of the Inspector General of the Agency for International Development and the remaining amount for the fiscal year is authorized for other necessary operating expenses of that agency 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 agency. (b) Amounts appropriated under this section are authorized to remain available until expended.

Sec. 668.1221 Report on Korea. * * * [Repealed-1981]

Sec. 669.1222 Nuclear Enrichment Transfers. *** [Repealed-1994]

Sec. 670.1223 Nuclear Reprocessing Transfers, Illegal Exports for Nuclear Explosive Devices, Transfers of Nuclear Explosive Devices, and Nuclear Detonations. *** [Repealed-1994]

Sec. 671.1224 Notification of Program Changes. * * * [Redesignated-1978]

1221 Sec. 668, added by sec. 411 of Public Law 94-329 (90 Stat. 760), was repealed by sec. 734(a)(1) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1560). This report, required on an annual basis from 1976 through 1981, included information on progress made by Korea to modernize its armed forces, on the U.S. role in mutual security efforts in Korea, and on prospects for or implementation of phased reduction of U.S. Armed Forces assigned to duty in Korea. Similar information is now required under sec. 25(a)(9) of the Arms Export Control Act.

1222 Formerly at 22 U.S.C. 2429. Sec. 669, popularly referred to as the Symington amendment, was added by sec. 305 of Public Law 94-329, amended and restated by sec. 12 of the International Security Assistance Act of 1977 (Public Law 95-92; 91 Stat. 620), further amended by secs. 10(b)(4) and 12 of the International Security Assistance Act of 1978 (Public Law 95-384; 92 Stat. 735, 737); further amended by sec. 737(b) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1562).

Secs. 669 and 670 were repealed by sec. 826(b) of the Nuclear Proliferation Prevention Act of 1994 (title VIII of the Foreign Relations Authorization Act; Public Law 103-236; 108 Stat. 519), after section 826(a) of that Act enacted two new sections into the Arms Export Control Act (secs. 101 and 102; at 22 U.S.C. 2799aa and 2799aa-1) to state nuclear nonproliferation controls.

1223 Formerly at 22 U.S.C. 2429a. Sec. 670, popularly referred to as the Glenn amendment, was added by sec. 12 of Public Law 95-92 (91 Stat. 620); amended and restated by sec. 737(c) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1562); and further amended by sec. 1204 of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 277).

Secs. 669 and 670 were repealed by sec. 826(b) of the Nuclear Proliferation Prevention Act of 1994 (title VIII of the Foreign Relations Authorization Act; Public Law 103-236; 108 Stat. 519), after section 826(a) of that Act enacted two new sections into the Arms Export Control Act (secs. 101 and 102; at 22 U.S.C. 2799aa and 2799aa-1) to state nuclear nonproliferation controls.

1224 Sec. 671, added by Public Law 95-88 (91 Stat. 543), was redesignated as sec. 634A of this Act by sec. 502(b) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 959).

PART IV-ENTERPRISE FOR THE AMERICAS
INITIATIVE 1225

SEC. 701.1226 PURPOSE.

The purpose of this part is to encourage and support improvement in the lives of the people of Latin America and the Caribbean through market-oriented reforms and economic growth with interrelated actions to promote debt reduction, investment reforms, community based conservation, and sustainable use of the environment, and child survival and child development. The Facility will support these objectives through administration of debt reduction operations under this part for those countries with democratically elected governments that meet investment reforms and other policy

conditions.

1225 Sec. 602(a) of the Jobs Through Exports Act of 1992 (Public Law 102-549; 106 Stat. 3664) added part IV-Enterprise for the Americas Initiative, secs. 701-710. See also footnote at part V-Debt Reduction for Developing Countries with Tropical Forests.

See also Executive Order 13345 of July 8, 2004 (69 F.R. 41901), in which the President assigned foreign affairs functions, requirements under the Enterprise for the Americas Initiative, and the Tropical Forest Conservation Act, under parts IV and V, to members of his cabinet, in Legislation on Foreign Relations Through 2004, vol. I-B.

Sec. 401 of the FA Act of 1962 (Public Law 87-565) repealed former part IV, relating to amendments to other laws.

Sec. 566 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2005 (Public Law 108-447; 118 Stat. 2809) provided the following:

"AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES

"SEC. 566. (a) LOANS ELIGIBLE FOR SALE, REDUCTION, OR CANCELLATION. —

"(1) AUTHORITY TO SELL, REDUCE, OR CANCEL CERTAIN LOANS.-Notwithstanding any other provision of law, the President may, in accordance with this section, sell to any eligible purchaser any concessional loan or portion thereof made before January 1, 1995, pursuant to the Foreign Assistance Act of 1961, to the government of any eligible country as defined in section 702(6) of that Act or on receipt of payment from an eligible purchaser, reduce or cancel such loan or portion thereof, only for the purpose of facilitating

"(A) debt-for-equity swaps, debt-for-development swaps, or debt-for-nature swaps; or "(B) a debt buyback by an eligible country of its own qualified debt, only if the eligible country uses an additional amount of the local currency of the eligible country, equal to not less than 40 percent of the price paid for such debt by such eligible country, or the difference between the price paid for such debt and the face value of such debt, to support activities that link conservation and sustainable use of natural resources with local community development, and child survival and other child development, in a manner consistent with sections 707 through 710 of the Foreign Assistance Act of 1961, if the sale, reduction, or cancellation would not contravene any term or condition of any prior agreement relating to such loan.

"(2) TERMS AND CONDITIONS.-Notwithstanding any other provision of law, the President shall, in accordance with this section, establish the terms and conditions under which loans may be sold, reduced, or canceled pursuant to this section.

"(3) ADMINISTRATION.-The Facility, as defined in section 702(8) of the Foreign Assistance Act of 1961, shall notify the administrator of the agency primarily responsible for administering part I of the Foreign Assistance Act of 1961 of purchasers that the President has determined to be eligible, and shall direct such agency to carry out the sale, reduction, or cancellation of a loan pursuant to this section. Such agency shall make adjustment in its accounts to reflect the sale, reduction, or cancellation.

"(4) LIMITATION.-The authorities of this subsection shall be available only to the extent that appropriations for the cost of the modification, as defined in section 502 of the Congressional Budget Act of 1974, are made in advance.

"(b) DEPOSIT OF PROCEEDS.-The proceeds from the sale, reduction, or cancellation of any loan sold, reduced, or canceled pursuant to this section shall be deposited in the United States Government account or accounts established for the repayment of such loan.

"(c) ELIGIBLE PURCHASERS.-A loan may be sold pursuant to subsection (a)(1)(A) only to a purchaser who presents plans satisfactory to the President for using the loan for the purpose of engaging in debt-for-equity swaps, debt-for-development swaps, or debt-for-nature swaps.

(d) DEBTOR CONSULTATIONS. -Before the sale to any eligible purchaser, or any reduction or cancellation pursuant to this section, of any loan made to an eligible country, the President should consult with the country concerning the amount of loans to be sold, reduced, or canceled and their uses for debt-for-equity swaps, debt-for-development swaps, or debt-for-nature swaps. "(e) AVAILABILITY OF FUNDS.-The authority provided by subsection (a) may be used only with regard to funds appropriated by this Act under the heading 'Debt Restructuring'.".

1226 22 U.S.C. 2430.

SEC. 702.1227 DEFINITIONS.

For purposes of this part

(1) the term "administering body" means the entity provided for in section 708(c);

(2) the term "Americas Framework Agreement" means an Americas Framework Agreement provided for in section 708; (3) the term "Americas Fund" means an Enterprise for the Americas Fund provided for in section 707(a);

(4) the term "appropriate congressional committees" means the Committee on Foreign Affairs 1228 and the Committee on Appropriations of the House of Representatives and the Committee on Foreign Relations and the Committee on Appropriations of the Senate;

(5) the term "beneficiary country" means an eligible country with respect to which the authority of section 704(a)(1) is exercised;

(6) the term "eligible country" means a country designated by the President in accordance with section 703;

(7) the term "Enterprise for the Americas Board" or "Board" means the board established by section 610 of the Agricultural Trade Development and Assistance Act of 1954; and

(8) the term "Facility" means the Enterprise for the Americas Facility established in the Department of the Treasury by section 601 of that Act.

SEC. 703.1229 ELIGIBILITY FOR BENEFITS.

(a) REQUIREMENTS.-To be eligible for benefits from the Facility under this part, a country must be a Latin American or Caribbean country

(1) whose government is democratically elected;

(2) whose government has not repeatedly provided support for acts of international terrorism;

(3) whose government is not failing to cooperate on international narcotics control matters;

(4) whose government (including its military or other security forces) does not engage in a consistent pattern of gross violations of internationally recognized human rights;

(5) that has in effect, has received approval for, or, as appropriate in exceptional circumstances, is making significant progress toward

(A) an International Monetary Fund standby arrangement, extended Fund arrangement, or an arrangement under the structural adjustment facility or enhanced structural adjustment facility, or in exceptional circumstances, a Fund monitored program or its equivalent, unless the President determines (after consultation with the Enterprise for the Americas Board) that such an arrangement or program (or its equivalent) could reasonably be expected to have significant adverse social or environmental effects; and

1227 22 U.S.C. 2430a.

1228 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.

1229 22 U.S.C. 2430b.

(B) as appropriate, structural or sectoral adjustment loans from the International Bank for Reconstruction and Development or the International Development Association, unless the President determines (after consultation with the Enterprise for the Americas Board) that the resulting adjustment requirements could reasonably be expected to have significant adverse social or environmental effects;

(6) has put in place major investment reforms in conjunction with an Inter-American Development Bank loan or otherwise is implementing, or is making significant progress toward, an open investment regime; and

(7) if appropriate, has agreed with its commercial bank lenders on a satisfactory financing program, including, as appropriate, debt or debt service reduction.

(b) ELIGIBILITY DETERMINATIONS.-Consistent with subsection (a), the President shall determine whether a country is eligible to receive benefits under this part. The President shall notify the appropriate congressional committees of his intention to designate a country as an eligible country at least 15 days in advance of any formal determination.

SEC. 704.1230 REDUCTION OF CERTAIN DEBT.

(a) AUTHORITY TO REDUCE DEBT. —

(1) AUTHORITY.-The President may reduce the amount owed to the United States (or any agency of the United States) that is outstanding as of January 1, 1992, as a result of concessional loans made to an eligible country by the United States under part I of this Act, chapter 4 of part II of this Act, or predecessor foreign economic assistance legislation.

(2) APPROPRIATIONS REQUIREMENT.-The authority provided by this section may be exercised only in such amounts or to such extent as is provided in advance by appropriations Acts. (3) CERTAIN PROHIBITIONS INAPPLICABLE. (A) A reduction of debt pursuant to this section shall not be considered assistance for purposes of any provision of law limiting assistance to a country.

(B) The authority of this section may be exercised notwithstanding section 620(r) of this Act or section 321 of the International Development and Food Assistance Act of 1975. (b) IMPLEMENTATION OF DEBT REDUCTION. —

(1) IN GENERAL.-Any debt reduction pursuant to subsection (a) shall be accomplished at the direction of the Facility by the exchange of a new obligation for obligations outstanding as of the date specified in subsection (a)(1).

(2) EXCHANGE OF OBLIGATIONS.-The Facility shall notify the agency primarily responsible for administering part I of this Act of the agreement with an eligible country to exchange a

1230 22 U.S.C. 2430c. Sec. 594(a) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1993 (Public Law 102-391; 106 Stat. 1692), enacted authorization for debt reduction as chapter 12, sec. 499 of this Act. That enactment, however, was repealed by sec. 602(b) of Public Law 102-549 (106 Stat. 3669), which also provided:

"Any exercise of the authorities provided in that chapter prior to its repeal by this subsection shall be deemed to be an exercise of the authorities of part IV of the Foreign Assistance Act of 1961 (as enacted by subsection (a) of this section) and shall be carried out, after the enactment of this section, in accordance with that part.".

new obligation for outstanding obligations pursuant to this subsection. At the direction of the Facility, the old obligations shall be canceled and a new debt obligation for the country shall be established, and the agency primarily responsible for administering part I of this Act shall make an adjustment in its accounts to reflect the debt reduction.

SEC. 705.1231 REPAYMENT OF PRINCIPAL.

(a) CURRENCY OF PAYMENT.-The principal amount of each new obligation issued pursuant to section 704(b) shall be repaid in United States dollars.

(b) DEPOSIT OF PAYMENTS.-Principal repayments of new obligations shall be deposited in the United States Government account established for principal repayments of the obligations for which those obligations were exchanged.

SEC. 706.1232 INTEREST ON NEW OBLIGATIONS.

(a) RATE OF INTEREST.-New obligations issued by a beneficiary country pursuant to section 704(b) shall bear interest at a concessional rate.

(b) CURRENCY OF PAYMENT; DEPOSITS.

(1) LOCAL CURRENCY.-If the beneficiary country has entered into an Americas Framework Agreement, interest shall be paid in the local currency of the beneficiary country and deposited in an Americas Fund. Such interest shall be the property of the beneficiary country, until such time as it is disbursed pursuant to section 707(d). Such local currencies shall be used for the purposes specified in the Americas Framework Agreement. (2) UNITED STATES DOLLARS.-If the beneficiary country has not entered into an Americas Framework Agreement, interest shall be paid in United States dollars and deposited in the United States Government account established for interest payments of the obligations for which the new obligations were exchanged.

(c) INTEREST ALREADY PAID.-If a beneficiary country enters into an Americas Framework Agreement subsequent to the date on which interest first became due on the newly issued obligation, any interest already paid on such new obligation shall not be redeposited into the Americas Fund established for that country.

SEC. 707.1233 ENTERPRISE FOR THE AMERICAS FUNDS.

(a) ESTABLISHMENT. - Each beneficiary country that enters into an Americas Framework Agreement shall be required to establish an Enterprise for the Americas Fund to receive payments in local currency pursuant to section 706(b)(1).

1231 22 U.S.C. 2430d.

1232 22 U.S.C. 2430e.

1233 22 U.S.C. 2430f. Title IV of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2005 (division D of Public Law 108-447; 118 Stat. 2809), provided the following:

"CONTRIBUTION TO THE ENTERPRISE FOR THE AMERICAS MULTILATERAL INVESTMENT FUND "For payment to the Enterprise for the Americas Multilateral Investment Fund by the Secretary of the Treasury, for the United States contribution to the fund, $11,000,000, to remain available until expended.".