International Security and Development Cooperation Act of 1989

International Security and Development Cooperation Act of 1989 - Title I: Military Assistance and Sales and Related Programs - Amends the Arms Export Control Act to authorize appropriations for foreign military sales (FMS) credits for FY 1990.

Requires financing under such Act to be provided without the requirement of repayment of principal or interest. Requires funds appropriated under such Act to be available only for financing the procurement of defense articles and services or design and construction services, except with respect to certain countries.

Earmarks specified amounts of FMS credits for FY 1990 for Israel (including credits for advanced weapon systems), Egypt, Greece, Turkey (with the understanding that the U.S. Government is opposed to any action aimed at effecting a permanent bifurcation of Cyprus), Portugal, the Philippines, El Salvador, and the Dominican Republic.

Applies restrictions on the sale of defense articles or services to foreign countries or international organizations to the licensing of such articles or services. Revises provisions to terminate cash sales or deliveries to countries which make unauthorized third country transfers of such articles or services.

Repeals a requirement for an annual report regarding South Korean progress in modernizing its armed forces, the role of the United States in mutual security efforts in South Korea, and the military balance between the two Koreas. Removes requirements for projections of arms sales in the President's quarterly reports on military exports. Requires such reports to include a listing by country of FMS financing used for procurement outside the United States.

Requires presidential certifications to the Congress concerning export licenses to contain a statement on the extent to which comparable defense articles or services are available from other countries and to which countries the U.S. system has already been offered.

Removes exemptions from prohibitions on exports of defense articles or services for specified countries.

Provides that congressional approval shall not be given to any commercial technical assistance or manufacturing licensing agreement for or in a non-NATO country, unless the President states in his certification that an emergency exists which requires approval of such an agreement in the national security interests of the United States.

Makes ineligible for FMS financing any contract between a foreign government and a person convicted or debarred for violations of the Arms Export Control Act or international traffic in arms regulations. Outlines forfeiture requirements for violators of such Act.

Requires the biennial review of international traffic in arms regulations.

Amends the Foreign Assistance Act of 1961 to authorize appropriations for the military assistance program for FY 1990. Earmarks a specified amount of such assistance for the procurement of weapons to defend aircraft used in narcotics control eradication or interdiction efforts. Prohibits such funds from being used to purchase new aircraft. Requires the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations to be notified of the use of such funds.

Authorizes the President, in the case of defense articles or services that were delivered to foreign countries prior to 1985 (currently, 1975), to waive the requirement that net proceeds be paid to the U.S. Government.

Excludes salaries of military personnel from costs of overseas management of international security assistance and general administrative expenses which may be reimbursed from funds made available under the Foreign Assistance Act of 1961 and the Arms Export Control Act.

Makes technical amendments to provisions concerning letters of offer for the sale of defense articles or services under the Arms Export Control Act.

Allows the President to waive certain requirements with regard to the leasing of defense articles only during FY 1990 (currently, FY 1989).

Permits financing for the procurement of defense articles by leasing from U.S. commercial suppliers to be provided to any NATO country or major non-NATO ally if the President determines that there are compelling foreign policy or national security reasons for such articles being provided by commercial lease rather than by government-to-government sale.

Amends the Foreign Assistance Act of 1961 to remove a fiscal year limitation on the President's authority to transfer defense articles to countries of NATO's southern flank.

Authorizes the stockpiling of defense articles in countries which are major non-NATO allies.

Authorizes appropriations for FY 1990 for: (1) international military education and training; (2) peacekeeping operations; and (3) antiterrorism assistance. Earmarks a specified amount of the military education and training assistance for narcotics control activities in Latin American and Caribbean countries: (1) which are major illicit drug producing or transit countries; (2) which have democratic governments; and (3) whose law enforcement agencies do not engage in a consistent pattern of human rights violations.

Allows specified international law enforcement training services to be conducted outside the United States. Authorizes employees of the Bureau of Diplomatic Security of the Department of State to provide such training in bomb protection measures, facility security, and VIP protection.

Permits the disbursement of foreign military credit sales for the Philippines.

Requires periodic reports regarding activities of Turkish armed forces on Cyprus.

Amends the Arms Export Control Act to prohibit the sale of antitank shells containing a depleted uranium component to any country except a NATO member country, a major non-NATO ally, or Pakistan.

Requires the President to notify the Congress prior to designating a country as a major non-NATO ally or terminating such a designation. Deems Australia, Egypt, Israel, Japan, South Korea, and the Philippines to have been so designated by the President.

Prohibits the sale or issuance of licenses under the Arms Export Control Act to China of any item on the U.S. Munitions List unless the President has certified to the Speaker of the House and the chairman of the Senate Foreign Relations Committee that: (1) no U.S. defense article or technology was used in certain missiles or aircraft transferred by China to Iran, Iraq, Syria, or Libya in contravention of the Arms Export Control Act; and (2) no chemical weapons and no equipment or materials for use in nuclear devices were transferred by China to such countries.

Expresses the sense of the Congress that the Director of the Defense Security Assistance Agency should support the use by eligible foreign governments of U.S. civilian and military retirees for purposes of providing military education and training.

Directs the Secretary of State to report to the Senate Foreign Relations Committee and the House Foreign Affairs Committee on a review of U.S. security commitments abroad.

Title II: Economic Support Fund - Amends the Foreign Assistance Act of 1961 to authorize appropriations for FY 1990 for the Economic Support Fund (ESF). Earmarks a specified amount of such funds for: (1) Israel; (2) Egypt; (3) regional cooperative programs in the Middle East; (4) Cyprus; (5) Portugal; (6) Pakistan; (7) the Anglo-Irish International Fund; (8) Central American democracies (including an earmarked amount for Costa Rica's debt reduction program); and (9) Subsaharan Africa. Expresses the sense of the Congress, with regard to economic support assistance for Cyprus, that there should be compliance with United Nations Security Council Resolution 550 which considers attempts to settle any part of Varosha (Famagusta) by people other than its inhabitants as inadmissible.

Restricts the use of ESF assistance for nuclear facilities.

Permits ESF assistance to be provided as a cash transfer only if the recipient country spends an amount equal to such cash transfer to purchase U.S. goods and services. Makes exemptions to such requirement under certain circumstances.

Title III: Development Assistance - Authorizes appropriations for FY 1990 for agriculture, rural development, and nutrition assistance.

Authorizes additional appropriations for FY 1990 for: (1) the Child Survival Fund; and (2) population planning and health activities. Prohibits conditioning the provision of assistance on the acceptance of population planning assistance by a recipient country.

Authorizes additional appropriations for FY 1990 for assistance to prevent and control acquired immune deficiency syndrome (AIDS). Earmarks a specified amount of such assistance for use by the World Health Organization in financing its Global Program on AIDS. Provides that such funds shall not be available to the World Health Organization if such organization accords the Palestine Liberation Organization the same standing as member states.

Authorizes appropriations for FY 1990 for education and human resources development. Requires at least 30 percent of such funds to be used only for programs to reduce illiteracy and extend basic education.

Authorizes appropriations for FY 1990 for private sector and energy programs, private and voluntary organizations, and the private sector revolving fund and guaranty authority.

Revises provisions concerning the integration of women into national economies to set forth required strategies for women in development programs.

Sets forth congressional findings concerning the use of private and voluntary organizations and cooperatives in providing foreign development assistance. Encourages and authorizes the Administrator of the Agency for International Development (AID) to utilize such organizations in providing development assistance.

Directs the Administrator to establish within AID a Center for Voluntary Cooperation in Development and a Center for University Cooperation in Development. Provides that the respective purposes of such centers shall be to strengthen the partnership for development between the U.S. Government and: (1) U.S. institutions of higher education engaged in education, research, and public service programs relevant to developing countries; and (2) U.S. private voluntary organizations, cooperatives, and credit unions engaged in activities relevant to such countries. Creates an advisory board for each center.

Title IV: Other Assistance Programs and Authorizations - Authorizes appropriations for FY 1990 for American schools and hospitals abroad.

Extends the President's authority to issue worldwide housing guaranties for one year. Increases the limit on: (1) the amount of borrowing authority with respect to claims pursuant to such guaranties; and (2) the amount of guaranties per country. Removes certain restrictions on the average face value of guaranties issued per fiscal year.

Extends the authority to guarantee commitments under the trade credit insurance program until September 30, 1992. Limits commitments under such program during FY 1990.

Authorizes appropriations for FY 1990 for voluntary contributions to international organizations and programs. Earmarks specified amounts of such funds for certain United Nations programs.

Permits funds to be contributed to the International Atomic Energy Agency only if the Secretary determines and reports to the Congress that Israel is not being denied its right to participate in such agency.

Provides that if Israel is denied its right to participate in any agency of the United Nations, the United States shall suspend its participation in, and contributions to, any such agency until the denial of rights is reversed.

Authorizes appropriations for FY 1990 for international disaster assistance and international narcotics matters.

Authorizes the President to furnish assistance to the Philippines to strengthen the administration of justice. Extends the authority to provide such assistance to September 30, 1990.

Applies an exemption to a prohibition on the provision of assistance for police training to assistance to police forces participating in the regional security system of the Eastern Caribbean.

Authorizes appropriations for FY 1990 for: (1) the Trade and Development Program; (2) operating expenses of AID; and (3) operating expenses of the AID Office of Inspector General.

Title V: East Asia and the Pacific - Multilateral Assistance Initiative for the Philippines Act of 1989 - Expresses the sense of the Congress that: (1) the United States should participate with multilateral financial institutions and other bilateral donors in an economic reform and development program in the Philippines; and (2) a multiyear commitment of resources by the United States, donors, and institutions with a continued reform effort and leadership role by the Government of the Philippines will be necessary to ensure continued economic growth in the Philippines and enhanced participation of the Filipino people in the democratic process.

Authorizes the President to provide assistance on such terms as determined necessary to carry out this Act. Links assistance to progress by the Government of the Philippines in implementing its economic, structural, and administrative reform program and provides that such assistance may include programs to stimulate and strengthen private sector growth, including voluntary debt reduction, greater U.S. participation in such sector, and sustained economic growth.

Requires the Secretary and the AID Administrator, beginning with the submission of the budget request for FY 1991, to report annually to the Congress on progress in implementing the objectives of this program.

Authorizes appropriations. Limits the amount of appropriations for FY 1990. Prohibits funds appropriated for FY 1990 from being made available until the President has received a document developed by the Government of the Philippines and acceptable to the bilateral donors and multilateral financial institutions that sets forth the framework and objectives of macroeconomic, administrative, and structural reforms and voluntary debt reduction, under appropriate circumstances, which the multilateral assistance program is designed to support. Expresses the sense of the Congress that, prior to requesting additional amounts to carry out this Act, the President shall take into account: (1) the progress being made by the Philippines toward achieving such reform objectives; (2) the extent of participation by the bilateral donors and multilateral financial institutions; (3) attention to natural resource management that supports sustained economic growth; and (4) the efforts to coordinate the assistance program.

Expresses the sense of the Congress that: (1) coordination of programs by donors, institutions, and the Government of the Philippines is critical to the success of the Multilateral Assistance Initiative; (2) all donors should simplify procurement and disbursement procedures and ensure that conditions on the provision or use of assistance are complementary; and (3) the Philippines will ensure the most effective use of such assistance.

Title VI: Near East and South Asia - Sets forth U.S. policy on assistance to Pakistan. Extends to September 30, 1994, the President's authority to waive prohibitions concerning nuclear transfers to Pakistan.

Amends the International Security and Development Cooperation Act of 1985 to increase the amount of funds earmarked for humanitarian assistance to the Afghan people.

Title VII: Middle East - Expresses the sense of the Congress that no FMS financing may be used to finance Jordan's procurement of advanced aircraft, new air defense weapons systems, or other new advanced military weapons unless Jordan is publicly committed to recognizing Israel and to negotiating with Israel under the basic tenets of United Nations Resolutions 242 and 338.

Prohibits the United States from selling or making available to any Persian Gulf country any STINGER antiaircraft missiles under the Arms Export Control Act or the Foreign Assistance Act of 1961. Authorizes the United States, if specified conditions are met, to make limited numbers of such missiles available to Bahrain or Oman. Requires the President to notify the Speaker of the House and the chairman of the Senate Foreign Relations Committee before making such missiles available. Prohibits the President from selling any defense articles or services to Qatar until he notifies the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations that Qatar has returned to the United States all illegally-obtained STINGER missiles.

Directs the President, with each submission of a certification to the Congress concerning a proposed arms transfer to a country in the Middle East, to provide a detailed justification of the impact of such proposed transfer.

Requires the President to submit annually to the Congress an analysis of the Middle East arms balance based upon the cumulative impact of the aggregate U.S. transfers of defense articles to the region and of what type of military or economic compensation is required for countries whose qualitative edge the United States is committed to maintaining.

Urges the President to: (1) call immediately for multilateral talks among the world's major arms suppliers to draft guidelines to govern transfers of weapons to the Middle East; (2) urge U.S. allies to cease or slow weapons transfers to the Middle East; (3) place the problem of Middle East arms proliferation high on the agenda of U.S.-Soviet talks in the next twelve months and encourage the Soviet Union to restrain its allies on the issue of Middle East arms proliferation; and (4) initiate bilateral talks with potential arms recipients in the Middle East to stimulate the development of initiatives to restrain arms transfers. Requires the President to report to the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations on the progress in achieving such goals.

Directs the Secretary, taking into account Iraq's conduct toward its Kurdish population since September 22, 1980, to report to the Speaker of the House and the chairman of the Senate Foreign Relations Committee on whether Iraq's conduct toward its Kurdish population constitutes a consistent pattern of human rights violations.

Authorizes appropriations for FY 1990 for cooperative development program projects and research among the United States, Israel, and developing countries.

Commends President Bush for his call for an immediate cease-fire in Lebanon. Condemns parties unwilling to heed such call. Expresses the sense of the Congress that the President should: (1) continue to press for such cease-fire, for the removal of foreign military forces posing a threat to Lebanese sovereignty, and for the abolition of all paramilitary forces in Lebanon; (2) support international efforts to mediate the civil strife in Lebanon and to bring an end to all blockades; and (3) fund humanitarian efforts of the Lebanese Government and of private voluntary organizations coordinated with such Government.

Title VIII: Africa - Part A: Africa Famine Recovery and Development - Africa Famine Recovery and Development Act - Authorizes the President to provide project and program assistance for long-term development in Subsaharan Africa. Requires the purpose of such assistance to be to help the poor majority of men and women in Subsaharan Africa to participate in a process of long-term development through economic growth that is equitable, participatory, environmentally sustainable, and self-reliant. Provides that such assistance should also encourage private sector development and promote individual initiatives and help to reduce the role of central governments in areas more appropriate for the private sector.

Requires the agency primarily responsible for administering development assistance programs (responsible agency) to: (1) take into account the local-level perspective of the rural and urban poor in Subsaharan Africa during the planning process for project assistance under this Act; and (2) make available funds for the strengthening of development efforts by private and voluntary organizations which have demonstrated effectiveness in or commitment to the promotion of local grass-roots activities on behalf of long-term development in Subsaharan Africa.

Requires: (1) the close consultation and involvement of local people in projects that have a local focus; and (2) the participation and integration of African women in development projects assisted by this Act.

Requires the responsible agency to use the program assistance provided by this Act to: (1) address critical sectoral priorities for long-term development; and (2) promote reform of national economic policies to support these priorities.

Requires policy reforms to include provisions to protect vulnerable groups, especially poor farmers and the urban poor, from possible negative consequences of such reforms.

Designates as the critical sectoral priorities for long-term development: (1) increased agricultural production and the maintenance and restoration of renewable natural resources; (2) improved health conditions; (3) voluntary family planning services; (4) improved relevance and efficiency of education; and (5) development of income generating opportunities for the unemployed and underemployed. Imposes minimum levels of assistance for certain critical sectors.

Directs the responsible agency to provide support for strengthening and developing selected African higher education institutions in order to address the problems of food production and distribution.

Requires the assistance provided under this Act to be concentrated in countries that will make the most effective use of such assistance.

Specifies uses for local currencies generated by assistance provided under this Act and other Acts. Provides that funds made available under this Act may be used to assist the countries in Subsaharan Africa to increase their capacity to participate in donor coordination mechanisms at the country, regional, and sector levels.

Authorizes appropriations for FY 1990 for long-term development assistance for Subsaharan Africa. Expresses the sense of the Congress that the authorization should be extended whenever appropriate. Limits transfers between accounts funded by this Act. Authorizes the Administrator of the responsible agency to transfer certain funds in order to increase the AID resources for development assistance activities for Subsaharan Africa.

Expresses the sense of the Congress that the purposes of the African Development Foundation are consistent with the purposes of this Act.

Amends the African Development Foundation Act to: (1) authorize appropriations for the African Development Foundation for FY 1990; and (2) require that no more than four members of the Foundation's Board are from any one political party. Repeals a provision of such Act requiring the expiration of the Foundation's authorities on September 30, 1990.

Expresses the sense of the Congress that special efforts should be taken to: (1) reduce trade barriers and promote economic interchange between the United States and developing countries in Subsaharan Africa; and (2) establish a guaranteed minimum level of sugar imports, within the present world quota, for Subsaharan African countries exporting to the United States.

Part B: Other Provisions Relating to Sub-Saharan Africa - Earmarks specified amounts of funds made available under this Act for sector projects supported by the Southern African Development Coordination Conference (SADCC). Urges: (1) the President to use diplomatic means to protect the security of such projects; and (2) the Government of South Africa to respect the territorial integrity of SADCC states and to refrain from military aggression across its borders.

Declares that the provision of ESF assistance and FMS financing to Kenya for FY 1990 shall bear a relation to significant steps by the Government of Kenya to increase respect for internationally recognized human rights.

Prohibits the provision of ESF assistance and FMS financing to Liberia unless the President reports to the Congress that the Liberian Government has: (1) demonstrated its commitment to economic reform; and (2) made significant progress toward removing restrictions on political freedoms, maintaining an independent judiciary and legislative branch, and ending human rights violations. Exempts from such prohibition assistance to or through private voluntary organizations and assistance for basic education activities.

Directs the President, in determining whether to furnish ESF assistance and FMS financing to Somalia for FY 1990, to take into account whether the Government of Somalia has demonstrated increased respect for human rights and taken steps to achieve a peaceful political settlement to the conflict in the north.

Permits no more than 50 percent of the respective amounts of ESF assistance and FMS financing for Sudan for FY 1990 to be obligated prior to May 1, 1990. Provides that amounts of such assistance may be obligated after such date only if the President reports to the Congress that the Sudanese Government has: (1) made demonstrable progress in the delivery of increased relief to displaced populations in areas under its control; (2) taken steps to bring an end to violence perpetrated by government-armed militias and to put distance between itself and Libya; and (3) made good faith efforts to achieve progress in negotiations with the Sudan People's Liberation Army for a national peace accord. Exempts from such restrictions assistance for international military education and training or programs of disaster relief, related rehabilitation and reconstruction, or other humanitarian assistance.

Limits the amount of FMS financing to be made available to Zaire for FY 1990. Requires development assistance for Zaire for FY 1990 to be provided, to the maximum extent practicable, through private and voluntary organizations.

Requires the President to notify specified congressional committees prior to the obligation of funds for assistance to Kenya, Liberia, Somalia, and Sudan.

Expresses the sense of the Congress that no less than the amount justified for the Republic of Cape Verde in the FY 1990 Congressional Presentation Document should be made available to such republic.

Declares that: (1) it is in the interest of the United States to encourage the promotion of human rights and political and economic freedom in African countries; and (2) the President, in furnishing assistance to such countries for FY 1990, should consider each country's record in human rights and economic reform and its friendship to the United States.

Earmarks a specified amount of FMS financing for Malawi for FY 1990.

Expresses the sense of the Congress that the President should take into account progress made by the Ethiopian Government toward a peaceful settlement of the civil war, improvements in the human rights situation, and macroeconomic reform when deciding on improvements in U.S.-Ethiopian relations.

Repeals a provision of the Foreign Assistance Act of 1961 concerning the Sahel development program.

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

Title IX: Western Hemisphere - Part A: Central America - Earmarks a specified amount of ESF assistance for FY 1990 for the United Nations Development Programme to reintegrate the displaced and refugee populations, create employment opportunities, and establish an infrastructure to ensure adequate food supplies and health facilities for the poor in Central American countries which are in compliance with the Esquipulas II Accords.

Requires the President, in concert with the governments of Central America, other nations providing assistance, the United Nations, and international and regional organizations, to: (1) encourage and participate in the creation of a multi-donor, multi-sectoral coordinating mechanism to be known as the Central American Development Coordination Commission (CADCC); and (2) provide a certain amount of assistance for the implementation of, and U.S. participation in, such Commission. Designates the United Nations Development Programme as the social service and refugee and displaced persons technical assistance secretariat for the CADCC. Authorizes the President to furnish CADCC assistance to Central American countries which are in compliance with the Esquipulas Accords.

Urges the President to encourage and secure greater international support for the implementation of the recommendations of the International Commission for Central American Recovery and Development. Expresses the sense of the Congress that the President, in attempting to secure support for such recommendations, should exert leadership in multilateral and regional forums and at economic summits to further a multi-donor, multi-sector approach to the Central American crisis.

Requires the President to direct the Secretary of State to report to the Speaker of the House and the chairman of the Senate Foreign Relations Committee on U.S. military advisors in El Salvador.

Directs the U.S. Comptroller General to: (1) conduct an evaluation of administration of justice assistance provided to El Salvador to determine whether such assistance has achieved its intended purposes; and (2) report to the Senate Foreign Relations Committee and the House Foreign Affairs Committee on the findings of such evaluation.

Permits police training assistance to be furnished to El Salvador for FY 1990 if certain conditions are met. Requires the President, prior to obligating such assistance, to certify to specified congressional committees that El Salvador has made significant progress during the preceding six months in eliminating human rights violations.

Expresses the sense of the Congress that U.S. military assistance to Guatemala should continue as long as the Guatemalan Government makes concerted efforts to maintain civilian control over the military and security forces, prevents and prosecutes human rights abuses by such forces, and strengthens democratic processes and institutions. Limits the amount of non-lethal military assistance to be made available to Guatemala for FY 1990.

Authorizes additional appropriations to be made available to the Government of Honduras for environmental restoration programs in areas affected by displaced persons in Honduras.

Expresses the sense of the Congress that the Honduran Government has made a reasonable and good faith settlement offer to compensate a U.S. citizen for the expropriation of property in Trujillo, Honduras, and encourages the owner of such property to accept such offer.

Makes certain funds allocated for Honduras, but withheld from expenditure, available for expenditure. Authorizes the President to use such funds, any unearmarked development and ESF assistance funds, and funds made available to AID, for the expenses of election observer missions sent to Nicaragua.

Authorizes the provision of assistance to promote the production of soybean, soy oil, citrus fruit, or other appropriate crops in Bolivia and Peru if such production is not intended for export or if the President determines that the export of such commodities would not adversely affect U.S. exporters.

Part B: The Caribbean - Expresses the sense of the Congress that the Haitian Government must take concrete measures to demonstrate its commitment to the democratic processes set forth in the approved 1987 Haitian Constitution before the suspension of U.S. assistance to Haiti is lifted. Prohibits assistance under this Act or the Foreign Assistance Act of 1961, with specified exceptions, from being provided to Haiti unless the President certifies to the Senate Committee on Foreign Relations and the House Committee on Foreign Affairs that such processes have been adhered to by such Government.

Part C: South America - Expresses the sense of the Congress concerning the Falklands/ Malvinas Islands dispute between the United Kingdom and Argentina.

Authorizes the provision of international military education and training assistance to Chile for FY 1990 if the President reports to the Congress that: (1) a civilian, democratically-elected president is in office and has requested such funds; and (2) such government is making good faith efforts to resolve the murders of Orlando Letelier and Ronni Moffitt.

Amends the International Security and Development Cooperation Act of 1981 to exempt from a prohibition on assistance to Chile certain aircraft parts, tools, or related services to enhance the safety of Chilean Air Force aircraft.

Part D: Other Regional Provisions - Expresses the sense of the Congress that U.S. foreign policy interests will be well served by greater involvement and utilization of the Organization of American States in seeking solutions to regional conflicts.

Title X: Multilateral Lending and Development Institutions - Part A: The Inter-American Development Bank Authorization - Inter-American Development Bank Replenishment Act of 1989 -

Amends the Inter-American Development Bank Act to authorize the U.S. Governor of the Bank to vote for resolutions which: (1) were transmitted by the Board of Executive Directors to the Governors by resolution of April 19, 1989; (2) are pending before the Board of Governors of the Bank; and (3) provide for increases in the authorized capital stock of the Bank and resources of the Fund for Special Operations. Permits the Governor, upon adoption of such resolutions, to subscribe to a certain number of shares of the increase in capital stock and contribute a certain amount to the Fund. Authorizes appropriations to pay for such increases.

Part B: The Enhanced Structural Adjustment Facility - Amends the Bretton Woods Agreement to authorize the U.S. Governor of the International Monetary Fund to contribute a certain amount to the Interest Subsidy Account of the Enhanced Structural Adjustment Facility of the Fund. Authorizes appropriations.

Part C: Limitations on Expenditures for Multilateral Institutions - Limits the amount which may be obligated or expended for FY 1990 for U.S. participation in multilateral development banks.

Part D: International Monetary Fund - Directs the Secretary of the Treasury to instruct the U.S. Executive Director of the Fund to work for: (1) the addition to the Fund's staff of natural resource economists, poverty experts, development economists trained in the linkage between short-term exploitation of natural resources and long-term economic impacts, and other specialists trained in social issues; (2) the establishment by the Fund of a review of policy prescriptions to determine if the Fund's objectives were met and what the social and environmental impacts of such policy prescriptions were; and (3) the establishment by the Fund of long-term management of natural resources as a part of stabilization and adjustment policies, including the creation of energy-efficient economies to minimize the effect of global warming and provide consumer benefits. Requires the Secretary to report to the Congress on such changes.

Title XI: Peace Corps - Amends the Peace Corps Act to: (1) extend authorizations of appropriations for the Peace Corps through FY 1990; (2) shorten the period during which a former Foreign Service-appointed Peace Corps employee is ineligible for reemployment by the Peace Corps; and (3) establish the Foreign Currency Fluctuations, Peace Corps, Account to pay expenses for Peace Corps operations which exceed appropriations for such expenses as a result of currency exchange rate fluctuations.

Authorizes appropriations for such Account. Requires the Director of the Peace Corps to report to the Congress annually on such Account.

Title XII: Miscellaneous and General Provisions - Amends the Foreign Assistance Act of 1961 to increase the amount authorized to be used by the President for emergency assistance.

Limits the value of additions to stockpiles in foreign countries during FY 1990 and 1991.

Prohibits the provision of assistance to any country in default to the United States in payments on a loan for a period exceeding twelve (currently, six) months, except under specified conditions. Exempts from such prohibition international military education and training assistance as long as the recipient country has an elected government seeking to strengthen democratic institutions.

Terminates assistance under the Foreign Assistance Act of 1961 and the Arms Export Control Act (including the issuance of export licenses for the export of defense articles and services) to a country if the democratically-elected government of such country is overthrown by a military coup or decree or by Communist insurgency. Conditions the resumption of such assistance on the President's certification to specified congressional committees that a democratically-elected government has taken office. Exempts from such prohibition disaster relief or humanitarian assistance.

Amends the Foreign Relations Authorization Act, Fiscal Years 1986 and 1987 to revise provisions concerning the Senate Caucus on International Narcotics Control. Increases the amount authorized to be appropriated to the Caucus.

Amends the Foreign Assistance Act of 1961 to set forth requirements for the computation of annuities for certain members of the AID Inspector General Office staff and for mandatory retirement for such individuals.

Amends a specified Act to authorize the President, pursuant to agreement with a foreign country, to confer rights upon such country (with regard to service courts of friendly foreign forces) equivalent to those granted by such country to the United States.

Amends the Foreign Assistance Act of 1961 to add Afghanistan, Laos, and Cambodia to the list of Communist countries to which the provision of assistance is prohibited. Makes each determination by the President to remove a country from such list applicable for up to twelve months.

Requires the AID Administrator to report to the Senate Committee on Foreign Relations and the House Committee on Foreign Affairs on the problems of water resources management in the Jordan River Basin and Subsaharan Africa.

Authorizes the President to provide assistance for desalting and water treatment activities. Designates such assistance as the Desalination and Fresh Water Fund. Permits unobligated ESF assistance and funds from the Prototype Desalting Plant project to be used for such activities. Prohibits the disbursement of funds without the consultation of the Bureau of Reclamation of the Department of the Interior.

Prohibits the provision of assistance under any Act for educational scholarships or exchange programs for foreign nationals who are members of terrorist organizations.

Requires the President to report to the Senate Committee on Foreign Relations and the House Committee on Foreign Affairs on clean coal technologies export programs within Federal agencies and the feasibility of establishing an interagency commission for promoting the export and use of such technologies.

Directs the Secretary of State and the Secretary of Agriculture to report to specified congressional committees on foreign agricultural development programs of the European Community and the potential impact of the Europe 1992 plan on market access to U.S. agricultural exports.

Requires the President, in order to gauge the extent to which U.S. firms can compete for the provision of commodities and services under other major donors' assistance programs, to report to the Senate Committee on Foreign Relations and the House Committee on Foreign Affairs on specific issues concerning the programs of the major Western donors and Japan. Requires such report to include recommendations for ways in which U.S. firms can participate more fully in such programs and an evaluation of the effect that subsidization of domestic suppliers of commodities or services under such programs would have on the willingness of donor countries to further untie their assistance programs to permit participation by other countries.

Directs the Secretary of Defense to report to the Congress on the Soviet military presence in Africa.

Urges the Government of Yugoslavia to: (1) assure that further violence does not occur in Kosovo; and (2) observe its obligations under the Helsinki Final Act and the United Nations Declaration of Human Rights to assure full protection of the rights of national groups in Yugoslavia. Requests the President and the State Department to monitor closely the human rights conditions in Yugoslavia and calls upon the President to express such concerns to Yugoslavia.

Authorizes the use of U.S.-owned excess foreign currencies for development assistance and the support of any institution providing education for a significant number of U.S. nationals. Prohibits such currencies from being used in Communist countries to which the provision of assistance is prohibited.

Title XIII: Index of Economic Freedom Act of 1989 - Index of Economic Freedom Act of 1989 - Directs the Administrator to develop a system for evaluating the economic freedom and opportunities of individuals in countries eligible for development assistance. Designates such system as the Index of Economic Freedom. Requires the Index to assign a numerical rating for property rights, business regulations, informal sector, wage and price controls, taxation, trade policy, restrictions on investment and capital flows, size of state sector, and banking based on the degree to which each such factor reflects the degree of economic freedom and opportunity in a country.

Directs the Administrator to apply the Index to eligible countries and to report to the Speaker of the House and the chairman of the Senate Foreign Relations Committee on the findings of such evaluation. Prohibits certain assistance from being provided to a country under the Foreign Assistance Act of 1961 unless the Index data on such country has been considered.

Requires the Administrator to use the Index to: (1) promote improvements in the underlying economic conditions evaluated by the Index while retaining flexibility in implementing development programs; and (2) evaluate the direction of policy changes in less developed countries.

Directs the Secretary of the Treasury to direct the U.S. directors to specified multilateral development institutions to consider opposing the extension of financial assistance to countries which have rated poorly under the Index.

Title XIV: Repeals and Effective Date - Repeals specified provisions of named Acts. Sets forth the effective date of this Act.