text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Resolution of the Ethiopia-Eritrea 
  Border Dispute Act of 2004''.
  
  SEC. 2. DEFINITIONS.
  
      In this Act:
              (1) Algiers agreements.--The term ``Algiers Agreements'' 
          means the Cessation of Hostilities Agreement and the 
          Comprehensive Peace Agreement.
              (2) Appropriate congressional committees.--The term 
          ``appropriate congressional committees'' means the Committee on 
          International Relations of the House of Representatives and the 
          Committee on Foreign Relations of the Senate.
              (3) Cessation of hostilities agreement.--The term 
          ``Cessation of Hostilities Agreement'' means the Agreement on 
          the Cessation of Hostilities signed on June 18, 2000, in 
          Algiers, Algeria, by the Government of Ethiopia and the 
          Government of Eritrea that established a temporary 
          demilitarized security zone within Eritrea to be enforced by 
          the United Nations Peacekeeping Mission in Ethiopia and Eritrea 
          (UNMEE).
              (4) Comprehensive peace agreement.--The term 
          ``Comprehensive Peace Agreement'' means the agreement signed on 
          December 12, 2000, in Algiers, Algeria, by the Government of 
          Ethiopia and the Government of Eritrea, under the auspices of 
          the Organization of African Unity (OAU), that provided for an 
          end to military hostilities between the two countries, 
          assurances by the countries to refrain from the threat or use 
          of force against each other, and established a neutral Boundary 
          Commission to delimit and demarcate the border between the two 
          countries.
              (5) Economic assistance.--The term ``economic assistance'' 
          means--
                      (A) assistance under chapter 1 of part I of the 
                  Foreign Assistance Act of 1961 (relating to development 
                  assistance); and
                      (B) assistance under chapter 4 of part II of the 
                  Foreign Assistance Act of 1961 (relating to economic 
                  support fund assistance).
              (6) Military assistance and arms transfers.--The term 
          ``military assistance and arms transfers'' means--
                      (A) assistance under chapter 2 of part II of the 
                  Foreign Assistance Act of 1961 (relating to military 
                  assistance), including the transfer of excess defense 
                  articles under section 516 of that Act;
                      (B) assistance under chapter 5 of part II of the 
                  Foreign Assistance Act of 1961 (relating to 
                  international military education and training or 
                  ``IMET''), including military education and training 
                  for civilian personnel under section 541 of that Act 
                  (commonly referred to as ``Expanded IMET''); and
                      (C) assistance under the ``Foreign Military 
                  Financing'' Program under section 23 of the Arms Export 
                  Control Act and the transfer of defense articles, 
                  defense services, design and construction services, or 
                  any other defense-related training under that Act.
  
  SEC. 3. FINDINGS.
  
      Congress makes the following findings:
              (1) On May 6, 1998, a conflict erupted between Ethiopia and 
          Eritrea, two of the world's poorest countries.
              (2) The two-year war claimed 100,000 lives, displaced more 
          than 1,000,000 people, cost Ethiopia more than $2,900,000,000, 
          and caused a 62 percent decline in food production in Eritrea.
              (3) Millions of dollars were diverted from much needed 
          development projects into military activities and weapons 
          procurements at a time when severe drought threatened a famine 
          in both Ethiopia and Eritrea, as bad as the famine in 1984 in 
          those countries, putting more than 13,000,000 lives at risk.
              (4) On June 18, 2000, Prime Minister Meles Zenawi of the 
          Federal Democratic Republic of Ethiopia and President Isaias 
          Afewerki of the State of Eritrea signed the Cessation of 
          Hostilities Agreement in Algiers, Algeria. On December 12, 
          2000, the two countries also signed the Comprehensive Peace 
          Agreement in Algiers under the auspices of the Organization of 
          African Unity (OAU) and in the presence of United Nations 
          Secretary General Kofi Annan and President Abdel-Aziz 
          Boutheflika of Algeria.
              (5) Article 4.2 of the Comprehensive Peace Agreement states 
          the following: ``The parties agree that a neutral Boundary 
          Commission composed of five members shall be established with a 
          mandate to delimit and demarcate the colonial treaty border 
          [between the two countries] based on pertinent colonial 
          treaties (1900, 1902 and 1908) and applicable international 
          law.''.
              (6) Article 4.15 of the Comprehensive Peace Agreement 
          states the following: ``The parties agree that the delimitation 
          and demarcation determinations of the Commission shall be final 
          and binding. Each party shall respect the border so determined, 
          as well as territorial integrity and sovereignty of the other 
          party.''.
              (7)(A) The President of the United Nations Security 
          Council, on behalf of the Security Council, confirmed the 
          Security Council's endorsement of the terms and conditions of 
          the Algiers Agreements, with special reference to the neutral 
          Boundary Commission described in Article 4.2 of the 
          Comprehensive Peace Agreement and its mandate.
              (B) In addition, the Security Council reaffirmed its 
          support for the Algiers Agreements in United Nations Security 
          Council Resolutions 1312 (July 31, 2000), 1320 (September 15, 
          2000), 1344 (March 15, 2001), 1369 (September 14, 2001), 1398 
          (March 15, 2002), 1430 (August 14, 2002), 1434 (September 6, 
          2002), 1466 (March 14, 2003), 1507 (September 12, 2003), 1531 
          (March 12, 2004), and 1560 (September 14, 2004).
              (8) On April 13, 2002, the neutral Boundary Commission 
          announced its ``Delimitation Decision'', reiterating that both 
          parties had agreed that it would be ``final and binding''.
              (9) Following the decision of the Boundary Commission that 
          the heavily disputed town of Badme would be zoned to the 
          Eritrean side of the new border, Foreign Minister Seyoum Mesfin 
          of Ethiopia announced on April 15, 2003, that ``[n]o-one 
          expects the [G]overnment of Ethiopia to accept these mistakes 
          committed by the Commission''. Further, the Ethiopian Ministry 
          of Information released a statement accusing the Boundary 
          Commission of an ``unfair tendency'' in implementing the border 
          ruling and ``misinterpreting'' the Algiers Agreements.
              (10) In his March 6, 2003, ``Progress Report'' to the 
          United Nations Security Council, Secretary General Kofi Annan 
          reported that Prime Minister Zenawi of Ethiopia had expressed 
          to his Special Representative, Legwaila Joseph Legwaila, that 
          ``if its concerns were not properly addressed Ethiopia might 
          eventually reject the demarcation-related decisions of the 
          Commission''.
              (11) On September 19, 2003, Prime Minister Zenawi wrote to 
          United Nations Secretary General Kofi Annan and stated: ``As 
          the Commission's decisions could inevitably lead the two 
          countries into another round of fratricidal war, the Security 
          Council has an obligation, arising out of the UN Charter, to 
          avert such a threat to regional peace and stability.''.
              (12) On October 3, 2003, the United Nations Security 
          Council wrote to Prime Minister Zenawi and stated: ``The 
          members of the Security Council therefore wish to convey to you 
          their deep regret at the intention of the government of 
          Ethiopia not to accept the entirety of the delimitation and 
          demarcation decision as decided by the boundary commission. 
          They note in particular, that Ethiopia has committed itself 
          under the Algiers Agreements to accept the boundary decision as 
          final and binding.''.
              (13)(A) In an attempt to resolve the continued impasse, 
          United Nations Secretary General Kofi Annan offered his good 
          offices to the two parties and appointed Mr. Lloyd Axworthy, 
          former Minister for Foreign Affairs of Canada, to serve as his 
          Special Envoy for Ethiopia and Eritrea on January 29, 2004.
              (B) Despite the assurances of the United Nations Secretary 
          General, including in his Progress Reports of March 6, 2004, 
          and July 7, 2004, that the appointment of the Special Envoy was 
          ``not intended to establish an alternative mechanism to the 
          Boundary Commission or to renegotiate its final and binding 
          decision'', President Isaias of Eritrea has refused to meet 
          with the Special Envoy or otherwise engage in political 
          dialogue aimed at resolving the current impasse.
              (14) In his July 7, 2004, ``Progress Report'' to the United 
          Nations Security Council, Secretary General Kofi Annan reported 
          that the Ethiopian Ministry of Foreign Affairs continues to 
          reiterate its position that ``the current demarcation line 
          would disrupt the lives of border communities and lead to 
          future conflict''.
              (15) In that same report, Secretary General Annan reminded 
          both governments that they themselves ``entrusted the Boundary 
          Commission with the entire demarcation process, drew up its 
          mandate and selected its Commissioners'' and called upon the 
          Government of Ethiopia to ``unequivocally restate its 
          acceptance of the Boundary Commission's decision, appoint field 
          liaison officers, and pay its dues to and otherwise cooperate 
          fully and expeditiously with the Commission''.
  
  SEC. 4. SENSE OF CONGRESS.
  
      It is the sense of Congress that Ethiopia and Eritrea--
              (1) should take all appropriate actions to implement the 
          Algiers Agreements, including by accepting the ``Delimitation 
          Decision'' issued by the neutral Boundary Commission on April 
          13, 2002, with respect to the boundary between the two 
          countries; and
              (2) should fully cooperate with the United Nations Special 
          Envoy for Ethiopia-Eritrea, Lloyd Axworthy, whose mandate is 
          the implementation of the Algiers Agreements, the Delimitation 
          Decision of the Boundary Commission, and the relevant 
          resolutions and decisions of the United Nations Security 
          Council.
  
  SEC. 5. DECLARATIONS OF POLICY.
  
      Congress makes the following declarations:
              (1) Congress expresses its support for the Boundary 
          Commission established by the Comprehensive Peace Agreement and 
          calls on the international community to continue to support the 
          United Nations trust fund established to facilitate the process 
          of demarcation between Ethiopia and Eritrea and the economic 
          and social transition of affected communities to new borders 
          determined by the Commission.
              (2) Congress further declares that it shall be the policy 
          of the United States to limit United States assistance for 
          Ethiopia or Eritrea if either such country is not in compliance 
          with, or is not taking significant steps to comply with, the 
          terms and conditions of the Algiers Agreements.
              (3) Congress strongly condemns statements by senior 
          Ethiopian officials criticizing the Boundary Commission's 
          decision and calls on the Government of Ethiopia to immediately 
          and unconditionally fulfill its commitments under the Algiers 
          Agreements, publicly accept the Boundary Commission's decision, 
          and fully cooperate with the implementation of such decision.
              (4) Congress recognizes the acceptance by the Government of 
          Eritrea of the Boundary Commission's decision as final and 
          binding, but condemns the Government of Eritrea's continued 
          refusal to take advantage of the good offices offered by the 
          United Nations Secretary General, to work with Special Envoy 
          Lloyd Axworthy, or to otherwise engage in dialogue aimed at 
          resolving the current impasse, and calls on the President of 
          Eritrea to do so without further delay.
  
  SEC. 6. LIMITATIONS ON UNITED STATES ASSISTANCE.
  
      (a) Limitation on Economic Assistance.--Economic assistance may 
  only be provided for Ethiopia or Eritrea for any period of time for 
  which the President determines that Ethiopia or Eritrea (as the case 
  may be) is in compliance with, or is taking significant steps to comply 
  with, the terms and conditions of the Algiers Agreements.
      (b) Limitation on Military Assistance and Arms Transfers.--Military 
  assistance and arms transfers may only be provided for Ethiopia or 
  Eritrea for any period of time for which the President determines that 
  Ethiopia or Eritrea (as the case may be) is in compliance with, or is 
  taking significant steps to comply with, the terms and conditions of 
  the Algiers Agreements.
      (c) Exceptions.--The limitation on assistance under subsections (a) 
  and (b) shall not apply with respect to humanitarian assistance (such 
  as food or medical assistance), assistance to protect or promote human 
  rights, and assistance to prevent, treat, and control HIV/AIDS.
      (d) Waiver.--The President may waive the application of subsection 
  (a) or (b) with respect to Ethiopia or Eritrea, particularly for the 
  provision of peacekeeping assistance or counterterrorism assistance, if 
  the President determines and certifies to the appropriate congressional 
  committees that it is in the national interests of the United States to 
  do so.
  
  SEC. 7. INTEGRATION AND BORDER DEVELOPMENT INITIATIVE.
  
      (a) Assistance.--After the date on which the border demarcation 
  between Ethiopia and Eritrea is finalized (consistent with the decision 
  of the Boundary Commission established by the Comprehensive Peace 
  Agreement), the President shall establish and carry out an initiative 
  in conjunction with the Governments of Ethiopia and Eritrea under which 
  assistance is provided to reduce the adverse humanitarian impacts on 
  the populations of the border region, prevent conflict which might 
  result from the demarcation process, and further social and economic 
  development projects that are identified and evaluated by local 
  authorities to establish sustainable integration, development, and 
  trade at the border region.
      (b) Project Examples.--Examples of development projects referred to 
  in subsection (a) are--
              (1) startup initiatives, including farming projects, to 
          promote community economic development and the free flow of 
          trade across the border between the two countries;
              (2) generous compensation packages for families displaced 
          by the border demarcation and support for relocation;
              (3) effective mechanisms for managing movement of persons 
          across the border between the two countries;
              (4) an increase in the supply of basic services in the 
          border region, including water, sanitation, housing, health 
          care, and education; and
              (5) support for local efforts to reinforce peace and 
          reconciliation in the border region.
  
  SEC. 8. REPORT.
  
      Until the date on which the border demarcation between Ethiopia and 
  Eritrea is finalized, the President shall prepare and transmit on a 
  regular basis to the appropriate congressional committees a report that 
  contains a description of progress being made toward such demarcation, 
  including the extent to which Ethiopia and Eritrea are in compliance 
  with, or are taking significant steps to comply with, the terms and 
  conditions of the Algiers Agreements, and are otherwise cooperating 
  with internationally-sanctioned efforts to resolve the current impasse.
  
              Passed the House of Representatives October 8, 2004.
  
              Attest:
  
                                                   JEFF TRANDAHL,
  
                                                                   Clerk.
target: Resolution of the Ethiopia-Eritrea Border Dispute Act of 2004 - (Sec. 4) Expresses the sense of Congress that both Ethiopia and Eritrea should: (1) take all appropriate actions to implement the Algiers Agreements, including by accepting the "Delimitation Decision" issued by the neutral Boundary Commission on April 13, 2002, with respect to the boundary between the two countries; and (2) fully cooperate with the United Nations (UN) Special Envoy for Ethiopia-Eritrea.
  
  (Sec. 5) Declares that: (1) Congress expresses its support for the Boundary Commission established by the Comprehensive Peace Agreement and calls on the international community to continue to support the UN trust fund to facilitate the demarcation process between Ethiopia and Eritrea and the economic and social transition of affected communities to new borders; (2) it shall be U.S. policy to limit U.S. assistance for Ethiopia or Eritrea if either country is not in compliance with, or is not taking significant steps to comply with the Algiers Agreements; and (3) Congress strongly condemns statements by senior Ethiopian officials criticizing the Boundary Commission's decision and calls on the Government of Ethiopia to accept the Commission's decision.
  
  (Sec. 6) States that economic and military assistance for Ethiopia or Eritrea may only be provided for any period of time for which the President determines that either Ethiopia or Eritrea is in compliance with, or is taking significant steps to comply with, the Algiers Agreements. Authorizes presidential waiver of such provision for national security purposes. Exempts from such provision assistance for humanitarian or human rights purposes, or for HIV/AIDS control.
  
  (Sec. 7) Directs the President to establish, after finalization of the Ethiopian-Eritrean border demarcation, an integration and border development initiative, including projects to: (1) increase basic services; (2) develop free trade and community development; and (3) reinforce peace and reconciliation.
  
  (Sec. 8) Sets forth presidential reporting requirements.
feat_title: To limit United States assistance for Ethiopia and Eritrea if those countries are not in compliance with the terms and conditions of agreements entered into by the two countries to end hostilities and provide for a demarcation of the border between the two countries, and for other purposes.