Chapter 4-Supporting Assistance 499 [Repealed-1972]

Chapter 5-Contingencies 500

Sec. 451.501 Contingencies.500-(a) 502 (1) Notwithstanding any other provision of law, the President is authorized to use 503 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 unanticipated contingencies,504 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 $25,000,000 during any fiscal year 505

(2) The President shall report promptly to the Speaker of the House of Representatives and to the Committee on Foreign Relations and the Committee on Appropriations of the Senate each time he exercises the authority contained in this subsection.

(b) 506 *** [Repealed-1981]

(c) No part of this fund shall be used to pay for any gifts to any officials of any foreign government made heretofore or hereafter.507

Chapter 6-Central America Democracy, Peace, and
Development Initiative 508

Sec. 461.508, 509 Statement of Policy.-(a) The Congress finds that

499 Sec. 202(b) of the FA Act of 1971 (Public Law 92-226) repealed chapter 4 of part I. This subject matter is now covered under chapter 4 of part II of this Act, Economic Support Fund. 500 Sec. 2 of the International Security Assistance Act of 1979 (Public Law 96-92; 93 Stat. 701) changed the title of chapter 5 and sec. 451 from "Contingency Fund" to "Contingencies". Previously, sec. 503(1) of Public Law 94-329 substituted "Čontingency Fund" for "Disaster Relief in the title of chapter 5 while sec. 2(1) of Public Law 93-333 changed the title of chapter 5 from "Contingency Fund" to "Disaster Relief'.

501 22 U.S.C. 2261. Sec. 28(c) of the FA Act of 1974 (Public Law 93-559) amended and restated sec. 451. It formerly read as follows:

"Sec. 451. Contingency Fund-(a) There is authorized to be appropriated to the President for each of the fiscal years 1974 and 1975 not to exceed $30,000,000, to provide assistance authorized by this part primarily for disaster relief purposes, in accordance with the provisions applicable to the furnishing of such assistance. (b) The President shall provide quarterly reports to the Committee on Foreign Relations and the Committee on Appropriations of the Senate and the Speaker of the House of Representatives on the programing and the obligation of funds under subsection (a).".

502 Sec. 2 of the International Security Assistance Act of 1979 (Public Law 96-92; 93 Stat. 701) amended and restated subsec. (a).

503 Sec. 588(1) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (Public Law 101-513; 104 Stat. 2056), struck out "not to exceed $10,000,000 of” and "in any fiscal year" at these points, respectively.

504 Sec. 588(2) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (Public Law 101-513; 104 Stat. 2056), struck out "emergency purposes" and inserted in lieu thereof "unanticipated contingencies".

505 Sec. 588(3) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (Public Law 101-513; 104 Stat. 2056), added ", except that the authority of this subsection may not be used to authorize the use of more than $25,000,000 during any fiscal year.".

506 Sec. 734(a)(1) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1560) repealed subsec. (b), which had required a quarterly report from the President concerning the programing and obligation of funds under this section.

507 Sec. 452, which was added by sec. 2(2) of the Foreign Disaster Assistance Act of 1974 (Public Law 93-333) and formerly appeared at this point, was redesignated as sec. 494 by Sec. 101(4) of Public Law 94-161 (89 Stat. 849).

508 Sec. 604 of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 961) repealed chapter 6, as enacted in the Foreign Assistance Act of 1961, titled: "Assistance to Countries Having Agrarian Economies". Sec. 701 of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 234) added a new chapter 6 (sec. 461 through 466).

509 22 U.S.C. 2271.

(1) the building of democracy, the restoration of peace, the improvement of living conditions, and the application of equal justice under law in Central America are important to the interests of the United States and the community of American States; and

(2) the interrelated issues of social and human progress, economic growth, political reform, and regional security must be effectively dealt with to assure a democratic and economically and politically secure Central America.

(b)(1) The achievement of democracy, respect for human rights, peace, and equitable economic growth depends primarily on the cooperation and the human and economic resources of the people and governments of Central America. The Congress recognizes that the United States can make a significant contribution to such peaceful and democratic development through a consistent and coherent policy which includes a long-term commitment of assistance. This policy should be designed to support actively

(A) democracy and political reform, including opening the political process to all members of society;

(B) full observance of internationally recognized human rights, including free elections, freedom of the press, freedom of association, and the elimination of all human rights abuses; (C) leadership development, including training and educational programs to improve public administration and the administration of justice;

(D) land reform, reform in tax systems, encouragement of private enterprise and individual initiative, creation of favorable investment climates, curbing corruption where it exists, and spurring balanced trade;

(E) the establishment of the rule of law and an effective judicial system; and

(F) the termination of extremist violence by both the left and the right as well as vigorous action to prosecute those guilty of crimes and the prosecution to the extent possible of past offenders.

(2) The policy described in paragraph (1) should also promote equitable economic growth and development, including controlling the flight of capital and the effective use of foreign assistance and adhering to approved programs for economic stabilization and fiscal responsibility. Finally, this policy should foster dialog and negotiations

(A) to achieve peace based upon the objectives of democratization, reduction of armament, an end to subversion, and the withdrawal of foreign military forces and advisers; and

(B) to provide a security shield against violence and intimidation.

(3) It is the purpose of this chapter to establish the statutory framework and to authorize the appropriations and financing necessary to carry out the policy described in this section.

(c) The Congress finds, therefore, that the people of the United States are willing to sustain and expand a program for economic and military assistance in Central America if the recipient countries can demonstrate progress toward and a commitment to these goals.

Sec. 462,508,510 Conditions on Furnishing Assistance.-The President shall ensure that assistance authorized by this Act and the Arms Export Control Act to Central American countries is furnished in a manner which fosters demonstrated progress toward and commitment to the objectives set forth in section 461. Where necessary to achieve this purpose, the President shall impose conditions on the furnishing of such assistance. In carrying out this section, the President shall consult with the Congress in regard to progress toward the objectives set forth in section 461, and any conditions imposed on the furnishing of assistance in furtherance of those objectives.

Sec. 463,508,511 Peace Process in Central America.-The Congress

(1) strongly supports the initiatives taken by the Contadora group and the resulting Document of Objectives which has been agreed to by Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua and which sets forth a framework for negotiating a peaceful settlement to the conflict and turmoil in the region; and

(2) finds that the United States should provide such assistance and support as may be appropriate in helping to reach comprehensive and verifiable final agreements, based on the Document of Objectives, which will ensure peaceful and enduring solutions to the Central American conflicts.

Sec. 464.508, 512 Economic Assistance Coordination.-(a) The Congress finds that participation by Central American countries in an effective forum for dialog on, and the continuous review and advancement of, Central America's political, economic, and social development would foster cooperation between the United States and Central American countries.

(b) It is the sense of the Congress that

(1) the President should enter into negotiations with the countries of Central America to establish a Central American Development Organization (hereafter in this section referred to as the "Organization") to help provide a continuous and coherent approach to the development of the Central American region; and

(2) the establishment of the Organization should be based upon the following principles:

(A) Participation in the Organization should be open to the United States, other donors, and those Central American countries that commit themselves to, among other things, respecting internationally recognized human rights, building democracy, and encouraging equitable economic growth through policy reforms.

(B) The Organization should be structured to include representatives from both the public and private sectors, including representatives from the labor, agriculture, and business communities.

(C) The Organization should meet periodically to carry out the functions described in subparagraphs (Ď) and (E)

510 22 U.S.C. 2272. 511 22 U.S.C. 2273. 512 22 U.S.C. 2274.

of this paragraph and should be supported by a limited professional secretariat.

(D) The Organization should make recommendations affecting Central American countries on such matters as

(i) political, economic, and social development objectives, including the strengthening of democratic pluralism and the safeguarding of internationally recognized human rights;

(ii) mobilization of resources and external assistance needs; and

(iii) reform of economic policies and structures.

(E) The Organization should have the capacity for monitoring country performance on recommendations issued in accordance with subparagraph (D) of this paragraph_and for evaluating progress toward meeting such country objectives.

(F) To the maximum extent practicable, the United States should follow the recommendations of the Organization in disbursing bilateral economic assistance for any Central American country. No more than 75 percent of such United States assistance in any fiscal year should be disbursed until the recommendations of the Organization for that fiscal year have been made final and communicated to the donor countries. The limitation on disbursements contained in the preceding sentence should apply only to recommendations made final and communicated to donor countries prior to the fourth quarter of such fiscal year. The United States representative to the Organization should urge other donor countries to similarly implement the recommendations of the Organization.

(G) The administrator of the agency primarily responsible for administering part I of this Act, or his designee, should represent the United States Government in the Organization and should carry out his functions in that capacity under the continuous supervision and general direction of the Secretary of State.

(c) Subject to subsection (d)(2), the President is authorized to participate in the Organization.

(d)(1) The administrator of the agency primarily responsible for administering part I of this Act, under the supervision and direction of the Secretary of State, shall prepare a detailed proposal to carry out this section and shall keep the Committee on Foreign Affairs 513 of the House of Representatives and the Committee on Foreign Relations of the Senate fully and currently informed concerning the development of this proposal.

(2) The President shall transmit to the Committee on Foreign Affairs 513 of the House of Representatives and the Committee on Foreign Relations of the Senate a copy of the text of any agreement, which he proposes to sign, that would provide for the establishment of and United States participation in the Organization no less than sixty days prior to his signature. During that sixty-day period there

513 Sec. 1(a)(5) of Public Law 104-14 (109 Stat. 186) provided that references to the Committee on Foreign Affairs of the House of Representatives shall be treated as referring to the Committee on International Relations of the House of Representatives.

shall be full and formal consultations with and review by those committees in accordance with procedures applicable to reprogramming notifications pursuant to section 634A of this Act.

Sec. 465.508, 514 Authorization for Fiscal Years 1988 and 1989. (a) In addition to amounts otherwise available for such purposes, there are authorized to be appropriated to the President, for the purpose of furnishing nonmilitary assistance for Central American countries, $1,200,000,000 for each of the fiscal years 1988 and 1989, which are authorized to remain available until expended.

(b) For the purpose of providing the assistance described in subsection (a), funds appropriated pursuant to the authorizations in that subsection may be transferred by the President for obligation in accordance with the authorities of part I of this Act (including chapter 4 of part II), the Peace Corps Act, the Migration and Refugee Assistance Act of 1962, the United States Information and Education Exchange Act of 1948, the Mutual Educational and Cultural Exchange Act of 1961, the National Endowment for Democracy Act, and the State Department Basic Authorities Act of 1956. Sec. 466,508,515 Definitions.-For the purposes of this chapter, the term "Central American countries" includes Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, and regional programs which benefit such countries.

Chapter 7-Debt-For-Nature Exchanges 516

Sec. 461.517 Definition.-For purpose of this chapter, the term "debt-for-nature exchange" means the cancellation or redemption of the foreign debt of the government of a country in exchange for(1) that government's making available local currencies (including through the issuance of bonds) which are used only for eligible projects involving the conservation or protection of the environment in that country (as described in section 463); 518

or

(2) that government's financial resource or policy commitment to take certain specified actions to ensure the restoration,

514 22 U.S.C. 2275.

515 22 U.S.C. 2276.

516 Sec. 604 of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 961) repealed chapter 7, as enacted in the Foreign Assistance Act of 1966 (Public Law 89-583), titled: "Joint Commissions on Rural Development". A new chapter 7 was added by sec. 711 of the International Development and Finance Act of 1989 (Public Law 101240; 103 Stat. 2521).

517 22 U.S.C. 2281. All sections in chapter 7 are misnumbered, as enacted by the International Development and Finance Act of 1989 (Public Law 101-240; 103 Stat. 2521). Should read "Sec. 471". The Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2005 (division D of Public Law 108-447; 118 Stat. 2809), provided the following:

"DEBT-FOR-DEVELOPMENT

"SEC. 528. In order to enhance the continued participation of nongovernmental organizations in debt-for-development and debt-for-nature exchanges, a nongovernmental organization which is a grantee or contractor of the United States Agency for International Development may place in interest bearing accounts local currencies which accrue to that organization as a result of economic assistance provided under title II of this Act and, subject to the regular notification procedures of the Committees on Appropriations, any interest earned on such investment shall be used for the purpose for which the assistance was provided to that organization.".

See also in that Act, sec. 566, relating to authority to engage in debt buybacks or sales. 518 All sections in chapter 7 are misnumbered, as enacted by the International Development and Finance Act of 1989 (Public Law 101-240; 103 Stat. 2521). Reference should read "section