EXPORT-IMPORT BANK FINANCING FOR SALES OF DEFENSE ARTICLES AND SERVICES FOR ANTI-NARCOTICS PURPOSES.

SEC. 4703. EXPORT-IMPORT BANK FINANCING FOR SALES OF DEFENSE ARTICLES AND SERVICES FOR ANTI-NARCOTICS PURPOSES. Section 2(b)(6) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(6)) is amended— (1) by inserting “(A)” before “The Bank”; (2) by striking “paragraph” and inserting in lieu thereof “subparagraph”; and (3) by adding at the end the following new subparagraphs: “(B) Subparagraph (A), and section 32 of the Arms Export Control Act, shall not apply to any sale of defense articles or services if— “(i) the Bank is requested to provide a guarantee or insurance for the sale; “(ii) the President determines that the defense articles or services are being sold primarily for anti-narcotics purposes; “(iii) section 481(h)(5) of the Foreign Assistance Act of 1961 does not apply with respect to the purchasing country; “(iv) the President determines, in accordance with subparagraph (C), that the sale is in the national interest of the United States; “(v) the Bank determines that, notwithstanding the provision of a guarantee or insurance for the sale, not more than 5 percent of the guarantee and insurance authority available to the Bank in any fiscal year will be used by the Bank to support the sale of defense articles and services; and “(vi) the sale is made on or before September 30, 1990. “(C) In determining whether a sale of defense articles or services would be in the national interest of the United States, the President shall take into account whether the sale would— “(i) be consistent with the anti-narcotics policy of the United States; “(ii) involve the end use of a defense article or service in a major illicit drug producing or major drug-transit country (as defined in section 481(i) of the Foreign Assistance Act of 1961); and “(iii) be made to a country with a democratic form of government. “(D)(i) The Board shall not give approval to guarantee or insure a sale of defense articles or services unless— “(I) the President determines, in accordance with subparagraph (C), that it is in the national interest of the United States for the Bank to provide such guarantee or insurance; and “(II) such determination has been reported to the Speaker and the Committee on Banking, Finance and Urban Affairs of the House of Representatives, and to the Committee on Banking, Housing, and Urban Affairs and the Committee on Foreign Relations of the Senate, not less than 25 days or continuous session of the Congress before the date of such approval. “(ii) For purposes of clause (i), continuity of a session of the Congress shall be considered as broken only by an adjournment of the Congress sine die, and the days on which either House is not in session because of an adjournment of more than 3 days to 102 STAT. 4294 a day certain shall be excluded in the computation of the 25-day period referred to in such sentence. “(E) The provision of a guarantee or insurance under subparagraph (B) shall be deemed to be the provision of security assistance for purposes of section 502B of the Foreign Assistance Act of 1961 (relating to governments which engage in a consistent pattern of gross violations of international recognized human rights). “(F) To the extent that defense articles or services for which a guarantee or insurance is provided under subparagraph (B) are used for a purpose other than anti-narcotics purposes, they may be used only for those purposes for which defense articles and defense services sold under the Arms Export Control Act (relating to the foreign military sales program) may be used under section 4 of such Act. “(G) As used in this paragraph, the term ‘defense articles and services’ means articles, services, and related technical data that are designated as defense articles and defense services pursuant to sections 38 and 47(7) of the Arms Export Control Act and listed on the United States Munitions List (part 121 of title 22 of the Code of Federal Regulations).”.