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preparation of the Federal Foundation “Remembrance, Responsibility and the Future", done at Berlin on July 17, 2000.

(3) GERMAN FOUNDATION.—The term “German Foundation" means the Foundation "Remembrance, Responsibility and the Future” referred to in the Agreement.

(4) ICHEIC.—The term “ICHEIC” means the International Commission on Holocaust Era Insurance Claims referred to

in Article 1(4) of the Agreement. SEC. 705. SENSE OF CONGRESS ON RETURN OF PORTRAITS OF HOLO

CAUST VICTIMS TO THE ARTIST DINA BABBITT. (a) FINDINGS.—Congress finds that,

(1) Dina Babbitt (formerly known as Dinah Gottliebova), Dinah a United States citizen has requested the return of watercolor Gottliebova. portraits she painted while suffering a 1/2-year-long internment at the Auschwitz death camp during World War II;

(2) Dina Babbitt was ordered to paint the portraits by the infamous war criminal Dr. Josef Mengele;

(3) Dina Babbitt's life, and her mother's life, were spared only because she painted portraits of doomed inmates of Auschwitz-Birkenau, under orders from Dr. Josef Mengele;

(4) these paintings are currently in the possession of the Auschwitz-Birkenau State Museum;

(5) Dina Babbitt is the rightful owner of the artwork, since the paintings were produced by her own talented hands as she endured the unspeakable conditions that existed at the Auschwitz death camp;

(6) the artwork is not available for the public to view at the Auschwitz-Birkenau State Museum and therefore this unique and important body of work is essentially lost to history; and

(7) this continued injustice can be righted through cooperation between agencies of the United States and Poland. (b) SENSE OF CONGRESS.-Congress

(1) recognizes the moral right of Dina Babbitt to obtain the artwork she created, and recognizes her courage in the face of the evils perpetrated by the Nazi command of the Auschwitz-Birkenau death camp, including the atrocities committed by Dr. Josef Mengele;

(2) urges the President to make all efforts necessary to retrieve the 7 watercolor portraits Dina Babbitt painted, while suffering a 142-year-long internment at the Auschwitz death camp, and return them to her;

(3) urges the Secretary to make immediate diplomatic efforts to facilitate the transfer of the 7 original watercolors painted by Dina Babbitt from the Auschwitz-Birkenau State Museum to Dina Babbitt, their rightful owner;

(4) urges the Government of Poland to immediately facilitate the return to Dina Babbitt of the artwork painted by her that is now in the possession of the Auschwitz-Birkenau State Museum; and

(5) urges the officials of the Auschwitz-Birkenau State Museum to transfer the 7 original paintings to Dina Babbitt as expeditiously as possible.

99-194 0 -03 - 21 : QL 3 Part 2

22 USC 22913–1.

Deadline.
President

SEC. 706. INTERNATIONAL DRUG CONTROL CERTIFICATION PROCE

DURES.
During any fiscal year, funds that would otherwise be withheld
from obligation or expenditure under section 490 of the Foreign
Assistance Act of 1961 may be obligated or expended beginning
October 1 of such fiscal year provided that:

(1) REPORT.—Not later than September 15 of the previous fiscal year the President has submitted to the appropriate congressional committees a report identifying each country determined by the President to be a major drug transit country or major illicit drug producing country as defined in section 481(e) of the Foreign Assistance Act of 1961.

(2) DESIGNATION AND JUSTIFICATION.—In each report under paragraph (1), the President shall also—

(A) designate each country, if any, identified in such report that has failed demonstrably, during the previous 12 months, to make substantial efforts

(i) to adhere to its obligations under international counternarcotics agreements; and

(ii) to take the counternarcotics measures set forth in section 489(a)(1) of the Foreign Assistance Act of 1961; and

(B) include a justification for each country so designated.

(3) LIMITATION ON ASSISTANCE FOR DESIGNATED COUNTRIES.—In the case of a country identified in a report under paragraph (1) that is also designated under paragraph (2) in the report, United States assistance may be provided to such country in the subsequent fiscal year only if the President determines and reports to the appropriate congressional committees that,

(A) provision of such assistance to the country in such fiscal year is vital to the national interests of the United States; or

(B) subsequent to the designation being made under paragraph (2)(A), the country has made substantial efforts

(i) to adhere to its obligations under international counternarcotics agreements; and

(ii) to take the counternarcotics measures set forth in section 489(a)(1) of the Foreign Assistance Act of

1961. (4) INTERNATIONAL COUNTERNARCOTICS AGREEMENT DEFINED.-In this section, the term "international counternarcotics agreement” means

(A) the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances; or

(B) any bilateral or multilateral agreement in force between the United States and another country or countries that addresses issues relating to the control of illicit drugs, such as

(i) the production, distribution, and interdiction of illicit drugs;

(ii) demand reduction;
(iii) the activities of criminal organizations;

(iv) international legal cooperation among courts, prosecutors, and law enforcement agencies (including the exchange of information and evidence);

(v) the extradition of nationals and individuals involved in drug-related criminal activity;

(vi) the temporary transfer for prosecution of
nationals and individuals involved in drug-related
criminal activity;

(vii) border security;
(viii) money laundering;
(ix) illicit firearms trafficking;
(x) corruption;
(xi) control of precursor chemicals;
(xii) asset forfeiture; and

(xiii) related training and technical assistance,
and includes, where appropriate, timetables and objective and
measurable standards to assess the progress made by partici-
pating countries with respect to such issues.

(5) APPLICATION.—A) Section 490 (a) through (h) of the Foreign Assistance Act of 1961 (22 U.S.C. 2291j(a)-(h)) shall not apply during any fiscal year with respect to any country identified in the report required by paragraph (1) of this section.

(B) Notwithstanding paragraphs (1) through (5)(A) of this section, the President may apply the procedures set forth in section 490 (a) through (h) of the Foreign Assistance Act of 1961 during any fiscal year with respect to any country determined to be a major drug transit country or major illicit drug producing country as defined in section 481(e) of the Foreign Assistance Act of 1961.

(6) STATUTORY CONSTRUCTION.-Nothing in this section supersedes or modifies the requirement in section 489(a) of the Foreign Assistance Act of 1961 (with respect to the International Narcotics Control Strategy Report) for the transmittal of a report not later than March 1, each fiscal year under that section.

(7) TRANSITION RULE.—For funds obligated or expended under this section in fiscal year 2003, the date for submission of the report required by paragraph (1) of this section shall be at least 15 days before funds are obligated or expended.

(8) EFFECTIVE DATE.—This section shall take effect upon the date of enactment of this Act into law and shall remain in effect thereafter unless Congress enacts subsequent legislation repealing such section.

DIVISION B-SECURITY ASSISTANCE

ACT OF 2002

Security Assistance Act of 2002.

TITLE X-GENERAL PROVISIONS

22 USC 2151 note.

SEC. 1001. SHORT TITLE.

This division may be cited as the “Security Assistance Act of 2002”. SEC. 1002. DEFINITIONS.

In this division:

22 USC 2151 note.

(1) DEFENSE ARTICLE.—The term “defense article” has the meaning given the term in section 47(3) of the Arms Export Control Act (22 U.S.C. 2794 note).

(2) DEFENSE SERVICE.-The term "defense service” has the meaning given the term in section 47(4) of the Arms Export Control Act (22 U.S.C. 2794 note).

(3) EXCESS DEFENSE ARTICLE.—The term “excess defense article” has the meaning given the term in section 644(g) of the Foreign Assistance Act of 1961 (22 U.S.C. 2403(g)).

TITLE XI–VERIFICATION

OF

ARMS CONTROL AND NONPROLIFERATION AGREEMENTS

SEC. 1101. VERIFICATION AND COMPLIANCE BUREAU PERSONNEL.

(a) IN GENERAL.-Of the amount authorized to be appropriated by section 111(a)(1)(A), $14,000,000 is authorized to be available for the Bureau of Verification and Compliance of the Department of State for Bureau-administered activities, including the Key Verification Assets Fund and to upgrade Bureau spaces for certification as a Sensitive Compartmented Information Facility (SCIF).

(b) ADDITIONAL PERSONNEL.—In addition to the amount made available under subsection (a), $1,800,000 is authorized to be available for the fiscal year 2003 from the Department's American Salaries Account, for the purpose of hiring new personnel to carry out the Bureau's responsibilities, as set forth in section 112 of the Arms Export Control and Nonproliferation Act of 1999 (113 Stat. 1501A-486), as enacted into law by section 1000(a)(7) of Public Law 106-113, including the assignment of one full-time person to the Bureau to manage the document control, tracking, and printing requirements of the Bureau's operation in a SCIF. SEC. 1102. KEY VERIFICATION ASSETS FUND.

Of the total amount made available to the Department for fiscal year 2003, $7,000,000 is authorized to be available within the Verification and Compliance Bureau's account to carry out section 1111 of the Arms Control and Nonproliferation Act of 1999 (113 Stat. 1501A-486), as enacted into law by section 1000(a)(7) of Public Law 106–113. SEC. 1103. REVISED VERIFICATION AND COMPLIANCE REPORTING

REQUIREMENTS. Section 403(a) of the Arms Control and Disarmament Act (22 U.S.C. 2593a(a)) is amended by striking “January 31” and inserting "April 15".

TITLE XII–MILITARY AND RELATED

ASSISTANCE

Subtitle A–Foreign Military Sales and

Financing Authorities

SEC. 1201. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated to the President for grant assistance under section 23 of the Arms Export Control Act (22 U.S.C. 2763) and for the subsidy cost, as defined in section 502(5) of the Federal Credit Reform Act of 1990, of direct loans under such section $4,107,200,000 for fiscal year 2003. SEC. 1202. RELATIONSHIP OF FOREIGN MILITARY SALES TO UNITED

STATES NONPROLIFERATION INTERESTS. (a) AUTHORIZED PURPOSES.—The first sentence of section 4 of the Arms Export Control Act (22 U.S.C. 2754) is amended by inserting “for preventing or hindering the proliferation of weapons of mass destruction and of the means of delivering such weapons,” after “self-defense,”.

(b) DEFINITION OF "WEAPONS OF MASS DESTRUCTION".-Section 47 of the Arms Export Control Act (22 U.S.C. 2794) is amended,

(1) by striking "and" at the end of paragraph (8);

(2) by striking the period at the end of paragraph (9) and inserting “; and”; and

(3) by adding at the end the following new paragraph:

“(10) 'weapons of mass destruction' has the meaning provided by section 1403(1) of the Defense Against Weapons of Mass Destruction Act of 1996 (title XIV of Public Law 104

201; 110 Stat. 2717; 50 U.S.C. 2302(1)).”. SEC. 1203. OFFICIAL RECEPTION AND REPRESENTATION EXPENSES.

Section 43(c) of the Arms Export Control Act (22 U.S.C. 2792(c)), is amended by striking “$72,500” and inserting "$86,500". SEC. 1204. ARMS EXPORT CONTROL ACT PROHIBITION ON TRANS

ACTIONS WITH COUNTRIES THAT HAVE REPEATEDLY
PROVIDED SUPPORT FOR ACTS OF INTERNATIONAL TER-

RORISM.
The second sentence of section 40(d) of the Arms Export Control
Act (22 U.S.C. 2780(d)) is amended-

(1) by striking “groups or” and inserting “groups,”; and

(2) by inserting before the period the following: “, or willfully aid or abet the efforts of an individual or group to use, develop, produce, stockpile, or otherwise acquire chemical,

biological, or radiological weapons”. SEC. 1205. CONGRESSIONAL NOTIFICATION OF SMALL ARMS AND

LIGHT WEAPONS LICENSE APPROVALS; REPORTS. (a) CONGRESSIONAL NOTIFICATION OF EXPORT LICENSE APPROVALS.—Section 36(c) of the Arms Export Control Act (22 U.S.C. 2776(c)) is amended by inserting “(or, in the case of a defense article that is a firearm controlled under category I of the United States Munitions List, $1,000,000 or more)” after "$50,000,000 or more".

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