Pub.L. 104-108 To designate the Federal building located at 1221 Nevin Avenue in Richmond, California, as the ``Frank Hagel Federal Building''. <> ...

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    Sec. 525. Prior to providing excess Department of Defense articles 
in accordance with section 516(a) of the Foreign Assistance Act of 1961, 
the Department of Defense shall notify the Committees on Appropriations 
to the same extent and under the same conditions as are other committees 
pursuant to subsection (c) of that section: Provided, That before 
issuing a letter of offer to sell excess defense articles under the Arms 
Export Control Act, the Department of Defense shall notify the 
Committees on Appropriations in accordance with the regular notification 
procedures of such Committees: Provided further, That such Committees 
shall also be informed of the original acquisition cost of such defense 
articles.

                        authorization requirement

    Sec. 526. Funds appropriated by this Act may be obligated and 
expended notwithstanding section 10 of Public Law 91-672 and section 15 
of the State Department Basic Authorities Act of 1956.

    opposition to assistance to terrorist countries by international 
                         financial institutions

    Sec. 527. (a) Instructions for United States Executive Directors.--
The Secretary of the Treasury shall instruct the

[[Page 110 STAT. 730]]

United States Executive Director of each international financial 
institution designated in subsection (b), and the Administrator of the 
Agency for International Development shall instruct the United States 
Executive Director of the International Fund for Agriculture 
Development, to use the voice and vote of the United States to oppose 
any loan or other use of the funds of the respective institution to or 
for a country for which the Secretary of State has made a determination 
under section 6(j) of the Export Administration Act of 1979.
    (b) Definition.--For purposes of this section, the term 
``international financial institution'' includes--
            (1) the International Bank for Reconstruction and 
        Development, the International Development Association, and the 
        International Monetary Fund; and
            (2) wherever applicable, the Inter-American Development 
        Bank, the Asian Development Bank, the African Development Bank, 
        the African Development Fund, and the European Bank for 
        Reconstruction and Development.

       prohibition on bilateral assistance to terrorist countries

    Sec. 527A. (a) Notwithstanding any other provision of law, funds 
appropriated for bilateral assistance under any heading of this Act and 
funds appropriated under any such heading in a provision of law enacted 
prior to enactment of this Act, shall not be made available to any 
country which the President determines--
            (1) grants sanctuary from prosecution to any individual or 
        group which has committed an act of international terrorism, or
            (2) otherwise supports international terrorism.

    (b) The President may waive the application of subsection (a) to a 
country if the President determines that national security or 
humanitarian reasons justify such waiver. <<NOTE: President. Federal 
Register, publication.>> The President shall publish each waiver in the 
Federal Register and, at least fifteen days before the waiver takes 
effect, shall notify the Committees on Appropriations of the waiver 
(including the justification for the waiver) in accordance with the 
regular notification procedures of the Committees on Appropriations.

                 commercial leasing of defense articles

    Sec. 528. <<NOTE: 22 USC 2763 note.>> Notwithstanding any other 
provision of law, and subject to the regular notification requirements 
of the Committees on Appropriations, the authority of section 23(a) of 
the Arms Export Control Act may be used to provide financing to Israel, 
Egypt and NATO and major non-NATO allies for the procurement by leasing 
(including leasing with an option to purchase) of defense articles from 
United States commercial suppliers, not including Major Defense 
Equipment (other than helicopters and other types of aircraft having 
possible civilian application), if the President determines that there 
are compelling foreign policy or national security reasons for those 
defense articles being provided by commercial lease rather than by 
government-to-government sale under such Act.

[[Page 110 STAT. 731]]

                          competitive insurance

    Sec. 528A. All Agency for International Development contracts and 
solicitations, and subcontracts entered into under such contracts, shall 
include a clause requiring that United States insurance companies have a 
fair opportunity to bid for insurance when such insurance is necessary 
or appropriate.

                   stingers in the persian gulf region

    Sec. 529. Except as provided in section 581 of the Foreign 
Operations, Export Financing, and Related Programs Appropriations Act, 
1990, the United States may not sell or otherwise make available any 
Stingers to any country bordering the Persian Gulf under the Arms Export 
Control Act or chapter 2 of part II of the Foreign Assistance Act of 
1961.

                          debt-for-development

    Sec. 530. In order to enhance the continued participation of 
nongovernmental organizations in economic assistance activities under 
the Foreign Assistance Act of 1961, including endowments, debt-for-
development and debt-for-nature exchanges, a nongovernmental 
organization which is a grantee or contractor of the Agency for 
International Development may place in interest bearing accounts funds 
made available under this Act or prior Acts or local currencies which 
accrue to that organization as a result of economic assistance provided 
under title II of this Act and any interest earned on such investment 
may be used for the purpose for which the assistance was provided to 
that organization.

competitive pricing for sales of defense articles <<NOTE: contracts.>> 

    Sec. 531A. (a) Costing Basis.--Section 22 of the Arms Export Control 
Act (22 U.S.C. 2762) is amended by adding at the end the following:
    ``(d) Competitive Pricing.--Procurement contracts made in 
implementation of sales under this section for defense articles and 
defense services wholly paid for from funds made available on a 
nonrepayable basis shall be priced on the same costing basis with regard 
to profit, overhead, independent research and development, bid and 
proposal, and other costing elements, as is applicable to procurements 
of like items purchased by the Department of Defense for its own use.''.
    (b) <<NOTE: 22 USC 2762 note.>> Effective Date and Implementing 
Regulations.--Section 22(d) of the Arms Export Control Act, as added by 
subsection (a)--
            (1) shall take effect on the 60th day following the date of 
        the enactment of this Act;
            (2) shall be applicable only to contracts made in 
        implementation of sales made after such effective date; and
            (3) shall be implemented by revised procurement regulations, 
        which shall be issued prior to such effective date.

    (c) <<NOTE: 22 USC 2762 note.>> Direct Costs Allowable.--Direct 
costs associated with meeting a foreign customer's additional or unique 
requirements will continue to be allowable under such contracts. 
Loadings applicable to such direct costs shall be permitted at the same 
rates applicable to procurement of like items purchased by the 
Department of Defense for its own use.

[[Page 110 STAT. 732]]

                     stockpiles of defense articles

    Sec. 531B. (a) Limitation on Value of Additions.--Section 514(b)(1) 
of the Foreign Assistance Act of 1961 (22 U.S.C. 2321h(b)(1)) is amended 
by inserting ``or in the implementation of agreements with Israel'' 
after ``North Atlantic Treaty Organization''.
    (b) Additions in Fiscal Years 1996 and 1997.--Section 514(b)(2) of 
such Act (22 U.S.C. 2321h(b)(2)) is amended to read as follows:
    ``(2)(A) The value of such additions to stockpiles of defense 
articles in foreign countries shall not exceed $50,000,000 for each of 
the fiscal years 1996 and 1997.
    ``(B) Of the amount specified in subparagraph (A) for each of the 
fiscal years 1996 and 1997, not more than $40,000,000 may be made 
available for stockpiles in the Republic of Korea and not more than 
$10,000,000 may be made available for stockpiles in Thailand.''.
    (c) Location of Stockpiles of Defense Authorities.--Section 514(c) 
of such Act (22 U.S.C. 2321h(c)) is amended to read as follows:
    ``(c) Location of Stockpiles of Defense Articles.--
            ``(1) Limitation.--Except as provided in paragraph (2), no 
        stockpile of defense articles may be located outside the 
        boundaries of a United States military base or a military base 
        used primarily by the United States.
            ``(2) Exceptions.--Paragraph (1) shall not apply with 
        respect to stockpiles of defense articles located in the 
        Republic of Korea, Thailand, any country that is a member of the 
        North Atlantic Treaty Organization, any country that is a major 
        non-NATO ally, or any other country the President may designate. 
        At least 15 days before designating a country 
        pursuant <<NOTE: President.>> to the last clause of the 
        preceding sentence, the President shall notify the congressional 
        committees specified in section 634A(a) in accordance with the 
        procedures applicable to reprogramming notifications under that 
        section.''.

                            separate accounts

    Sec. 532. <<NOTE: 22 USC 2359 note.>> (a) Separate Accounts for 
Local Currencies.--(1) If assistance is furnished to the government of a 
foreign country under chapters 1 and 10 of part I or chapter 4 of part 
II of the Foreign Assistance Act of 1961 under agreements which result 
in the generation of local currencies of that country, the Administrator 
of the Agency for International Development shall--
            (A) require that local currencies be deposited in a separate 
        account established by that government;
            (B) <<NOTE: Contracts.>> enter into an agreement with that 
        government which sets forth--
                    (i) the amount of the local currencies to be 
                generated, and
                    (ii) the terms and conditions under which the 
                currencies so deposited may be utilized, consistent with 
                this section; and
            (C) establish by agreement with that government the 
        responsibilities of the Agency for International Development and 
        that government to monitor and account for deposits into and 
        disbursements from the separate account.

[[Page 110 STAT. 733]]

    (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 chapters 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 Agency for International 
Development shall take all appropriate 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 chapters 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) Conforming Amendments.--The provisions of this subsection shall 
supersede the tenth and eleventh provisos contained under the heading 
``Sub-Saharan Africa, Development Assistance'' as included in the 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1989 and sections 531(d) and 609 of the Foreign 
Assistance Act of 1961.
    (b) Separate Accounts for Cash Transfers.--(1) If assistance is made 
available to the government of a foreign country, under chapters 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 (H. Report No. 98-
1159).
    (3) <<NOTE: President.>> Notification.--At least fifteen 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 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.

[[Page 110 STAT. 734]]

  compensation for united states executive directors to international 
                         financial institutions

    Sec. 533. (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. 534. <<NOTE: 50 USC 1701 note.>> (a) Denial of Assistance.--
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, Serbia or 
Montenegro unless the President determines and so certifies to the 
Congress that--
            (1) such assistance is in the national interest of the 
        United States;
            (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.

    (b) Import Sanctions.--If the President considers that the taking of 
such action would promote the effectiveness of the economic sanctions of 

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