estine Liberation Organization or for projects whose purpose is to provide benefits to the Palestine Liberation Organization or entities associated with it.349

(b) The Secretary of State

(1) shall review, at least annually, the budgets and accounts of all international organizations receiving payments of any funds authorized to be appropriated by this chapter; and

(2) shall report to the appropriate committees of the Congress the amounts of funds expended by each such organization for the purposes described in subsection (a) and the amount contributed by the United States to each such organization.

(c) 350 The limitations of subsection (a) shall not apply to contributions to the International Atomic Energy Agency or the United Nations Children's Fund (UNICEF).

Chapter 4-Supporting Assistance 351 [Repealed-1972]

Chapter 5-Contingencies 352

Sec. 451.353 Contingencies.352-(a) 354 (1) Notwithstanding any other provision of law, the President is authorized to use 355 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,356 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

"(B) such programs address unforeseen urgent humanitarian concerns, or

"(C) a democratically elected government in Burma has agreed to such programs.”. 349 Sec. 3 of the Middle East Peace Facilitation Act of 1993, as amended (Public Law 103125; 107 Stat. 1309), authorized the President to suspend sec. 307 of this Act as it applies to the P.L.O. or entities associated with it if certain conditions are met and the President so certifies and consults with relevant congressional committees. The President issued such a certification 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), and extended until July 1, 1995, by Presidential Determination No. 95-12 of December 31, 1994 (60 F.R. 2673).

350 Sec. 431(aX2) of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103-236; 108 Stat. 459) added subsec. (c).

351 Sec. 202(b) of the FA Act of 1971 repealed chapter 4 of part I. This subject matter is now covered under chapter 4 of part II of this Act, Economic Support Fund.

352 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 "Contingency 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".

353 22 U.S.C. 2261. Sec. 451 was amended by sec. 28(c) of the FA Act of 1974. 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).".

354 Subsec. (a) was amended and restated by scc. 2 of the International Security Assistance Act of 1979 (Public Law 96–92; 93 Stat. 701).

365 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.

366 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".

88-543 O

not be used to authorize the use of more than $25,000,000 during any fiscal year.357

(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.358

(b) 359 *** [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.360 Chapter 6-Central America Democracy, Peace, and Development Initiative 361

Sec. 461.361,362 Statement of Policy. (a) The Congress finds that—

(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;

367 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.". However, for fiscal year 1994, see box note above.

368 The Secretary of State authorized, pursuant to section 451 and section 1-201 of Executive Order 12163, "notwithstanding any other provision of law, the use in fiscal year 1994 of $1.0 million in funds made available under Chapter 3 of Part I of the Act for assistance to the UN Voluntary Fund for Victims of Torture." (Department of State Public Notice 2089 of September 20, 1994; 59 F.R. 53508; October 24, 1994).

369 Subsec. (b), which had required a quarterly report from the President concerning the programing and obligation of funds under this section, was repealed by sec. 734(aX1) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1560). 360 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).

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

362 22 U.S.C. 2271.

(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 negotia

tions

(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. 462,361,363 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. 463,361,364 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

363 22 U.S.C. 2272. 364 22 U.S.C. 2273.

(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. 464.361,365 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 (D) and (E) 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

366 22 U.S.C. 2274.

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 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 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 shall be full and formal consultations with and review by those committees in accordance with procedures applicable reprogramming notifications pursuant to section 634A of this Act. Sec. 465,361,366 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.

to

(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.

366 22 U.S.C. 2275.