HR 1759 — Foreign Assistance Reform Act of 1997

Congress: 105 · Status: active · Israel/Palestine classification: pro-Israel

Sponsor: Rep. Gilman, Benjamin A. [R-NY-20] (R-NY)

Summary

TABLE OF CONTENTS: Title I: General Provisions Title II: Consolidation of Certain International Affairs Agencies Title III: Foreign Assistance Reform Title IV: Defense and Security Assistance Title V: Economic Assistance Title VI: Trade and Development Agency Title VII: Special Authorities and Other Provisions Title VIII: Funding Levels Title I: General Provisions - Foreign Assistance Reform Act of 1997 - Declares that: (1) U.S. leadership overseas must be maintained to support America's vital national security, economic, and humanitarian overseas interests; and (2) with the end of the Cold War, foreign assistance programs must be reformed to take advantage of the opportunities for the United States in the 21st century. Title II: Consolidation of Certain International Affairs Agencies - International Affairs Agency Consolidation Act of 1997 - Abolishes the United States International Development Cooperation Agency, and transfers all functions of the agency Director to the Administrator of the United States Agency for International Development (USAID). (Sec. 221) Provides for: (1) the continuation of USAID as a Federal agency; and (2) subordination of the Administrator of USAID to the direction of the Secretary of State. Title III: Foreign Assistance Reform - Amends the Foreign Assistance Act of 1961 to revise requirements for the annual report to the Congress on foreign assistance programs. Shifts responsibility for such report from the Chairman of the Development Coordination Committee to the President. (Sec. 301) Directs the President, as part of the annual requests for foreign assistance program authorizations and appropriations, to submit to the Congress presentation documents that, among other things, declare: (1) the rationale and direct U.S. national interest for the allocation of assistance under such Act and the Arms Export Control Act to each foreign country, regional, or centrally-funded program, or organization; and (2) an estimate of the year in which each country will no longer receive bilateral development assistance. (Sec. 302) Urges the President for FY 1998 and 1999 to allocate foreign assistance funds to private and voluntary organizations and cooperatives (as opposed to foreign governments) in a manner that reflects the increase in the funding of such entities since FY 1995. (Sec. 303) Replaces the Private Sector Revolving Fund with a program of assistance (including loans, guarantees, and training) to increase the availability of credit to micro- and small enterprises. Authorizes appropriations. (Sec. 304) Authorizes the Administrator of USAID to provide grant assistance for programs of credit and other assistance for microenterprises in developing countries. Directs the Administrator to establish a monitoring system establishing performance goals for such assistance. (Sec. 305) Authorizes the President to provide funds and support to private sector Enterprise Funds for countries eligible to receive development assistance on the same basis as such funds and support are provided to Enterprise Funds for Poland and Hungary under the Support for East European Democracy (SEED) Act of 1989. (Sec. 306) Authorizes the President to use certain development credit authority to promote: (1) micro- and small enterprise development; and (2) certain urban and environmental activities. Authorizes appropriations. Requires, to the maximum extent practicable, the use of U.S. technology, firms, and equipment with respect to such activities. (Sec. 307) Requires the withholding from obligation for a foreign country of an amount equivalent to 110 percent of the total unpaid fully adjudicated parking fines owed to the District of Columbia, Virginia, Maryland, New York, and New York City by the government of such country in a fiscal year, until the Secretary of State certifies to the appropriate congressional committees that such fines are fully paid. (Sec. 308) Directs the President to withhold U.S. assistance to any foreign country providing economic, development, or security assistance for, or engaging in nonmarket based trade with, the Government of Cuba. Allows waiver of such requirements if the President certifies to the appropriate congressional committees that the provision of such assistance is important to U.S. national security. Title IV: Defense and Security Assistance - Amends the Foreign Assistance Act of 1961 to authorize appropriations for FY 1998 and 1999 for U.S. antinarcotics assistance to foreign countries. (Sec. 403) Directs the President for each major illicit drug producing, major drug-transit, or major money laundering country to do one or more of the following: (1) withhold U.S. bilateral assistance; or (2) instruct the U.S. Executive Director of each multilateral development bank to vote against any loan or other assistance to or for such country. (Sec. 411) Amends the Foreign Assistance Act of 1961 to authorize the President to establish the Nonproliferation and Disarmament Fund to promote bilateral and multilateral nonproliferation and disarmament activities with specified goals. Prohibits the use of the Fund to implement U.S. obligations under bilateral or multilateral arms control treaties or nonproliferation accords. Earmarks funds for: (1) nonproliferation and disarmament activities; (2) demining activities; (3) voluntary contributions to the International Atomic Energy Agency (IAEA) and the Korean Peninsula Energy Development Organization (KEDO); and (4) antiterrorism. Authorizes appropriations. (Sec. 421) Authorizes appropriations for grant assistance and direct loans for the procurement of defense articles and services by countries and international organizations friendly to the United States. (Sec. 422) Earmarks specified amounts of military assistance for: (1) Israel and Egypt; (2) the transition of countries to NATO membership; (3) direct loans for Greece and Turkey; and (4) administrative expenses. (Sec. 431) Amends the Foreign Assistance Act of 1961 to authorize appropriations for military education and training for civilian personnel in foreign countries. (Sec. 432) Makes Panama and Haiti eligible for assistance under the international military education and training (IMET) program. (Sec. 441) Authorizes the Secretary of the Navy to transfer certain naval vessels to: (1) Brazil; (2) Chile; (3) Egypt; (4) Israel; (5) Malaysia; (6) Mexico; (7) Taiwan; and (8) Thailand. (Sec. 444) Directs the Secretary of the Navy to require recipient countries to have such vessels repaired or refurbished at U.S. shipyards. Indonesia Military Assistance Accountability Act - Prohibits U.S. military assistance and arms transfers to the Government of Indonesia unless the President certifies to the Congress that it: (1) provides official accreditation to independent election-monitoring organizations to observe national elections without Government or military interference; (2) protects certain nongovernmental organizations from the Indonesian police and military; (3) has accounted for the attack on the headquarters of the Democratic Party of Indonesia (PDI) on July 27, 1996; (4) has taken specified steps to resolve the conflict in East Timor; and (5) has taken specified steps to improve labor rights. Provides for a waiver of such requirements in emergencies or in the U.S. national interest. (Sec. 461) Amends Federal law to extend the authorization for the transfer of excess defense articles to countries eligible to participate in the Partnership for Peace program and for assistance under the SEED Act of 1989. (Sec. 462) Authorizes the President, in return for specified concessions, to transfer to the Republic of Korea certain obsolete or surplus defense articles in the war reserve allies stockpile. (Sec. 463) Limits to no more than $60 million for FY 1998 the value of additions to the stockpiles of defense articles in foreign countries. Sets forth limits for stockpiles in the Republic of Korea and Thailand. (Sec. 466) Directs the President to convene, and report to specified congressional committees on, negotiations with all Wassenaar Arrangement countries for the purpose of establishing a multinational arms sales code of conduct. Title V: Economic Assistance - Amends the Foreign Assistance Act of 1961 to authorize appropriations for economic support funds (ESF) assistance. (Sec. 502) Earmarks amounts for Israel, Egypt, the International Fund for Ireland, programs under the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 and the Cuban Democracy Act of 1992, and assistance and training for civilian personnel of the Ministry of Defense of the Government of Nicaragua. Declares that future U.S. assistance to Egypt will depend on whether it fulfills its obligations to develop peace with Israel and other critical U.S. interests both in Egypt and the wider Arab world. (Sec. 511) Amends the Foreign Assistance Act of 1961 to authorize appropriations for specified development assistance, including: (1) the Development Fund for Africa; (2) assistance for the independent states of the former Soviet Union (independent states); (3) assistance for Eastern Europe; (4) debt relief for Bosnia and Herzegovina; (5) the Inter-American Foundation; and (6) the African Development Foundation. (Sec. 512) Earmarks certain foreign assistance funds for specified child survival, health, basic education for children, and disease prevention programs. Authorizes appropriations. (Sec. 513) Limits the amount of foreign assistance funds available to the Russian Federation unless the President reports to the Congress that the Government of the Russian Federation has terminated assistance to the ballistic missile or nuclear programs of Iran and nuclear reactor projects of Cuba. Prohibits the availability of such funds to the Russian Federation if it transfers an SS-N-22 missile system to China, unless the President determines that making such funds available is important to U.S. national security. (Sec. 514) Expresses the sense of the Congress that the President should seek cooperation from the governments of Armenia and Azerbaijan to ensure that humanitarian assistance is made available to their needy citizens, including those in the region of Nagorno-Karabakh. (Sec. 515) Expresses the sense of the Congress that: (1) U.S. investment in international agricultural development and research advances food security, reduces poverty, increases political stability, and promotes U.S. exports; and (2) the USAID should increase emphasis on agricultural development and research and expand its role in poverty relief, child survival, and environmental programs. (Sec. 516) Specifies a desired proportion of certain development assistance for activities and programs in Latin America and the Caribbean region and the Asia and the Pacific region. (Sec. 517) Urges the President to allocate for FY 1998 and 1999 an aggregate level of agricultural development assistance in amounts equal to the level provided in FY 1997. Urges the President to increase amounts for agricultural, rural development, and nutrition programs if appropriation levels for development assistance programs increase in FY 1998 and 1999 above FY 1997 levels. (Sec. 521) Authorizes appropriations for operating expenses of USAID and its Office of the Inspector General. (Sec. 531) Revises the authority for the urban and environmental credit program to repeal: (1) minimum annual program levels; (2) authority for agricultural and productive credit and self-help community development programs; and (3) certain requirements for guaranties for housing projects (including face amounts for Egypt and Israel). (Sec. 541) Amends the Peace Corps Act to authorize appropriations for the Peace Corps. (Sec. 542) Earmarks certain foreign assistance funds for Peace Corps activities in the independent states of the former Soviet Union and Mongolia. Prohibits the use of funds to pay for abortions. (Sec. 551) Amends the Foreign Assistance Act of 1961 to revise congressional policy to affirm U.S. willingness to provide international disaster assistance for the reconstruction of foreign countries. (Sec. 552) Authorizes appropriations for international disaster assistance. (Sec. 561) Amends the Foreign Assistance Act of 1961 to replace the Central America Democracy, Peace, and Development Initiative with a program of special debt relief for poor countries. Authorizes the President to reduce amounts owed to the U.S. Government as a result of loans or guarantees issued under the Foreign Assistance Act of 1961 or credits or guarantees extended under the Arms Export Control Act. Makes eligible for such debt reduction countries with a heavy debt burden that: (1) are eligible to borrow from the International Development Association but not from the International Bank for Reconstruction and Development (World Bank); and (2) meet other specified conditions concerning military expenditures, terrorism, narcotics control, and human rights. States that such authority may be exercised only to implement multilateral official debt relief ad referendum agreements (the Paris Club Agreed Minutes), and only to the extent that appropriations for the modifications are made in advance. Authorizes appropriations. (Sec. 562) Authorizes the President, subject to certain conditions, to sell to an eligible purchaser concessional loans made before January 1, 1995, to the government of an eligible country or reduce or cancel such loans on receipt of payment from an eligible purchaser for purposes of facilitating debt-for-equity, debt-for-development, or debt-for-nature swaps or debt buybacks by eligible countries to support specified activities. (Sec. 571) Amends the Foreign Assistance Act of 1961 to declare that restrictions on assistance for a country shall not be construed to restrict assistance in support of programs of nongovernmental organizations. (Sec. 572) Repeals authority to waive the requirement that U.S. private and voluntary organizations to which assistance is made available obtain at least 20 percent of their total annual financial support for international activities from sources other than the U.S. Government. (Sec. 573) Prohibits the availability of foreign assistance funds to private and voluntary organizations which: (1) fail to provide documents to meet auditing requirements of the USAID; or (2) are not registered with such agency. (Sec. 575) Expresses the sense of the Congress with respect to the utilization of U.S. cooperatives and credit unions in developing countries. (Sec. 576) Prohibits the availability of foreign assistance funds for food assistance to North Korea unless the President certifies to the Congress that certain conditions are met. (Sec. 577) Directs the President to withhold funds made available under this Act equal to the aggregate value of nuclear fuel and related assistance and credits provided by a foreign country, or an entity in that country, to Cuba during the preceding fiscal year, with specified exceptions. Title VI: Trade and Development Agency - Amends the Foreign Assistance Act of 1961 to authorize appropriations for the Trade and Development Agency. Title VII: Special Authorities and Other Provisions - Increases from ten to 20 percent the amount authorized to be transferred between specified accounts under the Foreign Assistance Act of 1961 and the Arms Export Control Act. (Sec. 702) Increases the amount of emergency assistance the President may use in any fiscal year for unanticipated contingencies. (Sec. 703) Authorizes the President to provide otherwise restricted assistance, sales, or other action under the Foreign Assistance Act of 1961, the Arms Export Control Act, or any annual (or periodic) foreign assistance authorization or appropriations legislation, if the Speaker of the House and a specified congressional committee are notified that to do so is vital to national interests. Increases annual ceilings with respect to such assistance. (Sec. 704) Authorizes the President, in order to make an equitable settlement of termination claims under extraordinary contractual relief standards, to adopt as a contract or other U.S. obligation and assume any liabilities under it, any contract with a U.S. or third-country contractor to carry out any program of foreign assistance that was subsequently terminated. (Sec. 705) Amends the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 to authorize the use of foreign assistance provided to independent nongovernmental human rights organizations and individuals in Cuba for local costs in delivering such assistance. (Sec. 711) Repeals specified foreign assistance laws. Title VIII: Funding Levels - Authorizes appropriations.