(A) the percentage of the recipient or purchasing country's budget which is devoted to military purposes; and

(B) the degree to which the recipient or purchasing country is using its foreign exchange or other 621 resources to acquire military equipment.

(C) 621

*

*

[Repealed-1981]

(2) The President shall report annually to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate his actions in carrying out this provision.

(t) 622 No assistance shall be furnished under this or any other Act and no sales shall be made under the Agricultural Trade Development and Assistance Act of 1954,623 in or to any country which has severed or hereafter severs diplomatic relations with the United States or with which the United States has severed or hereafter severs diplomatic relations, unless (1) diplomatic relations have been resumed with such country and (2) agreements for the furnishing of such assistance or the making of such sales, as the case may be, have been negotiated and entered into after the resumption of diplomatic relations with such country.

(u) 622 In any decision to provide or continue to provide any program of assistance to any country under the Foreign Assistance Act of 1961, as amended, there shall be taken into account the status of the country with respect to its dues, assessments, and other obligations to the United Nations; and where such country is delinquent with respect to any such obligations for the purposes of the first sentence of Article 19 of the United Nations Charter, the President shall furnish the Committee on Foreign Relations of the Senate and the Speaker of the House of Representatives a report setting forth the assurance given by the government of the country concerned of paying all of its arrearages and of placing its payments of such obligations on a current basis, or a full explanation of the unusual or exceptional circumstances which render it economically incapable of giving such assurance. (v) 624 * (w) 625 *

* *

[Repealed-1974] **[Repealed-1978]

(x) 626, 627 (1) All military assistance, all sales of defense articles and services (whether for cash or by credit, guaranty, or any other

621 Sec. 734(b) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1560) added the words "or other" in subpar. (B) and repealed subpar. (C). Subpar. (C) formerly read as follows:

"(C) the amount spent by the recipient or purchasing country for the purchase of sophisticated weapons systems, such as missile systems and jet aircraft for military purposes, from any country.

622 Subsecs. (t) and (u) were added by sec. 301(f)(4) of the FA Act of 1967.

623 For text, see page 843.

624 Subsec. (v) which was added by sec. 301 of the FA Act of 1971 was repealed by sec. 24 of the FA Act of 1974. Former subsec. (v) concerned assistance to Greece.

625 Subsec. (w), which had been added by the FA Act of 1971 and had concerned a suspension of aid to Pakistan, was repealed by sec. 502(d)(1) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 959).

626 22 U.S.C. 2370. Subsec. (x) was added by sec. 22 of the FA Act of 1974.

627 Sec. 13(a) of the International Security Assistance Act of 1978 (Public Law 95-384; 92 Stat. 737) specified that subsec. (x) would be of no further force and effect once the President had determined and certified to the Congress that resumption of aid to Turkey was in the national interest as well as in the interest of NATO and that Turkey was acting in good faith toward achieving a peaceful settlement of the Cyprus problem. The President made such a determination, dated Sept. 26, 1978. See page 441 for full text of sec. 13(a).

means), and all licenses with respect to the transportation of arms, ammunitions, and implements of war (including technical data relating thereto) to the Government of Turkey, shall be suspended on the date of enactment of this subsection unless and until the President determines and certifies to the Congress that the Government of Turkey is in compliance with the Foreign Assistance Act of 1961, the Foreign Military Sales Act,628 and any agreement entered into under such Acts, and that substantial progress toward agreement has been made regarding military forces in Cyprus: Provided, That for the fiscal year 1978 629 the President may suspend the provisions of this subsection and of section 3(c) of the Arms Export Control Act 630 with respect to cash sales and extensions of credits and guaranties under such Act for the procurement of such defense articles and defense services as the President determines are necessary to enable Turkey to fulfill her defense responsibilities as a member of the North Atlantic Treaty Organization, except that during the fiscal year 1978 631 the total value of defense articles and defense services sold to Turkey under such Act, either for cash or financed by credits and guaranties, shall not exceed $175,000,000.632 Any such suspension shall be effective only so long as Turkey observes the cease-fire on Cyprus, does not increase its military forces or its civilian population on Cyprus, and does not transfer to Cyprus any United States supplied arms, ammunition, or implements of war. The determination required by the proviso in the first sentence of this paragraph shall be made, on a case-bycase basis, with respect to each cash sale, each approval for use of credits, and each approval for use of a guaranty for Turkey. Each such determination shall be reported to the Congress and shall be accompanied by a full and complete statement of the reasons supporting the President's determination and a statement containing the information specified in clauses (A) through (D) of section 2(c)(4) of the Act of October 6, 1975 (Public Law 94-104).633 In any case involving the sale of significant combat equipment on the United States Munitions List in which the congressional review provisions of section 36(b) of the Arms Export Control Act 634 do not apply, the President may not issue the letter of offer or approve the use of the credits or guaranty, as the case may be, until the end of the thirty-day period beginning on the date on which the

628 Renamed the Arms Export Control Act.

629 Sec. 22(d)(1) of the International Security Assistance Act of 1977 (Public Law 95-92; 91 Stat. 624) struck out the references to fiscal years 1976 and 1977 and added the references to fiscal year 1978.

630 For text, see page 249.

631 Sec. 22(d)(2) of the International Security Assistance Act of 1977 (Public Law 95-92; 91 Stat. 624) added the words "during the fiscal year 1978", and struck out the following that had previously appeared at this point:

"(A) during the fiscal year 1976 and the period beginning July 1, 1976, and ending September 30, 1976, the total value of defense articles and defense services sold to Turkey under such Act, either for cash or financed by credits and guaranties, shall not exceed $125,000,000, and (B) during the fiscal year 1977."

632 The figure, "$175,000,000", was inserted in lieu of "$125,000,000" by sec. 22(d)(3) of the International Security Assistance Act of 1977 (Public Law 95-92; 91 Stat. 624).

633 For text, see page 598.

634 For text, see page 278.

report required by the preceding sentence is submitted to the Congress.

635

(2) 636 The President shall submit to the Congress within 60 days after the enactment of this paragraph 637 and at the end of such succeeding sixty-day period, a report on progress made during such period toward the conclusion of a negotiated solution of the Cyprus conflict.

Sec. 620A.638, 639 Prohibition on Assistance to Countries Supporting International Terrorism.-(a) The United States shall not

635 Sec. 403 of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329; 90 Stat. 757) amended sec. 620(x)(1) beginning with the words "Provided, That for the fiscal year.". Sec. 620(x)(1) formerly read as follows: Provided, That the President is authorized to suspend the provisions of this section and such acts if he determines that such suspension will further negotiations for a peaceful solution of the Cyprus conflict. Any such suspension shall be effective only until February 5, 1975, and only if, during that time, Turkey shall observe the ceasefire and shall neither increase its forces in Cyprus nor transfer to Cyprus any U.S. supplied implements of war."

Šec. 620(A) had previously been amended also at the point beginning with the word "Provided" by sec. 2(c)(1) of Public Law 94-104. However, pursuant to sec. 2(c)(5) of Public Law 94-104, subsec. (c) did not become effective until enactment of foreign assistance legislation authorizing sales, credits, and guaranties under the Foreign Military Sales Act for fiscal year 1976. Such authorization for fiscal year 1976 was not enacted until passage of the International Security Assistance and Arms Export Control Act of 1976. Since sec. 403 of such Act further amended sec. 620(x)(1), the amendments contained in sec. 2(c)(1) of Public Law 94-104 never became effective. See page 598 for complete text of Public Law 94-104.

636 Par. (2) was added by sec. 2(a)(2) of Public Law 94-104.

637 Par. (2) did not become effective until enactment of the International Security Assistance and Arms Export Control Act of 1976 on June 30, 1976. See sec. 2(c)(5) of Public Law 94-104 (page 598) for explanation of the effective date of par. (2).

638 22 U.S.C. 2371. Sec 620A was added by sec. 303 the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329; 90 Stat. 753).

The Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988 (Public Law 100-202; 101 Stat. 1329) provided the following:

"OPPOSITION TO ASSISTANCE TO TERRORIST COUNTRIES BY INTERNATIONAL FINANCIAL INSTITUTIONS "SEC. 575. (a) INSTRUCTIONS FOR UNITED STATES EXECUTIVE DIRECTORS.-The Secretary of the Treasury shall instruct the United States Executive Director of each international financial institution to vote against any loan or other use of the funds of the respective institution to or for a country for which the Secretary of State has made a determination under section 6(j) of the Export Administration Act of 1979.

(b) DEFINITION.-For purposes of this section, the term "international financial institution" includes

"(1) the International Bank for Reconstruction and Development, the International Development Association, and the International Monetary Fund; and

"(2) wherever applicable, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, and the African Development Fund.

"PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST COUNTRIES

"SEC. 576. Notwithstanding any other provision of law, funds appropriated for bilateral assistance under any heading of this Act and funds appropriated under any such heading in a provision of law enacted prior to fiscal year 1988

"(1) shall not be obligated or expended for assistance to a country listed in section 6(j) of the Export Administration Act of 1979 on the date of enactment of this Act or placed on that list thereafter,

"(2) if obligated before such date as assistance for such country, shall not disbursed, and "(3) if expended before such date for assistance to be delivered to such country from the United States or by United States nationals, then no such delivery shall be made, unless such assistance is for humanitarian purposes."

639 Sec. 620A was amended and restated by sec. 503(a) of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 220). It formerly read:

"Sec. 620A. Prohibition Against Furnishing Assistance to Countries Which Grant Sanctuary to International Terrorists.-(a) Except where the President finds national security to require otherwise, the President shall terminate all assistance under this Act to any government which aids or abets, by granting sanctuary from prosecution to, any individual or group which has committed an act of international terrorism and the President may not thereafter furnish assistance to such government until the end of the one year period beginning on the date of such termination, except that if during its period of ineligibility for assistance under this section such government aids or abets, by granting sanctuary from prosecution to, any other individual or

Continued

provide any assistance under this Act, the Agricultural Trade Development and Assistance Act of 1954, the Peace Corps Act, the Export-Import Bank Act of 1945,640 or the Arms Export Control Act, to any country which the President determines

(1) grants sanctuary from prosecution to any individual or group which has committed an act of international terrorism,

or

(2) otherwise supports international terrorism.

(b) The President may waive the application of subsection (a) to a country if the President determines that national security or humanitarian reasons justify such waiver. The President shall publish each waiver in the Federal Register and, at least 15 days before the waiver takes effect, shall notify the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate of the waiver (including the justification for the waiver) in accordance with the procedures applicable to reprogramming notifications pursuant to section 634A of this Act.

(c) If sanctions are imposed on a country pursuant to subsection (a) because of its support for international terrorism, the President should call upon other countries to impose similar sanctions on that country.

Sec. 620B.641 Prohibition Against Assistance and Sales to Argentina.-* * * [Repealed-1981]

Sec. 620C.642 United States Policy Regarding the Eastern Mediterranean.-(a) The Congress declares that the achievement of a just and lasting Cyprus settlement is and will remain a central objective of United States foreign policy. The Congress further declares that any action of the United States with respect to section 620(x) of this Act shall not signify a lessening of the United States commitment to a just solution to the conflict on Cyprus but is authorized in the expectation that this action will be conducive to achievement of a Cyprus solution and a general improvement in relations among Greece, Turkey, and Cyprus and between those countries and the United States. The Congress finds that

(1) a just settlement on Cyprus must involve the establishment of a free and independent government on Cyprus and

group which has committed an act of international terrorism, such government's period of ineligibility shall be extended for an additional year for each such individual or group.

"(b) If the President finds that national security justifies a continuation of assistance to any government described in subsection (a), he shall report such finding to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate."

640 The reference to the Export-Import Bank Act of 1945 was added by sec. 521 of the Further Continuing Appropriations, 1986 (Public Law 99-190; 99 Stat. 1305).

641 Sec. 620B, as added by sec. 11 of Public Law 95-92 (91 Stat. 619) and amended by sec. 12(c)1) of Public Law 95-384 (92 Stat. 737), was repealed by sec. 725(a) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1553). Sec. 620B had prohibited the furnishing of MAP, ESF, IMET, and Peacekeeping assistance under this Act, and the extension of credits, sales, or export licenses under the Arms Export Control Act for Argentina after Sept. 30, 1978. See Sec. 725(b) of Public Law 97-113 new text placing conditions on U.S. assistance and sales to Argentina.

642 22 U.S.C. 2373. Sec. 620C was added by sec. 13(b) of the International Security Assistance Act of 1978 (Public Law 95-384; 92 Stat. 737).

For related legislation, see sec. 582, "Maintenance of Military Balance of Eastern Mediterranean", and sec. 586, "Special Ambassadorial Commission for Cyprus and the Aegean", of the Foreign Operations, Export Financing, and Related Programs Appropriation Act, 1988 (Public Law 100-202, 101 Stat. 1329), pages 555 and 558, respectively.

must guarantee that the human rights of all of the people of Cyprus are fully protected;

(2) a just settlement on Cyprus must include the withdrawal of Turkish military forces from Cyprus;

(3) the guidelines for inter-communal talks agreed to in Nicosia in February 1977 and the United Nations resolutions regarding Cyprus provide a sound basis for negotiation of a just settlement on Cyprus;

(4) serious negotiations, under United Nations auspices, will be necessary to achieve agreement in, and implementation of, constitutional and territorial terms within such guidelines; and

(5) the recent proposals by both Cypriot communities regarding the return of the refugees to the city of New Famagusta (Varosha) constitute a positive step and the United States should actively support the efforts of the Secretary General of the United Nations with respect to this issue.

(b) United States policy regarding Cyprus, Greece, and Turkey shall be directed toward the restoration of a stable and peaceful atmosphere in the Eastern Mediterranean region and shall therefore be governed by the following principles:

(1) The United States shall actively support the resolution of differences through negotiations and internationally established peaceful procedures, shall encourage all parties to avoid provocative actions, and shall strongly oppose any attempt to resolve disputes through force or threat of force.

(2) The United States will accord full support and high priority to efforts, particularly those of the United Nations, to bring about a prompt, peaceful settlement on Cyprus.

(3) All defense articles furnished by the United States to countries in the Eastern Mediterranean region will be used only in accordance with the requirements of this Act, the Arms Export Control Act, and the agreements under which those defense articles were furnished.

(4) The United States will furnish security assistance for Greece and Turkey only when furnishing that assistance is intended solely for defensive purposes, including when necessary to enable the recipient country to fulfill its responsibilities as a member of the North Atlantic Treaty Organization, and shall be designed to ensure that the present balance of military strength among countries of the region, including between Greece and Turkey, is preserved. Nothing in this paragraph shall be construed to prohibit the transfer of defense articles to Greece or Turkey for legitimate self defense or to enable Greece or Turkey to fulfill their North Atlantic Treaty Organization obligations.

(5) The United States shall use its influence to ensure the continuation of the ceasefire on Cyprus until an equitable negotiated settlement is reached.

(6) The United States shall use its influence to achieve the withdrawal of Turkish military forces from Cyprus in the context of a solution to the Cyprus problem.

(c) Because progress toward a Cyprus settlement is a high priority of United States policy in the Eastern Mediterranean, the President and the Congress shall continually review that progress and