Page:United States Statutes at Large Volume 104 Part 3.djvu/706

 104 STAT. 2058 PUBLIC LAW 101-513—NOV. 5, 1990 States (or any of its agencies) to Egypt under the Arms Export Control Act (all such loans being hereinafter collectively referred to as the "AECA Loans"). (3) Section 518 of this Act, section 620(q) of the Foreign Assistance Act of 1961, and any other provision that similarly restricts the furnishing of assistance to countries in default on payment to the United States of principal or interest shall not apply during the moratorium described in paragraph (1) with respect to amounts owed by Egypt under the AECA Loans. (4) Nothing in this subsection shall interfere with, or otherwise diminish, the obligation of the Secretary of Defense as guarantor with respect to the AECA Loans. (b) DEBT CONSOLIDATION IN THE DEPARTMENT OF DEFENSE. — As soon as feasible after the enactment of this Act, the Secretary of Defense shall— (1) issue to the Secretary of the Treasury sufficient notes or other obligations to purchase all notes made by Egypt evidencing amounts owed by Egypt to the United States (or any agency of the United States), other than amounts already owed to the Secretary of Defense, as a result of AECA Loans; and (2) purchase all such notes made by Egypt, such purchase being considered to discharge the responsibilities of the Secretary of Defense as guarantor of such notes. (c) PRESIDENTIAL REPORT ON THE REAL VALUE OF EGYPTIAN DEBT OWED TO THE UNITED STATES AND PRESIDENTIAL MILITARY DEBT REDUCTION AUTHORITY. —After the Department of Defense has taken the actions described in subsection (b)— (1) the President shall submit a report to Congress in which he determines the value of the AECA Losms and all other loans owed by Egypt to the United States based on realistic payment expectations as of October 1, 1990, and an explanation of the factors considered by the President in determining the value; and (2) after the President has submitted the report to Congress provided for in paragraph (1), the President may— (A) reduce the amount owed by Egypt to the Secretary of Defense to an amount that equals the value of the AECA Loans as determined by the President in the report described in paragraph (1); (B) direct the Secretary of Defense to amend, modify or otherwise alter the notes described in subsection (a)(2) so that the amended, modified or altered notes (the "amended notes") evidence a principal amount owed by Egypt to the Secretary of Defense equal to the value of the AECA Loans as determined under paragraph (1), and contain such terms and conditions as the President may determine consistent with the purposes of this section, provided that such terms and conditions shall not— (i) reflect any interest accrued in respect of the period between October 1, 1990, and March 31, 1991; and (ii) require Egypt to make any payment before March 31, 1991; and (C) reduce the amount owed by the Secretary of Defense under all notes or other obligations issued by

�