa) may be used for the assistance described in paragraph (1)(B). (d) IMET Conflict Resolution Program.--Chapter 5 of part II of the Foreign Assistance Act of 1961 is amended by adding at the end the following: ``SEC. 546. CONFLICT RESOLUTION PROGRAM FOR AFRICA. ``In addition to the other education and training activities carried out under this chapter, the President is authorized to establish a program to provide education and training in conflict resolution for civilian and military personnel of countries in sub- Saharan Africa.''. SEC. 304. SADC PROJECTS. (a) Waiver of Brooke Amendment.--Section 620(q) of the Foreign Assistance Act of 1961 and the corresponding section of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1994, shall not apply with respect to assistance provided for fiscal year 1994 under section 496(o) of the Foreign Assistance Act of 1961 (relating to support for SADC projects). (b) Technical Amendment.--Section 496(o) of the Foreign Assistance Act of 1961 is amended-- (1) in the subsection heading by striking ``SADCC'' and inserting ``SADC''; and (2) in paragraph (1) by striking ``Coordination Conference (SADCC)'' and inserting ``Community (SADC)''. SEC. 305. SOUTH AFRICA. (a) Removal of Ceilings on Grants for Human Rights Projects.-- Section 116 of Foreign Assistance Act of 1961 is amended-- (1) by repealing subparagraphs (C) and (D) of subsection (e)(2); and (2) in subsection (f)-- (A) by repealing paragraph (2), and (B) by striking ``(f)(1)'' and inserting ``(f)'' and by redesignating subparagraphs (A) through (E) as paragraphs (1) through (5), respectively. (b) Exception to Limitation on Assistance Recipients.-- (1) Assistance under section 116.--Section 116(e)(2)(B) of that Act is amended-- (A) in the fourth sentence, by striking ``or to organizations financed or controlled by the Government of South Africa''; and (B) by adding at the end the following: ``A nongovernmental organization financed or controlled by the Government of South Africa that meets the criteria specified in this subparagraph may receive assistance under this paragraph only if the President determines that (i) the activities of that organization further the purposes of the establishment of a non-racial democratic state in South Africa, (ii) the provision of assistance to that organization will further the objective of this paragraph to assist disadvantaged South Africans, and (iii) the Government of South Africa is continuing to make progress toward dismantling apartheid and establishing a nonracial democracy. Before making such determinations, the President shall consult with the appropriate congressional committees and with South African organizations that are representative of the majority population of South Africa and should seek a commitment from the Government of South Africa that it will provide additional resources to meet the needs of disadvantaged South Africans. As used in the preceding sentence, the term `appropriate congressional committees' means the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives and the Committee on Foreign Relations and the Committee on Appropriations of the Senate.''. (2) Assistance under section 117.--Section 117 of that Act (as added by section 201(b) of the Comprehensive Anti-Apartheid Act of 1986) is amended by adding at the end the following: ``In addition, a nongovernmental organization that meets the criteria specified in the first 2 sentences of this section but receives funds from the Government of South Africa may receive assistance under this section if the President determines that such organization meets the requirements of the 5th sentence of section 116(e)(2)(B), and such determination is made in accordance with the 6th sentence of such section.''. SEC. 306. SUDAN. (a) Statement of the Congress.--The Congress-- (1) strongly condemns the Government of Sudan for its severe human rights abuses and calls upon that government to improve human rights conditions throughout the country; (2) deplores the internecine fighting among the factions of the Sudanese People's Liberation Army; (3) urges the Government of Sudan and the factions of the Sudanese People's Liberation Army to provide full access for and to cooperate with relief organizations; (4) encourages the Government of Sudan to lift the press ban which was imposed after it took power in June 1989; and (5) calls on the Government of Sudan to establish a democratic system. (b) Restrictions on Assistance.--Except as provided in subsection (c), assistance may not be provided for Sudan for fiscal year 1994-- (1) under chapter 1 or chapter 10 of part I of the Foreign Assistance Act of 1961 (relating to development assistance and the Development Fund for Africa), (2) under chapter 4 of part II of that Act (relating to the economic support fund), (3) under chapter 5 of part II of that Act (relating to international military education and training), or (4) from the ``Foreign Military Financing Program'' account under section 23 of the Arms Export Control Act. (c) Waiver of Restrictions.-- (1) Authorization.--The President may waive the prohibitions in subsection (b) if the President determines, and reports in accordance with paragraph (2), that there is substantial progress in southern Sudan toward respecting human rights, resolving the conflict in that region, establishing a democratically elected government, and establishing a reformed and independent judiciary system. (2) Congressional review of determination.--A determination under paragraph (1) shall not become effective until 15 days after it is reported to the congressional committees specified in section 634A(a) of the Foreign Assistance Act of 1961 in accordance with the procedures applicable to reprogramming notifications under that section. SEC. 307. ZAIRE. (a) Statement of the Congress.--The Congress-- (1) strongly condemns the disruptive measures taken by President Mobutu in recent months, and holds President Mobutu responsible for the current political crisis in Zaire; (2) stresses the importance of a successful transition to democracy in Zaire; (3) urges the President of the United States to pressure President Mobutu to leave Zaire so that the legitimate transitional government can proceed with the process of democratization as mandated by the Sovereign National Conference; (4) urges the President of the United States to impose, in conjunction with our allies, a variety of sanctions on President Mobutu, including-- (A) freezing the bank accounts of President Mobutu, his family and associates; (B) denying visas to President Mobutu, his family and associates; and (C) expelling Mobutu's ambassador; (5) congratulates the people of Zaire for their courageous support of democracy in the face of powerful opposition; and (6) expresses its readiness to explore further ways of providing support for democracy and political pluralism in Zaire. (b) Restrictions on Assistance.-- (1) Security assistance.--Except as provided in subsection (c), assistance may not be provided for Zaire for fiscal year 1994-- (A) under chapter 4 of part II of the Foreign Assistance Act of 1961 (relating to the economic support fund), (B) under chapter 5 of part II of that Act (relating to international military education and training), or (C) from the ``Foreign Military Financing Program'' account under section 23 of the Arms Export Control Act. (2) Development assistance.--Except as provided in subsection (c), assistance under chapter 1 or chapter 10 of part I of the Foreign Assistance Act of 1961 (relating to development assistance and the Development Fund for Africa) for fiscal year 1994 shall not be transferred to the Government of Zaire. This paragraph does not prohibit nongovernmental organizations from working with appropriate ministries or departments of the Government of Zaire. (c) Waiver When the Democratic Process Is Restored.-- (1) Authorization.--The President may waive the prohibitions in subsection (b) if the President determines, and reports in accordance with paragraph (2), that democracy has been restored in Zaire, that President Mobutu is no longer a threat to the elected government, and that the elected government is committed to bringing about freedom of expression for the people of Zaire, a reformed and independent judiciary, and reform of, and applications of the rule of law to, Zaire security forces. (2) Congressional review of determination.--A determination under paragraph (1) shall not become effective until 15 days after it is reported to the congressional committees specified in section 634A(a) of the Foreign Assistance Act of 1961 in accordance with the procedures applicable to reprogramming notifications under that section. SEC. 308. AFGHANISTAN HUMANITARIAN ASSISTANCE. (a) Authorization.--Funds described in subsection (c) may be made available for the provision of food, medicine, or other humanitarian assistance to the Afghan people notwithstanding any other provision of law. (b) Assistance for Afghan Women and Girls.--In carrying out this section, the administrator of the agency primarily responsible for carrying out part I of the Foreign Assistance Act of 1961 shall ensure that an equitable portion of the funds is made available to benefit Afghan women and girls, particularly in programs in refugee camps in Pakistan and in reconstruction projects in Afghanistan. (c) Funding.--Up to $20,000,000 of the aggregate amount of funds made available for fiscal year 1994 to carry out chapter 1 of part I of the Foreign Assistance Act of 1961 (relating to development assistance) and chapter 4 of part II of that Act (relating to the economic support fund) may be used pursuant to this section. SEC. 309. MULTILATERAL ASSISTANCE INITIATIVE FOR THE PHILIPPINES. Part I of the Foreign Assistance Act of 1961 is amended by inserting after chapter 3 the following: ``Chapter 4--Multilateral Assistance Initiative for the Philippines ``SEC. 401. AUTHORIZATION OF ASSISTANCE. ``(a) Authorization.--The President is authorized to provide economic assistance for the Philippines under the `Multilateral Assistance Initiative' account. Such assistance shall be provided on such terms and conditions as the President may determine. ``(b) Authorization for Extended Period of Availability.--Amounts appropriated to carry out this chapter are authorized to remain available until expended.''. SEC. 310. ASSISTANCE FOR EASTERN EUROPE AND THE BALTICS. (a) Economic Assistance.--Section 3 of the Support for East European Democracy (SEED) Act of 1989 is amended-- (1) by redesignating subsection (c) as subsection (e); and (2) by inserting after subsection (b) the following: ``(c) Inapplicability of Restrictions and Requirements.--Assistance provided for an East European country under this Act or under part I of the Foreign Assistance Act of 1961 may be provided notwithstanding any other provision of law, other than section 634A(a) of that Act. Section 634A(a) of that Act shall also apply to funds made available to carry out this Act. ``(d) Authorization for Extended Period of Availability.--Amounts appropriated for economic assistance for East European countries under this Act or the Foreign Assistance Act of 1961 are authorized to remain available until expended.''. (b) Assistance for Victims of War Crimes in the Former Yugoslavia.--Assistance provided under section 491 of the Foreign Assistance Act of 1961 (relating to international disaster assistance) and assistance provided under the Migration and Refugee Assistance Act of 1962 may include assistance for the victims of torture, rape, and other war crimes stemming from the conflict in the former Yugoslavia and for the families of such victims (especially children), with a particular focus on victims of the war in Bosnia-Hercegovina. Such assistance may include activities such as-- (1) the provision (in the United States or abroad)-- (A) of medical, psychological, and psychiatric care and crisis counseling for such victims and their families, and (B) of training of individuals in the former Yugoslavia to provide such care and counseling; and (2) the procurement of necessary medical and training supplies. (c) Correction of Reference.--Subsection (e) of section 3 of the Support for East European Democracy (SEED) Act of 1989, as so redesignated by subsection (a) of this section, is amended-- (1) by striking ``and Slovak Federal''; and (2) by inserting ``the Slovak Republic,'' after ``Romania,''. SEC. 311. ASSISTANCE FOR THE INDEPENDENT STATES OF THE FORMER SOVIET UNION. (a) Cuba.-- (1) Sense of the congress.--It is the sense of the Congress that-- (A) the acts of the Castro government, including its massive, systematic, and extraordinary violations of human rights, are a threat to international peace; (B) the President should advocate, and should instruct the United States Representatives to the United Nations to support and consult with members of the Security Council with respect to, a mandatory international embargo against the totalitarian government of Cuba pursuant to Chapter VII of the Charter of the United Nations, which is similar to consultations being conducted by United States Representatives with respect to Haiti; and (C) any resumption of efforts by any independent state of the former Soviet Union to make the nuclear facility at Cienfuegos, Cuba, operational will have a serious impact on United States assistance to such state. (2) Reporting requirement.--The President shall submit to the Congress, not later than 90 days after the date of enactment of this Act, a report detailing progress towards the withdrawal of personnel of any independent state of the former Soviet Union (including advisors, technicians, and military personnel) from the Cienfuegos nuclear facility in Cuba. (3) Criteria for assistance.--Section 498A(a)(11) of the Foreign Assistance Act of 1961 is amended by striking ``of military facilities'' and inserting ``the military and nuclear facilities at Lourdes and Cienfuegos''. (4) Ineligibility for assistance.--(A) Section 498A(b) of that Act is amended-- (i) by striking ``or'' at the end of paragraph (4); (ii) by redesignating paragraph (5) as paragraph (6); and (iii) by inserting after paragraph (4) the following: ``(5) for the government of any independent state that the President determines is providing assistance for, or engaging in nonmarket based trade (as defined in section 498B(m)(3)) with, the Government of Cuba; or''. (B) Subsection (m) of section 498B of that Act, as so redesignated by subsections (d) and (e) of this section, is amended by adding at the end the following: ``(3) Nonmarket based trade.--As used in section 498A(b)(5), the term `nonmarket based trade' includes exports, imports, exchanges, or other arrangements that are provided for goods and services (including oil and other petroleum products) on terms more favorable than those generally available in applicable markets or for comparable commodities, including-- ``(A) exports to the Government of Cuba on terms that involve a grant, concessional price, guaranty, insurance, or subsidy; ``(B) imports from the Government of Cuba at preferential tariff rates; and ``(C) exchange arrangements that include advance delivery of commodities, arrangements in which the Government of Cuba is not held accountable for unfulfilled exchange contracts, and arrangements under which Cuba does not pay appropriate transportation, insurance, or finance costs.''. (b) Transfers of Sophisticated Conventional Weapons to Iran.-- Section 498A(b)(3) of that Act is amended-- (1) in the text preceding subparagraph (A), by striking ``to another country''; (2) in subparagraph (A)-- (A) by inserting ``to another country'' after ``missiles or missile technology''; and (B) by striking ``or'' at the end of such subparagraph; (3) in subparagraph (B)-- (A) by inserting ``to another country'' after ``any material, equipment, or technology''; and (B) by ``or'' at the end of such subparagraph; and (4) by adding at the end the following: ``(C) sophisticated conventional weapons to Iran in numbers and types that are destabilizing;''. (c) Authority To Waive Certain Restrictions.--Section 498B(j)(1) of that Act is amended-- (1) by inserting ``or 1994'' after ``1993'' both places it appears; and (2) by striking ``by this chapter'' and inserting ``to carry out this chapter''. (d) Assistance in Exchange for Commodities.-- (1) Authorization.--Section 498B of that Act is amended-- (A) by redesignating subsection (k) as subsection (l); and (B) by inserting after subsection (j) the following: ``(k) Assistance in Exchange for Commodities.--The President is authorized to provide assistance under this chapter in exchange for materials or commodities, including any strategic material and any commodity the international supply of which is in such excess as to jeopardize United States production of such commodity.''. (2) Congressional policy statement.--It is the sense of the Congress that-- (A) the President should encourage those independent states of the former Soviet Union capable of providing eventual reimbursement to the United States for assistance provided to such states under chapter 11 of part I of the Foreign Assistance Act of 1961 to enter into negotiations with the United States to reach agreements outlining such eventual reimbursement; and (B) at least $744,115,000 of the amounts appropriated pursuant to the authorization of appropriations in section 201(a)(8) of this Act for assistance for the independent states of the former Soviet Union for fiscal year 1994 should be obligated only under the terms of agreements providing for eventual reimbursement of such assistance. (3) Study of resources in independent states.--The President shall conduct a study of-- (A) the resources in each of the independent states of the former Soviet Union and the prospective revenues from the production and sale of such resources; (B) the possible use of barter or exchange of such resources as methods of reimbursement for assistance provided to such states under chapter 11 of part I of the Foreign Assistance Act of 1961; and (C) the collateralization of loan and investment guarantees provided by the United States Government for project financing in such states using the resources or prospective revenues from the production and sale of such resources. (4) Reports.--The President shall submit to the relevant congressional committees the following reports: (A) Periodic reports describing the status of negotiations between the United States and any independent state of the former Soviet Union relating to agreements for reimbursement of assistance provided to such state under chapter 11 of part I of the Foreign Assistance Act of 1961. (B) A report containing the results of the study conducted pursuant to paragraph (3), including the names of those independent states of the former Soviet Union capable of providing eventual reimbursement of assistance provided to such states under that chapter. Such report shall be submitted not later than June 30, 1994. (5) Definitions.--For purposes of this subsection, the following definitions apply: (A) Relevant congressional committees.--The term ``relevant congressional committees'' means the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate. (B) Resources.--The term ``resources'' includes commodities, raw materials (including necessary or strategic raw materials, as defined in section 663(a) of the Foreign Assistance Act of 1961), and other valuable materials. (e) Improving Monitoring of Economic Performance in the Independent States.--Section 498B of that Act, as amended by subsection (d)(1) of this section, is further amended-- (1) by redesignating subsection (l) as subsection (m); and (2) by inserting after subsection (k) the following: ``(l) Improving Monitoring of Economic Performance in the Independent States.--Assistance under section 498 shall include training and other technical assistance to develop capabilities to monitor economic performance in the independent states of the former Soviet Union through the collection, analysis, and dissemination of economic statistical data.''. (f) Removal of Troops From the Baltic States.--Effective October 1, 1993, paragraph (6) of section 498A(b) of that Act, as so redesignated by subsection (a)(4) of this section, is amended to read as follows: ``(6) for the Government of Russia until the President certifies to the Congress that the Government of Russia-- ``(A) has made further significant progress since the President's certification to the Congress on May 31, 1993, on the removal of all of the armed forces of Russia and the Commonwealth of Independent States from Estonia, Latvia, and Lithuania (including any units of such forces that are demobilized), or has completed with the governments of such countries negotiated agreements that include timetables for such removal; and ``(B) has undertaken good faith efforts, such as negotiations, to end other military practices by Russia and the Commonwealth of Independent States that violate the sovereignty of Estonia, Latvia, or Lithuania, including-- ``(i) artillery or similar armed forces training operations on the territories of Estonia, Latvia, or Lithuania without the permission of their governments; ``(ii) interference in the air space or territorial waters of Estonia, Latvia, or Lithuania; ``(iii) the introduction of additional armed forces, military equipment, or related civilian personnel onto the territories of Estonia, Latvia, or Lithuania without the permission of their governments; or ``(iv) the imposition of an economic blockade or interruption of energy supplies upon Estonia, Latvia, or Lithuania; except that this paragraph does not apply with respect to (I) housing assistance for officers of the armed forces of Russia and the Commonwealth of Independent States who are withdrawn from the territories of Estonia, Latvia, and Lithuania, or (II) food, clothing, medicine, or other humanitarian assistance.''. SEC. 312. ASSISTANCE FOR MONGOLIA. The President is authorized to use funds made available to carry out chapter 11 of part I of the Foreign Assistance Act of 1961 (relating to assistance for the independent states of the former Soviet Union) to provide assistance for Mongolia in accordance with the same authorities, restrictions, and other provisions that are applicable to assistance under that chapter for independent states of the former Soviet Union. SEC. 313. TERMINATION OF IMET PROGRAM FOR MALTA. Funds made available for fiscal year 1994 to carry out chapter 5 of part II of the Foreign Assistance Act of 1961 (relating to the international military education and training program) may not be obligated for Malta. SEC. 314. ADMINISTRATION OF JUSTICE AND OTHER LAW ENFORCEMENT ASSISTANCE PROGRAMS FOR LATIN AMERICA AND THE CARIBBEAN. (a) Extension of Program Authority.--Section 534 of the Foreign Assistance Act of 1961 is amended by striking the last sentence of subsection (e) and by inserting after subsection (e) the following: ``(f) The authority of this section shall expire on September 30, 1994.''. (b) Elimination of Program Ceilings.--Section 534 of that Act is amended-- (1) by repealing the second sentence of subsection (e); and (2) by amending subsection (c) to read as follows: ``(c) Funds made available to carry out this chapter may be used to provide assistance under this section.''. (c) Protection of Participants in Judicial Cases.--Section 534(b)(3) of that Act is amended-- (1) by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively; and (2) by inserting after subparagraph (B) the following: ``(C) programs to enhance protection of participants in judicial cases;''. (d) Special Authorities for Certain Countries.--Funds made available for fiscal year 1994 to carry out section 534 of that Act may be used, notwithstanding section 660 of that Act, to provide assistance as follows: (1) Panama.--Up to $10,000,000 may be made available for Panama for the following: (A) Technical assistance, training, and commodities with the objective of creating a professional civilian police force, except that assistance under this subparagraph-- (i) shall not include more than $5,000,000 for the procurement of equipment for law enforcement purposes, and (ii) shall not include lethal equipment. (B) Programs to improve penal institutions and the rehabilitation of offenders, which may include programs that are not conducted through multilateral or regional institutions. (2) El salvador.--Funds allocated for El Salvador may be used for law enforcement assistance in a manner consistent with the Salvadoran Peace Accords. SEC. 315. WAIVER OF BROOKE AMENDMENT FOR NICARAGUA. Section 620(q) of the Foreign Assistance Act of 1961 and the corresponding section of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1994, shall not apply to funds made available for fiscal year 1994 for any assistance for Nicaragua under the Foreign Assistance Act of 1961 or the Arms Export Control Act. SEC. 316. SPECIAL NOTIFICATION REQUIREMENTS FOR GUATEMALA AND PERU. Funds made available for fiscal year 1994 to carry out the Foreign Assistance Act of 1961 or for the ``Foreign Military Financing Program'' account under section 23 of the Arms Export Control Act may not be obligated for assistance for Guatemala or Peru unless the congressional committees specified in section 634A(a) of the Foreign Assistance Act of 1961 are notified at least 15 days in advance in accordance with the reprogramming procedures applicable under that section. SEC. 317. ASSISTANCE FOR THE MIDDLE EAST. (a) Israel.-- (1) Economic support fund.--Of the amounts made available for fiscal year 1994 for assistance under chapter 4 of part II of the Foreign Assistance Act of 1961, not less than $1,200,000,000 shall be available only for Israel. Such funds shall be available on a grant basis as a cash transfer and shall be disbursed in accordance with paragraph (3). (2) Foreign military financing.--(A) Of the amounts made available for fiscal year 1994 for assistance under the ``Foreign Military Financing Program'' account under section 23 of the Arms Export Control Act, not less than $1,800,000,000 shall be available only for Israel. (B) To the extent that the Government of Israel requests that funds be used for such purposes, funds made available for Israel pursuant to this paragraph shall, as agreed by Israel and the United States, be available for advanced fighter aircraft programs or for other advanced weapons systems, as follows: (i) Up to $150,000,000 shall be available for research and development in the United States. (ii) Not less than $475,000,000 shall be available for the procurement in Israel of defense articles and defense services, including research and development. (3) Early disbursement.--The assistance provided for Israel pursuant to paragraphs (1) and (2) shall be disbursed within 30 days after the date of enactment of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1994, or by October 31, 1993, whichever is later. (b) Egypt.-- (1) Economic support fund.--Of the amounts made available for fiscal year 1994 for assistance under chapter 4 of part II of the Foreign Assistance Act of 1961, not less than $815,000,000 shall be available only for Egypt. (2) Foreign military financing.--Of the amounts made available for fiscal year 1994 for assistance under the ``Foreign Military Financing Program'' account under section 23 of the Arms Export Control Act, not less than $1,300,000,000 shall be available only for Egypt. (c) Cooperative Development Projects.--Of the amounts made available for fiscal year 1994 to carry out chapter 4 of part II of the Foreign Assistance Act of 1961 (relating to the economic support fund), not less than $10,000,000 shall be available only for cooperative projects among the United States, Israel, and developing countries, including projects under the Cooperative Development Program, cooperative development research projects, and cooperative projects among the United States and Israel and the countries of Eastern Europe, the Baltic states, and the independent states of the former Soviet Union. (d) Middle East Regional Cooperative Programs.--Of the amounts made available for fiscal year 1994 to carry out chapter 4 of part II of the Foreign Assistance Act of 1961 (relating to the economic support fund), not less than $7,000,000 shall be available only for Middle East regional cooperative programs carried out in accordance with section 202(c) of the International Security and Development Cooperation Act of 1985. SEC. 318. MILITARY DRAWDOWN FOR ISRAEL. Section 599B(a) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991, is amended by inserting ``and fiscal year 1994'' after ``fiscal year 1993''. SEC. 319. TERMINATION OF IMET PROGRAM FOR INDIA. Funds made available for fiscal year 1994 to carry out chapter 5 of part II of the Foreign Assistance Act of 1961 (relating to the international military education and training program) may not be obligated for India unless the President certifies to the Congress that the Government of India is taking steps to address the human rights problem in India, such as providing access to international human rights organizations, establishing a human rights commission, holding military personnel accountable for violations of fundamental human rights, and prosecuting human rights abusers. TITLE IV--PROVISIONS RELATING TO ARMS TRANSFERS SEC. 401. COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES AND SERVICES. (a) Costing Basis.--Section 22 of the Arms Export Control Act is amended by adding at the end the following: ``(d) Competitive Pricing.--Procurement contracts made in implementation of sales under this section for defense articles and defense services wholly paid from funds made available on a nonrepayable basis shall be priced on the same costing basis with regard to profit, overhead, independent research and development, bid and proposal, and other costing elements, as is applicable to procurements of like items purchased by the Department of Defense for its own use.''. (b) Effective Date and Implementing Regulations.--The amendment made by subsection (a)-- (1) shall be effective as of the 60th day following the date of the enactment of this section; (2) shall be applicable only to contracts made in implementation of sales made after such effective date; and (3) shall be implemented by revised procurement regulations, which shall be issued prior to such effective date. SEC. 402. INCREASE IN AGGREGATE CEILING ON TRANSFERS OF EXCESS DEFENSE ARTICLES. Effective October 1, 1993, section 31(d) of the Arms Export Control Act is amended by striking ``$250,000,000'' and inserting ``$375,000,000''. SEC. 403. ELIGIBILITY OF EAST EUROPEAN COUNTRIES TO RECEIVE NONLETHAL EXCESS DEFENSE ARTICLES. (a) In General.--Section 519(a) of the Foreign Assistance Act of 1961 is amended by inserting ``or to any East European country (as defined in section 3 of the Support for East European Democracy (SEED) Act of 1989) other than an East European country that is prohibited from receiving assistance under that Act'' after ``in which the transfer is authorized''. (b) Conforming Amendment.--Section 906(a) of the Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support Act of 1992 is amended-- (1) by striking paragraph (2); (2) by striking ``eligible--'' through ``(1) to purchase'' and inserting ``eligible to purchase''; (3) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively, and by resetting their left margins on a 2-em indentation; and (4) by striking ``; and'' at the end of paragraph (2), as so redesignated, and inserting a period. SEC. 404. EXCEPTION TO PAYMENT OF FULL COST FOR SALES OF DEFENSE TRAINING SERVICES TO CERTAIN COUNTRIES AND INTERNATIONAL ORGANIZATIONS. Section 21(a) of the Arms Export Control Act is amended-- (1) in paragraph (1)(C)-- (A) by inserting ``(i)'' after ``sold to'', (B) by inserting ``or (ii) a purchaser described in paragraph (3)'' after ``Act of 1961'', and (C) by striking ``such assistance'' and inserting ``such training''; and (2) by adding after paragraph (2) the following: ``(3) Clause (ii) of paragraph (1)(C) applies in the case of a purchaser of training under this section if the President notifies the Committee on Appropriations, the Committee on Armed Services, and the Committee on Foreign Relations of the Senate and the Committee on Appropriations, the Committee on Armed Services, and the Committee on Foreign Affairs of the House of Representatives, in accordance with the regular notification procedures of those committees, at least 15 days before issuing a letter of offer to sell such training. Such notification shall include a description of any reciprocal benefits that the United States Government will receive in exchange for the sale of such training on less than a full cost basis.''. SEC. 405. ELIGIBILITY OF MAJOR NON-NATO ALLIES TO RECEIVE CERTAIN CONTRACT SERVICES IN CONNECTION WITH SALES OF DEFENSE ARTICLES AND SERVICES. (a) Authorization.--Section 21(h) of the Arms Export Control Act is amended-- (1) in paragraph (1)(A), by inserting ``or which is a major non-NATO ally'' after ``Treaty Organization''; (2) in paragraph (2), by striking ``if that Organization or member government'' and inserting ``or to any major non-NATO ally, if that Organization, member government, or major non- NATO ally''; and (3) by adding at the end the following: ``(3) As used in this subsection, the term `major non-NATO ally' has the meaning given such term in section 2350a(i)(3) of title 10, United States Code.''. (b) Effective Date.--Notwithstanding section 21(h)(1) of that Act, the amendment made by subsection (a)(1) applies with respect to contracts and subcontracts entered into after the date of enactment of this Act. SEC. 406. ADDITIONS TO WAR RESERVE STOCKPILES FOR ALLIES. Section 514(b)(2) of the Foreign Assistance Act of 1961 is amended by adding at the end the following: ``Except as provided in the last two sentences of this paragraph, the value of such additions to stockpiles in foreign countries in fiscal year 1994 shall not exceed $72,000,000, which shall be for stockpiles in the Republic of Korea. In addition, to the extent that the authority of the first sentence of this paragraph has not been exercised with respect to Israel in fiscal year 1993, that authority may be exercised during fiscal year 1994 except that the aggregate value of such additions for Israel in both such fiscal years may not exceed $200,000,000. Defense articles having an aggregate value of not to exceed $20,000,000 may be added to stockpiles in Thailand in fiscal years 1993 and 1994.''. SEC. 407. ARAB BOYCOTT. (a) Prohibition on Certain Sales and Leases.--Defense articles and defense services may not be sold or leased by the United States Government to any country or international organization which as a matter of policy or practice is known to have sent letters to United States firms requesting compliance with, or soliciting information regarding compliance with, the secondary or tertiary Arab boycott, unless the President determines, and reports to the relevant congressional committees, that that country or organization does not now send such letters as a matter of policy or practice. (b) Waiver of Prohibition.-- (1) 1 year waiver.--After the effective date of this section, the President may waive, for a period of 1 year, the application of subsection (a) with respect to any country or organization if the President determines, and reports to the relevant congressional committees, that-- (A) such waiver is in the national interest of the United States, and such waiver will promote the objectives of this section to eliminate the Arab boycott; or (B) such waiver is in the national security interest of the United States. (2) Extension of waiver.--If the President determines that the further extension of a waiver will promote the objectives of this section, the President, with appropriate notification to relevant congressional committees, may grant further extensions of such waiver for successive 12-month periods. (3) Termination of waiver.--The President may, at any time, terminate any waiver granted under this subsection. (c) Relevant Congressional Committees.--As used in this section, the term ``relevant congressional committees'' means the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives. (d) Effective Date.--This section shall not take effect until one year after the date of enactment of this Act. TITLE V--OTHER FOREIGN ASSISTANCE PROVISIONS SEC. 501. INTEREST ACCRUING TO NONGOVERNMENTAL ORGANIZATIONS. (a) In General.--Chapter 1 of part III of the Foreign Assistance Act of 1961 is amended by inserting after section 617 the following: ``SEC. 618. INTEREST ACCRUING TO NONGOVERNMENTAL ORGANIZATIONS. ``(a) Authority To Retain Interest.--A nongovernmental organization may place in an interest bearing account-- ``(1) funds made available on a grant basis under part I of this Act or under the Support for East European Democracy (SEED) Act of 1989; and ``(2) local currencies which accrue to that organization as a result of grant assistance provided under part I of this Act or assistance under titles I through III of the Agricultural Trade Development and Assistance Act of 1954, section 416(b) of the Agricultural Act of 1949, or the Food for Progress Act of 1985. Any interest so earned may be retained by the nongovernmental organization and used for the purpose for which the assistance was provided to that organization. ``(b) Limitation on Endowments.--Any grant agreement entered into after the date of enactment of this section to establish an endowment pursuant to the authority of subsection (a)(1) shall provide that-- ``(1) the grant proceeds shall be maintained in a separate account; ``(2) the agency primarily responsible for administering part I may terminate at any time, in its sole discretion, the endowment and recover endowment principal equal to the amount of the grant; and ``(3) unless the authority described in paragraph (2) has been exercised, not later than 20 years after the date of the grant-- ``(A) the endowment shall be terminated, and ``(B) all funds in the endowment and all interest earned as a result of the endowment shall be expended for the purpose for which the assistance was provided or returned to the Government of the United States.''. (b) Effective Date.--The amendment made by this section applies to both interest earned before and interest earned after the date of enactment of this Act. SEC. 502. PRIVATE SECTOR REVOLVING FUND. Section 108 of the Foreign Assistance Act of 1961 is amended by adding at the end the following: ``(j) Termination of Authority.--After the date of enactment of this subsection, loans may not be made, loan guarantees may not be issued, previously issued guarantees may not be renewed or otherwise extended, and assistance may not otherwise be provided under the authority of this section.''. SEC. 503. DEVELOPMENT ASSISTANCE THROUGH NONGOVERNMENTAL ORGANIZATIONS. Chapter 1 of part III of the Foreign Assistance Act of 1961 is amended by inserting before section 620 the following: ``SEC. 619. ASSISTANCE THROUGH NONGOVERNMENTAL ORGANIZATIONS. ``(a) Development Assistance.--Restrictions contained in this or any other Act with respect to assistance for a country shall not restrict assistance in support of programs of nongovernmental organizations that is provided under chapter 1 or chapter 10 of part I of this Act. The President shall take into consideration, in any case in which a restriction on assistance would be applicable but for this section, whether assistance in support of programs of nongovernmental organizations is in the national interest of the United States. ``(b) Notice to Congress.--Before using the authority of this section to furnish assistance in support of programs of nongovernmental organizations, the President shall notify the congressional committees specified in section 634A(a) of this Act in accordance with the procedures applicable to reprogramming notifications under that section. Such notice shall include a description of the program to be assisted, the assistance to be provided, and the reasons for furnishing such assistance. ``(c) Exceptions.--This section shall not apply with respect to-- ``(1) section 620A of this Act or any comparable provision of law prohibiting assistance to countries that support international terrorism; or ``(2) section 116 of this Act or any comparable provision of law prohibiting assistance to countries that violate internationally recognized human rights. ``(d) Abortion and Involuntary Sterilization Prohibitions.--Nothing in this section alters any statutory prohibition against funding for abortion or involuntary sterilizations.''. SEC. 504. IMPACT OF FOREIGN ASSISTANCE PROGRAMS ON JOBS IN THE UNITED STATES. Funds authorized to be appropriated by this Act for foreign assistance programs for fiscal year 1994 may not be obligated or expended to provide-- (1) any financial incentive to a business enterprise located in the United States for the purpose of inducing that enterprise to relocate outside the United States if such incentive or inducement is likely to reduce the number of individuals employed in the United States by that enterprise because that enterprise would replace production in the United States with production outside the United States; (2) 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 (3) 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 in any designated zone or area in that country. In recognition that the application of paragraph (3) should be commensurate with the level of development of the recipient country and sector, that paragraph does not preclude assistance for the informal sector in such country, for microenterprises and small-scale enterprises, or for small-holder agriculture. SEC. 505. CAPITAL PROJECTS. Chapter 3 of part III of the Foreign Assistance Act of 1961 is amended by inserting after section 661 the following: ``SEC. 662. CAPITAL PROJECTS. ``(a) Establishment of Pilot Program.--The Director of the Trade and Development Agency shall establish a capital projects pilot program to carry out the purpose described in subsection (b). ``(b) Purpose of Program.--The purpose referred to in subsection (a) is to develop a program administered by TDA that would focus solely on developmentally sound capital projects in developing countries and in countries making the transition from a nonmarket to a market economy, taking into consideration the development needs of the host country and the export opportunities for the United States. ``(c) Activities.--The Director, in coordination with the appropriate other members of the Trade Promotion Coordination Committee-- ``(1) shall support capital projects in developing countries and in countries making the transition from a nonmarket to a market economy; and ``(2) shall periodically review infrastructure needs in these countries and shall explore opportunities for United States firms in the development of new capital projects in these countries, keeping both United States firms and the Congress informed of these reviews. ``(d) Guarantee Authority.--In addition to making grants to carry out this section, the Director is authorized to issue guarantees to eligible investors (as defined in section 238(c)) assuring against losses incurred in connection with loans obtained by such investors to finance their participation in capital projects described in subsection (b). A fee shall be charged for each such guarantee issued in an amount to be determined by the Director. ``(e) Procurement From the United States.--Guarantees and other financial support provided for capital projects under this section shall be provided for procurement of goods and services from the United States to the maximum extent possible, consistent with the guidelines of the Organization for Economic Cooperation and Development. ``(f) Projects To Be Developmentally Sound.--The Director, in coordination with the appropriate other members of the Trade Promotion Coordination Committee, shall ensure that each capital project for which TDA provides financial support is developmentally sound, as determined under the criteria developed by the Development Assistance Committee of the Organization for Economic Cooperation and Development. ``(g) Coordination.--The President shall utilize the existing interagency coordinating mechanism to coordinate activities under this section with other relevant activities of the United States Government. ``(h) Nonapplicability of Other Provisions.--Any funds used for purposes of this section may be used notwithstanding any other provision of law. ``(i) Report to Congress.--Not later than 1 year after the date of enactment of this section, the Director shall submit to the Congress a report describing-- ``(1) the extent to which United States Government resources have been expended specifically to support the capitol projects described in subsection (b); ``(2) the extent to which the activities of the United States Government have been coordinated pursuant to subsection (g); and ``(3) the feasibility of establishing a permanent program modeled on the pilot program establishment pursuant to this section. ``(j) Funding.-- ``(1) In general.--Notwithstanding the percentage limitations in section 610(a), the President shall transfer $300,000,000 of funds specified in paragraph (2) to TDA for use in carrying out this section, including the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990) of guarantees issued under subsection (d). ``(2) Source of funds.--The funds specified in this paragraph are-- ``(A) funds made available for fiscal year 1994 for assistance under chapter 4 of part II of this Act (relating to the economic support fund), excluding funds made available pursuant to subsections (a)(1), (c), and (d) of section 317 of the Foreign Assistance Authorization Act of 1993; ``(B) funds made available for fiscal year 1994 for assistance under chapter 11 of part I of this Act (relating to assistance for the independent states of the former Soviet Union); and ``(C) funds made available for fiscal year 1994 for assistance under the Support for East European Democracy (SEED) Act of 1989. ``(3) Funds to be used to support capital projects in countries for which original funding was provided.--(A) Any funds described in paragraph (2)(A) that are earmarked by the Congress for a specific country and that are transferred pursuant to paragraph (1) shall be used to support capital projects in that country. ``(B) Any funds described in paragraph (2)(B) that are transferred pursuant to paragraph (1) shall be used to support capital projects in countries eligible for assistance under chapter 11 of part I of this Act. ``(C) Any funds described in paragraph (2)(C) that are transferred pursuant to paragraph (1) shall be used to support capital projects in countries eligible for assistance under the Support for East European Democracy (SEED) Act of 1989. ``(k) Definitions.--As used in this section-- ``(1) the term `capital projects' means a project involving the construction, expansion, alteration of, or the acquisition of equipment for, a physical facility or physical infrastructure, including related engineering design (concept and detail) and other services, the procurement of equipment (including any related services), and feasibility studies or similar engineering and economic services; ``(2) the term `Director' means the Director of TDA; and ``(3) the term `TDA' means the Trade and Development Agency.''. SEC. 506. MICROENTERPRISE DEVELOPMENT. Chapter 2 of part I of the Foreign Assistance Act of 1961 is amended by adding after title V the following: ``title vi--microenterprise development ``SEC. 251. MICROENTERPRISE DEVELOPMENT. ``(a) Centrally-Managed Fund.-- ``(1) Establishment and management.--The administrator of the agency primarily responsible for administering this part shall establish within the agency a centrally-managed fund to be known as the Microenterprise Development Fund (hereinafter in this section referred to as the `Fund'). The Fund shall be managed by the office in that agency that has primary responsibility for working with private and voluntary organizations. ``(2) Disbursements through the fund.--All funds made available to carry out this part that are used to promote microenterprise development shall be disbursed through the Fund. ``(b) Activities To Be Supported.--The Fund shall be used to support-- ``(1) the institutional development of the organizations described in subsection (c); ``(2) the provision of microenterprise credit through the organizations described in subsection (c); and ``(3) research on microenterprise development and evaluation of microenterprise activities funded under this section. ``(c) Intermediary Organizations.--Funds disbursed through the Fund shall be primarily channeled through-- ``(1) United States and indigenous private and voluntary organizations, ``(2) United States and indigenous credit union organizations, and ``(3) other indigenous governmental and nongovernmental organizations, that have demonstrated a capacity to develop sustainable microenterprise service institutions. ``(d) Allocation of Funds.-- ``(1) Microenterprise credit.--(A) Of amounts disbursed through the Fund each fiscal year pursuant to subsection (b)(2), at least 50 percent shall be used for poverty lending. As used in this paragraph, the term `poverty lending' means a loan of $300 or less or, in the case of an initial loan, of $150 or less. ``(B) The administrator of the agency primarily responsible for administering this part shall seek to ensure that not less than 60 percent of the borrowers of funds disbursed through the Fund pursuant to subsection (b)(2) are women. ``(2) Research and evaluation.--Not more than 5 percent of funds disbursed through the Fund each fiscal year may be used for research and evaluation activities under subsection (b)(3).''. SEC. 507. REPORT ON AID'S IMPLEMENTATION OF AGENDA 21 PRINCIPLES. Not later than 2 years after the date of enactment of this Act, the administrator of the agency primarily responsible for administering part I of the Foreign Assistance Act of 1961 shall submit to the Congress a report on the incorporation of the Agenda 21 principles of the United Nations Conference on Environment and Development into the foreign assistance activities administered by that agency. SEC. 508. AUTHORITY TO PROVIDE RECONSTRUCTION ASSISTANCE UNDER INTERNATIONAL DISASTER ASSISTANCE. Section 491(b) of the Foreign Assistance Act of 1961 is amended by striking ``disaster relief and rehabilitation'' and inserting ``disaster relief, rehabilitation, and reconstruction''. SEC. 509. DEOBLIGATION OF CERTAIN UNEXPENDED ECONOMIC ASSISTANCE FUNDS. Chapter 3 of part III of the Foreign Assistance Act of 1961 is amended by adding at the end the following: ``SEC. 671. DEOBLIGATION OF CERTAIN UNEXPENDED ECONOMIC ASSISTANCE FUNDS. ``(a) Requirement To Deobligate.-- ``(1) Annual deobligations.--Except as provided in subsection (b), at the beginning of each fiscal year the President shall deobligate and return to the Treasury any funds described in paragraph (2) that, as of the end of the preceding fiscal year, have been obligated for a period of more than 4 years but have not been expended. ``(2) Funds subject to requirements.--Paragraph (1) applies with respect to funds made available to carry out chapter 1 of part I (relating to development assistance), chapter 4 of part I (relating to the Multilateral Assistance Initiative for the Philippines), chapter 10 of part I (relating to the Development Fund for Africa), chapter 11 of part I (relating to assistance for the independent states of the former Soviet Union), or chapter 4 of part II (relating to the economic support fund) or to carry out the Support for East European Democracy (SEED) Act of 1989. ``(b) Exceptions.--The President, on a case-by-case basis, may waive the requirement of subsection (a) if the President determines, and reports to the appropriate congressional committees, that-- ``(1) the funds are being used for a construction or long term participant training project that requires more than 4 years to complete; or ``(2) the funds have not been expended because of unforeseen circumstances, and those circumstances could not have been reasonably foreseen. ``(c) IG Comments on Waivers.--As soon as possible after submission of a report pursuant to subsection (b), the Inspector General for the agency primarily responsible for administering part I of this Act shall submit to the appropriate congressional committees such comments as the Inspector General considers appropriate with regard to the determination described in that report. ``(d) Appropriate Congressional Committees.--As used in this section, the term `appropriate congressional committees' means the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives and the Committee on Foreign Relations and the Committee on Appropriations of the Senate.''. SEC. 510. PROCUREMENT. Section 604(a) of the Foreign Assistance Act of 1961 is amended to read as follows: ``(a) Limitations on Procurement Outside the United States.--(1) Funds made available for assistance under this Act may be used for procurement outside the United States only if-- ``(A) the funds are used for the procurement of commodities or services, or defense articles or defense services, in the recipient country or in a developing country; ``(B) the provision of such assistance requires commodities or services, or defense articles or defense services, of a type that are not available for purchase in the United States, the recipient country, or developing countries; or ``(C) the President determines, on a case-by-case basis, that procurement in a country other than the United States, the recipient country, or a developing country is necessary to meet unforeseen circumstances, such as emergency situations, where it is important to permit procurement in such other country. ``(2) For purposes of this section, the term `developing country' shall not include advanced developing countries.''. SEC. 511. VIOLATIONS OF TERMS OF ASSISTANCE. Chapter 3 of part III of the Foreign Assistance Act of 1961, as amended by the preceding sections of this Act, is further amended by adding at the end the following: ``SEC. 672. VIOLATION OF TERMS OF ASSISTANCE. ``(a) Termination of Assistance.--If any recipient of assistance under this Act uses such assistance in substantial violation (either in terms of amounts or in terms of the gravity of the consequences regardless of the amounts involved) of any agreement pursuant to which that assistance was furnished by using such assistance, without the consent of the United States, for a purpose not authorized under such agreement, then all assistance and deliveries of assistance to such recipient under this Act shall be terminated if-- ``(1) the President so determines and states in writing to the Congress; and ``(2) the Congress enacts a joint resolution declaring that the Congress agrees with such determination. ``(b) Period of Termination.--Assistance shall remain terminated in accordance with subsection (a) until such time as-- ``(1) the President determines that the violation has ceased; and ``(2) the recipient concerned has given assurances satisfactory to the President that such violation will not recur.''. SEC. 512. FOREIGN AID REPORTING REQUIREMENT. (a) Annual Foreign Assistance Justification Report.--In conjunction with the submission of the annual requests for enactment of authorizations and appropriations for foreign assistance programs for each fiscal year, the President shall submit to the Congress a single report containing an integrated justification for all foreign assistance programs proposed by the President for the coming fiscal year. Each such report shall include-- (1) the total amount of assistance proposed to be provided under each foreign assistance program; (2) the justification for that amount; (3) the objectives that assistance under that program is intended to achieve; (4) an explanation of the relationship of assistance under that program to other assistance provided by the United States; and (5) the President's estimation of the date by which the objectives of that program will be achieved and the program concluded. (b) Definition.--As used in this section, the term ``foreign assistance program'' includes any program of assistance under the Foreign Assistance Act of 1961 or the Arms Export Control Act. SEC. 513. DISADVANTAGED ENTERPRISES. (a) Funding Level.-- (1) In general.--Except to the extent that the administrator of the agency primarily responsible for administering part I of the Foreign Assistance Act of 1961 (hereinafter in this section referred to as the ``Administrator'' and the ``Agency'' respectively) determines otherwise, not less than 10 percent of the aggregate amount made available for each fiscal year for assistance under chapter 1 of that part (relating to development assistance), chapter 9 of that part (relating to international disaster assistance), and chapter 10 of that part (relating to the Development Fund for Africa) shall be made available only for activities of United States organizations and individuals that are-- (A) business concerns owned and controlled by socially and economically disadvantaged individuals, (B) historically black colleges and universities, (C) colleges and universities having a student body in which more than 40 percent of the students are Hispanic American, and (D) private voluntary organizations which are controlled by individuals who are socially and economically disadvantaged. (2) Report.--If for any fiscal year less than the amount specified in paragraph (1) is used for the activities described in that paragraph, the Administrator shall submit to the Congress a report explaining why that amount was not so used. (b) Additional Actions.-- (1) In general.--In addition to other actions taken to carry out this section, the actions described in paragraphs (2) through (5) shall be taken with respect to assistance under chapter 1, chapter 9, and chapter 10 of part I of the Foreign Assistance Act of 1961 for each fiscal year. (2) Authorities and procedures.--Notwithstanding any other provision of law, in order to achieve the goals of this section, the Administrator-- (A) to the maximum extent practicable, shall utilize the authority of section 8(a) of the Small Business Act (15 U.S.C. 637(a)); (B) to the maximum extent practicable, shall enter into contracts with small business concerns owned and controlled by socially and economically disadvantaged individuals, and organizations described in subparagraphs (B) through (D) of subsection (a)(1)-- (i) using less than full and open competitive procedures under such terms and conditions as the Administrator deems appropriate, and (ii) using an administrative system for justifications and approvals that, in the Administrator's discretion, may best achieve the purpose of this section; and (C) shall issue regulations to require that any contract in excess of $500,000 contain a provision requiring that no less than 10 percent of the dollar value of the contract be subcontracted to entities described in subsection (a)(1), except-- (i) to the extent the Administrator determines otherwise on a case-by-case or category-of-contract basis; and (ii) this subparagraph does not apply to any prime contractor that is an entity described in subsection (a)(1). (3) Notice of advertising of contracts.--Each person with contracting authority who is attached to the Agency's headquarters in Washington, as well as all Agency missions and regional offices, shall notify the Agency's Office of Small and Disadvantaged Business Utilization at least seven business days before advertising a contract in excess of $100,000. (4) Performance evaluations.--The Administrator shall include, as part of the performance evaluation of any mission director of the Agency, the mission director's efforts to carry out this section. (5) Annual reports.--The Administrator shall submit to the Congress annual reports on the implementation of this section. Each such report shall specify the number and dollar value or amount (as the case may be) of prime contracts, subcontracts, grants, and cooperative agreements awarded to entities described in subsection (a)(1) during the preceding fiscal year. (c) Definition.--As used in this section, the term ``socially and economically disadvantaged individuals'' has the same meaning that term is given for purposes of section 8(d) of the Small Business Act, except that the term includes women. SEC. 514. PROHIBITION ON SECURITY ASSISTANCE TO COUNTRIES THAT CONSISTENTLY OPPOSE THE UNITED STATES POSITION IN THE UNITED NATIONS GENERAL ASSEMBLY. (a) Prohibition.--Security assistance may not be provided to a country that consistently opposed the United States position in the United Nations General Assembly during the most recent session of the General Assembly. (b) Change in Government.--If-- (1) the Secretary of State determines that, since the beginning of the most recent session of the General Assembly, there has been a fundamental change in the leadership and policies of the government of a country to which the prohibition in subsection (a) applies, and (2) the Secretary believes that because of that change the government of that country will no longer consistently oppose the United States position in the General Assembly, the Secretary may submit to the Congress a request that the Congress enact an exemption from that prohibition for that country. Any such exemption shall be effective only until submission of the next report under section 406 of the Foreign Relations Authorization Act, Fiscal Years 1990 and 1991. Any request for such an exemption shall be accompanied by a discussion of the basis for the Secretary's determination and belief. (c) Waiver Authority.--The Secretary of State may waive the requirement of subsection (a) if the Secretary determines and reports to the Congress that despite the United Nations voting pattern of a particular country, the provision of security assistance to that country is necessary to promote United States foreign policy objectives. (d) Definitions.--As used in this section-- (1) the term ``consistently opposed the United States position'' means that the country's votes in the United Nations General Assembly coincided with the United States position less than 25 percent of the time, using for this purpose the overall percentage-of-voting coincidences set forth in the annual report submitted to the Congress pursuant to section 406 of the Foreign Relations Authorization Act, Fiscal Years 1990 and 1991; (2) the term ``most recent session of the General Assembly'' means the most recently completed plenary session of the General Assembly for which overall percentage-of-voting coincidences is set forth in the most recent report submitted to the Congress pursuant to section 406 of the Foreign Relations Authorization Act, Fiscal Years 1990 and 1991; and (3) the term ``security assistance'' means assistance under-- (A) chapter 4 of part II of the Foreign Assistance Act of 1961 (relating to the economic support fund), (B) chapter 5 of part II of that Act (relating to international military education and training), or (C) the ``Foreign Military Financing Program'' account under section 23 of the Arms Export Control Act, except that the term does not include narcotics-related assistance. (e) Effective Date.--This section takes effect upon submission to the Congress of the report pursuant to section 406 of the Foreign Relations Authorization Act, Fiscal Years 1990 and 1991, that is required to be submitted by March 31, 1994. TITLE VI--BOSNIA-HERCEGOVINA SEC. 601. SHORT TITLE. This title may be cited as the ``Bosnia-Hercegovina Self-Defense Act of 1993''. SEC. 602. FINDINGS. The Congress makes the following findings: (1) On July 10, 1991, the United States adopted a policy suspending all licenses and other approvals to export or otherwise transfer defense articles and defense services to Yugoslavia. (2) On September 25, 1991, the United Nations Security Council adopted Resolution 713, which imposed a mandatory international embargo on all deliveries of weapons and military equipment to Yugoslavia. (3) The United States considered the policy adopted July 10, 1991, to comply fully with Resolution 713 and therefore took no additional action in response to that resolution. (4) On January 8, 1992, the United Nations Security Council adopted Resolution 727, which decided that the mandatory arms embargo imposed by Resolution 713 should apply to any independent states that might thereafter emerge on the territory of Yugoslavia. (5) On February 29 and March 1, 1992, the people of Bosnia- Hercegovina voted in a referendum to declare independence from Yugoslavia. (6) On April 7, 1992, the United States recognized the Government of Bosnia-Hercegovina. (7) On May 22, 1992, the Government of Bosnia-Hercegovina was admitted to full membership in the United Nations. (8) Consistent with Resolution 727, the United States has continued to apply the policy adopted July 10, 1991, to independent states that have emerged on the territory of the former Yugoslavia, including Bosnia-Hercegovina. (9) Subsequent to the adoption of Resolution 727 and Bosnia-Hercegovina's independence referendum, the seige of Sarajevo began and fighting spread to other areas of Bosnia- Hercegovina. (10) The Government of Serbia intervened directly in the fighting by providing significant military, financial, and political support and direction to Serbian-allied irregular forces in Bosnia-Hercegovina. (11) In statements dated May 1 and May 12, 1992, the Conference on Security and Cooperation in Europe declared that the Government of Serbia and the Serbian-controlled Yugoslav National Army were committing aggression against the Government of Bosnia-Hercegovina and assigned to them prime responsibility for the escalation of bloodshed and destruction. (12) On May 30, 1992, the United Nations Security Council adopted Resolution 757, which condemned the Government of Serbia for its continued failure to respect the territorial integrity of Bosnia-Hercegovina. (13) Serbian-allied irregular forces have, over the last year, occupied approximately 70 percent of the territory of Bosnia-Hercegovina, committed gross violations of human rights in the areas they have occupied, and established a secessionist government committed to eventual unification with Serbia. (14) The military and other support and direction provided to Serbian-allied irregular forces in Bosnia-Hercegovina constitutes an armed attack on the Government of Bosnia- Hercegovina by the Government of Serbia within the meaning of Article 51 of the United Nations Charter. (15) Under Article 51, the Government of Bosnia- Hercegovina, as a member of the United Nations, has an inherent right of individual or collective self-defense against the armed attack from the Government of Serbia until the United Nations Security Council has taken measures necessary to maintain international peace and security. (16) The measures taken by the United Nations Security Council in response to the armed attack on Bosnia-Hercegovina have not been adequate to maintain international peace and security. (17) Bosnia-Hercegovina has been unable successfully to resist the armed attack from Serbia because it lacks the means to counter heavy weaponry that Serbia obtained from the Yugoslav National Army upon the dissolution of Yugoslavia, and because the mandatory international arms embargo has prevented Bosnia-Hercegovina from obtaining from other countries the means to counter such heavy weaponry. (18) On December 18, 1992, with the affirmative vote of the United States, the United Nations General Assembly adopted Resolution 47/121, which urged the United Nations Security Council to exempt Bosnia-Hercegovina from the mandatory arms embargo imposed by Resolution 713. (19) In the absence of adequate measures to maintain international peace and security, continued application to the Government of Bosnia-Hercegovina of the mandatory international arms embargo imposed by the United Nations Security Council prior to the armed attack on Bosnia-Hercegovina undermines that government's right of individual or collective self-defense and therefore contravenes Article 51 of the United Nations Charter. (20) Bosnia-Hercegovina's right of self-defense under Article 51 of the United Nations Charter includes the right to ask for military assistance from other countries and to receive such assistance if offered. SEC. 603. UNITED STATES ARMS EMBARGO OF THE GOVERNMENT OF BOSNIA- HERCEGOVINA. (a) Termination.--The President may terminate the United States arms embargo of the Government of Bosnia-Hercegovina upon receipt from that government of a request for assistance in exercising its right of self-defense under Article 51 of the United Nations Charter. (b) Definition.--As used in this section, the term ``United States arms embargo of the Government of Bosnia-Hercegovina'' means the application to the Government of Bosnia-Hercegovina of-- (1) the policy adopted July 10, 1991, and published in the Federal Register of July 19, 1991 (58 Fed. Reg. 33322) under the heading ``Suspension of Munitions Export Licenses to Yugoslavia''; and (2) any similar policy being applied by the United States Government, as of the date of receipt of the request described in subsection (a), pursuant to which approval is routinely denied for transfers of defense articles and defense services to the former Yugoslavia. SEC. 604. UNITED STATES MILITARY ASSISTANCE FOR BOSNIA-HERCEGOVINA. (a) Policy.--The President should provide appropriate military assistance to the Government of Bosnia-Hercegovina upon receipt from that government of a request for assistance in exercising its right of self-defense under Article 51 of the United Nations Charter. (b) Authorization of Military Assistance.-- (1) Drawdown authority.--If the Government of Bosnia- Hercegovina requests United States assistance in exercising its right of self-defense under Article 51 of the United Nations Charter, the President is authorized to direct the drawdown of defense articles from the stocks of the Department of Defense, defense services of the Department of Defense, and military education and training in order to provide assistance to the Government of Bosnia-Hercegovina. Such assistance shall be provided on such terms and conditions as the President may determine. (2) Limitation on value of transfers.--The aggregate value (as defined in section 644(m) of the Foreign Assistance Act of 1961) of defense articles, defense services, and military education and training provided under this subsection may not exceed $200,000,000. (3) Expiration of authorization.--The authority provided to the President in paragraph (1) expires at the end of fiscal year 1994. (4) Limitation on activities.--Members of the United States Armed Forces who perform defense services or provide military education and training outside the United States under this subsection may not perform any duties of a combatant nature, including any duties related to training and advising that may engage them in combat activities. (5) Reports to congress.--Within 60 days after any exercise of the authority of paragraph (1) and every 60 days thereafter, the President shall report in writing to the Speaker of the House of Representatives and the President pro tempore of the Senate concerning the defense articles, defense services, and military education and training being provided and the use made of such articles, services, and education and training. (6) Reimbursement.--Defense articles, defense services, and military education and training provided under this subsection shall be made available without reimbursement to the Department of Defense. SEC. 605. AUTHORITY OF THE SECRETARY OF DEFENSE. (a) In General.--The Secretary of Defense shall determine the manner in which defense articles from the stocks of the Department of Defense and defense services and military education and training are drawn down from the Department of Defense under this title to provide assistance to the Government of Bosnia-Hercegovina. In making this determination, the Secretary of Defense shall, at a minimum, take into account the need to preserve the readiness of the armed forces of the United States. (b) Funding Through Regular Defense Appropriations.-- (1) Replenishment of defense articles and resources.-- Articles from defense stocks provided to the Government of Bosnia-Hercegovina under this title, and resources expended during the course of providing defense services and military education and training to such Government under this title, should be replenished. (2) Funding.--Any funds necessary to accomplish the replenishment described in paragraph (1) should be authorized and appropriated in defense authorization and appropriations Acts. TITLE VII--MISCELLANEOUS PROVISIONS SEC. 701. DEPLOYMENT OF U.N. TROOPS TO KOSOVO. The President shall direct the United States Representative to the United Nations to urge the Security Council to deploy United Nations troops to Kosovo, where their presence will have a positive and preventive influence in stopping and reversing Serbian repression. SEC. 702. INCREASE IN CSCE OBSERVER MISSIONS IN KOSOVO. The President shall direct the United States representative to the Conference on Security and Cooperation in Europe (in this section referred to as the ``CSCE'') to urge the CSCE to increase the number of the permanent CSCE observer missions in Kosovo from 20 to at least 50. Passed the House of Representatives June 16, 1993. Attest: Clerk. HR 2404 EH----2 HR 2404 EH----3 HR 2404 EH----4 HR 2404 EH----5 HR 2404 EH----6 HR 2404 EH----7 HR 2404 EH----8 HR 2404 EH----9