(2) USES OF LOCAL CURRENCIES.-As may be agreed upon with the foreign government, local currencies deposited in a separate account pursuant to subsection (a), or an equivalent amount of local currencies, shall be used only

(A) to carry out chapter 1 or 10 of part I or chapter 4 of part II (as the case may be), for such purposes as

(i) project and sector assistance activities; or
(ii) debt and deficit financing; or

(B) for the administrative requirements of the United States Government.

(3) PROGRAMMING ACCOUNTABILITY.-The United States Agency for International Development shall take all necessary steps to ensure that the equivalent of the local currencies disbursed pursuant to subsection (a)(2)(A) from the separate account established pursuant to subsection (a)(1) are used for the purposes agreed upon pursuant to subsection (a)(2).

(4) TERMINATION OF ASSISTANCE PROGRAMS.-Upon termination of assistance to a country under chapter 1 or 10 of part I or chapter 4 of part II (as the case may be), any unencumbered balances of funds which remain in a separate account established pursuant to subsection (a) shall be disposed of for such purposes as may be agreed to by the government of that country and the United States Government.

(5) REPORTING REQUIREMENT.-The Administrator of the United States Agency for International Development shall report on an annual basis as part of the justification documents submitted to the Committees on Appropriations on the use of local currencies for the administrative requirements of the United States Government as authorized in subsection (a)(2)(B), and such report shall include the amount of local currency (and United States dollar equivalent) used and/or to be used for such purpose in each applicable country.

(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.-(1) If assistance is made available to the government of a foreign country, under chapter 1 or 10 of part I or chapter 4 of part II of the Foreign Assistance Act of 1961, as cash transfer assistance or as nonproject sector assistance, that country shall be required to maintain such funds in a separate account and not commingle them with any other funds.

(2) APPLICABILITY OF OTHER PROVISIONS OF LAW.-Such funds may be obligated and expended notwithstanding provisions of law which are inconsistent with the nature of this assistance including provisions which are referenced in the Joint Explanatory Statement of the Committee of Conference accompanying House Joint Resolution 648 (House Report No. 98-1159).56

(3) NOTIFICATION.-At least 15 days prior to obligating any such cash transfer or nonproject sector assistance, the President shall submit a notification through the regular notification procedures of the Committees on Appropriations, which shall include a detailed

56 Provisions referred to in the Joint Explanatory Statement of the Committee of Conference accompanying House Joint Resolution 648 (H. Report No. 98-1159) include: sec. 604 of the Foreign Assistance Act of 1961, as amended; section 901(b)(1) of the Merchant Marine Act of 1936, as amended; section 5 of the International Air Transportation Fair Competitive Practice Act of 1974; section 644 of the Small Business Act; section 2711 of the Competition in Contracting Act of 1984; and the provisions of the Federal Property and Administrative Services Act of 1949, as amended.

description of how the funds proposed to be made available will be used, with a discussion of the United States interests that will be served by the assistance (including, as appropriate, a description of the economic policy reforms that will be promoted by such assistance).

(4) EXEMPTION.-Nonproject sector assistance funds may be exempt from the requirements of subsection (b)(1) only through the notification procedures of the Committees on Appropriations.

COMPENSATION FOR UNITED STATES EXECUTIVE DIRECTORS TO
INTERNATIONAL FINANCIAL INSTITUTIONS

SEC. 530.57 (a) No funds appropriated by this Act may be made as payment to any international financial institution while the United States Executive Director to such institution is compensated by the institution at a rate which, together with whatever compensation such Director receives from the United States, is in excess of the rate provided for an individual occupying a position at level IV of the Executive Schedule under section 5315 of title 5, United States Code, or while any alternate United States Director to such institution is compensated by the institution at a rate in excess of the rate provided for an individual occupying a position at level V of the Executive Schedule under section 5316 of title 5, United States Code.

(b) For purposes of this section, "international financial institutions" are: the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the Asian Development Fund, the African Development Bank, the African Development Fund, the International Monetary Fund, the North American Development Bank, and the European Bank for Reconstruction and Development.

COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST IRAQ

SEC. 531.58 None of the funds appropriated or otherwise made available pursuant to this Act to carry out the Foreign Assistance Act of 1961 (including title IV of chapter 2 of part I, relating to the Overseas Private Investment Corporation) or the Arms Export Control Act may be used to provide assistance to any country that is not in compliance with the United Nations Security Council sanctions against Iraq unless the President determines and so certifies to the Congress that

(1) such assistance is in the national interest of the United States;

57 Similar language was first enacted as sec. 578 of the Foreign Assistance Appropriations Act, 1991. Reference to the North American Development Bank was added in the Foreign Assistance Appropriations Act, 1996.

5850 U.S.C. 1701 note. Language similar to that in this section was first enacted as sec. 586D(a) of the Foreign Assistance Appropriations Act, 1991 (part of the Iraq Sanctions Act of 1990-secs. 586-586J of the Foreign Assistance Appropriations Act, 1991). The section, as it was continued in annual foreign assistance appropriations acts, was expanded to include Serbia and Montenegro during fiscal years 1995 through 1997.

Sec. 586D(b) of the Foreign Assistance Appropriations Act, 1991, and subsequent foreign assistance appropriations acts through fiscal year 1997, authorized the President to prohibit importation into the United States of any or all products of any foreign country that had not prohibited exports to or imports from Iraq. Serbia and Montenegro were added to this language for fiscal years 1995 through 1997.

For text of sec. 586D of the 1991 Act, see Legislation on Foreign Relations Through 2002, vol

(2) such assistance will directly benefit the needy people in that country; or

(3) the assistance to be provided will be humanitarian assistance for foreign nationals who have fled Iraq and Kuwait. AUTHORITIES FOR THE PEACE CORPS, INTER-AMERICAN FOUNDATION AND AFRICAN DEVELOPMENT FOUNDATION

SEC. 532.59 Unless expressly provided to the contrary, provisions of this or any other Act, including provisions contained in prior Acts authorizing or making appropriations for foreign operations, export financing, and related programs, shall not be construed to prohibit activities authorized by or conducted under the Peace Corps Act, the Inter-American Foundation Act or the African Development Foundation Act. The agency shall promptly report to the Committees on Appropriations whenever it is conducting activities or is proposing to conduct activities in a country for which assistance is prohibited.

IMPACT ON JOBS IN THE UNITED STATES

SEC. 533.60 None of the funds appropriated by this Act may be obligated or expended to provide—

(a) any financial incentive to a business enterprise currently located in the United States for the purpose of inducing such an enterprise to relocate outside the United States if such incentive or inducement is likely to reduce the number of employees of such business enterprise in the United States because United States production is being replaced by such enterprise outside the United States; or

(b) assistance for any program, project, or activity that contributes to the violation of internationally recognized workers rights, as defined in section 507(4) of the Trade Act of 1974, of workers in the recipient country, including any designated zone or area in that country: Provided, That the application of section 507(4)(D) and (E) of such Act should be commensurate with the level of development of the recipient country and sector, and shall not preclude assistance for the informal sector in such country, micro and small-scale enterprise, and smallholder agriculture.

SPECIAL AUTHORITIES

SEC. 534.61 (a) AFGHANISTAN, LEBANON, MONTENEGRO, VICTIMS OF WAR, DISPLACED CHILDREN, AND DISPLACED BURMESE.-Funds

59 Similar language was first enacted in sec. 589 of the Foreign Assistance Appropriations Act, 1993. FY1999 through 2001 legislation included an exemption for funding directed to the International Fund for Agricultural Development, first enacted in sec. 537 of the Foreign Assistance Appropriations Act, 1999.

60 Similar language was first enacted, except the proviso in subsec. (b), as sec. 599 of the Foreign Assistance Appropriations Act, 1993. That proviso was added by sec. 547 of the Foreign Assistance Appropriations Act, 1994. Prior language, FY1993 through 2001, included a reference to discrepancy in tax, tariff, labor, environment, and safety laws.

61 Language similar to that in subsecs. (a) and (b) was first enacted as sec. 549 of the Foreign Assistance Appropriations Act, 1994. Various provisos in subsec. (a) have been added and omitted since the section's introduction. Subsec. (c) was added as subsec. (d) in fiscal year 1995. New subsec. (d) was added in sec. 540 of the Foreign Assistance Appropriations Act, 1999. Subsecs.

Continued

appropriated by this Act that are made available for assistance for Afghanistan may be made available notwithstanding section 512 of this Act and any similar provision of law, and funds appropriated in titles I and II of this Act that are made available for Lebanon, Montenegro, and for victims of war, displaced children, and displaced Burmese, and to assist victims of trafficking in persons and, subject to the regular notification procedures of the Committees on Appropriations, to combat such trafficking, may be made available notwithstanding any other provision of law.

(b) TROPICAL FORESTRY AND BIODIVERSITY CONSERVATION ACTIVITIES.-Funds appropriated by this Act to carry out the provisions of sections 103 through 106, and chapter 4 of part II, of the Foreign Assistance Act of 1961 may be used, notwithstanding any other provision of law, for the purpose of supporting tropical forestry and biodiversity conservation activities and energy programs aimed at reducing greenhouse gas emissions: Provided, That such assistance shall be subject to sections 116, 502B, and 620A of the Foreign Assistance Act of 1961.

(c) PERSONAL SERVICES CONTRACTORS.-Funds appropriated by this Act to carry out chapter 1 of part I, chapter 4 of part II, and section 667 of the Foreign Assistance Act of 1961, and title II of the Agricultural Trade Development and Assistance Act of 1954, may be used by the United States Agency for International Development to employ up to 20 personal services contractors in the United States, notwithstanding any other provision of law, for the purpose of providing direct, interim support for new or expanded overseas programs and activities managed by the agency until permanent direct hire personnel are hired and trained: Provided, That not more than 7 of such contractors shall be assigned to any bureau or office: Provided further, That such funds appropriated to carry out the Foreign Assistance Act of 1961 may be made available for personal services contractors assigned only to the Office of Procurement; the Bureau for Africa; and the Bureau for Asia and the Near East: Provided further, That such funds appropriated to carry out title II of the Agricultural Trade Development and Assist

(e) and (f) were added in sec. 534 in FY 2002. Subsecs. (g) through (j) were added in sec. 534 in FY 2003.

Reference to "victims of war" and "displaced children” have been included annually. Reference to assisting "victims of trafficking in persons" was added in FY 2003. The following countries and groups have been listed in similar sections in previous fiscal years:

Fiscal Years 2001 and 2002-Afghanistan, Lebanon, Montenegro, victims of war, displaced children, displaced Burmese;

Fiscal Year 2000-Afghanistan, Lebanon, Montenegro, victims of war, displaced children, displaced Burmese, Romania (humanitarian assistance), Kosova (humanitarian assistance); Fiscal Year 1999-Afghanistan, Lebanon, Montenegro, victims of war, displaced children, displaced Burmese, Romania (humanitarian assistance), (Kosova) humanitarian assistance; Fiscal Year 1998-Afghanistan, Lebanon, displaced Burmese, Romania (humanitarian assistance), and humanitarian assistance for the peoples of Bosnia and Herzegovina, Croatia and Kosova;

Fiscal Year 1997-Afghanistan, Lebanon, Cambodia (with conditions), displaced Burmese, Romania (humanitarian assistance), humanitarian assistance for the peoples of Bosnia and Herzegovina, Croatia and Kosova;

Fiscal Year 1996-Afghanistan, Lebanon, Cambodia (with conditions), displaced Burmese, Romania (humanitarian assistance), humanitarian assistance for the peoples of BosniaHerzegovina, Croatia and Kosova;

Fiscal Year 1995-Haiti, Afghanistan, Lebanon, Cambodia (with conditions), displaced Burmese, Romania (humanitarian assistance), humanitarian assistance for the peoples of BosniaHerzegovina, Croatia and Kosova; and

Fiscal Year 1994-Haiti, Afghanistan, Lebanon, Cambodia (with conditions), displaced Burmese, Romania (humanitarian assistance), humanitarian assistance for the peoples of BosniaHerzegovina, Croatia and Kosova.

ance Act of 1954, may be made available only for personal services contractors assigned to the Office of Food for Peace.

(d) 62 (1) WAIVER.-The President may waive the provisions of section 1003 of Public Law 100-204 if the President determines and certifies in writing to the Speaker of the House of Representatives and the President pro tempore of the Senate that it is important to the national security interests of the United States.

(2) PERIOD OF APPLICATION OF WAIVER.-Any waiver pursuant to paragraph (1) shall be effective for no more than a period of 6 months at a time and shall not apply beyond 12 months after the enactment of this Act.

(e) CONTINGENCIES.-During fiscal year 2003, the President may use up to $45,000,000 under the authority of section 451 of the Foreign Assistance Act, notwithstanding the funding ceiling in section 451(a).

(f) SMALL BUSINESS.-In entering into multiple award indefinitequantity contracts with funds appropriated by this Act, the United States Agency for International Development may provide an exception to the fair opportunity process for placing task orders under such contracts when the order is placed with any category of small or small disadvantaged business.

(g) SHIPMENT OF HUMANITARIAN ASSISTANCE.-During fiscal year 2003, of the amounts made available by the United States Agency for International Development to carry out the provisions of section 123(b) of the Foreign Assistance Act of 1961, funds may be made

62 Sec. 3 of the Middle East Peace Facilitation Act of 1993, as amended (Public Law 103-125; 107 Stat. 1309), authorized the President to suspend certain provisions of law, including sec. 307 of this Act, as they applied to the P.L.O. or entities associated with it if certain conditions were met and the President so certified and consulted with relevant congressional committees. This authority was continued in this Act, and in the Middle East Peace Facilitation Act of 1995, (title VI of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1996; Public Law 104-107).

The President issued certifications, as provided for in the 1993, 1994, and 1995 Acts, in Presidential Determination No. 94-13 of January 14, 1994 (59 F.R. 4777), which was extended until January 1, 1995, by Presidential Determination No. 94-30 of June 30, 1994 (59 F.R. 35607); until July 1, 1995, by Presidential Determination No. 95-12 of December 31, 1994 (60 F.R. 2673); until August 15, 1995, by Presidential Determination No. 95-31 of July 2, 1995 (60 F.R. 35827); until October 1, 1995, by Presidential Determination No. 95-36 of August 14, 1995 (60 F.R. 44725); until November 1, 1995, by Presidential Determination No. 95-50 of September 30, 1995 (60 F.R. 53093); until December 31, 1995, by Presidential Determination No. 96-5 of November 13, 1995 (60 F.R. 57821); until March 31, 1996, by Presidential Determination No. 968 of January 4, 1996 (61 F.R. 2889); until June 15, 1996, by Presidential Determination No. 96-20 of April 1, 1996 (61 FR. 26019); until August 12, 1996, by Presidential Determination No. 96-32 of June 14, 1996 (61 F.R. 32629); until February 12, 1997, by Presidential Determination No. 96-41 of August 12, 1996 (61 F.R. 43137); and until August 12, 1997, by Presidential Determination No. 97-17 of February 21, 1997 (62 F.R. 9903).

Authority to waive certain provisions is continued in general provisions of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2002 (Public Law 107-115); see secs. 534(d), 546, 549, and 555 (115 Stat. 2151, 2155, 2156, and 2160, respectively). See also sec. 566 (115 Stat. 2164), requiring a report on PLO compliance, and sec. 569 (115 Stat. 2166), prohibiting assistance to the Palestinian Broadcasting Corporation.

On December 5, 1997, the President waived the provisions of section 1003 of the Anti-Terrorism Act of 1987 (Public Law 100-204) through June 4, 1998 (Presidential Determination No. 98-8; 62 F.R. 66255); further waived through November 26, 1998 (Presidential Determination No. 98-29; June 3, 1998; 63 F.R. 32711); through May 24, 1999 (Presidential Determination No. 98-5; November 25, 1998; 63 F.R. 68145); through October 21, 1999 (Presidential Determination No. 99-25; May 24, 1999; 64 F.R. 29537); through April 21, 2000 (Presidential Determination 00-2; October 21, 1999; 64 F.R. 58755); through October 21, 2000 (Presidential Determination No. 2000-19; April 21, 2000; 65 F.R. 24852); through October 17, 2001 (Presidential Determination No. 01-13; April 17, 2001; 66 F.R. 20585); through April 16, 2002 (Presidential Determination No. 2002-03; October 16, 2001; 66 F.R. 53505); through October 16, 2002 (Presidential Determination No. 2002-14; April 16, 2002; 67 F.R. 20427); through April 16, 2003 (Presidential Determination No. 03-03; October 16, 2002; 67 F.R. 65471); and through October 16, 2003 (Presidential Determination No. 2003-20; April 16, 2003; 68 F.R. 20327).