A bill to define the circumstances in which foreign states are immune from the jurisdiction of the U.S. courts and in which execution may not be levied on their assets.

Provides that a foreign state shall be immune from the jurisdiction of the Courts of the United States and of the states except in any case: (1) in which the foreign state has waived its immunity either explicitly or by implication, notwithstanding any withdrawal of the waiver which the foreign state may purport to effect after the claim arose; (2) in which the action is based upon a commercial activity carried on in the United States by the foreign state, or upon an act performed in the United States in connection with a commercial activity of the foreign state elsewhere, or upon an act outside the territory of the United States in connection with a commercial activity of the foreign state elsewhere and that act has a direct effect within the territory of the United States; (3) in which rights in property taken in violation of international law are in issue and that property or any property exchanged for such property is present in the United States in connection with a commercial activity carried on in the United States by the foreign state or that property or any property exchanged for such property is owned or operated by an agency or instrumentality of the foreign state and agency or instrumentality is engaged in a commercial activity in the United States; (4) in which rights in property in the United States, acquired by succession or gift, or rights in immovable property situated in the United States are in issue; or (5) in which money damages are sought against a foreign state for personal injury or death, or damage to or loss of property, caused by the negligent or wrongful act or omission in the United States of that foreign state or of any official or employee thereof except that a foreign state shall be immune in any case under this paragraph in which a remedy is available under article VIII of the Agreement Between the Parties to the North Atlantic Treaty Regarding the Status of Their Forces.

Provides that a foreign state shall be immune from the jurisdiction of the courts of the United States and the States in any case relating to its public debt under the foreign state has explicitly waived its immunity.

Declares that in any action brought by a foreign state in a court of the United States or of any State, the foreign state shall not be accorded immunity with respect to: (1) any counterclaim arising out of the transaction or occurrence that is the subject matter of the claim of the foreign state; or (2) any other counterclaim that does not claim relief exceeding in amount or differing in kind from that sought by the foreign state.

Establishes procedures for services of process upon a foreign state, or agency or instrumentality thereof, in the United States district courts.

Provides that the assets in the United States of a foreign state shall be immune from attachment and from execution unless: (1) such attachment or execution relates to a claim which is based on commercial activity or on rights in property taken in violation of international law and present in the United States in connection with that activity, or (2) the foreign state or political subdivision has waived its immunity from attachment for purposes of execution or from execution of a judgment either explicitly or by implication, notwithstanding any purported withdrawal of the waiver after the claim arose.

Gives the district courts original jurisdiction of all civil actions, regardless of the amount in controversey, against foreign states or political subdivisions of foreign states, or agencies or instrumentalities of such a state or subdivision, other than agencies or instrumentalities which are citizens of a state of the United States. (Adds 28 U.S.C. 1602-1611, 1330)