International Security and Development Cooperation Act of 1985

International Security and Development Cooperation Act of 1985 - Title I: Military Sales and Related Programs - Amends the Arms Export Control Act to authorize appropriations to carry out the foreign military sales credit programs for FY 1986. Earmarks specified portions of such sales credits for Israel and for Egypt. Grants Greece, South Korea, the Philippines, Portugal, Thailand, and Turkey extended credit terms for arms sales credits or guarantees. Excludes a pro rata share of fixed base operation costs from the administrative surcharge charged for foreign military arms sales.

Authorizes the President to provide free cataloging data and cataloging services to the North American Treaty Organization (NATO) or its member governments if NATO or a member government provides such data and services on a reciprocal basis to the United States. Authorizes the President to provide free contract administration services in connection with certain defense contracts with NATO.

Changes the method of financing foreign military sales credits. Authorizes the President to finance foreign military sales on such terms and conditions as the President may determine. Authorizes the President to charge interest at a concessionary rate if it is in the national interest. Requires foreign military loans to be repaid within 12 years unless a longer period is specifically authorized by statute for such country or international organization.

Authorizes and makes appropriations as may be necessary to pay claims under foreign military loan guarantees to the extent funds in the guarantee reserve are inadequate.

Requires the President to report to the Congress, by April 1 of each year, an estimate of the sales and delivery of weapons and weapons-related defense equipment by all major arms suppliers to all major recipient countries in the developing world during the preceding year.

Authorizes the Secretary of Defense to carry out the European air defense agreements and, in carrying out those agreements, to: (1) provide certain articles and services to West Germany; and (2) accept from West Germany certain articles and services in return. Authorizes the Secretary of Defense to take certain administrative actions in connection with the administration of the European air defense agreements. Makes special concessions in connection with the sale of certain Patriot missile fire units to West Germany.

Authorizes inclusion of certain material (relating to letters of offer to sell major defense equipment) in the President's quarterly reports to the President on military exports to be contained in a classified addendum.

Increases the criminal penalties for certain violations of the Arms Export Control Act. Imposes a maximum civil fine for such violations.

Includes charges for official reception and representation expenses in the administrative surcharge charged in connection with foreign military sales. Limits the amount of funds from such source that may be used for official reception and representation expenses.

Declares that no law shall be construed to prohibit the sale or licensing for export of items essential to the safe operation of any defense article.

Authorizes using the Special Defense Acquisition Fund to: (1) acquire defense articles and services in anticipation of their transfer, on a reimbursable basis, to the Department of Defense to replace items transferred from the inventory of the Department to foreign countries and international organizations if such items are no longer in production for use by U.S. armed forces; and (2) keep certain defense articles and services on continuous order in anticipation of their transfer to foreign countries and international organizations.

Amends the Foreign Assistance Act of 1961 to authorize appropriations for FY 1986 for military assistance programs. Provides that if military assistance funds are used to pay for foreign military sales the prices shall exclude the costs of salaries of members of U.S. armed forces.

Authorizes the President, if it is in the national interest, to waive the requirement that proceeds from the sale of military assistance program equipment by a foreign country must be paid to the United States.

Imposes a limit on the value of additions to stockpiles of defense articles in foreign countries for FY 1986.

Makes permanent the current list of countries where more than six members of the U.S. armed forces may be assigned. Adds to that list Pakistan, Tunisia, Sudan, El Salvador, Honduras, and Venezuela.

Authorizes appropriations for FY 1986 for international military education and training assistance.

Authorizes the President to provide for attendance of foreign military personnel at professional military education institutions in the United States (other than Service academies) at no charge if such attendance is pursuant to a reciprocal exchange student agreement.

Encourages the President to allocate a portion of the international military education and training funds to provide training in certain maritime law enforcement skills. Exempts such training from the prohibition against using foreign assistance funds for police training.

Authorizes appropriations for peacekeeping operations for FY 1986. Authorizes the President, in the event of an unforeseen emergency that requires immediate assistance, to direct the drawdown of commodities and services from the inventory and resources of any Federal agency. Limits the amount of the value of such drawdown. Authorizes appropriations to reimburse such agency in such circumstances. Requires the President to notify the Congress before exercising such authority.

Title II: Economic Support Fund - Authorizes appropriations for the Economic Support Fund for FY 1986. Earmarks a specified amount of such funds for emergency economic assistance. Deletes certain obsolete provisions.

Title III: Development Assistance - Adds these principles to the principles guiding U.S. development assistance policy: (1) U.S. encouragement of policy reforms is necessary if developing countries are to achieve economic growth with equity; (2) development assistance should promote private sector activity in open and competitive markets in developing countries; (3) U.S. cooperation in development should recognize as essential the need of developing countries to have access to appropriate technology in order to improve food, water, health, housing, education, agriculture, and industry; and (4) U.S. assistance should focus on establishing and upgrading the institutional capacities of developing countries in order to promote long term development.

Authorizes appropriations for FY 1986 for: (1) agriculture, rural development, and nutrition programs, including funds for aiding private and voluntary organizations engaged in world hunger issues; (2) population and health development; (3) education and human resources development; (4) energy, private voluntary organizations, and selected development activities; (5) contributions to the private sector revolving fund; and (6) the Sahel development program.

Deletes the provision authorizing additional appropriations for the Child Survival Fund.

Requires that priority consideration be given, in planning economic assistance programs, to programs that would help reduce illicit narcotics cultivation. Authorizes the agency primarily responsible for administering development assistance to use resources for activities aimed at increasing awareness of the effects of production and trafficking of illicit narcotics on source and transit countries.

Authorizes appropriations for FY 1986 for the worldwide housing guarantee program. Deletes the limitation on the average face value of such housing guarantees issued in any fiscal year.

Authorizes appropriations for FY 1986 for Export-Import Bank guarantees for financing transactions involving exports for the use of the private sector in Central American countries. Increases the authorization for FY 1985 for such guarantees.

Increases the amount of development assistance funds which the President is authorized to spend to help meet the needs of disadvantaged children in Asia.

Title IV: Central America Democracy, Peace, and Development Initiative - Sets forth U.S. policy with respect to Central America. Directs the President to ensure that assistance authorized by the Foreign Assistance Act of 1961 and the Arms Export Control Act to Central American countries is furnished in a manner which fosters demonstrated progress towards specified objectives. Terminates specified reporting requirements applicable to El Salvador.

Expresses congressional support for the peace initiatives taken by the Contadora group and for the Document of Objectives which sets forth the framework for negotiating a peaceful settlement to the conflict in the region.

Expresses the sense of the Congress that: (1) the President should enter into negotiations with Central American countries to establish a multilateral organization for the development of the Central American region; and (2) the organization should be based on specified principles. Authorizes the President to participate in such organization. Directs the Administrator of the agency primarily responsible for administering the development assistance programs to prepare a proposal to carry out U.S. participation in such organization and to keep the Congress informed concerning the development of such proposal. Directs the President to transmit to the Congress the text of any agreement the President proposes to sign providing for the establishment of and U.S. participation in such organization at least 60 days before the President signs such agreement. Provides for congressional review of such agreement.

Authorizes appropriations for non-military assistance for Central American countries for FY 1987 through 1989.

Authorizes the President to furnish assistance to countries and organizations in order to strengthen the administration of justice in Latin America and the Caribbean. Requires the President to notify specified congressional committees at least 15 days before obligating funds for such purposes.

Exempts from the prohibition against using U.S. funds to aid governments that nationalize property that monetary assistance made available to a government to compensate nationals of a country in accordance with a land reform program, if such land reform program is in the national interest.

Title V: Miscellaneous Provisions - Authorizes appropriations for FY 1986 for: (1) American schools and hospitals abroad; (2) international organizations and programs; (3) international narcotics control; (4) international disaster assistance; and (5) anti-terrorism assistance.

Changes the reporting requirements for the international narcotics control program. Requires the last quarterly report of each fiscal year to include a report on the total assistance provided during that fiscal year. Requires the President to transmit to the Congress a midyear report on such program.

Repeals the provision which prohibits making available for antiterrorism assistance programs equipment and commodities included in the U.S. Munitions List. Repeals the termination date for antiterrorism assistance programs.

Increases the dollar amount of agreements or grants for foreign assistance that can be made without meeting certain requirements.

Authorizes the President to remove a country from the list of communist countries prohibited from receiving U.S. aid if the President reports to the Congress that such action is important to the national interest.

Prohibits obligating any of the funds appropriated under the Arms Export Control Act for any programs not justified, or in excess of the amount justified, to the Congress for obligation for any fiscal year unless specified committees of the Congress are notified 15 days before such obligation. Excludes from such a notification requirement development assistance funds if the obligation will exceed the justified amount by no more than ten percent. Provides that such notification requirement does not apply to the reprogramming of less than $25,000 for use under the international narcotics control program or for use under the international military education and training program for a country for which a program under such program for that fiscal year was justified to the Congress.

Requires the President to notify the Congress, within 30 days of enactment of any law appropriating funds to carry out the Arms Export Control Act, of each country and organization to which the United States intends to provide any portion of such funds.

Deletes the provision which imposes specified reporting requirements on granting military or economic assistance which exceeds by ten percent or more the amount set forth in the President's annual report on allocation of foreign assistance funds.

Amends the Arms Export Control Act to require the President to include all sales (currently cash sales, credits, and guaranty agreements) in the President's annual report to the Congress on military exports.

Amends the Foreign Assistance Act of 1961 to prohibit any Federal law from being construed to prohibit assistance to any country pursuant to the Peace Corps Act, the Mutual Educational and Cultural Exchange Act of 1961, the Export-Import Bank Act of 1945, or for certain training activities funded under the Foreign Assistance Act of 1961.

Authorizes appropriations for FY 1986 for the trade and development program and for the operating expenses of the agency primarily responsible for development assistance.

Authorizes using funds made available under the Foreign Assistance Act of 1961 for programs with Haiti to assist in halting significant illegal emigration from Haiti to the United States.

Amends the Internal Revenue Code to exclude from deduction or withholding requirements scholarships, fellowship grants, or per diem paid by the Federal Government to any nonresident alien who is engaged in any program of training in the United States under the Foreign Assistance Act of 1961.

Authorizes the President to make available funds authorized to be appropriated to carry out development assistance or economic assistance programs for FY 1985 and 1986 for the provision of food, medicine, or other humanitarian assistance to the Afghan people.

Amends the Foreign Assistance Act of 1961 to make certain technical amendments.

Title VI: Food for Peace Program - Amends the Agricultural Trade Development and Assistance Act of 1954 to make famine relief commodities available to carry out programs subject to specified conditions. Authorizes using funds from the food for development program for education in developing countries.

Title VII: Authorization for the Fiscal Year 1987 and Effective Date - Authorizes appropriations for FY 1987 to carry out programs and activities for which appropriations for FY 1986 are authorized by this Act.