(C) To the extent that aircraft so leased were acquired under chapter 5 of that Act, funds used pursuant to this paragraph to finance such leases shall be credited to the Special Defense Acquisition Fund under chapter 5 of that Act (excluding the amount of funds that reflects the charges described in section 21(e)(1) of that Act). The funds described in the parenthetical clause of the preceding sentence shall be available for payments consistent with sections 37(a) and 43(b) of that Act. (b)419 PERMISSIBLE USES OF AIRCRAFT AND OTHER EQUIPMENT. The President shall take all reasonable steps to ensure that aircraft and other equipment made available to foreign countries under this chapter are used only in ways that are consistent with the purposes for which such equipment was made available. (c)420 REPORTS.-In the reports submitted pursuant to section 489(a),421 the President shall discuss

(1) any evidence indicating misuse by a foreign country of aircraft or other equipment made available under this chapter, and

(2) the actions taken by the United States Government to prevent future misuse of such equipment by that foreign country. Sec. 485.422 Records of Aircraft Use. (a) REQUIREMENT TO MAINTAIN RECORDS.-The President 423 shall maintain detailed records on the use of any aircraft made available to a foreign country under this chapter, including aircraft made available before the enactment of this section.

(b) CONGRESSIONAL ACCESS TO RECORDS.-The President shall make the records maintained pursuant to subsection (a) available to the Congress upon a request of the Chairman of the Committee on Foreign Affairs 424 of the House of Representatives or the Chairman of the Committee on Foreign Relations of the Senate.

Sec. 486.425 Reallocation of Funds Withheld from Countries Which Fail to Take Adequate Steps to Halt Illicit Drug Production or Trafficking.

419 Sec. 4(f)(2)(B) of the International Narcotics Control Act of 1992 (Public Law 102-583; 106 Stat. 4917) struck "IN GENERAL" and inserted in lieu thereof "PERMISSIBLE USES OF AIRCRAFT AND OTHER EQUIPMENT". Sec. 4(f)(2)(D) of that Act redesignated sec. 489(a) as sec. 484(b). 420 Sec. 4(f)(2)(D) of the International Narcotics Control Act of 1992 (Public Law 102-583; 106 Stat. 4917) redesignated sec. 489(b) as sec. 484(c).

421 Sec. 4(f)(2)(C) of the International Narcotics Control Act of 1992 (Public Law 102-583; 106 Stat. 4917) struck out "subsection (e)", and inserted in lieu thereof "section 489(a)".

422 22 U.S.C. 2291d. Sec. 485 was added by sec. 2003 of Public Law 99-570 (100 Stat. 320761).

423 Sec. 4(f)(3) of the International Narcotics Control Act of 1992 (Public Law 102-583; 106 Stat. 4917) struck out "Secretary of State" both places it appeared in sec. 485 and inserted in hieu thereof "President".

424 Sec. 1(a)(5) of Public Law 104-14 (109 Stat. 186) provided that references to the Committee on Foreign Affairs of the House of Representatives shall be treated as referring to the Committee on International Relations of the House of Representatives.

425 22 U.S.C. 2291e. Sec. 486 was added by sec. 4206(a) of the International Narcotics Control Act of 1988 (Public Law 100-690; 102 Stat. 4270). Sec. 4206(b) of the same act stipulated the following:

"(1) The amendment made by subsection (a) of this section supersedes section 578(d) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989 (Public Law 100-461).

"(2) Funds may be transferred pursuant to paragraph (1) of section 486(a) of the Foreign Assistance Act of 1961 (as enacted by this section) notwithstanding section 514 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989 (as amended by section 589 of that Act), relating to transfers between accounts.".

(a) 426 If any funds authorized to be appropriated for any fiscal year for assistance under this Act 427 are not used for assistance for the country for which those funds were allocated because of the requirements of section 490 428 or any other provision of law requiring the withholding of assistance for countries that have not taken adequate steps to halt illicit drug production or trafficking, the President shall use those funds for additional assistance for those countries which have met their illicit drug eradication targets or have otherwise taken significant steps to halt illicit drug production or trafficking, as follows:

(1) INTERNATIONAL NARCOTICS CONTROL ASSISTANCE.-Those funds may be transferred to and consolidated with the funds appropriated to carry out this chapter in order to provide additional narcotics control assistance for those countries. Funds transferred under this paragraph may only be used to provide increased funding for activities previously justified to the Congress. Transfers may be made under this paragraph without regard to the 20-percent increase limitation contained in section 610(a). This paragraph does not apply with respect to funds made available for assistance under the Arms Export Control Act.

(2) OTHER 429 ASSISTANCE.-Any such funds not used under paragraph (1) shall be reprogrammed within the account for which they were appropriated (subject to the regular reprogramming procedures under section 634A) in order to provide additional 430 assistance for those countries.

Sec. 487.431 Prohibition on Assistance to Drug Traffickers. (a) PROHIBITION.-The President shall take all reasonable steps to ensure that assistance under this Act and the Arms Export Control Act is not provided to or through any individual or entity that the President knows or has reason to believe

(1) has been convicted of a violation of, or a conspiracy to violate, any law or regulation of the United States, a State or the District of Columbia, or a foreign country relating to 4 432 narcotic or psychotropic drugs or other controlled substances; 433

or

(2) is or has been an illicit trafficker in any such controlled substance or is or has been a knowing assistor, abettor, con

426 Sec. 101(d)1) of the International Narcotics Control Corrections Act of 1994 (Public Law 103-447; 108 Stat. 4692) struck out subsec. (a) catchline, which read "ADDITIONAL ASSISTANCE FOR COUNTRIES TAKING SIGNIFICANT STEPS.-".

427 Sec. 101(d)2) of the International Narcotics Control Corrections Act of 1994 (Public Law 103-447; 108 Stat. 4692) struck out "security assistance" and inserted in lieu thereof "assistance under this Act".

428 Sec. 6(b)(5)(A) of the International Narcotics Control Act of 1992 (Public Law 102-583; 106 Stat. 4932) struck out "481(h)", and inserted in lieu thereof "490".

429 Sec. 101(d)(3)(A) of the International Narcotics Control Corrections Act of 1994 (Public Law 103-447; 108 Stat. 4692) struck out "SECURITY" in the para. (2) catchline, and inserted in lieu thereof "OTHER". Sec. 101(d)(4) of that Act struck out subsec. (b) in this section, which had provided a definition of "security assistance".

430 Sec. 101(d)(3)(B) of the International Narcotics Control Corrections Act of 1994 (Public Law 103-447; 108 Stat. 4692) struck out "security" here.

431 22 U.S.C. 2291f. Sec. 487 was added by sec. 4503 of the International Narcotics Control Act of 1988 (Public Law 100-690; 102 Stat. 4285).

432 Sec. 101(e) of the International Narcotics Control Corrections Act of 1994 (Public Law 103447; 108 Stat. 4692) inserted "to" after "relating".

433 Sec. 6(b)(6) of the International Narcotics Control Act of 1992 (Public Law 102-583; 106 Stat. 4932) struck out “(as defined in section 481(i)(3) of this Act)" preceding the semicolon.

spirator, or colluder with others in the illicit trafficking in any such substance.

(b) 434 REGULATIONS.-The President shall issue regulations specifying the steps to be taken in carrying out this section.

(c) CONGRESSIONAL REVIEW OF REGULATIONS.-Regulations issued pursuant to subsection (b) shall be submitted to the Congress before they take effect.

SEC. 488.435 LIMITATIONS ON ACQUISITION OF REAL PROPERTY AND CONSTRUCTION OF FACILITIES.

(a) ACQUISITION OF REAL PROPERTY.

(1) PROHIBITION.-Funds made available to carry out this chapter may not be used to acquire (by purchase or other means) any land or other real property for use by foreign military, paramilitary, or law enforcement forces.

(2) EXCEPTION FOR CERTAIN LEASES.-Paragraph (1) shall not apply to the acquisition of real property by lease of a duration not to exceed 2 years.

(3) REPORT.-The Secretary of State shall provide to the Committee on Foreign Affairs 436 of the House of Representatives and the Committee on Foreign Relations of the Senate within 30 days after the end of each quarter of the fiscal year a detailed report on all leases entered into pursuant to paragraph (2), including the cost and duration of such lease, a description of the property leased, and the purpose for which such lease was entered into.

(b) CONSTRUCTION OF FACILITIES.

(1) LIMITATION.-Funds made available to carry out this chapter may not be used for construction of facilities for use by foreign military, paramilitary, or law enforcement forces unless, at least 15 days before obligating funds for such construction, the President notifies the appropriate congressional committees in accordance with procedures applicable to reprogramming notifications under section 634A.

(2) EXCEPTION.-Paragraph (1) shall not apply to the construction of facilities which would require the obligation of less than $750,000 under this chapter.

434 Regulations proposed to implement section 487, issued by the Bureau of International Narcotics Matters of the Department of State, may be found at 60 F.R. 7737.

435 22 U.S.C. 2291g. Sec. 4(g) of the International Narcotics Control Act of 1992 (Public Law 102-583; 106 Stat. 4917) amended and restated sec. 488. It was originally added by sec. 4505 of the International Narcotics Control Act of 1988.

436 Sec. 1(a)(5) of Public Law 104-14 (109 Stat. 186) provided that references to the Committee on Foreign Affairs of the House of Representatives shall be treated as referring to the Committee on International Relations of the House of Representatives.

SEC. 489.437 REPORTING REQUIREMENTS.

(a) INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT.-Not later than March 1438 of each year, the President shall transmit to the Speaker of the House of Representatives, and to the Committee on Foreign Relations of the Senate, a report containing the following:

(1) For each country that received assistance under this chapter for either of the 2 preceding fiscal years, a report on the extent to which the country has

(A) met the goals and objectives of the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, including action on such issues as illicit cultivation, production, distribution, sale, transport, and financing, and money laundering, asset seizure, extradition, mutual legal assistance, law enforcement and transit cooperation, precursor chemical control, and demand reduction;

(B) accomplished the goals described in an applicable bilateral narcotics agreement with the United States or a multilateral agreement; and

(C) taken legal and law enforcement measures to prevent and punish public corruption, especially by senior government officials, that facilitates the production, processing, or shipment of narcotic and psychotropic drugs and other controlled substances, or that discourages the investigation or prosecution of such acts.

(2XA) A description of the policies adopted, agreements concluded, and programs implemented by the Department of State in pursuit of its delegated responsibilities for international narcotics control, including appropriate information on the status of negotiations between the United States and other countries on updated extradition treaties, mutual legal assistance treaties, precursor chemical controls, money laundering, and agreements pursuant to section 2015 of the International Narcotics Act of 1986 (relating to interdiction procedures for vessels of foreign registry).

(B) Information on multilateral and bilateral strategies with respect to money laundering pursued by the Department of State, the Department of Justice, the Department of the Treasury, and other relevant United States Government agencies, ei

437 22 U.S.C. 2291h. Added by sec. 5(a) of the International Narcotics Control Act of 1992 (Public Law 102-583; 106 Stat. 4917).

Sec. 101(f)(1)(A) of the International Narcotics Control Corrections Act of 1994 (Public Law 103-447; 108 Stat. 4692) struck out "FOR FISCAL YEARS 1993 AND 1994" from the section heading and inserted in lieu thereof "FOR FISCAL YEAR 1995". Sec. 1112(c)(1) of Public Law 104-66 (109 Stat. 707) struck out "FOR FISCAL YEAR 1995".

The original sec. 489 was added by sec. 4507 of the International Narcotics Control Act of 1988 (Public Law 100-690; 102 Stat. 4286). Sec. 4(f)(2) of the International Narcotics Control Act of 1992 (Public Law 102-583; 106 Stat. 4917) struck out subsecs. (c) and (d) of the original sec. 489, and restated sec. 489, subsecs. (a) and (b), as sec. 484, subsecs. (c) and (d).

Subsec. (c) of this sec. was struck out by sec. 1112(c)(2) of Public Law 104-66 (109 Stat. 707). Originally enacted as subsec. (d), redesignated as subsec. (c) by sec. 101(f)(1)(D) of the International Narcotics Control Corrections Act of 1994 (Public Law 103-447; 108 Stat. 4692). Subsec. (c) formerly read as follows:

"EFFECTIVE DATE OF SECTIONS.-This section applies only during fiscal year 1995. Section 489A does not apply during that fiscal year.".

438 Sec. 101(f)(1)(B)(i) of the International Narcotics Control Corrections Act of 1994 (Public Law 103-447; 108 Stat. 4692) struck out "April 1" in subsec. (a), and inserted in lieu thereof "March 1".

ther collectively or individually, to ensure the cooperation of foreign governments with respect to narcotics-related money laundering and to demonstrate that all United States Government agencies are pursuing a common strategy with respect to major money laundering countries. The report shall include specific detail to demonstrate that all United States Government agencies are pursuing a common strategy with respect to achieving international cooperation against money laundering and are pursuing a common strategy with respect to major money laundering countries, including a summary of United States objectives on a country-by-country basis.

(3) 439 The identity of those countries which are

(A) major illicit drug producing countries or major drugtransit countries as determined under section 490(h);

(B) major sources of precursor chemicals used in the production of illicit narcotics; or

(C) major money laundering countries.

(4) In addition, for each country identified pursuant to paragraph (3), the following:

(A) A description of the plans, programs, and timetables adopted by such country, including efforts to meet the objectives of the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, and a discussion of the adequacy of the legal and law enforcement measures taken and the accomplishments achieved in accord with those plans.

(B) Whether as a matter of government policy or practice, such country encourages or facilitates the illicit production or distribution of narcotic or psychotropic drugs or other controlled substances or the laundering of proceeds from illegal drug transactions; and whether any senior official of the government of such country engages in, encourages, or facilitates the illicit production or distribution of such drugs or substances, or the laundering of proceeds from illegal drug transactions.

(5) In addition, for each country identified pursuant to paragraph (3)(A) or (3)(B), a detailed status report, with such information as can be reliably obtained, on the narcotic or psychotropic drugs or other controlled substances which are being cultivated, produced, or processed in or transported through such country, noting significant changes in conditions, such as increases or decreases in the illicit cultivation and manufacture of and traffic in such drugs and substances.

(6) In addition, for those countries identified pursuant to paragraph (3)(C)

(A) which countries are parties to international agreements on a method for maintaining records of transactions of an established list of precursor and essential chemicals;

439 Sec. 101(f)(1)(B)(ii) struck out subpara. (B), and redesignated subparas. (C) and (D) as subparas. (B) and (C). Subpara. (B) formerly read as follows:

"(B) the significant direct or indirect sources of narcotics and psychotropic drugs and other controlled substances significantly affecting the United States;".