STATE'S PROPOSED DRAFT BILL "THE INTERNATIONAL SECURITY AND DEVELOPMENT COOPERATION ACT OF 1989," TOGETHER WITH A SECTION-BY-SECTION ANALYSIS AND DRAFT TRANSMITTAL LETTER TO CONGRESS.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92M00732R001000040055-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 79
• Document Creation Date: December 23, 2016
• Document Release Date: April 15, 2014
• Sequence Number: 55
• Publication Date: March 13, 1989
• Content Type: MEMO

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OFFICE OF CONGRESSIONAL AFFAIRS
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STAT
TO:
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
March 13, 1989
A ? ?
OCA 0834-89
LEGISLATIVE REFERRAL MEMORANDUM
Legislative Liaison Officer-
Agency for International Development (Lester
647-8404)
Department of Commerce (Levitt 377-3151)
Department of the Treasury (Carro 566-8523)
Department of Defense (Brick 697-1305)
Department of Agriculture (Stangeland 447-7095)
Department of Justice (Perkins 633-2141)
National Security Council (Stevens 456-2224)
GF/WW (0E0B - Room #381)
Export-Import Bank (Record 566-8967)
Central Intelligence Agency (Halgerson
United States Trade Representative (Holmer X3150)
#245-5417
Department of Health and Human Services (White
245-7760)
Office of National Drug Control Policy
Office of Personnel Management (Woodruff
632-5524)
02
04
28
06
30
17
49
36
23
14
22
SUBJECT: State's proposed draft bill "The International Security
and Development Cooperation Act of 1989," together with
a Section-by-Section analysis and draft transmittal
letter to Congress.
NOTE: The enclosures include a March 10, 1988 letter
from HFAC Chairman Fascell to Secretary Baker which
advises that the Subcommittee on Arms Control,
International Security and Science will markup military
assistance legislation on Wednesday, March 22, 1989.
Moreover, Chairman Fascell provided Secretary Baker
copies of the draft to be used as the basis for the
subcommittee's markup with a request that, prior to the
markup, the Department of State provide Chairman
Fascell's subcommittee with (1) "formal and coordinated
executive comments" on the subcommittee proposal and
(2) the Administration's draft foreign assistance bill.
In this regard, this office will be circulating on
Tuesday (3/14/89) a draft State report on the
subcommittee's military assistance proposal for your
review. On Thursday, March 16, 1989, this office will
convene an interagency meeting at 2:00 p.m. in Room
10103 of the New Executive Office Building to receive
comments and seek a consensus position on (1) State's
proposed draft bill "The International Security and
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Development Cooperation Act of 1989," and (2) State's
proposed report on the Fascell subcommittee military
assistance proposal.
Please call Marie Collins on 395-7300 with a list of
your agency's attendees, including date-of-birth and
social security numbers for each attendee -- we need
this information no later than 2:00 p.m., Wednesday,
March 15, 1989. If your agency has no comment on the
subject material you may advise us by telephone.
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.
Questions should be referred to ANNETTE ROONEY/SUE THAU
(395-7300), the legislative analyst in this office or to John
Eisenhour (395-3920).
RONALD K. PETERSON FOR
Assistant Director for
Legislative Reference
Enclosures
cc: A. Raul
R. Bent
R. Silberman
B. Sasser
D. Gessaman
E. Rea
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The Honorable Jamas A.11aker III
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Dear mr. Secretary:
Pursuant to our initial and productive breakfast meeting and
hearing of February 21, 1989, in which we discussed the parameters
of the President's fiscal year 1990 budget requests for foreign
affairs authorizations and the findings and recommendations of the
Hamilton-Oilman Task Force on Foreign Assistance, I am writing to
advise you of actions that have been initiated by my subcommittee
on Arms Control, International Security and Science with respect
to the military assistance aspects of legislation governing the
Conduct of our country's foreign policy.
In this regard, the subcommittee Staff has prepared draft
legislation which would serve to implement eeveral of the
recommendations contained in the Task Force Report. This draft
will serve as the basis for the subcommittee's formal markup of
military assistance legislation which is scheduled for Wednesday,
March 22, 1989.
Your stated willingness to build upon a spirit of bipartisan
cooperation between Congress and the executive branch is both
appreciated and relevant to the subcommittee's anticipated 'Lotion.
It is for this reason that I have instructed my staff to make
copies of this draft legislation available to you and your offices
for formal and coordinated executive comment.
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Mon. James A. Baker XII
Page Two
While I readily comprehend the demands of your schedule, the
subcommittee must also moat the demands of the Congressional
schedule with respeot to the adoption of legislation authorising
foreign assistance. It is for this reason that 7 am requesting
your coordinated comments on the draft to be made available to the
subcommittee by no later than next Friday. In addition, I would
also appreciate the expeditious transmittal of an administration-
draft authorisation bill no later than that date to enable the
subcommittee to consider those initiatives.
In closing, I would say that I believe we are off to an
excellent start in seeking reform of our nation's foreign
assistance legis1ation, and that yoUr,000peration in this matter
is deeply appreciated.
With best wishes, I am
Wirimpj
Since sly,
a e B. ascell
airman
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United States Department of State
Dear Mr. Darman:
Washington, D.C. 20520
MAR 1 0 1989
In accordance with established procedure, we herewith
transmit a draft bill, The International Security and Development
Cooperation Act of 1989, together with a Section-by-Section
analysis and draft transmittal letter to the Congress. This bill
authorizes appropriations for foreign assistance for the fiscal
year 1990 and proposes substantive modifications to the
authorities governing these programs.
The Department and A.I.D. request expedited clearance of the
bill so that it can be considered by the House Foreign Affairs
Committee, which has requested its early transmittal. This
Committee currently plans to mark up a bill, based on the
Administration's draft and its own "Hamilton/Gilman" report, by
mid-April.
Please inform the Department and A.I.D. whether there is any
objection to transmission of this legislation to the Congress as
part of the legislative program of the President.
With best wishes,
Sincerely,
Jan G. M lins
Ass]. ant Secretary
Leg]. lative Affairs
Kelly C. Kammerer
Director
Office of Legislative Affairs
Agency for International Development
Enclosure
The Honorable
Richard G. Darman, Director,
Office of Management and Budget.
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{DRAFT}
Dear Mr. President:
I herewith transmit, on behalf of the President, a bill to
amend the Foreign Assistance Act of 1961, the Arms Export
Control Act, and related statutory provisions, to authorize
security and development assistance programs for the fiscal
years 1990 and 1991. The bill also makes several amendments to
the substantive authorities governing international development
and security assistance, and related programs.
This bill authorizes S billion in appropriations
world-wide for international security and development
assistance programs. These programs are essential elements of
the foreign and national security policies of the United States.
Title I of the bill consists of authorization for military
sales and related programs. Amendments to the Arms Export
Control Act and the Foreign Assistance Act are being proposed
in order to assist in the more effective implementation of U.S.
security assistance.
With respect to the authorizations requested in this bill
for security assistance programs for Greece and Turkey, I
hereby certify, in accordance with section 620C(d) of the
Foreign Assistance Act, that the furnishing of such assistance
to Greece and Turkey will be consistent with the principles set
forth in section 620C(b) of that Act. The explanation of the
resons for this certification in each case is contained in the
congressional presentation materials for the fiscal year 1990
security assistance programs.
Title II provides authorization for the Economic Support
Fund. The Administration is requesting an authorization of
$ for this program for FY 1990.
Title III authorizes appropriations of S for FY
1990 for Development Assistance programs. This title also
amends the Foreign Assistance Act to establish a Development
Fund for Africa and establishes a new account for International
AIDS Prevention and Control.
Title IV authorizes appropriations for other assistance
programs, including voluntary contributions to international
The Honorable
James Danforth Quayle
President of the Senate.
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organizations and programs; international narcotics matters;
international disaster assistance; and the trade and
development program. This title also authorizes appropriations
for the operating expenses of the Agency for International
Development (A.I.D.) and authorizes separate appropriations for
the A.I.D. Office of Inspector General.
Title V contains miscellaneous provisions. It addition, it
amends certain substantive authorities and provisions governing
several of the programs authorized in the Foreign Assistance
Act and the Arms Export Control Act.
Title VI contains technical amendments to the Foreign
Assistance and Arms Export Control Acts. Title VII authorizes
programs for fiscal year 1991, in accordance with the
provisions of the Budget Act of 1974, and establishes the
effective date for the various provisions of this bill.
The foreign assistance programs authorized by this bill
have been carefully designed to meet the vital national
interest of the United States with the reduced resources
available in a time of necessary budget constraints. The
proposed authorizations are the minimum necessary to promote
and maintain U.S. interests in key regions of the world by
helping our allies and friends to develop economically, to
establish and maintain intenal stability, and to deter and
defend against regional external threats. These programs are
an efficient and cost-effective means to promote U.S.
objectives and to complement a U.S. global defense posture
intended to help preserve peace and stability. I urge prompt
enactment of this bill.
The Office of Management and Budget advises that enactment
of this legislation would be in accord with the proaram of the
President.
Sincerely yours,
James A. Baker, III
Enclosures:
1: FY 1990 Foreign Assistance Authorization Bill
2: Section-by-Section Analysis of the Bill
{Same letter to Speaker of the House}
Drafted:State:L/PM:DDKennedy:647-7838
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.11
A BILL
To amend the Foreign Assistance Act of 1961 and the Arms Export
Control Act, and related statutory provisions, to
authorize additional development and security assistance
programs for fiscal year 1990, and for other purposes.
Be it enacted by the Senate and House of
Representatives of the United States of America in Congress
assembled,
SHORT TITLE
SECTION 1. This Act may be cited as the "International
Security and Development Cooperation Act of 1989".
TITLE I - MILITARY ASSISTANCE AND SALES
AND RELATED PROGRAMS
FOREIGN MILITARY SALES FINANCING AUTHORIZATION
SEC. 101. (a) the first sentence of section 31(a) of the
ire
Arms Export Control Act is amended to read as follows: "There
are authorized to be appropriated to the President to carry out
this Act 5 for fiscal year 1990".
(b) Section 31(b)(1) of the Arms Export Control Act is
amended to read as follows:
"(b)(1) The total amount of financing extended under
section 23 of this Act shall not exceed 5 for
fiscal year 1990.".
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TERMS OF FOREIGN MILITARY SALES FINANCING
SEC. 102. Financing authorized by this Act to be extended
under section 23 of the Arms Export Control Act shall be
provided without any requirement of repayment of principal or
interest.
REPORTS REGARDING SALES PROGRAM
SEC. 103. Sections 25(a)(4), 25(a)(9) and 25(a)(10) of the
Arms Export Control Act are repealed.
QUARTERLY REPOTS
SEC. 104. Section 36(a) of the Arms Export Control Act is
amended by striking out the parenthetical clause in the text
preceding paragraph (1) and inserting in lieu thereof "(except
that the material transmitted pursuant to paragraphs (1) and
(2) of this subsection may be contained in a classified
addendum to such report)".
PROJECTIONS OF ARMS SALES
SEC. 105. Sections 36(a)(5) and 36(a)(6) of the Arms Export
Control Act are repealed.
POLICY OBJECTIVES AND RESTRAINTS
SEC. 106. Section 1 of the Arms Export Control Act is
amended by striking out all that follows the fourth paragraph.
MILITARY ASSISTANCE
SEC. 107. Section 504(a)(1) of the Foreign Assistance Act
of 1961 is amended to read as follows:
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"(a)(1) There are authorized to be appropriated to the
President to carry out the purposes of this chapter
for the fiscal year 1990.".
WAIVER OF NET PROCEEDS OF SALE
SEC. 108. The second sentence of section 505(f) of the
Foreign Assistance Act of 1961 is amended by striking out
"1975" and inserting "1985" in lieu thereof.
FAIR PRICING
SEC. 109. (a) Section 515(d) of the Foreign Assistance Act
of 1961 is amended by striking out "October 11 1982" and
inserting in lieu thereof "October 1 1989" and by striking out
"including" and inserting in lieu thereof "excluding".
(b) Section 632(d) of the Foreign Assistance Act of 1961 is
amended by adding at the end of the second sentence thereof
"(other than salaries of the Armed Forces of the United States
and unfunded estimated ,costs of civilian retirement and other
benefits)".
(c) Section 21(e) of the Arms Export Control Act is amended--
(1) by inserting immediately before the semicolon at
the end of paragraph (1)(A) "as specified in section 43(h) and
section 43(c) of this Act";
(2) by inserting immediately before the semicolon at
the end of paragraph (1)(C) "(except for equipment wholly paid
for either from funds tranferred under section 503(a)(3) of the
Foreign Assistance Act of 1961 or from funds made available on
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a nonrepayable basis under section 503(a)(3) of the
Assistance Act of 1961 or from funds made available
nonrepayable basis under
section 23 of this Act)"
Foreign
on a
(3) by repealing paragraph (1)(B) and relettering paragraphs
(1)(C) and (1)(D) as paragraphs (1)(B) and (1)(C),
respectively; and
(4) by striking out "paragraphs (1)(B) and (1)(C)" in
subsection (e)(2) and
(B)".
(d) Section 43(h)
by striking out "and"
out the period at the
and" in lieu thereof,
inserting in lieu thereof "paragraph (1)
of the
at the
end of
Arms Export Control Act is amended
end of paragraph (1), by striking
paragraph (2) and inserting ";
and (3) by adding the following paragraph
at the ind of the subsection:
"(3) such expenses are neither salaries of the Armed Forces
0.1 tile United States nor represent unfunded estimated costs of
civilian retirement and other benefits."
EXCESS DEFENSE ARTICLES FOR NATO'S SOUTHERN FLANK
SEC. 110. Section 516 of the Foreign Assistance Act of 1961
is amended to read as follows:
"SEC. 516. Modernization of Defense Capabilities of
Countries of NATO's Southern Flank.-(a) Authority to Transfer
Excess Defense Articles or Defense Articles Programmed to be
Excess.-- Notwithstanding and other prhvision of law and
subject to subsection (b), the President may transfer to those
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member countries of the North Atlantic Treaty Organization
(NATO) on the southern flank of NATO which are eligible for
United States security assistance and which are integrated into
NATO's military structure such defense articles as the
President determines necessary to help modernize the defense
capabalities of such countries. Such articles may be
transferred without cost to the recipient countries.
"(b) Limitations on Transfers.-The President may transfer
defense articles under this section only if --
(1) the equipment is drawn from existing stocks of the
Department of Defense;
"(2) the equipment is excess or programmed to be excess;
"(3) no funds available to the Department of Defense for
the procurement of defense equipment are expended in connection
with the transfer; and
"(4) The President determines, that the transfer of the
excess defense articles or defense articles programmed to be
excess will not have an adverse impact on the military
readiness of the United States.
"(c) Notification to Committees of Conqress.-The President
may not transfer defense articles under this section until 30
days after he has notified the Committees on Armed Services,
Foreign Relations, and Appropriations of the Senate and the
Committees on Armed Services, Foreign Affairs, and
Appropriations of the House of Representatives of the proposed
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transfer. This notification shall include a certification of
the need for the transfer and an assessment of the impact of
the transfer on the military readiness of the United States.
"(d) Waiver of Requirement for Reimbursement of DOD
Expenses.-Section 632(d) of this Act shall not apply with
respect to transfers of defense articles under this section.
"(e) Definition.-As used in subsection (a), the term "member
countries of the North Atlantic Treaty Organization (NATO) on
the southern flank of NATO" means Greece, Italy, Portugal,
Spain, and Turkey.
INTERNATIONAL MILITARY EDUCATION AND TRAINING
SEC. 111. Section 542 of the Foreign Assistance Act of 1961
is amended to read as follows:
"Sec. 542. Authorizations of Appropriations.-There are
authorized to be appropriated to the President to carry out the
psyrposes of this,chapter I for the fiscal year 1990.'1.
PEACEKEEPING OPERATIONS
SEC. 112. Section 552(a) of the Foreign Assistance Act of
1961 is amended to read as follows:
"(a) There are authorized to be appropriated to the
President to carry out the purposes of this chapter, in
addition to amounts otherwise available for such purposes,
for fiscal year 1990.'1.
ANTITERRORISM ASSISTANCE
SEC. 113. (a) Section 575(a) of the Foreign Assistance Act of
1961 is amended to read as follows:
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"Sec. 575. Authorization of Appropriations.-(a) There
are authorized to be appropriated to the President to carry out
the purposes of this chapter 2 for the fiscal year
1990.".
(b) Section 573(d)(1) of the Foreign Assistance Act of 1961
is amended 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 (i) aviation
security; (ii) bomb protection measures; (iii) crisis
management; (iv) document screening techniques; (v) facility
security; (vi) maritime security; (vii) post-blast
investigation and tracing of lethal instruments; or (viii) VIP
protection; or
"(8) 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.".
(c) Section 573(d)(3) of the Foreign Assistance Act of 1961
is amended 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
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of the 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: (i) bomb protection
measures; (ii) crisis management; (iii) facility security; and
(iv) VIP protection.".
UNCOMMITTED FMS CREDITS FOR THE PHILIPPINES
SEC. 114. Funds, not to exceed S29,400,000, previously
obligated for the Philippines under the heading "Foreign
Military Credit Sales", but uncommitted on the date of
enactment of this Act may be disbursed without requirement of
repayment of principal or interest.
TITLE II - ECONOMIC SUPPORT FUND
AUTHORIZATION OF APPROPRIATIONS
SEC. 201. Section 532(a) of the Foreign Assistance Act of
1961 is amended to read as follows:
"(a) There are authorized to be appropriated to the
President to carry out the purposes of this chapter
for the fiscal year 1990.".
EMERGENCY ASSISTANCE
SEC. 202. Section 533(a) of the Foreign Assistance Act of
1961 is amended-
(1) by striking out "the fiscal year 1986 and up to
S75,000,000 for the fiscal year 1987" and inserting in lieu
thereof "any fiscal year"; and
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(2) by inserting "during such fiscal year" after "emergency
us e" ?
DEMOCRATIC INSTITUTIONS
SEC. 203. Section 534 of the Foreign Assistance Act of 1961
is amended to read as follows:
"Sec. 534. Democratic Institutions.-(a) The President
may furnish assistance under this chapter to countries and
organizations, whether national or regional, public or private,
seeking to improve the performance of institutions of
democratic governance in Latin America and the Caribbean.
Principal areas of assistance include the administration of
justice and support for electoral and legislative processes.
All such assistance shall be of a nonpartisan nature.
"(b) Assistance under this section may only include:
"(1) support for specialized training and exchanges
for public officials and individuals involved in the
administration of justice or electoral or legislative processes;
"(2) programs to enhance the performance of
institutions contained in paragraph (1);
"(3) notwithstanding section 660 of this Act-
"(A) programs to enhance professional
capabilities to carry out investigative and forensic functions
conducted under judical or prosecutorial control;
"(6) programs to assist in the development of academic
instruction and curricula for training law enforcement
personnel;
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"(C) programs to improve the administrative and
management capabilities of law enforcement agencies, especially
their capabilities relating to career development, personnel
evaluation, and internal discipline procedures;
judicial
as a
"(D) programs to
cases;
"(E) programs to strengthen civil-military relations
necessary underpinning of democracy and to improve
enhance protection of participants
in
knowledge among both military and law enforcement officers of
international standards for protection of civil and political
rights;
"(4) strengthening professional, civic and community
organizations, and enhancing the organizational and leadership
skills of their members, in order to increase citizen
participation in local and national democratic decision making
firocesses;,
"(5) increasing the availability of legal materials and
information concerning the civil and political rights of the
citizenry, as well as strengthening objective reporting of
issues affecting the exercise of those rights;
"(6) revision and modernization of legal codes and
procedures, including such support as legislators may require
to accomplish those ends; and
"(7) seminars, conferences, and training and educational
programs to improve the effective exercise of internationally
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recognized civil and political rights throughout the
hemishphere and to strengthen respect for the rule of law as a
fundamental requirement of government.
"(c) Not more than S30,000,000 of the funds made available
to carry out this chapter for any fiscal year shall be
available to carry out this section, in addition to amounts
otherwise available for such purposes.
"(d) Personnel of the Department of Defense and members of
the United States Armed Forces may not participate in the
provision of training under this section. Of the funds made
available to carry out this section, not more than 27,000,000
may be made available in any fiscal year to carry out
provisions of subsection (b)(3) of this section.".
TITLE III - DEVELOPMENT ASSISTANCE
AGRICULTURE, RURAL DEVELOPMENT, AND NUTRITION
SEC. 301. The first sentence of sectton 103(a)(2) of the
Foreign Assistance Act of 1961 is amended to read as follows:
"There are authorized to be appropriated to the President
for purposes of this section, in addition to funds otherwise
available for such purposes, S for fiscal year
1990.".
the
CHILD SURVIVAL FUND
SEC. 302. (a) Section 104(c)(2)(8) of the Foreign
Assistance Act of 1961 is amended to read as follows:
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"(8) In addition to funds otherwise available for
such purposes, there are authorized to be appropriated to the
President S for fiscal year 1990 for use in carrying
out this paragraph. Amounts appropriated under this
subparagraph are authorized to remain available until
expended.".
(b) Section 104(c)(2) of such Act is amended by adding at
the end thereof the following:
"(D) Except as provided in this section, assistance
provided under this paragraph may be made available
notwithstanding any other provision of this Act (other than
subsections (a), (f), and (t) of section 620 and section 620A)
or any other Act.".
POPULATION AND HEALTH
SEC. 303.. Section 104(g)(1) of the Foreign Assistance Act
of 1961 is amended to read as follows:
"(1) There are authorized to be appropriated to the
President, in addition to funds otherwise available for such
purposes-
"(A) S for fiscal year 1990 to carry
out subsection (b) of this section; and
? "(B) for fiscal year 1990 to carry
out subsection (c) of this section.".
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INTERNATIONAL AIDS PREVENTION
AND CONTROL
SEC. 304. (a) Section 104 of the Foreign Assistance Act of
1961 is amended by inserting the following new subsection:
n(d) International AIDS Prevention and Control. (1) In
order to address the international health threat posed by the
Acquired Immune Deficiency Syndrome, the President is
authorized to furnish assistance, on such terms and conditions
as he may determine, for assistance to prevent and control this
disease, including .the collection and dissemination of
information on the spread of the disease and its economic and
developmental effects. In carrying out the purposes of this
subsection, the agency primarily responsible for administering
this part shall seek to ensure adequate coordination with other
Federal agencies, international organizations, and private and
voluntary organizations. Assistance activities pursuant to
this paragraph should include support for appropriate
activities which are carried out by international organizations
(including such organizations receiving funds under chapter 3
of this part) and by private and voluntary organizations.
"(2) In addition to funds otherwise available for such
purposes, there are authorized to be appropriated to the
President S
for fiscal year 1990 for use in carrying
out this subsection. Amounts appropriated under this paragraph
are authorized to remain available until expended, and may be
made available notwithstanding any other provision of law.".
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(b) Subsections "(d)", "(e)", "(f)", and "(g)" of section
104 of the Foreign Assistance Act of 1961 are redesignated
"(e)", "(f)", "(g)", and "(h)", respectively.
EDUCATION AND HUMAN RESOURCES DEVELOPMENT
SEC. 305. The second sentence of section 105(a) of the
Foreign Assistance Act of 1961 is amended to read as follows:
"There are authorized to be appropriated to the President
for the purposes of this section, in addition to funds
otherwise available for such purposes, 5 for fiscal
year 1990, which are authorized to remain available until
expended.".
PRIVATE SECTOR, ENERGY, AND PRIVATE AND
VOLUNTARY ORGANIZATIONS
SEC. 306. Section 106(e)(1) of the Foreign Assistance Act
of 1961 is amended to read as follows:
"(1) There are authorized to be appropriated to the
President for purposes of this section, in addition to fonds
otherwise available for such purposes, S for the
fiscal year 1990.".
PRIVATE SECTOR REVOLVING FUND AND GUARANTY AUTHORITY
SEC. 307. The first sentence of section 108(b) of the
Foreign Assistance Act of 1961 is amended to read as follows:
"Of the funds made available under this chapter in fiscal
year 1990, up to 5 may be deposited in this account.".
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SUB-SAHARAN AFRICA
SEC. 308. (a) Development Fund for Africa. Section 120 of
the Foreign Assistance Act of 1961 is amended to read as
follows:
"Sec. 120. Development Fund for Africa.-(a) In recognition
of the unique economic crisis confronting the nations of
sub-Saharan Africa, the President is authorized to provide
project and program assistance, on such terms and conditions as
he may determine in accordance with the policies contained in
section 102 of this Act, for economic development activities in
sub-Saharan Africa-
"(1) to help the poor majority in sub-Saharan Africa
through a process of long-term development and economic growth
that is equitable, participatory, environmentally sustainable
and self-reliant, achievable, in part, through (A) the
integration of women in the development process, (B)
appropriate consultation with private and voluntary
organizations and African and other organizations with a local
perspective on the development process and, (C) inclusion of
the perspectives and participation of those affected by the
provision of assistance;
"(2) to promote reform of sectoral economic policies
to support the critical sector priorities of agricultural
production and natural resources, health, voluntary family
planning, education, and expansion of income generating
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opportunities, taking into account the need to protect
vulnerable groups;
"(3) to support reform in public administration and
finances and to establish a favorable environment for
individual enterprise and self-sustaining development;
"(4) to increase agricultural production, especially
food production, and maintain and restore the natural resource
base, in ways that are mutually supportive and reinforcing;
"(5) to maintain and improve basic transportation and
communications networks;
"(6) to improve health conditions with special
emphasis on meeting the needs of mothers and children,
including the establishment of self-sustaining primary
care systems that give priority to preventive care;
"(7) to provide increased access to voluntary
0.anning services;
"(8) to improve
basic literacy and
health
family
mathematics,
including the skills of those outside the formal educational
system, and to improve primary education;
"(9) to develop income-generating opportunities for
the unemployed and underemployed in urban and rural areas; and
"(10) to assist sector projects supported by the
Southern Africa Development Coordination Conference to enhance
the economic development of the nine member states forming that
regional institution.
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"(b) Assistance shall be provided under this section, when
consistent with the objectives of such assistance, through
African, United States and other private and voluntary
organizations which have demonstrated effectiveness in the
promotion of local grassroots activities on behalf of long-term
development in sub-Saharan Africa.
"(c) The Administrator of the agency primarily responsible
for administering this part shall target the equivalent of ten
percent of the amount authorized to be appropriated under this
section for each of the following:
"(1) maintaining and restoring the renewable natural
resource base in ways which increase agricultural production,
including components of agricultural activities that are
consistent with this objective;
"(2) health activities; and
"(3) voluntary family planning-
,'
"(d)(1) Local currencies generated by the sale of imports
or foreign exchange by the government of a country in
sub-Saharan Africa from assistance provided under this section
shall be deposited in a special account by that government.
"(2) Such local currencies are to be available only
for use, in accordance with an agreement with the United
States, for development activities which are consistent with
the policy directions of section 102 of this Act and for
necessary administrative requirements of the United States
Government.
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"(e) Section 604(a) of this Act, and similar provisions of
law relating to the procurement of goods and services, shall
not apply with respect to the implementation of assistance
activities consistent with the purposes of this section. The
exemption provided by this subsection shall not be construed to
apply to the Comprehensive Anti-Apartheid Act of 1986.
"(f) There are authorized to be appropriated to the
President for purposes of this section, in addition to funds
otherwise available for such purposes, S for the
fiscal year 1990, which are authorized to remain available
until expended.
"(g) The authority of this section to provide assistance
for long-term development in sub-Saharan Africa is not intended
to preclude the use of other authorities contained in this Act
for that purpose.".
(b) Conforming and Other Amendments. (1) The....Foreign
Assistance Act of 1961 is amended-
(A) in section 105-
(i) by striking out "(b)(1)" and inserting in lieu
thereof "(b)"; and
(ii) by striking out subsection (b)(2);
(8) in section 116(e)(1), by adding at the end thereof
"Funds authorized to be appropriated to carry out section 120
of this Act may only be used under this subsection with respect
to countries in sub-Saharan Africa.";
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(C) by repealing section 121; and
(D) in section 123(f) and (g), by striking out "121"
in each subsection and inserting in lieu thereof "120".
(2) The Agricultural Trade Development and Assistance Act
of 1954 is amended-
(A) in section 106(b)(2), by inserting "(or, in the
case of sub-Saharan Africa, programs directed at comparable
objectives contained in section 120)" after "104";
(B) in paragraph (3)(A) of section 206, by inserting
"(or, in the case of sub-Saharan Africa, comparable objectives
contained in section 120 of that Act)" after "section 103 of
the Foreign Assistance Act of 1961";
(C) in section 301(b)1 by inserting "(or, in the case
of sub-Saharan Africa, programs directed at comparable
objectives contained in section 120)" after "104"; and
(D) in section 303(b), by inserting "(or, in the case
of sub-Saharan Africa, programs directed at comparable
objectives contained in section 120)" after "section 103 of the
Foreign Assistance Act of 1961".
ASSISTANCE FOR DISADVANTAGED SOUTH AFRICANS
SEC. 309. (a) Section 117 of the Foreign Assistance Act of
1961 (relating to Assistance for Disadvantaged South Africans)
is amended to read as follows:
"Sec. 117. Economic Support for Disadvantaged South
Africans.-Funds authorized to be appropriated to carry out this
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chapter and chapter 4 of part II may be used for assistance for
disadvantaged South Africans. Assistance provided under the
authority of this section shall be used for activities that are
consistent with the objective of a majority of South Africans
for an end to the apartheid system and the establishment of a
society based on non-racial principles. Such activities may
include (1) education, training, and scholarships for the
victims of apartheid, including teachers and other educational
professionals who are attending universities and colleges in
South Africa, (2) scholarships for students pursuing secondary
school education in South Africa, and (3) in-service teacher
training programs in South Africa. In providing assistance
under this section priority shall be given to working with and
through South African nongovernmental organizations which have
the support of the disadvantaged communities being served, and
shall not be used to provide support to government_pr
government-controlled institutions that do not embody the
objectives to actively seek the end of apartheid and the
establishment of a non-racial democracy.".
(b) Section 116 of the Foreign Assistance Act of 1961 is
amended-
(1) in subsection (e)-
(A) by amending the last sentence of subparagraph (B)
to read: "Grants may not be made under this paragraph to
governmental or government-controlled institutions that do not
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embody the objectives to actively seek the end of apartheid and
the establishment of a non-racial democracy.";
(8) by amending subparagraph (C) to read as follows:
"(C) The average of all grants under this paragraph shall
not exceed S25,000."; and
(C) by striking out subparagraph (D);
(2) in subsection (f)-
(A) by striking out "(1)" and all that precedes
subparagraph (A), and inserting in lieu thereof: "Funds made
available to carry out subsection (e)(2)(A) for each fiscal
year may be used for legal and other assistance to political
detainees and prisoners and their families, including the
investigation of the killing of protestors and prisoners, for
support of legal challenges to apartheid laws and practices,
and for support for actions of organizations, especially
black-led community organizations, to resist through nonviolent
means the enforcement of apartheid policies such as-"; and
(B) by striking out paragraph (2); and
(3) by striking out subsection (n).
ENDOWMENTS
SEC. 310. Section 122 of the Foreign Assistance Act of 1961
is amended by inserting at the end thereof the following new
subsection:
"(f) Assistance provided under this chapter and chapter 4
of Part II of this Act may be furnished on a grant basis to any
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nonprofit nongovernmental agency or organization for the
purpose of establishing an endowment which has as its principal
purpose the advancement of one or more of the objectives of
this chapter. Such assistance may be furnished as principal
for such endowment, and income earned in any form (such as
interest) on such principal may be retained by the grantee for
the endowment without deposit in the United States Treasury and
without further appropriation by the Congress and shall be used
for the purposes for which the grant was made.".
FUND RAISING ACTIVITIES OF NON-PROFIT GRANTEES
SEC. 311. Section 123 of the Foreign Assistance Act of 1961
is amended by adding at the end thereof the following new
subsection:
"(i) Funds authorized to be appropriated under this chapter
and chapter 4 of part II of this Act may be used to support,
notwithstanding any other provision of law, the fund raising
activities overseas of private voluntary and other non-profit
grantees, provided that no such funds may be used for
entertainment or representational expenses.".
NARCOTICS AWARENESS ACTIVITIES
SEC. 312. Section 126(b)(2) of the Foreign Assistance Act
of 1961 is amended by inserting at the end thereof: "Assistance
provided under this paragraph may be made available
notwithstanding any other provision of law.".
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TITLE IV - OTHER ASSISTANCE PROGRAMS AND AUTHORIZATIONS
AMERICAN SCHOOLS AND HOSPITALS ABROAD
SEC. 401. Section 214(c)(1) of the Foreign Assistance Act
of 1961 is amended to read as follows:
"(1) To carry out the purposes of this section, there
are authorized to be appropriated to the President S
for fiscal year 1990.".
HOUSING AND OTHER CREDIT GUARANTY PROGRAMS
SEC. 402. (a) The second sentence of section 222(a) of the
Foreign Assistance Act of 1961 is amended by striking out
"52,158,000,000" and inserting in lieu thereof "S
(b) Section 222(a) of such Act is further amended by
striking out "1990" in the third sentence and inserting in lieu
thereof "1991".
(c) Section 223(b) of such Act is amended by inserting
after "administrative and operating expenses of carrying out
the provisions of section 222" in the first sentence:
"(including urban programs under such section)".
(d) Section 223(e)(2)(A) of such Act is amended by striking
out "except that" and all that follows through the end of
subparagaph (A) and inserting in lieu thereof "except that the
Administrator may exercise the authority to borrow under this
paragraph only to such extent or in such amounts as are
provided in advance in apppropriation Acts.".
(e) Section 223(f) of such Act is amended by striking out
in the first sentence ", which maximum rate" and all that
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follows through the end of that sentence and inserting in lieu
thereof a period.
(f) Section 223(j) of such Act is amended by striking out
in the third sentence "S25,000,000" and inserting in lieu
thereof "S50,000,000" and by striking out ", and the average
face value" and all that follows through the end of that
sentence and inserting in lieu thereof a period.
AGRICULTURAL AND PRODUCTIVE CREDIT AND
SELF-HELP COMMUNITY DEVELOPMENT PROGRAMS
SEC. 403. Section 222A(h) of the Foreign Assistance Act of
1961 is amended by striking out "1988" and inserting in lieu
thereof "1991".
TRADE CREDIT INSURANCE PROGRAM
SEC. 404. (a) Section 224(c) of the Foreign Assistance Act
of 1961 is amended by striking out "1989" and inserting in lieu
thereof "1992".
(b) Section 224(e) of such Act is amended by adding at the
end thereof the following new sentence: "To the extent and in
the amounts provided in appropriations Acts, during fiscal year
1990, commitments entered into to guaranty or insure loans
under subsection (a) shall not exceed S200,000,000 of
contingent liability for loan principal.".
(c) Section 224(h) is amended by adding at the end thereof
the following: "The Bank is authorized to charge in connection
with financing approved to support transactions referred to in
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subsection (a) of this section, fees and premiums commensurate,
in the judgement of the Bank, with risks covered by the
Agency. Any amounts received by the Bank 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 (b) 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.".
VOLUNTARY CONTRIBUTIONS TO
INTERNATIONAL ORGANIZATIONS AND PROGRAMS
SEC. 405. Section 302(a)(1) of the Foreign Assistance Act
of 1961 is amended to read as follows:
"(1) There are authorized to be appropriated to the
President 6 for fiscal year 1990 for grants to carry
out the purposes of this chapter, in addition to funds
available under other Acts for such purposes.".
INTERNATIONAL DISASTER ASSISTANCE
SEC. 406. The first sentence of section 492(a) of the
Foreign Assistance Act of 1961 is amended to read as follows:
"There are authorized to be appropriated to the President to
carry out section 491, 625,000,000 for fiscal year 1990.'1.
INTERNATIONAL NARCOTICS MATTERS
SEC. 407. Section 482 (a) (1) is amended to read as
follows:
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"(1) To carry out the purposes of section 481, there
are authorized to be appropriated tot the President 3
for the fiscal year 1990.".
TRADE AND DEVELOPMENT PROGRAM
SEC. 408. Section 661(b) of the Foreign Assistance Act of
1961 is amended to read as follows:
"(b) There are authorized to be appropriated to the
President for purposes of this section, in addition to funds
otherwise available for such purposes, S for fiscal
year 1990. Amounts appropriated under this subsection are
authorized to remain available until expended.".
OPERATING EXPENSES
SEC. 409. Section 667(a)(1) of the Foreign Assistance Act
of 1961 is amended to read as follows:
"(1) S for fiscal year 1990 for necessary
operating expenses of the agency primarily, responsible for
administering part I of this Act; and".
OPERATING EXPENSES, OFFICE OF THE
INSPECTOR GENERAL
SEC. 410. Section 668 of the Foreign Assistance Act of 1961
is amended to read as follows:
"Sec. 668. Operating Expenses, Office of the Inspector
General.-(a) There are authorized to be appropriated to the
President, in addition to funds otherwise available for such
purposes-
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"(1) for the fiscal year 1990 for
necessary operating expenses of the Office of the Inspector
General of the Agency for International Development; and
"(2) such amounts as may be necessary for increases in
salary, pay, retirement, and other employee benefits authorized
by law, and for other nondiscretionary costs of such office.
n(b) Amounts appropriated under this section are authorized
to remain available until expended.".
TITLE V - MISCELLANEOUS PROVISIONS
CONTINGENCIES
SEC. 501. Section 451(a)(1) of the Foreign Assistance Act
of 1961 is amended to read as follows:
"Sec. 451. Contingencies. --(a)(1) 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 the provisions of chapter 1 of this part) in order
to provide, for any emergency purposes, assistance authorized
by this part 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 550,000,000 during any fiscal year.".
WAR RESERVE STOCKPILES
SEC. 502. Section 514 of the Foreign Assistance Act of
1961 is amended --
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(1) in subsection (b)(1), by striking out the words greater
than" and inserting in lieu thereof the word "that", and
(2) in subsection (b)(2), by striking out "77,000,000 for
fiscal year 1989" and inserting in lieu thereof "65,000,000 for
fiscal year 1990 and S78,000,000 for fiscal year 1991.
RESTRICTIONS ON INTERNATIONAL MILITARY EDUCATION
AND TRAINING ASSISTANCE
SEC. 503. (a) Exemption From Certain Prohibitions.-Section
620(0 of the Foreign Assistance Act of 1961 is amended to read
as follows:
"(d)(1) Subject to paragraph (2), no assistance shall be
furnished under this Act to any country which is in default,
during a period in excess of six calendar months, in payment to
the United States of principal or interest on any loan made to
such country under this Act, unless such country meets its
obligations under the loan or unless the President determines
that assistance to such country is in the national interest and
notifies the Speaker of the House of Representatives and the
Committee on Foreign Relations of the Senate of such
determination.
"(2) Assistance for international military education and
training programs may be provided without regard to paragraph
(1) or any other provision of law that restricts or prohibits
the furnishing of assistance to a country that is in default in
payment to the United States of principal or interest on a loan
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made to that country, as long as the recipient country has an
elected government seeking to strengthen democratic
institutions and the assistance is otherwise consistent with
sections 502B, 620(f)1 620A, and 660 of this Act.".
(b) Effective Date. -- The amendment made by subsection (a)
of this section shall not apply with respect to funds
appropriated prior to the date of enactment of this Act.
ASSISTANCE TO PAKISTAN
SEC. 504. Section 620E(d) of the Foreign Assistance Act of
1961 is amended by striking out the date "April 1, 1990" and
inserting in lieu thereof the date "September 30, 1994".
SALE OF LOAN ASSETS
SEC. 505. Section 635(g)(3) of the Foreign Assistance Act
of 1961 is amended by inserting after "such instrument" the
following: ", provided further that the President may sell any
instrument evidencing indebtedness, to any party who is not the
obligor under such instrument, notwithstanding the provisions
of section 620(r) of this Act, and that section 620(r) of this
Act shall not apply to any subsequent transactions involving
such instrument (including the resale of such instrument,
either to another obligee or to the obligor, at a price lower
than the instrument's face value)".
EXCESS DEFENSE ARTICLES
SEC. 506. Chapter 2 of part II of the Foreign Assistance
Act of 1961 is amended by adding the following section at the
end thereof:
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"SEC. 517. Participation of Foreign Military Forces in
National Anti-Narcotics Programs.-- (a) Purpose of
Assistance.--Military assistance furnished under this section
shall be structured to encourage the regular military forces of
the countries in Latin America and the Caribbean to participate
in a comprehensive national anti-narcotics program conceived
and developed by their respective central governments, for
conducting activities within their territories and on the high
seas to prevent the production, processing, trafficking,
transportation, and consumption of illicit narcotics in the
Americas.
"(b) Authority to Transfer Excess Defense Articles.-- In
addition to such other military assistance as may be furnished
within the availability of funds under this chapter, the
President is authorized to grant to eligible foreign countries
excess defense articles (as defined in section 644(g) of this
Act) of any agency of the United States Government (and to
authorize transportation on a space available basis for such
articles) for the purposes of this section without charge to
funds available for military assistance, notwithstanding
section 632(d) of this Act.
"(c) Countries Eligible for Assistance.-- (1) Military
assistance may be furnished under this section only to
countries in Latin America and the Caribbean--
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(i) that are developing comprehensive national
programs for the purposes envisaged by subsection (a) of this
section which include an appropriate active role for their
regular military forces
(ii) that provide assurances that such assistance
shall be used primarily to enhance military and paramilitary
capabilities to support and conduct anti-narcotics programs.
(2) The role of military forces in programs described in
paragraph I may be in support of national police forces having
responsibility for narcotics control, but should not
significantly detract from the capability of such forces to
perform their primary missions of legitimate self-defense and
internal security.
(d) Role of the Secretary of State. Subject to the
conditions of subsection (c), the Secretary of State shall
determine the eligibility of countries for military assistance
under this section. The Secretary of State, in pursuit of the
coordination functions assigned to that office by section 4601
of Public Law 100-690, shall also ensure that programs
supported by assistance authorized by this section are
coordinated with other anti-narcotics enforcement programs
assisted by the United States Government.
II(
) Ceiling Limitation.--Not more than 535,000,000 of
excess defense articles within the ceiling authorization set
forth in section 31(d) of the Arms Export Control Act may be
granted under this section during any fiscal year.".
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STINGERS IN THE PERSIAN GULF
SEC. 507. (a) Section 566 of the Foreign Operations, Export
Financing, and Related Programs Appropriations Act, 1989 is
repealed.
(b) Chapter 1 of part III of the Foreign Assistance
Act of 1961 is amended by addng at the end thereof the
following new section:
"Sec. 620F. Stingers in Persian Gulf Region. --(a)
Notwithstanding any other provision of law, Stinger
antiaircraft missiles may be provided, directly or indirectly
by sale, lease, grant or otherwise, to any country in the
Persian Gulf region if the President certifies to Congress
that --
"(1) such missiles are need by the recipient country
to counter an immediate air threat and/or to contribute to the
protection of United_ States personnel, facilities or operations;
"(2) no other appropriate system is available from the
United States; and
"(3) the recipient agrees to safeguards as required in
the letter of offer and acceptance by the United States
Government to protect against diversion.
"(b) Before issuing any letter of offer to sell or provide
Stinger missiles (without regard to the amount of the sale or
transfer), the President shall notify the Speaker of the House
of Representatives and the Majority Leader of the Senate. Any
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such notification shall contain the information required in a
certification under section 36(b) of the Arms Export Control
Act.
"(c) Before issuing any, letter of offer to sell any defense
article or defense service to Qatar, Qatar shall have returned
to the United States or a recipient designated by the United
States all Stinger antiaircraft missiles acquired or purchased
by it without U.S. consent. The President shall notify the
Committees on Foreign Affairs of the House of Representatives
and the Committee on Foreign Relations of the Senate when all
such missiles have been returned.}".
SAFETY OF FLIGHT ITEMS FOR CHILE
SEC. 508. Section 726(c) of the International Security and
Development Cooperation Act of 1981 is amended by striking out
"and technical manuals for aircraft of the F-E/F or A/T-37 type
which were sold to the Chilean Air Force by-?t4e United States
before January 1, 1976" and inserting in lieu thereof
"components, parts, tools, technical manuals, technical changes
to technical orders (TCT0s), or TCTO retrofits for aircraft of
the F-5E/F, A/T-37, or C-130E/H type owned by the Chilean Air
Force".
ASSISTANCE FOR AFGHANISTAN
SEC. 509. Section 904 of the International Security and
Development Cooperation Act of 1985 is amended to read as
follows: "The President may make available funds authorized to
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be appropriated to carry out chapter 1 of part I and chapter 4
of part II of the Foreign Assistance Act of 1961 for the
provision of food, medicine, or other humanitarian assistance
to the Afghan people, notwithstanding any other provision of
law.".
ASSISTANCE FOR THE CAMBODIAN PEOPLE
SEC. 510. Section 905 of the International Security and
Development Cooperation Act of 1985 is amended to read as
follows: "The President may make available to the noncommunist
resistance forces in Cambodia funds authorized to be
appropriated to carry out chapter 2 (relating to grant military
assistance) or chapter 4 (relating to the economic support
fund) of part II of the Foreign Assistance Act of 1961,
notwithstanding any other provision of law.".
EXCLUSION FROM GROSS INCOME OF PAYMENTS
TO PARTICIPANT TRAINEES
SEC. 511. Subsection (b) of section 872 of the Internal
Revenue Code of 1986 (relating to exclusions from gross income
of nonresident alien individuals) is amended by adding at the
end thereof the following new paragraph:
"(7)PAYMENTS FOR TRAINING--An amount received by a
nonresident alien individual who is temporarily present in the
United States as a nonimmigrant under subparagraph (F), (J), or
(M) of Section 101(a)(15) of the Immigration and Nationality
Act, which amount is provided for training of the individual in
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the United States in programs financed under the Foreign
Assistance Act of 1961, as amended, including the value of
contributed services and accommodations and any amount received
to cover expenses for travel, research, clerical help or
equipment or any other expenses that are incident to such
training.
PAY AND ALLOWANCES FOR INSPECTOR GENERAL INVESTIGATORS
SEC. 512. (a) Section 806 of the Foreign Service Act of
1980 is amended-
(1) by inserting "(1)" after "(a)"; and
(2) by adding the following new paragraph:
"(2) Notwithstanding the percentage limitation contained in
paragraph (1) of this subsection, (A) a foreign service
criminal investigator/inspector of the Office of Inspector
General, Agency for International Development, appointed to a
law enforcement position as defined in 5 U.S.C. 8331(20) prior
to January 1, 1984, shall have the option to have his annuity
computed pursuant to paragraph (1) of this subsection or in an
amount equal to (i) 2-1/2 percent of his average pay, as
defined in 5 U.S.C. 8331(4), multiplied by so much of his total
service as does not exceed 20 years plus (ii) 2 percent of his
average pay, as defined in 5 U.S.C. 8331(4), multiplied by so
much of his total service as exceeds 20 years, such service
credit being obtained in accordance with sections 816 and 817;
and (B) the annuity of a foreign service criminal
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investigator/inspector of such office, appointed to a law
enforcement position as defined in 5 U.S.C. 8331(20) after
January 1, 1984, shall be computed in the same manner as that
of a law enforcement officer pursuant to 5 U.S.C. 8415. For
purposes of this paragraph average pay shall include premium
pay and special differentials provided in accordance with
section 412 of this Act or 5 U.S.C. 5545.".
(b) Section 812 of the Foreign Service Act of 1980 is
amended-
(1) by inserting "(1)" after "(a)"; and
(2) by adding the following new paragraph:
"(2) Notwithstanding paragraph (1) of this subsection, a
foreign service criminal investigator/inspector of the Office
of the Inspector General, Agency for International Development,
not receiving the annuity provided in Section 806 (a)(1) of
this Act, shall be separated from the service on the last day
of the month in which he becomes 55 years of age.".
PAYMENTS FOR ANNUAL LEAVE
SEC. 513. Section 5551(a) of Title 5 of the United States
Code is amended by inserting after "vacation leave" in the
second sentence ni except that a post differential, if
applicable, shall not be calculated into the lump-sum payment
that an employee separating overseas is entitled to receive".
RECIPROCAL TREATMENT FOR FOREIGN MILITARY PERSONNEL
SEC. 514. Chapter 13 of Title 22 is amended as follows:
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(a) by adding the following paragraph after subsection (c)
of section 701:
"(d) service personnel" means (i) personnel belonging
to the land, sea, air or other uniformed services, (ii)
civilians employed by a Ministry of Defense, or its equivalent,
of a foreign government, accompanying persons described in
subparagraph (i), and (iii) spouses or children of either of
the above, or other immediate family members who are legally or
financially dependent on persons described in subparagraphs (i)
or (ii).";
(b) by redesignating section 706 as section 707, and by
inserting ", or that such designation is necessary in order to
secure legal protection for personnel of the United States
Department of Defense abroad" after the phrase "maintenance of
discipline"; and
(c) by inserting after 705 the following new section:
"Sec. 706. The President may, pursuant to agreement
with the state concerned, confer rights upon any foreign state
designated under Section 707 equivalent to the rights granted
by that state to the United States."
REPORTING REQUIREMENTS
SEC. 515. (a) Chapter 7 of part II of the Foreign
Assistance Act of 1961 is repealed.
(b) Section 620(s) of the Foreign Assistance Act of 1961 is
amended by-
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(1) striking out "(1)"; and
(2) striking out paragraph (2).
(c) Section 620(u) of the Foreign Assistance Act of 1961 is
repealed.
(d) Section 620(x) of the Foreign Assistance Act of 1961
is repealed.
(e) Section 2 of Public Law 94-104 is repealed.
(f) Section 1205 of the International Security and
Development Cooperation Act of 1985 is repealed.
(g) Section 5 of the Anglo-Irish Agreement Support Act of
1986 is amended by striking out subsection (c).
TITLE VI - TECHNICAL AMENDMENTS
TECHNICAL AMENDMENTS
SEC. 601. (a) Section 3(a) of the Arms Export Control Act
and section 505(e) of the Foreign Assistance Act of 1961 are
amended by striking out "significant defense articles" and
inserting in lieu thereof "significant military equipment".
(b) Section 36(d) of the Arms Export Control Act is amended
by striking out "combat" and inserting in lieu thereof
"military".
(c) Section 25(d) of the Arms Export Control Act as added
by section 112(b) of the International Security and Development
Cooperation Act of 1985 shall be redesignated as subsection (e)
of section 25 and shall be amended by striking the semicolon at
the end thereof and inserting a period in lieu thereof.
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(d) Section 25(a)(5)(13) of the Arms Export Control Act
shall be amended by striking out "(d)" and inserting in lieu
thereof "(e)".
TITLE VII - AUTHORIZATIONS FOR FISCAL YEAR 1991
AND EFFECTIVE DATE
AUTHORIZATIONS FOR FISCAL YEAR 1991
SEC. 701. There are authorized to be appropriated for the
fiscal year 1991 such sums as may be necessary to carry out
programs and activities for which appropriations for the fiscal
year 1990 are authorized by this Act.
EFFECTIVE DATE
SEC. 702. This Act shall take effect on October 1, 1989.
Wang #2221G
re
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SECTION-BY-SECTION ANALYSIS
OF THE PROPOSED
INTERNATIONAL SECURITY AND DEVELOPMENT
COOPERATION ACT OF 1989
I. INTRODUCTION
The proposed International Security and Development
Cooperation Act of 1989 (the "Bill") amends the Foreign
Assistance Act of 1961 ("FAA") and the Arms Export Control Act
("AECA"), and related statutory provisions, in order to
authorize appropriations to carry out international security
and development assistance programs for fiscal year 1990 and to
make certain changes in the substantive authorities governing
those programs. The Bill also contains authorizations for
fiscal year 1991 in accordance with the requirements of the
Congressional Budget Act of 1974.
The Bill is composed of seven titles. Title I consists of
authorizations for military sales and related programs and
amendments to the authorities relating to those programs.
Title II authorizes appropriations for the Economic Support
Fund (ESF) program and amends two of the authorities for use of
funds under that program. Title III authorizes appropriations
for Development Assistance (DA) programs, amends the
authorities for certain DA programs, and authorizes two
completely new DA programs -- International AIDS Prevention and
Control and the Development Fund for Africa (DFA).
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Title IV authorizes appropriations for other related
assistance programs, such as American Schools and Hospitals
Abroad, Voluntary Contributions to International Organizations
and Programs, International Narcotics Matters, International
Disaster Assistance, and the Trade and Development Program.
That title also authorizes appropriations for the operating
expenses of the Agency for International Development (A.I.D.)
and authorizes separate appropriations for the Office of
Inspector General.
Title V contains miscellaneous provisions. These include
authorizations for the sale of loan assets held by the U.S.
Government and for assistance for Afghanistan and for the
Cambodian people; and amendments to the Internal Revenue Code
and the Foreign Service Act to address certain tax and
personnel payment concerns arising in connection with foreign
assistance programs. The title also includes amendments to
certain substantive authorities in the Foreign Assistance Act
and the Arms Export Control Act.
Title VI contains technical amendments to the Foreign
Assistance Act and the Arms Export Control Act . Title VII
provides for authorizations for fiscal year 1991 in accordance
with the requirements of the Congressional Budget Act of 1974
and for the effective date for the various provisions of the
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II. PROVISIONS OF THE BILL
SECTION 1. SHORT TITLE
This section provides that the Bill nay be cited as the
"International Security and Development CDoperation Act of
1989".
TITLE I- MILITARY ASSISTANCE AND SALES AND RELATED PROGRAMS
SECTION 101. FOREIGN MILITARY SALES FINANCING AUTHORIZATION
? This section amends section 31(a) of the AE7A to authorize
in appropriations for fiscal year 1990 to carry
out the Foreign Military Sales (FMS) direct credit program.
Section 31(b)(1) of the AECA is amended to establi.h the limit
of 6 for fiscal year 1990 as the aggre:ate amount
of FMS credit which may be extended under section 23 of the
AECA.
SECTION. 102. TERMS OF FOREIGN MILITARY SALES FINANCINC
This section minimizes the additional debt burden of
recipients of FMS loans and responds to the current globa.! debt
crisis by authorizing the provision of FMS financing to
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countries without requirement that the principal or interest be
repaid.
SECTION 103. REPORTS REGARDING SALES PROGRAM
This section amends section 25(a) of the AECA by striking
the requirement for annual reports concgrning (1) the
international volume of arms traffic to and from nations
purchasing arms from the United States and estimates of arms
traffic from all major arms suppliers to major recipient
countries; (2) Korean progress in modernizing its armed forces,
the role of the United States in mutual security efforts in
Korea, and the military balance between the two Koreas; and (3)
the amount and nature of Soviet military assistance to Cuba and
the capabilities of the Cuban armed forces. The report on
international arms traffic tends to be infrequently utilized
and contains information which is covered in a report currently
ublished annually by the Congressional Research Service. The
latter two reporting provisions stem from particular
circumstances and concerns which no longer require annual
foreign assistance reports.
SECTION 104. QUARTERLY REPORTS
Section 36(a) of the AECA requires the President to submit
to the Congress quarterly information relating to letters of
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offer to sell major defense equipment for 31 million or more.
This section amends section 36(a) to permit information
contained in these reports to be transmitted in classified form
to protect the legitimate security interests of the purchasers.
SECTION 105. PROJECTIONS OF ARMS SALES
This section amends section 36 of the AECA by striking the
requirement that quarterly reports to Congress on foreign
military sales include projections (by country and
international organization) of sales from DOD stocks and
procurement sales expected to be made in the next quarter, and
sales expected during the remainder of the fiscal year. This
information is replicated in the annual Javits Report, which
projects sales eligible for approval for the entire year, and
is updated by sales notifications and consultations on sales
that arise subsequent to the Report.
a.'
SECTION 106. POLICY OBJECTIVES AND RESTRAINTS
This section repeals those paragraphs of section 1 of the
AECA (the policy section) that call on the President to adhere
to a policy of restraint in arms sales and undertake efforts
unilaterally and multilaterally to reduce arms transfers.
These paragraphs were enacted in the mid-1970's when there was
congressional concern about the rapid dollar volume growth in
U.S. arms sales, particularly to Iran and Saudi Arabia. In
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recent years U.S. arms sales have declined dramatically. In
these circumstances, the policy language proposed for repeal
has little relevance and casts a pall over legitimate defense
trade.
SECTION 107. MILITARY ASSISTANCE
This section amends section 504(a)(1) of the FAA to
authorize 5 in appropriations for fiscal year 1990
to carry out the military assistance program.
SECTION 108. WAIVER OF NET PROCEEDS OF SALE
This section amends section 505(f) of the FAA to extend the
authority of the President to waive the requirement that
proceeds from the sale of Military Assistance Program (MAP)
items be returned to the United States. Currently, the waiver
authority applies only to items delivered prior to 1975. By
extending the authority to MAP items delivered subsequent to
.4.
1975 but prior to 1985, this section would relieve the host
country and Security Assistance Office (SAO) personnel from the
responsiblity for annual accounting of old, obsolete, and in
many cases, non-functional equipment items. Since the value of
such second-hand items is generally negligible, this initiative
will have no budgetary impact for either the Security
Assistance program or the Department of Defense.
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SECTION 109. FAIR PRICING
This section would amend section 515(d) and 632(d) of the
FAA and sections 21(e) and 43(h) of the AECA to eliminate
charges to FMS customers for fixed and sunk costs incurred by
DOD. Under this provision, FMS purchasers would reimburse DOD
only for costs resulting from FMS and not for costs that DOD
would incur regardless of the sale. Specifically, the
provision would (1) waive non-recurring research, development,
and production charges for sales paid for with MAP and military
grant financing; (2) eliminate the asset use charge for all
sales; (3) no longer require security assistance to reimburse
the military departments for military salaries associated with
program administration; and (4) no longer require security
assistance to reimburse the Treasury for unfunded civilian
retirement costs. These charges would increase the FMS buying
power of MAP and FMS credit grant recipients during a time of
budget limitations. It would also ensure the continued
solvency of the FMS administrative fund.
SECTION 110. EXCESS DEFENSE ARTICLES FOR NATO'S SOUTHERN FLANK
This section amends section 516 of the FAA (1) to make
permanent the authority provided by that section; (2) to
broaden the category of transferrable articles to include
excess defense articles and articles programmed to be excess;
and (3) to limit application of the section to NATO members on
the southern flank of NATO.
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SECTION 111. INTERNATIONAL MILITARY EDUCATION AND TRAINING
This section amends section 542 of the FAA to authorize
appropriations for fiscal year 1990 for the
International Military Education and Training (IMET) program.
SECTION 112. PEACEKEEPING OPERATIONS
This section amends section 552(a) of the FAA to authorize
in appropriations for fiscal year 1990 to carry out
peacekeeping operations and other programs. These programs
include the United States budgetary contribution to the
Multinational Force and Observers (MFO) for the Sinai.
SECTION 113. ANTITERRORISM ASSISTANCE
Subsection (a) of this section amends section 575(a) of the
FAA to authorize S in appropriations for fiscal year
1990 to carry out the antiterrorism assistance program.
Subsections (b) and (c) broaden the authorities for
antiterrorism training 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. Allowing specified types of training to be
conducted outside the United States and expanding the types of
training that can be provided by Bureau of Diplomatic Security
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personnel will result in substantial cost savings to the the
antiterrorism program and increase the program's effectiveness.
SECTION 114. UNCOMMITTED FMS CREDITS FOR THE PHILIPPINES
This section provides authority to expend presently
uncommitted prior-year FMS credits issued for the Philippines
(not to exceed 529.4 million) without requirement of repayment
of principal or interest. This provision fulfills a commitment
made by the United States to the Philippines during the review
of the military bases agreement, which was successfully
concluded in the fall of 1988.
TITLE II - ECONOMIC SUPPORT FUND
SECTION 201. AUTHORIZATION OF APPROPRIATIONS
This section amends Section 532_(a) of the FAA to authorize
appropriations of 5 for fiscal year 1990 to carry
out the purposes of chapter 4 of part II of the FAA (ESF).
SECTION 202. EMERGENCY ASSISTANCE
This section amends Section 533(a) of the FAA to make
available in any fiscal year up to V5,000,000 for emergency
use during such fiscal year under chapter 4 of part II of the
FAA when the national interests of the United States urgently
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require economic support to promote economic or political
stability.
SECTION 203. DEMOCRATIC INSTITUTIONS
This section broadens Section 534 of the FAA, which
provides authority for Administration of Justice activities, to
authorize support for electoral and legislative processes as
well. All such assistance is directed to be of a nonpartisan
nature.
New provisions include authorizations of assistance for
specialized training and exchanges for public officials and
individuals involved in the administration of justice or
electoral or legislative processes, and programs to enhance the
performance of institutions in those areas.
The Bill also adds to the authorities provided,
notwithstanding Section 660 of the FAA: support for programs
to strengthen civil-military relations as a necessary
underpinning of democracy and to improve knowledge among both
military and law enforcement officers of international
standards for protection of civil and political rights, and for
programs to enhance protection of participants in judicial
cases.
The Bill deletes authority for support under this section
for programs conducted through mulitlateral or regional
institutions to improve penal institutions and the
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rehabilitation of offenders. Other authorities have been
expanded to include support for enhancement of nonpartisan
electoral and legislative as well as legal functions. The Bill
eliminates the separate congressional notification requirement
under Section 534, and provides permanent authorization for
activities carried out under that section. At the same time,
the limitation on funds to be appropriated under Section
534(b)(3) is extended to all future fiscal years. The overall
limitation on funds to be appropriated for any fiscal year
under Section 534 is raised to thirty million dollars.
TITLE III - DEVELOPMENT ASSISTANCE
SECTION 301. AGRICULTURE, RURAL DEVELOPMENT, AND NUTRITION
This section amends Section 103(a)(2) of the FAA to
authorize S in appropriations for fiscal year 1990
to carry out Agriculture, Rural Development and Nutrition
programs.
SECTION 302. CHILD SURVIVAL FUND
This section amends Section 104(c)(2) of the FAA to
authorize appropriations of S for fiscal year
1990 to carry out programs under the Child Survival Fund, and
to provide that, except as otherwise provided in Section 104,
assistance under 104(c)(2) may be made available
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notwithstanding any other provision of the FAA (other than
subsections (a), (f), and (t) of Section 620 and Section 620A)
or any other Act.
SECTION 303. POPULATION AND HEALTH
Section 303 amends Section 104(g)(1) of the FAA to
authorize appropriations of S for fiscal year 1990
for Population Planning programs and S for fiscal
year 1990 for Health programs.
SECTION 304. INTERNATIONAL AIDS PREVENTION AND CONTROL
This section amends Section 104 of the FAA to add a new
subsection (d) authorizing the President to furnish assistance,
on such terms and conditions as he may determine, for
prevention and control of the Acquired Immune Deficiency
Syndrome ("AIDS"). This includes the authority to collect and
disseminate information on the spread of AIDS and its economic
and developmental effects. In carrying out the purposes of
this section, A.I.D. is directed to seek to ensure adequate
coordination with other federal agencies, international
organizations, and private and voluntary organizations
("PV0s"). Assistance activities pursuant to this
new subsection are directed to include support for appropriate
activities carried out by international organizations,
including such organizations receiving funds under chapter 3 of
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Part I of the FAA ("International Organizations and Programs"),
and PVOs.
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Funds in the amount of 5 , to remain available
until expended, are authorized to be appropriated for
International AIDS Prevention and Control programs for fiscal
year 1990 and to be made available notwithstanding any other
provision of law. Subsections (d) through (g) of Section 104
of the FAA are redesignated to reflect the addition of the new
subsection (d).
SECTION 305. EDUCATION AND HUMAN RESOURCES DEVELOPMENT
This section amends Section 105(a) of the FAA to authorize
appropriations of 5 for fiscal year 1990 for
Education and Human Resource Development programs.
SECTION 306. PRIVATE SECTOR, ENERGY, AND PRIVATE AND VOLUNTARY
ORGANIZATIONS
This section amends Section 106(e)(1) of the FAA to
authorize appropriations of 3 for fiscal year 1990,
for programs involving the private sector, energy, and private
and voluntary organizations.
SECTION 307. PRIVATE SECTOR REVOLVING FUND AND GUARANTY
AUTHORITY
This section amends section 108(b) of the FAA to authorize
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the deposit of up to S in the Private Sector
Revolving Fund.
SECTION 308. SUB-SAHARAN AFRICA
Subsection (a) of this section amends section 120 of the
FAA to authorize the "Development Fund for Africa." In
recognition of the unique economic crisis confronting the
nations of sub-Saharan Africa, the new section 120(a)
authorizes the President to provide project and program
assistance, on such terms and conditions as he may determine,
for economic development activities in sub-Saharan Africa. The
assistance must be in accordance with the policies set forth in
Section 102 of the FAA, and is to be provided to meet certain
objectives. Among these objectives are: helping the poor
majority in sub-Saharan Africa through a process of long-term
economic growth that is equitable, participatory,
environmentally sustainable and self-reliant; promoting reform
of sectoral policies and priorities taking into account the
need to protect vulnerable groups; supporting the establishment
of favorable environment for individual enterprise and
self-sustaining development; increasing agricultural production
and maintaining and restoring the natural resource base in ways
that are mutually supportive and reinforcing; maintaining and
improving basic transportation and communications networks;
improving health conditions and access to voluntary family
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planning services; improving basic literacy and primary
education; developing income-generating opportunities; and
assisting projects supported by the Southern Africa Development
Coordination Conference. Assistance is directed to be
provided, wherever possible, through African and U.S. PV0s with
demonstrated experience in grassroots development activities.
The A.I.D. Administrator is directed to target the
equivalent of ten percent of the amount authorized to be
appropriated for the DFA to each of three priority areas: (1)
maintaining and restoring the renewable natural resource base
in ways that increase agricultural production; (2) health
activities; and (3) voluntary family planning.
There are authorized to be appropriated S for
fiscal year 1990 for the DFA, in addition to other funds
available for such purposes. Local currencies which may be
generated from the assistance provided by this section are
directed to be deposited in separate accounts and used for
development activities consistent with the policy directions of
Section 102 of the FAA or for the administrative requirements
of the U.S. Government.
New Section 120(e) of the FAA waives the application of
Section 604(a) of the FAA and similar provisions of law
concerning the procurement of goods and services for assistance
activities consistent with new Section 120. This waiver does
not apply to the provisions of the Comprehensive Anti-Apartheid
Act of 1986.
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Subsection (b) of this section makes certain conforming
amendments to the FAA and to the Agricultural Trade Development
and Assistance Act of 1954 to incorporate references to the
Development Fund for Africa.
SECTION 309. ASSISTANCE FOR DISADVANTAGED SOUTH AFRICANS
Subsection (a) of this section amends Section 117 of the
FAA to provide for assistance to disadvantaged South Africans,
to be used for activities that are consistent with the
objective of a majority of South Africans for an end to the
apartheid system and the establishment of a society based on
non-racial principles. Activities which may be supported
include: (1) education, training, and scholarships for the
victims of apartheid, including teachers and other educational
professionals who are attending universities and colleges in
South Africa, (2) scholarships for students pursuing secondary
school education in South Africa, and (3) in-service teacher
training programs in South Africa. References to specific
organizations to be considered for assistance are removed, but
the amended section directs that priority shall be given to
working with and through South African nongovernmental
organizations which have the support of the disadvantaged
communities being served, and that assistance shall not be used
to provide support to governmental or government-controlled
institutions that do not embody the objectives of actively
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seeking the end of apartheid and the establishment of a
non-racial democracy.
Subsection (b) amends Section 116(e)(2) of the FAA to
provide that grants under that section to organizations in
South Africa that contribute to the promotion of a just
society, to aiding victims of official discrimination, and to
the elimination of apartheid in a nonviolent manner, shall not
be used to provide support to governmental or
government-controlled institutions that do not embody the
objectives to actively seek the end of apartheid and the
establishment of a non-racial democracy. The amendment goes on
to provide that the average of all grants under Section 116(e)
of the FAA is not to exceed S25,000, and to delete an obsolete
reporting provision under 116(e). Section 116(f) of the FAA is
amended to remove the specific earmark for activities
authorized therein, and to remove limits on individual grants
and grant averages. Earmarks in Section 116(g) of_the FAA are
also deleted.
SECTION 310. ENDOWMENTS
This section adds a new subsection (f) to Section 122 of
the FAA to authorize the provision of DA or ESF on a grant
basis to any nonprofit non-governmental entity for the
establishment of an endowment whose principal purpose is the
advancement of one or more DA objective. The assistance
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provided under this new subsection is to serve as the principal
for such an endowment, with interest or any other income earned
on the principal to be retained by the grantee without any
further appropriation required. Any income earned and retained
is to be used for the same purposes for which the grant was
made.
SECTION 311. FUND RAISING ACTIVITIES OF NON-PROFIT GRANTEES
This section adds a provision to Section 123 of the FAA to
provide that DA and ESF funds may be used to support the
overseas fundraising activities of PV0s and other non-profit
grantees, notwithstanding any other provision of law, provided
such funds are not used for entertainment or representational
expenses.
SECTION 312. NARCOTICS AWARENESS ACTIVITIES
a.
This section amends Section 126 of the FAA to provide that
assistance for narcotics awareness activities under that
section may be provided notwithstanding any other provision of
law.
TITLE IV - OTHER ASSISTANCE PROGRAMS AND AUTHORIZATIONS
SECTION 401. AMERICAN SCHOOLS AND HOSPITALS ABROAD
This section amends Section 214(c)(1) of the FAA to
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authorize appropriations of S for fiscal year 1990
for the American Schools and Hospitals Abroad program.
SECTION 402. HOUSING AND OTHER CREDIT GUARANTY PROGRAMS
This section amends Section 222 of the FAA to provide that
the total principal amount of guarantees for housing and other
credit guaranty programs that are outstanding at any one time
may not exceed S , and that the authority under that
section is to be extended through September 1991
Section 223(b) of the FAA is amended to include
administrative and operating expenses of urban programs among
the expenses that may be covered by Housing Guaranty fee income.
Section 223(e) of the FAA is amended to remove the ceiling
on the borrowed amount that may be outstanding at any one time
to meet obligations incurred to pay claims arising in
connection with loan guaranties described in Section 223(d) of
the Act.
Section 223(f) is amended to provide that the determination
of the maximum rate of allowable interest for eligible
investors under Section 222 of the FAA shall rest solely with
A.I.D.
Section 223 is further amended in subsection (j) to raise
the annual per country ceiling on housing guaranties from S25
million to S50 million and to eliminate the requirement that
the average face value of guaranties not exceed S15 million in
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any fiscal year.
SECTION 403. AGRICULTURAL AND PRODUCTIVE CREDIT AND SELF-HELP
COMMUNITY DEVELOPMENT PROGRAMS
This section amends Section 222A(h) of the FAA to extend
authorization for Agricultural and Productive Credit and
Self-Help Community Development Programs through September 30,
1991.
SECTION 404. TRADE CREDIT INSURANCE PROGRAM
This section amends Section 224 of the FAA to permit
guarantee commitments under the Trade Credit Insurance
Program(TCIP) through September 30, 1992. During fiscal year
1990, commitments entered into to guaranty or insure loans
under this program may not exceed 5200,000,000 of contingent
liability for loan principle, subject to amounts provided for
in an appropriations act.
Subsection (c) of this section provides the Export-Import
Bank with authority to charge fees and premiums in connection
with financing provided under TCIP. Any amounts received by
the Bank in excess of the estimated costs incurred by the Bank
in administering such transactions are to be credited to the
liability reserve fund established by A.I.D. under Section
224(b) of the FAA, to be available for payments by A.I.D. to
Ex-Im Bank for guarantees under TCIP.
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SECTION 405. VOLUNTARY CONTRIBUTIONS TO INTERNATIONAL
ORGANIZATIONS AND PROGRAMS
This section amends Section 302(a)(1) of the FAA t
authorize appropriations of S for fiscal year 1990
for voluntary contributions to international organizations and
programs.
SECTION 406. INTERNATIONAL DISASTER ASSISTANCE
This section amends Section 492(a) of the FAA to authorize
appropriations of S25,000,000 for fiscal year 1990 for
international disaster assistance activities.
SECTION 407. INTERNATIONAL NARCOTICS MATTERS
Section 506 amends section 482(a)(1) of the FAA to
authorize 2 in fiscal year 1990 for international
narcotics control programs.
SECTION 408. TRADE AND DEVELOPMENT PROGRAM
This section amends Section 661(b) of the FAA to authorize
appropriations of S fcr fiscal year 1990 for
the Trade and Development Program, to remain available until
expended.
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SECTION 409. OPERATING EXPENSES
This section amends Section 667(a)(1) of the FAA to
authorize appropriations of 5 for fiscal year
1990 for A.I.D. operating expenses.
SECTION 410. OPERATING EXPENSES, OFFICE OF THE INSPECTOR
GENERAL
This section amends the FAA to add a new section 6681
authorizing a separate appropriation for the operating expenses
of A.I.D.'s Office of the Inspector General, and authorizing
appropriations of for this purpose for fiscal
year 1990. New section 668 also authorizes the appropriation
of such additional amounts as may be necessary for increases in
salary, pay, retirement and other employee benefits authorized
by law, and for other nondiscretionary costs of such office.
All amounts appropriated under the new section are authorized
to remain avaialble until expended.
TITLE V - MISCELLANEOUS PROVISIONS
SECTION 501. CONTINGENCIES
Section 451 of the FAA provides that up to 510 million of
funds made available in any fiscal year may be used for
emergency purposes; it does not contain, however, an overall
limit on the amount that may be furnished during any fiscal
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year. This section amends section 451 by establishing that
limit at 650 million.
SECTION 502. WAR RESERVE STOCKPILES
This section amends section 514 of the FAA to extend the
War Reserve Stocks for Allies Program through fiscal year 1991
and authorizes 565 million in fiscal year 1990 and t78 million
in fiscal year 1991 to carry out the program.
SECTION 503. IMET FLEXIBILITY
This section amends section 620(q) of the FAA to exempt the
IMET program from sanctions under that section and the
Brooke-Alexander Amendment. The intent of 620(q) and the
Brooke Amendment was to give the United States leverage and
foreign countries an incentive to repay U.S. loans. However,
IMET programs are usually so small in relation to loans and
irrearages that their termination provides very little
incentives to repay. In order to achieve the stated purpose of
the training efforts and to foster a long-term relationship,
the Administration must be provided the flexibility to continue
training for governments seeking to strengthen democratic
institutions when it is determined to be in the U.S. national
interest.
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SECTION 504. ASSISTANCE TO PAKISTAN
This section amends section 620E(d) of the FAA to extend
the current national interest waiver authority for Pakistan to
September 30, 1994. This amendment provides the requisite
flexibility to continue assistance to Pakistan if it is in the
national interests of the United States to do so and if the
required certification with regard to a nuclear explosive
device can be made, given the facts at the time. Such
flexibility is necessary because of the strategic importance of
Pakistan and our mutual interest in stability in the region.
SECTION 505. SALE OF LOAN ASSETS
This section amends Section 635(g)(3) of the FAA to provide
that the President may exercise his authority to dispose of any
instrument evidencing indebtedness to the United States,
through the sale of such instrument to any party who is not the
obligor under such instrument, notwithstanding the provisions
of section 620(r) of the FAA, which prohibits relief to U.S.
Government loan recipients of repayment liability on any part
of the principal of, or interest on, such loan. The amendment
further provides that section 620(r) of the FAA shall not apply
to any subsequent transactions involving such instrument,
including the resale of such instrument to another obligee or
to the obligor, at a price lower than the instrument's face
value.
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SECTION 506 ? EXCESS DEFENSE ARTICLES
This section adds a new section 517 to the FAA, which would
authorize the grant of a limited number of defense articles in
the inventories of the United States Government to regular
military forces in Latin America and the Caribbean on the
condition that the equipment be used primarily, but not
exclusively, in an established or incipient anti-narcotics
program. This proposal would supplement normal security and
narcotics assistance by providing an additional source of basic
military equipment without charge to recipient countries or the
defense or foreign assistance accounts. The program would also
provide a means of taking advantage of older basic military
equipment that is no longer adequate for U.S. needs nor
suitable for transfer to more advanced countries.
SECTION 507. STINGER MISSILE SALES TO PERSIAN GULF COUNTRIES
This section amends the FAA by adding a new section 620F,
which modifies the legislative ban on the sale of Stinger
missiles to Persian Gulf States to permit such sales to occur
upon a Presidential certification. Modification of the current
prohibition on the sale of Stinger missiles to Persian Gulf
countries to permit such sales only when the President
certifies to Congress that (a) such missiles are needed to
counter an immediate threat or to protect U.S. facilities or
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personnel, (b) an alternative system is not available, and (c)
the recipient has agreed to safeguards to protect against
diversion meets Congressional concerns about proliferation of
these systems and their diversion while providing flexibility
to meet the critical and legitimate security requirements of
friendly countries in the Persian Gulf.
SECTION 508. SAFETY OF FLIGHT ITEMS FOR CHILE
This section amends section 726(c) of the International
Security and Development Cooperation Act (ISCDA) of 1981 to
broaden the category of flight safety items authorized for sale
to Chile. It would permit the sale and licensing of equipment
(e.g., components, parts, tools, technical manuals, technical
changes to technical orders (TCT0s), or TCTO retrofit) that is
essential to the safe operation of the U.S.-supplied F-5 and
A-3? aircraft and the C-130E/H transport aircraft, which was
c9mmerically purchased by the Chilean Air Force and is used in?_
connection with cargo transport, humanitarian and disaster
relief projects, and scientific research. The current
prohibition against the sale of such items places the safety of
Chilean pilots and populations at risk.
SECTION 509. ASSISTANCE FOR AFGHANISTAN
This section amends section 904 of the ISDCA of 1985 to
authorize the use of DA or ESF funds for the provision of food,
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medicine, or other humanitarian assistance fo the Afghan
people, notwithstanding any other provision of law.
SECTION 510. ASSISTANCE FOR THE CAMBODIAN PEOPLE
This section amends section 905 of ISDCA to authorize the
President to make grant military assistance or ESF funds
available to the noncommunist resistance forces in Cambodia,
notwithstanding any other provision of law.
SECTION 511. EXCLUSION FROM GROSS INCOME OF PAYMENTS TO
PARTICIPANT TRAINEES
This section amends the Internal Revenue Code to exclude
from gross income for federal income tax purposes U.S. foreign
assistance funds received by non-U.S. residents to pursue
educational and training opportuntities in the United States.
Included in such funds are payments or contributions to
participant trainees for items incident to their program of
study, training or research in the United States such as (but
not limited to) travel and lodging expenses, training
equipment, and clerical help.
SECTION 512. PAY AND ALLOWANCES FOR INSPECTOR GENERAL
INVESTIGATORS
This section amends Section 806 of the Foreign Service Act
to authorize retirement pay for criminal investigators in the
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Foreign Service similar to that provided criminal investigators
in the Civil Service. This section also provides for mandatory
retirment for Foreign Service criminal investigators in the
same manner as criminal investigators in the civil service.
SECTION 513. PAYMENTS FOR ANNUAL LEAVE
This section amends 5 U.S.C. 5551(a) to provide that a
lump-sum payment for accumulated annual leave to a federal
employee separating overseas shall not be calculated to include
any post differential that such employee may have been
receiving at the time of separation.
SECTION 514. RECIPROCAL TREATMENT FOR FOREIGN MILITARY
PERSONNEL
This section amends the Friendly Forces Act to provide the
requisite basis to permit the United States to accord foreign
military personnel present in the United States rights that are
reciprocal to those given to U.S. military personnel serving
overseas. Such authority would facilitate our efforts to
ensure adequate legal protection for U.S. military personnel
and our ability to conclude base rights agreements. One factor
complicating those efforts is the fact that the United States
does not accord the same rights to the limited number of
foreign military personnel located-in the United States that we
seek for the much larger contingent of U.S. military personnel
present overseas.
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SECTION 515. REPORTING REQUIREMENTS
This section repeals or modifies various reporting
requirements. Subsection (a) repeals chapter 7 of part II of
the Foreign Assistance Act of 1961. This chapter, which was
added in 1979, and authorized U.S. construction of and funding
for two air bases in Israel, is no longer relevant since all
activities contemplated by the chapter has been completed.
Subsection (b) repeals the requirement in section 620(s)(2)
of the FAA to submit an annual report on how the percentage of
a country's budget and foreign exchange devoted to military
purposes and the degree to which it is using its foreign
exchange or other resources to acquire military equipment have
been taken into account before assistance is provided to a
country. Since section 620(s)(2) was enacted in 1969, the
mechanisms for reporting to Congress on assistance programs
have been greatly expanded and improved. Through Congressional
Presentation materials, reports required by section 634(a) of
the FAA, various other reports and congressional testimony, the
(.ongress is kept informed of the reasons for allocations of
assistance to particular countries. Section 620(s)(2) requires
the preparation of a comprehensive annual report which
addresses only one of the many factors taken into account in
making allocation decisions. Also, the report requires the
compilation of information that overlaps substantially with
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information already included in the report prepared by the
State Department under section 25 of the AECA.
Subsection (c) repeals two requirements -- (1) that the
decision to furnish assistance to a country take into account
the country's status in paying its dues to the United Nations
and (2) that the President report to the Congress on assurances
by a country in arrears to the UN regarding payment of its
obligations. These requirements are outdated and incongruous
given the record of U.S. payment of UM dues and assessments.
Subsection (d) repeals section 620(x) of the Foreign
Assistance Act of 1961 -- a provision which suspended
assistance to Turkey following its "invasion" of Cyprus;
subsection (e) repeals a provision relating to the suspension
of assistance to Turkey under this section. Section 620(x) of
the Foreign Assistance Act is no longer in force. Section
13(a) of the International Security Assistance Act of 1978
specified that the provision suspending aid to Turkey would be
of no further force and effect once the President had
determined and certified to Congress that resumption of aid to
Turkey was in the national interest and in NATO's interest and
that Turkey was in good faith seeking a peaceful settlement of
the Cyprus problem. The President made this determination and
certification in 1978.
Subsection -(f) repeals section 1205 of the International
Security and Development Cooperation Act of 1985 which requires
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annual reports on the economic conditions in various countries
and their ability to meet their international debt
obligations. Information on particular countries' debt and
economic status is included in testimony presented to
Congressional committees, in Congressional Presentation
materials, and in other reports as needed.
Subsection (g) amends the Anglo-Irish Agreement Support Act
of 1986 by eliminating the requirement in Section 5(c) of that
Act for a certification to Congress prior to any U.S.
contributions to the International Fund for Ireland.
TITLE VI - TECHNICAL AMENDMENTS
SECTION 601. TECHNICAL AMENDMENTS
This section makes technical amendments to section 3(a) of
the AECA and section 505(e) of the FAA by replacing the term
"significant defense articles" with the term "significant
military equipment". This section also amends section 36(d) of
the AECA by replacing the word "combat" with "military" in
order to conform obsolete terms with those used in the
International Traffic in Arms Regulations. This section also
redesignates section 25(d) of the AECA as added in 1985 as
subsection (e) to eliminate the redundancy of two subsections
designated as (d) and section 25(a)(5)(B) to clarify the
reference to the redesignated subsection (e).
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TITLE VII - AUTHORIZATIONS FOR FISCAL YEAR 1991
AND EFFECTIVE DATE
SECTION 701. AUTHORIZATIONS FOR FISCAL YEAR 1991
Section 701, in accordance with the requirements of section
607 of the Congressional Budget Act of 1974, authorizes
appropriations for fiscal year 1991 for all programs and
activities for which appropriations for the fiscal year 1990
are authorized by this Bill.
SECTION 702. EFFECTIVE DATE
Section 702 provides that, except where otherwise stated in
the Bill, the effective date for this Bill is October 1, 1989.
Drafted: State:L/PM:DDKennedy:AID:GC:RLester/RMatalon
Doc. #2040G
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