Fiscal year 2002 security assistance legislation - Legislation and Policy

Kenneth W. Martin

Introduction

Each year, the DISAM Journal publishes a summary and analysis of the legislation that impacts our security assistance and related programs. In this issue, we present the eighteenth in a series of annual studies of the major pieces of legislation with references to security assistance and related programs. This report is intended to alert all security assistance managers to the collective changes in legislation that will influence program implementation for the coming year. As we have done in the past, the report is basically in outline form, with key topics highlighted to facilitate locating specific statutory references. As this issue of the journal goes to press, the final allocations of the security assistance appropriations have not been promulgated. Consequently, the tables showing the levels of country and program funding that would accompany this article will be included in the spring issue of the DISAM Journal.

Because of the September 11th terrorist attacks, the ever-evolving subsequent military action, and the already ongoing economic recession, congressional budget actions by the end of fiscal year (FY) 2001 were delayed, with much work remaining to be done well into the new fiscal year. Ten of the required thirteen annual appropriations acts were legislated and enacted before the Christmas holidays while the remaining three were legislated but not yet enacted by the President until at the end of the period for the eighth required continuing resolution (CR) that expired on 10 January 2002. Two of the three bills were of significance to the security assistance community and to complete the writing of this article. The two were the Kenneth M Ludden Foreign Operations, Export Financing, and Related Programs, Appropriations Act, Fiscal Year 2002, P.L. 107-115, 10 January 2002, and Department of Defense and Emergency Supplemental Appropriations for Recovery from and Response to Terrorist Attacks on the United States A ct, 2002, P.L. 107-117, 10 January 2002. The third bill that was finally enacted was the always controversial Departments of Labor Health and Human Services, Education, and Related Agencies Appropriations Act, 2002, P.L. 107-116, 10 January 2002.

Items of significance within the Kenneth M Ludden Foreign Operations, Export Financing, and Related Programs, Appropriations Act, Fiscal Year 2002, include at least five changes from prior years' legislation.

* While total security assistance funding for FY 2002 is slightly less than for FY 2001, the small, yet most effective, International Military Educational and Training (IMET) program realized a growth in excess of twenty percent over last year to $70,000,000.

* Plan Colombia, implemented during FY 2001, continues to receive significant funding from the State Department International Narcotics Control and Law Enforcement and Andean Counterdrug Initiative accounts.

* The advance congressional notification for the sale of excess defense articles (EDA) is modified to include only notifying significant military equipment (SME) or articles valued (original acquisition cost) at $7,000,000 or more, in general alignment with existing advance notification procedures for the FAA-authorized grant transfer of EDA.

* Congress is to receive a briefing at least every 120 days during FY 2002 to include details on any discussions by the executive branch with Taiwan concerning any potential purchase of U.S. defense articles and services.

* The number of countries in Eastern Europe, former Soviet Union, and Southwest Asia specifically eligible during FY 2002/03 to receive DoD funding assistance for packing, crating, handling and transportation (PCH&T) of grant EDA transfers is renewed or authorized for the first time.

In direct political and military response to the September 11th terrorist attacks, An Act to Authorize the President to Exercise Waivers of Foreign Assistance Restrictions with Respect to Pakistan through September 30, 2003, and for Other Purposes, P.L. 107-57, 27 October 2001, was enacted to provide the President significant flexibility in conducting the war on terrorism.

* The Act temporarily exempts Pakistan from generally legislated military coup, Military Technology Control Regime (MTCR), and loan default sanctions.

* It also reduces the congressional advance notification periods for special drawdowns from fifteen to five days and grant EDA transfers from thirty to fifteen days for the purposes of anti-terrorism.

The National Defense Authorization Act for FY 2002, P.L. 107-107, 28 December2001, provides three significant security assistance related points of interest.

* Thirteen U.S. Navy (USN) ships are authorized for transfer by grant EDA or foreign military sales (FMS).

* The Department of Defense is authorized to conduct international cooperative research and development programs with any friendly country, along with the already authorized countries within NATO and designated major non-NATO allies.

* The Comptroller General is to conduct a study concerning any benefits the recipient country and the U.S. derive from the special drawdown, grant EDA, and emergency PKO drawdown programs. This study is to include the cost to the DoD and any effect on readiness resulting from these grant transfers.

Finally, the Department of Defense and Emergency Supplemental Appropriations for Recovery from and Response to Terrorist Attacks on the United States Act, P.L. 107-117, 10 January 2002, includes two significant security assistance related provisions.

* A report is to be provided to Congress regarding what has been done to develop cooperative threat reduction programs with Pakistan and India, to include recommended changes to U.S. law, an implementation timetable, and a five-year budget to fully fund such initiatives.

* $100,000,000 is appropriated for payments to Pakistan and Jordan for logistical and military support provided, or to be provided, to the U.S. military operations in connection with Operation Enduring Freedom against international terrorism.

A more detailed account of the provisions of legislation enacted for FY 2002 that is of interest to the security assistance community now follows.

Reference Sources

The following abbreviated titles identify that principal sources of information used in this article.

* Arms Export Control Act (AECA), as amended, Public Law (P.L.) 90-629, 22 October 1968;

* The Foreign Assistance Act (FAA) of 1961, as amended, P.L. 87-195, 4 September 1961;

* P.L. 107-38: 2001 Emergency Supplemental Appropriations Act for Recovery from and Response to Terrorist Attacks on the United States, P.L. 107-38, 18 September 2001.

* P.L. 107-57: An act to Authorize the President to Exercise Waivers of Foreign Assistance Restrictions with Respect to Pakistan through September 30, 2003, and for Other Purposes, P.L. 107-57, 27 October 2001;

* P.L. 107-77: Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 2002, P.L. 107-77, 28 November 2001;

* P.L. 107-107: National Defense Authorization Act for FY 2002, P.L. 107-107, 28 December 2001;

* P.L. 107-115, Kenneth M. Ludden Foreign Operations, Export Financing, and Related Programs Appropriations Act, Fiscal Year 2002, P.L. 107-115, 10 January 2002, and

* P.L. 107-117, Department of Defense and Emergency Supplemental Appropriations for Recovery from and Response to Terrorist Attacks on the United States Act, 2002, P.L. 107-117, 10 January 2002.

Kenneth M. Ludden Foreign Operations, Export Financing, and Related Programs Appropriations Act, Fiscal Year 2002, P.L. 107-115, 10 January 2002

* Enacted from House Report (HR) 2506. The conference report is contained in House Report 107-345, printed in the Congressional Record on 19 December 2001.

* Appropriated $3,650,000,000 as FMFP grant assistance.

* The FMFP funding request by the Administration for FY 2002 was for $3,674,000,000. The Conference Report indicated that the House and Senate proposals were $3,627,000,000 and $3,674,000,000, respectively.

* Total FMFP funding initially appropriated for FY 2001 by Foreign Operations, Export Financing, and Related Programs Appropriations, 2001, 6 November 2001, P.L. 106-429 was $3,576,000,000, which included an additional $31,000,000 as an emergency supplemental for the Balkans and southeast Europe. The emergency supplemental portion is to remain available until 30 September 2002. However, Section 1(a)(4) of Miscellaneous Appropriations for Fiscal Year 2001, 21 December 2001, P.L. 106-552, subsequently mandated an across-the-board budget rescission of .22 percent thus reducing the initial appropriation by $7,867,000 to a final FY 2001 FMFP figure of $3,568,133,000 For allocation.

* FMFP earmarks include:

* Not less than $2,040,000,000 for Israel to be disbursed within 30 days of the enactment of this Act or by 31 October 2001, whichever is later;

* This is the fourth year of a ten-year period in which Israel's FMFP funding is to be increased by $60,000,000 annually. This annual increase in FMFP is to coincide with an annual decrease of $120,000,000 in Economic Support Fund (ESF) funding to achieve the goal of no ESF funding assistance for Israel in ten years (beginning in FY 2009); and

* To the extent Israel requests that funds be used for such purposes, this funding shall be available for advanced weapons systems, of which not less than $535,000,000 shall be available for the procurement in Israel of defense articles and services, including research and development.

* Not less than $1,300,000,000 for Egypt.

* Any funding estimated to be outlaid for Egypt during the fiscal year shall be transferred to an interest bearing account for Egypt in the Federal Reserve Bank of New York within 30 days of enactment of this Act or by 31 October 2001, which is ever later.

* Not less than $75,000,000 for Jordan.

* Not less than $3,500,000 for Tunisia.

* The President is also authorized and shall direct the drawdown of defense articles, defense services, and military education and training during FY 2002 of an aggregate value of not less than $5,000,000 for Tunisia for the numerous purposes contained within Part II of the FAA.

* Of the funds appropriated for FMFP and under the heading International Narcotics and Law Enforcement, not less than $2,300,000 shall be made available for Thailand, of which not less than $1,000,000 shall be made available from under the heading International Narcotics and Law Enforcement and which shall be in addition to other funds available for such purposes.

* The conference managers are agreed that this assistance for Thailand shall be made available for one-time costs associated with border security.

* Not less than $4,000,000 for Armenia.

* Not more than $35,000,000 for 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 sales.

* While not earmarking any FMFP funding, by this Section of the act, the President is authorized and shall direct the drawdown of defense articles, defense services, and military education and training during FY 2002 of an aggregate value of not less than $4,000,000 for Georgia for the numerous purposes contained within Part II of the FAA.

* Last year's legislation directed the same drawdown figure of $4,000,000 for Georgia but in conjunction with an FMFP funding earmark of $8,000,000.

* $3,462,500,000 of FMFP funding has been earmarked for FY 2002. This leaves $187,500,000, or almost 5.1 percent of the total appropriated, remaining for other FMFP programs.

* This compares to $138,633,000, after rescissions, or almost 3.9 percent, remaining in FY 2001 for other FMFP programs.

* As in prior years, no FMFP funding shall be available for assistance for Sudan, Liberia, or Guatemala.

* Notwithstanding any other provision of law, FMFP funding may be used for demining, the clearance of unexploded ordnance, and related activities, to include activities implemented through nongovernmental and international organizations.

* Not more than $348,000,000 of the non-appropriated FMS administrative budget may be obligated during FY 2002 to support administrative expenses of security assistance organizations (SAOs), agencies, military departments, etc. related to the implementation of foreign military sales. This account is funded by surcharges which are added to all FMS cases in order to recover U.S. government expenses for sales negotiations, case implementation, program control, computer programming, accounting and budgeting, and other FMS-related administrative activities at command headquarters and higher levels.

* Appropriated $70,000,000 as IMET grant assistance.

* The IMET funding request by the Administration for FY 2002 was for $65,000,000 The Conference Report indicated that the House and Senate proposals were $65,000,000 and $75,000,000, respectively.

* Total IMET funding initially appropriated for FY 2001 by P.L. 106-429 was $57,875,000 which included an additional $2,875,000 as an emergency supplemental for tin Balkans and southeast Europe. The emergency supplemental portion is to remain available until 30 September 2002. The FY 2001 budget rescission reduced the initial appropriation by $127,00 (to a final FY 2001 IMET figure of $57,748,000 for allocation.

* Up to $3,000,000 of the appropriated IMET funding may remain available until expended. By comparison, this figure for FY 2001 was $1,000,000.

* Any IMET funding for Indonesia and Guatemala may only available for expanded IMET, and funds made available for these two countries and Algeria may only be provided through the regular notification procedures of the Committees on Appropriations. The Indonesia and Guatemala stipulations are the same as those for FY 2001; however, the Algeria notification requirement for FY 2002 is new.

* The Senate proposed language included the required prior notification before providing IMET assistance to Zimbabwe, the Democratic Republic of Congo, Cote D'Ivoire, and Gambia. However, later Section 520 of this Act also requires the same notification before any funding assistance is to be provided to Zimbabwe and the Democratic Republic of Congo, so the language was not included under the IMET heading. The conference managers expect the Departments of State and Defense to consult with the Committees on Appropriations prior to any decision to obligate funds for Cote D'Ivoire. Notification requirements for Gambia were not included in the final bill.

* Any IMET funding used for the military education and training of civilian personnel may include civilians who are not members of a government whose participation would contribute to improved civil-military relations, civilian control of the military, or respect for human rights.

* Other Conference Report language includes:

* While not a legislated earmark, the conference managers support IMET funding of not less than $300,000 for Armenia. The Administration did not request funding for Armenia.

* The conference managers urge that a program for Colombia to define structures and processes for responding to armed conflict and maintaining civilian control of the military be considered at the Naval Postgraduate School.

* Appropriated $135,000,000 as PKO grant assistance to obligated or expended except as provided through the regular notification procedures of the Committees on Appropriations.

* The PKO funding request by the Administration for FY 2002 was for $150,000,000. The Conference Report indicated that the House and Senate proposals were $135,000,000 and $140,000,000, respectively.

* Total PKO funding initially appropriated for FY 2001 by P.L. 106-429 was $127,000,000. The FY 2001 budget rescission reduced the initial appropriation by $279,000 to a final FY 2001 PKO figure of $126,721,000 for allocation.

* Appropriated $2,199,000,000 as ESF grant funding for FY 2002 to remain available until 30 September 2003.

* The ESF funding request by the Administration for FY 2002 was for $2,289,000,000 to include $19,600,000 for the International Fund for Ireland and $5,000,000 for the Irish Visa Program. The Conference Report indicated the House and Senate proposals were $2,199,000,000 and $2,239,500,000, respectively.

* The Ireland funding was appropriated under the heading, International Fund for Ireland, under the same FAA authority for ESF. The FY 2002 appropriation was for $25,000,000, the same level as for FY 2001. These funds shall also remain available until 30 September 2003.

* Total ESF funding initially appropriated for FY 2001 by P.L. 106-429 was $2,295,000,000. The FY 2001 budget rescission reduced the initial appropriation by $5,104,000 to a final FY 2001 ESF figure of $2,314,896,000 for allocation.

* ESF earmarks include:

* Not less than $720,000,000 for Israel which shall be available as a cash transfer to be disbursed within 30 days of enactment of this Act or by 31 October 2001, whichever is later.

* In exercising the authority for the cash transfer, the President shall ensure that the level of assistance does not cause an adverse effect on the total level of nonmilitary exports from the U.S. to Israel, and that Israel enters into a side letter agreement in an amount proportional to the FY 1999 agreement.

* Not less than $655,000,000 for Egypt of which sum cash transfer assistance shall 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.

* $150,000,000 "should be made available" for Jordan.

* $50,000,000 "should be made available" for Indonesia.

* The final legislation does not include language proposed by the Senate for not less $10,000,000 from various accounts for humanitarian, economic rehabilitation and reconstruction, political reconciliation and related activities in Aceh, Papua, West Timor and Malukus. However, the conference managers did direct USAID to urgently pursue opportunities to provide such assistance to address urgent needs in these impoverished and politically volatile regions. Funds made available for these purposes may be made available to and managed by the Office of Transition Initiatives.

* The conference managers remain concerned with the political situation in Indonesia, and encourage the Government to continue to implement needed political, legal, economic, and military reforms. While the managers appreciate the complex situation within Indonesia, they find criticism by President Megawati Sukarnopoutri of American-led efforts to counter international terrorism to be dismaying.

* Not less than $15,000,000 for Cyprus to be used only for scholarships, administrative support of the scholarship fund, 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.

* Not less than $35,000,000 for Lebanon to be used, among other programs, for scholarships and direct support of the American educational institutions in Lebanon.

* Notwithstanding later Section 534(a) of this Act, ESF funds made available for assistance for the Central Government of Lebanon shall be subject to regular notification procedures of the Committees on Appropriations.

* Also, the Government of Lebanon should enforce the custody and international pickup orders, issued during calendar 2001, of Lebanon's civil courts regarding abducted American children in Lebanon.

* The conference managers expressed deep concern by reports that the Government of Lebanon will not cooperate with the President's request, made pursuant to E.O. 13224, to freeze the assets of Hezbollah, a group included on the State Department's list of terrorist organizations. The managers will closely monitor the Government of Lebanon's future cooperation with this and other aspects of the campaign against terrorism.

* Not less than $25,000,000 for East Timor of which up to $1,000,000 may be transferred to and merged with appropriation for Operating Expenses of USAID.

* Under the heading, Bilateral Economic Assistance, Burma, not less than $6,500,000 of ESF funding for democratic activities in Burma, democracy and humanitarian activities along the Burma-Thailand border, and for Burmese student groups and other organizations located outside Burma.

* $1,656,500,000 of ESF funding has been earmarked for FY 2002. This leaves $539,500,000, or 24.5 percent of the total appropriated, remaining for other ESF programs.

* This compares to $527,896,000, after rescissions, or almost 23 percent, remaining in FY 2001 for other ESF programs.

* ESF funds from this Act may be used to provide assistance to the National Democratic Alliance of Sudan to strengthen its ability to protect civilians from attacks, slave raids, and aerial bombardment by the Sudanese Government forces and its militia allies. The providing of such funds shall be subject to the regular notification procedures of the Committees on Appropriations.

* In this case, assistance is defined to include non-lethal, non-food aid such as blankets, medicine, fuel, mobile clinics, water drilling equipment, communications equipment to notify civilians of aerial bombardment, non-military vehicles, tents, and shoes.

* Though not legislated, the Senate proposal included a ceiling of $10,000,000.

* With respect to ESF funds appropriated by this Act or prior acts, the responsibility for policy decisions and justifications for the use of such funds, including whether there will be a program for a country that uses these funds and the amount of each such program, shall be the responsibility of the Secretary of State and the Deputy Secretary of State. This responsibility shall not be delegated.

* The conference managers are concerning that the programs and activities funded by ESF accurately reflect both the priorities of the Secretary of State and the budget justification material provided to the Committees on Appropriations, as modified by the conference agreement. The managers reiterate the importance of Congressional intent in the programming of ESF funds, and anticipate a cooperative approach during FY 2002 on funding allocations and programming decisions.

* To improve accountability for the delivery of assistance, the managers urge the Department of State and the Office of Management and Budget (OMB) to streamline the current practice of apportioning ESF so that the bureau or agency designated by the Secretary or Deputy Secretary to obligate and manage the funds is able to do so in a more efficient and timely manner.

* Other conference report language includes:

* Final legislation did not include proposed Senate language related to funding for the Documentation Center of Cambodia, but the conference managers recognize the vital research the Center provides to the people of Cambodia on atrocities committed by the Khmer Rouge. The managers endorse the Senate language and expect the Department of State and USAID to provide sufficient levels of funding to the Center. The managers request the Secretary of State to report to the Committees on Appropriations not later than 60 days after enactment of this Act on a multiyear funding strategy for the Documentation Center of Cambodia.

* Final legislation did not include Senate proposed funding of not less than $12,000,000 for Mongolia; however, the conference managers support this level of funding for assistance, which is consistent with the budget request.

* Though not legislated, the conference managers direct that $53,000,000 of ESF be provided for reproductive health/family planning, as assumed in the budget request.

* The conferees reiterate their support for conflict prevention analysis in light of 11 September events, and urge the administration to provide funding for groups previously cited such as the International Crisis Group, whose work identifies and addresses the causes of conflict and the failed states which breed terrorism. Conference managers also reiterate support for important conflict resolution programs as described in the House and Senate reports, including funding of up to $1,000,000 for Seeds of Peace and up to $1,000,000 for the School for International Training's Conflict Transformation Across Cultures Program (CONTACT).

* The conference managers endorse the House report language regarding support for the International Arid Land Consortium and Blaustein Institute for Desert Research.

* The conference managers also endorse the Senate report language concerning the jurisdiction of and accelerated U.S. financial support for the war crimes tribunal for Sierra Leone.

* And finally, the conference managers encourage the State Department to support programs designed to connect the information technology networks of Central Asian and Central and Eastern European members of the Partnership-for-Peace (PfP), to help strengthen integration and cooperation among these nations.

Other Assistance Programs for FY 2002

Title II, Bilateral Assistance

Development Assistance

* $1,178,000,000 is appropriated for development assistance to remain available until 30 September 2003.

International Disaster Assistance

* $235,500.000 is appropriated for international disaster relief, rehabilitation, and reconstruction assistance, to remain available until expended.

Transition Initiatives

* $50,000,000 is appropriated to support transition to democracy and to long-term development of countries in crisis, to remain available until expended.

* Such support may include assistance to develop, strengthen, or preserve democratic institutions and processes, revitalize basic infrastructure, and foster the peaceful resolution of conflict.

* USAID shall submit a report to the Committees on Appropriations at least five days prior to beginning a new program of assistance.

Assistance for Eastern Europe and the Baltic States

* $621,000,000 is appropriated, to remain available until 30 September 2003, to carry out the provisions of the Support for East European Democracy (SEED) Act of 1989, P.L. 101-179, 28 November 1989.

Assistance for the Independent States of the former Soviet Union

* $784,000,000 is appropriated, to remain available until 30 September 2003, to carry out the provisions of the Freedom for Russia and Emerging Eurasian Democracies and Open Markets (FREEDOM) Support Act of]992, P.L. 102-511, 24 October 1992.

* Earmarks include:

* Not less than $17,000,000 solely for the Russian Far East.

* Not less than $90,000,000 for Armenia.

* Not less than $30,000,000 for nuclear reactor safety initiatives.

* Not less than $154,000,000 for the Ukraine.

* $90,000,000 should be made available for Georgia.

* The President may waive Section 907 of the Freedom Support Act, restricting assistance to Azerbaijan, if he determines and certifies to the Committees on Appropriations that to do so:

* Is necessary to support U.S. efforts to counter international terrorism, or

* Is necessary to support the operational readiness of the U.S. Armed Forces or coalition partners to counter international terrorism, or

* Is important to Azerbaijan's border security, and will not undermine or hamper ongoing efforts to negotiate a peaceful settlement between Armenia and Azerbaijan or be used for offensive purposes against Armenia.

Title II, Independent Agencies

Inter-America Foundation

* $13,106,950 is appropriated for the Foundation in accordance with Section 401, FAA.

African Development Foundation

* $16,542,000 is appropriated for the Foundation to carry out Title IV, International Security and Development Cooperation Act of 1980, P.L. 96-533, 16 December 1980.

Peace Corps

* $275,000,000 is appropriated, to remain available until 30 September 2003, to carry out the provisions of the Peace Corps Act, P.L. 87-293, 22 September 1961.

Title II, Department of State

International Narcotics Control and Law Enforcement

* $217,000,000 is appropriated, to remain available until expended, for necessary expenses to carry out the provisions of Section 481, FAA.

Andean Counterdrug Initiative

* $625,000,000 is appropriated, to remain available until expended, to carry out Section 481, FAA, solely to support counterdrug activities in the Andean region of South America.

* The President may make available up to an additional $35,000,000 for the Andean Counterdrug Initiative, which may be derived from funds appropriated under the heading, International Narcotics Control and Law Enforcement, in this Act and other foreign operations appropriations acts.

* Not less than $215,000,000 shall be apportioned to USAID for social and economic programs.

* Amends Section 3204(b)(1)(A), Emergency Supplemental Act 2000, P.L. 106-246, 13 July 2000, by changing the number of U.S. military personnel in Colombia in support of Plan Colombia to not exceed 400, vice 500.

* Amends Section 3204(b)(1)(B) of the aforementioned P.L. 106-246, by changing the number of U.S. civilian contractors in Colombia in support of Pan Colombia to not exceed 400, vice 300.

* President shall ensure that if any helicopter procured with funds under this heading is used to aid or abet the operations of any illegal self-defense group or illegal security cooperative, be immediately returned to the U.S.

Migration and Refugee Assistance

* $705,000,000 is appropriated, to remain available until expended, to enable the Secretary of State to provide, as authorized by law, a contribution to the International Committee of the Red Cross, assistance to refugees, including contributions to the International Organization for Migration and the U.N. High Commissioner for Refugees.

* Funds may be available for a headquarters contribution to the International Committee of the Red Cross only if the Secretary of State determines and reports to the appropriate committees of the Congress that the Magen David Adom Society of Israel is not being denied participation in the activities of the International Red Cross and Red Crescent Movement.

* Not less than $60,000,000 shall be made available for refugees from the former Soviet Union and Eastern Europe and other refugees resettling in Israel.

United States Emergency Refugee and Migration Assistance Fund

* $15,000,000 is appropriated, to remain available until expended, to carry out the provisions of Section 2(c) of the Migration and Refugee Act of 1962, P.L. 87-510, 28 June 1962.

Nonproliferation, Anti-terrorism, Demining and Related Programs

* $313,500,000 to carry out Part II, Chapters 8 and 9 of the FAA, Section 504 of the Freedom Support Act, Section 23 of the AECA, or the FAA (for demining activities, the clearance of unexploded ordnance, the destruction of small arms, and related activities.

* An amount not to exceed $14,000,000, to remain available until expended, may be made available to promote bilateral and multilateral activities relating to nonproliferation and disarmament.

* An amount not to exceed $500,000, in addition to funds otherwise available for such purposes, may be used for administrative expenses related to the operations and management of the demining program.

* The conference managers intend that funds in this account be allocated as follows:

* Nonproliferation and Disarmament Fund -- $14,000,000

* Export Control Assistance -- $17,000,000

* International Atomic Energy Agency -- $50,000,000

* Comprehensive Nuclear Test Ban Treaty (CTBT) Preparatory Commission --$20,000,000

* Korean Peninsula Economic Development Organization (KEDO) -- $90,500,000

* Anti-terrorism Assistance -- $38,000,000

* Terrorist Interdiction Program -- $4,000,000

* Demining -- $40,000,000

* Small Arms Destruction -- $3,000,000

* Science Centers - $37,000,000

Title V, General Provisions

Limitation on Representative Allowances (Section 505)

* Directed ceilings are set on FMFP and IMET allowances

* For FMFP, not to exceed $2000 for entertainment expenses, and not to exceed $125,000 for representation allowances. The later figure for representation allowances is an increase over prior fiscal years' $50,000.

* For IMET, not to exceed $50,000 for entertainment allowances. This figure remains unchanged from prior fiscal years.

Prohibition Against Direct Funding for Certain Countries (Section 507)

* No funds appropriated or made available by this Act shall be obligated or expended to finance directly any assistance or reparations to Cuba, Iraq, Libya, North Korea, Iran, Sudan, or Syria. This prohibition shall include direct loans, credits, insurance, and guarantees of the Export-Import Bank or its agents.

Military Coups (Section 508)

* No funds appropriated or made available by this Act shall be obligated or expended to finance directly any assistance to the government of any country whose dully elected head of government is deposed by decree or military coup

* Assistance may be resumed to such government if the President determines and certifies to the Committees on Appropriations that subsequent to the termination of assistance a democratically elected government has taken office.

* The provisions of this Section shall not apply to assistance to promote democratic elections or public participation in democratic processes.

* During FY 2002, and FY 2003, the President is authorized to waive this Section with respect to Pakistan. Refer to Section 1, P.L. 107-57, later in this article.

Deobligation/Reobligation Authority (Section 510)

* Obligated balances of FMFP funds as of the end of the fiscal year immediately preceding the current fiscal year are, if deobligated, continued available during the current fiscal year for the same purpose under any authority applicable to such appropriations under this Act. This authority may not be used in FY 2002.

Availability of Funds (Section 511)

* No funding appropriated by this Act shall remain available for obligation after the expiration of FY 2002 unless expressly so provided in act.

* However, funds appropriated for the purposes of, inter alia, International Narcotics Control, Support for the Economic and Democratic Development of the Independent States of the former Soviet Union, Support for the Economic and Political Independence of the Countries of the South Caucasus and Central Asia, Economic Support Fund, Foreign Military Financing Program, and Assistance for Eastern Europe and the Baltic States shall remain available for an additional four years from the date on which the availability of such funds would otherwise have expired, if such funds are initially obligated before the expiration of their respective periods of availability contained in act.

* Notwithstanding any other provision of this Act, any funds made available for the purposes of the Economic Support Fund 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.

Limitation on Assistance to Countries in Default (Section 512)

* Also referred to as the Brooke-Alexander Amendment.

* No part of any appropriation 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 to the U.S. of principal or interest on any loan made to the government of such by the U.S. pursuant to a program for which funds are appropriated under act.

* The President may determine otherwise, following consultations with the Committees on Appropriations, if the assistance to such country is in the national interest of the U.S.

* For the first time, this Section contains the above presidential waiver authority.

* For the first time, the exemption of this Section to FAA and AECA-authorized counternarcotics assistance to Colombia, Bolivia, and Peru no longer applies. Additionally, a similar sanction exemption of Section 620(q), FAA, for Colombia, Bolivia, and Peru counternarcotics funding when in default of in excess of six months in loan repayments no longer applies.

* This Section does not apply to Pakistan. See later Section 3(2), P.L. 107-57, for further discussion.

Notification Requirements (Section 515)

* For the purposes of providing the Executive Branch with the necessary administrative flexibility, none the funds made available under act for; inter alia, International Narcotics Control and Law Enforcement, Andean Counterdrug Initiative, Assistance for Eastern Europe and the Baltic States, Assistance for the Independent States of the former Soviet Union, Economic Support Fund, Peacekeeping Operations, Nonproliferation, Anti-Terrorism, Demining, and Related Programs, Foreign Military Financing Program, and International Military Education and Training; shall be available for obligation for activities, programs countries, or other operations not justified or in excess of the amount justified to the Committees on Appropriations for obligation under any of those justified to the Committees are previously notified fifteen days in advance.

* The President shall not enter into any commitment of funds appropriated for Section 23, AECA, purposes for the provision of major defense equipment, other conventional ammunition, or other major defense items defined to be aircraft, ships, missiles, or combat vehicles, not previously justified to Congress or twenty percent in excess of the quantities justified to Congress unless the Committees on Appropriations are notified 15 days in advance of such commitment.

* Notification procedures of this Section to Committees on Appropriations for Section 506(a)(2), FAA, drawdowns are no longer required. However, required prior notification to Congress for drawdowns is codified within Section 516(b)(1), FAA.

Special Notification Requirements (Section 520)

* None of the funds appropriated by this Act shall be obligated or expended for Colombia, Haiti, Liberia, Serbia, Sudan, Zimbabwe, Pakistan, or the Democratic Republic of the Congo except as provided through the regular notification procedures of the Committees on Appropriations.

* Eritrea and Ethiopia have been removed from this list.

* Prohibition Against Indirect Funding to Certain Countries (Section 523)

* None of the funds appropriated or otherwise made available by this Act shall be obligated to finance indirectly any assistance or reparations to Cuba, Iraq, Libya, Iran, Syria, North Korea, or Sudan, unless the President certifies that the withholding of these funds is contrary to the national interest of the U.S.

* In comparison to prior years' legislation, the People's Republic of China has been removed from this list while Sudan has been added. The countries prohibited indirect funding by this Section are now the same countries listed in Section 507 of act prohibiting direct funding.

Notification on Excess Defense Equipment (Section 524)

* Prior to providing excess defense equipment (FDA) on a grant basis, DoD shall also notify the Committees on Appropriations to the same extent and under the same conditions as are other committees pursuant to Section 516(f), FAA.

* Before issuing a letter of offer (LOA) to sell EDA under the AECA, DoD shall notify the Committees on Appropriations in accordance with regular notification procedures if the articles are significant military equipment (SME) or are valued (original acquisition cost) at $7,000,000 or more, or if notification is required elsewhere in this Act for the use of appropriated funds for specific countries that would receive such FDA. The notification is to include the original acquisition cost for the articles.

* The presales notification of EDA that is SME or originally acquired at a cost $7,000,000 or more is new and now in general alignment with advance notification procedures for the grant transfer of EDA contained in Section 516 (f)(1), FAA.

Authorization Requirement (Section 525)

* Funds appropriated by this Act, except funds appropriated under Peace Corps and Trade and Development Agency, may be obligated and expended.

Prohibition on Bilateral Assistance to Terrorist Countries (Section 527)

* Funds appropriated for bilateral assistance under this Act and funds appropriated under such heading in a provision of law enacted prior to the enactment of this Act, shall not be made available to any country which the President determines:

* Grants sanctuary from prosecution to any individual or group which has committed an act of international terrorism, or

* Otherwise supports international terrorism.

* For determined national security or humanitarian reasons, the President may waive this prohibition. 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 to include justifications.

Prohibition on Assistance to Foreign Governments that Export Lethal Military Equipment to Countries Supporting International Terrorism (Section 544)

* None of the funds appropriated or otherwise made available by this Act shall be available to any government which provides lethal military equipment to a country the government of which the Secretary of State has determined is a terrorist government for the purposes of Section 6(j) of the Export Administration Act.

* This prohibition shall terminate twelve months after that government ceases to provide such military equipment.

* This Section applies with respect to lethal military equipment provided on contract entered into after 1 October 1997.

* This prohibition may be waived if the President determines that such assistance is important to the U.S. national interest. When exercised, the President shall submit to the appropriate congressional committees a report with respect to the furnishing the assistance to include a detailed explanation of the assistance to be provided, the estimated dollar value of the assistance, and an explanation of how the assistance furthers U.S. national interests.

War Crimes Tribunals Drawdown (Section 547)

* Authorizes the drawdown of commodities and services of up to $30,000,000 for the U.N. War Crimes Tribunal established with regard to the former Yugoslavia.

* Any funds made available for tribunals other than Yugoslavia or Rwanda shall be made available subject to regular notification procedures of the Committees on Appropriations.

Landmines (Section 548)

* Demining equipment made available to USAID and the Department of State and used in support of the clearance of landmines and unexploded ordnance for humanitarian purposes may be disposed of on a grant basis basis in foreign countries, subject to such terms and conditions as the President may prescribe.

* Section 1365(c) of the National Defense Authorization for Fiscal Year 1993, P.L. 102-484, 23 October 1992, is amended to extend the U.S. moratorium on the transfer of anti-personnel landmines from eleven years after 23 October 1992 to sixteen years after 23 October 1992 (year 2008).

Prohibition of Payment of Certain Expenses (Section 550)

* None of the funds appropriated or otherwise made available by this Act under the headings, inter alia, International Military Education and Training or Foreign Military Financing Program for Informational Program activities, or Economic Support Fund may be obligated or expended to pay for:

* Alcoholic beverages, or

* Entertainment expenses for activities that are substantially of a recreational character. Including entrance fees at sporting events and amusement parks.

Haiti Coast Guard (Section 554)

* The Government of Haiti shall be eligible to purchase defense articles and services under the AECA for the Coast Guard, subject to the regular notification procedures of the Committees on Appropriations.

Limitation on Assistance to Security Forces (Section 556)

* This is often referred to as the Leahy Amendment.

* None of the funds made available by this Act may be provided to any unit of the security forces of a country if the Secretary of State has credible evidence that such unit has committed gross violations of human rights, unless the Secretary determines and reports to the Committees on Appropriations that the government of such country is taking effective measures to bring the responsible members of the security forces unit to justice.

* If funds are withheld from any unit pursuant to this Section, the Secretary of State shall promptly inform the foreign government of the basis for such action and shall, to the maximum extent practicable, assist the government in taking effective measures to bring the responsible members of the security forces to justice.

Discrimination Against Minority Religious Faiths in the Russian Federation (Section 557)

* None of the funds appropriated under this Act may be made available for the Government of the Russian Federation, after 180 days from the date of enactment, unless the President determines and certifies in writing to the Committees on Appropriations and the Committee on Foreign Relations of the Senate that the Government of the Russian Federation has implemented no statute, executive order, regulation, or similar government action that would discriminate, or would have as its principal effect discrimination, against religious groups or religious communities in the Russian Federation in violation of accepted international agreements on human rights and religious freedoms to which the Russian Federation is a party.

Assistance for the Middle East (Section 558)

* Of the funds appropriated by this Act under the headings Economic Support Fund, Foreign Military Financing Program, International Military Education and Training, Peacekeeping, for refugees resettling in Israel under Migration and Refugee Assistance, and for assistance for Israel under Nonproliferation, Anti-Terrorism, Demining, and Related Programs, not more than a total of $5,141,150,000 may be available for Israel, Egypt, Jordan, Lebanon, the West Bank and Gaza, the Israel-Lebanon Monitoring Group, the Multinational Force and Observers, the Middle East Regional Democracy Fund, Middle East Regional Cooperation, and Middle East Multilateral Working Groups

* The use of prior year funds appropriated under such headings that were allocated for other recipients may not be used this fiscal year for funding programs listed above Middle East countries or programs.

* This limitation may be waived by the President if determined and certified to the Committees on Appropriations that it is important to U.S. national security to do so and any such additional funds shall only be provided through the regular notification procedures of the Committees on Appropriations.

* This ceiling for last fiscal year was $5,241,150,000, or a decrease of $100,000,000 for FY 2002.

Cambodia (Section 563)

* The Secretary of the Treasury should instruct U.S. executive directors of the international financial institutions to use the voice and vote of the U.S. to oppose loans to the Central Government of Cambodia, except loans to meet basic human needs.

* No funds appropriated by this Act may be made available for assistance for Cambodia unless the Secretary of State determines and reports to the Committees on Appropriations that Cambodia:

* Is making significant progress in resolving outstanding human rights cases, including the 1984 grenade attack against the Buddhist Liberal Democratic Party, and 1997 grenade attack against the Khmer Nation Party,

* Has held local elections that are deemed free and fair by international and local election monitors, and

* Is making significant progress in the protection, management, and conservation of the environment and natural resources, including in the promulgation and enforcement of laws and policies to protect forest resources.

* In the event the Secretary makes the required determination, assistance may be made available to Cambodia only through regular notification procedures to the Committees on Appropriations.

* Notwithstanding the above determination by the Secretary, funds appropriated by this Act may be made available for assistance for basic education and for assistance to the Government of Cambodia's Ministry of Women and Veteran's Affairs to combat human trafficking, subject to the regular notification procedures of the Committees on Appropriations.

* None of the funds appropriated or otherwise made available by this Act may be used to provide equipment, technical support, consulting services, or any other form of assistance to any tribunal established by the Government of Cambodia pursuant to a memorandum of understanding with the U.N. unless the President determines and certifies to Congress that the tribunal is capable of delivering justice for crimes against humanity and genocide in an impartial and credible manner.

Foreign Military Training Report (Section 564)

* The Secretaries of State and Defense shall jointly provide to Congress by 1 March 2002, a report on all military training provided to foreign military personnel (excluding sales and excluding training provided to military personnel of NATO countries) under programs administered by the Departments of Defense and State during FY 2001 and FY 2002, including those proposed for FY 2002.

* The report shall include, for each military training activity, the foreign policy justification and purpose for the training activity, the cost of the training activity, the number of students trained and their units of operation, and the training location.

* The report is also to include, with respect to U.S. personnel, the operational benefits derived from each such training activity and the U.S. military units involved in each activity.

* The report may include a classified annex if deemed necessary and appropriate.

* The report is to be submitted to the Committees on Appropriations, the Senate Foreign Relations Committee, and the House International Relations Committee.

Korea Peninsula Energy Development Organization (KEDO) (Section 565)

* Of the funds made available under Nonproliferation, Anti-Terrorism, Demining, and Related Programs, not to exceed $95,000,000 may be made available for KEDO only for the administrative expenses and heavy fuel oil costs associated with the agreed framework. This is an increase over the FY 2001 authorized amount of $55,000,000.

Colombia (Section 567)

* Funds appropriated by this Act or prior foreign operations appropriations acts may be made available for assistance for the Colombian Armed Forces as follows:

* Not more than sixty percent of such funds may be obligated after a determination by the Secretary of State and a certification to the appropriate committees that:

* The Commanding General of the Colombian Armed Forces is suspending those members, of whatever rank, who have been credibly alleged to have committed gross violations of human rights, including extra-judicial killings, or to have aided or abetted paramilitary groups,

* The Colombian Armed Forces are cooperating with civilian prosecutors and judicial authorities (including providing requested information, such as the identity of persons suspended from the Armed Forces and the nature and cause of the suspension, and access to witnesses and relevant military documents and other information), in prosecuting and punishing in civilian courts those members of the Colombian Armed Forces, of whatever rank, who been credibly alleged to have committed gross violations of human rights, including extra-judicial killings, or to have aided or abetted paramilitary groups,

* The Colombian Armed Forces are taking effective measures to sever links (including by denying access to military intelligence, vehicles, and other equipment or supplies, and ceasing other forms of active or tacit cooperation), at the command, battalion, and brigade levels, with paramilitary groups, and to execute outstanding orders for capture for members of such groups, and

* The balance of such funds may be obligated after 1 June 2002, if the Secretary determines and certifies to the appropriate committees that the Colombian Armed Forces are continuing to meet the aforementioned criteria.

Prohibition on Assistance to the Palestinian Broadcasting Corporation (Section 569)

* None of the funds appropriated or otherwise made available by this Act may be used to provide equipment, technical support, consulting services, or any other form of assistance to the Palestinian Broadcasting Corporation.

Iraq (Section 570)

* Funds appropriated under the heading Economic Support Fund may be made available for programs benefiting the Iraqi people and to support efforts to bring about a political transition in Iraq.

* Not more than fifteen percent of the funds (except for costs related to broadcasting activities) may be used for administrative and representational expenses, including expenditures for salaries, office rent and equipment.

* Not later than sixty days after enactment of this Act, the Secretary of State shall consult with the Committees on Appropriations regarding plans for the expenditure of funds under this Section.

* Funds made available under this Section are made available subject to the regular notification procedures of the Committees on Appropriations.

West Bank and Gaza Program (Section 571)

* For FY 2002, thirty days prior to the initial obligation of funds for the bilateral West Bank and Gaza Program, the Secretary of State shall certify to the appropriate committees of Congress that procedures have been established to assure the U.S. Comptroller General will have access to appropriate U.S. financial information in order to review the uses of U.S. assistance for the Program funding under the heading Economic Support Fund.

Indonesia (Section 572)

* Funds appropriated by this Act under the headings International Military Education and Training and Foreign Military Financing Program may be made available for assistance for Indonesian military personnel only if the President determines and submits a report to the appropriate congressional committees that the Government of Indonesia and the Indonesian Armed Forces are:

* Taking effective measures to bring to justice members of the armed forces and militia groups against whom there is credible evidence of human rights violations in East Timor and Indonesia,

* Taking effective measures to bring to justice members of the armed forces against whom there is credible evidence of aiding and abetting illegal militia groups in East Timor and Indonesia,

* Allowing displaced persons and refugees to return home to East Timor, including providing safe passage for refugees returning from West Timor and demonstrating a commitment to preventing incursions into East Timor by members of militia groups in West Timor,

* Demonstrating a commitment to accountability by cooperating with investigations and prosecutions of members of the armed forces and militia groups responsible for human rights violations in East Timor and Indonesia,

* Demonstrating a commitment to civilian control of the armed forces by reporting to civilian authorities audits of receipts and expenditures of the armed forces,

* Allowing U.N. and other international humanitarian organizations and representatives of recognized human rights organizations access to West Timor, Aceh, West Papua, and Maluka, and

* Releasing political detainees.

* Though not specifically legislated, the conference report allows for Expanded IMET assistance for Indonesian civilian officials.

Briefings on Potential Purchases of Defense Articles or Defense Services by Taiwan (Section 573)

* Not later than ninety days after enactment of this Act, and not later than every 120 days thereafter during FY 2002, the Department of State, in consultation with the Department of Defense, shall provide detailed briefings to the appropriate congressional committees (to include the Committees on Appropriations) on any discussions conducted between any executive branch agency and the Government of Taiwan during the preceding 120 days on any potential purchase of defense articles and services by Taiwan.

Restrictions on Assistance to Governments Destabilizing Sierra Leone (Section 574)

* None of the funds appropriated by this Act may be made available for assistance for the government of any country for which the Secretary of State determines there is credible evidence that such government has knowingly facilitated the safe passage of weapons or other equipment, directly or through intermediaries, within the previous six months to the Sierra Leone Revolutionary United Front (RUF), Liberian Security Forces, or any other group intent on destabilizing the democratically elected government of the Republic of Sierra Leone.

* None of the funds appropriated by this Act may be made available for assistance for the government of any country for which the Secretary of State determines there is credible evidence that such government has aided or abetted, within the previous six months, in the illicit distribution, transportation, or sale of diamonds mined in Sierra Leone

* HR 2722, Clean Diamond Trade Act, was introduced by numerous co-sponsors and passed by the House on 2 August 2001 and 28 November 2001, respectively. It remains outstanding for action within the Senate. It is to prohibit the import of rough or polished diamonds into the U.S. unless the exporting country has implemented a system of controls to include mining source and export/import identification documentation that meets the requirements of the U.N. Security Council Resolutions on trade in conflict diamonds. The purpose of the system is to ensure conflict diamonds from certain sub-Saharan Africa countries entering the world market place were not the source of financing undesired military activities, the overthrow of legitimate governments, subversion of regional peace and stability, and the cause of terrible human rights violations. The bill also authorizes the annual appropriation of $5,000,000 during fiscal years 2002 and 2003 to provide assistance to countries seeking to implement procedures to stop the trade in conflict diamonds.

Commercial Leasing of Defense Articles (Section 580)

* Subject to the regular notification procedures of the Committees on Appropriations, authorizes the use of FMFP funding 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 U.S. commercial suppliers, not including major defense equipment (MDE) (other than helicopters and other types of aircraft having possible civilian application), if the President determines 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 (FMS) under the AECA.

War Criminals (Section 581)

* None of the funds appropriated or otherwise made available by this Act may be made available for assistance to any country, entity, or municipality whose competent authorities have failed, as determined by the Secretary of State, to take necessary and significant steps to implement its international legal obligations to apprehend and transfer to the International Criminal Tribunal for the former Yugoslavia all persons in their territory who have been publicly indicted by the Tribunal and to otherwise cooperate with the Tribunal.

Funding for Serbia (Section 584)

* Funds appropriated by this Act may be made available for assistance for Serbia after 31 March 2002, if the President has made the determination and certification to the Committees on Appropriations that the Government of the Federal Republic of Yugoslavia is:

* Cooperating with the International Criminal Tribunal for the former Yugoslavia including access for investigators, the provision of documents, and the surrender and transfer of indictees or assistance in their apprehension,

* Taking steps that are consistent with the Dayton Accords to end Serbian financial, political, security and other support which has served to maintain separate Republika Srpska institutions, and

* Taking steps to implement policies that reflect a respect for minority rights and the rule of law, including the release of political prisoners from Serbian jails and prisons.

* This determination and certification requirement shall not apply to Montengreo, Kosovo, humanitarian assistance, or assistance to promote democracy in municipalities.

El Salvador Reconstruction and Central America Disaster Relief (Section 585)

* During FY 2002, not less than $100,000,000 shall be made available for rehabilitation and reconstruction assistance for El Salvador.

* From funds appropriated by this Act, not less than $65,000,000, of which not less than $25,000,000 shall be from under the heading Economic Support Fund, $25,000,000 should be from under the heading International Disaster Assistance, and not less than $15,000,000 shall be from the headings Child Survival and Health Programs Fund and Development Assistance.

* From funds appropriated under such headings in the foreign operations appropriations acts for FY 1999 and prior years, not to exceed $35,000,000.

* Also, during FY 2002, not less than $35,000,000 of the funds managed by USAID should be made available for mitigation of the drought and rural food shortages elsewhere in Central America.

Excess Defense Articles for Central and Southern European Countries and Certain Other Countries (Section 589)

* Notwithstanding Section 516(e), FAA, during each of the fiscal years 2002 and 2003, funds available to the DoD may be expended for packing, crating, handling, and transportation (PCH&T) of excess defense articles (EDA) transferred under the authority of Section 516, FAA, on a grant basis to the countries of Albania, Bulgaria, Croatia, Estonia, former Yugoslav Republic of Macedonia, Georgia, India, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova, Mongolia, Pakistan, Romania, Slovakia, Slovenia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.

* Final legislation did not include the Senate proposal regarding a report on the use of defense articles and services and financial assistance to Uzbekistan. However, the conference managers recognize and appreciate that Uzbekistan is providing logistical support and facilitates for the U.S. military and humanitarian operations in Afghanistan. But the managers are aware of Secretary of State reports of serious human rights violations by Uzbek security forces and require the Secretary of State to submit two reports.

* Not later than four months after enactment of this Act, and ten months thereafter, reports describing in detail (1) the defense articles and services, and financial assistance provided by the U.S. to Uzbekistan during the six-month period ending thirty days prior to the submission of the report. (2) The use during such period of such articles, services, and financial assistance provided by the U.S. to units of the Uzbek Ministry of National Security or Ministry of International Affairs.

* Section 105 of P.L. 104-164 is amended to allow DoD funds to be expended for PCH&T of grant EDA to be transferred to countries eligible to participate in the Partnership for Peace (PfP) and that are eligible for assistance under the Support for East European Democracy (SEED) Act of 1989, P.L. 101-179, 28 November 1989.

* The Congressional Budget Justification for Foreign Operation, FY 2002, lists the following countries requiring U.S. assistance under the authority of the SEED Act: Bosnia, Croatia, Kosovo, Former Yugoslav Republic of Macedonia, the former Republic of Yugoslavia, Albania, Bulgaria, and Romania.

An Act to Authorize the President to Exercise Waivers of Foreign Assistance Restrictions with Respect to Pakistan through September 30, 2003, and for Other Purposes, P.L. 107-57, 27 October 2001

* Enacted from S1465. Since no conference was held, no conference report was filed.

Exemptions and Waiver of Appropriations Act Prohibitions with Respect to Pakistan (Section 1)

* Any provision of the foreign operations appropriations act for FY 2002 or earlier fiscal years that prohibits direct assistance to a country whose duly elected head government was disposed by decree or military coup shall not apply to with respect to Pakistan.

* Not less than five days prior to obligation of funds for Pakistan, the President shall consult with the appropriate congressional committees.

* For FY 2002, refer to Section 508, P.L. 107-115, earlier in this article.

* The President is also authorized to waive any similar restrictions with regard to Pakistan during FY 2003, if determined and certified to the appropriate congressional committees that the waiver:

* Would facilitate the transition to democratic rule in Pakistan, and

* It is important to the U.S. efforts to respond to, deter, or prevent acts of international terrorism.

Increased Flexibility in the Exercise of Waiver Authority of MTCR and Export Administration Act Sanctions with Respect to Pakistan (Section 2)

* Any waiver under the authority of Section 7(e), AECA, and Section 11B(b)(5), EAA, regarding Missile Technology Control Regime (MTCR) sanctioned foreign persons (defined to include persons, companies, agencies, governments, etc.) in Pakistan prior to 1 January 2001 may be exercised:

* Only after consultation with the appropriate congressional committees, and

* Without regard to the notification periods set forth in the respective section authorizing the waiver. The AECA period is normally 45 working days and the EAA period is normally 20 working days.

* The MTCR articles, data, and technology controlled by the AECA are listed within Section 121.16 of the U.S. Munitions List (USML) which is located within Part 121 of the International Traffic in Arms Regulations, 22 CFR 120-130.

Exemption of Pakistan from Foreign Assistance Prohibitions Relating to Foreign Country Loan Defaults (Section 3)

* Section 620(q), FAA, regarding the sanctioning of countries that are more than six months in arrearage in payments for FAA-authorized loans shall not apply to Pakistan.

* Likewise, Section 512, P.L. 107-115, earlier in this article, "Brooke-Alexander Amendment" sanctions regarding no assistance to countries more than one year in arrearage in loan repayments shall not apply to Pakistan.

Modification of Notification Deadlines for Drawdowns and Transfer of Excess Defense Articles to Respond to, Deter, or Prevent Acts of International Terrorism (Section 4)

* Any special drawdown notification to Congress conducted under the authority of Section 506(a)(2)(i)(III), FAA, for the purpose of antiterrorism assistance, that the President determines to be important to U.S. efforts to respond to, deter, or prevent acts of international terrorism shall be made at least five days (vice the legislated fifteen days) in advance of the drawdown.

* Any grant EDA transfer advance notification to Congress conducted under the authority of Section 516(f)(l), FAA, for the transfer of significant military equipment (SME) or defense articles valued (original acquisition cost) at $7,000,000 or more, that the President determines to be important to U.S. efforts to respond to, deter, or prevent acts of international terrorism shall be made at least fifteen days (vice the legislated thirty days) in advance of the transfer.

Appropriate Congressional Committees Defined (Section 5)

* "Appropriate committees" for this Act is defined to mean 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.

Termination Date (Section 6)

* Except as otherwise provided in Section 1 (military coup exemption during fiscal years 2002 and 2003) and Section 3 (Brooke-Alexander Amendment exemption during FY 2002), the provisions of this Act shall terminate on 31 October 2003.

Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 2002, P.L. 107-77, 28 November 2001

* Enacted from HR 2500. The conference report is contained in House Report 107-278, printed in the Congressional Record on 9 November 2001.

Title IV - Department of State and Related Agency, Department of State, Administration of Foreign Affairs, Diplomatic and Consular Programs

* Appropriated $3,142, 277,000 for necessary expenses of the Department of State and the Foreign Service not otherwise provided for, to include, inter alia:

* No funds may be obligated or expended for processing licenses for the export of satellites of U.S.-origin (including commercial satellites and satellite components) to the People's Republic of China unless, at least fifteen days in advance, the Committees on Appropriations are notified of such action.

* Appropriated $487,735,000, to remain available until expended, for worldwide security upgrades.

Protection of Foreign Missions and Officials

* Appropriated $9,400,000, to remain available until 30 September 2003, to provide for extraordinary protective services, as authorized.

Embassy Security, Construction, and Maintenance

* Appropriated $458,000,000, to remain available until expended, for necessary expenses for carrying out the Foreign Service Buildings Act of 1926, preserving, maintaining, repairing, and planning for buildings that are owned or directly leased by the Department of State, renovating, in addition to funds otherwise available, the Harry S. Truman Building, and carrying out the Diplomatic Security Construction Program as authorized.

* Appropriated $815,960,000, to remain available until expended, for costs of worldwide security upgrades, acquisition, and construction as authorized.

Payment to the American Institute in Taiwan

* Appropriated $17,044,000 for necessary expenses to carry out the Taiwan Relations Act, P.L. 96-8.

Contributions to International Organizations

* Appropriated $850,000,000 for expenses, not otherwise provided for, necessary to meet annual obligations of membership in international multilateral organizations.

* Any payment of arrearages under this title shall be directed toward special activities that are mutually agreed upon by the U.S. and the international organization.

* $100,000,000 may be made available only pursuant to a certification by the Secretary of State that the U.N. has taken no action in calendar year 2001 prior to the date of enactment of this Act to increase funding for any U.N. program without identifying an offsetting decrease elsewhere in the U.N. budget and cause the U.N. to exceed the budget for the biennium 2000-2001 of $2,535,700,000.

* Funds appropriated under this heading may be obligated and expended to pay the full U.S. assessment to the civil budget of NATO.

Contributions for International Peacekeeping Activities

* Appropriated $844,139,000, of which fifteen percent shall remain available until 30 September 2003, for necessary expenses to pay assessed and other expenses of international peacekeeping activities.

* None of the funds made available by this Act shall be obligated or expended for any new or expanded U.N. peacekeeping missions unless, at least fifteen days in advance of voting for the new or expanded mission in the U.N. Security Council (or in an emergency, as far in advance as practicable) until:

* The Committees on Appropriations and other appropriate committees are notified of the estimated cost and length of the mission, the vital national interest that will be served, and the planned exit strategy, and

* A reprogramming of funds plan is submitted.

* Funds shall be available for peacekeeping expenses only upon a certification by the Secretary of State to the appropriate committees that American manufacturers and suppliers are being given opportunities to provide equipment, services, and material for U.N. peacekeeping activities equal to those being given to foreign manufacturers and suppliers.

National Defense Authorization Act for FY 2002, P.L. 107-107, 28 December 2001

* Enacted from S1438. The conference report is contained in House Report 107-333, printed in the Congressional Record on 12 December 2001.

Operations and Maintenance Funding (Section 301)

* Funds are authorized to be appropriated for, inter alia:

* (a)(19) - For Overseas Humanitarian, Disaster, and Civic Aid programs -- $49,700,00

* (a)(23) - For Cooperative Threat Reduction programs -- $403,000,000

Defense Language Institute Foreign Language Center Expanded Arabic Language Program (Section 306)

* Of the amount of Operations and Maintenance authorized to be appropriated for the Army, $650,000 may be available the Defense Language Institute Foreign Language Center for an expanded Arabic language program.

Foreign Students Attending the Service Academies (Section 533)

* Amends 10 United States Code (USC) 4344(a)(1) [for the USMA], 10 USC 6957(a)(1) [for the USNA], and 10 USC 9344(a)(1) [for the USAFA] to allow the service secretaries to have up to sixty (vice forty) persons at any one time from foreign countries to receive instruction at each service academy. A replacement paragraph regarding the waiving of reimbursement to attend the academy is also inserted: "(b)(3) The Secretary of Defense may waive, in whole or in part, the requirement for reimbursement of the cost of instruction for a cadet [midshipman] under paragraph (2). In the case of a partial waiver, the Secretary shall establish the amount waived." This amendment is not to apply to any person who entered the academy to receive instruction before the date of enactment of this Act.

Authority to Transfer Naval Vessels to Certain Foreign Countries (Section 1011)

* The President is authorized to transfer the following thirteen ships to the respective countries:

* Transfer as grant EDA in accordance with Section 516, FAA:

* Ex-USS Wadsworth (FFG-9) to Poland.

* Ex-USS Capodanno (FF-1093), Ex-USS Thomas C. Hart (FF-1092), Ex-USS Donald B. Beary (FF-1085), Ex-USS McCandless (FF-1084), Ex-USS Reasoner (FF-1063), and Ex-USS Bowen (FF-1079) to Turkey.

* Transfer through FMS in accordance with Section 21, AECA:

* Ex-USS Kidd (DDG-993), ex-USS Callaghan (DDG-994), ex-USS Scott (DDG-995), and ex-USS Chandler (DDG-996) to the Taipei Economic and Cultural Representative Office in the U.S. (Taiwan).

* Ex-USS Estocin (FFG-15) and ex-USS Samuel Eliot Morison (FFG-13) to Turkey.

* The value of the grant transfers are not to be counted towards the Section 516(g)(l), FAA, annual transfer ceiling value of $425,000,000.

* Any expenses incurred by the U.S. in connection with the grant transfers are to be charged to the recipient country.

* The President may waive reimbursement of charges for the lease of up to one year in accordance with Section 61, AECA, for any grant transfers authorized by this Section to Turkey.

* To the maximum extent practicable, as a condition of ships transferred under this Section, any repair or refurbishment of the ships before joining the naval forces of the recipient country, shall be performed at a shipyard located in the U.S., including a U.S. Navy shipyard.

* The authority to transfer any ship under this Section shall expire at the end of the two-year period beginning on the date of enactment of this Act.

Extension and Restatement of Authority to Provide Department of Defense Support for Counter-drug Activities of Other Governmental Agencies (Section 1021)

* Amends Section 1004 of the National Defense Authorization Act for Fiscal Year 1991, P.L. 101-510, 5 November 1990.

* During fiscal years 2002 through 2006, the Secretary of Defense may provide support for the counter-drug activities of any other department or agency of the Federal Government or any State, local, or foreign law enforcement agency for the following purposes:

* The maintenance and repair of equipment that has been made available to any department or agency of the Federal Government or to any State or local government by DoD for the purposes of preserving the potential future utility of such equipment for the DoD and upgrading such equipment to ensure compatibility of that equipment with other equipment used by the DoD.

* The maintenance, repair, or upgrade of equipment (including computer software, other than the above equipment for the purpose of ensuring that the equipment being maintained or repaired is compatible with equipment used by the DoD and upgrading such equipment to ensure the compatibility of that equipment with equipment used by the DoD.

* The transportation of U.S. and foreign country personnel (including per diem expenses associated with such transportation), and the transportation of supplies and equipment, for the purpose of facilitating counter-drug activities within or outside the U.S.

* The establishment (including an unspecified minor military construction project) and operation of bases of operations or training facilities for the purpose of facilitating counter-drug activities of the DoD or any Federal, State, or local law enforcement agency within or outside the U.S. or counter-drug activities of a foreign law enforcement agency outside the U.S.

* The minor construction is intended for the modification or repair of a DoD facility and has an estimated cost of more than $500,000.

* When the decision is made to carry out this construction project, the Secretary of Defense shall submit a written notice of the decision to the congressional defense committees, including the justification for the project and the estimated cost. The project may be commenced only after the end of the 21-day period beginning on the date on which the written notice is received by Congress.

* Counter-drug related training of law enforcement personnel of the Federal Government, of State and local governments, and of foreign countries, including associated support expenses for trainees and the provision of materials necessary to carry out such training.

* The detection, monitoring, and communication of the movement of air and sea traffic within 25 miles of and outside the geographic boundaries of the U.S. and surface traffic outside the geographic boundary of the U.S. and within the U.S. not to exceed 25 miles of the boundary if the initial detection occurred outside of the boundary.

* Construction of roads and fences and installation of lighting to block drug smuggling corridors across international boundaries of the U.S.

* Establishment of command, control, communications, and computer networks for improved integration of law enforcement, active military, and National Guard activities.

* The provision of linguist and intelligence analysis services.

* Aerial and ground reconnaissance.

* This support to be provided by DoD is to be requested by:

* The official who has responsibility for the counter-drug activities of the department or agency of the Federal Government, in the case of support for other departments or agencies of the Federal Government,

* The appropriate official of a State or local government, in the case of support for State or local law enforcement agencies, or

* An appropriate official of a department or agency of the Federal Government that has counter-drug responsibilities, in the case of support for foreign law enforcement agencies.

* The Secretary of Defense may not limit the requirements for support may be provided only to critical, emergent, or unanticipated requirements.

* The Secretary of Defense may acquire services or equipment by contract for support provided if the DoD would normally acquire such services or equipment by contract for the purpose of conducting a similar activity for the DoD.

* The Secretary of Defense may provide support pursuant to this Section in any case the Secretary determines that provision of such support would adversely affect the military preparedness of the U.S. in the short term if the Secretary determines that the importance of providing support outweighs such short-term adverse effect.

Extension of Reporting Requirement Regarding Department of Defense Expenditures to Support Foreign Counter-Drug Activities (Section 1022)

* Section 1022 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001, P.L. 106-398, 30 October 2000, is amended by requiring a report by 15 April 2001 from the Secretary of Defense to the congressional defense committees detailing the expenditure of funds by the Secretary during the preceding fiscal year [in this case, FY 2001] in direct or indirect support of the counter-drug activities of foreign governments.

Acquisition of Logistical Support for Security Forces (Section 1211)

* Section 5 of the Multinational Force and Observers (MFO) Participation Resolution, 22 USC 3424, is amended with an added new subsection (d)(1) "the U.S. may use contractors to provide logistical support to the Multinational Force and Observers under this Section in lieu of providing such support through a logistical support unit comprised of members of the U.S. Armed Forces." A new subsection (d)(2) is also added, "Notwithstanding subsections (a) and (b) and section 7(b), support by a contractor under this subsection may be provided without reimbursement whenever the President determines that such action enhances or supports the national security interests of the U.S."

Extension of Authority for International Cooperative Research and Development Projects (Section 1212)

* Amends 10 USC 2350a extending authority to engage in cooperative research and development projects with any other friendly foreign country. Prior to this change, authority only existed to engage in such projects with NATO, NATO organizations, NATO countries, and major non-NATO allies.

* Additionally, a memorandum of agreement (MOU) (other formal agreement) with any other friendly foreign country to engage in such a project may go into effect only after the Secretary of Defense submits to the Committees on Armed Services and on Foreign Relations of the Senate and to the Committees on Armed Services and on International Relations of the House a report with respect to the proposed MOU and a period of thirty days has passed after the report has been submitted.

* Not later than 1 January of each year, the Secretary of Defense shall submit a report to Congress specifying the countries that are eligible to participate in a cooperative project agreement under this new Section and the criteria used to determine the eligibility of such countries.

Cooperative Agreements with Foreign Countries and International Organizations for Reciprocal Use of Test Facilities (Section 1213)

* Amends 10 USC 2350 with a new Section 23501 allowing the Secretary of Defense, with the concurrence of the Secretary of State, to enter into a memorandum of understanding with a foreign country or international organization to provide for the testing, on a reciprocal basis, of defense equipment by the U.S. using test facilities of that country or organization and by that country or organization using test facilities of the U.S. The MOU is to provide for charging the user party direct and indirect costs incurred by the providing facility in furnishing test and evaluation services. The new section provides specific definitions and procedures for determining these costs.

Report on Significant Sales and Transfer of Military Hardware, Expertise, and Technology to the People's Republic of China (PRC) (Section 1221)

* Section 1202 of the National Defense Authorization Act for Fiscal Year 2000, P.L. 106-65, 5 October 1999, is amended by adding a new subsection 1202(d). The required annual report submitted by the Secretary of Defense not later than 1 March 2002 shall include a separate section describing any significant sale or transfer of military hardware, expertise, and technology to the PRC. This report is to include the history of such sales and transfers since 1995, forecast possible future sales and transfers, and address the implications of those sales and transfers for the security of the U.S. and its friends and allies in Asia. The new subsection provides detailed requirements for analysis and forecasts to be included in the report.

Report by Comptroller General on Provision of Defense Articles, Services, and Military Education and Training to Foreign Countries and International Organizations (Section 1223)

* The Comptroller General shall conduct a study to include the following:

* The benefits derived by each country or international organization from the receipt of defense articles, services, and training provided after 31 December 1989, pursuant to the drawdown of such articles, services and training from DoD stocks under Sections 506 (special drawdowns), 516 (grant transfer of excess defense articles), or Section 552 (emergency peacekeeping drawdowns), FAA, or any other provision of law.

* Any benefits derived the U.S. from the provision of defense articles, services, and training pursuant to the drawdowns and grant EDA transfers.

* The effect on readiness of the [U.S.] Armed Forces as a result of the drawdowns and grant EDA transfers.

* The cost to the DoD with respect the provision of the drawdowns and grant EDA transfers.

* An interim report is to be provided to Congress not later than 15 April 2002, with the final report being submitted not later than 1 August 2002.

Cooperative Threat Reduction with States of the Former Soviet Union (Sections 1301 through 1309)

* Also referred to as The Nunn-Lugar Fund.

* Authorizes $403,000,000 to be appropriated to the DoD for FY 2002 Cooperative Threat Reduction (CTR) Programs, to be available for obligation for three fiscal years, of not more than the following amounts may be obligated for the purposes specified:

* Strategic offensive arms elimination in Russia -- $133,405,000;

* Strategic nuclear arms elimination in Ukraine -- $51,500,000;

* Nuclear weapons transportation security in Russia -- $9,500,000;

* Nuclear weapons storage security in Russia -- $56,000,000;

* Biological weapons proliferation prevention activities in the former Soviet Union -- $17,000,000;

* Activities designated as Other Assessments/Administrative Support -- $13,221,000;

* Defense and military contracts -- $18,650,000;

* Chemical weapons destruction in Russia -- $50,000,000;

* Weapons of mass destruction infrastructure elimination activities in Kazakhstan -- $6,000,000;

* Weapons of mass destruction infrastructure elimination activities in Ukraine -- $6,024,000; and

* Activities to assist Russia in the elimination of plutonium production reactors -- $41,700,000.

* Not more than fifty percent of the FY 2002 CTR funds may be obligated or expended until thirty days after the submission of:

* The report required to be submitted in FY 2001 under Section 1308(a) of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001, P.L. 10-398, 30 October 2000.

* The multi-year plan required to be submitted for FY 2001 under Section 1308(h) of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001, P.L. 10-398, 30 October 2000.

Department of Defense and Emergency Supplemental Appropriations for Recovery from and Response to Terrorist Attacks on the United States Act, 2002, P.L. 107-117, 10 January 2002

* Enacted from HR 3338. The conference report is contained in House Report 107-350, printed in the Congressional Record on 19 December 2001.

* Division A is the traditional Department of Defense Appropriations Act, 2002. Division B is entitled, Emergency Supplemental Act, 2002. Along with the first two Divisions, Division C entitled, Spending Limits and Budgetary Allocations for Fiscal Year 2002, and Division D entitled, Miscellaneous Provisions, are also included within P.L. 107-117.

* In response to the 9 September 2001 terrorist attacks, HR 2888 was legislated and enacted as the 2001 Emergency Supplemental Appropriations Act for Recovery from and Response to Terrorist Attacks on the United States, P.L. 107-38, 18 September 2001. It appropriated $40,000,000,000, to remain available until expended, to provide assistance to the victims of the attacks, and to deal with other consequences of the attacks.

* $10,000,000,000 shall not be available for transfer until 15 days after the Director of the Office of Management and Budget has submitted to the Committees on Appropriations a proposed allocation and plan for use of the funds.

* $20,000,000,000 may be obligated only when enacted in a subsequent emergency appropriations bill.

* Not less than one-half of the $40,000,000,000 shall be for disaster recovery activities and assistance related to the terrorist acts in New York, Virginia, and Pennsylvania on 11 September 2001.

Division A - Department of Defense Appropriations, 2002

Title II

Operation and Maintenance, Defense-Wide

* Appropriated an amount not to exceed $25,000,000 for the CINC initiative fund account.

* Appropriated $1,000,000 available only for continuation of the Middle East Regional Security Issues program.

Overseas Humanitarian, Disaster, and Civic Aid

* Appropriated $49,700,000, to remain available until 30 September 2003, for expenses relating to the Overseas Humanitarian, Disaster, and Civic Aid programs.

* While not legislated, the conferees agree to provide $5,000,000 to be available if matched by private funds, only for the acquisition, transportation, and distribution of wheelchairs to victims of overseas conflicts, landmines, and other disturbances. The Secretary of Defense should work with appropriate non-government organizations, such as the Wheelchair Foundation, to implement this initiative on a matching basis with private resources. The confrees expect special attention and emphasis to be made to respond to the need and circumstances in Afghanistan as rapidly as possible.

Title VI

Defense Health Program

* Appropriated $14,000,000 available for HIV prevention educational activities undertaken in connection with U.S. military training, exercises, and humanitarian assistance activities conducted in African nations.

Title VIII, General Provisions-Department of Defense

* Section 8002 states that during FY 2002, provisions of prohibiting the payment of compensation to, or employment of, any person not a citizen of the U.S. shall not apply to personnel of the DoD.

* Salary increases granted to direct or indirect hire foreign national DoD employees funded by this Act shall not be at a rate in excess of the percentage increase authorized by law for DoD civilians whose pay is computed under the provisions 5 USC 5332, or at a rate in excess of the percentage increase provided by the appropriate host nation to its own employees, whichever is higher.

* This does not apply to DoD foreign service national employees serving at U.S. diplomatic missions whose pay is set by the Department of State under the Foreign Service Act of 1980.

* This does not apply to foreign national employees of the DoD in the Republic of Turkey.

* Section 8009 authorizes the use of funds appropriated with Title II of this Act to be obligated for humanitarian and civic assistance costs pursuant to 10 USC 401 and these obligations are to be reported to Congress as of 30 September of each year.

* These funds shall be available for providing humanitarian and similar assistance by using Civic Action Teams in the Trust Territories of the Pacific Islands (TTPI) and freely associated states of Micronesia pursuant to the Compact of Free Association as authorized by P.L. 99-239.

* Upon determination by the Secretary of the Army that such action is beneficial for graduate medical education programs conducted by the Army medical facilities located in Hawaii, the Secretary may authorize the provision of medical services at such facilities and transportation to the facilities on a nonreimbursable basis for civilian patients from American Samoa, the Commonwealth of the Northern Mariana Islands, the Marshall Islands, the Federated States of Micronesia, Palau, and Guam.

* Section 8030 authorizes the DoD during FY 2002 to incur obligations not to exceed $350,000,000 for purposes specified in 10 USC 2350(j), only in anticipation of receipt of contributions only from the Government of Kuwait.

* Upon receipt of such contributions from Kuwait, the funding shall be credited to the appropriations or fund which incurred such obligations.

* Section 8056 states that none of the funds appropriated or otherwise made available by this Act may be obligated or expended for assistance to the Democratic People's Republic of North Korea unless specifically appropriated for that purpose.

* Section 8072 states that none of the funds available for DoD for FY 2002 may be obligated or expended to transfer defense articles or services (other than intelligence services) to another nation or international organization for certain specified activities unless the Committees on Defense, International Relations, and Foreign Relations are notified fifteen days in advance of such transfer.

* The specified activities include any international peacekeeping or peace-enforcement, or humanitarian assistance operation.

* The notification to Congress is to include a description of articles or services to be transferred and a statement of value. In the case of articles to be transferred, a statement whether the inventory requirements of all elements of the Armed Forces, including the reserve components, for the type of articles have been met; and whether the items proposed to be transferred will have to be replaced and, if so, how the President proposes to provide funds for such replacement.

* Section 8073 authorizes the Secretary of Defense to issue loan guarantees of up to $15,000,000,000 in support of U.S. defense exports not otherwise provided for. The exposure fees charged and collected for each guarantee shall be paid for by the country involved and shall not be financed as part of a loan guaranteed by the U.S.

* Section 1321, Defense Authorization Act, Fiscal Year 1996, P.L. 104-106, 10 February 1996, first authorized this program as the Defense Export Loan Guarantee (DELG) Program.

* Section 8081 authorizes the Secretary of Defense to waive, during FY 2002, the reimbursement of the cost of conferences, seminars, courses of instruction, or similar educational activities of the Asia-Pacific Center for Security Studies for military officers and civilian officials of foreign nations if the Secretary determines that attendance by such personnel, without reimbursement, is in the U.S. national security interest. Any waived costs shall be paid from appropriations available for the Center.

* Section 8088 states that none of the funds made available by this Act may be used to approve or license the sale of the F-22 advanced tactical fighter to any foreign country.

* Section 8089 allows the Secretary of Defense, on a case-by-case basis, to waive with respect to a foreign country each limitation on the procurement of defense items from foreign sources provided in law if the Secretary determines that the application of the limitation with respect to that country would invalidate cooperative programs entered into between the DoD and the foreign country, or would invalidate reciprocal trade agreements for the procurement of defense items entered into under 10 USC 2531, and the country does not discriminate against the or similar defense items produced in the U.S. for that country.

* This is to apply to contracts and subcontracts entered into on or after the date of the enactment of this Act.

* Options for the procurement of items that are exercised after such date under contracts that are entered into before such date if the option prices are adjusted for any reason other than the application of a waiver granted under this Section.

* Section 8093 states that none of the funds made available by this Act may be used to support any training program involving a unit of the security forces of a foreign country if the Secretary of Defense has received credible information from the Department of State that the unit has committed a gross violation of human rights, unless all corrective steps have been taken.

* The Secretary of Defense, in consultation with the Secretary of State, shall ensure that prior to a decision to conduct any training program involving a security forces unit, full consideration is given to all credible information available to the Department of State relating to human rights violations by foreign security forces.

* The Secretary of Defense, after consultation with the Secretary of State, may waive this prohibition if he determines that such a waiver is required by extraordinary circumstances. Not more than fifteen days after the exercising of such a waiver, the Secretary shall submit a report to the congressional defense committees describing the extraordinary circumstances, the purpose and duration of the training program, the U.S. forces and foreign security forces involved, in the program, and the information relating to the human rights violations that necessitates the waiver.

* Section 8109 states that, during FY 2002, under regulations prescribed by the Secretary of Defense, the Center of Excellence for Disaster Management and Humanitarian Assistance may also pay, or authorize payment for, the expenses of providing or facilitating education and training for appropriate military and civilian personnel of foreign countries in disaster management, peace operations, and humanitarian assistance.

* Section 8112 directs that $131,700,000 of the funds appropriated under the heading Research, Development, Test and Evaluation, Defense-Wide be made available for the Arrow missile defense program. Of this amount, $97,700,000 shall be made available for the purpose of continuing the Arrow System Improvement Program (ASIP), continuing ballistic missile defense interoperability with Israel, and establishing an Arrow production capability in the U.S. The remaining $34,000,000 shall be available for the purpose of adjusting the cost-sharing of the parties under the agreement between the DoD and the Ministry of Defense for Israel for the Arrow Deployability Program.

* Section 8171 requires, not later than 180 days after enactment of this Act, the Secretary of Defense, in cooperation with the Secretaries of State and Energy, submit a report to Congress describing the steps that have been taken to develop cooperative threat reduction programs with India and Pakistan. The report is to include recommendations for changes in any provisions of existing law that is currently an impediment to the full establishment of such programs, a timetable for implementation of such programs, and an estimated five-year budget that will be required to fully fund such programs.

Title IX, Counter-Terrorism and Defense Against Weapons of Mass Destruction Former Soviet Union Threat Reduction

* Appropriates $403,000,000 to support the Cooperative Threat Reduction (CTR) program, to remain available until 30 September 2004. $12,750,000 of this funding shall be available only to support the dismantling and disposal of nuclear submarines and submarine reactor components in the Russian Far East.

Division B -- Emergency Supplemental Act, 2002

Chapter 3, Department of Defense -- Military, Operations and Maintenance

Defense Emergency Response Fund

* Unobligated balances under the heading Former Soviet Union Threat Reduction, $30,000,000 shall be transferred to Department of State, Nonproliferation, Anti-Terrorist, Demining, and Related Programs only for the purpose of supporting expansion of the Biological Weapons Redirect and International Science and Technology Centers programs, to prevent former Soviet biological weapons experts from emigrating to proliferant states and to reconfigure former Soviet biological weapons production facilities for peaceful uses.

General Provisions -- This Chapter

* Section 304 states of the amounts appropriated by P.L. 107-38 which remained available in the Defense Emergency Response Fund on 18 December 2001, an amount not to exceed $100,000,000 may be available for payments to Pakistan and Jordan for logistical and military support provided, or to be provided, to the U.S. military operations in connection with Operation Enduring Freedom.

Chapter 6, Bilateral Economic Assistance, Funds Appropriated to the President, USAID International Disaster Assistance

* Of the amounts appropriated by P.L. 107-38, $50,000,000, to remain available until expended, for International Disaster Assistance to be obligated for humanitarian and reconstruction activities in Afghanistan.

Conclusion

This year's article includes the description and analysis of six separate pieces of enacted security assistance related legislation. The Administration's request for FY 2002 security assistance funding was generally met, especially with a twenty percent growth in IMET funding. Of note, was the increased flexibility provided by legislation for the President in using security assistance and other aid programs to combat international terrorism. The 10 January 2002 enactment of the final appropriations acts precludes this article from including country and other program allocations conducted by the Secretary of State; therefore, initial allocations for the fiscal year will be the subject of an article in the next edition of the DISAM Journal.

The obvious focus for U.S. assistance overseas remains in Eastern Europe, the Middle East, and now Southwest Asia. Many waiver authorities with accompanying congressional notifications are provided to the President especially in the areas of FAA-authorized special drawdowns and the transfer of excess defense articles (EDA) in support of the war on terrorism. These authorities are further extended into the waiving of mandatory sanctions. The number and variety of countries now eligible during FY 2002 and FY 2003 for DoD-funded transportation of grant EDA have also expanded. From another perspective, the massive grant transfer of DoD equipment is now being examined for military and political effectiveness and cost to the DoD both in dollars and readiness.

While the war on terrorism has primarily taken place to the north in Afghanistan, the focus of U.S. foreign policy has broadened to include the subcontinent. A report is required to determine the need and required five-year budget for establishing a Pakistan-India cooperative threat reduction program similar to the nuclear nonproliferation program for the former Soviet Union (FSU) established by the Nunn-Lugar Amendment within the FY 1991 National Defense Authorization Act.

As earlier demonstrated during Operation Desert Storm and reinforced now during Operation Enduring Freedom, security assistance and other aid programs remain essential for the successful conduct of both U.S. foreign policy and military operations.

Acknowledgements

The efforts and valued support of others aided in the preparation of this article. The legislation summaries produced by the Defense Security Cooperation Agency (DSCA), and the review of the manuscript by our DSCA colleagues, Brian Knapp, Neil Hedlund, Jane Amesse and Char King were particularly helpful and very much appreciated. Finally, I am extremely grateful for the valuable editing suggestions provided by DISAM's Gregory Sutton, LT Dana Clay, and Patti Vocke.

Fiscal Year 2002 Security Assistance Funding

Program    FY2001    Administration    House     Senate      Final

FMFP     $3,568.13M     $3,674.0M    $3,627.0M  $3,674.0M  $3,650.0M
IMET         57.75M         65.0M        65.0M      75.0M      70.0M
PKO         126.72M        150.0M       135.0M     140.0M     135.0M
ESF       2,314.90M      2,289.0M     2,199.0M   2,239.5M   2,199.0M
Total    $6,067.50M     $6,178.0M    $6,026.0M  $6,128.5M  $6,054.0M
Title III, Military Assistance, Foreign Military Financing Program
(FMFP)

Program  FY2001   Administration  House    Senate   Final

FMFP     $3,568M  $3,674M         $3,627M  $3,674M  $3,650M
Title III, Military Assistance, International Military Education and
Training (IMET)

Program  FY2001   Administration  House  Senate  Final

IMET     $57.75M  $65M            $65M   $75M    $70M
Title III, Military Assistance, Peacekeeping (PKO)

Program  FY2001   Administration  House  Senate  Final

PKO      $126.7M  $150M           $135M  $140M   $135M
Title II, Other Bilateral Economic Assistance, Economic Support Fund
(ESF)

Program  FY2001   Administration  House    Senate     Final

ESF      $2,315M  $2,289M         $2,199M  $2,239.5M  $2,199M

About the Author

Kenneth W. Martin has been at DISAM for over thirteen years as an associate professor for the management of security assistance. His duties include legislation and policy functional manager and the managing editor for the annually republished DISAM "green textbook," The Management of Security Assistance. Martin is a retired U.S. Navy surface warfare officer. He received his undergraduate degree in the field of economics from the Illinois Institute of Technology and his masters degree in administration from Central Michigan University.

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