REVISED STATE/AID REPORT ON THE MARCH 17, 1989, DISCUSSION DRAFT THAT IS THE "PROPOSED IMPLEMENTATION OF MOST RECOMMENDATIONS OF THE HOUSE FOREIGN AFFAIRS COMMITTEE'S TASK FORCE ON FOREIGN ASSISTANCE."

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92M00732R001000050001-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 39
• Document Creation Date: December 23, 2016
• Document Release Date: April 3, 2014
• Sequence Number: 1
• Publication Date: April 21, 1989
• Content Type: MEMO

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4- ?
STAT
TO:
EXEQUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENI AND BUDGET
YVA31-11NGION, 0.0 20S01
April 21, 1989
P-J
fr-
URGENT
LEGISLATIVE REFERRAL MEMORANDUM
Legislative Liaison Officer -
National Security Council (Hughes X3723)
49
Department of State (Bachrach 647-4463)
25
Department of the Treasury (Carro 566-8523)
28
Department of Commerce (Levitt 377-3151)
04
Federal Emergency Management Agency (Watson 646-4105)
10
Department of the Interior (Hill 343-4547)
16
Department of Transportation (Herlihy 166-4687)
26
United States Trade Representative (Holmer x3150)
23
Department of Labor (Unman 523-8201)
18
Overseas Private Investment Corp. (Hatton 457-7012)
21
Agency for International Development (Lester 647-8371)02
Department of Defense (Brick 697-1305) 06
Department-of Agriculture (Shapiro 382-1516) 01
Department of Justice (Perkins 633-2113) 17
Export-Import Bank (Record 566-8967) 36
Environmental Protection Agency (Schilling 382-5414) 08
Office of Personnel Management (Woodruff 632-5524) 22
Council on Environmental Quality (D. Bear x5754)
FAX No. 395-3928
Central Intelligence Agency 58
Office of National Drug Control Policy (E08 176)
Trade and Development Program (DeSoto 875-4357)
FAX No. 875-4009
SUBJECT: Revised State/AID report on the March 17, 1989,
Discussion Draft that is the "Proposed Implementation of
Most Recommendations of the House Foreign Affairs
Committee's Task Force on Foreign Assistance."
NOTE: With the exception of certain provisions involving
congressional consultation and reporting, this draft
reflects the results of numerous interagency comments on
this legislation. Unless you advise is by NOON, MONDAY,
APRIL 24th of apsoific conc?rns we will ass c_your
hftsrzo further It is
importantthatthisrepobetransmirttted to HFAC by
early Tuesday, April 25, 1989, if tho Administration's
Views are to be considered before the printing of the
CoMmitteese final markup print.
The Office of Management and Budget .requests the views of your
agency on the above subject before advising on its relationship
to the program of the President, in accordance with OMB Circular
A-19.
; linrNC-N/1".
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2
A response to this request for your views is needed no later than
NooAPITAILJAMPLIALAIPA.
Questions should be referred to SUB MAU/ANNETTE ROONEY
(3954-7300), the legislative analyst in this office.
Enclosure
cc: C. B. Gray
S. Rademaker
A. Raul
T. Theile
S. Fartar
E. Rea
RONALD K. PETERSON FOR
Assistant Director for
Legislative Reference
J.
Eisenhour
D.
Fossum
D.
Gessaman
J.
Fish
R.
Silberman
H.
Schreiber
B.
Sasser
J.
Doherty
R.
Bent
D.
Cantu
URG
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ca_Arvia,
) 1)t
A)a.071--
a'd v41,C,A".4
Dear Mr. Chairman:
We appreciate the opportunity to provide Administration
comments concerning the amendments to the foreign Assistance
Act contained in the Committee's March 17 DiSCUssiOn Draft.
ThiS Continues a process of mutual cooperation that has proven
very productive in the context of the Defense Trade and Export
Control Act and the Multilateral Assistance Initiative
legislation for the Philippines. Very shortly we will be
transmitting the Administration's FY 1990 authorization
proposals which I hope will receive your Committee's careful
review. I look forward to continuing this cooperative
relationship with the Committee in the months and years to come.
AS you well realize, the task of making substantial changes
to legislation first enacted in 1961, and amended annually
thereafter, is teeth an enormous undertaking and one that is
long overdue. We appreciate greatly your efforts and those of
other Members and staff to take a fresh look at our foreign
assistance program with an eye to fostering greater cooperation
between the Congress and the Executive Branch and streamlining
the administration of our foreign assistance program.
In that .spirit, we have reviewed the legislation with all
interested departments and agencies and provide the attached
comments as our initial reaction to the provisions in the
Discussion Draft. We view these comments as a starting point
from which a bill can be developed which is mutually acceptable
and which brings a better focus to our foreign assistance
efforts. Over the years, the Foreign Assistance Act has been
amended to the point that t-Inte-t-ete-ms-of the number of
prograM-Trpi-ioritiecontained in the statute and ilere..-akombemAe+
has resulted in a
lessened ability to bring adequate resources to bear on
fundamental economic problems. We view your efforts as
important to reversing the trend toward overwhelming our
foreign assistance program with a myriad of programmatic
requirements.
The attachments that follow contain our initial uiews on
the provisions in the Discussion Draft. Where we have thought
it helpful, we have provided alternative language for your
consideration, Comments previously have been provided on the
military assistance title and therefore that title is not
reviewed in this letter. We hope that the following comments
will foster the dialogue on the foreign assistance legislation
with the en result being a statutory framework within which
our foreign assistance program can bestypopp.e.~4 the national
interests o the United States.
vc??
L. ,t1t1"11-fvj -4)
Sincerely,
Sec State
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TITLE I - Economic Assistance
Section Discussion
1101 -
1103
Prefer alternative language which is shorter, clearer,
and more straightforward, and which focuses on the objectives
of our assistance programs rather than the means to achieve
those objectives. We agree with the four basic objectives
(although we would prefer that "poverty alleviation" be
retitled "human resources development"), but believe that
they should stand alone as they do in the Committee's Task
Force (Hamilton-Gilman) Report recommendations and not be
subordinated to a single "purpose" which appears to be
defined not only by the four objectives but also by
"cross-cutting elements" and the fifteen specific programs in
section1103. We believe further that the specificity of the
cross-cutting elements and fifteen programs runs contrary to
the Hamilton-Gilman Report recommendations calling for
reduction in priority areas. We believe the language lends
itself to further amendments adding to the priority concerns
that A.I,D, Must address. Tab A contains our proposed
alternative language.
Chapter 2 - Development Assistance
1201 Preference would be for language which did not distinguish
between long and short-term development since those terms are
not defined and, in any event, the distinction may be an
artificial one. Tab B contains language which we find
preferable and which incorporates, as well, the authority
contained in section 1205 of the Discussion Draft. In
addition, the provision authorizes the use of Development
funds for A.I.D. operating expenses.
1202 Accept.
1203 Preference is to delete subsection (c) since that subsection
implies that assistance may be provided to one organization
only if assistance is provided to all organizations. We
would prefer, instead, inclusion of current law requirement
that assistance may not be provided to influence the outcome
of any election in any country. During subcommittee markup,
the Yatron subcommittee amended the Discussion Draft to
delete the police training exception (page 30 line 13 to page
31 line 4). We would prefer that this language be reinstated
or, at the least, that it be restored but limited to the
Latin America and Caribbean region, Recommend deletion of
subsection (f). Since the total amount of assistance under
this section is not specified, the limitation contained in
this subsection could drive decisions on the total made
available for the whole program.
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1204 Accept but would insert ", in addition to funds otherwise
available for such purposes," after "President".
1205 As noted in our comments on section 1201, the alternative
language for that section includes the authority for
strengthening U.S. institutions. If that formulation is
accepted then section 1205 can be deleted; otherwise, we can
accept the provision without change.
1206 Propose deleting the second sentence of this section.
Although not mandatory, as written it creates an artificial
standard for host country contributions and seems to
contradict the first sentence which calls for the
contribution of "an appropriate share" of project costs.
1207 Accept.
1208 Accept.
1209 Accept but would recommend certain modifications regarding,
among other things, project size, selection criteria, reserve
requirments, and certain technical changes. Tab C contains
suggested language.
Chapter 2 ? Economic Support Assistance
1301 We would substitute the current language authorizing Economic
Support Fund assistance for the language in section 1301 of
the Discussion Draft. We believe, as noted above, that the
distinction between long and short?term development is too
nebulous and undefined, and will create unnecessary confusion
in trying to determine whether a particular activity should
be funded with Development or Economic Support Funds. We
also do not believe that section 1301 gives adequate
recognition to the U.S. economic, political, and security
objectives that motivate decisions to provide ESF
assistance. The section would judge the performance of an
economic assistance account that is essentially motivated by
U.S. international interests and foreign policy concerns
against criteria more applicable to assistance programs
motivated predominently by development concerns.. Moreover,
the limitation on the modes of providing the assistance would-
greatly reduce flexibility. We believe that current law more
accurately reflects the nature of this assistance program.
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1302 Accept.
1303 We would propose deleting this section. While it creates no
statutory requirment that local currencies be generated from
ESF assistance, it strongly suggests that they should be,
The section then creates an artificial requirement that at
least 50 percent be used for development purposes. Since
local currencies are addressed elsewhere in the bill, we
would propose deleting this section and handle the question
in a single provision.
We would propose reenacting as permanent authority the
current section 533, Emergency Assistance.
Given the increasing number of incidents in which the
Executive branch and the Congress have found it desirable to
provide assistance to the victims of civil strife or to
resistance forces (examples include Afghanistan and the
non-communist Khmer Rouge), .we would propose a general
authority to use ESF, notwithstanding any other provision of
law, for assistance to such groups. Language for your
consideration is attached at Tab D.
1304 Accept.
Chapter 4 - International Organizations
1401 The Administration recommends replacing "promote the four
basic objectives set forth in section 1102" with "further the
purposes of this title". The modification would encompass
the more detailed purposes for assistance elaborated
throughout title I. as well as the generalized objectives
Outlined in section 1102.
1402 Accept.
1403 The Administration's preference is to delete this section.
Disapproval of expenditures by an organization or programs
administered by organizations for specific groups or
countries is more appropriately manifested through reduced
appropriations to the organization or program rather than by
withholding provisions.
1404 Accept,
1405 Subsection (b) should be deleted since the reports are
duplicative of the reports required under subsection (a).
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1406 The Administration proposes the deletion of this section.
Subsection (a) raises a substantial constitutional question
by purporting to require the President to include certain
terms in international agreements. The deletion Of
subsection (b) is proposed because the purpose of this
provision has been .achieved. Each of the organizations
referred to in this subsection has an external group that
examines, reviews, evaluates, and audits its programs and
activities.
1407 Accept.
Chapter 5 - Private Sector Involvement in Development
Subchapter A - OPIC
1501 Accept.
1502 Accept.
1503 We have the following suggested changes:
(1) page 55, line 7, delete "Chairman and vice Chairman" and
insert in lieu thereof "Chair";
(2) page 55, line 10, delete "Vice Chairman" and insert in
lieu thereof "Uice Chair"; -
(3) page 55, lines 13-14, delete "the Deputy" and insert in
lieu thereof "a Deputy" to reflect that there are three uSTR
deputies;
(4) pages 55-57, switch subparagraphs (C) and (E);
(5) page 56, line 15, delete "traveltime" and insert in lieu
thereof "travel time";
(6) page 56, line 21, delete "Six" and insert in lieu thereof
"Four additional", in order to maintain the existing Board
structure of seven public sector board members;
1504 Accept.
1505 Accept.
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1504 Accept, but propose the following modifications: (1) in
subsection (b) insert the following paragraph which it
essentially in the current section 240;
"(3) Allocation of Income.-The Corporation shall
allocate up to 50 percent of its annual net income,
after making suitable provision for transfers and
additions to reserves, to assist and facilitate the
development of projects consistent with the provisions
.of this subsection, Such funds may be expended
notwithstanding the requirements of section 1501(c)(1),
on such terms and conditions as the Corporation may
determine through loans, grants, or other programs
authorized by sections 1504 and 1505,".
(2) in subsection (f) insert the following paragraph:
"(3) Mandatory and xcluivea' s s The
analysis required by this subsection is mandatory and
exclusive with respect to U.S. effects of the
Corporation's programs, including effects on exports and
employment, and shall not be limited or modified by any
Other provision of this Act.".
1507 Accept, but in subsections (a)(2)(C) and (b)(2) we would
propose striking the words "not less than" in both places.
Also in subsection (a)(2)(C) change "1505(b)" to "1504(b)".
1508 Accept,
1509 Accept.
1510 We are proposing the following modifications:
(1) in subsection (c)(8) insert "subject to the authority of
the Attorney General and" before "notwithstanding";
(2) deletion of subsection (d) and inserting in lieu thereof
the language contained in Tab E; and
(3) deletion of subsection (f) and inserting in lieu thereof
the following:
"(f) Corporate Operational Guidelines.-The Corporation
shall establish and publish guidelines for its programs
and operations consistent with the provisions of this
subchapter, which provisions shall be controlling with
respect to the Corporation's programs and operations,
and shall make such guidelines available to applicants
for insurance, reinsurance, guarantees, financing, or
other assistance provided by the Corporation.",
1511 Accept, but suggest technical change to page 96, line 2 by
inserting "the" before "Corporation", and on page 98, lines
18-19 by deleting "this Act".
1512 Accept.
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Subchapter B - Trade and Development Program
1521 We would amend section 152I(c) to allow TDP programs to be
undertaken notwithstanding any other provision of law, rather
than notwithstanding any other provision of this Act.
1522 The Administration currently has subsection (a) under
review. We Would recommend that subsection (b)(2) be amended
to delete "bilateral development" and to insert in lieu
thereof "Trade and Development Program".
1523 Accept.
1524 Accept.
1525 Accept.
We recommend inserting a new provision establishing a
statutory inspector general for TDP. The proposed language
is at Tab E.
Chapter 6 - International Disaster Assistance
1601 Accept.
1602 Accept but would delete reference to the four basic
objective's since these are not applicable to the provision of
disaster assistance.
1603 Accept.
1604 Accept but suggest inserting after "appropriations" on lint,
12 the following: ", notwithstanding that funds are earmarked
by this or any other Act,". This would enable the
Administration to use earmarked funds for disaster purposes,
notwithstanding that they may be earmarked for another
country or purpose.
We would recommend restoration of thy language contained in
current law (FAA section 493) authorizing the President to
designate a Special Coordinator for International Disaster
Assistance,
Chapter 7 ? Other Economic Assistance Programs
1701 Accept.
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1702 We would accept this section but recommend the inclusion of a
new subsection which provides the Export-Import Bank with the
authority to charge fees and premiums in connection with
financing provided under TCIP. Draft language is provided at
Tab F.
1703 In subsections (h), we would delete the increase in the
guarantee ceiling and restore the figure contained in current
law. We would also recommend deleting subsection (1).
1704 This section should be deleted - it is not a functioning
program,
1705 Accept, but should be modified to reflect the deletion of
section 1704. In addition, we would propose deletion of
subsections (f)(1)(A) and (B) which place a $100 million
ceiling on funds which can be borrowed from the Treasury for
the purpose of housing guaranty reserves. since these are
full faith and credit guarantees, placing a dollar ceiling on
borrowing from the Treasury serves no purpose.
1704 We would accept subsections (a) through (f) with a further
limitation in subsection (d) that this authority is available
only for relatively least developed countries and countries
in sub-Saharan Africa. The budget implications of extending
this authority to all developing countries are too
significant, we believe, to warrant expansion or the existing
authority beyond its present scope. We would also propose
including the language contained in section 572 of the FY
1989 foreign assistance appropriations act conditioning
country eligibility for participation in this program on an
IMF structural adjustment facility, enhanced structural
adjustment program, or standby or a World Bank structural
adjustment program being in effect with regard to such
country,
On page 121, lines 5 and 21, reference should be to
subsection (c) vice subsection (b). We would generally
suggest with regard to subsections (a) through (f) that they
might be redrafted in a more simplified form.
We would further recommend striking, on page 124 line 7, "the
objective of resource sustainable development" and
substituting "the objectives of section 1102". We believe
that this authority should be available for all economic
assistance programs and not just those dealing with resource
management.
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?
Chapter 8 - Reimbursable Development Program
1801 Accept.
1802 Accept but suggest the following modifications: (1) in
subsection (a), delete for the purposes for which such
appropriation, account, or fund is authorized to be used" and
insert in lieu thereof "until expended", (2) delete
subsections (b) and (c)._
Chapter 9 - Administration of Economic Assistance Programs
Subchapter A - Operating Expenses
1901 We are recommending that this section be deleted since our
language at Tab 0 includes the authority to use program funds
for A.I.D. operating expenses.
1902 Accept.
1903 'Recommend that the provision be deleted since we believe it
inappropriate that, at the sole discretion of the Inspector
General, the IG can require the transfer of resources from
economic assistance accounts. If an authority is felt
necessary to augment /G appropriations, that authority should
be, we believe, a transfer authority similar to that now
contained in section 109 of the FAA.
Subchapter 8 - Evaluation
1921 We recOmmend deletion of subsection (c)(1) through (3), since
we believe it unnecessary to include in law the
organizational structure and responsibilities of
evaluation unit. We also recommend, on 12.130,- line 1, after
the word "of", that you insert the words "country, regional
and centrally funded"; and on p. 130, line 15, that you
delete the word "policy'.
Subchapter C - Cooperation with Nongovernmental Sector
1941 We recommend deletion of this section and substitution of a
requirement that the President establish three advisory
boards in the following areas: international food and
agriculture, PV0s and cooperatives, and the private sector.
Attached at Tab G is alternative language for your
consideration. We do not feel, in particular, that it is
appropriate for the council or advisory boards to serve in
Fact as both an advisory body to the Executive Branch as well
as to the Congress as implied in subsection (d).
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TITLE III - Terrorism and Narcotics
Chapter 1 International Terrorism
3101 Accept.
3102 Accept.
3103 Accept.
3104 The Administration recommends modification of subsections (c)
and (d) of this section. First, the Administration believes
that subsection (c) should be amended to be hortary by
replacing the word "shall" in line 17 with "should".
Second, the Administration supports the modification of
subsection (d)(1) and (3) to broaden the authorities for
antiterrorism training. The changes to subsection (d)(1) and
(3) are proposed to permit specified training to be conducted
outside the United States and to permit the Bureau of
Diplomatic Security of the Department of State to provide
training in additional subjects to foreign law enforcement
personnel. These changes will result in substantial cost
savings to the antiterrorism programs and increase the
program's effectiveness. Substitute language for subsection
(d)(1) and (3) is attached under Tab H.
3105 Accept.
3106 Accept.
3107 Accept.
3108 The Administration notes that this section is inconsistent in
several respects with a-parallel provision prohibiting
assistance to countries supporting terrorism, i.e., section
4201(8)(3), The Administration recommends the deletion of
section 4201(a)(3).
Chapter 2 - International Narcotics Control
3201 Accept.
3202 The Administration recommends adding to this section the
following two subsections following subsection (c):
"(d) .q9.21:Alnation.-The Secretary of State shall be
responsible for coordinating all assistance provided by the
united States Government to support international efforts to
combat illicit narcotics production or trafficking.". This
directive,
"(e) Rule pf Construction.-Nothing contained in this section
shall be construed to limit or impair the authority or
responsibility of any other federal agency with respect to
law enforcement, domestic security operations, or
intelligence activities as defined in Executive Order 12333.
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Subsection (d) sets forth the coordination responsibility of
the Secretary of State in regard to international narcotics
control assistance and reflects existing law, We believe
that this provision articulates a principle important to the
effective conduct of foreign policy as it relates to
narcotics control and therefore should be retained.
Subsection (e) reflects a provision contained in-Chapter 1 of
Title III, which is equally applicable to this Chapter.
3203 Accept,
3204 The Administration proposes the deletion of this section.
Formula-sharing proposals, such as the 25-percent
contribution requirement of this section, deny the
Administration the flexibility needed in dealing with Third
World governments engaging in bilateral narcotics control
programs.
3205 Accept.
3206 Accept.
3207 Accept.
3208 Accept.
3209 The Administration proposes one change to this subsection
the modification of subsection (b) by replacing the word
"Shall" in line 19 with the word "should".
3210 Accept.
3211 Accept.
321_2 The Administration recommends the deletion of this section
since it raises, at least insofar as it applies to U.S.
citizens, constitutional and Privacy Act issues.
3213 Accept.
3214
To-authorize the presence of U,S. officers or employees at an
arrest by foreign officers, we propose that the last sentence
of subsection (a) be modified to read as follows; "This
paragraph does not prohibit an officer or employee from being
present at the scene of an arrest or otherwise assisting
foreign officers who are effecting an arrest.".
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3215 Three modifications to this section are recommended. First,
the Administration recommends the deletion of subsection
(a)(2)(F). This provision undercuts the principle of open
and candid discussion among Executive Branch agencies which
is critical to the decision-making process.
Second, the Administration believes that determinations
regarding a foreign country's cooperation in narcotics
control and eradication programs should take into account
actions taken by that country in the year under assessment
and actions to be taken during the next fiscal year.
Negotiations with drug producing and transit countries
regarding narcotics control and eradication programs are
based upon this proposition. We therefore propose that
section 3215 be amended to reflect this important principle
(currently contained in section 481(e)(4) or the Foreign
Assistance Act) by adding the following sentence at the end
of subsection ( )(2)(D):
"Such determination shall be based upon (i) measures which
the country is currently taking, and the measures which the
country has planned for the next calendar year, in order to
prevent narcotic and psychotropic drugs and other controlled
substances from being cultivated, produced or processed, -in
whole or in part in such country, from being transported
through such country or from entering the United States
unlawfully, and (ii) the other information provided pursuant
to this subsection,",
Third, the Administration supports (1) the inclusion of
language contained in current law regarding agency
.consultation with the Congress on the INCSR and the annual
certifications, and (2) a clear indication of the
relationship between the international narcotics control
strategy report (INCSR) and the certification process, viz.,
that the certification decisions are based upon the INC513
assessment and upon the recommendations of the Department of
State. Language amending section 3215(a) to implement these
changes is attached under Tab I.
3216 The Administration recommends five changes to this section.
First, the Administration proposes that for purposes of
section 3216, the list of major illicit drug producing or
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major drug-transit countries which are subject to
certification each March 1 be limited to those countries
notified to the Congress at the start of each fiscal year
under section 3217(c) as likely to be determined to be a
major illict drug producing or major drug-transit country.
This modification would in effect seal the list of countries
subject to this section as of October 1. We believe that
this change is important; the restrictions on assistance in
section 3716 would otherwise present a problem with respect
to other countries, where the applicability of the
prohibition on assistance is not foreseeable, since funds for
those countries may have been obligated and expended prior to
March 1.
Second, the Administration proposes the insertion of the word
"essential" in subsection (b)(2)(E) before "precursor
chemicals" to establish more clearly the chemicals
appropriately covered by this provision.
Third, the Administration proposes that, in subsection (d),
"45 calendar days" be substituted for "45 days of continuous
session_ (within the meaning of section 601(b)(1) of the
International Security Assistance and Arms Export Control Act
of 1976)". A waiting period of 45 days of continuous
session; given congressional recess periods, results in a
withholding of assistance for AS much as eight months of the
fiscal year, despite the fact that the country has been fully
cooperating in narcotic control and enforcement efforts,
Finally, the Administration recommends amending section
3216(f)(1) to read as follows:
"(f) Recertification.--
(1) Time of Recertification; Congressional
Action.--Subsection (e) shall apply to a country until the
President makes a certification of the matters described in
subsection (b) with respect to that country, and the Congress
does not enact a joint resolution under subsection (d)
disapproving the determination of the President contained in
that certification.",
This modification would bring into conformity the
congressional review procedures applicable to a
recertification under section (0 and the procedures outlined
in section subsection (d) relating to an original
certification.
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< .
Fourth, the Administration recommends adding to the end of
this section a provision contained in section 4.406 of the
Anti-Drug Abuse Act of 1988 which waived, for certain major
drug-transit countries, the requirement to withhold
assistance pending certification. This waiver, which applies
only if the country was previously designated a major illicit
drug producing country and effectively eliminated its illicit
drug production in the preceding two years, provides an
incentive for for narcotics producing countries to reduce
illicit drug production. Specific language is attached
under Tab 3.
Finally, to avoid potential constitutional problems created
by the current wording of subsection (a)(2), the
Administration proposes that this subsection be changed to a
sense of Congress provision and that language be added
indicating the Secretary of Treasury should act under the
direction of the President.
3217 The Administration would propose a conforming change to this
section -- the deletion of subsection (d) -- if its
recommendation to limit the countries subject to section 3216
to those countries notified at the beginning of the fiscal
year is accepted.
3218 The Administration believes that economic support and
development assistance programs that are linked to narcotics
eradication programs should be exempted from the prohibitions
on assistance contained in chapter 2 of title I. Narcotics
eradication efforts clearly could not be continued if
-supportive assistance activities are halted. Consequently,
we propose that the definition of "United States assistance"
in this section be modified to exclude certain economic
support and development assistance programs. In particular,
we recommend that section 3218(5)(8)(vii) be amended by
inserting or projects that are programmatically linked to
reductions in the cultivation of illicit narcotic crops"
after "producing and transit countries".
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TITLE IV - Special Authorities
Chapter 1 - Special Authorities
4101 Accept.
4102 We prefer that this provision more closely reflect current
law. That is, subsection (a) should be amended by
substituting "important" for "essential" and subsection (b)
should be amended by substituting "vital" for "essential".
This is a critical authority about which there has never been
a suggestiOn of abuse. The requirement for prior
consultation has been always scrupulously complied with and
the views of Members taken into account before any action has
been taken. Raising the standard to "essential" will, at the
least, make it much more difficult to exercise this authority
particularly with regard to economic assistance.
Additionally, we recommend inclusion of the current section
614(c) which was omitted from the Discussion Draft.
4103 This section, which mirrors section 451 of the FAA, provides
that up to $10 million of funds made available in any fiscal
year may be used for emergency purposes. It is an ambiguous
provision, however, and does not contain an overall limit on
the amount that may be furnished during any fiscal year. We
would modify this section to allow the use of up to $50
million during any fiscal year, as follows:
"Sec. 4103. Contingencies Involving Nonmilitary Assistance.
"(a) Notwithstanding any other provision of law, the
President is authorized to use funds made available to carry
out any-provision of this Act (other than chapter 2 of title
I) in order to provide, for any emergency purposes,
assistance authorized by title I, chapter 6 of title II, or
chapter 1 or chapter 2 of title III. in accordance with the
provisions applicable to the furnishing of such assistance,
except that the authority of this subsection may not be used
to authorize the use of more than $50,000,000 during any
fiscal year.".
4104 We would recommend that this provision be modified-to allow
the adoption of other obligations in addition to contracts.
Thus, on page 242, line 24, insert after "contract" the
phrase "or other obligation". At the end of subsection (b)
we would insert after "assistance" the phrase "for the
purpose of making an equitable settlement of termination
claims under extraordinary contractual relief standards".
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4105 Accept.
4106 Accept.
Recommend adding a new provision, patterned after the current
section 663 of the FAA, which would read as follows;
"Sec. 4107. Exchanges of Certain Materials.
"(a) Lxchenee for Raw Materials.?Notwithstanding any
other provision of law, wheneuer the President
determines it is in the United States national interest,
he shall furnish assistance under this Act or shall
furnish defense articles or services under the Defense
Trade and Export Control Act pursuant to an agreement
with the recipient of such assistance, articles, or
services which provides that such recipient may only
obtain such assistance., articles, or services in
exchange for any necessary or strategic raw material
controlled by such recipient. For the purposes of this
section, the term "necessary or strategic raw material" ?
includes petroleum, other fossil fuels, metals,
minerals, or any other natural substance which the
President determines is in short supply in the United
States.
"(b) The President.shall allocate any necessary. or
strategic raw material transferred to the United Slates
under' this section to any appropriate agency of the
united States Government for stockpiling, sale,
transfer, disposal, or any other purpose authorized by
law.
"(c) Funds received from the allocation of
materials -under subsection (b) shall be credited to the
current applicable appropriations, funds, or accounts of
the agency that provided the assistance, articles, or
services under subsection (a) of this section,".
Chapter Z ? Restrictions on Assistance
4201 This is a lengthy and complicated provision in which many
helpful steps have been taken to remove barnacles that have
constrained our flexibility in foreign affairs. We would
further make the following recommendations:
(1) inclusion of the list of communist countries
in current law (section 620(f) of the FAA), clarification in
subsection (d)(3) that removal of a country from the list
means that sanctions contained in the Act and any Act
referencing this section shall not be applied (as in current
FAA section 620(f)(2));
(2) delete subsection (a)(3) since this is
already addressed in section 3108 regarding terrorism;
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(3) in subsection (a)(4)(A)(ii) by deleting
"abrogated" and inserting in lieu thereof "repudiated or
nullified". As on alternative, it would be even more
preferable if the provision re expropriation were drafted in
such a way that the President is to take into account whether
a government has taken such action in determining whether and
how much assistance to provide;
(4) delete subsection (a)(8);
-- -(5) a0end subsection (o)(6) to read as follows: "Any
direct support to any project or activity that is
specifically designed to increase exports of any
agricultural, textile, or apparel commodity from a developing
country, where such exports would be in direct competition
with United States exports and can reasonably be expected to
cause substantial injury to United States exporters of the
same or substantially similar commodity.";
(6) restore the current authority contained in FAA
section 5028 to allow assistance, notwithstanding certain
human rights issues, if the President determines that extra-
ordinary circumstances justify aid;
(7) in subsection (b)(3) delete "be furnished through
non-governmental channels and will" since the exemption for
assistance through NGOs is contained in section 4105 and this
subsection could thus be read as limiting that exemption;
(8) delete subsection (f)(1). It is.our view that the
valuation of a claim by the FCSC, which is under the Justice
Department, is not likely to be received as an impartial ,
valuation. We consider that not only would such a valuation
be rejected, but would be counterproductive to diplomatic
efforts to resolve a dispute between the parties, or
submission of the dispute to arbitration.
4202 Accept.
4203 Accept.
4204 Accept.
4205 Accept.
4206 Accept.
4207 Accept.
4208 Accept.
4209 Accept.
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Chapter 3 - Reports and Notifications
4301 We have several suggestions for modifications to this
provision:
(1) we do not believe that the provision should
be applicable to all of the programs under title I of
the bill. The kinds of information requested are
applicable to Development and ESF assistance but not,
for example, to ASHA or International Organizations
arid Programs assistance. CP requirements for those
specialized programs should be separately described;
(2) we suggest deleting from the presentation
requirements the information contained in paragraphs
(4) through (7). This information might be the
subject of a different report but the data requested
often is not available by early January--the date on
which the CP would have to go to press;
(3) at in the past, we assume we can continue to
work closely with staff in refining what is to be
included in the CP.
4302 5ugge-st that subsection (b) be amended by deleting
"shall" and inserting in lieu thereof "should"; and in
subsections (e)(1) and _(f) by deleting "all". The use
of ."should" sufficiently conveys congressional intent
while avoiding the use of language that may provide a
basis for private litigation. The requirement to
,include all informdtion is a burdensome, if not
impossible, task. Strictly construed it would require
the inclusion of inaccurate and irresponsible
information. The proposed change avoids this result.
4303 ?Accept, but recommend change 60 days to 90 days in
subsection (b)(1). This would enable us not to have
to develop an operating year budget for a short-term
? Continuing Resolution since Congress is most likely to
? enact a year-long appropriations measure no later thdn
the end of December.
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4304 We find the changes to the congressional notification
extremely helpful. We would make just a couple of
recommendations. First, we would prefer if subsection
(a)(2) were deleted since the information is rarely
available alt the time of submission of a
notification. Second, in subsection (b). we would
delete "or use" both places it appears and delete_
paragraph (2). Finally, by listing exceptions to the
notification requirement the section implies that all
other programs are subject to those requirements. Yet
programs like International Narcotics Control and the
Trade and Development Program, both with authority to
operate notwithstanding provisions of law, do not
notify. Similarly, guaranty programs seem to have
been given an exemption. Should the list therefore
also include the Trade Credit Insurance Program and
the Private Sector Guaranty Program? Paragraph (3)
would be deleted since this is no longer an operative
program.
4305 Accept.
43106 Accept but recommend modifications as follows: (1) on
page 270 delete line 21 and all that follows through
"provision," on line 3, page 271 and insert in lieu
thereof "The General Accounting Office or any
committee of the Congress charged with considering
legislation, appropriations, or expenditures under
this Act may make, to the officeof the head of any
agency carrying out provisions under the Act,?, (2) on
page 271, line 8, replace the comma with a period and
? delete the phrase beginning with "unless there has
been" through line 13, and insert in lieu thereof:
"Such request should be complied with within 35 days
? of the date the request is delivered to the head of
the agency.". The formulation of this section in the
Discussion Draft is inconsistent with section 313 of
the budget Accounting Act, 31 U.S.C. 716, the
'statutory provision which governs the availability of
information to the Comptroller General.
4307 Accept but modify the section title to more accurately
reflect the nature of the information to be provided;
"Annual Reports Regarding Recipient Expenditures for
Military Purposes".
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TITLE V - General Provisions
Chapter 1 - Exercise and Coordination of Functions
5101 Accept.
5102 Accept but modify to include the language in section
622(a) of the FAA regarding the powers and functions
of the Secretary of State,
5103 Accept.
5104 Administration currently has this section under review.
5105 Accept,
5106 Administration currently has this section under review.
5107 Accept.
5108 Accept but modify subsection (c) by deleting "Wherever
practicable, especially in" and inserting in lieu
thereof "In" and by deleting "shall" and inserting in
lieu thereof "may".
5109 Accept but substitute the current section 654(a),
modified to reflect the new Defense Trade and Export
Control Act, in lieu of subsection (a) in the
Discussion Draft.
Chapter 2 - Administrative Authorities
5201 Accept but modify subsection (c)(3) to delete "from
which there" and all that follows through "is not
necessary" and insert in lieu thereof "and shall
remain available until expended".
5202 Accept but recommend the following additions and
modifications: (1) amend the first line in subsection
(9) to read "ASSISTANCC AUTHORITIES-In furnishing and
administering assistance under this Act, the
President-", and (2) in subsection (k) to substitute
10 years vice 5 years for commitment authority. The
changes suggested reflect the changed nature of our
assistance program and, with regard to the second of
these changes, the fact that the kinds of projects we
now conduct take place over d longer period of time.
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5203 Accept but modify: (1) in subsection (a)(3) by
inserting after "expenditure of funds" the phrase
"(other than 31 U.S.C. 1341)", (2) in subsection
(b)(1)(E)(ii) by striking out "In the case of" and all
? that follows through the end of that clause (ii) [this
will eliminate an out-of-date price test for
vehicles], (3) in subsection (b)(1)(F) by striking out
the parenthetical limitation on entertainment
expenses, (4) in subtection (b)(1)(J) by striking out
the 10 year limitation on leases, and (5) in
subsection. (c) by inserting a new paragraph (4) which
would read as follows: "(4) by the head of the
administering agency to dispose of such property, and
the proceeds of such disposition are authorized to
remain available until expended for use for the same
or similar purposes,".
5204 Accept.
Chapter 3 - Local Currencies
5301 Accept.
5302-
5303
We would amend the proposed language in the Discussion
Draft to apply accountability to these host-country
owned local currencies while they are being maintained
in the separate account and, subsequent to their
withdrawal from the the account, only to the exent of
the agreed upon uses between A.I.D. and the host
country. The accountability requirement would be the
host country's, not A.1,U.'s., for prugrammatic (as
opposed to administrative) uses. There is concern
that the term "accrue" would include not only those
local currencies which are generated by balance of
payments assistance (to which the present separate
accounting requirement is applicable) but also to host
country contributions pursuant to section 110 of
current law. We would propose limiting the scope of
the separate account requirement to current law.
Finally, we would recommenddeletion of subsection
(b). Draft language for your review is contained at
Tab K.
5304 We would propose that this section be amended to
conform to current law, i.e., that it be limited to
excess foreign currencies and that the use of such
currencies be made subject to appropriations. The
latter objective can be achieved by deleting
subsection (c) from the Discussion Draft.
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5305 Accept with two modifications: (1) in subsection
(c)(1) .by inserting "repayment" vice "accrual", (2) in
subsection (C)(2) by inserting "President" vice
"Secretary of State" in both places.
5306 Accept.
5307 Accept.
5308 Accept.
Chapter 4
Procurement and Disposition
5401 accept but recommend modification to subsection (a)(2)
by deletiOg "on et cost?plus incentive fee contract
basis". Suggest deletion of subsection (c).
5402 Accept with the following modifications: (1) in lieu
of subsection (a)(1) insert- "the need to maximize, to
the extent practicable, the financing of commodities
and services and defense articles and defense services
Of United States origin, and the participation Of
United States suppliers and contractors, particularly
Small and disadvantaged business;" and (2) by
inserting at the end of subsection (a) the following:
"Whenever the administering agency of the United
States Government procures under this Act it will
apply the standards and procedures of the Competition
in Contracting Act of 1984, 41 U.S.C. 253 and 10
U.S.C. 2304, except as provided otherwise under the
authority of 40 U.S.C. 474.".
5403, Recommend that subsection (a) be deleted and that
subsection (b) be amended by deleting "to pay" and
substituting "or otherwise pay". In addition the
reference to the Secretary of Commerce should be
changed to the Secretary of Transportation.
5404 Accept but would recommend that subsection (a) be
modified by deleting "In furnishing" and substituting
"It is the sense of the Congress that, in
furnishihg".
5405 Accept.
5400 Accept but amend to include "chapters 2 and 6" in lieu
of "chapter 0".
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5407 Accept.
5408 Accept.
5409 Accept.
Chapter 5 Personnel
5501 Administration currently has this section under review.
5502 Accept this provision but would modify to insert
language contained in current law (FAA section 625(a))
regarding the authority of any agency carrying out
functions under the Act to employ such personnel as
may be necessary to carry out the Act's provisions and
purposes. Also recommend deleting subsection (e).
5503 Accept but modify by deleting subsection (c) and
substituting in lieu thereof "Contracts or assignments
for such employment may be renewed annually.".
5504 Accept but modify: (1) in subsection (a) by striking
out "or the acceptance of compensation" through tho
end of that subsection, (2) in subsection (c)(1) by
inserting after "Act" the phrase ", or may be detailed
or assigned on a leave without pay status", and (3) in
subsection (c)(2) by deleting "section 5505" and
sUbstitutIng "sections 5106 and 5505".
5505 Accept.
5506 Accept but insert "84" after "83" in subsection (b).
5507 Accept.
5508 Accept.
5509 Accept.
Chapter 5 ? Defintions and Miscellaneous
5601 Remains to be reviewed in detail. However, recommend
that in sObsection (d)(7) replace "major non-NATO
ally" and: its definition with "friendly country" which
we propose to define as "Australia, Egypt, Israel,
Japan, Korea, and any other country so designated by
the President for purposes of this Act and the Defense
Trade and Export Control Act.". (Substitute the term
"friendly country" for "major non-NATO ally" each time
the latter appears in the text.) The term "friendly
country" more accurately describes the current
designation of countries, which includes countries
with whom the United States has no treaty alliance,.
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SO2 Accept.
5603 Accept.
TITLE VI - Technical and Conforming Provisions
601 Accept,
602 Accept.
603 Remains to be reviewed.
604 Accept, but recommend deleting subsection (b).
605 To be added later.
-606 To be reviewed.
23503-April 21, 1989
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Tab A
Sec. . StateMent of Policy,-(a) The Congress finds that
it is in the nationti interest of the United States to support
sustained, broad-ba ed economic growth and economic and
political stability: in the world community, and national
systems that encourOge freedom, democracy, human dignity,
economic opportunity, private property, and free markets and
trade, The Congress further finds that economic growth and
political pluralism are mutually reinforcing means to foster
broad-based and sustained development and, through such
development, to reduce the worst manifestations of pervasive
poverty, The Congress further finds that a strong United
States and world economy, United States economic leadership.
and free trade are vital to economic development, stability.
and peace. The Congress believes that to achieve economic
growth, the United States must encourage and support the people
of other countries in their efforts to build and reinforce the
economic, political, and social institutions that will improve
the quality of their lives, and that this must be achieved
through a coordinated effort in economic cooperation and
assistance, trade, investment, and debt, financial and
commercial policy. The Congress believes that programs
undertaken pursuant to this Act should have the following four
main foreign economic policy objectives-
(1) (rowth.-Encouragement of broad-based economic growth.
(2) EnVironmtn41_111121101111/.-Improved environmental,
natural resource, and agricultural management.
(3) Human resources develolment.- Human resource
development aimed at improving the well-being of the poor and
their capacity to become productive citizens.
(4) Pluralism.-Fromotion of political, social and economic
pluralism.
(b) The Congress recognizes that since the enactment of the
Foreign Assistance Act of 1961, progress has been made in
addressing many of the manifestations of poverty in developing
countries. Such progress can be measured, in part, by reduced
rates of infant mortality, increased availability of family
planning and health services, increased numbers of better
educated citizens, increased availability of food, expanded
participation of women in the development process, greater
awareness of the need to protect the environment, and increased
availability of physical infrastructure. The Congress is
further aware that, while assistance from donors has been
significant in fostering these achievements in developing
countries, such assistance will never be sufficient, in and of
itself, to sustain such progress over the long term.
similarly, while progress in addressing the manifestations of
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poverty is necessary to the development process, it is not
sufficient by itself to sustain that process over the long
term. The Congress believes that development can be sustained
and expanded toall elements of society in developing countries
only as assistance recipients make progress in establishing the
political, economic, and social environment necessary for the
free and open partiCipation of citizens in their country's
development.
? The Congress notes that the establishment of an environment
necessary to provide the opportunity for sustained development
will require difficvlt and far-reaching decisions, unique to
each country, and that such decisions will often be beyond the
resources of the developing country to support. The Congress
further believes that, just as the development needs of-a
country are unique to the circumstances of that country, so
assistance to help address those needs must be tailored to
those circumstances. The Congress believes that, since
economic growth and political pluralism are in the national
interest of the United States, it is equally in our interest to
provide support for those.countries willing to undertake the
lung-term effort to achieve those goals.
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Tab B
Sec. . Authorization.?The President is authorized to
furnish assistance to promote economic. social, and political
development consistent with the objectives contained in section
102 of this Act. Such assistance may include the development
and strengthening of the capabilities of institutions in the
United States and other countries to address the objectives
contained in section 102, Amounts appropriated under this
section may be used, in addition to amounts otherwise available
for such purposes, for the necessary operating expenses of the
Agency.
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Tab C
Propose Modificatl2M1_12A.ESA1911-11P2
1. -Subsection (b)(4). Delete "subsection (e))," and insert in
lieu thereof "subsection (e) and paragraph (2)(E) of subsection
,(h)) and reimbursements for payments made to discharge
liabilities under subsection (h),". The modifications make it
clear that fee income from guarantees and reimbursements for
payments to discharge liabilities under the guaranty program
are included in the Revolving Fund,
2. Subsection (c)(2), Suggest that this subsection be
redrafted as follows:
"(2) Private Sector Actiuities Which Ma Be
Supported,--Assista ce un er this section may be provided only
to support financially viable private sector activities which
are consistent with the basic objectives of United States
economic assistanceset forth in section 1102 and are the types
of activities for Which assistance may be provided under
section 1201, and should emphasize projects that--
"(A) will have a demonstration effect;
"(B) will be innovative;
"(C) will maximize the development impact appropriate
to the holt country; and
"(D) are directed to making available to business
enterprises, such as small businesses and
cooperatives-, necessary support and services which are
not otherwise generally available to them,".
The above language modifies somewhat current law requirements
regarding the eligibility of activities under the Revolving
Fund. While keeping the requirement that activities be
consistent with the basic objectives of the Act, the section
provides that project selection should emphasize the criteria
contained in subparagraphs (A) through (D) rather than making
that criteria mandatory.
3. Subsection (c)(3)(A). Substitute $5,000,000 for $3,000,000
and substitute "loan" for "project" in that subsection. -
4. Subsection (c)(3)(8). Delete "Not" and insert in lieu
thereof "Loans under this section may not provide"; and strike
"may be provided under this section". Insert the "with loans"
after "project assisted". The purpose of these suggestions is
to clarify that the provisions apply to Revolving Fund loans
only. To similar effect is section (h)(2)(C) in the Discussion
Draft.
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5. SUbsection (e). Dulete "The amount" and substitute "Except
as provided in paragraph (2)(E) of subsection (h), the amount".
O. Subsection (f). Insert after "such termination" the phrase
"that is not required for the guarantee reserve established
Pursuant to paragraPh 12)(E) of subsection (h)".
7. Subsection (h)(1). Insert "(c)(2)" in lieu of "(c)".
8. Subsection (h)(2), Delete $3,000,000 and substitute
$5,000,000.
9. Subsection (h)(2)(H). Delete "section" and insert
"subsection",
10. Subsection (h)(4). Delete "losses" and insert "loans"
11. Liubsection (h)(5). Delete the second sentence. We
believe a 25% reserve is excessive and that a reserve equal to
A.I.D.'s expected net liabilities on the loan guarantees
outstanding is suffjcient.
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Tab D
Sec. ? Humanitarian Assistance to the Victims of Civil
Strife.-(a) Notwithstanding any other provision of law, funds
authorized to be appropriated to tarry out this chapter may be
made available for the provision of food, transportation,
medicine, clothing, or other humanitarian assistance to the
victims of civil strife. For purposes of this section, victims
of civil strife may include forces. .
(b) None of the funds made available pursuant to subsection
(a) may be made available for the purpose or with the effect of
promoting, sustaining, or augmenting, directly or indirectly,
the capability of the Khmer Rouge or any of its members to
conduct military or paramilitary operations in Cambodia or
elsewhere in Indochina,
(c) None of the funds made available pursuant to subsection
(a) may be made available for purpose or with the effect of
promoting, ,sustaining, or augmenting, directly or indirectly.
the capability of the noncommunist resistance forces in
Nicaragua.
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Tab E
"(d) Authority Of Inspector General.-(1) The Inspector
General of the administering agency-
"(A) shall have full and independent authority to conduct
audits, investigatiOns, and inspections of all phases of the
COrporation's programs and operations [all phases of the
programs and operations of the Trade and Development Program)
for the purpose of promoting economy, efficiency, and
-effectiveness, and detecting and preventing fraud and abuse; and
"(B) shall conduct all security activities of the
Corporation [Trade and Development Program] relating to
persvnnel and the cOntrol of classified material,
"(2) The Inspector General shall report to and be under the
general supervision of the President of the Corporation
[Director of the Trade and Development Program] with respect to
activities undertaken pursuant to this subsection, provided
that the President of the Corporation [Director of the Trade
and Development Program] shall not prevent or prohibit the
Inspector General from initiating, carrying out or completing
any such activity in accordance with the duties, authorities,
and responsibilities contained in the Inspector General Act of
1978, as amended, and any other applicable laws and
regulations. The Inspector General shall be reimbursed by the
Corporation [Trade and Development Program] for all expenses
incurred by the Inspector General in connection with the
Inspector General's responsibilities under this subsection.
"(1) The Corporation shall continue to be a "Federal
entity" for purposes of the Inspector General Act of 1978, as
amended, and the President of the Corporation shall be the
"head of the federal entity" for purposes of that Act.
"(4) The annual report required under section 8E(h)(2) of
the Inspector General Act of 1976, as amended, shall include
information relating to activities of the Inspector General
undertaken pursudnt to this subsection.".
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Tab F
(j) The Bank is authorized .to charge in connection with
financing approved to support transactions referred to in
Subsection (a) of this section, fees and premiums commensurate,
in the judgement of the Bank, with the Bank's administrative
costs and risks covered by the Agency. Any amounts received by
the sank in excess of the estimated costs incurred by the Bank
in administering such transactions shall be credited to the
reserve fund referred to in subsection (d) of this section,
shall be merged with the funds in such reserve, and shall be
available for the purpose of payments by the Agency to the Bank
for guarantees under subsection (a) of this section.
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Tab G
Sec. . Advispry Boar. In order to assist the President
in the administration of the programs authorized under this
part, the President shall establish the following permanent
advisory boards:
(1) an international food and agricultural development
advisory committee, which shall be the successor to, and
exercise duties and responsibilities similar to, the Board
established pursuant to section 298 of the Foreign Assistance
Act of 1901, as amended, as the President may determine;
(2) an advisory committee for private and voluntary
organizations and cooperatives which, among other things, shall
provide advice concerning the integration of the activities of
United States and indigenous private and voluntary
organizations and cooperatives into the implementation and
planning of activities authorized by this part; and
(3) a private sector advisory committee which, among other
things, shall advise the President regarding the participation
of the United States and indigenous private sectors in
achieving the objectives of this part.
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Tab H
Amend section 3164(d)(1) to read as follows:
"(d)(1) Training services (including short-term refresher
training) provided pursuant to this chapter may be conducted outside
the United States only if-
"(A) Such training involves (1) aviation security
(ii) bomb protection measures; (iii) crisis management; (iv)
document screening techniques; (v) facility security; (vi) maritime
security; (vii) pot-blast investigation and tracing of lethal
instruments; or (viii) VIP protection; or
"(B) the Speaker of the House of Representatives and
the Chairman of the Committee on Foreign Relations of the Senate are
notified, not less than thirty days prior to provision of the
training, of the intent to engage in training outside the united
States.".
Amend section 3104(d)(3) to read as follows:
"(3) Employees of the Department of state shall not engage
in the training of law enforcement personnel or provision of
services under this chapter, except that employees of the Bureau of
Diplomatic Security of the Department of State may provide training
(including short-term refresher training) and services authorized by
this chapter to law enforcement personnel in the following subjects:
(1) bomb protection measures; (ii) crisis management; (iii) facility
security; and (iv) VIP protection,".
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Tab I
Amend section 315(a) by inserting the following:
"(3) as soon as possible after the submission of the report
required under subsection (a)(1)., designated representatives of
the President, including the Assistant Secretary of State for
International Narcotics Matters and appropriate representatives
of such other agencies as may be designated by the President
(which may include the Departments of Justice, Treasury.
Defense, Transportation, and the Agency for International
Development), shall be available to the Committee on Foreign
Affairs of the House of Representatives and the Committee on
Foreign Relations Of the Senate for consultaion and hearings
with respect to the report and certifications made. The
consultatidn shall review, but not be limited to, information
on each major illiCit drug producing and transit country,
in
a deScription of the nature of the illicit drug
production and trafficking situation in each country;
"(0) an analysis of the climatic, geographic,
political, economiC, and social factors that affect illicit
drug production anti trafficking;
"(C) a decription of the methodology employed to
determine the maximum achievable reductions in illict drug
production; and
"(D) an analysis of any additional US. assistance
that would be required to achieve those reductions.".
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Tab
Amend section 3216 by adding the following subsection:
"(9) Waiver.-This section shall not apply with respect to a
major drug-transit country for a given Fiscal year if the
President certifies to the Congress, during that fiscal year
that-
"(1) section____of this Act (relating to money
laundering) does apply to that country;
"(2) the country previously was a major illict drug
producing country but, during each of the preceding two years,
has effectively eliminated illicit drug production; and
t!(3) the country is cooperating fully with the United
States or has taken adequate steps on its own-
1!(A) in satisfying the goals agreed to in an
applicable bilateral narcotics agreement with the United States
as described in subsection (b)(2) or a multilateral agreement
which achieves the objectives of that subsection;
"(B) in preventing narcotic and psychotropic drugs and
other controlled substances transported through such country
from being sold illegally within the jurisdiction of such
country to United States personnel or their dependents or from
being transported, directly or indirectly, into the United
States; and
"(C) in preventing and punishing bribery and other
forms of public corruption which facilitate the production,
processing, or shipment of narcotic and psychotropic drugs and
other controlled substances, or which discourage the
investigation and prosectuion of such acts,".
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? '''
Sec.
Currency.
(a) Spec la Acc unt.--In cases where non-project assistance
is furnished to a foreign country under title I under
arrangements which thay result in the generation of local
currencies of that country, the President shall-
(1) require that such local currencies be
deposited in a fpecial account established by the
government of the foreign country;
(2) enter into an agreement with the government
of such country which sets forth the amount of the local
currencies to be deposited and the terms and conditions
under which such currencies may be utilized; and
(3) establish by agreement with such government the
responsibilitieS of the administering agency and the
government to monitor and account for deposits into and
disbursements from such special account,
(b) Uses of Local Currencies,-As may be agreed upon with
the government, loca currencies deposited in a special account
pursuant to subsection (a) shall be used only to carry out the
purposes of title I or for the administrative requirements of
the United States GOvernment.
(c) Programming Accountability.-The administering agency
shall take all apprOpriate steps to ensure that the equivalent
of the local currencies disbursed from the special account are
used for the agreed upon purposes pursuant to subsection (a).
(d) Definitions,-(1) For purposes of this section the term
"non-project assistance" means any assistance provided for
balance-of-payments or budget support purposes and includes
commodity import program assistance and assistance in which the
disbursement mechanism to the foreign country is in the form of
a dollar disbursement of funds.
(2) ror purposes of this section the term "generation"
shall not be deemed;to include the cost sharing contributions
made by a foreign cOuntry pursuant to section 1206 of this Act.
(e) Report.-Not later than 6 months from the date of
enactment of this Act, the President shall transmit to the
Congress a report which describes the extent to which foreign
owned local Currencies are used for program and administrative
purposes in each country for which they are available, and
provides an assessment of the programmatic value of
requirements to use such currencies for economic and
administrative purposes.
Tab K
. leecialAccounts for Host-Country Owned Local
2362,1-April 21. 1989
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