Full text of Budget of the United States Government - Appendix : Fiscal Year 1998 : Funds Appropriated to the President

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FUNDS APPROPRIATED TO THE PRESIDENT
Program and Financing (in millions of dollars)

UNANTICIPATED NEEDS

General and special funds:

1997 est.

1998 est.

21.40

UNANTICIPATED NEEDS
For expenses necessary to enable the President to meet unanticipated
needs, in furtherance of the national interest, security, or defense
which may arise at home or abroad during the current fiscal year;
$1,000,000.
Program and Financing (in millions of dollars)
1996 actual

Identification code 11–0037–0–1–802

1996 actual

Identification code 11–0033–0–1–453

Federal Funds

23.90

40.00
40.79
1997 est.

4 ................... ...................
–4 ................... ...................

Total budgetary resources available for obligation ................... ................... ...................
New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................
Contingent appropriation not available ........................ ................... ...................

5,800
–5,800

1998 est.

43.00
00.01

Obligations by program activity:
Reserved for future allocation ....................................... ................... ...................
Total obligations (object class 92.0) ........................ ................... ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ........................................................................... ................... ................... ...................

10.00

Appropriation (total) .................................................. ................... ................... ...................

22.00
22.30
23.90
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
Unobligated balance expiring ........................................

1 ...................
1
–1 ................... ...................

Total budgetary resources available for obligation ................... ...................
New obligations ............................................................. ................... ...................

1
–1

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

1 ...................

73.10
73.20

1
–1

86.90

Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
1 ...................
Outlays ........................................................................... ................... ...................

1
1

These funds will enable the President to meet unanticipated
needs in furtherance of the national interest, security, or defense.

EMERGENCY REQUIREMENTS
øUNANTICIPATED NEEDS¿

FOR

øNATURAL¿ DISASTERS

For emergency requirements of the disaster relief activities of the
Federal Emergency Management Agency, the wildland firefighting activities of the Departments of Agriculture and the Interior, the flood
control and emergency conservation activities of the Department of
Agriculture, the emergency highways activities of the Department of
Transportation, the disaster loan program of the Small Business Administration, and the flood control and coastal emergency activities
of the Corps of Engineers, $5,800,000,000, to remain available until
expended: Provided, That such amount is designated by Congress
as an emergency requirement pursuant to section 251(b)(2)(D)(i) of
the Balanced Budget and Emergency Deficit Control Act of 1985,
as amended, which shall be available only in such amounts as the
President designates as emergency requirements pursuant to the Act:
Provided further, That amounts so designated by the President shall
not be available until 15 days after the President notifies the Congress
of such designation: Provided further, That amounts made available
under this head may be transferred to the Federal agency authorized
to conduct the programs and activities for which the funds are made
available.

This budget proposes the establishment of a contingent
emergency reserve to fund unanticipated needs arising from
both natural and man-made disasters. The amounts requested
for this fund are based on the average emergency budget
authority adjustment made to the discretionary spending caps
established under the Budget Enforcement Act of 1990 (BEA)
over the seven year period from 1991–1997. This fund is
to be used by the Departments of Agriculture, Interior, and
Transportation, the Federal Emergency Management Agency,
the Small Business Administration, and the Army Corps of
Engineers to cover costs that exceed budget assumptions for
these types of requirements.
The proposed contingency fund would allow for the use
of funds among the disaster assistance programs specified,
based upon actual need. This flexibility would allow the most
appropriate program available to the government to respond
to a particular natural or other disaster. The release of any
amount of this fund could not occur until 15 days after the
President has officially notified the Congress. This built in
constraint is designed to give Congress appropriate time to
respond, and at the same time not impede the Government’s
ability to assist communities stricken by a natural or other
type of disaster.
Congress has provided $1.7 billion to cover natural and
other disasters in 1997 ($1.3 billion in emergency spending,
and $0.4 billion in contingent emergency funding). This budget requests $5.8 billion in contingent funding for 1998—the
average emergency spending under the BEA. The contingency
request for future years will be based on average emergency
funding used under the BEA.
The BEA provided that the discretionary spending caps
may be increased for items designated by both the President
and the Congress as an ‘‘emergency requirement.’’ The following displays the increases, to the discretionary spending caps,
resulting from the designation of emergency requirements.
ADJUSTMENTS TO DISCRETIONARY SPENDING CAPS FOR
EMERGENCIES 1
[In billions of dollars]

1991

Budget Authority .................

1992

1993

1994

1995

1996

1997

1998

1991–
1997
Average

0.9

8.3

4.6

12.2

7.7

5.1

1.7

........

5.8

UNANTICIPATED NEEDS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
EMERGENCY REQUIREMENTS—Continued
øUNANTICIPATED NEEDS¿

FOR

øNATURAL¿ DISASTERS—Continued

ADJUSTMENTS TO DISCRETIONARY SPENDING CAPS FOR
EMERGENCIES 1—Continued
[In billions of dollars]

1991

Outlays ............

1992

1993

1994

1995

1996

1997

1998

1991–
1997
Average

1.1

1.8

5.4

9.0

10.1

6.4

5.3

1.7

4.9

1 Data

for FY 1997 includes $0.4 billion in contingent emergency budget authority that
has not yet resulted in cap adjustments.

Areas, øof which $3,000,000 shall be used for a newly designated
High Intensity Drug Trafficking Area in Lake County, Indiana; of
which $6,000,000 shall be used for a newly designated High Intensity
Drug Trafficking Area for the Gulf Coast States of Louisiana, Alabama, and Mississippi; of which $8,000,000 shall be used for a newly
designated High Intensity Drug Trafficking Area dedicated to combating methamphetamine use, production and trafficking in a five State
area including Iowa, Missouri, Nebraska, South Dakota, and Kansas;
of which $3,000,000 shall be used for a newly designated High Intensity Drug Trafficking Area in the State of Colorado; of which
$3,000,000 shall be used for a newly designated High Intensity Drug
Trafficking Area in the Pacific Northwest; of the total amount appropriated, including transferred funds,¿ of which no less than
$71,000,000 shall be transferred to State and local entities for drug
control activities, which shall be obligated within 120 days of the
date of enactment of this act and up to $69,207,000 may be transferred to Federal agencies and departments at a rate to be determined by the Directorø: Provided, That the funds made available
under this head shall be obligated within 90 days of the date of
enactment of this Act¿. (Executive Office Appropriations Act, 1997.)

The BEA does not specify a definition for ‘‘emergency requirement.’’ The OMB June 1991 ‘‘Report on Costs of Domestic and International Emergencies and on the Threats Posed
by the Kuwaiti Oil Fires,’’ required by P.L. 102–55, defines
an emergency expenditure as one that includes the following
elements:
• necessary expenditure—an essential or vital expenditure;
not one that is merely useful or beneficial;
• sudden—quickly coming into being, not building up over
time;
• urgent—pressing and compelling need requiring immediate action;
• unforeseen—not predictable or seen beforehand as a coming need (an emergency that is part of an aggregate level
of anticipated emergencies, particularly when normally
estimated in advance, would not be ‘‘unforeseen’’); and,
• not permanent—the need is temporary in nature.
The Federal Government has historically provided most disaster relief funds for domestic emergencies through: FEMA’s
disaster relief fund; the SBA disaster loan program; USDA’s
wildland fire management account; Interior’s wildland fire
management account; Transportation’s Federal-Aid Highways
emergency relief program; and, the Corps of Engineers flood
control and coastal emergencies program. Funding for these
programs has been generally provided by regular appropriations for base non-emergency and some emergency activities,
and, when necessary, through supplemental appropriations
to address additional unforeseen requirements. This budget
includes requests for appropriations for the base activities
which is the higher of the 1997 enacted level, or the 10year average of non-emergency appropriations for each of the
disaster assistance programs. The Federal-Aid Highway emergency relief program receives $100 million annually in mandatory funds and only relies on discretionary supplementals
when the need arises.

23.90
23.95
24.40

1998 Non-Emergency Appropriations Requests for Disaster Assistance Programs

86.90
86.93

[Budget authority in millions of dollars]

Department of Agriculture firefighting ..................................................................................
Department of Interior firefighting ........................................................................................
Federal Emergency Management Agency disaster relief .......................................................
Small Business Administration disaster loan program .........................................................
Department of Transportation Federal-Aid Highways emergency relief ................................
Corps of Engineers flood control and coastal emergencies ..................................................
Total Non-Emergency Appropriations Requests ........................................................

$211
$126
$320
$173
[$100]
$14
$844

FEDERAL DRUG CONTROL PROGRAMS
Federal Funds
General and special funds:
HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM
ø(INCLUDING

TRANSFER OF FUNDS)¿

For necessary expenses of the Office of National Drug Control Policy’s High Intensity Drug Trafficking Areas Program, ø$127,102,000¿
$140,207,000 for drug control activities consistent with the approved
strategy for each of the designated High Intensity Drug Trafficking

Program and Financing (in millions of dollars)
Identification code 11–1070–0–1–802

1996 actual

1997 est.

1998 est.

00.02

Obligations by program activity:
Grants to State and local law enforcement agencies

10.00

Total obligations (object class 41.0) ........................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ................................................... ................... ...................
22.00 New budget authority (gross) ........................................
63
111

40
140

21.40

40.00
41.00
42.00

Total budgetary resources available for obligation
63
New obligations .............................................................
–64
Unobligated balance available, end of year:
Uninvested balance ................................................... ...................
New budget authority (gross), detail:
Appropriation ..................................................................
103
Transferred to other accounts .......................................
–40
Transferred from other accounts ................................... ...................

111
–71

180
–71

107

127
140
–29 ...................
13 ...................

43.00

Appropriation (total) ..................................................

111

140

70.00

Total new budget authority (gross) ..........................

111

140

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

57
64
–48

73
71
–75

69
71
–71

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

12
36

23
52

23
48

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

64
48

111
75

140
71

72.40

The High Intensity Drug Trafficking Areas (HIDTA) Program was established by the Anti-Drug Abuse Act of 1988
to provide assistance to Federal and State and local law enforcement entities operating in those areas most adversely
affected by drug trafficking. Since January, 1990, counties
in 15 areas have been designated as HIDTAs: New York;
Los Angeles; Miami; Houston; Baltimore/Washington, DC;
Puerto Rico/Virgin Islands; Southwest Border; Chicago; Atlanta; Philadelphia/Camden; Gulf Coast (Alabama, Louisiana,
and Mississippi); Lake County (Indiana); Midwest (Iowa, Kansas, Missouri, Nebraska, and South Dakota—focused on methamphetamine); Pacific Northwest (Washington Cascades); and
Rocky Mountains (Colorado, Utah, and Wyoming).

INTERNATIONAL SECURITY ASSISTANCE
Federal Funds

FUNDS APPROPRIATED TO THE PRESIDENT

Funds made available under the HIDTA program are disbursed at the discretion of the Director of the Office of National Drug Control Policy for joint local, State, and Federal
initiatives.
SPECIAL FORFEITURE FUND
(INCLUDING

TRANSFER OF FUNDS)

For activities to support a national media campaign for youth,
and other purposes, authorized by Public Law 100–690, as amended,
ø$112,900,000,¿ $175,000,000, øof which $42,000,000 shall be transferred to the United States Customs Service for the conversion of
one P–3AEW aircraft for the air interdiction program; of which
$10,000,000 shall be available for transfer to other Federal agencies
for methamphetamine reduction efforts; and of which $60,900,000
shall be available to the Director of the National Drug Control Policy
for enhancing other drug control activities, including transfer to other
Federal agencies: Provided, That of the amount provided,
$112,900,000 is designated by Congress as an emergency requirement
pursuant to section 251(b)(2)(D)(I) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended to become available
only upon receipt by the Congress of a supplemental request from
the President requesting such designation.¿ to remain available until
expended: Provided, That such funds may be transferred to other
Federal departments and agencies to carry out such activities. (Treasury, Postal Service and General Government Appropriations Act,
1997.)
Unavailable Collections (in millions of dollars)
Identification code 11–5001–0–2–802

1996 actual

1997 est.

1998 est.

Balance, start of year:
01.99 Balance, start of year ....................................................
Receipts:
02.02 Forfeited cash and proceeds from sale of forfeited
property ......................................................................

27 ...................

04.00
07.99

24
24

51
51

Total: Balances and collections ....................................
Total balance, end of year ............................................

51
51

Program and Financing (in millions of dollars)
Identification code 11–5001–0–2–802

10.00

1996 actual

1997 est.

Obligations by program activity:
Total obligations (object class 41.0) ............................ ................... ...................

1998 est.

175

tor of the Office of National Drug Control Policy. This Fund
can receive deposits from the Department of Justice Assets
Forfeiture Fund and the Department of the Treasury Assets
Forfeiture Fund in addition to General Fund appropriations.
The monies in the Fund support high-priority drug control
programs and may be transferred to drug control agencies.
The budget schedule does not display intended 1997 obligations or transfer of 1997 appropriations in the Fund. The
ONDCP Director’s decision regarding these funds will be
transmitted to the Congress separately. Obligations directly
incurred by ONDCP will be reflected in its Salaries and Expenses account.

INTERNATIONAL SECURITY ASSISTANCE
Federal Funds
General and special funds:
ECONOMIC SUPPORT FUND
For necessary expenses to carry out the provisions of chapter 4
of part II, ø$2,343,000,000¿ $2,497,600,000, to remain available until
øSeptember 30, 1998: Provided, That of the funds appropriated under
this heading, not less than $1,200,000,000 shall be available only
for Israel, which sum shall be available on a grant basis as a cash
transfer and shall be disbursed within thirty days of enactment of
this Act or by October 31, 1996, whichever is later: Provided further,
That not less than $815,000,000 shall be available only for Egypt,
which sum shall be provided on a grant basis, and of which sum
cash transfer assistance may be provided, with the understanding
that Egypt will undertake significant economic reforms which are
additional to those which were undertaken in previous fiscal years,
and of which not less than $200,000,000 shall be provided as Commodity Import Program assistance: Provided further, That in exercising the authority to provide cash transfer assistance for Israel and
Egypt, the President shall ensure that the level of such assistance
does not cause an adverse impact on the total level of nonmilitary
exports from the United States to each such country: Provided further, That it is the sense of the Congress that the recommended
levels of assistance for Egypt and Israel are based in great measure
upon their continued participation in the Camp David Accords and
upon the Egyptian-Israeli peace treaty: Provided further, That none
of the funds appropriated under this heading shall be made available
for Zaire.¿ expended. (Foreign Operations, Export Financing, and Related Programs Appropriation Act, 1997.)
Program and Financing (in millions of dollars)

21.40

23.90
23.95
24.40

Total budgetary resources available for obligation ...................
71
New obligations ............................................................. ................... ...................
Unobligated balance available, end of year:
Uninvested balance ................................................... ...................
71

New budget authority (gross), detail:
40.00 Appropriation .................................................................. ...................
41.00 Transferred to other accounts ....................................... ...................

71
175
246
–175
71

113
175
–42 ...................

43.00

Appropriation (total) .................................................. ...................

175

70.00

Total new budget authority (gross) .......................... ...................

175

73.10
73.20
74.40

86.90

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
Total outlays (gross) ...................................................... ................... ...................
Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ................... ...................
Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................

175
–158

Identification code 72–1037–0–1–152

10.00

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................

1997 est.

1998 est.

2,307

2,650

2,445

208
2,342

287 ...................
2,363
2,445

21.40

23.90
23.95
24.40

45 ................... ...................
2,595
–2,307

2,650
–2,650

2,445
–2,445

287 ................... ...................

2,360
2,363
–19 ...................

2,498
–53

43.00

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
41.00
Transferred to other accounts ...................................
Appropriation (total) .............................................
Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

2,341

2,445

70.00

Total new budget authority (gross) ..........................

2,342

2,363

2,445

72.40

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................

2,775

2,799

2,984

158
68.00

Net budget authority and outlays:
89.00 Budget authority ............................................................ ...................
71
90.00 Outlays ........................................................................... ................... ...................

Obligations by program activity:
Total obligations ............................................................

1996 actual

175
158

The Anti-Drug Abuse Act of 1988, as amended, established
the Special Forfeiture Fund to be administered by the Direc-

2,363

1 ................... ...................

INTERNATIONAL SECURITY ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
ECONOMIC SUPPORT FUND—Continued
Program and Financing (in millions of dollars)—Continued
Identification code 72–1037–0–1–152

73.10
73.20
73.45
74.40

New obligations .............................................................
Total outlays (gross) ......................................................
Adjustments in unexpired accounts ..............................
Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1996 actual

1997 est.

1998 est.

2,307
2,650
2,445
–2,238
–2,465
–2,423
–45 ................... ...................
2,799

2,984

3,006

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

1,248
990

1,281
1,184

1,287
1,136

87.00

Total outlays (gross) .................................................

2,238

2,465

2,423

Offsets:
Against gross budget authority and outlays:
88.45
Offsetting collections (cash) from: Offsetting governmental collections ............................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

–1 ................... ...................

2,341
2,237

2,363
2,465

2,445
2,423

This account is used to provide economic assistance to selected countries in support of U.S. efforts to promote stability
and U.S. security interests in strategic regions of the world.
Object Classification (in millions of dollars)
Identification code 72–1037–0–1–152

25.2
41.0
99.0
41.0
99.9

Direct obligations:
Other services ............................................................
Grants, subsidies, and contributions ........................

1996 actual

1997 est.

1998 est.

5
2,257

5
2,645

5
2,440

Subtotal, direct obligations ..................................
Allocation Account: Grants, subsidies, and contributions ...........................................................................

2,262

2,650

2,445

Total obligations ........................................................

2,307

45 ................... ...................
2,650

2,445

FOREIGN MILITARY FINANCING PROGRAM
For expenses necessary for grants to enable the President to carry
out the provisions of section 23 of the Arms Export Control Act,
ø$3,164,000,000¿ $3,274,250,000: Provided, øThat of the funds appropriated by this paragraph not less than $1,800,000,000 shall be available for grants only for Israel, and not less than $1,300,000,000
shall be available for grants only for Egypt: Provided further, That
the funds appropriated by this paragraph for Israel shall be disbursed
within thirty days of enactment of this Act or by October 31, 1996,
whichever is later: Provided further, That to the extent that the
Government of Israel requests that funds be used for such purposes,
grants made available for Israel by this paragraph shall, as agreed
by Israel and the United States, be available for advanced weapons
systems, of which not less than $475,000,000 shall be available for
the procurement in Israel of defense articles and defense services,
including research and development: Provided further, That of the
funds made available under this paragraph, $30,000,000 shall be
available for assistance on a grant basis for Poland, Hungary, and
the Czech Republic to carry out title II of Public Law 103–477 and
section 585 of Public Law 104–107: Provided further,¿ That funds
made available under this paragraph shall be nonrepayable notwithstanding any requirement in section 23 of the Arms Export Control
Actø: Provided further, That, for the purpose only of providing support for NATO expansion and the Warsaw Initiative Program, of
the funds appropriated by this Act under the headings ‘‘Assistance
for Eastern Europe and the Baltic States’’ and ‘‘Assistance for the
New Independent States of the Former Soviet Union’’, up to a total
of $7,000,000 may be transferred, notwithstanding any other provision of law, to the funds appropriated under this paragraph: Provided
further, That none of the funds made available under this heading
shall be available for any non-NATO country participating in the
Partnership for Peace Program except through the regular notification procedures of the Committees on Appropriations¿.

For the cost, as defined in section 502 of the Congressional Budget
Act of 1974, of direct loans authorized by section 23 of the Arms
Export Control Act as follows: cost of direct loans, ø$60,000,000¿
$66,000,000: Provided, That these funds are available to subsidize
gross obligations for the principal amount of direct loans of not to
exceed ø$540,000,000: Provided further, That the rate of interest
charged on such loans shall be not less than the current average
market yield on outstanding marketable obligations of the United
States of comparable maturities: Provided further, That of the funds
appropriated under this paragraph $20,000,000 shall be made available to Poland, Hungary, and the Czech Republic: Provided further,
That funds appropriated under this heading shall be made available
for Greece and Turkey only on a loan basis, and the principal amount
of direct loans for each country shall not exceed the following:
$122,500,000 only for Greece and $175,000,000 only for Turkey¿
$699,500,000.
None of the funds made available under this heading shall be
available to finance the procurement of defense articles, defense services, or design and construction services that are not sold by the
United States Government under the Arms Export Control Act unless
the foreign country proposing to make such procurements has first
signed an agreement with the United States Government specifying
the conditions under which such procurements may be financed with
such funds: Provided, øThat all country and funding level increases
in allocations shall be submitted through the regular notification
procedures of section 515 of this Act: Provided further,¿ That funds
made available under this heading shall be obligated upon apportionment in accordance with paragraph (5)(C) of title 31, United States
Code, section 1501(a): øProvided further, That none of the funds
appropriated under this heading shall be available for Zaire, Sudan,
Liberia, and Guatemala:¿ Provided further, That funds made available under this heading may be used, notwithstanding any other
provision of law, for activities related to the clearance of landmines
and unexploded ordnance, and may include activities implemented
through nongovernmental and international organizations: Provided
further, That only those countries for which assistance was justified
for the ‘‘Foreign Military Sales Financing Program’’ in the fiscal year
1989 congressional presentation for security assistance programs may
utilize funds made available under this heading for procurement of
defense articles, defense services or design and construction services
that are not sold by the United States Government under the Arms
Export Control Act: Provided further, That, subject to the regular
notification procedures of the Committees on Appropriations, funds
made available under this heading for the cost of direct loans may
also be used to supplement the funds available under this heading
for grants, and funds made available under this heading for grants
may also be used to supplement the funds available under this heading for the cost of direct loans: Provided further, That funds appropriated under this heading shall be expended at the minimum rate
necessary to make timely payment for defense articles and services:
Provided further, That not more than $23,250,000 of the funds appropriated under this heading may be obligated for necessary expenses,
including the purchase of passenger motor vehicles for replacement
only for use outside of the United States, for the general costs of
administering military assistance and salesø: Provided further, That
not more than $355,000,000 of funds realized pursuant to section
21(e)(1)(A) of the Arms Export Control Act may be obligated for
expenses incurred by the Department of Defense during fiscal year
1997 pursuant to section 43(b) of the Arms Export Control Act, except
that this limitation may be exceeded only through the regular notification procedures of the Committees on Appropriations¿. (Foreign
Operations, Export Financing, and Related Programs Appropriation
Act, 1997.)
øFor an additional amount for grants to enable the President to
carry out the provisions of section 23 of the Arms Export Control
Act, $60,000,000.¿ (Omnibus Consolidated Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 11–1082–0–1–152

1996 actual

1997 est.

1998 est.

00.01
00.02

Obligations by program activity:
Country programs ..........................................................
Administrative costs ......................................................

3,269
23

3,201
23

3,251
23

10.00

Total obligations ........................................................

3,292

3,224

3,274

22.00

Budgetary resources available for obligation:
New budget authority (gross) ........................................

3,292

3,224

3,274

INTERNATIONAL SECURITY ASSISTANCE—Continued
Federal Funds—Continued

FUNDS APPROPRIATED TO THE PRESIDENT
23.95

New obligations .............................................................

40.00
42.00

–3,292

New budget authority (gross), detail:
Appropriation ..................................................................
Transferred from other accounts ...................................

–3,224

–3,274

86.93

Outlays from current balances ......................................

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

39
30

43
35

50
51

3,278
3,224
3,274
14 ................... ...................

43.00

Appropriation (total) ..................................................

3,292

3,224

3,274

70.00

Total new budget authority (gross) ..........................

3,292

3,224

3,274

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1,436
1,781
1,845
3,292
3,224
3,274
–2,946
–3,160
–3,453
–1 ................... ...................
1,781

1,845

1,666

This assistance provides grant military education and training to military and civilian students from foreign countries.
In addition to helping these countries move toward self-sufficiency in defending themselves, this program also exposes
foreign students to American democratic values, particularly
military respect for civilian rule and for individual and
human rights.
Object Classification (in millions of dollars)

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

1,866
1,080

1,829
1,331

2,535
918

87.00

Total outlays (gross) .................................................

2,946

3,160

3,453

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

3,292
2,946

3,224
3,160

3,274
3,453

The foreign military financing (FMF) program enables selected friendly and allied countries to improve their ability
to defend themselves by financing their acquisition of U.S.
military articles, services, and training. This account provides
the grant financing portion of the FMF program. Credit financing, in the form of direct loans, is provided in the FMF
loan program account.

Identification code 11–1081–0–1–152

1996 actual

1997 est.

1998 est.

26.0
41.0
99.5

Supplies and materials .................................................
Grants, subsidies, and contributions ............................
Below reporting threshold ..............................................

4
34
1

4
38
1

5
44
1

99.9

Total obligations ........................................................

MILITARY-TO-MILITARY CONTACT PROGRAM

Program and Financing (in millions of dollars)
Identification code 11–1084–0–1–152

1996 actual

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1997 est.

1998 est.

72.40

Object Classification (in millions of dollars)
Identification code 11–1082–0–1–152

1996 actual

1997 est.

1998 est.

25.2
41.0

Other services ................................................................
Grants, subsidies, and contributions ............................

23
3,269

23
3,201

23
3,251

99.9

Total obligations ........................................................

3,292

3,224

3,274

INTERNATIONAL MILITARY EDUCATION

AND

Program and Financing (in millions of dollars)
1996 actual

1997 est.

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

39
–39

43
–43

50
–50

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

This program financed expenses associated with direct contacts between U.S. military and the military establishments
of Eastern Europe and the Baltic and Pacific regions. These
contacts were designed to promote the development of foreign
military that are non-political, loyal to civilian constitutional
authority, structured for defensive needs, and respectful of
human and individual rights.

For necessary expenses to carry out the provisions of section 551
of the Foreign Assistance Act of 1961, ø$65,000,000¿ $90,000,000ø:
Provided, That none of the funds appropriated under this paragraph
shall be obligated or expended except as provided through the regular
notification procedures of the Committees on Appropriations¿. (Omnibus Consolidated Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 72–1032–0–1–152

72.40

Outlays (gross), detail:
Outlays from new current authority ..............................

3 ...................

PEACEKEEPING OPERATIONS
39

86.90

1998 est.

Obligations by program activity:
10.00 Total obligations ............................................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

3 ................... ...................

89.00
90.00

TRAINING

For necessary expenses to carry out the provisions of section 541
of the Foreign Assistance Act of 1961, $50,000,000 ø$43,475,000: Provided, That none of the funds appropriated under this heading shall
be available for Zaire and Guatemala: Provided further, That funds
appropriated under this heading for grant financed military education
and training for Indonesia may only be available for expanded international military education and training¿. (Foreign Operations, Export Financing, and Related Programs Appropriation Act, 1997.)

Identification code 11–1081–0–1–152

6
3 ...................
–2
–3 ...................
–1 ................... ...................

23
27
35
39
43
50
–30
–35
–51
–5 ................... ...................

1996 actual

1997 est.

1998 est.

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

96
–96

65
–65

90
–90

New budget authority (gross), detail:
Appropriation ..................................................................

22.00
23.95

40.00

INTERNATIONAL SECURITY ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

General and special funds—Continued
PEACEKEEPING OPERATIONS—Continued
Program and Financing (in millions of dollars)—Continued
Identification code 72–1032–0–1–152

1996 actual

1997 est.

1998 est.

42.00

Transferred from other accounts ...................................

26 ................... ...................

43.00

Appropriation (total) ..................................................

70.00

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

29
50
40
96
65
90
–73
–75
–82
–1 ................... ...................
50

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

50
23

45
30

62
20

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

96
73

65
75

90
82

This account funds U.S. assistance to international efforts
to monitor and maintain the peace in areas of special concern
to the United States and to other related programs carried
out in furtherance of the national security interests of the
United States. In 1997, contributions are planned for the
Multinational Force and Observers in the Sinai, Europe, Africa and other regional programs, and other activities.
COUNTER-TERRORISM ASSISTANCE

ISRAEL

Program and Financing (in millions of dollars)
Identification code 11–1089–0–1–152

1996 actual

1997 est.

1998 est.

10.00

Obligations by program activity:
Total obligations (object class 41.0) ............................

50 ................... ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

50 ................... ...................
–50 ................... ...................

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

50 ................... ...................

73.10
73.20

Change in unpaid obligations:
New obligations .............................................................
Total outlays (gross) ......................................................

50 ................... ...................
–50 ................... ...................

86.90

Outlays (gross), detail:
Outlays from new current authority ..............................

50 ................... ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

50 ................... ...................
50 ................... ...................

This program was created to help Israel counter terrorist
threats to its security.
øNONPROLIFERATION, ANTI-TERRORISM, DEMINING
PROGRAMS¿

AND

øFor necessary expenses for nonproliferation, anti-terrorism and
related programs and activities, $133,000,000, to carry out the provisions of chapter 8 of part II of the Foreign Assistance Act of 1961
for anti-terrorism assistance, section 504 of the FREEDOM Support
Act for the Nonproliferation and Disarmament Fund, section 23 of

the Arms Export Control Act for demining activities, notwithstanding
any other provision of law, including activities implemented through
nongovernmental and international organizations, section 301 of the
Foreign Assistance Act of 1961 for a voluntary contribution to the
International Atomic Energy Agency (IAEA) and a voluntary contribution to the Korean Peninsula Energy Development Organization
(KEDO), and for the acquisition and provision of goods and services,
or for grants to Israel necessary to support the eradication of terrorism in and around Israel: Provided, That of this amount not to
exceed $15,000,000, to remain available until expended, may be made
available for the Nonproliferation and Disarmament Fund, notwithstanding any other provision of law, to promote bilateral and multilateral activities relating to nonproliferation and disarmament: Provided
further, That such funds may also be used for such countries other
than the new independent states of the former Soviet Union and
international organizations when it is in the national security interest
of the United States to do so: Provided further, That such funds
shall be subject to the regular notification procedures of the Committees on Appropriations: Provided further, That funds appropriated
under this heading may be made available for the International
Atomic Energy Agency only if the Secretary of State determines (and
so reports to the Congress) that Israel is not being denied its right
to participate in the activities of that Agency: Provided further, That
not to exceed $25,000,000 may be made available to the Korean
Peninsula Energy Development Organization (KEDO) only for the
administrative expenses and heavy fuel oil costs associated with the
Agreed Framework: Provided further, That such funds may be obligated to KEDO only if, prior to such obligation of funds, the President
certifies and so reports to Congress that (1)(A) the United States
is taking steps to assure that progress is made on the implementation
of the January 1, 1992, Joint Declaration on the Denuclearization
of the Korean Peninsula and the implementation of the North-South
dialogue, and (B) North Korea is complying with the other provisions
of the Agreed Framework between North Korea and the United
States and with the Confidential Minute; (2) North Korea is cooperating fully in the canning and safe storage of all spent fuel from
its graphite-moderated nuclear reactors and that such canning and
safe storage is scheduled to be completed by the end of fiscal year
1997; and (3) North Korea has not significantly diverted assistance
provided by the United States for purposes for which it was not
intended: Provided further, That the President may waive the certification requirements of the preceding proviso if the President determines that it is vital to the national security interests of the United
States: Provided further, That no funds may be obligated for KEDO
until 30 calendar days after submission to Congress of the waiver
permitted under the preceding proviso: Provided further, That before
obligating any funds for KEDO, the President shall report to Congress on (1) the cooperation of North Korea in the process of returning
to the United States the remains of United States military personnel
who are listed as missing in action as a result of the Korean conflict
(including conducting joint field activities with the United States);
(2) violations of the military armistice agreement of 1953; (3) the
actions which the United States is taking to assure that North Korea
is consistently taking steps to implement the Joint Declaration on
Denuclearization of the Korean Peninsula and engage in North-South
dialogue; and (4) all instances of non-compliance with the Agreed
Framework between North Korea and the United States and the
Confidential Minute, including diversion of heavy fuel oil: Provided
further, That the obligation of such funds shall be subject to the
regular notification procedures of the Committees on Appropriations:
Provided further, That the Secretary of State shall submit to the
appropriate congressional committees an annual report (to be submitted with the annual presentation for appropriations) providing a full
and detailed accounting of the fiscal year request for the United
States contribution to KEDO, the expected operating budget of the
Korean Peninsula Energy Development Organization, to include proposed annual costs associated with heavy fuel oil purchases and other
related activities, and the amount of funds pledged by other donor
nations and organizations to support KEDO activities on a per country basis. (Foreign Operations, Export Financing, and Related Programs Appropriation Act, 1997.)
For an additional amount for nonproliferation, anti-terrorism and
related programs and activities, $18,000,000, to carry out the provisions of chapter 8 of part II of the Foreign Assistance Act of 1961
for anti-terrorism assistance.¿ (Omnibus Consolidated Appropriations
Act, 1997.)

INTERNATIONAL SECURITY ASSISTANCE—Continued
Federal Funds—Continued

FUNDS APPROPRIATED TO THE PRESIDENT
Program and Financing (in millions of dollars)
1996 actual

Identification code 11–1075–0–1–152

10.00

1997 est.

Obligations by program activity:
Total obligations (object class 41.0) ............................ ...................

1998 est.

140

This account shows financial transactions related to the
construction of two airfields in Israel that were part of the
Camp David agreement.

NONPROLIFERATION
Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested balance ................................................... ................... ...................
11
22.00 New budget authority (gross) ........................................ ...................
151 ...................
23.90
23.95
24.40

40.00

Total budgetary resources available for obligation ...................
New obligations ............................................................. ...................
Unobligated balance available, end of year:
Uninvested balance ................................................... ...................

151
–140

11
–11

11 ...................

New budget authority (gross), detail:
Appropriation .................................................................. ...................

151 ...................

AND

DISARMAMENT FUND

For necessary expenses of the Nonproliferation and Disarmament
Fund, to carry out activities contained in section 504 of the FREEDOM Support Act, $15,000,000, to remain available until expended:
Provided, That such funds may be used for countries other than the
new independent states of the former Soviet Union and international
organizations when it is in the national security interest of the United
States to do so: Provided further, That funds appropriated under
this heading may be made available notwithstanding any other provision of law: Provided further, That funds appropriated under this
heading shall be subject to the regular notification procedures of the
Committees on Appropriations.
Program and Financing (in millions of dollars)

72.40

86.90
86.93

................... ...................
...................
140
...................
–66
...................

74
11
–39

Outlays (gross), detail:
Outlays from new current authority .............................. ...................
66 ...................
Outlays from current balances ...................................... ................... ...................
39

87.00

Net budget authority and outlays:
Budget authority ............................................................ ...................
Outlays ........................................................................... ...................

ASSISTANCE

FOR

RELOCATION

FACILITIES

00.01
00.02
00.03
00.04
00.05
00.06

10.00

151 ...................
66
39

Total outlays (gross) ................................................. ...................

89.00
90.00

Identification code 11–1071–0–1–152

1997 est.

1998 est.

Obligations by program activity:
Education and training ..................................................
1
3
2
Destruction and conversion assistance .........................
5
2
3
Enforcement/interdiction assistance .............................
4
6
5
Safeguards/verification assistance ............................... ...................
4
4
Administration ................................................................ ................... ...................
1
International Science and Technology Centers .............
14
1 ...................

21.40

1996 actual

ISRAEL

Total obligations ........................................................

4
16 ...................
36 ...................
15
40
–24

16
–16

15
–15

16 ................... ...................

Program and Financing (in millions of dollars)
Identification code 11–1088–0–1–152

1996 actual

1997 est.

New budget authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) ..................................... ...................
68.49
Portion applied to liquidate contract authority ........ ...................

1998 est.

2 ...................
–2 ...................

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
42.00
Transferred from other accounts ..............................

20 ...................
15
15 ................... ...................

43.00

Appropriation (total) .............................................
Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

35 ...................

Total new budget authority (gross) ..........................

36 ...................

68.00
68.90

Spending authority from offsetting collections
(total) ................................................................ ................... ................... ...................
70.00

Change in unpaid obligations:
72.49 Unpaid obligations, start of year: Obligated balance:
Contract authority .....................................................
4
4
73.20 Total outlays (gross) ...................................................... ...................
–2
73.40 Adjustments in expired accounts .................................. ...................
–2
74.49 Unpaid obligations, end of year: Obligated balance:
Contract authority .....................................................
4 ...................

...................
...................
...................
...................

Outlays (gross), detail:
86.93 Outlays from current balances ...................................... ...................

2 ...................

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources .................................................................. ...................

–2 ...................

Net budget authority and outlays:
89.00 Budget authority ............................................................ ...................
–2 ...................
90.00 Outlays ........................................................................... ................... ................... ...................

0100
0360
0500
0700

1996 actual

1997 est.

Balance, start of year ....................................................
4
4
Adjustments in expired accounts .................................. ...................
–2
Offsetting collections applied to liquidate contract
authority .................................................................... ...................
–2
Balance, end of year .....................................................
4 ...................

1 ................... ...................
15

72.40

86.90
86.93
86.97

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................
Outlays from new permanent authority .........................

87.00

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

89.00
90.00

Status of Contract Authority (in millions of dollars)
Identification code 11–1088–0–1–152

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

13
24
–24

13
16
–15

14
15
–16

19 ...................
4
4
15
12
1 ................... ...................
24

–1 ................... ...................

35 ...................
23
15

15
16

1998 est.

...................
...................
...................
...................

This account is used to provide financial and technical assistance to support nonproliferation and disarmament efforts
in foreign countries, including education and training, elimination of weapons of mass destruction, and development of
export control capabilities in foreign countries.

INTERNATIONAL SECURITY ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
1159

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Subsidy rate ...................................................................

NONPROLIFERATION

AND

DISARMAMENT FUND—Continued

Object Classification (in millions of dollars)
Identification code 11–1071–0–1–152

22.0
25.2
41.0

Transportation of things ................................................
Other services ................................................................
Grants, subsidies, and contributions ............................

99.9

Total obligations ........................................................

1996 actual

1997 est.

1998 est.

544

540

700

10.84

11.11

9.44

1329

General and special funds—Continued

10.84

11.11

9.44

Weighted average subsidy rate .................................
Direct loan subsidy budget authority:
1330 Subsidy budget authority ...............................................

1 ................... ...................
9
15
15
14
1 ...................

Total subsidy budget authority .................................
Direct loan subsidy outlays:
1340 Subsidy outlays ..............................................................

1349

Credit accounts:

1339

Total subsidy outlays ................................................

FOREIGN MILITARY FINANCING DIRECT LOAN FINANCING ACCOUNT

FOREIGN MILITARY FINANCING LOAN PROGRAM ACCOUNT

Program and Financing (in millions of dollars)

Program and Financing (in millions of dollars)
Identification code 11–4122–0–3–152
Identification code 11–1085–0–1–152

1996 actual

1997 est.

Obligations by program activity:
00.01 Direct loan subsidy ........................................................
59
00.05 Reestimates of direct loan subsidy ............................... ...................
00.06 Interest on reestimates of direct loan subsidy ............. ...................

60
66
23 ...................
1 ...................

10.00

Total obligations (object class 41.0) ........................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

59
–59

84
–84

66
–66

1997 est.

1998 est.

Obligations by program activity:
Direct loans ....................................................................
544
Interest on Treasury borrowing ......................................
77
Payment of downward reestimate of subsidy to receipt
account ...................................................................... ...................
00.04 Payment of interest on downward reestimate of subsidy to receipt account ............................................. ...................

00.01
00.02
00.03

540
93

700
124

10 ...................
1 ...................

10.00

64
60
66
–5 ................... ...................

Appropriation (total) .............................................
59
Permanent:
Appropriation (indefinite) .......................................... ...................
Total new budget authority (gross) ..........................

1996 actual

1998 est.

24 ...................
84

Total obligations ........................................................

621

644

824

22.00
23.95

Budgetary resources available for obligation:
New financing authority (gross) ....................................
New obligations .............................................................

621
–621

644
–644

824
–824

493

480

634

140
–7
–5

257
–9
–84

370
14
–194

Spending authority from offsetting collections
(total) ................................................................

128

164

190

Total new financing authority (gross) ......................

621

644

824

Change in unpaid obligations:
Unpaid obligations, start of year:
72.90
Obligated balance: Obligated balance .....................
72.95
Receivables from program account ..........................

1,797
190

1,789
183

1,770
174

72.99
73.10
73.20

New financing authority (gross), detail:
Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.10
Receivables from program account ..........................
68.47
Portion applied to debt reduction .............................
67.15

68.90
70.00

72.40

190
59
–66

184
84
–92

175
66
–52

184

175

189

4
5
64
47
24 ...................

87.00

Total outlays (gross) .................................................

Net budget authority and outlays:
89.00 Budget authority ............................................................
90.00 Outlays ...........................................................................

59
66

84
92

66
52

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

Direct loan levels supportable by subsidy budget authority:
1150 Direct loan levels ...........................................................

1996 actual

544

1997 est.

540

1,972
644
–673

1,944
824
–683

1,789
183

1,770
174

1,895
188

Total unpaid obligations, end of year ..................
Total financing disbursements (gross) .........................

1,972
636

1,944
673

2,083
683

As required by the Federal Credit Reform Act of 1990,
this account records the subsidy costs associated with the
direct loans obligated for foreign military financing committed
in 1992 and beyond, as well as the administrative expenses
of this program. The foreign military financing credit program
provides loans that finance sales of defense articles, defense
services, and design and construction services to foreign countries and international organizations. The subsidy amounts
are estimated on a present value basis; the administrative
expenses are estimated on a cash basis.

Identification code 11–1085–0–1–152

1,987
621
–636

74.90
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total financing disbursements (gross) .........................
Unpaid obligations, end of year:
Obligated balance: Obligated balance .....................
Receivables from program account ..........................

74.99
87.00

Outlays (gross), detail:
86.90 Outlays from new current authority .............................. ...................
86.93 Outlays from current balances ......................................
66
86.97 Outlays from new permanent authority ......................... ...................

1998 est.

700

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
88.00
Federal sources ................................................
–94
88.00
Federal sources ................................................ ...................
88.40
Non-Federal sources .............................................
–46

–69
–52
–24 ...................
–164
–318

88.90
88.95

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

–140
7

–257
9

–370
–14

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................
Financing disbursements ...............................................

488
496

396
416

440
313

Status of Direct Loans (in millions of dollars)
Identification code 11–4122–0–3–152

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans .............................................

1996 actual

544

1997 est.

540

1998 est.

700

INTERNATIONAL SECURITY ASSISTANCE—Continued
Federal Funds—Continued

FUNDS APPROPRIATED TO THE PRESIDENT
1150

Total direct loan obligations .....................................

544

540

700

11 ................... ...................
59
52
50
–70
–52
–50

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

59
52
50
11 ................... ...................

87.00

Total outlays (gross) .................................................

72.40
1210
1231
1251
1290

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
539
Disbursements: Direct loan disbursements ...................
559
Repayments: Repayments and prepayments ................. ...................
Outstanding, end of year ..........................................

1,098
568
–23
1,643

1,098

1,643
560
–160
2,043

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans for foreign military financing obligated in 1992 and beyond. The foreign military financing credit program provides loans that finance
sales of defense articles, defense services, and design and
construction services to foreign countries and international
organizations. The amounts in this account are a means of
financing and are not included in budget totals.

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1402
Interest receivable ..............................
1405
Allowance for subsidy cost (–) ...........
1499
1901

Net present value of assets related
to direct loans ...........................
Other Federal assets: Other assets ........

1999

1996 actual

1997 est.

–36
–199

–22
–219

Total, offsetting collections (cash) ..................

–289

–255

–241

89.00
90.00

1995 actual

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources: Debt Reduction .......................... ...................
Non-Federal sources:
88.40
Non-Federal sources—Claims .........................
–43
88.40
Non-Federal sources—FFB Loans ....................
–246
88.90

Balance Sheet (in millions of dollars)
Identification code 11–4122–0–3–152

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

–229
–218

–203
–203

–191
–191

1998 est.

310

160

..................

190

184

175

188

539
9
–71

1,098
12
–143

1,643
18
–212

2,043
22
–264

477
1,488

967
1,630

1,449
1,542

1,801
1,573

–20 ...................

Total assets ........................................
LIABILITIES:
Federal liabilities:
2103
Debt .....................................................
2105
Other ...................................................

2,465

2,941

3,166

3,562

788
1,487

1,134
1,623

1,702
1,289

2,220
1,154

2999

2,275

2,757

2,991

Status of Direct Loans (in millions of dollars)
Identification code 11–4121–0–3–152

1996 actual

1997 est.

1998 est.

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
7,911
7,021
6,096
Disbursements: Direct loan disbursements ...................
35
14
9
Repayments:
Repayments and prepayments:
1251
Repayments and prepayments .............................
–950
–872
–776
1251
Repayments and prepayments: Debt Reduction ...................
–20 ...................
1261 Adjustments: Capitalized interest .................................
25 ................... ...................
1263 Write-offs for default: Direct loans ............................... ...................
–47 ...................

1210
1231

3,374

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

190

184

175

Total net position ................................

190

184

175

188

4999

Total liabilities and net position ............

2,465

2,941

3,166

3,562

Identification code 11–4121–0–3–152

1997 est.

1998 est.

Obligations by program activity:
00.01 Direct program: Guarantee claims ................................

10.00

Total obligations (object class 33.0) ........................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

59
–59

52
–52

50
–50

New budget authority (gross), detail:
Appropriation (indefinite) ...............................................
24
Spending authority from offsetting collections:
Offsetting collections (cash):
68.00
Offsetting collections (cash) ................................
289
68.00
Offsetting collections (cash): Debt Reduction ..... ...................
68.27
Capital transfer to general fund ..............................
–7
68.47
Portion applied to debt reduction .............................
–246
60.05

68.90
70.00

1996 actual

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
6,610
2251 Repayments and prepayments ......................................
–481
2261 Adjustments: Terminations for default that result in
loans receivable ........................................................ ...................

6,096

5,329

1997 est.

6,129
–431

1998 est.

5,694
–385

–4

Outstanding, end of year ..........................................

6,129

5,694

5,305

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

5,516

5,122

4,744

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2331
Disbursements for guaranteed loan claims .............
2364
Other adjustments, net .............................................

26
–26

34
–34

42
–42

Program and Financing (in millions of dollars)
1996 actual

7,021

2290

FOREIGN MILITARY LOAN LIQUIDATING ACCOUNT

Identification code 11–4121–0–3–152

Outstanding, end of year ..........................................

Status of Guaranteed Loans (in millions of dollars)

188

3999

1290

235
241
20 ...................
–16 ...................
–203
–219

Spending authority from offsetting collections
(total) ................................................................

Total new budget authority (gross) ..........................

As required by the Federal Credit Reform Act of 1990,
this account records all cash flows to and from the Government resulting from direct loans obligated and loan guarantees for foreign military financing committed prior to 1992.
This account is shown on a cash basis and reflects the transactions resulting from loans provided to finance sales of defense articles, defense services, and design and construction
services to foreign countries and international organizations.
All new foreign military financing credit activity in 1992 and
beyond (including modifications of direct loans or loan guarantees that resulted from obligations or commitments in any
year) is recorded in corresponding program and financing accounts.

INTERNATIONAL SECURITY ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
90.00

Credit accounts—Continued

Financing disbursements ............................................... ...................

FOREIGN MILITARY LOAN LIQUIDATING ACCOUNT—Continued
Status of Direct Loans (in millions of dollars)

Statement of Operations (in millions of dollars)
Identification code 11–4121–0–3–152

1995 actual

1996 actual

–105
–365

1997 est.

282
–293

277
–277

1996 actual

Identification code 11–4174–0–3–152

1998 est.

0111
0112

Revenue ...................................................
Expense ....................................................

260
–260

0119

Net income or loss (–) ............................

–470

–11

..................

Net income or loss ..................................

–470

–11

..................

1998 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................

..................

0199

1997 est.

..................

1150

1210
1232

Balance Sheet (in millions of dollars)
Identification code 11–4121–0–3–152

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1602
Interest receivable ..............................
1604
Direct loans and interest receivable,
net ..................................................
1699

Value of assets related to direct
loans ..........................................

1999

1995 actual

1996 actual

1997 est.

Total direct loan obligations ..................................... ................... ................... ...................
Cumulative balance of direct loans outstanding:
Outstanding, start of year ............................................. ................... ...................
20
Disbursements: Purchase of loans assets from the
public ......................................................................... ...................
20 ...................

1998 est.

1290
11

..................

7,911
579

7,021
655

6,096
574

5,329
496

8,491

7,676

6,670

5,825

8,491

7,676

6,670

5,825

8,501

7,676

6,670

5,825

56
3,493
4,333

51
3,247
3,767

48
3,048
3,111

44
2,829
2,493

Outstanding, end of year .......................................... ...................

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3300 Cumulative results of operations ............

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from restructuring foreign military
loans.
Balance Sheet (in millions of dollars)
Identification code 11–4174–0–3–152

1995 actual

1996 actual

ASSETS:
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1405
Allowance for subsidy cost (–) ...........

..................
..................

1499

Net present value of assets related
to direct loans ...........................

1997 est.

1998 est.

20
–3

..................

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................

..................

1999

2999

7,882

7,065

6,207

5,366

11
608

..................
611

..................
463

..................
459

2999

Total liabilities ....................................

..................

4999

Total liabilities and net position ............

..................

3999

Total net position ................................

619

611

463

459

4999

Total liabilities and net position ............

8,501

7,676

6,670

5,825

Object Classification (in millions of dollars)
1996 actual

Identification code 11–4174–0–3–152

MILITARY DEBT REDUCTION FINANCING ACCOUNT

33.0
43.0

Identification code 11–4174–0–3–152

1996 actual

1997 est.

1998 est.

00.01
00.02

Obligations by program activity:
Payment to liquidating account .................................... ...................
Interest on debt to Treasury .......................................... ...................

10.00

Total obligations ........................................................ ...................

22.00
23.95

Budgetary resources available for obligation:
New financing authority (gross) .................................... ...................
New obligations ............................................................. ...................

21
–21

1
–1

67.15
68.00

New financing authority (gross), detail:
Authority to borrow (indefinite) ..................................... ...................
Spending authority from offsetting collections: Offsetting collections (cash) .............................................. ...................

20 ...................
1
1

Investments and loans .................................................. ...................
Interest and dividends ................................................... ...................

99.9

Program and Financing (in millions of dollars)

1997 est.

Total obligations ........................................................ ...................

1998 est.

20 ...................
1
1
21

GENERAL FUND RECEIPT ACCOUNTS
[In millions of dollars]
1996 actual

1997 est.

1998 est.

Offsetting receipts from the public:
11–146800 Interest on foreign military credit sales ..........
11–296800 Repayment of loans, foreign military credit
sales ...................................................................................

245

203

142

661

637

535

General Fund Offsetting receipts from the public .....................

906

840

677

3 ...................

70.00

Total new financing authority (gross) ...................... ...................

73.10
73.20
87.00

Change in unpaid obligations:
New obligations ............................................................. ...................
Total financing disbursements (gross) ......................... ...................
Total financing disbursements (gross) ......................... ...................

21
–21
21

1
–1
1

Offsets:
Against gross financing authority and financing disbursements:
88.00
Offsetting collections (cash) from: Federal sources ...................

89.00

Net financing authority and financing disbursements:
Financing authority ........................................................ ...................

INTERNATIONAL DEVELOPMENT ASSISTANCE
MULTILATERAL ASSISTANCE
Federal Funds
General and special funds:
INTERNATIONAL FINANCIAL INSTITUTIONS
–3 ...................

CONTRIBUTION TO THE INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT

For payment to the International Bank for Reconstruction and Development by the Secretary of the Treasury, for the United States

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

FUNDS APPROPRIATED TO THE PRESIDENT
contribution to the Global Environment Facility (GEF), ø$35,000,000¿
$100,000,000, to remain available until øSeptember 30, 1998¿ expended. (Foreign Operations, Export Financing, and Related Programs
Appropriation Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 11–0077–0–1–151

1996 actual

1997 est.

1998 est.

00.01
00.02

Obligations by program activity:
Paid in capital ...............................................................
Global environment trust fund ......................................

10.00

Total obligations (object class 33.0) ........................

100

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.40
Appropriation .............................................................
21.47
Authority to borrow ....................................................

1,948
5,715

21.99
22.00

Total unobligated balance, start of year .............
New budget authority (gross) ........................................

7,663
63

7,663
35

7,663
100

23.90
23.95

7,726
–63

7,698
–35

7,763
–100

24.40
24.47

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Appropriation .............................................................
Authority to borrow ....................................................

1,948
5,715

24.99

Total unobligated balance, end of year ....................

7,663

the GEF coordinates work implemented through the World
Bank, the United Nations Development Programme, and the
United Nations Environment Programme. GEF programs
place emphasis on strong local participation to ensure successful implementation of projects, and it works to mainstream
environmental protection in the economic development plans
of developing countries. Following U.S. strategic guidance, the
GEF will have prepared a workplan in May 1997 that brings
total cumulative commitments to over $1.7 billion (including
workplan approvals that later require a final approval).
GEF participation forms the main pillar of U.S. influence
in ongoing international negotiations on environment, especially the Framework Convention on Climate Change and
Convention on Biological Diversity. The GEF induces increased environmental protection by the developing countries
that pose the biggest long-term threat to the global environment. Also, the GEF is the pioneer in harnessing private
capital flows for investment in environmentally sound development.
The FY 1998 request consists of $100 million for the last
of four U.S. installments to the $2 billion replenishment of
the GEF.

7,663

28 ................... ...................
35
35
100

CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT ASSOCIATION

New budget authority (gross), detail:
40.00 Appropriation ..................................................................
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

100

153
63
–26

190
35
–54

171
100
–42

190

171

229

72.40

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

3
23

3
51

9
33

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

63
26

35
54

100
42

For payment to the International Development Association by the
Secretary of the Treasury, ø$700,000,000,¿ $1,034,504,000, to remain
available until expended, of which $234,504,000 is for the United
States contribution to the tenth replenishment, and $800,000,000
is for the United States contribution to the eleventh replenishment.
øto remain available until expended: Provided, That none of the funds
may be obligated before March 1, 1997: Provided further, That not
less than twenty days before such funds are obligated, the Secretary
of the Treasury shall submit a report to the Committees on Appropriations on his efforts to reach agreement with the other IDA–
11 donors, including at the February 1997 IDA–11 donors review
meeting, that the procurement restrictions in the Interim Trust Fund
will be lifted.¿ (Foreign Operations, Export Financing, and Related
Programs Appropriation Act, 1997.)
Program and Financing (in millions of dollars)

The International Bank for Reconstruction and Development (World Bank) finances development projects in less developed countries. By applying banking principles to the
achievement of development goals, it promotes increased economic productivity and helps developing economies meet more
of the basic needs of their people.
The IBRD also plays a vital role in providing policy advice
to borrowing countries, assisting in donor coordination and
promoting co-financing.
The IBRD made new commitments of $14.7 billion during
its 1996 fiscal year; IBRD gross disbursements were $13.4
billion. Since its 1945 establishment, the IBRD has made
loans totalling $280 billion. $140 for every $1 of U.S. paid
in capital.
Full funding of capital subscriptions for the U.S. share of
a $74.8 billion general capital increase has been provided
by 1989–96 appropriations.
The Global Environment Facility (GEF) is the world’s leading institution for protecting the global environment and
avoiding economic disruption from climate change, depletion
of the ozone layer, extinction of species, and damage to water
ecosystems populations. Through its leadership role on the
GEF Council as a major donor, the United States has succeeded in establishing a detailed GEF Operational Strategy
that focuses available resources on a cost-effective mixture
of long- and short-term responses to these global environmental problems. Operated by an independent Secretariat,

Identification code 11–0073–0–1–151

10.00

Obligations by program activity:
Total obligations (object class 33.0) ............................

1996 actual

710

1997 est.

700

1998 est.

1,035

21.40

23.90
23.95
24.40

40.00

10 ................... ...................
700
700
1,035

Total budgetary resources available for obligation
710
700
1,035
New obligations .............................................................
–710
–700
–1,035
Unobligated balance available, end of year:
Uninvested balance ................................................... ................... ................... ...................
New budget authority (gross), detail:
Appropriation ..................................................................

700

1,035

3,752
710
–1,180

3,282
700
–1,139

2,843
1,035
–1,057

3,282

2,843

2,821

72.40

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

65
1,115

64
1,075

79
978

87.00

Total outlays (gross) .................................................

1,180

1,139

1,057

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

700
1,180

700
1,139

1,035
1,057

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

MULTILATERAL ASSISTANCE—Continued
General and special funds—Continued
INTERNATIONAL FINANCIAL INSTITUTIONS—Continued
CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT ASSOCIATION—

Continued

The International Development Association (IDA), a member of the World Bank Group, provides development financing
on highly concessional terms to the world’s poorest and least
creditworthy nations. These countries are primarily in SubSaharan Africa and South Asia, but also in Latin America,
Eastern Europe, and the former Soviet Union. IDA places
special emphasis on poverty alleviation, environmental protection, and economic reform and growth. IDA is the largest
source of multilateral lending that is extended on concessional
terms to developing countries. Projects have to meet the same
economic, financial, and environmental standards as other
World Bank projects.
During its fiscal year 1995, IDA made new commitments
of $6.9 billion; IDA’s gross disbursements were $5.9 billion.
Since its establishment, IDA has made commitments totalling
$96.9 billion (as of June 30, 1996).
The Tenth Replenishment of IDA provides donor country
resources of about $18 billion. The United States pledged
$3.75 billion (20.86 percent share of all donor contributions)
to the replenishment. The eleventh replenishment of IDA will
provide total resources for new loan commitments of about
$22 billion over three years, 1997–1999. The United States
elected not to participate in FY 1997, the first year of the
three-year replenishment. The United States pledged $1.6 billion for the last two years of the replenishment (15 percent
of total donor contributions). The 1998 request of $1,034.5
million consists of $234.5 million to clear unmet U.S. commitments and $800 million for the United States contribution
to the eleventh replenishment.
øCONTRIBUTION

TO THE INTERNATIONAL FINANCE CORPORATION¿

øFor payment to the International Finance Corporation by the Secretary of the Treasury, $6,656,000, for the United States share of
the increase in subscriptions to capital stock, to remain available
until expended.¿ (Foreign Operations, Export Financing, and Related
Programs Appropriation Act, 1997.)

The International Finance Corporation (IFC), a member of
the World Bank Group, was established in 1956 to further
economic development by encouraging the growth of private
enterprise in developing countries. IFC provides and mobilizes
loans and equity investments for promising ventures, and
provides technical assistance. The IFC is now playing an important role in the former Soviet Union and Eastern Europe’s
transition to free markets and private enterprise, due to the
IFC’s special expertise in foreign investment, capital markets
development, and privatization.
During World Bank FY 1996 the Corporation approved 264
new investments totalling $8.1 billion and net investments
for the IFC’s own account were $3.2 billion. IFC’s committed
loan and equity portfolio (for its own account) was $9.8 billion
as of June 30, 1996.
CONTRIBUTION TO MULTILATERAL INVESTMENT GUARANTEE AGENCY

Program and Financing (in millions of dollars)
Identification code 11–0084–0–1–151

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1996 actual

1997 est.

1998 est.

72.40

89.00
90.00

The Multilateral Investment Guarantee Agency (MIGA) is
an international development institution affiliated with the
World Bank Group. MIGA is designed to encourage the flow
of foreign private investment to and among developing countries by: (1) issuing guarantees against noncommercial risks
and (2) carrying out a wide range of investment promotion
activities. Authorization and full funding of U.S. membership
was provided in 1988.
During World Bank FY 1996, the MIGA issued 68 guarantees, with a maximum contingent liability of $862 million,
to facilitate aggregate direct investment of $6.6 billion. There
are no claims pending against MIGA.

Program and Financing (in millions of dollars)
CONTRIBUTION TO THE INTER-AMERICAN DEVELOPMENT BANK
Identification code 11–0078–0–1–151

1996 actual

1997 est.

1998 est.

10.00

Obligations by program activity:
Total obligations (object class 33.0) ............................

7 ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

61
–61

7 ...................
–7 ...................

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

7 ...................

81
61
–53

90
36
7 ...................
–60
–33

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

5
48

1 ...................
59
33

87.00

Total outlays (gross) .................................................

61
53

7 ...................
60
33

For payment to the Inter-American Development Bank by the Secretary of the Treasury, for the United States share of the paidin share portion of the increase in capital stock, $25,610,667, and
for the United States share of the increase in the resources of the
Fund for Special Operations, ø$10,000,000,¿ $20,835,000, to remain
available until expended.
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

The United States Governor of the Inter-American Development
Bank may subscribe without fiscal year limitation to the callable
capital portion of the United States share of such capital stock in
an amount not to exceed $1,503,718,910. (Foreign Operations, Export
Financing, and Related Programs Appropriation Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 11–0072–0–1–151

1996 actual

1997 est.

1998 est.

00.01
00.02

Obligations by program activity:
Paid-in capital ...............................................................
Fund for Special Operations ..........................................

26
10

26
21

10.00

Total obligations (object class 33.0) ........................

3,798
36

3,798
46

21.40

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

FUNDS APPROPRIATED TO THE PRESIDENT
23.90
23.95
24.40

New budget authority (gross), detail:
40.00 Appropriation ..................................................................
Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

3,834
–36

3,844
–46

3,798

23.95
24.40

New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

–113

–163

748

113

163

744
113
–116

741
113
–125

729
163
–126

741

729

766

3,798
40.00

New budget authority (gross), detail:
Appropriation ..................................................................

46
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

271
36
–121

186
36
–101

121
46
–72

186

121

8
113

7
94

7
65

87.00

121

101

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

8
108

4
121

5
121

87.00

Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
86.93 Outlays from current balances ......................................

Total outlays (gross) .................................................

116

125

126

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

113
116

113
125

163
126

Total outlays (gross) .................................................

36
121

36
101

46
72

The Inter-American Development Bank (IDB) promotes the
economic and social development of Latin America and the
Caribbean through loans and technical assistance. Since its
inception in 1960, the Bank has lent over $84.6 billion.
The Bank lends money through: (1) the Ordinary Capital
window that lends at market-based rates; and (2) the Fund
for Special Operations (FSO) which makes loans on
concessional terms to the region’s poorest nations.
The 1998 request includes: (1) budget authority of $25.6
million for paid-in capital subscriptions and $1,503.7 million
in program limitations for callable capital subscriptions for
payments on the U.S. contribution to the IDB’s eighth general
capital increase; and (2) budget authority of $20.8 million
for the U.S. payment to the Eighth Replenishment of the
FSO.

CONTRIBUTION TO THE ASIAN DEVELOPMENT BANK

For payment to the Asian Development Bank by the Secretary
of the Treasury for the United States share of the paid-in portion
of the increase in capital stock, $13,221,596, to remain available
until expended.
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

The United States Governor of the Asian Development Bank may
subscribe without fiscal year limitation to the callable capital portion
of the United States share of such capital stock in an amount not
to exceed $647,858,204.

The Asian Development Bank fosters sustainable economic
development, poverty alleviation, and cooperation in the Asia/
Pacific region. The Bank lends at market-based rates through
its ordinary capital window, and on highly concessional terms
to the region’s poorer nations through the Asian Development
Fund (ADF). In 1995, the Bank lent $4.0 billion of its ordinary capital resources and extended loans and grants of $1.5
billion from its ADF resources for development projects. Since
its founding in 1966, the ADB has loaned over $39.2 billion
and the ADF has loaned over $17.5 billion. The Bank has
made cumulative equity investments of $354 million.
The 1998 request includes: (1) budget authority of $13.2
million for paid-in capital subscriptions and $647.9 million
in program limitations for callable capital subscriptions for
the third of six installments on the U.S. subscription to the
ADB’s fourth general capital increase; and (2) $150 million
in budget authority to participate in the sixth replenishment
of ADF resources, and to partially clear outstanding unmet
commitments on the U.S. share of the $4.2 billion fifth replenishment of ADF resources.

CONTRIBUTION TO THE AFRICAN DEVELOPMENT FUND

For the United States contribution by the Secretary of the Treasury
to the increase in resources of the African Fund, $50,000,000, to remain available until expended. (P.L. 103–306, section 526c.)
Program and Financing (in millions of dollars)
Identification code 11–0079–0–1–151

CONTRIBUTION TO THE ASIAN DEVELOPMENT FUND

For the United States contribution by the Secretary of the Treasury
to the increases in resources of the Asian Development Fund, as
authorized by the Asian Development Bank Act, as amended (Public Law 89–369), ø$100,000,000¿, $150,000,000 to remain available
until expended. (Foreign Operations, Export Financing, and Related
Programs Appropriation Act, 1997.)

1996 actual

1997 est.

1998 est.

Identification code 11–0076–0–1–151

1996 actual

1997 est.

Obligations by program activity:
African development fund ............................................. ................... ...................

10.00

Total obligations (object class 33.0) ........................ ................... ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
New obligations ............................................................. ................... ...................

50
–50

40.00

Program and Financing (in millions of dollars)

00.02

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

1998 est.

Obligations by program activity:
00.01 Paid-in capital ...............................................................
00.02 Asian development fund ................................................

13
100

13
150

10.00

Total obligations (object class 33.0) ........................

113

163

748
113

748
163

23.90

861

911

21.40

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
492
420
73.10 New obligations ............................................................. ................... ...................
73.20 Total outlays (gross) ......................................................
–72
–63
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
420
357
72.40

86.93
Total budgetary resources available for obligation

Outlays (gross), detail:
Outlays from current balances ......................................

357
50
–72
335

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
86.93

Total outlays (gross) .................................................

89.00
90.00

General and special funds—Continued

Outlays from current balances ......................................

87.00

MULTILATERAL ASSISTANCE—Continued

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

70
97

12
31

36
32

INTERNATIONAL FINANCIAL INSTITUTIONS—Continued
CONTRIBUTION TO THE AFRICAN DEVELOPMENT FUND—Continued

Program and Financing (in millions of dollars)—Continued
Identification code 11–0079–0–1–151

89.00
90.00

1996 actual

1997 est.

1998 est.

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
Outlays ...........................................................................
72
63

50
72

The African Development Bank (AFDB) lends at marketbased rates for economic development of countries on the
African continent. The United States joined the AFDB in
1983 when membership was open to non-regional countries.
In 1995, the AFDB financed 11 new projects worth $683
million. Since its inception in 1963, the AFDB has financed
714 projects worth over $19.4 billion.
The African Development Fund (AFDF), the concessional
lending affiliate of the African Development Bank, makes
loans to the poorest African nations. AFDF operations have
been interrupted since the end of 1993 when resources from
the last AFDF replenishment had been exhausted and prior
to conclusion of negotiations on a seventh replenishment of
the AFDF. In that time, Bank management has undertaken
far-reaching and comprehensive restructuring and institutional reforms. By the end of 1993 and since its inception
in 1974, cumulative AFDF lending totaled $10.2 billion for
development projects.
The 1997 request includes: $50 million in budget authority
for the first installment on the U.S. share of the seventh
replenishment of AFDF resources.

The European Bank for Reconstruction and Development
(EBRD) supports market-oriented economic reform and democratic pluralism through predominately private sector lending
and investments in the nations of Central and Eastern Europe and the former Soviet Union. Over 80% of projects approved in 1995 were in the private sector. The United States
and other shareholders signed the articles of agreement of
the EBRD on May 29, 1990, and the Bank officially began
operating on April 15, 1991. The capitalization of the EBRD
is ECU 10 billion (approximately $12 billion equivalent at
then-prevailing exchange rates). Paid-in contributions constitute 30 percent of total capital, with the remainder callable.
At the end of 1995, the EBRD had approved 368 loans and
investments totalling $10.1 billion.
The 1998 request consists of $35.8 million in budget authority for paid-in capital subscriptions and $123.4 million in
program limitations for callable capital subscriptions for the
first of eight installments on the U.S. subscription to the
general capital increase.
NORTH AMERICAN DEVELOPMENT BANK
For payment to the North American Development Bank by the
Secretary of the Treasury, for the United States share of the paidin portion of the capital stock, ø$56,000,000¿ $56,500,000, to remain
available until expended.
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

CONTRIBUTION TO THE EUROPEAN BANK FOR RECONSTRUCTION AND
DEVELOPMENT

For payment to the European Bank for Reconstruction and Development by the Secretary of the Treasury, ø$11,916,447¿ $35,778,717,
for the United States share of the paid-in øshare¿ portion of the
øinitial capital subscription¿ increase in capital stock, to remain available until expended.

The United States Governor of the North American Development
Bank may subscribe without fiscal year limitation to the callable
capital portion of the United States share of the capital stock of
the North American Development Bank in an amount not to exceed
$318,750,000. (Foreign Operations, Export Financing, and Related
Programs Appropriation Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 11–1008–0–1–151

LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

The United States Governor of the European Bank for Reconstruction and Development may subscribe without fiscal year limitation
to the callable capital portion of the United States share of such
capital stock in an amount not to exceed ø$27,805,043¿ $123,237,803.
(Foreign Operations, Export Financing, and Related Programs Appropriation Act, 1997.)

1996 actual

1997 est.

1998 est.

10.00

Obligations by program activity:
Total obligations (object class 33.0) ............................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

56
–56

57
–57

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

Program and Financing (in millions of dollars)
Identification code 11–0088–0–1–151

1996 actual

1997 est.

1998 est.

Obligations by program activity:
10.00 Total obligations (object class 33.0) ............................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

70
–70

12
–12

36
–36

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

62
70
–97

35
12
–31

16
36
–32

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
2 ................... ...................
73.10 New obligations .............................................................
56
56
57
73.20 Total outlays (gross) ......................................................
–58
–56
–57
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ................... ................... ...................

86.90
86.98

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from permanent balances ................................

87.00

72.40

86.90

72.40

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

56
58

56
56

57
57

56
56
57
2 ................... ...................

The North American Development Bank (NADBank) provides $2–3 billion in financing for high priority environmental

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

FUNDS APPROPRIATED TO THE PRESIDENT

infrastructure projects in the border region and, more broadly
within the United States for NAFTA-related community adjustment and investment. The Bank has begun its environmental lending and guarantee operations in both the United
States and Mexico. NADBank operations provide significant
direct benefits to U.S. citizens, particularly those in the border states. The NADBank’s capital shares ($450 million in
paid-in and $2.55 billion in callable capital) will be contributed equally by the United States and Mexico over a fouryear period.
The NADBank will finance environmental infrastructure
projects that have been certified by the U.S.-Mexican Border
Environment Cooperation Commission (BECC), an institution
designed to assist border states and local communities in
coordinating border clean-up. Communities on both sides of
the border have long been plagued by problems such as raw
sewage dumped in boundary waters, unsafe drinking water,
and inadequate municipal waste disposal. Based on its paidin and callable capital, the NADBank will be able to provide
partial guarantees of private sector financing and borrow in
capital markets to provide loans to help finance the projects
certified by the BECC.
In addition, 10 percent of the U.S. and Mexican shares
of NADBank will be available for NAFTA-related community
adjustment and investment in both countries, which need not
be in the border region. The U.S. community adjustment program will offer financing directly and through existing federal
credit programs, such as the Small Business Administration.
An Advisory Committee, which includes low income community representatives and non-governmental organizations,
helps ensure broad public participation in the community adjustment window of the NADBank.
The 1998 request consists of $56.5 million in budget authority for paid-in capital subscription and $318.8 million in program limitations for callable capital subscription with respect
to the U.S. subscription to NADBank initial capitalization.
BANK

FOR

ECONOMIC COOPERATION AND DEVELOPMENT
MIDDLE EAST AND NORTH AFRICA

For payment to the Bank for Economic Cooperation and Development in the Middle East and North Africa by the Secretary of the
Treasury, for the United States share of the paid-in share portion
of the initial capital subscription, up to $52,500,000, to be derived
by transfer from funds appropriated under the head, ‘‘Economic Support Fund,’’ in this or prior appropriations Acts, to remain available
until expended, notwithstanding section 502 of such acts.
ON

73.10
73.20

53
–53

86.90

Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................

89.00
90.00

53
53

The Bank for Economic Cooperation and Development in
the Middle East and North Africa (MEDB) is a key element
of the Middle East peace process. As the first major regional
institution including Israel and her neighbors, the MEDB will
lend at market-based rates to foster regional integration and
private sector-led growth in the Middle East and North Africa.
The MEDB has a three-fold mandate to: (1) support the
private sector; (2) assist with the privatization of state-owned
enterprises; and (3) support regional integration in particular
through infrastructure projects. The Bank is chartered to
work as a ‘‘merchant bank,’’ coordinating closely with private
sources of finance and catalyzing additional investment into
the region.
CONTRIBUTION

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 to be administered by the Inter-American
Development Bank, ø$27,500,000¿ $30,000,000, to remain available
until expended. (Foreign Operations, Export Financing, and Related
Programs Appropriation Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 11–0089–0–1–151

1996 actual

1997 est.

1998 est.

10.00

IN THE

(TRANSFER OF FUNDS)

LIMITATION

CALLABLE CAPITAL SUBSCRIPTIONS

The United States Governor of the Bank for Economic Cooperation
and Development in the Middle East and North Africa may subscribe
without fiscal year limitation to the callable capital portion of the
United States share of such capital stock in an amount not to exceed
$157,500,500.

Obligations by program activity:
Total obligations (object class 33.0) ............................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

54
–54

28
–28

30
–30

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

217
54
–30

240
28
–38

230
30
–45

240

230

215

Identification code 11–1028–0–1–151

1996 actual

1997 est.

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

1
29

1
37

1
44

87.00

Program and Financing (in millions of dollars)

86.90
86.93

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

54
30

28
38

30
45

1998 est.

Obligations by program activity:
10.00 Total obligations (object class 33.0) ............................ ................... ...................

22.00
23.95

53
–53

40.00
42.00

New budget authority (gross), detail:
Appropriation .................................................................. ................... ................... ...................
Transferred from other accounts ................................... ................... ...................
53

43.00

Appropriation (total) .................................................. ................... ...................

70.00

Total new budget authority (gross) .......................... ................... ...................

The Multilateral Investment Fund (MIF) is a component
of the Enterprise for the Americas Initiative, a program to
unlock the potential for domestic and foreign investment and
encourage market-based capital flows. The MIF, administered
by the Inter-American Development Bank, is a multilateral
fund which provides grants and loans to support investment
sector reforms. Special consideration is given to reforms that
encourage private foreign direct investment and promote privatization. Grants and loans are used for technical assistance

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

MULTILATERAL ASSISTANCE—Continued
General and special funds—Continued
CONTRIBUTION

ENTERPRISE FOR THE AMERICAS MULTILATERAL
INVESTMENT FUND—Continued

to identify and resolve investment constraints, for investment
in human capital, and for business infrastructure and
development.
The 1997 request for the MIF is $30 million for partial
payment of oustanding U.S. commitments to the U.S. share
of MIF resources.
INTERNATIONAL ORGANIZATIONS

AND

PROGRAMS

Program and Financing (in millions of dollars)

01.01
01.02
01.03
01.04
01.05
01.08

Obligations by program activity:
UNICEF ...........................................................................
UN Development Programme .........................................
UN Population Fund .......................................................
IAEA funded elsewhere in FY 97 ...................................
KEDO funded elsewhere in FY 97 ..................................
Various other organizations ...........................................

10.00

Total obligations (object class 41.0) ........................

1996 actual

1997 est.

1998 est.

100
100
52
76
5
43
36 ...................
22 ...................
52
71

100
100
30
36
30
69

267

365

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ................................................... ...................
22.00 New budget authority (gross) ........................................
285

290

21.40

23.90
23.95
24.40

285
–267

18 ...................
272
365
290
–290

New obligations .............................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts ..................................
Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

267
290
365
–302
–287
–342
1 ................... ...................
73

365
–365

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

226
76

204
83

274
68

87.00

Total outlays (gross) .................................................

302

287

342

89.00
90.00

For necessary expenses to carry out øthe provisions of¿ section
301 of the Foreign Assistance Act of 1961, and øof¿ section 2 of
the United Nations Environment Program Participation Act of 1973,
ø$169,950,000¿ $365,000,000: Provided, That ønone of the funds appropriated under this heading shall be made available for the United
Nations Fund for Science and Technology: Provided further, That
none of the funds appropriated under this heading that are made
available to the United Nations Population Fund (UNFPA) shall be
made available for activities in the People’s Republic of China: Provided further, That not more than $25,000,000 of the funds appropriated under this heading may be made available to the UNFPA:
Provided further, That not more than one-half of this amount may
be provided to UNFPA before March 1, 1997, and that no later
than February 15, 1997, the Secretary of State shall submit a report
to the Committees on Appropriations indicating the amount UNFPA
is budgeting for the People’s Republic of China in 1997: Provided
further, That any amount UNFPA plans to spend in the People’s
Republic of China in 1997 shall be deducted from the amount of
funds provided to UNFPA after March 1, 1997, pursuant to the previous provisos: Provided further, That with respect to any funds appropriated under this heading that are made available to UNFPA,
UNFPA shall be required to maintain such funds in a separate account and not commingle them with any other funds: Provided further, That none of the funds appropriated under this heading may
be made available to the Korean Peninsula Energy Development Organization (KEDO) or the International Atomic Energy Agency
(IAEA)¿ notwithstanding any other provision of law, funds may be
made available to the Korean Peninsula Energy Development Organization (KEDO). (Foreign Operations, Export Financing, and Related
Programs Appropriation Act, 1997.)

Identification code 72–1005–0–1–151

73.10
73.20
73.40
74.40

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

285
302

272
287

365
342

Status of Direct Loans (in millions of dollars)
1996 actual

Identification code 72–1005–0–1–151

1997 est.

1998 est.

1210
1251

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Repayments: Repayments and prepayments .................

36
–2

34
32
–2 ...................

1290

Outstanding, end of year ..........................................

In addition to its assessed payments, the United States
contributes to voluntary funds of over 25 international organizations and programs involved in a wide range of sustainable
development, humanitarian, and scientific activities. Any
funds made available for UNFPA will not be used for activities in the People’s Republic of China and will be maintained
in a separate account and not commingled with any other
funds.

Credit accounts:
DEBT RESTRUCTURING
For the cost, as defined in section 502 of the Congressional Budget
Act of 1974, of modifying direct loans and loan guarantees, as the
President may determine, for which funds have been appropriated
or otherwise made available for programs within the International
Affairs Budget Function 150, including the cost of selling, reducing,
or canceling amounts, through debt buybacks and swaps, owed to
the United States as a result of concessional loans made to eligible
Latin American and Caribbean countries, pursuant to part IV of
the Foreign Assistance Act of 1961ø,¿ ; and of modifying (a)
concessional loans authorized under title I of the Agricultural Trade
Development and Assistance Act of 1954, as amended, as authorized
under subsection (a) under the heading ‘‘Debt Reduction for Jordan’’
in title VI of Public Law 103–306; and (b) direct loans extended
to least developed countries, as authorized under section 411 of the
Agricultural Trade Development and Assistance Act of 1954, as
amended ø$27,000,000¿ $34,000,000, to remain available until expended, of which $20,000,000 shall be for modifications under (a)
and (b): Provided, That none of the funds appropriated under this
heading shall be obligated except as provided through the regular
notification procedures of the Committees on Appropriations. (Foreign
Operations, Export Financing, and Related Programs Appropriation
Act, 1997.)

18 ................... ...................

Unavailable Collections (in millions of dollars)
New budget authority (gross), detail:
40.00 Appropriation ..................................................................
285
42.00 Transferred from other accounts ................................... ...................

170
365
102 ...................

Identification code 11–0091–0–1–151

43.00

Appropriation (total) ..................................................

285

272

365

01.99

70.00

Total new budget authority (gross) ..........................

285

272

365

72.40

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................

1997 est.

1998 est.

Balance, start of year:
Balance, start of year .................................................... ...................
6
6
Receipts:
02.01 Downward reestimates and negative subsidies ............
6 ................... ...................
04.00
07.99

108

1996 actual

Total: Balances and collections ....................................
Total balance, end of year ............................................

6
6

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds

FUNDS APPROPRIATED TO THE PRESIDENT
AGENCY

Program and Financing (in millions of dollars)
Identification code 11–0091–0–1–151

1996 actual

1997 est.

1998 est.

FOR

INTERNATIONAL DEVELOPMENT
Federal Funds

General and special funds:
Obligations by program activity:
Debt Restructuring Subsidy: ‘‘Debt Reduction For the
Poorest’’ Program ...................................................... ...................
16
29
01.02 Jordan Debt Forgiveness ................................................ ...................
15
12
01.05 Reestimate of EAI Program Subsidy ..............................
26 ................... ...................
01.06 Interest on EAI Reestimate ............................................
2 ................... ...................
01.01

10.00

Total obligations (object class 41.0) ........................

15
38

25
27

21
34

53
–28

52
–31

55
–41

21.90

23.90
23.95
24.90

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
Permanent:
60.05
Appropriation (indefinite) ..........................................
70.00

Total new budget authority (gross) ..........................

Change in unpaid obligations:
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................

86.90
86.93
86.97

28 ................... ...................
38

28
–28

31
–31

41
–41

Outlays (gross), detail:
Outlays from new current authority .............................. ...................
20
22
Outlays from current balances ...................................... ...................
11
19
Outlays from new permanent authority .........................
28 ................... ...................

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

38
28

27
31

34
41

For the poorest and most heavily indebted countries, debt
reduction will be undertaken in concert with the Paris Club
of creditor nations to implement commitments made by G–
7 heads of state at recent Economic Summits. The Administration anticipates that $22 million in appropriations will permit debt reduction under Naples Terms for qualifying countries. As part of the $22 million, the Administration will be
seeking appropriations of $2.3 million, as well as the necessary authorization, to modify credits extended or guaranteed by the Commodity Credit Corporation for Honduras.
For Jordan, $12 million would be needed for the fourth
stage of debt forgiveness proposed as a result of the historic
peace agreement signed between the Hashemite Kingdom of
Jordan and the Government of Israel in 1994. This request
would further the commitment made by the United States
to Jordan in support of these peace efforts. The face value
to be forgiven stands at about $63 million.
For Latin America and the Caribbean, the Administration
proposes that debt reduction be effected at zero budget cost
through buybacks and swaps of eligible debt, linked to commitment of local currency payments to support environment
or child survival projects. The Administration will be seeking
new authority for no-cost buybacks and swaps of P.L. 480
debt, and the approval of the appropriators for this program.
For debt reduction for the poorest countries, resulting cash
flows have been recorded in the debt reduction financing accounts for the Export-Import Bank, the foreign military loans,
and for the Agency for International Development. Appropriate adjustments have been made to these agencies’ liquidating accounts. For Jordan debt forgiveness, appropriate
adjustments have been recorded in P.L. 480 financing and
liquidating accounts.

øCHILD SURVIVAL

AND

DISEASE PROGRAMS FUND¿

SUSTAINABLE DEVELOPMENT ASSISTANCE
For necessary expenses to carry out øthe provisions of part I and
chapter 4 of part II¿ sections 103 through 106 of the Foreign Assistance Act of 1961, øfor child survival, basic education, assistance to
combat tropical and other diseases, and related activities, in addition
to funds otherwise available for such purposes, $600,000,000¿
$998,000,000, to remain available until expended: Provided, That
øthis amount shall be made available for such activities as (1) immunization programs, (2) oral rehydration programs, (3) health and nutrition programs, and related education programs, which address the
needs of mothers and children, (4) water and sanitation programs,
(5) assistance for displaced and orphaned children, (6) programs for
the prevention, treatment, and control of, and research on, tuberculosis, HIV/AIDS, polio, malaria and other diseases, (7) not to exceed
$98,000,000 for basic education programs for children, and (8) a contribution on a grant basis to the United Nations Children’s Fund
(UNICEF) pursuant to section 301 of the Foreign Assistance Act
of 1961.¿
øDEVELOPMENT
ø(INCLUDING

ASSISTANCE¿

TRANSFER OF FUNDS)¿

øFor necessary expenses to carry out the provisions of sections
103 through 106 and chapter 10 of part I of the Foreign Assistance
Act of 1961, title V of the International Security and Development
Cooperation Act of 1980 (Public Law 96–533) and the provisions
of section 401 of the Foreign Assistance Act of 1969, $1,181,500,000,
to remain available until September 30, 1998: Provided, That of the
amount appropriated under this heading, up to $20,000,000 may be
made available for the Inter-American Foundation and shall be apportioned directly to that Agency: Provided further, That of the amount
appropriated under this heading, up to $11,500,000 may be made
available for the African Development Foundation and shall be apportioned directly to that agency: Provided further, That of the funds
appropriated under title II of this Act that are administered by the
Agency for International Development and made available for family
planning assistance, not less than 65 percent shall be made available
directly to the agency’s central Office of Population and shall be
programmed by that office for family planning activities: Provided
further, That of the funds appropriated under this heading and under
the heading ‘‘Child Survival and Disease Programs Fund’’ that are
made available by the Agency for International Development for development assistance activities, the amount made available to carry
out chapter 10 of part I of the Foreign Assistance Act of 1961 (relating to the Development Fund for Africa) and the amount made available for activities in the Latin America and Caribbean region should
be in at least the same proportion as the amount identified in the
fiscal year 1997 draft congressional presentation document for development assistance for each such region is to the total amount requested for development assistance for such fiscal year: Provided
further, That funds appropriated under this heading may be made
available, notwithstanding any other provision of law except section
515 of this Act, to assist Vietnam to reform its trade regime (such
as through reform of its commercial and investment legal codes):
Provided further, That none of the funds made available in this
Act nor any unobligated balances from prior appropriations may be
made available to any organization or program which, as determined
by the President of the United States, supports or participates in
the management of a program of coercive abortion or involuntary
sterilization: Provided further, That none of the funds made available
under this heading may be used to pay for the performance of abortion as a method of family planning or to motivate or coerce any
person to practice abortions; and that in order to reduce reliance
on abortion in developing nations, funds shall be available only to
voluntary family planning projects which offer, either directly or
through referral to, or information about access to, a broad range
of family planning methods and services: Provided further, That in
awarding grants for natural family planning under section 104 of
the Foreign Assistance Act of 1961 no applicant shall be discriminated against because of such applicant’s religious or conscientious
commitment to offer only natural family planning; and, additionally,
all such applicants shall comply with the requirements of the previous proviso: Provided further, That for purposes of this or any

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

AGENCY

FOR

INTERNATIONAL DEVELOPMENT—Continued

General and special funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
are deemed to be among the most cost-effective and successful providers of development assistance.¿ (Foreign Operations, Export Financing, and Related Programs Appropriation Act, 1997.)

SUSTAINABLE DEVELOPMENT ASSISTANCE—Continued
øDEVELOPMENT

ASSISTANCE¿—Continued

other Act authorizing or appropriating funds for foreign operations,
export financing, and related programs, the term ‘‘motivate’’, as it
relates to family planning assistance, shall not be construed to prohibit the provision, consistent with local law, of information or counseling about all pregnancy options: Provided further, That nothing
in this paragraph shall be construed to alter any existing statutory
prohibitions against abortion under section 104 of the Foreign Assistance Act of 1961ø: Provided further, That, notwithstanding section
109 of the Foreign Assistance Act of 1961, of the funds appropriated
under this heading in this Act, and of the unobligated balances of
funds previously appropriated under this heading, up to $17,500,000
may be transferred to ‘‘International Organizations and Programs’’
for a contribution to the International Fund for Agricultural Development (IFAD), and that any such transfer of funds shall be subject
to the regular notification procedures of the Committees on Appropriations: Provided further, That of the funds appropriated under
this heading that are made available for assistance programs for
displaced and orphaned children and victims of war, not to exceed
$25,000, in addition to funds otherwise available for such purposes,
may be used to monitor and provide oversight of such programs:
Provided further, That not less than $500,000 of the funds made
available under this heading shall be available only for support of
the United States Telecommunications Training Institute¿.
øCYPRUS¿
øOf the funds appropriated under the headings ‘‘Development Assistance’’ and ‘‘Economic Support Fund’’, not less than $15,000,000
shall be made available for Cyprus to be used only for scholarships,
administrative support of the scholarship program, bicommunal
projects, and measures aimed at reunification of the island and designed to reduce tensions and promote peace and cooperation between
the two communities on Cyprus.¿
øBURMA¿
øOf the funds appropriated by this Act to carry out the provisions
of chapter 4 of part II of the Foreign Assistance Act of 1961, not
less than $2,500,000 shall be made available to support activities
in Burma, along the Burma-Thailand border, and for activities of
Burmese student groups and other organizations located outside
Burma, for the purposes of fostering democracy in Burma, supporting
the provision of medical supplies and other humanitarian assistance
to Burmese located in Burma or displaced Burmese along the borders,
and for other purposes: Provided, That of this amount, not less than
$200,000 shall be made available to support newspapers, publications,
and other media activities promoting democracy inside Burma: Provided further, That funds made available under this heading may
be made available notwithstanding any other provision of law: Provided further, That provision of such funds shall be made available
subject to the regular notification procedures of the Committees on
Appropriations.¿
øPRIVATE

AND VOLUNTARY ORGANIZATIONS¿

øNone of the funds appropriated or otherwise made available by
this Act for development assistance may be made available to any
United States private and voluntary organization, except any cooperative development organization, which obtains less than 20 per centum
of its total annual funding for international activities from sources
other than the United States Government: Provided, That the requirements of the provisions of section 123(g) of the Foreign Assistance Act of 1961 and the provisions on private and voluntary organizations in title II of the ‘‘Foreign Assistance and Related Programs
Appropriations Act, 1985’’ (as enacted in Public Law 98–473) shall
be superseded by the provisions of this section, except that the authority contained in the last sentence of section 123(g) may be exercised by the Administrator with regard to the requirements of this
paragraph.
Funds appropriated or otherwise made available under title II of
this Act should be made available to private and voluntary organizations at a level which is equivalent to the level provided in fiscal
year 1995. Such private and voluntary organizations shall include
those which operate on a not-for-profit basis, receive contributions
from private sources, receive voluntary support from the public and

øINTERNATIONAL FUND

FOR

IRELAND¿

øFor necessary expenses to carry out the provisions of chapter
4 of part II of the Foreign Assistance Act of 1961, $19,600,000, which
shall be available for the United States contribution to the International Fund for Ireland and shall be made available in accordance
with the provisions of the Anglo-Irish Agreement Support Act of
1986 (Public Law 99–415): Provided, That such amount shall be expended at the minimum rate necessary to make timely payment
for projects and activities: Provided further, That funds made available under this heading shall remain available until September 30,
1998.¿ (Foreign Operations, Export Financing, and Related Programs
Appropriation Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 72–1021–0–1–151

00.01
00.02
10.00

1996 actual

Obligations by program activity:
Functional development assistance ..............................
1,387
Child Survival and Disease Programs ........................... ...................

1997 est.

1998 est.

1,534
998
500 ...................

Total obligations ........................................................

1,387

2,034

998

110
1,647

404 ...................
1,630
998

21.40

23.90
23.95
24.40

33 ................... ...................
1,790
–1,387

2,034
–2,034

998
–998

404 ................... ...................

New budget authority (gross), detail:
Current:
Appropriation:
40.00
Appropriation .........................................................
1,675
1,182
998
40.00
Appropriation ......................................................... ...................
600 ...................
40.35
Appropriation rescinded ............................................
–1 ................... ...................
41.00
Transferred to other accounts ...................................
–32
–152 ...................
43.00
68.00
70.00

Appropriation (total) .............................................
Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

1,642

Total new budget authority (gross) ..........................

1,647

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1,630

998

5 ................... ...................
1,630

998

72.40

1,513
1,506
2,247
1,387
2,034
998
–1,360
–1,293
–1,310
–33 ................... ...................
1,506

2,247

1,935

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

67
1,293

116
1,177

71
1,239

87.00

Total outlays (gross) .................................................

1,360

1,293

1,310

Offsets:
Against gross budget authority and outlays:
88.45
Offsetting collections (cash) from: Offsetting governmental collections ............................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

–5 ................... ...................

1,642
1,355

1,630
1,293

998
1,310

Sustainable Development Assistance Program.—This program provides economic resources to developing countries
with the aim of bringing the benefits of development to the
poor. The program promotes broad-based, self-sustaining economic growth, supports initiatives intended to: stabilize popu-

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

FUNDS APPROPRIATED TO THE PRESIDENT

lation growth, protect the environment and foster increased
democratic participation in developing countries. The program
is concentrated in those areas in which the United States
has special expertise and which promise the greatest opportunity for the poor to better their lives.
Object Classification (in millions of dollars)
1996 actual

Identification code 72–1021–0–1–151

1997 est.

1998 est.

21.40

23.90
23.95
24.40

63
463

119 ...................
475
492

8 ................... ...................
–3 ................... ...................
531
–412

594
–594

492
–492

119 ................... ...................

22.0
23.2
25.1
25.2
41.0

Transportation of things ................................................
Rental payments to others ............................................
Advisory and assistance services ..................................
Other services ................................................................
Grants, subsidies, and contributions ............................

3
9
56
177
1,142

3
10
64
195
1,762

2
5
32
94
865

40.00
41.00

New budget authority (gross), detail:
Appropriation ..................................................................
Transferred to other accounts .......................................

99.9

Total obligations ........................................................

1,387

2,034

998

43.00

Appropriation (total) ..................................................

463

475

492

70.00

Total new budget authority (gross) ..........................

463

475

492

ASSISTANCE

FOR

EASTERN EUROPE

AND THE

BALTIC STATES

72.40

(a) For necessary expenses to carry out the provisions of the Foreign Assistance Act of 1961 and the Support for East European Democracy (SEED) Act of 1989, ø$475,000,000¿ $492,000,000, to remain
available until øSeptember 30, 1998¿ expended, which shall be available, notwithstanding any other provision of law, for economic assistance and for related programs for Eastern Europe and the Baltic
States.
(b) Funds appropriated under this heading or in prior appropriations Acts that are or have been made available for an Enterprise
Fund may be deposited by such Fund in interest-bearing accounts
prior to the Fund’s disbursement of such funds for program purposes.
The Fund may retain for such program purposes any interest earned
on such deposits without returning such interest to the Treasury
of the United States and without further appropriation by the Congress. Funds made available for Enterprise Funds shall be expended
at the minimum rate necessary to make timely payment for projects
and activities.
(c) Funds appropriated under this heading shall be considered to
be economic assistance under the Foreign Assistance Act of 1961
for purposes of making available the administrative authorities contained in that Act for the use of economic assistance.
ø(d) None of the funds appropriated under this heading may be
made available for new housing construction or repair or reconstruction of existing housing in Bosnia and Herzegovina unless directly
related to the efforts of United States troops to promote peace in
said country.¿
ø(e) With regard to funds appropriated or otherwise made available
under this heading for the economic revitalization program in Bosnia
and Herzegovina, and local currencies generated by such funds (including the conversion of funds appropriated under this heading into
currency used by Bosnia and Herzegovina as local currency and local
currency returned or repaid under such program)—¿
ø(1) the Administrator of the Agency for International Development shall provide written approval for grants and loans prior
to the obligation and expenditure of funds for such purposes, and
prior to the use of funds that have been returned or repaid to
any lending facility or grantee; and¿
ø(2) the provisions of section 531 of this Act shall apply.¿
ø(f) With regard to funds appropriated under this heading that
are made available for economic revitalization programs in Bosnia
and Herzegovina, 50 percent of such funds shall not be available
for obligation unless the President determines and certifies to the
Committees on Appropriations that the Federation of Bosnia and
Herzegovina has complied with article III of annex 1–A of the General
Framework Agreement for Peace in Bosnia and Herzegovina concerning the withdrawal of foreign forces, and that intelligence cooperation
on training, investigations, and related activities between Iranian
officials and Bosnian officials has been terminated.¿ (Foreign Operations, Export Financing, and Related Programs Appropriation Act,
1997.)
Program and Financing (in millions of dollars)
Identification code 72–1010–0–1–151

10.00

Obligations by program activity:
Total obligations ............................................................

1996 actual

412

1997 est.

594

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

522
475
492
–59 ................... ...................

1998 est.

492

879
839
936
412
594
492
–444
–497
–491
–8 ................... ...................
839

936

937

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

97
347

124
373

125
366

87.00

Total outlays (gross) .................................................

444

497

491

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

463
444

475
497

492
491

This account provides funds to support democracy and economic restructuring in Central and Eastern European countries, including the new Baltic republics, consistent with the
objectives of the Support for East European Democracy
(SEED) Act. All SEED programs support one or more of the
following strategic objectives: promoting broad-based economic
growth (with an emphasis on privatization, legal and regulatory reform and support for the emerging private sector);
encouraging democratic reforms; and improving the quality
of life (including protecting the environment and providing
humanitarian assistance).
The 1998 budget request includes $200 million for the last
of three installments of the U.S. pledge of $600 million in
reconstruction assistance for Bosnia.
Object Classification (in millions of dollars)
1996 actual

Identification code 72–1010–0–1–151

11.8
21.0
25.1
25.2
41.0
99.0
41.0
99.9

1997 est.

1998 est.

2
1
27
85
281

3
1
40
125
425

3
1
36
107
345

Subtotal, direct obligations ..................................
Allocation Account: Grants, subsidies, and contributions ...........................................................................

396

594

492

Total obligations ........................................................

412

ASSISTANCE

FOR THE

16 ................... ...................

NEW INDEPENDENT STATES
SOVIET UNION

594

OF THE

492

FORMER

(a) For necessary expenses to carry out the provisions of chapter
11 of part I of the Foreign Assistance Act of 1961 and the FREEDOM
Support Act, for assistance for the new independent states of the
former Soviet Union and for related programs, ø$625,000,000¿
$900,000,000, to remain available until øSeptember 30, 1998¿ ex-

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

AGENCY

FOR

THE BUDGET FOR FISCAL YEAR 1998

INTERNATIONAL DEVELOPMENT—Continued

General and special funds—Continued
ASSISTANCE

NEW INDEPENDENT STATES
SOVIET UNION—Continued

FOR THE

OF THE

FORMER

pended: Provided, That the provisions of such chapter shall apply
to funds appropriated by this paragraph.
(b) Of the funds made available under this heading, not to exceed
$50,000,000 is for the cost of guaranteed loans made to the U.S.
Russia Investment Fund, as authorized by section 635 of the Foreign
Assistance Act of 1961, as amended: Provided, That such costs, including the cost of modifying such loans, shall be as defined in section
502 of the Congressional Budget Act of 1974: Provided further, That
these funds are available to subsidize total loan principal, any part
of which is to be guaranteed, not to exceed $100,000,000.
ø(b) None of the funds appropriated under this heading shall be
transferred to the Government of Russia—¿
ø(1) unless that Government is making progress in implementing
comprehensive economic reforms based on market principles, private ownership, negotiating repayment of commercial debt, respect
for commercial contracts, and equitable treatment of foreign private
investment; and¿
ø(2) if that Government applies or transfers United States assistance to any entity for the purpose of expropriating or seizing ownership or control of assets, investments, or ventures.¿
ø(c) Funds may be furnished without regard to subsection (b) if
the President determines that to do so is in the national interest.¿
ø(d) None of the funds appropriated under this heading shall be
made available to any government of the new independent states
of the former Soviet Union if that government directs any action
in violation of the territorial integrity or national sovereignty of any
other new independent state, such as those violations included in
the Helsinki Final Act: Provided, That such funds may be made
available without regard to the restriction in this subsection if the
President determines that to do so is in the national security interest
of the United States: Provided further, That the restriction of this
subsection shall not apply to the use of such funds for the provision
of assistance for purposes of humanitarian, disaster and refugee relief.¿
ø(e) None of the funds appropriated under this heading for the
new independent states of the former Soviet Union shall be made
available for any state to enhance its military capability: Provided,
That this restriction does not apply to demilitarization or nonproliferation programs.¿
ø(f) Funds appropriated under this heading shall be subject to
the regular notification procedures of the Committees on Appropriations.¿
ø(g) Funds made available in this Act for assistance to the new
independent states of the former Soviet Union shall be subject to
the provisions of section 117 (relating to environment and natural
resources) of the Foreign Assistance Act of 1961.¿
ø(h)(1) Of the funds appropriated under title II of this Act, including funds appropriated under this heading, not less than $10,000,000
shall be available only for assistance for Mongolia, of which amount
not less than $6,000,000 shall be available only for the Mongolian
energy sector.¿
ø(2) Funds made available for assistance for Mongolia may be made
available in accordance with the purposes and utilizing the authorities provided in chapter 11 of part I of the Foreign Assistance Act
of 1961.¿
ø(i) Funds made available in this Act for assistance to the New
Independent States of the former Soviet Union shall be provided
to the maximum extent feasible through the private sector, including
small- and medium-size businesses, entrepreneurs, and others with
indigenous private enterprises in the region, intermediary development organizations committed to private enterprise, and private voluntary organizations: Provided, That grantees and contractors should,
to the maximum extent possible, place in key staff positions specialists with prior on the ground expertise in the region of activity
and fluency in one of the local languages.¿
ø(j) In issuing new task orders, entering into contracts, or making
grants, with funds appropriated under this heading or in prior appropriations Acts, for projects or activities that have as one of their
primary purposes the fostering of private sector development, the
Coordinator for United States Assistance to the New Independent
States and the implementing agency shall encourage the participation
of and give significant weight to contractors and grantees who propose investing a significant amount of their own resources (including

volunteer services and in-kind contributions) in such projects and
activities.¿
ø(k) Of the funds made available under this heading, not less
than $225,000,000 shall be made available for Ukraine, of which
funds not less than $25,000,000 shall be made available to carry
out United States decommissioning obligations regarding the
Chernobyl plant made in the Memorandum of Understanding between the Government of Ukraine and the G–7 Group: Provided,
That not less than $35,000,000 shall be made available for agricultural projects, including those undertaken through the Food Systems
Restructuring Program, which leverage private sector resources with
United States Government assistance: Provided further, That
$5,000,000 shall be available for a small business incubator project:
Provided further, That $5,000,000 shall be made available for screening and treatment of childhood mental and physical illnesses related
to Chernobyl radiation: Provided further, That $5,000,000 shall be
available only for a land and resource management institute to identify nuclear contamination at Chernobyl: Provided further, That
$15,000,000 shall be available for the legal restructuring necessary
to support a decentralized market-oriented economic system, including enactment of necessary substantive commercial law, implementation of reforms necessary to establish an independent judiciary and
bar, legal education for judges, attorneys, and law students, and
education of the public designed to promote understanding of a lawbased economy.¿
ø(l) Of the funds made available for Ukraine, under this Act and
Public Law 104–107, not less than $50,000,000 shall be made available to improve safety at nuclear reactors: Provided, That of this
amount $20,000,000 shall be provided for the purchase and installation of, and training for, safety parameter display or control systems
at all operational nuclear reactors: Provided further, That of this
amount, $20,000,000 shall be made available for the purchase, construction, installation and training for Full Scope and Analytical/
Engineering simulators: Provided further, That of this amount funds
shall be made available to conduct Safety Analysis Reports at all
operational nuclear reactors.¿
ø(m) Of the funds made available by this Act, not less than
$95,000,000 shall be made available for Armenia.¿
ø(n)¿ (c) Funds appropriated under this heading or in prior appropriations Acts that are or have been made available for an Enterprise
Fund may be deposited by such Fund in interest-bearing accounts
prior to the disbursement of such funds by the Fund for program
purposes. The Fund may retain for such program proposes any interest earned on such deposits without returning such interest to the
Treasury of the United States and without further appropriation by
the Congress. Funds made available for Enterprise Funds shall be
expended at the minimum rate necessary to make timely payment
for projects and activities.
ø(o)(1) None of the funds appropriated under this heading may
be made available for Russia unless the President determines and
certifies in writing to the Committees on Appropriations that the
Government of Russia has terminated implementation of arrangements to provide Iran with technical expertise, training, technology,
or equipment necessary to develop a nuclear reactor or related nuclear research facilities or programs.¿
ø(2) Paragraph (1) shall not apply if the President determines that
making such funds available is important to the national security
interest of the United States. Any such determination shall cease
to be effective six months after being made unless the President
determines that its continuation is important to the national security
interest of the United States.¿
ø(p) Of the funds made available under this heading, not less
than $10,000,000 shall be made available for a United States contribution to the Trans-Caucasus Enterprise Fund: Provided, That to
further the development of the private sector in the Trans-Caucasus,
such amount and amounts appropriated for purposes of subsection
(t) under the heading ‘‘Assistance for the New Independent States
of the Former Soviet Union’’ in Public Law 104–107 may be invested
in a Trans-Caucasus Enterprise Fund or, notwithstanding the provisions of such subsection, invested in other funds established by public
or private organizations, or transferred to the Overseas Private Investment Corporation to be available, subject to the requirements
of the Federal Credit Reform Act, to subsidize the costs of direct
and guaranteed loans.¿
ø(q)(1) Funds appropriated under this heading may not be made
available for the Government of Ukraine if the President determines
and reports to the Committees on Appropriations that the Govern-

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

FUNDS APPROPRIATED TO THE PRESIDENT
ment of Ukraine is engaged in military cooperation with the Government of Libya.¿
ø(2) Paragraph (1) shall not apply if the President determines that
making such funds available is important to the national security
interest of the United States. Any such determination shall cease
to be effective six months after being made unless the President
determines that its continuation is important to the national security
interest of the United States.¿
ø(r) Of the funds appropriated under this heading, not less than
$15,000,000 should be available only for a family planning program
for the New Independent States of the former Soviet Union comparable to the family planning program currently administered by
the Agency for International Development in the Central Asian Republics and focusing on population assistance which provides an alternative to abortion.¿
ø(s) Funds made available under this Act or any other Act (other
than assistance under title V of the FREEDOM Support Act and
section 1424 of the ‘‘National Defense Authorization Act for Fiscal
Year 1997’’) may not be provided for assistance to the Government
of Azerbaijan until the President determines, and so reports to the
Congress, that the Government of Azerbaijan is taking demonstrable
steps to cease all blockades and other offensive uses of force against
Armenia and Nagorno-Karabakh.¿
ø(t) Of the funds appropriated under this heading, not less than
$2,500,000 shall be made available for the American-Russian Center.¿ (Foreign Operations, Export Financing, and Related Programs
Appropriation Act, 1997.)

nership with the New Independent States (NIS); and providing access to each other’s markets, resources, and expertise.
The 1998 budget request includes funding for a new ‘‘Partnership for Freedom’’ initiative, designed to foster economic
growth, promote U.S. trade and investment, fight crime, and
build civil societies in the NIS.
Object Classification (in millions of dollars)

10.00

Obligations by program activity:
Total obligations ............................................................

1996 actual

11.8
21.0
25.1
25.2
26.0
31.0
41.0

Direct obligations:
Personnel compensation: Special personal services
payments ...............................................................
Travel and transportation of persons .......................
Advisory and assistance services .............................
Other services ............................................................
Supplies and materials .............................................
Equipment .................................................................
Grants, subsidies, and contributions ........................
Subtotal, direct obligations ..................................
Allocation Account: Grants, subsidies, and contributions ...........................................................................

506

99.9

Total obligations ........................................................

546

1998 est.

546

842

900

232
518

262 ...................
576
900

FOR

1997 est.

1998 est.

3
5
5
3
4
5
46
72
75
144
211
230
1 ................... ...................
2 ................... ...................
307
550
585

99.0
41.0

DEVELOPMENT FUND
1997 est.

1996 actual

Identification code 72–1093–0–1–151

Program and Financing (in millions of dollars)
Identification code 72–1093–0–1–151

842

900

40 ................... ...................
842

900

AFRICA

For necessary expenses to carry out chapter 10 of part I of the
Foreign Assistance Act of 1961, $700,000,000, to remain available
until expended: Provided, That notwithstanding section 496(n)(2) of
such Act, funds appropriated by this Act may be transferred between
this account and other sustainable development assistance accounts,
as authorized by section 109 of such Act.
Program and Financing (in millions of dollars)

21.40

75 ................... ...................
–26
–1 ...................
10
5 ...................

Identification code 72–1014–0–1–151

1996 actual

1997 est.

1998 est.

809
–546

842
–842

900
–900

262 ................... ...................

40.00
40.35
41.00

New budget authority (gross), detail:
Appropriation ..................................................................
Appropriation rescinded .................................................
Transferred to other accounts .......................................

43.00

Appropriation (total) ..................................................

518

576

900

70.00

Total new budget authority (gross) ..........................

518

576

Obligations by program activity:
Development Grants .......................................................

124

700

10.00
23.90
23.95
24.40

00.01

Total obligations ........................................................

124

700

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
141
70 ...................
22.00 New budget authority (gross) ........................................ ................... ...................
700
22.10 Resources available from recoveries of prior year obligations .......................................................................
54 ................... ...................
21.40

900

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

641
625
900
–1 ................... ...................
–122
–49 ...................

23.90
23.95
24.40

40.00
1,390
1,097
1,242
546
842
900
–765
–696
–697
–75 ................... ...................
1,097

1,242

1,445

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

51
714

54
642

61
636

87.00

Total outlays (gross) .................................................

765

696

697

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

518
765

576
696

195
–124

70
–70

70 ................... ...................

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

700
–700

700

72.40

900
697

86.90
86.93
87.00

This account provides funds for a program of assistance
to the independent states that emerged from the former Soviet Union. These funds support U.S. foreign policy goals of
consolidating improved U.S. security; building a lasting part-

89.00
90.00

1,892
1,316
914
124
70
700
–645
–472
–337
–54 ................... ...................
914

1,277

Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................
Outlays from current balances ......................................
645
472

50
287

Total outlays (gross) .................................................

1,316

645

472

337

700
337

The Development Fund for Africa account provides development assistance to sub-Saharan African countries. This ac-

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

FOR

74.40

INTERNATIONAL DEVELOPMENT—Continued

Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

86.93

AGENCY

Outlays (gross), detail:
Outlays from current balances ......................................

89.00
90.00

General and special funds—Continued
DEVELOPMENT FUND

FOR

AFRICA—Continued

count is designed to enhance the Agency for International
Development’s (USAID’s) effectiveness in meeting Africa’s development requirements. These resources finance both project
and non-project assistance to address shared development
program and policy objectives in reform-oriented African countries. These funds also support initiatives intended to promote
economic growth, stabilize population growth, protect the environment and foster increased democratic participation.
Object Classification (in millions of dollars)
1996 actual

Identification code 72–1014–0–1–151

22.0
23.2
25.1
25.2
26.0
41.0
99.0
41.0
99.9

1997 est.

1998 est.

Direct obligations:
Transportation of things ........................................... ................... ...................
1
Rental payments to others ........................................ ................... ...................
4
Advisory and assistance services .............................
7
2
25
Other services ............................................................
27
8
75
Supplies and materials .............................................
5 ................... ...................
Grants, subsidies, and contributions ........................
82
60
595
Subtotal, direct obligations ..................................
Allocation Account: Grants, subsidies, and contributions ...........................................................................

SUB-SAHARAN AFRICA DISASTER ASSISTANCE
Program and Financing (in millions of dollars)
Identification code 72–1040–0–1–151

1996 actual

1997 est.

1998 est.

124

700

3 ................... ...................
70

Budgetary resources available for obligation:
Resources available from recoveries of prior year obligations .......................................................................
24.40 Unobligated balance available, end of year:
Uninvested balance ...................................................

2 ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

121

Total obligations ........................................................

Funding for American Schools and Hospitals Abroad as a
separate account ceased in 1994. Financing of key institutions
that meet important foreign policy and developmental criteria
will be done within the regular economic and development
assistance accounts.

14
8
4
–5
–4
–2
–2 ................... ...................

22.10

2 ................... ...................

700
72.40

SAHEL DEVELOPMENT PROGRAM
Program and Financing (in millions of dollars)
1996 actual

Identification code 72–1012–0–1–151

1997 est.

1998 est.

86.93

Obligations by program activity:
00.01 Development Grants .......................................................
Total obligations (object class 41.0) ........................

1 ................... ...................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
23.95 New obligations .............................................................
24.40 Unobligated balance available, end of year:
Uninvested balance ...................................................

1
1 ...................
–1 ................... ...................

12
3
1
1 ................... ...................
–10
–2
–1

89.00
90.00

1 ................... ...................

10.00

Outlays (gross), detail:
Outlays from current balances ......................................

21.40

1 ................... ...................

In 1993 this account provided funding for timely relief,
rehabilitation and reconstruction for disasters in Africa. Since
1994 these activities have been funded under the International Disaster Assistance Program.

72.40

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

1 ...................

INTERNATIONAL DISASTER ASSISTANCE
For necessary expenses for international disaster relief, rehabilitation, and reconstruction assistance pursuant to section 491 of the
Foreign Assistance Act of 1961, as amended, $190,000,000, to remain
available until expended. (Foreign Operations, Export Financing, and
Related Programs Appropriation Act, 1997.)

Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ................... ...................
90.00 Outlays ...........................................................................
10
2
1

Program and Financing (in millions of dollars)
Identification code 72–1035–0–1–151

10.00

The Sahel Development account provided assistance to African countries.

Obligations by program activity:
Total obligations ............................................................

1996 actual

1997 est.

1998 est.

166

235

190

23
181

45 ...................
190
190

21.40

AMERICAN SCHOOLS

AND

HOSPITALS ABROAD

Program and Financing (in millions of dollars)
Identification code 11–1013–0–1–151

1996 actual

1997 est.

1998 est.

23.90
23.95
24.40

6 ................... ...................
210
–166

235
–235

190
–190

45 ................... ...................

72.40

19
13
10
–5
–3
–3
–1 ................... ...................

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

181

190

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

FUNDS APPROPRIATED TO THE PRESIDENT
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

213
226
299
166
235
190
–146
–162
–178
–6 ................... ...................
226

299

311

Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
86.93 Outlays from current balances ......................................

21
125

48
114

48
130

87.00

146

162

178

Total outlays (gross) .................................................

181
146

190
162

190
178

Funds for the International Disaster Assistance Program
provide relief, rehabilitation, and reconstruction assistance to
foreign countries struck by disasters such as famines, floods,
hurricanes and earthquakes, and support assistance in disaster preparedness, prevention and mitigation as well as the
longer term recovery efforts managed by the Office of Transition Initiatives. It also includes assistance for rehabilitation
and resettlement of displaced Kurds in Northern Iraq assisted
prior to FY 1996 under ‘‘Operation Provide Comfort’’ funded
by the Department of Defense.

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
42.00
Transferred from other accounts ..............................

466
3

471
473
18 ...................

43.00

Appropriation (total) .............................................
Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

469

489

473

Total new budget authority (gross) ..........................

475

495

479

68.00
70.00

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

177
168
166
487
532
496
–472
–520
–463
2 ................... ...................
–26
–14
–12
168

166

187

86.90
86.93
86.97

342
124
6

362
152
6

350
107
6

87.00

Total outlays (gross) .................................................

472

520

463

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–6

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

469
467

489
514

473
457

Object Classification (in millions of dollars)
1996 actual

Identification code 72–1035–0–1–151

11.8

1997 est.

1998 est.

21.0
22.0
25.2
26.0
41.0

Personnel compensation: Special personal services
payments ...................................................................
Travel and transportation of persons ............................
Transportation of things ................................................
Other services ................................................................
Supplies and materials .................................................
Grants, subsidies, and contributions ............................

4
1
1
15
4
141

5
1
2
20
5
202

5
1
1
17
6
160

99.9

Total obligations ........................................................

166

235

190

OPERATING EXPENSES

OF THE AGENCY FOR
DEVELOPMENT

These funds cover the appropriated dollar costs of managing
Agency for International Development (USAID) programs, including salaries and other expenses of direct hire personnel.
USAID currently maintains resident staff in more than 80
foreign countries as well as a headquarters in Washington
which supports field programs and manages regional and
worldwide activities.
Object Classification (in millions of dollars)

INTERNATIONAL

Identification code 72–1000–0–1–151

For necessary expenses to carry out the provisions of section 667,
ø$470,750,000: Provided, That none of the funds appropriated by
this Act for programs administered by the Agency for International
Development may be used to finance printing costs of any report
or study (except feasibility, design, or evaluation reports or studies)
in excess of $25,000 without the approval of the Administrator of
the Agency or the Administrator’s designee¿ $473,000,000, to remain
available until September 30, 1999. (Foreign Operations, Export Financing, and Related Programs Appropriation Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 72–1000–0–1–151

89.00
90.00

1996 actual

1997 est.

1998 est.

11.1
11.3
11.5
11.8
11.9
12.1
13.0
21.0
22.0
23.1
23.2
23.3

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other than full-time permanent ...........................
Other personnel compensation .............................
Special personal services payments ....................

1996 actual

1997 est.

1998 est.

179
6
8
37

170
5
8
38

169
5
9
37

Total personnel compensation .........................
230
Civilian personnel benefits .......................................
62
Benefits for former personnel ...................................
2
Travel and transportation of persons .......................
20
Transportation of things ...........................................
11
Rental payments to GSA ...........................................
5
Rental payments to others ........................................
28
Communications, utilities, and miscellaneous
charges .................................................................
14
Printing and reproduction .........................................
1
Advisory and assistance services .............................
2
Other services ............................................................
52
Purchases of goods and services from Government
accounts ................................................................
5
Operation and maintenance of facilities ..................
7
Operation and maintenance of equipment ...............
11
Supplies and materials .............................................
7
Equipment .................................................................
23
Land and structures .................................................. ...................
Grants, subsidies, and contributions ........................
2
Insurance claims and indemnities ...........................
1

221
63
1
27
10
11
34

220
63
1
25
9
26
24

14
1
7
48

14
1
5
44

00.01
00.02
00.03

Obligations by program activity:
Direct program ...............................................................
Direct Obligations—Accrued Separation Liability TF
Reimbursable program ..................................................

478
3
6

524
2
6

488
2
6

10.00

Total obligations ........................................................

487

532

496

27
475

40
495

17
479

528
–487

549
–532

508
–496

99.0
99.0
99.5

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................
Below reporting threshold ..............................................

483
6
–2

525
6
1

489
6
1

99.9

Total obligations ........................................................

487

532

496

21.40

23.90
23.95
24.40

24.0
25.1
25.2
25.3
25.4
25.7
26.0
31.0
32.0
41.0
42.0

21
21
7
6
13
13
7
6
36
8
1 ...................
2
2
1
1

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

AGENCY

FOR

THE BUDGET FOR FISCAL YEAR 1998
10.00

INTERNATIONAL DEVELOPMENT—Continued

Total obligations ........................................................

8
30

4
29

General and special funds—Continued
Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................
22.30 Unobligated balance expiring ........................................

OPERATING EXPENSES OF THE AGENCY FOR INTERNATIONAL
DEVELOPMENT—Continued

21.40

Personnel Summary
Identification code 72–1000–0–1–151

Direct:
Total compensable workyears:
1001
Full-time equivalent employment ..............................
1005
Full-time equivalent of overtime and holiday hours
1011
Exempt Full-time equivalent employment .................
Reimbursable:
2001 Total compensable workyears: Full-time equivalent
employment ...............................................................

PAYMENT

TO THE

1996 actual

1997 est.

1998 est.

3,090
13
26

2,799
13
27

2,703
13
27

FOREIGN SERVICE RETIREMENT
FUND

AND

23.90
23.95
24.40

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

39
–31

38
–34

33
–33

4 ...................

72.40

DISABILITY

For payment to the Foreign Service Retirement and Disability
Fund, as authorized by law, ø$43,826,000¿ $44,208,000. (Foreign Operations, Export Financing, and Related Programs Appropriation Act,
1997.)
Program and Financing (in millions of dollars)
Identification code 72–1036–0–1–153

2 ................... ...................
–1 ................... ...................

12
7
12
31
34
33
–33
–29
–26
–2 ................... ...................
7

1997 est.

1998 est.

10.00

Obligations by program activity:
Total obligations (object class 13.0) ............................

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

44
–44

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

73.10
73.20

Change in unpaid obligations:
New obligations .............................................................
Total outlays (gross) ......................................................

44
–44

86.90

Outlays (gross), detail:
Outlays from new current authority ..............................

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

44
44

23
10

21
8

20
6

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

30
33

30
29

29
26

89.00
90.00

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

22.00
23.95

86.90
86.93
87.00

1996 actual

The appropriation requested is to finance the 1996 installment of the unfunded liability created by the addition of
the Agency for International Development (USAID). Foreign
Service personnel to the foreign service retirement system
and by subsequent salary increases and changes in legislation
affecting benefits.
OPERATING EXPENSES OF THE AGENCY FOR INTERNATIONAL
DEVELOPMENT OFFICE OF INSPECTOR GENERAL
For necessary expenses to carry out the provisions of section 667,
ø$30,000,000¿ $29,047,000, to remain available until øSeptember 30,
1998¿ expended, which sum shall be available for the Office of the
Inspector General of the Agency for International Development. (Foreign Operations, Export Financing, and Related Programs Appropriation Act, 1997.)

The funds cover the costs of operations of the Office of
the Inspector General, Agency for International Development,
and include salaries, expenses, and support costs of the Inspector General’s personnel as well as costs associated with
providing for the physical security of Agency personnel at
overseas missions.
Object Classification (in millions of dollars)
1996 actual

Identification code 72–1007–0–1–151

11.1
11.5
11.8
11.9
12.1
21.0
22.0
23.1
23.2
25.2
25.3
31.0
32.0
99.5
99.9

Personnel compensation:
Full-time permanent ..................................................
Other personnel compensation ..................................
Special personal services payments .........................

Total obligations ........................................................

Obligations by program activity:
00.01 Direct program ...............................................................

14
1
1

Personnel Summary
Identification code 72–1007–0–1–151

1996 actual

15
1
1

1998 est.

Total personnel compensation ..............................
16
17
16
Civilian personnel benefits ............................................
4
4
4
Travel and transportation of persons ............................
2
2
2
Transportation of things ................................................
1
1 ...................
Rental payments to GSA ................................................
1
1
2
Rental payments to others ............................................
1
2
1
Other services ................................................................
2
3
3
Purchases of goods and services from Government
accounts ....................................................................
2
2
2
Equipment ......................................................................
1
1
1
Land and structures ...................................................... ................... ...................
1
Below reporting threshold ..............................................
1
1
1

Program and Financing (in millions of dollars)
Identification code 72–1007–0–1–151

14
1
1

1997 est.

1996 actual

1997 est.

1998 est.

1001
1005

Total compensable workyears:
Full-time equivalent employment ..................................
Full-time equivalent of overtime and holiday hours

207
1

230
1

229
1

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

FUNDS APPROPRIATED TO THE PRESIDENT
Public enterprise funds:

grams. Excess property, most of it obtained from the Department of Defense, includes heavy construction equipment, vehicles, heavy machinery, electrical generating equipment, and
medical equipment and supplies. The program is self-financed
from service fees and reimbursements by equipment purchasers ultimately funded from development assistance appropriations to the Agency for International Development.

PROPERTY MANAGEMENT FUND
Program and Financing (in millions of dollars)
1996 actual

Identification code 72–4175–0–3–151

10.00

1997 est.

1998 est.

Obligations by program activity:
Total obligations (object class 32.0) ............................ ................... ...................

Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................

Balance Sheet (in millions of dollars)
2
2

4
6
2 ...................

Identification code 72–4590–0–4–151

1101
23.90
23.95
24.40

Total budgetary resources available for obligation
4
6
6
New obligations ............................................................. ................... ...................
–6
Unobligated balance available, end of year:
Uninvested balance ...................................................
4
6 ...................

New budget authority (gross), detail:
68.00 Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................

1999

Total assets ........................................
NET POSITION:
3300 Cumulative results of operations ............

1995 actual

1996 actual

1997 est.

1998 est.

3999
2

2 ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
1 ................... ...................
73.10 New obligations ............................................................. ................... ...................
6
73.20 Total outlays (gross) ......................................................
–1 ................... ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ................... ...................
6

Total net position ................................

4999

Total liabilities and net position ............

72.40

Outlays (gross), detail:
86.98 Outlays from permanent balances ................................
Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

1 ................... ...................

ASSISTANCE FOR THE NEW INDEPENDENT STATES OF THE FORMER
SOVIET UNION: UKRAINE EXPORT CREDIT INSURANCE PROGRAM
ACCOUNT
Program and Financing (in millions of dollars)
Identification code 72–0402–0–1–151

1996 actual

1997 est.

1998 est.

00.02
–2

–2 ...................

Obligations by program activity:
Guaranty Loan Subsidy ..................................................

8 ...................

10.00

Total obligations (object class 41.0) ........................

8 ...................

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
16
13 ...................
22.21 Unobligated balance transferred to NIS account .......... ...................
–5 ...................
22.22 Unobligated balance transferred from NIS account
7 ................... ...................

21.90

This Fund, as authorized by Public Law 101–513, is maintained for the deposit of proceeds from the sale of overseas
property acquired by the Agency for International Development (USAID). The proceeds are available to construct or
otherwise acquire outside the United States (1) essential living quarters, office space, and necessary supporting facilities
for use of USAID personnel, and (2) schools (including dormitories and boarding facilities) and hospitals for use of
USAID personnel, U.S. Government personnel, and their dependents. In addition, the proceeds may be used to equip,
staff, operate, and maintain such schools and hospitals.

23.90
23.95
24.90

89.00
90.00

23
–11

8 ...................
–8 ...................

13 ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation ............................................................. ...................
11
73.10 New obligations .............................................................
11
8
73.20 Total outlays (gross) ...................................................... ...................
–19
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
11 ...................
72.40

...................
...................
...................
...................

86.93

Outlays (gross), detail:
Outlays from current balances ...................................... ...................

89.00
90.00

Intragovernmental funds:
ADVANCE ACQUISITION

PROPERTY—REVOLVING FUND

19 ...................

Program and Financing (in millions of dollars)
Identification code 72–4590–0–4–151

1996 actual

1997 est.

This program provides U.S. exporters with trade credit insurance to finance exports of U.S. agricultural supplies and
inputs to Ukraine.

1998 est.

21.90

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 72–0402–0–1–151

A revolving fund to finance the acquisition and rehabilitation at minimal cost of U.S. Government-owned excess property for purchase by friendly countries and eligible organizations, for use in conjunction with economic development pro-

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Loan guarantee levels ...................................................
2159

1996 actual

1997 est.

1998 est.

63 ...................

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Subsidy rate ...................................................................

63 ...................

13.14

13.19 ...................

2329

13.14

13.19 ...................

Weighted average subsidy rate .................................

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

AGENCY

FOR

THE BUDGET FOR FISCAL YEAR 1998
2251
2261

INTERNATIONAL DEVELOPMENT—Continued

Intragovernmental funds—Continued
ASSISTANCE FOR THE NEW INDEPENDENT STATES OF THE FORMER
SOVIET UNION: UKRAINE EXPORT CREDIT INSURANCE PROGRAM
ACCOUNT—Continued

2330

Guaranteed loan subsidy budget authority:
Subsidy budget authority ...............................................

1996 actual

1997 est.

1998 est.

8 ...................

Total subsidy budget authority .................................
11
Guaranteed loan subsidy outlays:
2340 Subsidy outlays .............................................................. ...................

8 ...................
19 ...................

2349

Outstanding, end of year ..........................................

144

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

144

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................ ................... ................... ...................
2331
Disbursements for guaranteed loan claims ............. ................... ...................
15
2361
Write-offs of loans receivable ................................... ................... ................... ...................

19 ...................

Total subsidy outlays ................................................ ...................

–15

2299

2339

–66

2290

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)—Continued
Identification code 72–0402–0–1–151

Repayments and prepayments ...................................... ................... ...................
Adjustments: Terminations for default that result in
loans receivable ........................................................ ................... ...................

2390

Outstanding, end of year ...................................... ................... ...................

Balance Sheet (in millions of dollars)
1995 actual

1996 actual

..................

..................
..................

15
–15

..................

Total assets ........................................
LIABILITIES:
2204 Non-Federal liabilities: Liabilities for
loan guarantees ..................................

..................

2999

Total liabilities ....................................

..................

4999

Total liabilities and net position ............

..................

Identification code 72–4345–0–3–151

ASSISTANCE FOR THE NEW INDEPENDENT STATES OF THE FORMER
SOVIET UNION: UKRAINE EXPORT CREDIT INSURANCE FINANCING
ACCOUNT
Program and Financing (in millions of dollars)
Identification code 72–4345–0–3–151

1996 actual

1997 est.

1998 est.

Obligations by program activity:
00.01 Default claims ............................................................... ................... ...................

10.00

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
Net value of assets related to post–
1991 acquired defaulted guaranteed loans receivable:
1501
Defaulted guaranteed loans receivable, gross ......................................
1505
Allowance for subsidy cost (–) ...........
1599

Net present value of assets related
to defaulted guaranteed loans

1999

Budgetary resources available for obligation:
21.90 Unobligated balance available, start of year: Fund
balance ...................................................................... ...................
22.00 New financing authority (gross) ....................................
1
23.90
23.95
24.90

68.00

73.10
73.20
87.00

1
25

26
1

Total budgetary resources available for obligation
1
26
New obligations ............................................................. ................... ...................
Unobligated balance available, end of year: Fund
balance ......................................................................
1
26

27
–15

New financing authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

DEBT REDUCTION, FINANCING ACCOUNT

Program and Financing (in millions of dollars)
25

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
Total financing disbursements (gross) ......................... ................... ...................
Total financing disbursements (gross) ......................... ................... ...................

15
–15
15

Identification code 72–4137–0–3–151

1996 actual

–19 ...................
–1
–1
–5 ...................

88.90

–25

–1

Net financing authority and financing disbursements:
89.00 Financing authority ........................................................ ................... ................... ...................
90.00 Financing disbursements ...............................................
–1
–25
14

Status of Guaranteed Loans (in millions of dollars)
1996 actual

1998 est.

Obligations by program activity:
Payment to liquidating acct-HG and direct loans for
debt restructuring ..................................................... ...................
00.02 Interest on Treasury borrowing-EAI debt .......................
22
00.03 Interest on Treasury Borrowing-HG and direct loans ...................

35
15
2

5
12
2

00.01

Total obligations ........................................................

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New financing authority (gross) ....................................
22.60 Redemption of debt .......................................................

49
22
–48

21.90

23.90
23.95
24.90

23
–22

1997 est.

1998 est.

Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... ................... ...................
2131 Guaranteed loan commitments exempt from limitation
81
63 ...................

New financing authority (gross), detail:
Authority to borrow (indefinite)–HG and direct loans ...................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
81
68.47
Portion applied to debt reduction .............................
–59

52
–52

20
–19

70
–48

58
–43

Total guaranteed loan commitments ........................
Guaranteed amount of guaranteed loan commitments

81
81

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year ............................................. ...................
2231 Disbursements of new guaranteed loans ......................
81

Spending authority from offsetting collections
(total) ................................................................

70.00
2150
2199

68.90

1 ...................
52
20
–1 ...................

1 ................... ...................

67.15

Identification code 72–4345–0–3–151

1997 est.

10.00

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources ..................................................... ...................
88.25
Interest on uninvested funds ............................... ...................
88.40
Non-Federal sources .............................................
–1
Total, offsetting collections (cash) ..................

1998 est.

1101

Total obligations ........................................................ ................... ...................

1997 est.

Total new financing authority (gross) ......................

73.10
73.20
87.00

Change in unpaid obligations:
New obligations .............................................................
Total financing disbursements (gross) .........................
Total financing disbursements (gross) .........................

22
–22
22

52
–52
52

19
–19
19

63 ...................
63 ...................

81
144
63 ...................

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

FUNDS APPROPRIATED TO THE PRESIDENT
Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
88.00
Federal sources-EAI reestimate ........................
–18 ................... ...................
88.00
Federal sources-HG and direct loan restructuring ........................................................... ...................
–7
–3
88.25
Interest on uninvested funds-EAI debt ................
–6
–2
–2
88.40
Repayments of principal-EAI debt ........................
–57
–61
–53

Total, offsetting collections (cash) ..................

Net financing authority and financing disbursements:
89.00 Financing authority ........................................................
90.00 Financing disbursements ...............................................

–81

–70

–59
–59

–18
–18

–58

–38
–39

110

105

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.25
Interest on uninvested funds ...............................
88.40
Non-Federal sources: Fees and premiums ...........

–20
–79

–24
–86

–20
–85

88.90

New financing authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

–99

–110

–105

68.00

89.00
90.00

Total, offsetting collections (cash) ..................

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ................... ...................
Financing disbursements ...............................................
–99
–110
–105

Status of Direct Loans (in millions of dollars)
1996 actual

Identification code 72–4137–0–3–151

1997 est.

Status of Guaranteed Loans (in millions of dollars)

1998 est.

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
453
Disbursements: Purchase of loans assets from a liquidating account ....................................................... ...................
1251 Repayments: Repayments and prepayments .................
–57

396

370

35
–61

5
–53

1290

370

322

1210
1233

1996 actual

Identification code 72–4119–0–3–151

1997 est.

1998 est.

Total guaranteed loan commitments ........................

2,000

2,000 ...................

2210
2231

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Disbursements of new guaranteed loans ......................

4,813
1,751

6,564
8,564
2,000 ...................

Outstanding, end of year ..........................................

6,564

8,564

2299

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from restructuring loans administered by the Agency for International Development.

2,000 ...................

2290

396

2,000

2150

Outstanding, end of year ..........................................

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

6,564

8,564

Balance Sheet (in millions of dollars)
1995 actual

Identification code 72–4137–0–3–151

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Interest receivable—Treasury ........
Net value of assets related to post–
1991 direct loans receivable:
Direct loans receivable, gross:
1401
Direct loans receivable, gross-EAI
1401
Direct loans receivable, gross-HG
and direct loans ........................
Allowance for subsidy cost (–):
1405
Allowance for subsidy cost (–)–
EAI ..............................................
1405
Allowance for subsidy cost (–)–
HG and direct loans ..................

1996 actual

1997 est.

1998 est.

..................

Balance Sheet (in millions of dollars)
Identification code 72–4119–0–3–151

453

396

335

317

..................

–187

–169

–156

–146

..................

–7

–3

266

227

207

313

228

207

313

228

207

173

Total liabilities ....................................

313

228

207

173

4999

Total liabilities and net position ............

313

228

207

173

1997 est.

1998 est.

242

341

463

173

2999

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................

1996 actual

173

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt-EAI ....................

1101

1995 actual

1499

Net present value of assets related
to direct loans ...........................

1999

LOAN GUARANTEE

Program and Financing (in millions of dollars)
Identification code 72–4119–0–3–151

1996 actual

1997 est.

1998 est.

21.90

23.90
23.95
24.90

242
99

341
110

451
105

Total budgetary resources available for obligation
341
451
556
New obligations ............................................................. ................... ................... ...................
Unobligated balance available, end of year: Fund
balance ......................................................................
341
451
556

Total assets ........................................
LIABILITIES:
2204 Non-Federal liabilities: Estimated Federal liability for loan guarantees,
credit reform .......................................

242

341

463

242

341

463

2999

ISRAEL FINANCING ACCOUNT

1999

242

341

463

Total liabilities ....................................

øHOUSING GUARANTY¿ URBAN AND ENVIRONMENTAL CREDIT
PROGRAM ACCOUNT
For the cost, as defined in section 502 of the Congressional Budget
Act of 1974, of guaranteed loans authorized by sections 221 and
222 of the Foreign Assistance Act of 1961, ø$3,500,000¿ including
the cost of guaranteed loans designed to promote the urban and environmental policies and objectives of part I of such Act, $3,000,000,
to remain available until øSeptember 30, 1998¿ expended: Provided,
That these funds are available to subsidize loan principal, 100 percent
of which shall be guaranteed, pursuant to the authority of such
sections. In addition, for administrative expenses to carry out guaranteed loan programs, $6,000,000, to remain available until expended,
all of which may be transferred to and merged with the appropriation
for Operating Expenses of the Agency for International Development:
Provided further, That commitments to guarantee loans under this
heading may be entered into notwithstanding the second and third
sentences of section 222(a) and, with regard to programs for Central
and Eastern Europe and programs for the benefit of South Africans
disadvantaged by apartheid, section 223(j) of the Foreign Assistance
Act of 1961. (Foreign Operations, Export Financing, and Related Programs Appropriation Act, 1997.)

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

AGENCY

FOR

THE BUDGET FOR FISCAL YEAR 1998

INTERNATIONAL DEVELOPMENT—Continued

Intragovernmental funds—Continued
øHOUSING GUARANTY¿ URBAN AND ENVIRONMENTAL CREDIT
PROGRAM ACCOUNT—Continued
Unavailable Collections (in millions of dollars)
Identification code 72–0401–0–1–151

1996 actual

1997 est.

1998 est.

Balance, start of year:
01.99 Balance, start of year .................................................... ...................
9
9
Receipts:
02.01 AID-housing guarantees, Downward reestimates of
subsidies ...................................................................
9 ................... ...................
04.00
07.99

Total: Balances and collections ....................................
Total balance, end of year ............................................

9
9

investments focus on improving the quality of life for the
urban poor through the development of infrastructure and
the encouragement of reforms in urban policy. The Urban
and Environmental Credit Program operates by guaranteeing
loans from U.S. private investors to borrowers in developing
countries who are implementing urban programs which have
been agreed with U.S.A.I.D.
As required by the Federal Credit Reform Act of 1990,
this account records, for the Urban and Environmental Credit
Program the subsidy costs associated with the loan guarantees committed in 1992 and beyond, as well as administrative
expenses of this program. The subsidy amounts are estimated
on a present value basis; the administrative expenses are
estimated on a cash basis.
Object Classification (in millions of dollars)

Program and Financing (in millions of dollars)
1996 actual

Identification code 72–0401–0–1–151
Identification code 72–0401–0–1–151

Obligations by program activity:
00.02 Guaranteed loan subsidy ...............................................
00.09 Administrative expenses ................................................

1996 actual

1997 est.

1998 est.

11.1
4
7

4
6

3
6

10.00

Total obligations ........................................................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

11
–11

10
–10

9
–9

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

11.9
25.3

Personnel compensation:
Full-time permanent ..................................................

38
10
–21

29
9
–17

41.0
99.5

1
6
1

1
5
1

99.9

Total obligations ........................................................

Personnel Summary
Identification code 72–0401–0–1–151

47
11
–20

1998 est.

Total personnel compensation ..............................
Purchases of goods and services from Government
accounts ....................................................................
Grants, subsidies, and contributions ............................
Below reporting threshold ..............................................

72.40

1997 est.

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1996 actual

1997 est.

1998 est.

Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
86.93 Outlays from current balances ......................................

4
16

5
16

5
12

87.00

øHOUSING AND OTHER CREDIT GUARANTY PROGRAMS¿ URBAN AND
ENVIRONMENTAL CREDIT PROGRAM GUARANTEED LOAN FINANCING
ACCOUNT

Program and Financing (in millions of dollars)
Total outlays (gross) .................................................

Identification code 72–4344–0–3–151

11
20

10
21

9
17

1996 actual

1997 est.

1998 est.

Identification code 72–0401–0–1–151

1996 actual

1997 est.

Obligations by program activity:
Payment of downward reestimate to receipt account

10 ................... ...................

10.00

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

00.02

Total obligations (object class 24.4) ........................

10 ................... ...................

1998 est.

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Loan guarantee levels ...................................................

2159

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Subsidy rate ...................................................................

9.87

7.61

6.52

2329

9.87

7.61

6.52

23.90
23.95
24.90

Weighted average subsidy rate .................................
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority ...............................................
2339

Total subsidy budget authority .................................
Guaranteed loan subsidy outlays:
2340 Subsidy outlays ..............................................................

2349

Total subsidy outlays ................................................

The Urban and Environmental Credit Program (formerly
the Housing Guaranty Program) provides long-term financing
to developing countries for innovative urban investment programs in areas such as shelter, potable water, wastewater
treatment, solid waste disposal, environmental improvement
of poor urban neighborhoods, and energy distribution. These

68.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................
New financing authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Obligated balance .....................................................
73.10 New obligations .............................................................
73.20 Total financing disbursements (gross) .........................
74.90 Unpaid obligations, end of year: Obligated balance:
Obligated balance .....................................................
87.00 Total financing disbursements (gross) .........................

67
17

74
15

89
10

84
89
99
–10 ................... ...................
74

72.90

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources: Payments from program account .................................................................

2
2
2
10 ................... ...................
–10 ................... ...................
2
2
2
10 ................... ...................

–12

–13

–5

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

FUNDS APPROPRIATED TO THE PRESIDENT
88.25
88.40

Interest on uninvested funds ...............................
Non-Federal sources: Fees and premiums ...........

–3
–2

–1
–1

–3
–2

88.90

Total, offsetting collections (cash) ..................

–17

–15

–10

89.00
90.00

Status of Guaranteed Loans (in millions of dollars)
1996 actual

Identification code 72–4344–0–3–151

1997 est.

1998 est.

Total guaranteed loan commitments ........................

2210
2231

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Disbursements of new guaranteed loans ......................

179
60

239
75

314
50

2290

Outstanding, end of year ..........................................

239

314

23.90
23.95
24.47

78
–55

68.90

36
23
–25

New budget authority (gross), detail:
Appropriation (indefinite) ...............................................
23
Spending authority from offsetting collections:
Offsetting collections (cash):
68.00
Offsetting collections (cash) ................................
56
68.00
Offsetting collections (Debt Reduction) ............... ...................
68.47
Portion applied to debt reduction .............................
–15

87
–59

60.05

33
5
–25

Spending authority from offsetting collections
(total) ................................................................

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................

6
64
–65

5
55
–56

4
59
–60

70.00

72.90

364
86.97
86.98

239

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from loan guarantees under the
Agency for International Development (USAID) Urban and
Environmental Credit Program committed in 1992 and beyond. The amounts in this account are a means of financing
and are not included in the budget totals.
Balance Sheet (in millions of dollars)
1995 actual

1996 actual

1997 est.

64
1

55
1

59
1

87.00

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Federal sources:
88.00
Federal sources ................................................
–5
88.00
Federal sources—Debt Reduction ................... ...................
Non-Federal sources:
88.40
Recoveries of claims ........................................
–20
88.40
Fees ..................................................................
–6
88.40
Interest & late pmt. collections .......................
–25

–6
–23

–6
–5

–12
–9
–9

–9
–9
–9

88.90

314 ...................

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

Total, offsetting collections (cash) ..................

–56

–59

–38

89.00
90.00

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

Identification code 72–4344–0–3–151

Total budgetary resources available for obligation
64
New obligations .............................................................
–64
Unobligated balance available, end of year: Authority
to borrow—Debt Reduction ...................................... ...................

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

8
10

19
–3

26
22

1998 est.

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Accounts receivable from program
accounts .....................................

1999

Status of Guaranteed Loans (in millions of dollars)
Identification code 72–4340–0–3–151

Total assets ........................................
LIABILITIES:
2204 Non-Federal liabilities: Estimated Federal liability for loan guarantees,
credit reform .......................................

2999

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
2231 Disbursements of new guaranteed loans ......................
2251 Repayments and prepayments ......................................
2261 Adjustments: Terminations for default that result in
loans receivable ........................................................
2290

2299

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

3999

Total net position ................................

4999

Total liabilities and net position ............

HOUSING

AND

OTHER CREDIT GUARANTY PROGRAMS LIQUIDATING
ACCOUNT
Program and Financing (in millions of dollars)

Identification code 72–4340–0–3–151

1996 actual

1997 est.

1998 est.

Obligations by program activity:
00.04 Claim payments .............................................................
00.05 Interest on borrowing .....................................................

53
11

43
12

49
10

10.00

Budgetary resources available for obligation:
21.47 Unobligated balance available, start of year: Authority
to borrow—Debt Reduction ...................................... ................... ...................
22.00 New budget authority (gross) ........................................
64
78

23
64

Total obligations ........................................................

1996 actual

1998 est.

2,014
2
–44

1,950
33
–88

1,875
2
–85

–22

–20

–24

Outstanding, end of year ..........................................

1,950

1,875

1,768

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

1,950

1,875

1,768

466
58

440
80

–12

–9

–23
–49

–5
–28

440

478

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
442
2331
Disbursements for guaranteed loan claims .............
53
Repayments of loans receivable:
2351
Repayments of loans receivable ...........................
–24
2351
Repayments of loans receivable—Debt Reduction ................................................................... ...................
2361
Write-offs of loans receivable ...................................
–5
2390

1997 est.

Outstanding, end of year ......................................

466

As required by the Federal Credit Reform Act of 1990,
this account records, for the [Urban and Environmental Credit Program], all cash flows to and from the Government resulting from direct loans obligated and loan guarantees committed prior to 1992. This account is shown on a cash basis.

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

AGENCY

FOR

THE BUDGET FOR FISCAL YEAR 1998

INTERNATIONAL DEVELOPMENT—Continued

Intragovernmental funds—Continued
HOUSING

AND

OTHER CREDIT GUARANTY PROGRAMS LIQUIDATING
ACCOUNT—Continued

All new activity in this program in 1992 and beyond is recorded in corresponding program and financing accounts.
Statement of Operations (in millions of dollars)
Identification code 72–4340–0–3–151

1995 actual

1996 actual

1997 est.

guarantees of loans made under this heading in support of microenterprise activities may guarantee up to 70 percent of the principal
amount of any such loans notwithstanding section 108 of the Foreign
Assistance Act of 1961. In addition, for administrative expenses to
carry out programs under this heading, $500,000, all of which may
be transferred to and merged with the appropriation for Operating
Expenses of the Agency for International Development: Provided further, That funds made available under this heading shall remain
available until September 30, ø1998¿ 1999. (Foreign Operations, Export Financing, and Related Programs Appropriation Act, 1997.)

1998 est.

0111
0112

Revenue ...................................................
Expense ....................................................

59
–178

20
–21

22
–24

20
–20

0119

Net income or loss (–) ............................

–119

–1

–2

..................

0199

Net income or loss ..................................

–119

–1

–2

..................

Program and Financing (in millions of dollars)
Identification code 72–0400–0–1–151

00.01
00.09

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Guaranty loan subsidy—microenterprise credits ..........
1
1
Administrative expenses ................................................ ................... ...................

10.00

Total obligations ........................................................

22.00
23.95
24.40

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

1
1

2
–1

2
–2

Balance Sheet (in millions of dollars)
Identification code 72–4340–0–3–151

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
Defaulted guaranteed loans, gross:
1701
Defaulted guaranteed loans, gross
1701
Defaulted
guaranteed
loans,
gross—Debt Reduction .............
1703
Allowance for estimated uncollectible
loans and interest (–) ....................
1704
Defaulted guaranteed loans and interest receivable, net .....................
1799
1803

Value of assets related to loan
guarantees .................................
Other Federal assets: Property, plant
and equipment, net ............................

1999

Total assets ........................................
LIABILITIES:
Federal liabilities:
2102
Interest payable ..................................
2103
Debt .....................................................
2105
Other ...................................................
Non-Federal liabilities:
2201
Accounts payable ................................
2204
Liabilities for loan guarantees ...........
2999

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
Cumulative results of operations:
3300
Cumulative results of operations .......
3300
Cumulative results of operations—
Debt Reduction ...............................

1995 actual

1996 actual

1997 est.

1998 est.

6
1

4
..................

5
..................

1 ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation ............................................................. ...................
73.10 New obligations .............................................................
1
73.20 Total outlays (gross) ......................................................
–1
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
1

1
1
–2

1
2
–2

1
1

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

72.40

442

476

499

..................

–72

–105

–403

–453

–319

–304

108

90
86.90
86.93

108

..................

113

5
125
..................

5
110
5

4
85
3

15
686

..................
654

..................
670

831

774

762

159

182

205

–944

–929

–782

–767

..................

–72

–105

Outlays (gross), detail:
Outlays from new current authority ..............................
1
Outlays from current balances ...................................... ...................

87.00

3999

Total net position ................................

–785

–747

–649

–667

4999

Total liabilities and net position ............

113

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

2
1

2
2

The Microenterprise and Small Enterprise Development
Credit Program account supports private sector activities in
developing countries by providing direct loans and loan guarantees to support local micro and small enterprises.
As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the loan guarantees committed in 1992 and beyond, as well as administrative expenses of this program.
The subsidy amounts are estimated on present value basis;
the administrative expenses are estimated on a cash basis.
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

95
Identification code 72–0400–0–1–151

Object Classification (in millions of dollars)
Identification code 72–4340–0–3–151

1996 actual

1997 est.

1998 est.

33.0
43.0
99.0

Investments and loans ..................................................
Interest and dividends ...................................................
Subtotal, reimbursable obligations ...............................

53
11
64

43
12
55

49
10
59

99.9

Total obligations ........................................................

AND

SMALL ENTERPRISE DEVELOPMENT PROGRAM ACCOUNT

For the cost of direct loans and loan guarantees, $1,500,000, as
authorized by section 108 of the Foreign Assistance Act of 1961,
as amended: Provided, That such costs shall be as defined in section
502 of the Congressional Budget Act of 1974: Provided further, That

1997 est.

1998 est.

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Loan guarantee levels ...................................................

2159

3.18

Total subsidy budget authority .................................
Guaranteed loan subsidy outlays:
2340 Subsidy outlays ..............................................................

2349

Total subsidy outlays ................................................

3510

Administrative expense data:
Budget authority ............................................................

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Subsidy rate ...................................................................
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority ...............................................
2339

MICRO

1996 actual

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

FUNDS APPROPRIATED TO THE PRESIDENT
1999

Total assets ........................................
LIABILITIES:
2201 Non-Federal liabilities: Accounts payable

1996 actual

41.0
99.5
99.9

1997 est.

1998 est.

Direct obligations: Grants, subsidies, and contributions ...........................................................................
1
1
Below reporting threshold .............................................. ................... ...................
Total obligations ........................................................

2999

Object Classification (in millions of dollars)
Identification code 72–0400–0–1–151

Total liabilities ....................................

1
1

MICROENTERPRISE AND SMALL ENTERPRISE DEVELOPMENT
GUARANTEED LOAN FINANCING ACCOUNT
MICROENTERPRISE AND SMALL ENTERPRISE DEVELOPMENT CREDIT
DIRECT LOAN FINANCING ACCOUNT

Program and Financing (in millions of dollars)

1996 actual

Identification code 72–4342–0–3–151

1996 actual

Identification code 72–4343–0–3–151

Program and Financing (in millions of dollars)
1997 est.

1998 est.

1997 est.

1998 est.

21.90
00.01

Obligations by program activity:
Direct loans ....................................................................

1 ...................

10.00

Total obligations ........................................................

1 ...................

Budgetary resources available for obligation:
New financing authority (gross) ....................................
New obligations .............................................................

1 ...................
–1 ...................

1
–1

67.15

New financing authority (gross), detail:
Authority to borrow (indefinite) .....................................

1 ...................
1 ...................

1
1

22.00
23.95

89.00
90.00

Status of Guaranteed Loans (in millions of dollars)
1996 actual

Identification code 72–4343–0–3–151

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation ............................................................. ...................
1 ...................
73.10 New obligations .............................................................
1 ...................
1
73.20 Total financing disbursements (gross) .........................
–1 ...................
–1
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
1 ................... ...................
87.00 Total financing disbursements (gross) .........................
1 ...................
1

1997 est.

1998 est.

2210
2231

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Disbursements of new guaranteed loans ......................

24
2

26
30
4 ...................

2290

Net financing authority and financing disbursements:
Financing authority ........................................................
1 ...................
Financing disbursements ............................................... ................... ...................

Outstanding, end of year ..........................................

2299

89.00
90.00

Position with respect to appropriations act limitation
on commitments:
2131 Guaranteed loan commitments exempt from limitation

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

1
1

Status of Direct Loans (in millions of dollars)
1996 actual

Identification code 72–4342–0–3–151

Position with respect to appropriations act limitation
on obligations:
1131 Direct loan obligations exempt from limitation ............

1210
1231

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Direct loan disbursements ...................

1290

1997 est.

Outstanding, end of year ..........................................

1998 est.

1 ...................

1
2
1 ...................

2
1

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from loan guarantees under the
Agency for International Development (USAID) Microenterprise and Small Enterprise Development Guarantee program
committed in 1992 and beyond (including modifications of
loan guarantees that resulted from commitments in any year).
The amounts in this account are a means of financing and
are not included in the budget totals.
Balance Sheet (in millions of dollars)

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated under
the Agency for International Development (USAID) Microenterprise and Small Enterprise Development Credit Direct
Loan program in 1992 and beyond (including modifications
of direct loans that resulted from obligations in any year).
The amounts in this account are a means of financing and
are not included in the budget totals.

ASSETS:
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1499

Net present value of assets related
to direct loans ...........................

1995 actual

1996 actual

1997 est.

1998 est.

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Accounts receivable from program
account ......................................

..................

1999

1996 actual

1997 est.

1998 est.

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

1995 actual

Total assets ........................................
LIABILITIES:
2204 Non-Federal liabilities: Estimated Federal liability for loan guarantees,
credit reform .......................................
2999

Balance Sheet (in millions of dollars)
Identification code 72–4342–0–3–151

Identification code 72–4343–0–3–151

3999

Total net position ................................

4999

Total liabilities and net position ............

100

INTERNATIONAL DEVELOPMENT ASSISTANCE—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

FOR

2204

..................

2999

INTERNATIONAL DEVELOPMENT—Continued

Non-Federal liabilities: Liabilities for
loan guarantees ..................................
Total liabilities ....................................

4999

AGENCY

Total liabilities and net position ............

Intragovernmental funds—Continued
PRIVATE SECTOR REVOLVING FUND LIQUIDATING ACCOUNT
Program and Financing (in millions of dollars)
1996 actual

Identification code 72–4341–0–3–151

1997 est.

1998 est.

ECONOMIC ASSISTANCE LOANS—LIQUIDATING ACCOUNT

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ................................................... ...................
22.00 New budget authority (gross) ........................................
3
22.40 Capital transfer to general fund ................................... ...................
21.40

23.90
24.40

Total budgetary resources available for obligation
Unobligated balance available, end of year:
Uninvested balance ...................................................

3
3

2 ...................
2 ...................

2
1
1
–1 ................... ...................
1

New budget authority (gross), detail:
68.00 Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

Change in unpaid obligations:
72.90 Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.20 Total outlays (gross) ......................................................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................

4
4
2 ...................
–3
–3

1 ................... ...................

–3

–2 ...................

1996 actual

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
2264 Adjustments: Other adjustments, net ...........................

19
–3

2290

Outstanding, end of year ..........................................

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

1997 est.

1999

Net value of assets related to post–
1991 acquired defaulted guaranteed loans receivable: Net present
value of assets related to defaulted guaranteed loans ...............

Total assets ........................................
LIABILITIES:
2101 Federal liabilities: Accounts payable ......

23.90

903

837

–891
–837
–12 ...................

Total budgetary resources available for obligation ................... ................... ...................

New budget authority (gross), detail:
Spending authority from offsetting collections:
Offsetting collections (cash):
68.00
Offsetting collections (cash) ................................
882
68.00
Offsetting collections (cash)—Debt Reduction ... ...................
68.90

1998 est.

891
837
12 ...................

Spending authority from offsetting collections
(total) ................................................................

882

903

837

Total new budget authority (gross) ..........................

882

903

837

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.20 Total outlays (gross) ......................................................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................

13
–3

70.00

1995 actual

1996 actual

–577
–260

88.90

–903

–837

89.00
90.00

1998 est.

1997 est.

–607
–284

16
4
–12 ...................

Outlays (gross), detail:
Outlays from new permanent authority .........................

–12 ...................

1998 est.

86.97

10
6
–4 ...................

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources—Debt Reduction ........................ ...................
Non-Federal sources:
88.40
Principal Repayments .......................................
–558
88.40
Interest Collections ...........................................
–324

Balance Sheet (in millions of dollars)

1599

Budgetary resources available for obligation:
New budget authority (gross) ........................................
882
Capital transfer to general fund:
22.40
Capital transfer to general fund ..............................
–882
22.40
Capital transfer to general fund—Debt Reduction ...................
22.00

1997 est.

4 ...................

As required by the Federal Credit Reform Act of 1990,
this account records, for the private sector revolving fund,
all cash flows to and from the Government resulting from
direct loans obligated and loan guarantees committed under
the Private Sector Loan Fund prior to 1992. This account
is shown on a cash basis. All new activity in this program
in 1992 and beyond is recorded in corresponding program
and financing accounts.

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................

1996 actual

Status of Guaranteed Loans (in millions of dollars)

Identification code 72–4341–0–3–151

Identification code 72–4103–0–3–151

72.90

Identification code 72–4341–0–3–151

Program and Financing (in millions of dollars)

Total, offsetting collections (cash) ..................

–882

Status of Direct Loans (in millions of dollars)
Identification code 72–4103–0–3–151

1996 actual

1997 est.

1998 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
13,278
12,649
11,977
1231 Disbursements: Direct loan disbursements ...................
3
4 ...................
Repayments:
Repayments and prepayments:
1251
Repayments and prepayments .............................
–558
–607
–577
1251
Repayments and prepayments—Debt Reduction ...................
–12 ...................
Write-offs for default:
Other adjustments, net:
1264
Other adjustments, net .........................................
–74 ................... ...................
1264
Other adjustments, net—Debt Reduction ............ ...................
–57 ...................
1290

Outstanding, end of year ..........................................

12,649

11,977

11,400

1 Shows consolidation of amounts outstanding from the Economic Support Fund, Functional Development Assistance
Program, and the Development Loans Revolving Fund.

..................

The Economic Assistance Loans account consolidates liquidating credit activity from four previous accounts: Economic
Support Fund, Functional Development Assistance Program,
and the Development Loans Revolving Fund. This was done
to simplify presentation.

OVERSEAS PRIVATE INVESTMENT CORPORATION
Federal Funds

FUNDS APPROPRIATED TO THE PRESIDENT
Trust Funds

101

Balance Sheet (in millions of dollars)

FOREIGN SERVICE NATIONAL SEPARATION LIABILITY TRUST FUND

1996 actual

1997 est.

1996 actual

1999

Program and Financing (in millions of dollars)
Identification code 72–8342–0–7–602

1995 actual

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................

Identification code 72–9971–0–7–151

1998 est.

1997 est.

1998 est.

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

2
–3

2
–2

Total assets ........................................
LIABILITIES:
2202 Non-Federal liabilities: Interest payable

2999

Obligations by program activity:
10.00 Total obligations (object class 12.1) ............................

Total liabilities ....................................
NET POSITION:
3300 Cumulative results of operations ............
3999

New budget authority (gross), detail:
60.27 Appropriation (trust fund, indefinite) ............................
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

6
2
–1
5

5
2
–1

Total liabilities and net position ............

7
3
–2

Total net position ................................

4999

OVERSEAS PRIVATE INVESTMENT
CORPORATION

72.40

86.97

89.00
90.00

Outlays (gross), detail:
Outlays from new permanent authority .........................
Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

Federal Funds
Public enterprise funds:
OVERSEAS PRIVATE INVESTMENT CORPORATION

2
2

2 ...................
1
1

This Fund is maintained to pay separation costs for Foreign
Service National employees of the Agency for International
Development in those countries in which such pay is legally
required. The Fund, as authorized by Public Law 102–138,
is maintained by annual Government contributions which are
appropriated in several Agency accounts.

MISCELLANEOUS TRUST FUNDS, AID

NONCREDIT ACCOUNT

The Overseas Private Investment Corporation is authorized to
make, without regard to fiscal year limitations, as provided by 31
U.S.C. 9104, such expenditures and commitments within the limits
of funds available to it and in accordance with law as may be necessary: Provided, That the amount available for administrative expenses to carry out the credit and insurance programs (including
an amount for official reception and representation expenses which
shall not exceed $35,000) shall not exceed $32,000,000: Provided further, That project-specific transaction costs, including direct and indirect costs incurred in claims settlements, and other direct costs associated with services provided to specific investors or potential investors pursuant to section 234 of the Foreign Assistance Act of 1961,
shall not be considered administrative expenses for the purposes of
this heading. (Foreign Operations, Export Financing, and Related Programs Appropriation Act, 1997.)
Unavailable Collections (in millions of dollars)

Program and Financing (in millions of dollars)
Identification code 72–9971–0–7–151

1996 actual

Obligations by program activity:
10.00 Total obligations (object class 99.5) ............................ ...................

1997 est.

Identification code 71–4184–0–3–151

1998 est.

1996 actual

1997 est.

1998 est.

01.99
2 ...................

Budgetary resources available for obligation:
Unobligated balance available, start of year: Treasury
balance ......................................................................
2
2 ...................
23.95 New obligations ............................................................. ...................
–2 ...................
24.40 Unobligated balance available, end of year:
Uninvested balance ...................................................
2 ................... ...................

Balance, start of year:
Balance, start of year ....................................................

1,963

2,142

2,345

03.00
04.00
07.99

Offsetting Collections ....................................................
Total: Balances and collections ....................................
Total balance, end of year ............................................

179
2,142
2,142

203
2,345
2,345

158
2,503
2,503

21.40

These balances are reserves held for potential claims and
are not expected to be obligated.
Program and Financing (in millions of dollars)

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
1
73.10 New obligations ............................................................. ...................
73.20 Total outlays (gross) ......................................................
–1
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
1

Identification code 71–4184–0–3–151

1
1
2 ...................
–1
–1

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Noncredit administrative expense .................................
Insurance claim payments/provisions ...........................
Credit administration expenses .....................................

13
27
16

13
30
19

13
35
19

10.00
Outlays (gross), detail:
86.98 Outlays from permanent balances ................................

1 ...................

00.01
00.02
00.03

Total obligations ........................................................

21
56

20
62

21
67

78
–56

83
–62

89
–67

21.40

89.00
90.00

Funds advanced by foreign countries are used to pay for
procurement in the United States of nonmilitary materials
or services for programs in those countries in accordance with
bilateral agreements.

23.90
23.95
24.40

102

OVERSEAS PRIVATE INVESTMENT CORPORATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
0799

Public enterprise funds—Continued

Total balance, end of year ........................................

2,250

2,468

2,634

OVERSEAS PRIVATE INVESTMENT CORPORATION—Continued
NONCREDIT ACCOUNT—Continued

INSURANCE PROGRAM ACTIVITY

Program and Financing (in millions of dollars)—Continued

[In millions of dollars]

1995 actual
Identification code 71–4184–0–3–151

New budget authority (gross), detail:
Current:
41.00
Transferred to other accounts ...................................
Permanent:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) ................................
68.10
Change in orders on hand from Federal sources
68.45
Portion not expected to be obligated ...................
68.90

1996 actual

–16

1997 est.

–19

1998 est.

Aggregate insurance outstanding, start of year ..
Aggregate insurance issued during year .............
Aggregate insurance reductions and cancellations ..................................................................
Aggregate insurance outstanding, end of year ....
Net growth/(decline) of portfolio ..........................
Net growth rate of insurance portfolio .................

1996 actual

16,177
8,605

21,297
16,584

1997 est.

31,395
8,700

1998 est.

33,378
10,300

¥3,485

¥6,486

¥6,358

¥6,832

21,297
5,120
31.65%

31,395
10,098
47.42%

33,738
2,342
7.46%

37,206
3,468
10.28%

–79

235
284
304
16 ................... ...................
–179
–203
–158

STATUS OF INSURANCE AUTHORITY

Spending authority from offsetting collections
(total) ...........................................................

146

Total new budget authority (gross) ..........................

[In millions of dollars]

70.00

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
Unpaid obligations, end of year:
74.40
Obligated balance: Appropriation .............................
74.95
Orders on hand from Federal sources ......................
74.99

Total unpaid obligations, end of year ..................

81
56
–34
–1

88
62
–49
–1

100
67
–59
–1

88
100
108
16 ................... ...................
104

100

40
9

44
15

87.00

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources ..................................................... ...................
88.20
Interest on U.S. securities ....................................
–154
88.40
Non-Federal sources .............................................
–81
88.90
88.95

Total, offsetting collections (cash) ..................
Change in orders on hand from Federal sources .........

–19
–170
–95

–19
–181
–104

–235
–284
–304
–16 ................... ...................

–195
–203

–222
–235

–237
–245

The Overseas Private Investment Corporation encourages
the participation of United States private capital and skills
in the economic and social development of developing countries and emerging market economies. Its primary noncredit
program is political risk insurance against losses due to expropriation, inconvertibility, and political violence damage.
Status of Funds (in millions of dollars)
Identification code 71–4184–0–3–151

13,500
13,386

1997 est.
1 23,000

1998 est.

16,734

(2)
18,454

7,880

6,413

9,784

10,790

new statutory limitation will be proposed in OPIC’s reauthorization.

Balance Sheet (in millions of dollars)
1995 actual

Identification code 71–4184–0–3–151

10
24

1996 actual

13,500
11,501

1 This is a combined insurance and finance limitation created under OPIC’s FY97 appropriation. OPIC will monitor
issuance and runoff to stay within the limitation.

108

Outlays (gross), detail:
86.97 Outlays from new permanent authority .........................
86.98 Outlays from permanent balances ................................
Total outlays (gross) .................................................

1995 actual

Statutory authority limitation ...............................
Maximum contingent liability, end of year ..........
Estimated potential exposure to claims, end of
year ...................................................................

Total assets ........................................
LIABILITIES:
2101 Federal liabilities: Accounts payable ......
Non-Federal liabilities:
2201
Accounts payable ................................
2207
Other ...................................................
2999

Total liabilities ....................................
NET POSITION:
3300 Cumulative results of operations ............

1996 actual

1997 est.

1998 est.

2,201
44
14

2,396
44
9

2,500
44
14

2,650
44
15

2,286

2,497

2,592

2,744

..................

55
84

56
108

58
130

60
155

142

164

188

215

2,144

2,333

2,404

2,529

3999

Total net position ................................

2,144

2,333

2,404

2,529

4999

Total liabilities and net position ............

2,286

2,497

2,592

2,744

Object Classification (in millions of dollars)
1996 actual

Identification code 71–4184–0–3–151

1997 est.

1998 est.

1997 est.

1998 est.

Unexpended balance, start of year:
Treasury balance ............................................................
U.S. Securities:
0101
Par value ...................................................................
0102
Unrealized discounts .................................................

2,065
–20

2,252
–22

2,468
–20

0199

2,065

2,250

2,468

235

284

–49
–19
20
2,468
–20

2,634
–20

16
27
56

19
30
62

19
35
67

Total obligations ........................................................

2,252
–22

6
2
1
2
2

–59
–79

5
2
1
2
3

304

–34
–16

5
2
1
2
3

42.0
99.0

Personnel compensation: Full-time permanent .............
Civilian personnel benefits ............................................
Travel and transportation of persons ............................
Rental payments to others ............................................
Other services ................................................................
Purchases of goods and services from Government
accounts ....................................................................
Insurance claims and indemnities ................................
Subtotal, reimbursable obligations ...............................

99.9

1996 actual

11.1
12.1
21.0
23.2
25.2
25.3

0100

Total balance, start of year ......................................
Cash income during the year:
Offsetting collections:
0280
Offsetting Collections ................................................
Cash outgo during year:
0500 Overseas Private Investment Corporation noncredit account ..........................................................................
0645 Balance transferred, net ................................................
Unexpended balance, end of year:
0700 Treasury balance ............................................................
U.S. Securities:
0701
Par value ...................................................................
0702
Unrealized discounts .................................................

Personnel Summary
Identification code 71–4184–0–3–151

2001
2005

Total compensable workyears:
Full-time equivalent employment ..................................
Full-time equivalent of overtime and holiday hours

1996 actual

71
1

1997 est.

80
1

1998 est.

80
1

OVERSEAS PRIVATE INVESTMENT CORPORATION—Continued
Federal Funds—Continued

FUNDS APPROPRIATED TO THE PRESIDENT
Credit accounts:
OVERSEAS PRIVATE INVESTMENT CORPORATION PROGRAM ACCOUNT
For the cost of direct and guaranteed loans, ø$72,000,000¿
$60,000,000, as authorized by section 234 of the Foreign Assistance
Act of 1961, to be derived by transfer from the Overseas Private
Investment Corporation Noncredit Account: Provided, That such costs,
including the cost of modifying such loans, shall be as defined in
section 502 of the Congressional Budget Act of 1974: Provided further,
That such sums shall be available for direct loan obligations and
loan guaranty commitments incurred or made during fiscal years
ø1997 and¿ 1998 and 1999: Provided further, That such sums shall
remain available through fiscal year ø2005¿ 2006 for the disbursement of direct and guaranteed loans obligated in fiscal year 1998
ø1997¿, and through fiscal year ø2006¿ 2007 for the disbursement
of direct and guaranteed loans obligated in fiscal year 1999 ø1998:
Provided further, That section 235(a)(3) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2195(a)(3)) is amended by striking out ‘‘1996’’
and inserting in lieu thereof ‘‘1997’’ and, notwithstanding section
235(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2195(a)(1)),
the maximum contingent liability of issuing authority for insurance
and financing shall not in the aggregate exceed the amounts provided
in section 235(a)(1) and (2) of that Act¿. In addition, such sums
as may be necessary for administrative expenses to carry out the
credit program may be derived from amounts available for administrative expenses to carry out the credit and insurance programs in
the Overseas Private Investment Corporation Noncredit Account and
merged with said account. (Foreign Operations, Export Financing,
and Related Programs Appropriation Act, 1997.)

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
1996 actual

Identification code 71–0100–0–1–151

1997 est.

1998 est.

Direct loan levels supportable by subsidy budget authority:
1150 Direct loan levels ...........................................................

133

1159

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Subsidy rate ...................................................................

133

3.00

1329

3.00

Total subsidy budget authority .................................
Direct loan subsidy outlays:
1340 Subsidy outlays ..............................................................

1349

Total subsidy outlays ................................................

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Loan guarantee levels ...................................................

2,250

1,800

2159

2,250

1,800

3.00

Weighted average subsidy rate .................................
Direct loan subsidy budget authority:
1330 Subsidy budget authority ...............................................
1339

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Subsidy rate ...................................................................
2329

Weighted average subsidy rate .................................
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority ...............................................

1996 actual

Total subsidy budget authority .................................
Guaranteed loan subsidy outlays:
2340 Subsidy outlays ..............................................................

2349

Program and Financing (in millions of dollars)
Identification code 71–0100–0–1–151

103

Total subsidy outlays ................................................

3510
3590

Administrative expense data:
Budget authority ............................................................
Outlays ...........................................................................

16
3

19
35

19
19

2339

1997 est.

1998 est.

00.01
00.02
00.03

Obligations by program activity:
Direct loan subsidy ........................................................
Guaranteed loan subsidy ...............................................
Credit administrative expenses .....................................

2
66
16

4
60
19

4
68
19

10.00

Total obligations ........................................................

40.00
42.00

New budget authority (gross), detail:
Appropriation ..................................................................
Transferred from other accounts ...................................

72
16

72 ...................
19
79

43.00

Appropriation (total) ..................................................

The Overseas Private Investment Corporation encourages
the participation of United States private capital and skills
in the economic and social development of developing countries and emerging market economies. Its primary credit program is investment financing through loans and guaranteed
loans.
As required by the Federal Credit Reform Act of 1990,
the Program Account records the subsidy costs associated
with the direct loans obligated and loan guarantees committed in 1992 and beyond (including modifications of direct
loans or loan guarantees that resulted from obligations or
commitments in any year), as well as administrative expenses
of this program. The subsidy amounts are estimated on a
present value basis; the administrative expenses are estimated on a cash basis.

70.00

Total new budget authority (gross) ..........................

Object Classification (in millions of dollars)

43
37
45
88
91
79
–10 ................... ...................
121
–84

128
–83

124
–91

86.90
86.93
87.00

1996 actual

Identification code 71–0100–0–1–151

72.40

1997 est.

1998 est.

176
83
–85

174
91
–81

176

174

184

Outlays (gross), detail:
Outlays from new current authority .............................. ...................
Outlays from current balances ......................................
26

22
63

Personnel compensation: Full-time permanent .............
Civilian personnel benefits ............................................
Travel and transportation of persons ............................
Rental payments to others ............................................
Other services ................................................................
Grants, subsidies, and contributions ............................
Below reporting threshold ..............................................

6
2
1
3
3
68
1

7
2
1
3
4
64
2

7
2
1
3
4
72
2

Total obligations ........................................................

21
60

11.1
12.1
21.0
23.2
25.2
41.0
99.5
99.9

117
84
–26

Total outlays (gross) .................................................

Personnel Summary
Identification code 71–0100–0–1–151

88
26

91
85

79
81

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1996 actual

108

1997 est.

120

1998 est.

120

104

OVERSEAS PRIVATE INVESTMENT CORPORATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
1 Enacted limitation was for both direct and guaranteed loans combined. This level is the expected direct
loan amount from that limitation.

Credit accounts—Continued
OVERSEAS PRIVATE INVESTMENT CORPORATION DIRECT LOAN
FINANCING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 71–4074–0–3–151

1996 actual

1997 est.

1998 est.

00.01
00.02

Obligations by program activity:
Direct loans ....................................................................
Interest on Treasury borrowing ......................................

49
4

133
9

10.00

Total obligations ........................................................

142

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond (including modifications of direct loans that resulted from obligations in any year). The amounts in this
account are a means of financing and are not included in
the budget totals.

142

Balance Sheet (in millions of dollars)
Identification code 71–4074–0–3–151

Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New financing authority (gross) ....................................
23.90
23.95
24.40

New financing authority (gross), detail:
67.15 Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.10
Receivables from program account ..........................
68.90

2
58

6
145

9
147

60
–53

151
–142

156
–142

129

10
16
18
1 ................... ...................

Spending authority from offsetting collections
(total) ................................................................

70.00

Total new financing authority (gross) ......................

145

147

72.90
72.95

Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance: Obligated balance .....................
Receivables from program account ..........................

38
3

65
4

132
4

41
53
–24

69
142
–75

136
142
–75

74.90
74.95

65
4

132
4

199
4

74.99
87.00

Total unpaid obligations, end of year ..................
Total financing disbursements (gross) .........................

69
24

136
75

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
1206 Non-Federal assets: Receivables, net .....
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1402
Interest receivable ..............................
1404
Foreclosed property .............................
1405
Allowance for subsidy cost (–) ...........
1499

Net present value of assets related
to direct loans ...........................

1995 actual

1996 actual

1997 est.

1998 est.

3
3

4
..................

6
2

8
2

53
1
..................
–6

72
1
..................
–10

130
..................
2
–15

187
..................
..................
–20

117

167

Total assets ........................................
LIABILITIES:
Federal liabilities:
2101
Accounts payable ................................
2102
Interest payable ..................................
2103
Debt .....................................................
2207 Non-Federal liabilities: Other ..................

135

187

3
2
49
1

4
4
69
1

6
..................
128
1

8
..................
178
1

2999

135

187

..................

203
75

72.99
73.10
73.20

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources .....................................................
–1
Non-Federal sources:
88.40
Repayments of principal ..................................
–2
88.40
Interest received on loans ................................
–6
88.40
Fees ..................................................................
–1
88.40
Proceeds from loan assets sales ..................... ...................
88.90
88.95

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

1996 actual

–3

–2
–8
–1
–2

–3
–8
–2
–2

129
59

129
57

Total direct loan obligations .....................................

Total net position ................................

..................

4999

Total liabilities and net position ............

135

187

Identification code 71–4075–0–3–151

1997 est.

133

1997 est.

1998 est.

Obligations by program activity:
Default Claims ...............................................................
Capitalized Costs ...........................................................

9
2

20
2

50
2

10.00

Total obligations ........................................................

55
63

106
107

191
138

118
–11

213
–22

329
–52

106

191

277

107

138

5
11
–12

4
22
–22

4
52
–52

4
12

4
22

4
52

21.90

1998 est.

133

1996 actual

00.03
00.04

23.90
23.95
24.90

3999

Program and Financing (in millions of dollars)
–3

Status of Direct Loans (in millions of dollars)
Identification code 71–4074–0–3–151

Total liabilities ....................................
NET POSITION:
3300 Cumulative results of operations ............

OVERSEAS PRIVATE INVESTMENT CORPORATION GUARANTEED LOAN
FINANCING ACCOUNT

–10
–16
–18
–1 ................... ...................

47
15

1999

68.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................
New financing authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

1210
1231
1251

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Direct loan disbursements ...................
Repayments: Repayments and prepayments .................

52
22
–2

72
60
–2

130
60
–3

1290

Outstanding, end of year ..........................................

130

187

OVERSEAS PRIVATE INVESTMENT CORPORATION—Continued
Federal Funds—Continued

FUNDS APPROPRIATED TO THE PRESIDENT
Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources: Payments from program account .................................................................
88.25
Interest on uninvested funds ...............................
88.40
Non-Federal sources: Fees and premiums ...........

–24
–4
–35

–46
–7
–54

–58
–10
–70

88.90

–63

–107

–138

Total, offsetting collections (cash) ..................

4999

Total liabilities and net position ............

133

105
251

368

1 Enacted limitation was for both direct and guaranteed loans combined. This level is the expected guaranteed
loan amount from that limitation.

OVERSEAS PRIVATE INVESTMENT CORPORATION LIQUIDATING
ACCOUNT
Program and Financing (in millions of dollars)
Identification code 71–4030–0–3–151

1996 actual

1997 est.

1998 est.

00.12

1996 actual

Identification code 71–4075–0–3–151

1997 est.

1998 est.

Total guaranteed loan commitments ........................

Outstanding, end of year ..........................................

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

2,000

2,250

1,800

69
35

100
35

31
35

Total unobligated balance, start of year .............
104
New budget authority (gross) ........................................
40
Resources available from recoveries of prior year obligations ....................................................................... ...................
Capital transfer to general fund ................................... ...................

135
33

66
25

1
–88

1
–40

21.99
22.00
22.10

4,181

2,781

Balance Sheet (in millions of dollars)
1997 est.

1998 est.

1101

112
6

200
19

52
–15

100
35

31
35

2
35

Total unobligated balance, end of year ....................

135

New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
5
73.10 New obligations .............................................................
8
73.20 Total outlays (gross) ......................................................
–8
73.45 Adjustments in unexpired accounts .............................. ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
6

6
15
–10
–1

9
15
–10
–1

4,181

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from loan guarantees committed
in 1992 and beyond (including modifications of loan guarantees that resulted from commitments in any year). The
amounts in this account are a means of financing and are
not included in the budget totals.

1996 actual

81
–15

68.00

1,335

144
–8

24.90
24.91

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Fund balance .............................................................
U.S. Securities: Par value .........................................

24.99

1999

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.90
Fund balance .............................................................
21.91
U.S. Securities: Par value .........................................

2,781

Net present value of assets related
to defaulted guaranteed loans

1,335

1599

23.90
23.95

2390

60
4

2,781
1,900
–500

32
50
–11

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....
Net value of assets related to post–
1991 acquired defaulted guaranteed loans receivable:
1501
Defaulted guaranteed loans receivable, gross ......................................

Total obligations (object class 43.0) ........................

1,335
1,500
–54

15
20
–3

1995 actual

515
847
–27

8
9
–2

Identification code 71–4075–0–3–151

22.40

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2331
Disbursements for guaranteed loan claims .............
2351
Repayments of loans receivable ...............................
Outstanding, end of year ......................................

10.00

Status of Guaranteed Loans (in millions of dollars)

Obligations by program activity:
Reimbursable Guaranty provisions/claim payments .....

280
17

72.40

Outlays (gross), detail:
Outlays from permanent balances ................................

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.20
Interest on U.S. securities ....................................
88.40
Non-Federal sources .............................................

–3
–37

–3
–30

–3
–22

88.90

–40

–33

–25

86.98

89.00
90.00

Total, offsetting collections (cash) ..................

Status of Direct Loans (in millions of dollars)
1996 actual

Identification code 71–4030–0–3–151

133

251

368

1210
1231
1251
1264

84
8
–28
–11

1290

Outstanding, end of year ..........................................

1997 est.

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................
Non-Federal liabilities:
2204
Liabilities for loan guarantees ...........
2207
Other ...................................................

97
26

218
19

339
17

2999

127

241

356

Identification code 71–4030–0–3–151

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................

53
31
3 ...................
–20
–12
–5
–3

..................

36
19

1998 est.

Total liabilities ....................................
NET POSITION:
3300 Cumulative results of operations ............
3999

Total net position ................................

Status of Guaranteed Loans (in millions of dollars)
1996 actual

287

1997 est.

216

1998 est.

161

106

OVERSEAS PRIVATE INVESTMENT CORPORATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

Credit accounts—Continued

TRADE

General and special funds:
TRADE AND DEVELOPMENT AGENCY

Status of Guaranteed Loans (in millions of dollars)—Continued
1996 actual

1997 est.

1998 est.

2231
2251
2264

Disbursements of new guaranteed loans ......................
Repayments and prepayments ......................................
Adjustments: Other adjustments, net ...........................

2290

Outstanding, end of year ..........................................

216

161

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

216

161

8
20
5
–78
–75
–75
–1 ................... ...................

As required by the Federal Credit Reform Act of 1990,
this account records, for this program, all cash flows to and
from the Government resulting from direct loans obligated
and loan guarantees committed prior to 1992. This account
is shown on a cash basis. All new activity in this program
in 1992 and beyond (including modifications of direct loans
or loan guarantees that resulted from obligations or commitments in any year) is recorded in corresponding program,
financing, and noncredit accounts.
Statement of Operations (in millions of dollars)
Identification code 71–4030–0–3–151

1995 actual

1996 actual

1997 est.

DEVELOPMENT AGENCY

Federal Funds

OVERSEAS PRIVATE INVESTMENT CORPORATION LIQUIDATING
ACCOUNT—Continued

Identification code 71–4030–0–3–151

AND

1998 est.

0101
0102

Revenue ...................................................
Expense ....................................................

52
–18

12
9

12
–2

0109

Net income or loss (–) ............................

For necessary expenses to carry out the provisions of section 661
of the Foreign Assistance Act of 1961, ø$40,000,000¿ $43,000,000,
to remain available until September 30, 1999: Provided, That the
Trade and Development Agency may receive reimbursements from
corporations and other entities for the costs of grants for feasibility
studies and other project planning services, to be deposited as an
offsetting collection to this account and to be available for obligation
until September 30, ø1998¿ 1999, for necessary expenses under this
paragraph: Provided further, That such reimbursements shall not
cover, or be allocated against, direct or indirect administrative costs
of the agency. (Foreign Operations, Export Financing, and Related
Programs Appropriation Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 11–1001–0–1–151

10.00

Obligations by program activity:
Total obligations ............................................................

Budgetary resources available for obligation:
Unobligated balance available, start of year: Treasury
balance ......................................................................
22.00 New budget authority (gross) ........................................
22.22 Unobligated balance transferred from Assistance for
NIS .............................................................................

1996 actual

1997 est.

1998 est.

8
49

11
45

1
43

21.40

23.90
23.95
24.40

10 ................... ...................
67
–56

56
–55

44
–43

40.00
42.00

Identification code 71–4030–0–3–151

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1102
Treasury securities, par ..................
1106
Receivables, net .............................
1206 Non-Federal assets: Receivables, net .....
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1603
Allowance for estimated uncollectible
loans and interest (–) ....................
1604
Direct loans and interest receivable,
net ..................................................
1699
1706

Value of assets related to direct
loans ..........................................
Foreclosed property .............................

1999

Total assets ........................................
LIABILITIES:
2104 Federal liabilities: Resources payable to
Treasury ...............................................
2207 Non-Federal liabilities: Other ..................
2999

Total liabilities ....................................
NET POSITION:
3200 Invested capital .......................................
3300 Cumulative results of operations ............

1995 actual

1996 actual

1997 est.

106

35
1
1

40
43
5 ...................

Appropriation (total) ..................................................

70.00

1998 est.

40
9

43.00

Balance Sheet (in millions of dollars)

New budget authority (gross), detail:
Appropriation ..................................................................
Transferred from other accounts ...................................

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

76
78
78
56
55
43
–52
–56
–50
–2 ................... ...................
78

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

11
41

12
44

12
38

86.90
86.93

–34

–18

–17

–14

87.00

Total outlays (gross) .................................................

2
89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

49
52

45
56

43
50

49
3

35
3

14
3

2
3

162

181

134

101

..................
15

43
15

45
12

40
10

50
97

50
73

50
27

50
1

3999

Total net position ................................

147

123

Total liabilities and net position ............

162

181

134

101

Object Classification (in millions of dollars)

4999

These funds are for the costs of the U.S. Trade and Development Agency (TDA), including program costs of grants for
feasibility studies and other project planning activities, and
those of managing the TDA programs, such as salaries and
expenses of direct hire personnel and obtaining the services
of consultants. TDA finances these activities for major
projects in the developing world to foster economic development and to encourage the use of U.S. technology, goods,
and services in project implementation.

Identification code 11–1001–0–1–151

11.1
12.1
25.1

Personnel compensation: Full-time permanent .............
Civilian personnel benefits ............................................
Advisory and assistance services ..................................

1996 actual

2
1
1

1997 est.

1998 est.

2
1
1

OVERSEAS PRIVATE INVESTMENT CORPORATION—Continued
Federal Funds

FUNDS APPROPRIATED TO THE PRESIDENT
41.0
99.5

Grants, subsidies, and contributions ............................
Below reporting threshold ..............................................

51
1

50
1

38
1

99.9

Total obligations ........................................................

87.00

Total outlays (gross) .................................................

222

250

233

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–9

–11

–10

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

218
214

220
239

222
223

Personnel Summary
1996 actual

Identification code 11–1001–0–1–151

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1997 est.

1998 est.

PEACE CORPS
Federal Funds
General and special funds:
PEACE CORPS

For expenses necessary to carry out the provisions of the Peace
Corps Act (75 Stat. 612), ø$208,000,000¿ $222,000,000, including the
purchase of not to exceed five passenger motor vehicles for administrative purposes for use outside of the United States: Provided, That
none of the funds appropriated under this heading shall be used
to pay for abortions: Provided further, That funds appropriated under
this heading shall remain available until September 30, ø1998¿ 1999.
(Foreign Operations, Export Financing, and Related Programs Appropriation Act, 1997.)
Program and Financing (in millions of dollars)
Identification code 11–0100–0–1–151

Obligations by program activity:
Direct program:
00.01
Africa Region .............................................................
00.02
Asia Pacific Region ...................................................
00.03
Europe, Central Asia, and Mediterranean .................
00.04
Inter-American Region ...............................................
00.05
Other Volunteer Support ............................................

1996 actual

1997 est.

1998 est.

52
17
27
31
97

53
17
28
31
97

52
16
27
29
99

00.91
01.01

Total direct program .............................................
Reimbursable program ..................................................

224
8

226
10

223
9

10.00

Total obligations ........................................................

232

236

232

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
12
22.00 New budget authority (gross) ........................................
227
22.22 Unobligated balance transferred from other accounts ...................
22.30 Unobligated balance expiring ........................................
–1
21.40

23.90
23.95
24.40

238
–232

5 ...................
231
232
1 ...................
–1 ...................
236
–236

43.00

Appropriation (total) .............................................
Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

218

220

222

Total new budget authority (gross) ..........................

227

231

232

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

86.90
86.93
86.97

Object Classification (in millions of dollars)
Identification code 11–0100–0–1–151

208
222
12 ...................

70.00

Peace Corps operating expenses will provide direct and indirect support for approximately 6,600 Americans engaged in
voluntary services in 89 countries worldwide in 1997. The
Volunteers help fill the trained manpower needs of developing
countries and encourage self-sustaining development of skilled
manpower. Peace Corps promotes mutual understanding between the peoples of the developing world and the United
States and focuses the attention of the American people on
the concepts of voluntarism and self-help at the grassroots
level.
Africa Region.—The Africa Region will support 1,277 new
trainees and an average of 2,254 Volunteers during 1997.
These Volunteers and trainees will work in 30 sub-Saharan
countries, in the areas of agriculture, education, economic
development, health, and environment.
Asia Pacific Region.—In 1997 an average of 762 Volunteers
will work in this diverse region, with Peace Corps programs
in 17 countries ranging from Nepal to nations in the Pacific.
This office will support 436 new trainees in programs mainly
in the areas of education, health and environment.
Europe, Central Asia, and Mediterranean.—In 1997 an average of 1,336 Volunteers will work in 20 countries in Eastern
and Central Europe, the former Soviet Union, and North Africa. The region will support 874 new trainees, who will work
primarily in education, economic development, and environment.
Inter-American Region.—An average of 1,623 Volunteers
will work in 22 countries in the Caribbean, Central America,
and South America, in the areas of environment, agriculture,
economic development, education, and health. This office will
also fund 890 new trainees in 1997.
Other Volunteer Support.—These activities fund a wide
range of Volunteer- and program-related costs, including medical support for Volunteers, recruitment and placement, technical resources, domestic programs, policy and direction, and
related administration and oversight.

5 ................... ...................

205
13

68.00

89.00
90.00

232
–232

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
42.00
Transferred from other accounts ..............................

60
68
54
232
236
232
–222
–250
–233
–2 ................... ...................
68

167
47
8

176
63
11

11.1
11.3
11.5
11.8
11.8
11.9
12.1
13.0
21.0
22.0
23.1
23.2
23.3

1996 actual

1997 est.

1998 est.

44
2
1

46
1
1

45
1
1

1
21

1
20

1
19

69
40
1
24
2
6
6

69
42
1
26
2
6
7

67
42
1
25
2
6
7

8
1
33

6
1
35

6
1
36

25.6
25.7
26.0
31.0

Total personnel compensation .........................
Civilian personnel benefits .......................................
Benefits for former personnel ...................................
Travel and transportation of persons .......................
Transportation of things ...........................................
Rental payments to GSA ...........................................
Rental payments to others ........................................
Communications, utilities, and miscellaneous
charges .................................................................
Printing and reproduction .........................................
Other services ............................................................
Purchases of goods and services from Government
accounts ................................................................
Medical care ..............................................................
Operation and maintenance of equipment ...............
Supplies and materials .............................................
Equipment .................................................................

5
11
1
9
7

6
9
1
8
6

6
10
1
7
5

99.0

Subtotal, direct obligations ..................................

223

225

222

24.0
25.2
25.3

178
45
10

107

108

OVERSEAS PRIVATE INVESTMENT CORPORATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998

PEACE CORPS—Continued

102–138, is maintained by annual Government contributions
which are appropriated in the Peace Corps salaries and expenses account.

General and special funds—Continued
PEACE CORPS—Continued

Object Classification (in millions of dollars)—Continued
1996 actual

Identification code 11–0100–0–1–151

Personnel Summary

1997 est.

1998 est.

1996 actual

Identification code 11–9972–0–7–151

99.0
99.5

Reimbursable obligations ..............................................
Below reporting threshold ..............................................

7
2

9
2

8
2

99.9

Total obligations ........................................................

232

236

1997 est.

1998 est.

232

1001

Direct:
Total compensable workyears:
1001
Full-time equivalent employment ..............................
1005
Full-time equivalent of overtime and holiday hours
Reimbursable:
2001 Total compensable workyears: Full-time equivalent
employment ...............................................................

INTER-AMERICAN FOUNDATION

Personnel Summary
Identification code 11–0100–0–1–151

Total compensable workyears: Full-time equivalent
employment ...............................................................

Federal Funds
1996 actual

1997 est.

1998 est.

General and special funds:
INTER-AMERICAN FOUNDATION

1,090
4

1,146
4

1,132
4

For expenses necessary to carry out the functions of the Inter-American Foundation in accordance with section 401 of the Foreign Assistance Act of 1969, and to make such contracts and commitments without regard to fiscal year limitations, as provided by 31 U.S.C. 9104,
$22,000,000.
Program and Financing (in millions of dollars)
Identification code 11–3100–0–1–151

PEACE CORPS MISCELLANEOUS TRUST FUNDS

1996 actual

1997 est.

1998 est.

Balance, start of year:
Balance, start of year .................................................... ................... ................... ...................
Receipts:
02.01 Miscellaneous trust funds, Peace Corps ....................... ...................
1
1
Appropriation:
05.01 Peace Corps miscellaneous trust fund .........................
–1
–1
–1

1997 est.

1998 est.

00.01
00.02
00.03
00.04

Obligations by program activity:
Development Grants .......................................................
Development Research and Evaluation .........................
In-country Support .........................................................
Program Management and Operation ...........................

15
1
3
6

17
1
3
7

19
1
3
7

10.00

Total obligations ........................................................

8
34

16
28

16
30

42
–25

44
–28

46
–30

Unavailable Collections (in millions of dollars)
Identification code 11–9972–0–7–151

1996 actual

01.99

05.99
07.99

Subtotal appropriation ................................................... ...................
–1
–1
Total balance, end of year ............................................ ................... ................... ...................

23.90
23.95
24.90

Program and Financing (in millions of dollars)
Identification code 11–9972–0–7–151

1996 actual

1997 est.

1998 est.

Obligations by program activity:
Total obligations (object class 26.0) ............................

2
1

1
1

3
–1

2
–1

10.00

21.40

23.90
23.95
24.40

21.90

New budget authority (gross), detail:
Current:
40.00
Appropriation ............................................................. ................... ...................
22
42.00
Transferred from other accounts ..............................
20
20 ...................
43.00

Appropriation (total) .............................................
Permanent:
Spending authority from offsetting collections:
Funds Availability (&Z) .........................................

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Obligated balance: Appropriation .............................
72.95
Orders on hand from Federal sources ......................

27
1

21
1

13
1

28
25
–33

22
28
–36

14
30
–33

21
1

13
1

11
1

68.00
70.00

60.27

New budget authority (gross), detail:
Appropriation (trust fund, indefinite) ............................

73.10
73.20

Change in unpaid obligations:
New obligations .............................................................
Total outlays (gross) ......................................................

1
–1

72.99
73.10
73.20

86.98

Outlays (gross), detail:
Outlays from permanent balances ................................

74.40
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Obligated balance: Appropriation .............................
Orders on hand from Federal sources ......................

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

74.99

Total unpaid obligations, end of year ..................

89.00
90.00

1
1

86.90
86.93
86.97
86.98

11
13
4
5

10
16
3
7

11
13
3
6

87.00

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–14

–8

Miscellaneous contributions received by gift, devise, bequest, or from foreign governments are used in furtherance
of the program, as authorized by 22 U.S.C. 2509(a)(3) (75
Stat. 612, as amended). Trust funds also include a fund to
pay separation costs for Foreign Service National employees
of the Peace Corps in those countries in which such pay
is legally authorized. The fund, as authorized by Public Law

OVERSEAS PRIVATE INVESTMENT CORPORATION—Continued
Federal Funds

FUNDS APPROPRIATED TO THE PRESIDENT

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

109

AFRICAN DEVELOPMENT FOUNDATION
20
19

20
28

22
25

Federal Funds
General and special funds:

Established by the 1969 Foreign Assistance Act, the InterAmerican Foundation supports grassroots development initiatives in Latin America and the Caribbean with a direct impact on the lives and the capacity for self reliance of people
at the lowest economic levels. In addition to appropriations
and private gifts, the Foundation is funded by annual transfers from the Social Progress Trust Fund administered by
the Inter-American Development Bank. In FY 1998, the IAF
will continue its new strategic programming approach which
emphasizes: 1) building partnerships among grassroots organizations, NGOs, local governments, and private sector institutions to foster local social and economic development, and
2) expanding access to local public and private sector resources for grassroots development. The IAF will continue
to refine its system of measuring the results of its grants
for the purposes of identifying and disseminating innovative
development approaches for the benefit of the major development funders and development practitioners. Using information derived from the Results System/Grassroots Development
Framework and other data arising from its grantmaking activities, the Foundation will implement a new system, developed in fiscal year 1997, to systematically incorporate lessons
learned back into the Foundation’s strategic planning and
grant decision-making processes. It will also disseminate the
results assessment system and development information to
partner organizations in the region and other donors and
grassroots practitioners in general.
Development Grants.—This activity includes the cost of all
grants made directly to grassroots membership and service
organizations to carry out development projects in Latin
America and the Caribbean. In 1998, the Foundation plans
to award approximately 110 grants and 190 grant supplements in 17 countries.
Development Research and Evaluation.—This activity funds
grants and fellowships for grassroots development research
and for the evaluation of the Foundation’s projects.
In-country Support.—Resources associated with this activity
are used by local development professionals in Latin America
and the Caribbean to provide grantees with technical assistance and training when necessary to conduct and assess the
results of their projects.
Program Management and Operation.—This activity includes Foundation expenses for salaries and benefits, travel
expenses, rent, service contracts, and other support costs.

1996 actual

Program and Financing (in millions of dollars)
Identification code 11–0700–0–1–151

1996 actual

Obligations by program activity:
Development Grants .......................................................
5
Strategic Partnerships, Development Research and
Dissemination ............................................................ ...................
00.03 In-country Support .........................................................
2
00.04 Program Management and Operation ...........................
4

00.01
00.02

1997 est.

1998 est.

1
1
4

10.00

Total obligations ........................................................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

12
–11

12
–12

14
–14

40.00
42.00

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................
14
Transferred from other accounts ...................................
12
12 ...................

43.00

Appropriation (total) ..................................................

70.00

Total new budget authority (gross) ..........................

17
11
–13

15
12
–12

14
14
–13

72.40

1997 est.

11.1

Personnel compensation:
Full-time permanent ..................................................

Total personnel compensation ..............................
4
Civilian personnel benefits ............................................
1
Rental payments to others ............................................
1
Advisory and assistance services ..................................
3
Grants, subsidies, and contributions ............................
16
Below reporting threshold .............................................. ...................

4
1
1
3
18
1

4
1
1
3
20
1

5
8

5
7

6
7

Total outlays (gross) .................................................

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

12
13

12
12

14
13

11.9
12.1
23.2
25.1
41.0
99.5

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

89.00
90.00

1998 est.

86.90
86.93
87.00

Object Classification (in millions of dollars)
Identification code 11–3100–0–1–151

AFRICAN DEVELOPMENT FOUNDATION

For the necessary expenses to carry out Title V of the International
Security and Development Cooperation Act of 1980, Public Law 96–
533, and to make such contract commitments without regard to fiscal
year limitations, as provided by 31 U.S.C. 9104, $14,000,000: Provided, That funds made available to grantees may be invested pending
expenditure for project purposes when authorized by the President
of the Foundation: Provided further, That interest earned shall be
used only for the purposes for which the grant was made: Provided
further, That this authority applies to interest earned both prior to
and following enactment of this provision: Provided further, That
notwithstanding section 505(a)(2) of the African Development Foundation Act, in exceptional circumstances the board of directors of the
Foundation may waive the $250,000 limitation contained in that section with respect to a project: Provided further, That the Foundation
shall provide a report to the Committees on Appropriations, after
each time such waiver authority is exercised.

99.9

Total obligations ........................................................

Personnel Summary
Identification code 11–3100–0–1–151

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1996 actual

1997 est.

1998 est.

The African Development Foundation (ADF) is a public corporation which plays a unique role within the U.S. Government’s foreign assistance programs in Africa. Through its
small grants program, ADF has a record of delivering high
impact, low cost assistance to support the development of
micro-enterprise, agro-business, water, energy, and environmental initiatives at the grassroots level. The Foundation
has pioneered participatory development in Africa and its
grants have strengthened African institutions and local capacities. All ADF-funded activities are locally conceived, and
small grants are made directly to private grassroots African
groups to enable them to solve their own problems. ADF
assistance is premised on self-help and fosters self-reliance
through its promotion of African leadership and ownership
of the development process.

110

OVERSEAS PRIVATE INVESTMENT CORPORATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
24.40

AFRICAN DEVELOPMENT FOUNDATION—Continued
General and special funds—Continued
AFRICAN DEVELOPMENT FOUNDATION—Continued

Unobligated balance available, end of year:
Uninvested balance ...................................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

15,598

72.40

Over the past two years, the Foundation has taken significant steps to enhance its efficiency and effectiveness. Operating costs were decreased through staff reductions and country
closures. To increase its development impact, the Foundation
has developed a Corporate Strategic Plan and is developing
individual country strategic plans for the 14 countries in
which it remains engaged. These plans include clear objectives and quantifiable performance criteria. The Foundation
is also pursuing strategic partnerships with the private sector
and other donors to leverage additional resources and to develop new models of assistance for Africa.
Development Grants.—This activity funds projects of up to
$250,000 each, designed and implemented by grassroots African organizations.
Strategic Partnerships, Development Research and Dissemination.—These activities are funds used to establish strategic
partnerships designed to leverage additional resources for development, to support applied research on critical development problems by African reseachers, and to disseminate research results and lessons learned from the Foundation’s activities.
In-Country Support.—This activity funds technical assistance and other support given by African professionals to ADFfunded projects.
Program Management and Operation.—This activity funds
expenses for staff salaries and benefits, rent, travel, communications, and other support costs.
Object Classification (in millions of dollars)
1996 actual

Identification code 11–0700–0–1–151

11.1
12.1
41.0
99.5

Personnel compensation: Full-time permanent .............
Civilian personnel benefits ............................................
Grants, subsidies, and contributions ............................
Below reporting threshold ..............................................

99.9

Total obligations ........................................................

1997 est.

1998 est.

2
2
1
1
7
9
1 ...................
11

2
1
10
1

25,170
22,666
22,666
976 ................... ...................
–675 ................... ...................
–2,805 ................... ...................
22,666

22,666

86.98

Outlays (gross), detail:
Outlays from permanent balances ................................

89.00
90.00

675 ................... ...................

The Administration is in the process of reviewing quotas
as part of the IMF’s Eleventh General Review of Quotas.
In this context, an authorization and appropriation for Fiscal
Year 1998 or for subsequent years for an increase in the
United States quota may be sought. Consultation with Congress will take place as the discussions within the IMF on
the next quota increase proceed. A specific amount for any
agreed increase in the United States quota resulting from
these negotiations will be requested upon their conclusion.
In accordance with the budgetary treatment recommended
by the Presidential Commission on Budgetary Concepts in
1968 and modifies by the Congress in 1980, United States
transactions with the IMF will not be scored as outlays and
thus will not increase the deficit. Under this approach, any
increase in the U.S. quota would not be scored as a budget
outlay. This is because the United States receives an increase
in its international reserve asset corresponding to any transfer under the U.S. quota subscription. The United States can
use these interest-bearing reserves automatically to meet a
balance of payments financing need.
Following the precedent of the Budget Enforcement Act
of 1990, we will propose to amend that Act so that there
is an adjustment to the discretionary spending limitation for
the budget authority for such an appropriation.

Personnel Summary
1996 actual

Identification code 11–0700–0–1–151

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1997 est.

LOANS

1998 est.

INTERNATIONAL MONETARY PROGRAMS
Federal Funds

INTERNATIONAL MONETARY FUND

For loans to the International Monetary Fund under the New Arrangements to Borrow, the dollar equivalent of 2,462,000,000 Special
Drawing Rights, to remain available until expended; in addition, up
to the dollar equivalent of 4,250,000,000 Special Drawing Rights previously appropriated by the Act of November 30, 1983 (Public Law
98–181), and the Act of October 23, 1962 (Public Law 87–872), for
the General Arrangements to Borrow, may also be used for the New
Arrangements to Borrow. (Authorizing legislation required.)

General and special funds:

Program and Financing (in millions of dollars)

UNITED STATES QUOTA, INTERNATIONAL MONETARY FUND

Identification code 11–0074–0–1–155

1996 actual

1997 est.

1998 est.

Program and Financing (in millions of dollars)
Identification code 11–0003–0–1–155

1996 actual

1997 est.

1998 est.

Obligations by program activity:
00.02 Valuation adjustment on IMF reserve position .............

976 ................... ...................

10.00

976 ................... ...................

Total obligations (object class 33.0) ........................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.10 Resources available from recoveries of prior year obligations .......................................................................
22.30 Unobligated balance expiring ........................................

16,573
15,598
15,598
–976 ................... ...................

23.90
23.95
24.40

2,805 ................... ...................
–2,059 ................... ...................

23.90
23.95

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
6,078
6,078
22.00 New budget authority (gross) ........................................ ................... ...................
21.40

21.40

Total budgetary resources available for obligation
New obligations .............................................................

15,827

15,598

6,078
3,521

Total budgetary resources available for obligation
6,078
6,078
9,599
New obligations ............................................................. ................... ................... ...................
Unobligated balance available, end of year:
Uninvested balance ...................................................
6,078
6,078
9,599

40.00

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
3,521
Outlays ........................................................................... ................... ................... ...................

3,521

MILITARY SALES PROGRAMS
Federal Funds

FUNDS APPROPRIATED TO THE PRESIDENT

The General Arrangements to Borrow (GAB) was established in 1962 by 10 industrial countries, including the United
States, as a means of supplementing the IMF’s resources
when needed to forestall or cope with an impairment of the
international monetary system.
Authorization and appropriations for Fiscal Year 1998 in
the dollar equivalent of 2,462 million Special Drawing Rights
to cover the unappropriated United States share of the proposed New Arrangements to Borrow (NAB) is being sought.
The Executive Board of the IMF is expected to take a formal
decision on the New Arrangements to Borrow early in 1997.
The proposed New Arrangements to Borrow is a set of individual credit lines, modeled on the existing GAB, extended to
the IMF by a number of countries to be used to supplement
the IMF’s resources in responding to financial crises that
threaten the international monetary system.
In accordance with the budgetary treatment recommended
by the Presidential Commission on Budgetary Concepts in
1968 and modified by the Congress in 1980, United States
transactions with the IMF will not be scored as outlays and
thus will not increase the deficit. Any amount appropriated
for the New Arrangements to Borrow will be treated in the
same way as amounts already appropriated for the GAB.
Under this budgetary treatment, financing extended by the
United States under the GAB would not be scored as an
outlay because the United States receives an increase in its
international reserve assets corresponding to any transfer to
the IMF under the U.S. credit.
During 1996, no calls were made on the U.S. commitment
under the GAB, and no U.S. loans were outstanding at the
end of the year.

111

terms tping countries with protracted payments problems.
Borrowers must be prepared to adopt multi-year economic
and structural reform programs.
The resources of the ESAF are provided through loans to
the ESAF Trust and special interest subsidy contributions
by member countries. Nearly $7.5 billion in concessional loans
have been committed under the original facility. In 1994 the
IMF membership agreed to a successor ESAF, bringing the
total loan amount available to roughly $15 billion. Loans are
disbursed over a three-year period with repayments ending
10 years from the date of disbursement. The interest subsidy
contributions underwrite a 0.5 percent concessional rate of
interest.
The Congress approved $150 million for the U.S. contribution to the initial ESAF interest subsidy account. The Administration offered to contribute an additional $100 million to
the interest subsidy account of the enhanced ESAF, with outlays to occur over a 15-year period beginning in Fiscal Year
1997. Congress authorized and appropriated $25 million in
Fiscal Year 1995. The Administration sought but did not receive appropriations of $25 million in Fiscal Year 1996 and
$7 million in Fiscal Year 1997. The Administration is seeking
an appropriation of $7 million for Fiscal Year 1998. It is
also seeking authorization of the full amount of the remaining
$75 million of the commitment.

MILITARY SALES PROGRAMS
Federal Funds
Public enterprise funds:
SPECIAL DEFENSE ACQUISITION FUND

CONTRIBUTION

TO ENHANCED STRUCTURAL ADJUSTMENT
OF THE INTERNATIONAL MONETARY FUND

Program and Financing (in millions of dollars)

FACILITY

For payment to the Interest Subsidy Account of the Enhanced Structural Adjustment Facility of the International Monetary Fund,
$7,000,000, to remain available until expended.
Program and Financing (in millions of dollars)
Identification code 11–0005–0–1–155

1996 actual

1997 est.

Identification code 11–4116–0–3–155

10.00

1998 est.

Obligations by program activity:
Contribution for subsidy ................................................ ................... ...................

10.00

Total obligations (object class 41.0) ........................ ................... ...................

22.00
23.95

71
7
–24
54

Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................
ity
................... ................... ...................
86.93 Outlays from current balances ......................................
19
26
24
19

Total budgetary resources available for obligation
194
New obligations ............................................................. ...................
Unobligated balance available, end of year: Fund
balance ......................................................................
194

New budget authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.27
Capital transfer to general fund ..............................

173
–173

196
–2

195
–7

194

188

166
–166

106
–106

Spending authority from offsetting collections
(total) ................................................................ ................... ................... ...................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
111
73.10 New obligations ............................................................. ...................
73.20 Total outlays (gross) ......................................................
–36
73.45 Adjustments in unexpired accounts .............................. ...................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................
75

7
24

The Enhanced Structural Adjustment Facility (ESAF) was
created in 1987 to enable the International Monetary Fund
to provide balance of payments assistance on concessional

75
2
–32
–2

43
7
–22
–1

Outlays (gross), detail:
Outlays from permanent balances ................................

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

–173

–166

–106

Net budget authority and outlays:
Budget authority ............................................................

–173

–166

–106

86.98
Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ...................
90.00 Outlays ...........................................................................
19
26

72.90

86.90

Total outlays (gross) .................................................

23.90
23.95
24.90

68.90

72.40

87.00

1998 est.

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
343
194
194
22.10 Resources available from recoveries of prior year obligations ....................................................................... ...................
2
1
22.40 Capital transfer to general fund ...................................
–149 ................... ...................

7
–7

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
116
97
73.10 New obligations ............................................................. ................... ...................
73.20 Total outlays (gross) ......................................................
–19
–26
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
97
71

Obligations by program activity:
Total obligations (object class 25.2) ............................ ...................

1997 est.

21.90

00.01

New budget authority (gross), detail:
40.00 Appropriation .................................................................. ................... ...................

1996 actual

89.00

112

MILITARY SALES PROGRAMS—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1998
60.49

SPECIAL DEFENSE ACQUISITION FUND—Continued
Program and Financing (in millions of dollars)—Continued

Portion applied to liquidate contract authority .............

63.00
66.15

Public enterprise funds—Continued

Appropriation (total) .................................................. ................... ................... ...................
Contract authority (indefinite) .......................................
15,299
14,520
13,490

70.00

–14,747

–13,760

–13,400

Outlays ...........................................................................

–137

–134

15,299

14,520

13,490

Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
72.40
Appropriation .........................................................
72.49
Contract authority .................................................

5,462
18,788

5,887
19,340

5,987
20,100

24,250
15,299
–14,323

25,227
14,520
–13,660

26,087
13,490
–13,280

74.40
74.49

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Obligated balance:
Appropriation .........................................................
Contract authority .................................................

5,887
19,340

5,987
20,100

6,107
20,190

Total unpaid obligations, end of year ..................

25,227

26,087

26,297

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

1,647
12,676

1,571
12,089

1,527
11,753

87.00

90.00

1997 est.

Total new budget authority (gross) ..........................

74.99

1996 actual

Identification code 11–4116–0–3–155

Total outlays (gross) .................................................

14,323

13,660

13,280

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

15,299
14,323

14,520
13,660

13,490
13,280

1998 est.

–84

This fund shows the financing transactions related to the
transfer of defense articles and services to foreign countries
and international organizations. This program is being phased
out.

72.99
73.10
73.20

Balance Sheet (in millions of dollars)
1995 actual

Identification code 11–4116–0–3–155

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
1802 Other Federal assets: Inventories and
related properties ................................
1999

Total liabilities ....................................
NET POSITION:
3200 Invested capital .......................................

1996 actual

1997 est.

1998 est.

454

269

237

215

204

138

683

441

314

277

..................

..................
161

1
239

..................
280

..................
277

161

241

280

277

522

200

..................

3999

Total net position ................................

522

200

..................

4999

Total liabilities and net position ............

683

441

314

277

Status of Contract Authority (in millions of dollars)
1996 actual

Identification code 11–8242–0–7–155

0100

Balance, start of year ....................................................
Contract authority:
0200 Contract authority ..........................................................
0400 Appropriation to liquidate contract authority ................
0700 Balance, end of year .....................................................

1997 est.

19,340

20,100

15,299
–14,747
19,340

14,520
–13,760
20,100

13,490
–13,400
20,190

This trust fund facilitates government-to-government sales
of defense articles, defense services, and design and construction services. Estimates of sales used in this budget are (in
millions of dollars):

Trust Funds
FOREIGN MILITARY SALES TRUST FUND
Unavailable Collections (in millions of dollars)

1996 actual
Identification code 11–8242–0–7–155

Balance, start of year:
01.99 Encumbered future receipts, start of year ....................
Receipts:
02.01 Deposits, advances, foreign military sales ...................
04.00

Total: Balances and collections ....................................
Appropriation:
05.01 Foreign military sales trust fund ..................................
07.99 Total balance, end of year ............................................

1996 actual

–18,788

1997 est.

–19,340

1998 est.

–20,100

14,747

13,760

13,400

–4,041

–5,580

–6,700

–15,299
–19,340

–14,520
–20,100

–13,490
–20,190

Estimates of new orders (sales) .................................................

1996 actual

1997 est.

10,339

10,555

1998 est.

10,544

Orders placed through this trust fund can be combined
with procurement for U.S. military departments. The savings
are shared by the United States and foreign governments.
The net impact of foreign military sales on the budget is
(in thousands of dollars):
1996 actual

1997 est.

1998 est.

Obligations of the fund .................................................
Receipts from foreign governments (appropriation) .....

15,299
¥14,747

14,520
¥13,760

13,490
¥13,400

Net budget authority .............................................

562

760

Payments from the fund (outlays) ................................
Receipts from foreign governments (appropriation) .....

14,322
¥14,747

13,660
¥13,760

13,280
¥13,400

Net outlays ............................................................

¥425

¥100

¥120

Program and Financing (in millions of dollars)
Identification code 11–8242–0–7–155

1998 est.

18,788

1997 est.

1998 est.

Obligations by program activity:
Reimbursable activity:
00.01
Military personnel ......................................................
00.02
Operations and maintenance ....................................
00.03
Procurement ...............................................................
00.04
Research, development, test, and evaluation ..........
00.05
Special defense acquisition fund .............................
00.06
Revolving and mgt funds .........................................
00.07 Construction ...................................................................
00.08 Other ..............................................................................

96
292
13,020
23
173
1,201
139
355

91
277
12,338
21
166
1,140
132
355

84
257
11,498
20
106
1,059
123
343

09.00

Sub-total, Reimbursable Obligations ........................

15,299

14,520

13,490

10.00

Total obligations (object class 25.3) ........................

15,299

14,520

13,490

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

15,299
–15,299

14,520
–14,520

13,490
–13,490

New budget authority (gross), detail:
60.27 Appropriation (trust fund, indefinite) ............................

14,747

13,760

13,400

KUWAIT CIVIL RECONSTRUCTION TRUST FUND
Program and Financing (in millions of dollars)
Identification code 11–8238–0–7–155

1996 actual

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
3
22.30 Unobligated balance expiring ........................................ ...................

1997 est.

1998 est.

21.40

23.90
24.40

Total budgetary resources available for obligation
Unobligated balance available, end of year:
Uninvested balance ...................................................

3 ...................
–3 ...................

3 ................... ...................
3 ................... ...................

TITLE V—GENERAL PROVISIONS

FUNDS APPROPRIATED TO THE PRESIDENT

89.00
90.00

This trust fund was established to show the U.S. costs
in helping the Government of Kuwait survey and assess the
cost of repairing its civil infrastructure. The Government of
Kuwait reimburses the United States with its own funds for
all incurred expenses. Any unused funds will be returned
to the Government of Kuwait.

OTHER CONSOLIDATED RECEIPT ACCOUNTS
(in millions of dollars)
1996 actual

72–972110 Miscellaneous credit reform accounts, AID .....

Federal Funds

TITLE V—GENERAL PROVISIONS

PROHIBITION

General and special funds:
TRANSITION FUND

1996 actual

1997 est.

1998 est.

3 ................... ...................

3 ................... ...................
–3 ................... ...................

21.40

6
6
3
3 ................... ...................
–4
–3
–3
6

3 ...................

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

89.00
90.00

Funds for this account were transferred from Foreign Military Financing pursuant to P.L. 101–513, to support costs
of demobilization, retraining, relocation, and reemployment
in civilian pursuits of former combatants in the conflict in
El Salvador.

CENTRAL AMERICAN RECONCILIATION ASSISTANCE
Program and Financing (in millions of dollars)
Identification code 11–1038–0–1–152

1996 actual

BILATERAL FUNDING FOR INTERNATIONAL
FINANCIAL INSTITUTIONS

LIMITATION

Obligations by program activity:
Total obligations (object class 41.0) ............................

10.00

1997 est.

1998 est.

89.00
90.00

Funds for this account were transferred from the Department of Defense in accordance with Public Law 101–14 in
order to provide humanitarian assistance to the Nicaraguan
democratic resistance. Adjustments to the account were made
in Public Law 101–119 and Public Law 101–215.

RESIDENCE EXPENSES

SEC. 503. Of the funds appropriated or made available pursuant
to this Act, not to exceed $126,500 shall be for official residence
expenses of the Agency for International Development during the
current fiscal year: Provided, That appropriate steps shall be taken
to assure that, to the maximum extent possible, United States-owned
foreign currencies are utilized in lieu of dollars.
LIMITATION

EXPENSES

SEC. 504. Of the funds appropriated or made available pursuant
to this Act, not to exceed $5,000 shall be for entertainment expenses
of the Agency for International Development during the current fiscal
year.
LIMITATION

REPRESENTATIONAL ALLOWANCES

SEC. 505. Of the funds appropriated or made available pursuant
to this Act, not to exceed $95,000 shall be available for representation
allowances for the Agency for International Development during the
current fiscal year: Provided, That appropriate steps shall be taken
to assure that, to the maximum extent possible, United States-owned
foreign currencies are utilized in lieu of dollars: Provided further,
That of the funds made available by this Act for general costs of
administering military assistance and sales under the heading ‘‘Foreign Military Financing Program’’, not to exceed $2,000 shall be available for entertainment expenses and not to exceed $50,000 shall
be available for representation allowances: Provided further, That
of the funds made available by this Act under the heading ‘‘International Military Education and Training’’, not to exceed $50,000
shall be available for entertainment allowances: Provided further,
That of the funds made available by this Act for the Inter-American
Foundation, not to exceed $2,000 shall be available for entertainment
and representation allowances: Provided further, That of the funds
made available by this Act for the Peace Corps, not to exceed a
total of $4,000 shall be available for entertainment expenses: Provided further, That of the funds made available by this Act under
the heading ‘‘Trade and Development Agency’’, not to exceed $2,000
shall be available for representation and entertainment allowances.
PROHIBITION

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

AVAILABILITY

SEC. 502. None of the funds contained in title II of this Act may
be used to carry out the provisions of section 209(d) of the Foreign
Assistance Act of 1961.

Program and Financing (in millions of dollars)
Identification code 72–1500–0–1–152

1998 est.

SEC. 501. Except for the appropriations entitled ‘‘International Disaster Assistance’’, and ‘‘United States Emergency Refugee and Migration Assistance Fund’’, not more than 15 per centum of any appropriation item made available by this Act shall be obligated during the
last month of availability.

SPECIAL ASSISTANCE FOR CENTRAL
AMERICA

AND

1997 est.

9 ................... ...................

OBLIGATIONS DURING LAST MONTH

DEMOBILIZATION

113

FINANCING NUCLEAR GOODS

SEC. 506. None of the funds appropriated or made available (other
than funds for ‘‘Nonproliferation, Antiterrorism, Demining and Related Programs’’) pursuant to this Act, for carrying out the Foreign
Assistance Act of 1961, may be used, except for purposes of nuclear
safety, to finance the export of nuclear equipment, fuel, or technology.
PROHIBITION AGAINST DIRECT FUNDING

FOR

CERTAIN COUNTRIES

SEC. 507. None of the funds appropriated or otherwise made available pursuant to this Act shall be obligated or expended to finance
directly any assistance or reparations to Cuba, Iraq, Libya, North
Korea, Iran, Sudan, or Syria, unless the President determines that
to do so is in the national interest of the United States: Provided,
That for purposes of this section, the prohibition on obligations or
expenditures shall include direct loans, credits, insurance and guarantees of the Export-Import Bank or its agents.

114

TITLE V—GENERAL PROVISIONS—Continued

THE BUDGET FOR FISCAL YEAR 1998

MILITARY COUPS
SEC. 508. None of the funds appropriated or otherwise made available pursuant to this Act shall be obligated or expended to finance
directly any assistance to any country whose duly elected Head of
Government is deposed by military coup or decree, unless the President determines that to do so is in the national interest of the United
States: Provided, That assistance may be resumed to such country
if the President determines and reports to the Committees on Appropriations that subsequent to the termination of assistance a democratically elected government has taken office.
TRANSFERS BETWEEN ACCOUNTS
SEC. 509. None of the funds made available by this Act may be
obligated under an appropriation account to which they were not
appropriated, except for transfers specifically provided for in this
Act, unless the President, prior to the exercise of any authority contained in the Foreign Assistance Act of 1961 to transfer funds,
consults with and provides a written policy justification to the Committees on Appropriations of the House of Representatives and the
Senate.
DEOBLIGATION/REOBLIGATION AUTHORITY
SEC. 510. (a) Amounts certified pursuant to section 1311 of the
Supplemental Appropriations Act, 1955, as having been obligated
against appropriations heretofore made under the authority of the
Foreign Assistance Act of 1961 for the same general purpose as
any of the headings under title II of this Act are, if deobligated,
hereby continued available for the same period as the respective
appropriations under such headings or until September 30, ø1997¿
1998, whichever is later, and for the same general purpose, and
for countries within the same region as originally obligated: Provided,
That the Appropriations Committees of both Houses of the Congress
are notified fifteen days in advance of the reobligation of such funds
in accordance with regular notification procedures of the Committees
on Appropriations.
(b) Obligated balances of funds appropriated to carry out section
23 of the Arms Export Control Act as of the end of the fiscal year
immediately preceding the current fiscal year are, if deobligated,
hereby continued available during the current fiscal year for the
same purpose under any authority applicable to such appropriations
under this Act: Provided, That the authority of this subsection may
not be used in fiscal year ø1997¿ 1998.
AVAILABILITY

FUNDS

SEC. 511. No part of any appropriation contained in this Act shall
remain available for obligation after the expiration of the current
fiscal year unless expressly so provided in this Act: Provided, That
funds appropriated for the purposes of chapters 1, 8, and 11 of part
I, section 667, and chapter 4 of part II of the Foreign Assistance
Act of 1961, as amended, and funds provided under the heading
‘‘Assistance for Eastern Europe and the Baltic States’’, shall remain
available until expended if such funds are initially obligated before
the expiration of their respective periods of availability contained
in this Act: Provided further, That, notwithstanding any other provision of this Act, any funds made available for the purposes of chapter
1 of part I and chapter 4 of part II of the Foreign Assistance Act
of 1961 which are allocated or obligated for cash disbursements in
order to address balance of payments or economic policy reform objectives, shall remain available until expended: Provided further, That
the report required by section 653(a) of the Foreign Assistance Act
of 1961 shall designate for each country, to the extent known at
the time of submission of such report, those funds allocated for cash
disbursement for balance of payment and economic policy reform
purposes.
LIMITATION

ASSISTANCE

COUNTRIES

DEFAULT

SEC. 512. No part of any appropriation contained in this Act shall
be used to furnish assistance to any country which is in default
during a period in excess of one calendar year in payment to the
United States of principal or interest on any loan made to such
country by the United States pursuant to a program for which funds
are appropriated under this Act, unless the President determines that
furnishing assistance to such country is in the national interest of
the United States: Provided, That this section and section 620(q)
of the Foreign Assistance Act of 1961 shall not apply to funds made
available in this Act or during the current fiscal year for Nicaragua,
and for any narcotics-related assistance for Colombia, Bolivia, and

Peru authorized by the Foreign Assistance Act of 1961 or the Arms
Export Control Act.
øCOMMERCE

AND

TRADE¿

øSEC. 513. (a) None of the funds appropriated or made available
pursuant to this Act for direct assistance and none of the funds
otherwise made available pursuant to this Act to the Export-Import
Bank and the Overseas Private Investment Corporation shall be obligated or expended to finance any loan, any assistance or any other
financial commitments for establishing or expanding production of
any commodity for export by any country other than the United
States, if the commodity is likely to be in surplus on world markets
at the time the resulting productive capacity is expected to become
operative and if the assistance will cause substantial injury to United
States producers of the same, similar, or competing commodity: Provided, That such prohibition shall not apply to the Export-Import
Bank if in the judgment of its Board of Directors the benefits to
industry and employment in the United States are likely to outweigh
the injury to United States producers of the same, similar, or competing commodity, and the Chairman of the Board so notifies the Committees on Appropriations.¿
ø(b) None of the funds appropriated by this or any other Act to
carry out chapter 1 of part I of the Foreign Assistance Act of 1961
shall be available for any testing or breeding feasibility study, variety
improvement or introduction, consultancy, publication, conference, or
training in connection with the growth or production in a foreign
country of an agricultural commodity for export which would compete
with a similar commodity grown or produced in the United States:
Provided, That this subsection shall not prohibit—
(1) activities designed to increase food security in developing
countries where such activities will not have a significant impact
in the export of agricultural commodities of the United States;
or
(2) research activities intended primarily to benefit American
producers.¿
øSURPLUS COMMODITIES¿
øSEC. 514. The Secretary of the Treasury shall instruct the United
States Executive Directors of the International Bank for Reconstruction and Development, the International Development Association,
the International Finance Corporation, the Inter-American Development Bank, the International Monetary Fund, the Asian Development
Bank, the Inter-American Investment Corporation, the North American Development Bank, the European Bank for Reconstruction and
Development, the African Development Bank, and the African Development Fund to use the voice and vote of the United States to
oppose any assistance by these institutions, using funds appropriated
or made available pursuant to this Act, for the production or extraction of any commodity or mineral for export, if it is in surplus on
world markets and if the assistance will cause substantial injury
to United States producers of the same, similar, or competing commodity.¿
NOTIFICATION REQUIREMENTS
SEC. ø515¿ 513. For the purpose of providing the Executive Branch
with the necessary administrative flexibility, none of the funds made
available under this Act for ø‘‘Child Survival and Disease Programs
Fund’’,¿ ‘‘Sustainable Development Assistance’’, ‘‘Development Fund
for Africa’’, ‘‘Enhanced Credit Authority’’, ‘‘Debt restructuring’’, ‘‘International organizations and programs’’, ‘‘Trade and Development Agency’’, ‘‘International narcotics control’’, ‘‘Assistance for Eastern Europe
and the Baltic States’’, ‘‘Assistance for the New Independent State
of the Former Soviet Union’’, ‘‘Economic Support Fund’’, ‘‘Peacekeeping operations’’, ‘‘Operating expenses of the Agency for International
Development’’, ‘‘Operating expenses of the Agency for International
Development Office of Inspector General’’, ø‘‘Nonproliferation, antiterrorism, demining and related programs’’,¿ ‘‘Nonproliferation and
Disarmament Fund’’, ‘‘Anti-terrorism Assistance’’, ‘‘Foreign Military
Financing Program’’, ‘‘International military education and training’’,
‘‘Inter-American Foundation’’, ‘‘African Development Foundation’’,
‘‘Peace Corps’’, ‘‘Migration and refugee assistance’’, shall be available
for obligation for activities, programs, projects, type of materiel assistance, countries, or other operations not justified or in excess of the
amount justified to the Appropriations Committees for obligation
under any of these specific headings unless the Appropriations Committees of both Houses of Congress are previously notified fifteen
days in advance: Provided, That the President shall not enter into
any commitment of funds appropriated for the purposes of section
23 of the Arms Export Control Act for the provision of major defense

TITLE V—GENERAL PROVISIONS—Continued

FUNDS APPROPRIATED TO THE PRESIDENT
equipment, other than conventional ammunition, or other major defense items defined to be aircraft, ships, missiles, or combat vehicles,
not previously justified to Congress or 20 per centum in excess of
the quantities justified to Congress unless the Committees on Appropriations are notified fifteen days in advance of such commitment:
Provided further, That this section shall not apply to any reprogramming for an activity, program, or project under chapter 1 of part
I of the Foreign Assistance Act of 1961 of less than 10 per centum
of the amount previously justified to the Congress for obligation for
such activity, program, or project for the current fiscal year: Provided
further, That the requirements of this section or any similar provision
of this Act or any other Act, including any prior Act requiring notification in accordance with the regular notification procedures of the
Committees on Appropriations, may be waived if failure to do so
would pose a substantial risk to human health or welfare, or the
national interest of the United States: Provided further, That in case
of any such waiver, notification to the Congress, or the appropriate
congressional committees, shall be provided as early as practicable,
but in no event later than three days after taking the action to
which such notification requirement was applicable, in the context
of the circumstances necessitating such waiver: Provided further,
That any notification provided pursuant to such a waiver shall contain an explanation of the emergency circumstances.
Drawdowns made pursuant to section 506(a)(2) of the Foreign Assistance Act of 1961 shall be subject to the regular notification procedures of the Committees on Appropriations.
LIMITATION

AVAILABILITY OF FUNDS FOR INTERNATIONAL
ORGANIZATIONS AND PROGRAMS

SEC. ø516¿ 514. Notwithstanding any other provision of law or
of this Act, none of the funds provided for ‘‘International Organizations and Programs’’ shall be available for the United States proportionate share, in accordance with section 307(c) of the Foreign Assistance Act of 1961, for any programs identified in section 307, or
for Libya, Iran, or, at the discretion of the President, Communist
countries listed in section 620(f) of the Foreign Assistance Act of
1961, as amended: Provided, That, subject to the regular notification
procedures of the Committees on Appropriations, funds appropriated
under this Act or any previously enacted Act making appropriations
for foreign operations, export financing, and related programs, which
are returned or not made available for organizations and programs
because of the implementation of this section or any similar provision
of law, shall remain available for obligation through September 30,
ø1998¿ 1999.
øECONOMIC SUPPORT FUND ASSISTANCE

FOR

ISRAEL¿

øSEC. 517. The Congress finds that progress on the peace process
in the Middle East is vitally important to United States security
interests in the region. The Congress recognizes that, in fulfilling
its obligations under the Treaty of Peace Between the Arab Republic
of Egypt and the State of Israel, done at Washington on March
26, 1979, Israel incurred severe economic burdens. Furthermore, the
Congress recognizes that an economically and militarily secure Israel
serves the security interests of the United States, for a secure Israel
is an Israel which has the incentive and confidence to continue pursuing the peace process. Therefore, the Congress declares that, subject
to the availability of appropriations, it is the policy and the intention
of the United States that the funds provided in annual appropriations
for the Economic Support Fund which are allocated to Israel shall
not be less than the annual debt repayment (interest and principal)
from Israel to the United States Government in recognition that
such a principle serves United States interests in the region.¿
PROHIBITION

FUNDING FOR ABORTIONS
STERILIZATION

AND

INVOLUNTARY

SEC. ø518¿ 515. None of the funds made available to carry out
part I of the Foreign Assistance Act of 1961, as amended, may be
used to pay for the performance of abortions as a method of family
planning or to motivate or coerce any person to practice abortions.
None of the funds made available to carry out part I of the Foreign
Assistance Act of 1961, as amended, may be used to pay for the
performance of involuntary sterilization as a method of family planning or to coerce or provide any financial incentive to any person
to undergo sterilizations. None of the funds made available to carry
out part I of the Foreign Assistance Act of 1961, as amended, may
be used to pay for any biomedical research which relates in whole
or in part, to methods of, or the performance of, abortions or involuntary sterilization as a means of family planning. None of the funds
made available to carry out part I of the Foreign Assistance Act

115

of 1961, as amended, may be obligated or expended for any country
or organization if the President certifies that the use of these funds
by any such country or organization would violate any of the above
provisions related to abortions and involuntary sterilizations: Provided, That none of the funds made available under this Act may
be used to lobby for or against abortion.
øAUTHORIZATION

FOR

POPULATION PLANNING¿

øSEC. 518A. (a) None of the funds made available in title II of
this Act for population planning activities or other population assistance pursuant to section 104(b) of the Foreign Assistance Act or
any other provision of law may be obligated or expended prior to
July 1, 1997.¿
ø(b) Not to exceed $385,000,000 of the funds appropriated in title
II of this Act may be made available for population planning activities
or other population assistance.¿
ø(c) Such funds may be apportioned only on a monthly basis, and
such monthly apportionments may not exceed 8 percent of the total
available for such activities.¿
ø(d) Not later than February 1, 1997, the President shall submit
a finding to the Congress regarding the impact of the limitation
on obligations imposed by subsection (a) of this section on the proper
functioning of the population planning program. If such Presidential
finding indicates that the limitation is having a negative impact
on the proper functioning of the population planning program, funds
for population planning activities and other population assistance
referred to in subsection (a) may be made available beginning March
1, 1997, notwithstanding the July 1, 1997, limitation set forth in
subsection (a), if the Congress approves such finding by adoption
of a joint resolution of approval not later than February 28, 1997,
in accordance with subsection (e).¿
ø(e) CONGRESSIONAL REVIEW PROCEDURE.—
(1) This subsection is enacted by Congress—
(A) as an exercise of the rulemaking power of the House of
Representatives and the Senate, respectively, and as such it is
deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that
House in the case of resolutions described by paragraph (2) of
this subsection; and it supersedes other rules only to the extent
that it is inconsistent therewith; and
(B) with full recognition of the constitutional right of either
House to change the rules (so far as those rules relate to the
procedure of that House) at any time, in the same manner, and
to the same extent as in the case of any other rule of such
House.
(2) For purposes of this section, the term ‘‘resolution’’ means
a joint resolution, the text of which is as follows: ‘‘That the House
of Representatives and Senate approve the Presidential finding,
submitted to the Congress on XXXXX, that the limitation on obligations imposed by section 518A(a) of the Foreign Operations, Export
Financing, and Related Programs Appropriations Act, 1997, is having a negative impact on the proper functioning of the population
planning program.’’. The blank space therein shall be filled with
the date on which the President submits his finding to the House
of Representatives and the Senate.
(3) On the day on which the President submits a finding under
this section to the Congress, a joint resolution described in paragraph (2) shall be introduced (by request) in the House by the
majority leader of the House, for himself and the minority leader
of the House, or by Members of the House designated by the majority leader and minority leader of the House; and shall be introduced
(by request) in the Senate by the majority leader of the Senate,
for himself and the minority leader of the Senate, or by Members
of the Senate designated by the majority leader and minority leader
of the Senate. If either House is not in session on the day on
which the President submits such finding, the resolution shall be
introduced in that House, as provided in the preceding sentence,
on the first day thereafter on which that House is in session.
A resolution once introduced in the House with respect to a Presidential finding under this section shall be referred to 1 or more
committees (and all resolutions with respect to the same Presidential finding shall be referred to the same committee or committees) by the Speaker of the House of Representatives. A resolution
once introduced in the Senate with respect to a Presidential finding
under this section shall be referred to the appropriate committee
(and all resolutions with respect to the same Presidential finding
shall be referred to the same committee) by the President of the
Senate.

116

TITLE V—GENERAL PROVISIONS—Continued

øAUTHORIZATION

FOR

THE BUDGET FOR FISCAL YEAR 1998

POPULATION PLANNING¿—Continued

(4) No amendment to a resolution introduced under this section
shall be in order in either the House of Representatives or the
Senate; and no motion to suspend the application of this subsection
shall be in order in either House, nor shall it be in order in
either House for the presiding officer to entertain a request to
suspend the application of this subsection by unanimous consent.
(5)(A) If any committee to which a resolution with respect to
a Presidential finding under this section has been referred has
not reported it at the end of 5 calendar days after its introduction,
such committee shall be automatically discharged from further consideration of the resolution and it shall be placed on the appropriate calendar. A vote on final passage of the resolution, shall
be taken in each House on or before February 28, 1997. If prior
to the passage by 1 House of a resolution of that House under
this section, that House receives the same resolution from the other
House, then—
(i) the procedure in that House shall be the same as if no
resolution had been received from the other House, but
(ii) the vote on final passage shall be on the resolution of
the other House.
(6)(A) A motion in the House of Representatives to proceed to
the consideration of a resolution under this section shall be highly
privileged and not debatable. An amendment to the motion shall
not be in order, nor shall it be in order to move to reconsider
the vote by which the motion is agreed to or disagreed to.
(B) Debate in the House of Representatives on the resolution
described in paragraph (2) of this subsection shall be limited to
not more than 2 hours, which shall be divided equally between
those favoring and those opposing such resolution. A motion to
further limit debate shall not be debatable. It shall not be in
order to move to recommit a resolution or to move to reconsider
the vote by which such resolution was agreed to or disagreed to.
(C) Appeals from the decision of the Chair relating to the application of the rules of the House of Representatives to the procedures
relating to a resolution under this section shall be decided without
debate.
(D) Except to the extent specifically provided in preceding provisions of this subsection, consideration in the House of Representatives of a resolution under this subsection shall be governed by
the rules of the House of Representatives applicable to other resolutions in similar circumstances.
(7)(A) A motion in the Senate to proceed to the consideration
of a resolution under this section shall not debatable. It shall not
be in order to move to reconsider the vote by which the motion
is agreed to or disagreed to.
(B) Debate in the Senate on the resolution described in paragraph
(2) of this subsection, and all debatable motions and appeals in
connection therewith, shall be limited to not more than 2 hours.
The time shall be equally divided between, and controlled by, the
mover and the manager of the resolution, except that in the event
the manager of the resolution is in favor of any such motion or
appeal, the time in opposition thereto shall be controlled by the
minority leader or his designee. Such leaders, or either of them,
may, from time under their control on the passage of a resolution,
allot additional time to any Senator during the consideration of
any debatable motion or appeal.
(C) A motion in the Senate to further limit debate is not debatable. A motion to recommit a resolution is not in order.¿
øREPORTING REQUIREMENT¿
øSEC. 519. The President shall submit to the Committees on Appropriations the reports required by section 25(a)(1) of the Arms Export
Control Act.¿
øSPECIAL NOTIFICATION REQUIREMENTS¿
øSEC. 520. None of the funds appropriated in this Act shall be
obligated or expended for Colombia, Guatemala (except that this provision shall not apply to development assistance for Guatemala), Dominican Republic, Haiti, Liberia, Pakistan, Peru, Serbia, Sudan, or
Zaire except as provided through the regular notification procedures
of the Committee on Appropriations.¿
DEFINITION

PROGRAM, PROJECT,

AND

ACTIVITY

SEC. ø521¿ 516. For the purpose of this Act, ‘‘program, project,
and activity’’ shall be defined at the Appropriations Act account level
and shall include all Appropriations and Authorizations Acts earmarks, ceilings, and limitations with the exception that for the follow-

ing accounts: Economics Support Fund and Foreign Military Financing Program, ‘‘program, project, and activity’’ shall also be considered
to include country, regional, and central program level funding within
each such account; for the development assistance accounts of the
Agency for International Development ‘‘program, project, and activity’’
shall also be considered to include central program level funding,
either as (1) justified to the Congress, or (2) allocated by the executive
branch in accordance with a report, to be provided to the Committees
on Appropriations within thirty days of enactment of this Act, as
required by section 653(a) of the Foreign Assistance Act of 1961.
CHILD SURVIVAL

AND

AIDS ACTIVITIES

SEC. ø522¿ 517. Up to $8,000,000 of the funds made available
by this Act for assistance for family planning, health, child survival,
and AIDS, may be used to reimburse United States Government
agencies, agencies of State governments, institutions of higher learning, and private and voluntary organizations for the full cost of individuals (including for the personal services of such individuals) detailed or assigned to, or contracted by, as the case may be, the
Agency for International Development for the purpose of carrying
out family planning activities, child survival activities and activities
relating to research on, and the treatment and control of acquired
immune deficiency syndrome in developing countries: Provided, That
funds appropriated by this Act that are made available for child
survival activities or activities relating to research on, and the treatment and control of, acquired immune deficiency syndrome may be
made available notwithstanding any provision of law that restricts
assistance to foreign countries: Provided further, That funds appropriated by this Act that are made available for family planning activities may be made available notwithstanding section 512 of this Act
and section 620(q) of the Foreign Assistance Act of 1961.
PROHIBITION AGAINST INDIRECT FUNDING

CERTAIN COUNTRIES

SEC. ø523¿ 518. None of the funds appropriated or otherwise made
available pursuant to this Act shall be obligated to finance indirectly
any assistance or reparations to Cuba, Iraq, Libya, Iran, Syria, North
Korea, or the People’s Republic of China, unless the President of
the United States certifies that the withholding of these funds is
contrary to the national interest of the Untied States.
RECIPROCAL LEASING
SEC. ø524¿ 519. Section 61(a) of the Arms Export Control Act
is amended by striking out ø‘‘1996’’¿ ‘‘1997’’ and inserting in lieu
thereof ø‘‘1997’’¿ ‘‘1998’’.
øNOTIFICATION

EXCESS DEFENSE EQUIPMENT¿

øSEC. 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.¿
øAUTHORIZATION REQUIREMENT¿
øSEC. 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.¿
PROHIBITION

BILATERAL ASSISTANCE

TERRORIST COUNTRIES

SEC. ø527¿ 520. (a) øNotwithstanding any other provision of law,
funds¿ 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. 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

FUNDS APPROPRIATED TO THE PRESIDENT
with the regular notification procedures of the Committees on Appropriations.
COMMERCIAL LEASING

DEFENSE ARTICLES

SEC. ø528¿ 521. Notwithstanding any other provision of law, and
subject to the regular notification procedures 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.
øCOMPETITIVE INSURANCE¿
øSEC. 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.¿
øSTINGERS

IN THE

PERSIAN GULF REGION¿

øSEC. 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. ø530¿ 522. 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 shall be used for the purpose for which the assistance
was provided to that organization.
øSEPARATE ACCOUNTS¿
øSEC. 531. (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) 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.
(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 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).

TITLE V—GENERAL PROVISIONS—Continued

117

(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.
(6) REPORTING REQUIREMENT.—The Administrator of the 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.¿
ø(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. 981159).
(3) NOTIFICATION.—At lest 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.¿
COMPENSATION FOR UNITED STATES EXECUTIVE DIRECTORS
INTERNATIONAL øFINANCING¿ FINANCIAL INSTITUTIONS

SEC. ø532¿ 523. (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, the Bank for Economic Cooperation and Development in the Middle East, and North Africa
and the European Bank for Reconstruction and Development.
COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST IRAQ
SEC. ø533¿ 524. (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

118

TITLE V—GENERAL PROVISIONS—Continued

THE BUDGET FOR FISCAL YEAR 1998

COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST IRAQ—
Continued
assistance to any country that is not in compliance with the United
Nations Security Council sanctions against Iraqø, 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 national 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 the United Nations and the United States imposed with
respect to Iraqø, Serbia, or Montenegro¿, as the case may be, and
is consistent with the national interest, the President may prohibit,
for such a period of time as he considers appropriate, the importation
into the United States of any or all products of any foreign country
that has not prohibited—
(1) the importation of products of Iraqø, Serbia, or Montenegro¿
into its customs territory, and
(2) the export of its products to Iraqø, Serbia, or Montenegro,
as the case may be¿.
COMPETITIVE PRICING

FOR

SALES

DEFENSE ARTICLES

SEC. ø533A¿ 525. Direct costs associated with meeting a foreign
customer’s additional or unique requirements will continue to be allowable under contracts under section 22(d) of the Arms Export Control Act. 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.
øPOW/MIA MILITARY DRAWDOWN¿
øSEC. 534. (a) Notwithstanding any other provision of law, the
President may direct the drawdown, without reimbursement by the
recipient, of defense articles from the stocks of the Department of
Defense, defense services of the Department of Defense, and military
education and training, of an aggregate value not to exceed
$15,000,000 in fiscal year 1997, as may be necessary to carry out
subsection (b).¿
ø(b) Such defense articles, services and training may be provided
to Vietnam, Cambodia and Laos, under subsection (a) as the President determines are necessary to support efforts to locate and repatriate members of the United States Armed Forces and civilians employed directly or indirectly by the United States Government who
remain unaccounted for from the Vietnam War, and to ensure the
safety of United States Government personnel engaged in such cooperative efforts and to support United States Department of Defensesponsored humanitarian projects associated with the POW/MIA efforts. Any aircraft shall be provided under this section only to Laos
and only on a lease or loan basis, but may be provided at no cost
notwithstanding section 61 of the Arms Export Control Act and may
be maintained with defense articles, services and training provided
under this section.¿
ø(c) The President shall, within sixty days of the end of any fiscal
year in which the authority of subsection (a) is exercised, submit
a report to the Congress which identifies the articles, services, and
training drawn down under this section.¿
øMEDITERRANEAN EXCESS DEFENSE ARTICLES¿
øSEC. 535. For the four-year period beginning on October 1, 1996,
the President shall ensure that excess defense articles will be made
available under section 516 and 519 of the Foreign Assistance Act
of 1961 consistent with the manner in which the President made
available excess defense articles under those sections during the fouryear period that began on October 1, 1992, pursuant to section 573(e)
of the Foreign Operations, Export Financing, Related Programs Appropriations Act, 1990.¿
øCASH FLOW FINANCING¿
øSEC. 536. For each country that has been approved for cash flow
financing (as defined in section 25(d) of the Arms Export Control
Act, as added by section 112(b) of Public Law 99–83) under the
Foreign Military Financing Program, any Letter of Offer and Acceptance or other purchase agreement, or any amendment thereto, for
a procurement in excess of $100,000,000 that is to be financed in
whole or in part with funds made available under this Act shall

be submitted through the regular notification procedures to the Committees on Appropriations.¿
AUTHORITIES FOR
FOUNDATION AND

THE
THE

PEACE CORPS, THE INTER-AMERICAN
AFRICAN DEVELOPMENT FOUNDATION

SEC. ø537¿ 526. 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 Corp
Act, the Inter-American Foundation Act, or the African Development
Foundation Act. The appropriate 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

JOBS

IN THE

UNITED STATES

SEC. ø538¿ 527. 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;
(b) assistance for the purpose of establishing or developing in
a foreign country any export processing zone or designated area
in which the tax, tariff, labor, environment, and safety laws of
that country do not apply, in part or in whole, to activities carried
out within that zone or area, unless the President determines and
certifies that such assistance is not likely to cause a loss of jobs
within the United States; or
(c) assistance for any project or activity that contributes to the
violation of internationally recognized workers rights, as defined
in section 502(a)(4) of the Trade Act of 1974, of workers in the
recipient country, including any designated zone or area in that
country: Provided, That in recognition that the application of this
subsection should be commensurate with the level of development
of the recipient country and sector, the provisions of this subsection
shall not preclude assistance for the informal sector in such country, micro and small-scale enterprise, and smallholder agriculture.
øAUTHORITY

ASSIST BOSNIA

AND

HERZEGOVINA¿

øSEC. 539. (a) The President is authorized to direct the transfer,
subject to prior notification of the Committees on Appropriations,
to the Government of Bosnia and Herzegovina, without reimbursement of defense articles from the stocks of the Department of Defense
and defense services of the Department of Defense of an aggregate
value of not to exceed $100,000,000 in fiscal years 1996 and 1997:
Provided, That the President certifies in a timely fashion to the
Congress that the transfer of such articles would assist that nation
in self-defense and thereby promote the security and stability of the
region.¿
ø(b) Within 60 days of any transfer under the authority provided
in subsection (a), and every 60 days thereafter, the President shall
report in writing to the Speaker of the House of Representatives
and the President pro tempore of the Senate concerning the articles
transferred and the disposition thereof.¿
ø(c) There are authorized to be appropriated to the President such
sums as may be necessary to reimburse the applicable appropriation,
fund, or account for defense articles provided under this section.¿
øRESTRICTIONS

ON THE TERMINATION OF SANCTIONS
SERBIA AND MONTENEGRO¿

AGAINST

øSEC. 540. (a) RESTRICTIONS.—Notwithstanding any other provision
of law, no sanction, prohibition, or requirement described in section
1511 of the National Defense Authorization Act for Fiscal Year 1994
(Public Law 103–160), with respect to Serbia or Montenegro, may
cease to be effective, unless—
(1) the President first submits to the Congress a certification
described in subsection (b); and
(2) the requirements of section 1511 of that Act are met.¿
ø(b) CERTIFICATION.—A certification described in this subsection
is a certification that—
(1) there is substantial progress toward—
(A) the realization of a separate identity for Kosova and
the right of the people of Kosova to govern themselves; or
(B) the creation of an international protectorate for Kosova;

TITLE V—GENERAL PROVISIONS—Continued

FUNDS APPROPRIATED TO THE PRESIDENT
(2) there is substantial improvement in the human rights situation in Kosova;
(3) international human rights observers are allowed to return
to Kosova; and
(4) the elected government of Kosova is permitted to meet
and carry out its legitimate mandate as elected representatives
of the people of Kosova.¿
ø(c) WAIVER AUTHORITY.—The President may waive the application in whole or in part, of subsection (a) if the President certifies
to the Congress that the President has determined that the waiver
is necessary to meet emergency humanitarian needs or to achieve
a negotiated settlement of the conflict in Bosnia and Herzegovina
that is acceptable to the parties.¿
EXTENSION

AUTHORITY TO OBLIGATE FUNDS TO CLOSE
SPECIAL DEFENSE ACQUISITION FUND

THE

SEC. 528. Title III of P.L. 103–306 is amended under the heading
‘‘Special Defense Acquisition Fund’’ by striking ‘‘1998’’ and inserting
‘‘2000’’.
SPECIAL AUTHORITIES
SEC. ø541¿ 529. (a) Funds appropriated in title II of this Act that
are made available for Afghanistan, Lebanon, and Cambodia, and
for victims of war, displaced children, displaced Burmese, humanitarian assistance for Romania, and humanitarian assistance for the
peoples of Bosnia and Herzegovina, Croatia, and Kosova, may be
made available notwithstanding any other provision of law: Provided,
That any such funds that are made available for Cambodia shall
be subject to the provisions of section 531(c) of the Foreign Assistance
Act of 1961 and section 906 of the International Security and Development Cooperation Act of 1985ø: Provided further, That none of
the funds appropriated by this Act may be made available for assistance for any country or organization that the Secretary of State
determines is cooperating, tactically or strategically, with the Khmer
Rouge in their military operations, or to the military of any country
that is not acting vigorously to prevent its members from facilitating
the export of timber from Cambodia by the Khmer Rouge: Provided
further, That the Secretary of State shall submit a report to the
Committees on Appropriations by February 1, 1997, on whether there
are any countries, organizations, or militaries for which assistance
is prohibited under the previous proviso, the basis for such conclusions and, if appropriate, the steps being taken to terminate assistance: Provided further, That the prohibition on assistance to the
military of any country that is not acting vigorously to prevent its
members from facilitating the export of timber from Cambodia by
the Khmer Rouge may be waived by the President if he determines
and reports to the Committees on Appropriations that is is important
to the national security interest of the United States to do so.
(b) Funds appropriated by this Act to carry out the provisions
of sections 103 through 106 of the Foreign Assistance Act of 1961
may be used, notwithstanding any other provision of law, for the
purpose of supporting tropical forestry and energy programs aimed
at reducing emissions of greenhouse gases, and for the purpose of
supporting biodiversity conservation activities: Provided, that such
assistance shall be subject to sections 116, 502B, and 620A of the
Foreign Assistance Act of 1961.
(c) During fiscal year ø1997¿ 1998, the President may use up to
ø$40,000,000¿ $50,000,000 under the authority of section 451 of the
Foreign Assistance Act of 1961, notwithstanding the funding ceiling
contained in subsection (a) of that section.
(d) The Agency for International Development may employ personal
services contractors, notwithstanding any other provision of law, for
the purpose of administering programs for the West Bank and Gaza.
øPOLICY

TERMINATING

THE

ARAB LEAGUE BOYCOTT

ISRAEL¿

øSEC. 542. It is the sense of the Congress that—
(1) the Arab League countries should immediately and publicly
renounce the primary boycott of Israel and the secondary and tertiary boycott of American firms that have commercial ties with
Israel; and
(2) the President should—
(A) take more concrete steps to encourage vigorously Arab
League countries to renounce publicly the primary boycotts of
Israel and the secondary and tertiary boycotts of American firms
that have commercial relations with Israel as a confidence-building measure;
(B) take into consideration the participation of any recipient
country in the primary boycott of Israel and the secondary and
tertiary boycotts of American firms that have commercial rela-

119

tions with Israel when determining whether to sell weapons to
said county;
(C) report to Congress on the specific steps being taken by
the President to bring about a public renunciation of the Arab
primary boycott of Israel and the secondary and tertiary boycotts
of American firms that have commercial relations with Israel;
and
(D) encourage the allies and trading partners of the United
States to enact laws prohibiting businesses from complying with
the boycott and penalizing businesses that do comply.¿
ANTI-NARCOTICS ACTIVITIES
SEC. ø543¿ 530. (a) Of the funds appropriated or otherwise made
available by this Act for ‘‘Economic Support Fund’’, assistance may
be provided to strengthen the administration of justice in countries
in Latin America and the Caribbean and in other regions consistent
with the provisions of section 534(b) of the Foreign Assistance Act
of 1961, except that programs to enhance protection of participants
in judicial cases may be conducted notwithstanding section 660 of
that Act.
(b) Funds made available pursuant to this section may be made
available notwithstanding section 534(c) and the second and third
sentences of section 534(e) of the Foreign Assistance Act of 1961.
Funds made available pursuant to subsection (a) for Bolivia, Colombia
and Peru may be made available notwithstanding section 534(c) and
the second sentence of section 534(e) of the Foreign Assistance Act
of 1961.
ELIGIBILITY

FOR

ASSISTANCE

SEC. ø544¿ 531. (a) ASSISTANCE THROUGH NONGOVERNMENTAL ORGANIZATIONS.—Restrictions contained in this or any other Act with
respect to assistance for a country shall not be construed to restrict
assistance in support of programs of nongovernmental organizations
from funds appropriated by this Act to carry out the provisions of
chapters 1 øand¿, 10 and 11 of part I, and chapter 4 of part II
of the Foreign Assistance Act of 1961: Provided, That the President
shall take into consideration, in any case in which a restriction on
assistance would be applicable but for this subsection, whether assistance in support of programs of nongovernmental organizations is
in the national interest of the United States: Provided further, That
before using the authority of this subsection to furnish assistance
in support of programs of nongovernmental organizations, the President shall notify the Committees on Appropriations under the regular
notification procedures of those committees, including a description
of the program to be assisted, the assistance to be provided, and
the reasons for furnishing such assistance: Provided further, That
nothing in this subsection shall be construed to alter any existing
statutory prohibitions against abortion or involuntary sterilizations
contained in this or any other Act.
(b) PUBLIC LAW 480.—During fiscal year ø1997¿ 1998, restrictions
contained in this or any other Act with respect to assistance for
a country shall not be construed to restrict assistance under the
Agricultural Trade Development and Assistance Act of 1954: Provided, That none of the funds appropriated to carry out title I of
such Act and made available pursuant to this subsection may be
obligated or expended except as provided through the regular notification procedures of the Committees on Appropriations.
(c) EXCEPTION.—This section shall not apply—
(1) with respect to section 620A of the Foreign Assistance Act
or any comparable provision of law prohibiting assistance to countries that support international terrorism; or
(2) with respect to section 116 of the Foreign Assistance Act
of 1961 or any comparable provision of law prohibiting assistance
to countries that violate internationally recognized human rights.
EARMARKS
SEC. ø544A¿ 532. (a) Funds appropriated by this Act which are
earmarked may be reprogrammed for other programs within the same
account notwithstanding the earmark if compliance with the earmark
is made impossible by operation of any provision of this or any other
Act or, with respect to a country with which the United States has
an agreement providing the United States with base rights or base
access in that country, if the President determines that the recipient
for which funds are earmarked has significantly reduced its military
or economic cooperation with the United States since enactment of
the Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 1991; however, before exercising the authority
of this subsection with regard to a base rights or base access country
which has significantly reduced its military or economic cooperation

120

TITLE V—GENERAL PROVISIONS—Continued

THE BUDGET FOR FISCAL YEAR 1998

EARMARKS—Continued
with the United States, the President shall consult with, and shall
provide a written policy justification to the Committees on Appropriations: Provided, That any such reprogramming shall be subject to
the regular notification procedures of the Committees on Appropriations: Provided further, That assistance that is reprogrammed pursuant to this subsection shall be made available under the same terms
and conditions as originally provided.
(b) In addition to the authority contained in subsection (a), the
original period of availability of funds appropriated by this Act and
administered by the Agency for International Development that are
earmarked for particular programs or activities by this or any other
Act shall be extended for an additional fiscal year if the Administrator of such agency determines and reports promptly to the Committees on Appropriations that the termination of assistance to a
country or a significant change in circumstances makes it unlikely
that such earmarked funds can be obligated during the original period of availability: Provided, That such earmarked funds that are
continued available for an additional fiscal year shall be obligated
only for the purpose of such earmark.
CEILINGS

AND

EARMARKS

SEC. ø545¿ 533. Ceilings and earmarks contained in this Act shall
not be applicable to funds or authorities appropriated or otherwise
made available by any subsequent Act unless such Act specifically
so directs.
PROHIBITION

PUBLICITY

PROPAGANDA

SEC. ø546¿ 534. No part of any appropriation contained in this
Act shall be used for publicity or propaganda purposes within the
United States not authorized before the date of enactment of this
Act by the Congressø: Provided, That not to exceed $750,000 may
be made available to carry out the provisions of section 316 of Public
Law 96–533¿.
USE

AMERICAN RESOURCES

SEC. ø547¿ 535. To the maximum extent possible, assistance provided under this Act should make full use of American resources,
including commodities, products, and services.
øPROHIBITION

PAYMENTS

UNITED NATIONS MEMBERS¿

øSEC. 548. None of the funds appropriated or made available pursuant to this Act for carrying out the Foreign Assistance Act of 1961,
may be used to pay in whole or in part any assessments, arrearages,
or dues of any member of the United Nations.¿
øCONSULTING SERVICES¿
øSEC. 549. The expenditure of any appropriation under this Act
for any consulting service through procurement contract, pursuant
to section 3109 of title 5, United States Code, shall be limited to
those contracts where such expenditures are a matter of public record
and available for public inspection, except where otherwise provided
under existing law, or under existing Executive order pursuant to
existing law.¿
øPRIVATE VOLUNTARY ORGANIZATIONS—DOCUMENTATION¿
øSEC. 550. None of the funds appropriated or made available pursuant to this Act shall be available to a private voluntary organization
which fails to provide upon timely request any document, file, or
record necessary to the auditing requirements of the Agency for International Development.¿
øPROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS THAT EXPORT LETHAL MILITARY EQUIPMENT TO COUNTRIES SUPPORTING
INTERNATIONAL TERRORISM¿
øSEC. 551. (a) None of the funds appropriated or otherwise made
available by this Act may be available to any foreign government
which provides lethal military equipment to a country the government of which the Secretary of State has determined is a terrorist
government for purposes of section 40(d) of the Arms Export Control
Act. The prohibition under this section with respect to a foreign
government shall terminate 12 months after that government ceases
to provide such military equipment. This section applies with respect
to lethal military equipment provided under a contract entered into
after the date of enactment of this Act.¿
ø(b) Assistance restricted by subsection (a) or any other similar
provision of law, may be furnished if the President determines that
furnishing such assistance is important to the national interests of
the United States.¿

ø(c) Whenever the waiver of subsection (b) is exercised, the President shall submit to the appropriate congressional committees a report with respect to the furnishing of such assistance. Any such
report shall include a detailed explanation of the assistance to be
provided, including the estimated dollar amount of such assistance,
and an explanation of how the assistance furthers United States
national interests.¿
øWITHHOLDING

ASSISTANCE FOR PARKING FINES OWED
FOREIGN COUNTRIES¿

øSEC. 552. (a) IN GENERAL.—Of the funds made available for a
foreign country under part I of the Foreign Assistance Act of 1961,
an amount equivalent to 110 percent of the total unpaid fully adjudicated parking fines and penalties owed to the District of Columbia
by such country as of the date of enactment of this Act shall be
withheld from obligation for such country until the Secretary of State
certifies and reports in writing to the appropriate congressional committees that such fines and penalties are fully paid to the government
of the District of Columbia.¿
ø(b) DEFINITION.—For purposes of this section, the term ‘‘appropriate congressional committees’’ means the Committee on Foreign
Relations and the Committee on Appropriations of the Senate and
the Committee on International Relations and the Committee on Appropriations of the House of Representatives.¿
LIMITATION

ASSISTANCE

FOR THE
AND GAZA

PLO

FOR THE

WEST BANK

SEC. ø553¿ 536. None of the funds appropriated by this Act may
be obligated for assistance for the Palestine Liberation Organization
for the West Bank and Gaza unless the President has exercised
the authority under section 604(a) of the Middle East Peace Facilitation Act of 1995 (title VI of Public Law 104–107) or any other legislation to suspend or make inapplicable section 307 of the Foreign
Assistance Act of 1961 and that suspension is still in effect: Provided,
That if the President fails to make the certification under section
604(b)(2) of the Middle East Peace Facilitation Act of 1995 or to
suspend the prohibition under other legislation, funds appropriated
by this Act may not be obligated for assistance for the Palestine
Liberation Organization for the West Bank and Gaza.
EXPORT FINANCING TRANSFER AUTHORITIES
SEC. ø554¿ 537. Not to exceed 5 percent of any appropriation other
than for administrative expenses made available for fiscal year
ø1997¿ 1998 for programs under title I of this Act may be transferred
between such appropriations for use for any of the purposes, programs and activities for which the funds in such receiving account
may be used, but no such appropriation, except as otherwise specifically provided, shall be increased by more than 25 percent by any
such transfer: Provided, That the exercise of such authority shall
be subject to the regular notification procedures of the Committees
on Appropriations.
WAR CRIMES TRIBUNALS
SEC. ø555¿ 538. If the President determines that doing so will
contribute to a just resolution of charges regarding genocide or other
violations of international humanitarian law, the President may direct a drawdown pursuant to section 552(c) of the Foreign Assistance
Act of 1961, as amended, of up to $25,000,000 of commodities and
services for the United Nations War Crimes Tribunal established
with regard to the former Yugoslavia by the United Nations Security
Council or such other tribunals or commissions as the Council may
establish to deal with such violations, without regard to the ceiling
limitation contained in paragraph (2) thereof: Provided, That the
determination required under this section shall be in lieu of any
determinations otherwise required under section 552(c): Provided further, That 60 days after the date of enactment of this Act, and
every 180 days thereafter, the Secretary of State shall submit a
report to the Committees on Appropriations describing the steps the
United States Government is taking to collect information regarding
allegations of genocide or other violations of international law in
the former Yugoslavia and to furnish that information to the United
Nations War Crimes Tribunal for the former Yugoslavia.
LANDMINES
SEC. ø556¿ 539. Notwithstanding any other provision of law,
demining equipment available to the Agency for International Development and the Department of State and used in support of the
clearing of landmines and unexploded ordnance for humanitarian
purposes may be disposed of on a grant basis in foreign countries,

TITLE V—GENERAL PROVISIONS—Continued

FUNDS APPROPRIATED TO THE PRESIDENT
subject to such terms and conditions as the President may prescribeø:
Provided, That section 1365(c) of the National Defense Authorization
Act for Fiscal Year 1993 (Public Law 102–484; 22 U.S.C., 2778 note)
is amended by striking out ‘‘During the five-year period beginning
on October 23, 1992’’ and inserting in lieu thereof ‘‘During the eightyear period beginning on October 23, 1992’’¿.
øRESTRICTIONS CONCERNING

THE

PALESTINIAN AUTHORITY¿

øSEC. 557. None of the funds appropriated by this Act may be
obligated or expended to create in any part of Jerusalem a new
office of any department or agency of the United States Government
for the purpose of conducting official United States Government business with the Palestinian Authority over Gaza and Jericho or any
successor Palestinian governing entity provided for in the Israel-PLO
Declaration of Principles: Provided, That this restriction shall not
apply to the acquisition of additional space for the existing Consulate
General in Jerusalem: Provided further, That meetings between officers and employees of the United States and officials of the Palestinian Authority, or any successor Palestinian governing entity provided
for in the Israel-PLO Declaration of Principles, for the purpose of
conducting official United States Government business with such authority should continue to take place in locations other than Jerusalem. As has been true in the past, officers and employees of the
United States Government may continue to meet in Jerusalem on
other subjects with Palestinians (including those who now occupy
positions in the Palestinian Authority), have social contacts, and have
incidental discussions.¿
PROHIBITION

PAYMENT

CERTAIN EXPENSES

SEC. ø558¿ 540. None of the funds appropriated or otherwise made
available by this Act under the heading ‘‘international military education and training’’ or ‘‘foreign military financing program’’ for Informational Program activities may be obligated or expended to pay
for—
(1) alcoholic beverages;
(2) food (other than food provided at a military installation) not
provided in conjunction with Informational Program trips where
students do not stay at a military installation; or
(3) entertainment expenses for activities that are substantially
of a recreational character, including entrance fees at sporting
events and amusement parks.
øHUMANITARIAN CORRIDORS¿
øSEC. 559. The Foreign Assistance Act of 1961 is amended by
adding immediately after section 620H the following new section:
‘‘SEC. 620I. PROHIBITION ON ASSISTANCE TO COUNTRIES THAT RESTRICT UNITED STATES HUMANITARIAN ASSISTANCE.—
‘‘(a) IN GENERAL.—No assistance shall be furnished under this
Act or the Arms Export Control Act to any country when it is
made known to the President that the government of such country
prohibits or otherwise restricts, directly or indirectly, the transport
or delivery of United States humanitarian assistance.
‘‘(b) EXCEPTION.—Assistance may be furnished without regard
to the restriction in subsection (a) if the President determines that
to do so is in the national security interest of the United States.
‘‘(c) NOTICE.—Prior to making any determination under subsection (b), the President shall notify the Committee on International Relations, the Committee on Foreign Relations, and the
Committees on Appropriations of the Senate and House of Representatives of his intention to make such a determination, the
effective date of the determination, and the reasons for making
the determination.’’.¿
øEQUITABLE ALLOCATION

FUNDS¿

øSEC. 560. Not more than 20 percent of the 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,
that are made available for Latin America and the Caribbean region
may be made available, through bilateral and Latin America and
the Caribbean regional programs, to provide assistance for any country in such region.¿
øPURCHASE

AMERICAN-MADE EQUIPMENT

AND

PRODUCTS¿

øSEC. 561. (a) SENSE OF CONGRESS.—It is the sense of the Congress
that, to the greatest extent practicable, all equipment and products
purchased with funds made available in this Act should be Americanmade.¿
ø(b) NOTICE REQUIREMENT.—In providing financial assistance to,
or entering into any contract with, any entity using funds made

121

available in this Act, the head of each Federal agency, to the greatest
extent practicable, shall provide to such entity a notice describing
the statement made in subsection (a) by the Congress.¿
øLIMITATION

FUNDS

NORTH AMERICAN DEVELOPMENT
BANK¿

FOR

øSEC. 562. None of the Funds appropriated in this Act under the
heading ‘‘North American Development Bank’’ and made available
for the Community Adjustment and Investment Program shall be
used for purposes other than those set out in the binational agreement establishing the Bank.¿
øINTERNATIONAL DEVELOPMENT ASSOCIATION¿
øSEC. 563. In order to pay for the United States contribution to
the tenth replenishment of the resources of the International Development Association authorized in section 526 of Public Law 103–87,
there is authorized to be appropriated, without fiscal year limitation,
$700,000,000 for payment by the Secretary of the Treasury.¿
SPECIAL DEBT RELIEF

FOR THE

POOREST

SEC. ø564¿ 541. (a) AUTHORITY TO REDUCE DEBT.—The President
may reduce amounts owed to the United States (or any agency of
the United States) by an eligible country as a result of—
(1) guarantees issued under sections 221 and 222 of the Foreign
Assistance Act of 1961; or
(2) credits extended or guarantees issued under the Arms Export
Control Act.
(b) LIMITATIONS.—
(1) The authority provided by subsection (a) may be exercised
only to implement multilateral official debt relief and referendum
agreements, commonly referred to as ‘‘Paris Club Agreed Minutes’’.
(2) The authority provided by subsection (a) may be exercised
only in such amounts or to such extent as is provided in advance
by appropriations Acts.
(3) The authority provided by subsection (a) may be exercised
only with respect to countries with heavy debt burdens that are
eligible to borrow from the International Development Association,
but not from the International Bank for Reconstruction and Development, commonly referred to as ‘‘IDA-only’’ countries.
(c) CONDITIONS.—The authority provided by subsection (a) may be
exercised only with respect to a country whose government—
(1) does not have an excessive level of military expenditures;
(2) has not repeatedly provided support for acts of international
terrorism;
(3) is not failing to cooperate on international narcotics control
matters;
(4) (including its military or other security forces) does not engage
in a consistent pattern of gross violations of internationally recognized human rights; and
(5) is not ineligible for assistance because of the application of
section 527 of the Foreign Relations Authorization Act, fiscal years
1994 and 1995.
(d) 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’’.
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A reduction of debt pursuant to subsection (a) shall not be considered assistance for purposes
of any provision of law limiting assistance to a country. The authority
provided by subsection (a) may be exercised notwithstanding section
620(r) of the Foreign Assistance Act of 1961.
AUTHORITY

ENGAGE

DEBT BUYBACKS

SALES

SEC. ø565¿ 542. (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 ødefine¿ 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 debtfor-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,

122
AUTHORITY

TITLE V—GENERAL PROVISIONS—Continued

ENGAGE

DEBT BUYBACKS

THE BUDGET FOR FISCAL YEAR 1998
OR

SALES—Continued

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 an 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’’.
LIBERIA
SEC. ø566¿ 543. Funds appropriated by this Act may be made
available for assistance for Liberia notwithstanding section 620(q)
of the Foreign Assistance Act of 1961 and section 512 of this Act.
øGUATEMALA¿
øSEC. 567. (a) Funds provided in this Act may be made available
for the Guatemalan military forces, and the restrictions on Guatemala
under the headings ‘‘International Military Education and Training’’
and ‘‘Foreign Military Financing Program’’ shall not apply, only if
the President determines and certifies to the Congress that the Guatemalan military is cooperating fully with efforts to resolve human
rights abuses which elements of the Guatemalan military forces are
alleged to have committed, ordered or attempted to thwart the investigation of, and with efforts to negotiate a peace settlement.¿
ø(b) The prohibition contained in subsection (a) shall not apply
to funds made available to implement a ceasefire or peace agreement.¿
ø(c) Any funds made available pursuant to subsections (a) or (b)
shall be subject to the regular notification procedures of the Committees on Appropriations.¿
ø(d) Any funds made available pursuant to subsections (a) and
(b) for international military education and training may only be
for expanded international military education and training.¿
SANCTIONS AGAINST COUNTRIES HARBORING WAR CRIMINALS
SEC. ø568¿ 544. (a) BILATERAL ASSISTANCE.—The President is authorized to withhold funds appropriated by this Act under the Foreign
Assistance Act of 1961 or the Arms Export Control Act for any country described in subsection (c).
(b) MULTILATERAL ASSISTANCE.—The Secretary of the Treasury
should instruct the United States executive directors of the international financial institutions to work in opposition to, and vote

against, any extension by such institutions of financing or financial
or technical assistance to any country described in subsection (c).
(c) SANCTIONED COUNTRIES.—A country described in this subsection
is a country the government of which knowingly grants sanctuary
to persons in its territory for the purpose of evading prosecution,
where such persons—
(1) have been indicted by the International Criminal Tribunal
for the former Yugoslavia, the International Criminal Tribunal for
Rwanda, or any other international tribunal with similar standing
under international law, or
(2) have been indicted for war crimes or crimes against humanity
committed during the period beginning March 23, 1933 and ending
on May 8, 1945 under the direction of, or in association with—
(A) the Nazi government of Germany;
(B) any government in any area occupied by the military forces
of the Nazi government of Germany;
(C) any government which was established with the assistance
or cooperation of the Nazi government; or
(D) any government which was an ally of the Nazi government
of Germany.
AGENCY

FOR

INTERNATIONAL DEVELOPMENT ENHANCED CREDIT
AUTHORITY

SEC. 545. For the cost, as defined in section 502 of the Congressional
Budget Act of 1974, of direct loans and loan guarantees in support
of the development objectives of sections 103 through 106 of the Foreign Assistance Act of 1961 (FAA), up to $10,000,000 may be derived
by transfer from funds appropriated by this Act under the headings,
‘‘Sustainable Development Assistance’’ and ‘‘Development Fund for Africa,’’ to remain available until expended: Provided, That of this
amount, up to $1,500,000 for administrative expenses to carry out
such programs shall be transferred to and merged with the appropriation for Operating Expenses, Agency for International Development:
Provided further, That the authority contained in the last sentence
of section 108(c) of the FAA shall be applicable to funds made available under this heading: Provided further, That section 620(q) of
the FAA shall not be construed to prohibit assistance to a country
in the event that a private sector recipient of assistance furnished
under this heading is in default in its payment to the United States
for the period specified in such section.
øLIMITATION

ASSISTANCE

FOR

HAITI¿

øSEC. 569. (a) LIMITATION.—None of the funds appropriated or otherwise made available by this Act, may be provided to the Government of Haiti until the President reports to Congress that—
(1) the Government is conducting thorough investigations of
extrajudicial and political killings; and
(2) the Government is cooperating with United States authorities
in the investigations of political and extrajudicial killings.¿
ø(b) Nothing in this section shall be construed to restrict the provision of humanitarian, development, or electoral assistance.¿
ø(c) The President may waive the requirements of this section
on a semiannual basis if he determines and certifies to the appropriate committees of Congress that it is in the national interest
of the United States.¿
øPOLICY TOWARD BURMA¿
øSEC. 570. (a) Until such time as the President determines and
certifies to Congress that Burma has made measurable and substantial progress in improving human rights practices and implementing
democratic government, the following sanctions shall be imposed on
Burma:
(1) BILATERAL ASSISTANCE.—There shall be no United States assistance to the Government of Burma, other than:
(A) humanitarian assistance,
(B) subject to the regular notification procedures of the Committees on Appropriations, counter-narcotics assistance under
chapter 8 of part I of the Foreign Assistance Act of 1961, or
crop substitution assistance, if the Secretary of State certifies
to the appropriate congressional committees that—
(i) the Government of Burma is fully cooperating with United
States counter-narcotics efforts, and
(ii) the programs are fully consistent with United States
human rights concerns in Burma and serve the United States
national interest, and
(C) assistance promoting human rights and democratic values.
(2) MULTILATERAL ASSISTANCE.—The Secretary of the Treasury
shall instruct the United States executive director of each inter-

TITLE V—GENERAL PROVISIONS—Continued

FUNDS APPROPRIATED TO THE PRESIDENT
national financial institution to vote against any loan or other
utilization of funds of the respective bank to or for Burma.
(3) VISAS.—Except as required by treaty obligations or to staff
the Burmese mission to the United States, the United States should
not grant entry visas to any Burmese government official.¿
ø(b) CONDITIONAL SANCTIONS.—The President is hereby authorized
to prohibit, and shall prohibit United States persons from new investment in Burma, if the President determines and certifies to Congress
that, after the date of enactment of this Act, the Government of
Burma has physically harmed, rearrested for political acts, or exiled
Daw Aung San Suu Kyi or has committed large-scale repression
of or violence against the Democratic opposition.¿
ø(c) MULTILATERAL STRATEGY.—The President shall seek to develop,
in coordination with members of ASEAN and other countries having
major trading and investment interests in Burma, a comprehensive,
multilateral strategy to bring democracy to and improve human
rights practices and the quality of life in Burma, including the development of a dialogue between the State Law and Order Restoration
Council (SLORC) and democratic opposition groups within Burma.¿
ø(d) PRESIDENTIAL REPORTS.—Every six months following the enactment of this Act, the President shall report to the Chairmen of
the Committee on Foreign Relations, the Committee on International
Relations and the House and Senate Appropriations Committees on
the following:
(1) progress toward democratization in Burma;
(2) progress on improving the quality of life of the Burmese
people, including progress on market reforms, living standards,
labor standards, use of forced labor in the tourism industry, and
environmental quality; and
(3) progress made in developing the strategy referred to in subsection (c).¿
ø(e) WAIVER AUTHORITY.—The President shall have the authority
to waive, temporarily or permanently, any sanction referred to in
subsection (a) or subsection (b) if he determines and certifies to Congress that the application of such sanction would be contrary to
the national security interests of the United States.¿
ø(f) DEFINITIONS.—
(1) The term ‘‘international financial institutions’’ shall include
the International Bank for Reconstruction and Development, the
International Development Association, the International Finance
Corporation, the Multilateral Investment Guarantee Agency, the
Asian Development Bank, and the International Monetary Fund.
(2) The term ‘‘new investment’’ shall mean any of the following
activities if such an activity is undertaken pursuant to an agreement, or pursuant to the exercise of rights under such an agreement, that is entered into with the Government of Burma or a
nongovernmental entity in Burma, on or after the date of the certification under subsection (b):
(A) the entry into a contract that includes the economical development of resources located in Burma, or the entry into a contract providing for the general supervision and guarantee of another person’s performance of such a contract;
(B) the purchase of a share of ownership, including an equity
interest, in that development;
(C) the entry into a contract providing for the participation
in royalties, earnings, or profits in that development, without
regard to the form of the participation:
Provided, That the term ‘‘new investment’’ does not include the
entry into, performance of, or financing of a contract to sell or
purchase goods, services, or technology.¿
øREPORT REGARDING HONG KONG¿
øSEC. 571. In light of the deficiencies in reports submitted to the
Congress pursuant to section 301 of the United States-Hong Kong
Policy Act (22 U.S.C. 5731), the Congress directs that the additional
report required to be submitted during 1997 under such section include detailed information on the status of, and other developments
affecting, implementation of the Sino-British Joint Declaration on
the Question of Hong King, including—
(1) the Basic Law and its consistency with the Joint Declaration;
(2) Beijing’s plans to replace the elected legislature with an appointed body;
(3) the openness and fairness of the election of the chief executive
and the executive’s accountability to the legislature;
(4) the treatment of political parties;
(5) the independence of the Judiciary and its ability to exercise
the power of final judgment over Hong Kong law; and
(6) the Bill of Rights.¿

øUSE

FUNDS

FOR

PURCHASE OF PRODUCTS NOT MADE
AMERICA¿

123
IN

øSEC. 572. The Administrator of the Agency for International Development shall provide a report to the appropriate committees of
the Congress on the ability of the United States Government to
implement a provision of law (and on the foreign policy implications
of such a provision of law) which would require that United States
funds could be made available to the government of a foreign country
for the purchase of any equipment or products only if such purchases
were to occur in such foreign country or the United States, and
substantially similar equipment and products were made in the United States and available for purchase at a price that is not more
than 10 percent higher than that in other countries.¿
øCONFLICT

CHECHNYA¿

øSEC. 573. The Secretary of State shall provide to the Committees
on Appropriations no later than 30 days from the date of enactment
of this Act a detailed report on actions undertaken by the United
States Government to resolve the conflict in Chechnya.¿
øEXTENSION

CERTAIN ADJUDICATION PROVISIONS¿

øSEC. 575. The Foreign Operations, Export Financing, and Related
Programs Appropriations Act, 1990 (Public Law 101–167) is amended—
(1) in section 599D (8 U.S.C. 1157 note)—
(A) in subsection (b)(3), by striking ‘‘and 1996’’ and inserting
‘‘1996, and 1997’’; and
(B) in subsection (e), by striking out ‘‘October 1, 1996’’ each
place it appears and inserting ‘‘October 1, 1997’’; and
(2) in section 599E (8 U.S.C. 1255 note) in subsection (b)(2),
by striking out ‘‘September 30, 1996’’ and inserting ‘‘September
30, 1997’’.¿
øTRANSPARENCY

BUDGETS¿

øSEC. 576. (a) LIMITATION.—Beginning three years after the date
of the enactment of this Act, the Secretary of the Treasury shall
instruct the United States Executive Director of each international
financial institution to use the voice and vote of the United States
to oppose any loan or other utilization of the funds of their respective
institution, other than to address basic human needs, for the government of any country which the Secretary of the Treasury determines—
(1) does not have in place a functioning system for a civilian
audit of all receipts and expenditures that fund activities of the
armed forces and security forces;
(2) has not provided a summary of a current audit to the institution.¿
ø(b) DEFINITION.—For purposes of this section, the term ‘‘international financial institution’’ shall include the institutions identified
in section 532(b) of this Act.¿
øGUARANTEES¿
øSEC. 577. Section 251(b)(2)(G) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by striking ‘‘fiscal year
1994 and 1995’’ and inserting in lieu thereof ‘‘fiscal years 1994, 1995,
and 1997’’ in both places that this appears.¿
øINFORMATION ON COOPERATION WITH UNITED STATES ANTITERRORISM EFFORTS IN ANNUAL COUNTRY REPORTS ON TERRORISM¿
øSEC. 578. Section 140 of the Foreign Relations Authorization Act,
fiscal years 1988 and 1989 (22 U.S.C. 2656f) is amended—
(1) in subsection (a)—
(A) by striking ‘‘and’’ at the end of paragraph (1);
(B) by striking the period at the end of paragraph (2) and
inserting a semicolon; and
(C) by adding at the end the following:
‘‘(3) with respect to each foreign country from which the
United States Government has sought cooperation during the
previous five years in the investigation or prosecution of an
act of international terrorism against United States citizens
or interests, information on—
‘‘(A) the extent to which the government of the foreign
country is cooperating with the United States Government
in apprehending, convicting, and punishing the individual
or individuals responsible for the act; and
‘‘(B) the extent to which the government of the foreign
country is cooperating in preventing further acts of terrorism
against United States citizens in the foreign country; and

124

TITLE V—GENERAL PROVISIONS—Continued

THE BUDGET FOR FISCAL YEAR 1998

øINFORMATION ON COOPERATION WITH UNITED STATES ANTITERRORISM EFFORTS IN ANNUAL COUNTRY REPORTS ON
TERRORISM¿—Continued
‘‘(4) with respect to each foreign country from which the
United States Government has sought cooperation during the
previous five years in the prevention of an act of international
terrorism against such citizens or interests, the information
described in paragraph (3)(B).’’; and
(2) in subsection (c)—
(A) by striking ‘‘The report’’ and inserting ‘‘(1) Except as provided in paragraph (2), the report’’;
(B) by indenting the margin of paragraph (1) as so designated,
2 ems; and
(C) by adding at the end the following: ‘‘(2) If the Secretary
of State determines that the transmittal of the information with
respect to a foreign country under paragraph (3) or (4) of subsection (a) in classified form would make more likely the cooperation of the government of the foreign country as specified in
such paragraph, the Secretary may transmit the information
under such paragraph in classified form.’’.¿
øFEMALE GENITAL MUTILATION¿
øSEC. 579. (a) LIMITATION.—Beginning 1 year after the date of
the enactment of this Act, the Secretary of the Treasury shall instruct
the United States Executive Director of each international financial
institution to use the voice and vote of the United States to oppose
any loan or other utilization of the funds of their respective institution, other than to address basic human needs, for the government
of any country which the Secretary of the Treasury determines—
(1) has, as a cultural custom, a known history of the practice
of female genital mutilation; and
(2) has not taken steps to implement educational programs designed to prevent the practice of female genital mutilation.¿
ø(B) DEFINITION.—For purposes of this section, the term ‘‘international financial institution’’ shall include the institutions identified
in section 532(b) of this Act.¿
øREQUIREMENT

FOR

DISCLOSURE
SECRETARY

OF
OF

FOREIGN AID
STATE¿

REPORT

øSEC. 580. (a) FOREIGN AID REPORTING REQUIREMENT.—In addition
to the voting practices of a foreign country, the report required to
be submitted to Congress under section 406(a) of the Foreign Relations Authorization Act fiscal years 1990 and 1991 (22 U.S.C. 2414a),
shall include a side-by-side comparison of individual countries’ overall
support for the United States at the United Nations and the amount
of United States assistance provided to such country in fiscal year
1996.¿
ø(b) UNITED STATES ASSISTANCE.—For purposes of this section, the
term ‘‘United States assistance’’ has the meaning given the term
in section 481(e)(4) of the Foreign Assistance Act of 1961 (22 U.S.C.
2291(e)(4)).¿
øRESTRICTIONS

VOLUNTARY CONTRIBUTIONS
AGENCIES¿

UNITED NATIONS

øSEC. 581. (a) PROHIBITION ON VOLUNTARY CONTRIBUTIONS FOR
UNITED NATIONS.—None of the funds appropriated or otherwise
made available by this Act may be made available to pay any voluntary contribution of the United States to the United Nations (including the United Nations Development Program) if the United Nations implements or imposes any taxation on any United States persons.¿
ø(b) CERTIFICATION REQUIRED FOR DISBURSEMENT OF FUNDS.—
None of the funds appropriated or otherwise made available under
this Act may be made available to pay any voluntary contribution
of the United States to the United Nations (including the United
Nations Development Program) unless the President certifies to the
Congress 15 days in advance of such payment that the United Nations is not engaged in any effort to implement or impose any taxation on United States persons in order to raise revenue for the
United Nations or any of its specialized agencies.¿
ø(c) DEFINITIONS.—As used in this section the term ‘‘United States
person’’ refers to—
(1) a natural person who is a citizen or national of the United
States; or
(2) a corporation, partnership, or other legal entity organized
under the United States or any State, territory, possession, or
district of the United States.¿

THE

øHAITI¿
øSEC. 582. The Government of Haiti shall be eligible to purchase
defense articles and services under the Arms Export Control Act
(22 U.S.C. 2751 et seq.), for the civilian-led Haitian National Police
and Coast Guard: Provided, That the authority provided by this section shall be subject to the regular notification procedures of the
Committees on Appropriations.¿
øREFUGEE STATUS FOR ADULT CHILDREN OF FORMER VIETNAMESE
REEDUCATION CAMP INTERNEES RESETTLED UNDER THE ORDERLY
DEPARTURE PROGRAM¿
øSEC. 584. (a) ELIGIBILITY FOR ORDERLY DEPARTURE PROGRAM.—
For purposes of eligibility for the Orderly Departure Program for
nationals of Vietnam, during fiscal year 1997, an alien described
in subsection (b) shall be considered to be a refugee of special humanitarian concern to the United States within the meaning of section
207 of the Immigration and Nationality Act (8 U.S.C. 1157) and
shall be admitted to the United States for resettlement if the alien
would be admissible as an immigrant under the Immigration and
Nationality Act (except as provided in section 207(c)(3) of that Act).¿
ø(b) ALIENS COVERED.—An alien described in this subsection is
an alien who—
(1) is the son or daughter of a national of Vietnam who—
(A) was formerly interned in a reeducation camp in Vietnam
by the Government of the Socialist Republic of Vietnam; and
(B) has been accepted for resettlement as a refugee under
the Orderly Departure Program on or after April 1, 1995;
(2) is 21 years of age or older; and
(3) was unmarried as of the date of acceptance of the alien’s
parent for resettlement under the Orderly Departure Program.¿
ø(c) SUPERSEDES EXISTING LAW.—This section supersedes any other
provision of law.¿
øNORTH KOREA¿
øSEC. 585. Ninety days after the date of enactment of this Act,
and every 180 days thereafter, the Secretary of State, in consultation
with the Secretary of Defense, shall provide a report in a classified
or unclassified form to the Committee on Appropriations including
the following information:
(a) a best estimate on fuel used by the military forces of the
Democratic People’s Republic of Korea (DPRK);
(b) the deployment position and military training and activities
of the DPRK forces and best estimate of the associated costs of
these activities;
(c) steps taken to reduce the DPRK level of forces; and
(d) cooperation, training, or exchanges of information, technology
or personnel between the DPRK and any other nation supporting
the development or deployment of a ballistic missile capability.¿
øLIMITATION

ASSISTANCE

MEXICO¿

øSEC. 587. Not less than $2,500,000 of the funds appropriated
or otherwise made available by this Act for the Government of Mexico
shall be withheld from obligation until the President has determined
and reported to Congress that—
(1) the Government of Mexico is taking actions to reduce the
amount of illegal drugs entering the United States from Mexico;
and
(2) the Government of Mexico—
(A) is taking effective actions to apply vigorously all law enforcement resources to investigate, track, capture, incarcerate,
and prosecute individuals controlling, supervising, or managing
international narcotics cartels or other similar entities and the
accomplices of such individuals, individuals responsible for, or
otherwise involved in, corruption, and individuals involved in
money-laundering;
(B) is pursuing international anti-drug trafficking initiatives;
(C) is cooperating fully with international efforts at narcotics
interdiction; and
(D) is cooperating fully with requests by the United States
for assistance in investigations of money-laundering violations
and is making progress toward implementation of effective laws
to prohibit money-laundering.¿
øLIMITATION

ASSISTANCE

TURKEY¿

øSEC. 588. Not more than $22,000,000 of the funds appropriated
in this Act under the heading ‘‘Economic Support Fund’’ may be
made available to the Government of Turkey.¿

FUNDS APPROPRIATED TO THE PRESIDENT
øCIVIL LIABILITY

FOR

ACTS

STATE SPONSORED TERRORISM¿

øSEC. 589. (a) an official, employee, or agent of a foreign state
designated as a state sponsor of terrorism designated under section
6(j) of the Export Administration Act of 1979 while acting within
the scope of his or her office, employment, or agency shall be liable
to a United States national or the national’s legal representative
for personal injury or death caused by acts of that official, employee,
or agent for which the courts of the United States may maintain
jurisdiction under section 1605(a)(7) of title 28, United States Code,
for money damages which may include economic damages, solatium,

TITLE V—GENERAL PROVISIONS—Continued

125

pain, and suffering, and punitive damages if the acts were among
those described in section 1605(a)(7).¿
ø(b) Provisions related to statute of limitations and limitations
on discovery that would apply to an action brought under 28 U.S.C.
1605(f) and (g) shall also apply to actions brought under this section.
No action shall be maintained under this action if an official, employee, or agent of the United States, while acting within the scope
of his or her office, employment, or agency would not be liable for
such acts if carried out within the United States.¿ (Foreign Operations, Export Financing, and Related Programs Appropriation Act,
1997.)

Full text of Budget of the United States Government - Appendix : Fiscal Year 1998 : Funds Appropriated to the President

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