Foreign Relations FY98 Appropriations bill

TABLE OF CONTENTS:

Title I: Export and Investment Assistance

Title II: Bilateral Economic Assistance

Title III: Military Assistance

Title IV: Multilateral Economic Assistance

Title V: General Provisions

Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 - Title I: Export and Investment Assistance - Makes appropriations for FY 1998 for: (1) direct loans, loan guarantees, tied-aid grants, insurance, and administrative expenses under Export-Import Bank programs; (2) Overseas Private Investment Corporation (OPIC) direct and guaranteed loans and credit and insurance programs, including administrative expenses; and (3) the Trade and Development Agency.

Title II: Bilateral Economic Assistance - Makes appropriations for FY 1998 for: (1) expenses of the President in carrying out certain programs under the Foreign Assistance Act of 1961; (2) the Agency for International Development (AID) for specified development assistance (allowing availability of limited amounts for the Inter-American Foundation and the African Development Foundation); (3) population planning assistance; (4) specified projects aimed at reunification of Cyprus; (5) democracy and humanitarian activities in Burma; (6) the Guatemala Clarification Commission; (7) international disaster assistance; (8) debt restructuring; (9) micro and small enterprise development programs; (10) guaranteed loans for the urban and environmental credit program; (11) private and voluntary organizations; (12) the Foreign Service Retirement and Disability Fund; (13) operating expenses of AID and the AID Office of Inspector General; (14) Economic Support Fund (ESF) assistance (earmarking amounts for Israel, Egypt, and Jordan, and for the Special Investigative Unit (SIU) of the Haitian National Police); (15) economic assistance for Eastern Europe and the Baltic States (earmarking amounts for Bosnia and Herzegovina, subject to specified conditions); (16) assistance for the new independent states of the former Soviet Union (subject to specified conditions, and earmarking amounts for Mongolia, Ukraine, Georgia, and Armenia, and a U.S. contribution to the Trans-Caucasus Enterprise Fund); (17) the Peace Corps (but with a prohibition on the use of such funds for abortions); (18) international narcotics control; (19) migration and refugee assistance; (20) the Emergency Refugee and Migration Assistance Fund; and (21) nonproliferation, anti-terrorism and related programs and activities (specifying conditions on funds for the Korean Peninsula Energy Development Organization (KEDO)). Bars the use of development assistance funds for: (1) coercive abortions or involuntary sterilizations; and (2) U.S. private and voluntary organizations which obtain less than 20 percent of annual funding from sources other than the U.S. Government.

Prohibits the availability of funds for economic revitalization programs in Bosnia and Herzegovina if the President certifies to the Committees on Appropriations: (1) that they have not complied with article III of annex 1-A of the General Framework Agreement for Peace in Bosnia and Herzegovina concerning the withdrawal of foreign forces; and (2) that intelligence cooperation on training, investigations, and related activities between Iranian officials and Bosnian officials has not been terminated.

Prohibits funds to: (1) Russia unless the President certifies to the Committees on Appropriations that it has terminated arrangements to provide Iran with technology to develop a nuclear program; (2) Cambodia until the Secretary of State reports to such Committees that specified political conditions have been met; and (3) the Government of Azerbaijan until the President reports to the Congress that it has ceased all blockades against Armenia and Nagorno-Karabakh.

Title III: Military Assistance - Makes appropriations for FY 1998 for: (1) international military education and training (IMET) (with a bar on such assistance to Guatemala); (2) foreign military financing grants and direct loans (earmarking amounts for Israel, Egypt, Jordan, Greece, Turkey, Estonia, Latvia, Lithuania, Poland, Hungary, and the Czech Republic); and (3) international peacekeeping operations (subject to certain conditions).

Prohibits foreign military financing for Sudan, Liberia, and Guatemala.

Title IV: Multilateral Economic Assistance - Makes appropriations for FY 1998 for the U.S. contribution to: (1) the International Bank for Reconstruction and Development (World Bank); (2) the International Development Association; (3) the Inter-American Development Bank; (4) the Enterprise for the Americas Multilateral Investment Fund; (5) the Asian Development Bank; (6) the Asian Development Fund; (7) the European Bank for Reconstruction and Development; (8) the North American Development Bank; and (9) the International Monetary Fund (in the dollar equivalent of specified Special Drawing Rights).

Makes appropriations for FY 1998 for international programs and organizations. Sets certain restrictions on international organization funding, including prohibiting the use of funds made available to the United Nations Population Fund (UNFPA) for activities in China. Prohibits the use of funds for: (1) the Korean Peninsula Energy Development Organization (KEDO); and (2) the International Atomic Energy Agency (IAEA).

Authorizes appropriations for FY 1998 for the U.S. contribution to specified international financial institutions.

Title V: General Provisions - Amends the Support for East European Democracy Act to revise limitations on the compensation of Enterprise Fund employees to set forth circumstances under which Enterprise Fund board members and any other firms, associations, or entities in which they serve will not be paid from the Fund.

(Sec. 502) Prohibits the use of funds for bilateral funding of international financial institutions.

(Sec. 503) Sets forth limits on the use of appropriations, including no more than specified maximums for official residence expenses, entertainment expenses, and representation allowances for AID, and for entertainment and representation allowances for the Inter-American Foundation and the Trade and Development Agency. Limits the use of funds for entertainment expenses of the Peace Corps, or under the Foreign Military Financing Program.

(Sec. 506) Prohibits the use of funds for: (1) the export of nuclear equipment, fuel, or technology (except for nuclear safety purposes); (2) direct assistance or reparations to Cuba, Iraq, Libya, North Korea, Iran, Sudan, or Syria; (3) assistance to any country whose duly elected head of government is deposed by military coup or decree; (4) certain transfers between appropriations accounts without prior presidential consultation with Congress; (5) assistance to any country in default in excess of a year on payments on a U.S. loan (except for Nicaragua, and narcotics-related assistance for Colombia, Bolivia, and Peru); and (6) assistance (except in certain circumstances) for production of any commodity for export by a foreign country, if the commodity is likely to be in surplus on world markets when the resulting productive capacity is expected to become operative, and if the assistance will cause substantial injury to U.S. producers of a similar commodity.

(Sec. 514) Directs the Secretary of the Treasury to instruct the U.S. Executive Directors of specified international financial institutions to oppose any assistance for the production or extraction of any commodity or mineral for export if it is in surplus on world markets and such assistance will cause substantial injury to U.S. producers of a similar commodity.

(Sec. 516) Prohibits the use of international organization funds for Libya, Iran, or certain Communist countries.

(Sec. 517) Declares it is U.S. policy that appropriations for ESF funds allocated to Israel shall not be less than the annual debt repayment from Israel to the United States.

(Sec. 518) Prohibits the use of development assistance funds for abortions or involuntary sterilizations as methods of family planning or to motivate or coerce any person to practice abortions, or provide any financial incentive to undergo sterilization.

(Sec. 519) Declares that nongovernmental and multilateral organizations shall not be subjected to requirements more restrictive than requirements applicable to foreign governments in determining eligibility for population planning assistance.

(Sec. 520) Requires the President to report to the appropriate congressional committees on annual arms sales proposals covering major weapons under the Arms Export Control Act.

(Sec. 521) Prohibits the use of funds for Colombia, Dominican Republic, Guatemala (except for development assistance), Haiti, Liberia, Pakistan, Peru, Serbia, Sudan, or the Democratic Republic of Congo, except through the regular notification procedures of the Committees on Appropriations.

(Sec. 523) Makes funds available to AID for family planning, health, child survival, and basic education and AIDS research and control in developing countries.

(Sec. 524) Bars funding for indirect assistance or reparations to Cuba, Iraq, Libya, Iran, Syria, North Korea, or China unless the President certifies that the withholding of such funds is contrary to the U.S. national security interest.

(Sec. 525) Amends the Arms Export Control Act to extend the President's waiver authority with respect to reciprocal leasing through FY 1998.

(Sec. 526) Requires the Department of Defense (DOD) to notify the Committees on Appropriations before providing excess DOD articles to certain NATO and major non-NATO countries.

(Sec. 528) Prohibits bilateral assistance funds to any country which the President determines grants sanctuary from prosecution to any individual or group which has committed an act of international terrorism or otherwise supports such activities. Authorizes a waiver of this prohibition by the President for national security and humanitarian reasons, requiring notification to the Committees on Appropriations.

(Sec. 529) Authorizes the commercial leasing of defense articles (instead of government-to-government sale) to Israel, Egypt, NATO, and major non-NATO allies if the President determines that there are compelling foreign policy or national security reasons.

(Sec. 530) Requires all AID contracts and subcontracts to include a clause requiring that U.S. insurance companies have a fair opportunity to bid for insurance when insurance is necessary or appropriate.

(Sec. 531) Prohibits U.S. sale of Stinger missiles in the Persian Gulf region, with certain exceptions.

(Sec. 532) Authorizes nongovernmental organizations which are AID grantees or contractors to place funds made available to them under this Act in interest bearing accounts in order to enhance their participation in economic activities under the Foreign Assistance Act of 1961, including endowments and debt-for-development and debt-for-nature exchanges.

(Sec. 533) Directs the Administrator of AID to require foreign countries that receive foreign assistance which results in the generation of local currencies to deposit such currencies in a separate account to be used to finance foreign assistance activities.

(Sec. 534) Prohibits payments to any international financial institution while the U.S. Executive Director to the institution is compensated at a rate in excess of that for a specified position under the Executive Schedule.

(Sec. 535) Bars assistance to any country that is not in compliance with the United Nations (UN) sanctions against Iraq unless the President certifies to the Congress that such assistance: (1) is in the U.S. national interest; (2) will directly benefit the needy people in that country; or (3) will be humanitarian assistance for foreign nationals who have fled Iraq and Kuwait.

(Sec. 537) Declares that provisions under this or any other Act authorizing appropriations for foreign operations or export financing shall not be construed to prohibit activities authorized by the Peace Corps Act. Requires an agency to report to the Committees on Appropriations whenever it is conducting or proposing activities in a country for which such assistance is prohibited.

(Sec. 538) Prohibits the use of funds to provide: (1) any financial incentive to a business for purposes of inducing it to relocate outside the United States if it will reduce the number of employees in the United States; (2) assistance for establishing or developing in a foreign country an export processing zone or other designated area in which a country's tax, tariff, labor, environment, and safety laws do not apply to activities in the area, unless the President certifies that such assistance is not likely to cause a loss of U.S. jobs; or (3) assistance for any project that contributes to the violation of internationally recognized workers rights in the recipient country.

(Sec. 539) Declares that no sanction, prohibition, or restriction against Serbia or Montenegro may cease to be effective, unless: (1) the President submits to the Congress a specified certification with respect to human rights and progress toward self-determination in Kosova; and (2) certain requirements are met.

(Sec. 540) Declares that funds appropriated under this Act for Afghanistan, Lebanon, and for victims of war, displaced children, displaced Burmese, humanitarian assistance for Romania, and humanitarian assistance for the peoples of Kosova may be made available notwithstanding any other provision of law.

Authorizes the use of foreign assistance funds to support: (1) tropical forestry and energy programs aimed at reducing emissions of greenhouse gases; and (2) biodiversity conservation activities.

Authorizes the President to use up to $40 million (currently, not more than $10 million) in emergency assistance funds.

Authorizes AID to employ personal services contractors to administer programs for the West Bank and Gaza.

(Sec. 541) Expresses the sense of the Congress with respect to: (1) immediate public renunciation by Arab League countries of the boycott of Israel (reinstated in 1997) and of American firms having commercial ties with Israel; and (2) steps the President should take to encourage such renunciation.

(Sec. 542) Authorizes the use of ESF funds to strengthen the administration of justice in countries in Latin America, the Caribbean, and in other regions. Allows such use of ESF funds (including for anti-narcotics activities) for Bolivia, Colombia, and Peru, notwithstanding specified provisions of the Foreign Assistance Act of 1961.

(Sec. 543) Declares that restrictions on assistance to foreign countries contained in this Act or any other Act (except those relating to international terrorism or human rights violations) shall not be construed to restrict assistance: (1) in support of certain programs of nongovernmental organizations; or (2) under specified provisions of the Agricultural Trade Development and Assistance Act of 1954.

(Sec. 544) Authorizes the reprogramming of earmarked appropriations for other programs within the same account, provided certain requirements are met.

(Sec. 546) Prohibits the use of funds for publicity or propaganda purposes within the United States that were not authorized before the enactment of this Act.

(Sec. 547) Prohibits the use of funds to pay any assessments, arrearages, or dues of any U.N. member.

(Sec. 549) Prohibits the provision of funds to a private voluntary organization that fails to provide any document, file, or record necessary to the auditing requirements of AID.

(Sec. 550) Prohibits the provision of funds to any foreign government that provides lethal military equipment to a country that the Secretary of State has determined has a terrorist government, unless the President determines that the furnishing of such assistance is in the U.S. national interest.

(Sec. 551) Withholds assistance to a foreign country in an amount equal to 110 percent of the total unpaid parking fines and penalties owed by the country to the District of Columbia.

(Sec. 552) Prohibits the obligation of any appropriations for the Palestine Liberation Organization (PLO) for the West Bank and Gaza unless the President has exercised certain authorities to suspend prohibitions on assistance to the PLO.

(Sec. 554) Permits the President to provide up to a specified amount of commodities and services to the UN War Crimes Tribunal if doing so will contribute to a just resolution of charges regarding genocide or other violations of international law in the former Yugoslavia.

(Sec. 555) Authorizes disposal on a grant basis in foreign countries of demining equipment used in support of the clearing of land mines and unexploded ordnance for humanitarian purposes.

(Sec. 556) Prohibits the obligation of appropriations to create in Jerusalem a new U.S. agency office for the purpose of conducting U.S. business with the Palestinian Authority over Gaza and Jericho (or any successor Palestinian governing entity) provided for in the Israel-PLO Declaration of Principles.

(Sec. 557) Prohibits the obligation of certain funds appropriated for Informational Program activities to pay for: (1) alcoholic beverages; (2) food (other than food provided at a military installation) not provided in conjunction with Informational Program trips where students do not stay at a military installation; or (3) entertainment expenses for recreational activities.

(Sec. 558) Urges, to the greatest extent practicable, that assistance provided or used for purchases should use American equipment and products. Requires Federal agency heads, in providing financial assistance to or entering into any contract with any entity using funds made available in this Act, to notify such entity of this intention.

(Sec. 559) Authorizes the President to reduce amounts owed to the United States by eligible countries as a result of: (1) housing guarantees made pursuant to the Foreign Assistance Act of 1961; or (2) credits extended or guarantees issued under the Arms Export Control Act.

Permits exercise of such authority only: (1) to implement multilateral official debt relief and referendum agreements known as the Paris Club Agreed Minutes; and (2) with respect to countries with heavy debt burdens that are eligible to borrow from the International Development Association (but not from the International Bank for Reconstruction and Development) (IDA-only countries). Prescribes additional conditions for the exercise of such authority.

(Sec. 560) Authorizes the President to engage in certain debt buybacks or sales. Authorizes sale, reduction, or cancellation of certain loans to foreign governments, upon receipt of payment from an eligible purchaser that plans to use such loans only for the purposes of engaging in debt-for-equity swaps, debt-for-development swaps, or debt-for-nature swaps. Limits such authority to funds appropriated by this Act under the heading of debt restructuring.

(Sec. 561) Authorizes the availability of funds for Liberia.

(Sec. 562) Requires the President to determine and certify to the Congress that the Guatemalan military is cooperating with efforts to implement a peace settlement and resolve human rights abuses which elements of the Guatemalan military forces are alleged to have committed, ordered, or attempted to thwart the investigation of, as a condition for: (1) availability of any funds provided in this Act for the Guatemalan military forces; and (2) the lifting of restrictions on Guatemala under the heading International Military Education and Training (IMET) and Foreign Military Financing Program. Makes such condition inapplicable to funds made available to implement a cease-fire or peace agreement. Limits the availability of such funds to expansion of IMET only.

(Sec. 563) Requires bilateral and multilateral assistance sanctions against countries harboring war criminals indicted with respect to Rwanda.

(Sec. 564) Prohibits provision to the Government of Haiti of any funds appropriated or otherwise made available by this Act unless the President reports to Congress that such Government: (1) is conducting thorough investigations of extrajudicial and political killings; (2) is cooperating with U.S. authorities in such investigations; (3) has made progress in privatizing major government-owned enterprises (parastatals); and (4) has taken action to remove from the Haitian National Police, national palace and residential guard, ministerial guard, and any other public security entity individuals who have committed human rights violations. Makes such prohibition inapplicable to humanitarian, electoral, counter narcotics, or development assistance. Authorizes the President to waive such conditions on a semiannual basis upon determination and certification to the appropriate congressional committees that it is in the U.S. national interest.

(Sec. 565) Requires a specified annual report of the Secretary of State containing the voting record of each foreign member country of the UN to include a side-by-side comparison of each country's overall support for the United States at the UN and the amount of U.S. assistance provided to it in FY 1996.

(Sec. 566) Requires the Secretary of Labor to report to the Committees on Appropriations on labor practices in Burma.

(Sec. 567) Makes the Government of Haiti eligible to purchase U.S. defense articles and services for the civilian-led Haitian National Police and Coast Guard.

(Sec. 568) Directs the Secretary of the Treasury to instruct the U.S. Executive Directors of the World Bank and the International Development Association to encourage such institutions to: (1) provide timely public information on procurement opportunities available to U.S. suppliers, especially small businesses; and (2) consult systematically with local communities as part of the normal lending process on the potential impact of loans, and expand participation of affected peoples and nongovernmental organizations in decisions on the selection, design and implementation of policies and projects.

(Sec. 569) Prohibits the use of funds for the security forces of a foreign country if the Secretary of State believes they have committed gross violations of human rights, unless the Secretary reports to the Committees on Appropriations that such country is taking steps to bring the responsible persons to justice.

(Sec. 570) Directs the Secretary of the Treasury to instruct the U.S. Executive Directors of international financial institutions to oppose loans to the Government of Cambodia (except to support basic human needs) unless it has: (1) not been established in office by use of force; (2) discontinued political violence against journalists and members of opposition parties; (3) established an independent election commission; (4) protected the rights of voters, candidates, and election observers by establishing laws and procedures guaranteeing freedom of speech and assembly; (5) eliminated corruption and collaboration with narcotics smugglers; and (6) been elected in a free and fair election.

(Sec. 571) Requires that any agreement between the United States and the Government of Indonesia for the sale of lethal weapons shall state that such items will not be used in East Timor.

(Sec. 573) Provides for bilateral and multilateral assistance sanctions (with humanitarian, democratization, and certain infrastructure project exceptions) against countries harboring war criminals indicted with respect to the former Yugoslavia.

(Sec. 574) Amends the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990 to extend through FY 1998 the authorization for admission into the United States of a specified number of refugees from the independent states of the former Soviet Union, Estonia, Latvia, and Lithuania based on religious persecution owing to participation in the Ukrainian Catholic or Orthodox churches.

Makes September 30, 1998, the latest allowable entry date for specified aliens from the former Soviet Union, Estonia, Latvia, Lithuania, Vietnam, Laos, and Cambodia for purposes of qualifying for adjustment of status.

(Sec. 575) Authorizes appropriations for FY 1998 for direct loans and loan guarantees for foreign development assistance.

(Sec. 576) Authorizes for FY 1998 and 1999 the use of DOD funds for crating, packing, handling, and transportation of excess defense articles to countries that are eligible to participate in the Partnership for Peace and that are eligible for assistance under the Support for East European Democracy (SEED) Act of 1989.

(Sec. 577) Makes funds available for FY 1998 for defense article stockpiles in foreign countries, including the Republic of Korea and Thailand.

(Sec. 579) Expresses the sense of the Senate that Estonia, Latvia, and Lithuania: (1) are to be commended for their progress toward political and economic reform and meeting the guidelines for prospective NATO members; (2) would make an outstanding contribution to furthering NATO goals and enhancing stability in Europe; and (3) upon satisfaction of all relevant criteria should be invited to become full NATO members at the earliest date.

(Sec. 580) Prohibits the use of funds for the Government of the Russian Federation unless the President certifies to specified congressional committees that the Federation has not enacted laws or promulgated executive orders that discriminate against religious minorities in violation of international agreements on human rights and religious freedoms to which it is a signatory, including the European Convention and the 1989 Vienna Concluding Document of the Conference on Security and Cooperation in Europe.

(Sec. 581) Expresses the sense of the Senate that U.S. policy in the South Caucasus and Central Asian countries should be to: (1) promote sovereignty and independence with democratic government; (2) assist in the resolution of regional conflicts; (3) promote economic cooperation and market-oriented principles; (4) assist in the development of infrastructure necessary for communications, transportation, and energy and trade on an East-West axis in order to build strong relations and commerce between those countries and the democratic, market-oriented countries of the Euro-Atlantic community; and (5) support U.S. business interests and investments in the region.

(Sec. 582) Directs the Secretary of State to: (1) report annually to specified congressional committees on religious persecution on a country-by- country basis; and (2) establish a Prisoner Information Registry of all political prisoners, prisoners of conscience, and prisoners of faith on a country-by-country basis.

Expresses the sense of the Congress that the Congress, the President, and the Secretary should work with the governments of the People's Republic of China and other countries to establish a Commission on Security and Cooperation in Asia which would be modeled after the Commission on Security and Cooperation in Europe.

(Sec. 583) Directs the President to devote additional resources to gathering intelligence information regarding human rights abuses and acts of religious persecution, and to report on such data to specified congressional committees.

(Sec. 584) Earmarks amounts appropriated by this Act for the Communal Areas Management Programme for Indigenous Resources (CAMPFIRE) in Zimbabwe (with a bar on use of funds for the trophy hunting of elephants or other endangered species).

(Sec. 585) Declares that no provisions under the Foreign Assistance Act of 1961 or any other law shall be construed to prohibit Pakistan from receiving: (1) OPIC programs if it is in the national interest; or (2) assistance for any training activity or any activity to promote the development of democratic institutions as long as it continues to have a democratically elected government.

Expresses the sense of the Congress that the Director of the Trade and Development Agency should use trade and development program funds to promote U.S. exports to Pakistan.

(Sec. 586) Expresses the sense of the Senate that: (1) any disapproval by the European Commission with respect to the Boeing Company and McDonnell Douglas merger would constitute an interference in a U.S. business transaction that would threaten thousands of American aerospace jobs; and (2) the President should take steps to protect U.S. interests with respect to such merger.

(Sec. 587) Prohibits the obligation of funds for the Palestinian Authority unless the President makes a certain certification to the Congress with respect to combatting terrorism and specified bombings.

(Sec. 588) Authorizes the use of funds made available for the United States-Asia Environmental Partnership for activities in the People's Republic of China.

(Sec. 589) Directs the President to provide: (1) to the Congress an account of all Federal agency obligations and expenditures for climate change programs and activities (domestic and international) for FY 1997 and 1998; and (2) to the appropriate congressional committees any plan for programs thereafter in the context of negotiations to amend the Framework Convention on Climate Change (FCCC).

(Sec. 590) Extends through FY 1999 the authority of OPIC to issue investment insurance and guarantees. Revises requirements for investment insurance and guarantees to specify a single maximum contingent liability outstanding at any time of $29 million in the aggregate for investment insurance, investment guarantees, and direct investment.

(Sec. 591) Directs the President to withhold a specified amount of foreign assistance funds (except development or humanitarian assistance) from countries that violate any UN sanction against Libya.

(Sec. 592) Amends the War Crimes Act of 1996 to include violations of other specified international conventions or protocol relating to the laws of warfare (including the Protocol on Prohibitions or Restrictions on the Use of Mines, Booby-traps and Other Devices as amended at Geneva on May 3, 1996) within the offense of war crimes and conduct subject to a fine, imprisonment for life or a term of years, or both, and the death penalty, if death results to the victim.

(Sec. 593) Prohibits the use of IMET funds for the training of members of any Latin American military or security force until certain conditions have been met. Directs the Secretary of State to report to the appropriate congressional committees on progress made to improve military training of Latin American participants in the areas of human rights and civilian control of the military, including plans for implementing additional expanded IMET programs for Latin America during the next three fiscal years.

(Sec. 594) Expresses the sense of the Senate that the Department of State should list the Liberation Tigers of Tamil Eelam as a terrorist organization.

(Sec. 595) Bars funds to the Government of Peru for IMET unless the President certifies to the Congress that it is taking all necessary steps to ensure that U.S. citizens held in prisons there are accorded timely, open, and fair legal proceedings in civilian courts.

(Sec. 596) Bars funds to the Government of Congo until the President reports to the Congress that it is cooperating fully with investigators from the UN or any other international relief organizations in accounting for human rights violations committed there or in adjacent countries.