Legislation on foreign relations with explanatory notes

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Title:
Legislation on foreign relations with explanatory notes
Physical Description:
xviii, 2069 p. : ; 24 cm.
Language:
English
Creator:
United States
United States -- Congress. -- House. -- Committee on International Relations
United States -- Congress. -- Senate. -- Committee on Foreign Relations
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U.S. Govt. Print. Off.
Place of Publication:
Washington
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Subjects / Keywords:
Foreign relations -- Law and legislation -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
bibliography   ( marcgt )
non-fiction   ( marcgt )

Notes

Bibliography:
Includes bibliographical references and index.
Additional Physical Form:
Also available in electronic format.
Statement of Responsibility:
Committee on International Relations, U.S. House of Representatives, Committee on Foreign Relations, United States Senate, April 1976.
General Note:
At head of title: 94th Congress, 2d session. Joint committee print.

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University of Florida
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All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 025827728
oclc - 02411197
lccn - 74601437
Classification:
lcc - KF4650 .A3 1974
ddc - 342/.73/06
System ID:
AA00025944:00001

Full Text
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th Congr JOINT COMMITTEE PRINT






LEGISLATION ON FOREIGN RELATIONS

WITH EXPLANATORY NOTES



COMMITTEE ON INTERNATIONAL
RELATIONS
U.S. HOUSE OF REPRESENTATIVES

COMMITTEE ON FOREIGN RELATIONS
UNITED STATES SENATE










APRIL 1976






Pited for the use of the Committees on International Relations and Foreign
Rations of the House of Representatives and the Senate respectively

U.S. GOVERNMENT PRINTING OFFICE
65-B WASHINGTON : 1976

Fr sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402 Price $17.












COMMITTEE ON INTERNATIONAL RELATIONS
THOMAS E. MORGAN, Pennsylvania, Chairman
CLEMENT J. ZABLOCKI, Wisconsin WILLIAM S. BROOMFIELD, Michigan
WAYNE L. HAYS, Ohio EDWARD J. DERWINSKI, Illinois
L. H. FOUNTAIN, North Carolina PAUL FINDLEY, Illinois
DANTE B. FASCELL, Florida JOHN H. BUCHANAN, JR., Alabama
CHARLES C. DIGGS, JR., Michigan J. HERBERT BURKE, Florida
ROBERT N. C. NIX, Pennsylvania PIERRE S. oD PONT, Delaware
DONALD M. FRASER, Minnesota CHARLES W. WHALEN, JB., Ohio
BENJAMIN S. ROSENTHAL, New York EDWARD G. BIESTER, JR., Pennsylvania
LEE H. HAMILTON, Indiana LARRY WINN, JR., Kansas
LESTER L. WOLFF, New York BENJAMIN A. OILMAN, New York
JONATHAN B. BINGHAM, New York TENNYSON GUYER, Ohio
GUS YATRON, Pennsylvania ROBERT J. LAGOMARSINO, California
ROY A. TAYLOR, North Carolina
MICHAEL HARRINGTON, Massachusetts
LEO J. RYAN, California
DONALD W. RIEGLE, JR., Michigan
CARDISS COLLINS, Illinois
STEPHEN J. SOLARZ, New York
HELEN S. MEYNER, New Jersey
DON BONKER, Washington
GERRY E. STUDDS, Massachusetts



MARIAN A. CZARNECKI, Chief of Staff


COMMITTEE ON FOREIGN RELATIONS

JOHN SPARKMAN, Alabama, Chairman
MIKE MANSFIELD, Montana CLIFFORD P. CASE, New Jersey
FRANK CHURCH, Idaho JACOB K. JAVITS, New York
STUART SYMINGTON, Missouri HUGH SCOTT, Pennsylvania
CLAIBORNE PELL, Rhode Island JAMES B. PEARSON, Kansas
GALE W. McGEE, Wyoming CHARLES H. PERCY, Illinois
GEORGE McGOVERN, South Dakota ROBERT P. GRIFFIN, Michigan
HUBERT H. HUMPHREY, Minnesota
DICK CLARK, Iowa
JOSEPH R. BIDEN, JR., Delaware
PAT M. HOLT, Chief of Staff

(II)









FOREWORD


This collection of laws and related material contains texts referred
to by the Committees on International Relations of the House of Rep-
resentatives and Foreign Relations of the Senate, amended to date
and annotated to show pertinent history or cross references. No as-
sumption as to the importance or significance of any of the materials
is to be made because of inclusion or treatment herein.
This year the compilation was prepared under the direction of
James T. Schollaert of the Committee on International Relations with
the assistance of Walter Albano of the American Law Division, Ellen
C. Collier and Larry Nowels of the Foreign Affairs Division of the
Congressional Research Service of the Library of Congress, and Susan
Hall, Office of the General Counsel, Agency for International Devel-
opment.
THOMAS E. MORGAN,
Cha rman, Committee on International Relations.
JOHN SPARKMAN,
Chairman, Committee on Foreign Relations.
(III)



















Digitized by the Internet Archive
in 2013













http://archive.org/detai s/leginonfor00unit










EXPLANATORY NOTE


All public laws included in this volume, except as noted below, are
codified and in force through the end of the first session of the 94th
Congress. The texts of the public laws in this volume are printed as
they appear in the United States Statutes at Large rather than the
United States Code. Amendments are incorporated into the text and
distinguished by a footnote. The following public laws or sections
thereof remain in the volume although they have been repealed or, in
the case of section 6 of the Internal Security Act of 1950, held
unconstitutional:

1. Tonkin Gulf Resolution (page 270)
2. Section 6 of the Internal Security Act of 1950 (page 525)
3. Formosa Resolution (p. 1192)
All treaties included in this volume, except as noted below, are
currently in force. The lists of signatories to these treaties are updated
through January 1, 1976. The texts of the treaties have been codified,
with footnoting, to show them in amended form. Treaties included in
the volume but not presently in force for the United States are the
Convention Relating to the Status of Refugees on page 586 and the
Treaty for the Prohibition of Nuclear Weapons in Latin America
with Additional Protocol on page 1343.
All Executive orders, State Department regulations, and State
Department delegations of authority are codified and in force as of
January 1, 1976.
(V)









ABBREVIATIONS
Bevans-------------- Treaties and Other International Agree-
ments of the United States of America,
1776-1949, compiled under the direc-
tion of Charles I. Bevans.
CFR---------------- Code of Federal Regulations.
EAS ----------------- Executive Agreement Series.
F.R. ____------_---- Federal Register.
LNTS --------------- League of Nations Treaty Series.
I Malloy, II Malloy----- Treaties, Conventions, International
Acts, Protocols, and Agreements Be-
tween the United States of America
and Other Powers, 1776-1909, compiled
under the direction of the United
States Senate by William M. Malloy.
Stat _-------------- United States Statutes at Large.
TIAS-------------- Treaties and Other International Acts
Series.
TS ------------------ Treaty Series.
UNTS ----------- United Nations Treaty Series.
U.S.C. --------------- United States Code.
UST --- --------- United States Treaties and Other Inter-
national Agreements.
(VI)











CONTENTS

Page
FOREWORD ..... ......------------------------
EX ANATORY NOTE _-------------------- v
RABREVIATIONS I...-- ...----...-----.. ..- v
SFOREIGN ASSISTANCE----------- ----------------------- 1
1. Foreign Assistance Acts ------------------------------------ 5
a. The Foreign Assistance Act of 1961, as Amended------------- 5
b. International Development and Food Assistance Act of 1975
(partial text) --------------------------------------- 147
Report Regarding Implementation of Recommendations of
World Food Conference --------------------------- 147
International Organizations and Programs --------------- 147
Limitation on Assistance to Chile ---------------------- 147
Settlement of Debt Owed the United States ------- 148
Participation by Other Countries in Providing Assistance
to Israel or Egypt 1------------ --- --------- 48
c. Foreign Assistance Act of 1974 (partial text)--------------- 149
Ceiling on Fertilizers to South Vietnam --------------- 149
Review of Military Assistance Program ----------------- 149
Limitation Upon Assistance to or for Chile -------------- 150
Limitation on Military Assistance and Excess Defense
Articles to Korea--------------------------------- 150
Limitation on Assistance for India -------------------- 150
Famine or Disaster Relief ---------------------------- 150
Policy With Respect to Indochina -------------------- 151
Principles Governing Economic Aid to Indochina-- ------ 152
Indochina Postwar Reconstruction-------------------- 152
Assistance to South Vietnamese Children ---------------- 153
Limitations With Respect to South Vietnam ----------_ 154
Limitations With Respect to Cambodia ----------------- 156
Limitations With Respect to Laos -- -------------- 156
Nuclear Powerplants --- ----------------------------- 158
Gorgas Memorial Institute --------------------------- 158
International Commission of Control and Supervision in
Vietnam --------------------- --------- 158
Policy on Assistance to Africa ------------------------ 158
Policy on the Independence of Angola, Mozambique, and
Guinea-Bissau ----------------------------------- 159
Conventional Arms Trade..--------------------------- 160
Involvement of Puerto Rico in the Caribbean Development
Bank _ -------------- -------- 160
Policy With Respect to Countries Most Seriously Affected
by Food Shortages ---- ------------------- 160
Repayment of Loans in Default --------------------- 161
d. Foreign Assistance Act of 1973 (partial text)-------- ------ 163
Asian Development Bank Authorization --------------- 163
Termination of Indochina War ----------------------- 163
Limitation on Use of Funds for Indochina-------------- 163
Political Prisoners ---------- -------------------- 164
Albert Schweitzer Hospital Authorization ---- --------- 164
POW's and MIA's ----- -------- ------------ 164
Rights in Chile -..-- _-------- ------------------ 165
Revision of Social Progress Trust Fund Agreement ------ 165
Prohibition of Assistance to North Vietnam ---------- 166
Report Concerning Use of Military Assistance in Africa_- 166
World Food Shortages -------- ----------------- 166
Use of Local Currencies -------------- -------------- 167
(vII)






VIII
A. Foreign Assistance-Continued
1. Foreign Assistance Acts-Continued Page
e. Foreign Assistance Act of 1971 (partial text)---------------- 168
Food for Peace Reduction -------------------------- 168
Position of Under Secretary of State for Coordinating
Security Assistance------------------------------- 168
Periodic Authorizations for State and USIA------- ---- 1l6
Limitation on United Nations Assessment of United
States ----------------------------------- ----- 169
f. Special Foreign Assistance Act of 1971, as amended (partial
text)-- ----------------------------- 170
Authorization of Appropriations- _------------- 170
Transfer of Defense Articles to Korea ---------------- 170
Authorization of Local Currencies for Pakistan -------- 171
Limitation on Assistance to Cambodia -----------------171
g. Foreign Assistance Act of 1969, as amended (partial text)-- _-- 172
Part IV-The Inter-American Foundation Act ----------- 172
Part V-Amendments to Other Acts ------------------ 176
h. Foreign Assistance Act of 1968 (partial text) ---------------- 179
i. Foreign Assistance Act of 1967---------- --------------- 179
j. Foreign Assistance Act of 1966 ------------------ 179
k. Foreign Assistance Act of 1965-----------_---.------------- 179.
1. Foreign Assistance Act of 1964 (partial text) ---------------- 180
Religious Persecution------------------------------- 180
m. Foreign Assistance Act of 1963 ---- -----------------180
n. Foreign Assistance Act of 1962 -----------------------181
2. Foreign Assistance Appropriations ------------------------------- 182
a. Joint Resolution [Temporary Appropriations for Fiscal Year
1976], as amended (Public Law 94-41) (partial text) ------- 182
b. Joint Resolution [Temporary Appropriations for Fiscal Year
1976] (Public Law 94-159) ---------------------------- 186
c. Joint Resolution [Temporary Appropriations for Fiscal Year
1975], as amended (Public Law 94-324) (partial text) -------- 187
d. Joint Resolution [Temporary Appropriations for Fiscal Year
1975] (Public Law 93-448) (partial text)----------------- 191
e. Foreign Assistance and Related Programs Appropriation Act,
1975 ---------------------------------------------- 192
f. Supplemental Appropriation Act, 1955, as amended (partial
text-Sec. 1311, Valid Obligations) ------------- 204
3. Other Foreign Assistance Related Legislation ----_---------------- 206
a. Latin American Development Act, as amended (Public Law
86-735)-------------------------------------------- 206
[The Inter-American Foundation Act is on page 172.]
b. Mutual Security Act of 1959, as amended (Public Law 86-108)
(partialtext) -------------------------- ----------- 209
c. Mutual Security Act of 1954, as amended (retained provisions)_ 210
Sec. 402-Earmarking of Funds----------------------- 210
Sec. 408-North Atlantic Treaty Organization --------- 210
Sec. 414-Munitions Control ------------------------- 211
Sec. 417-Irish Counterpart_--- ------------- 212
Sec. 502-Use of Foreign Currency- ------------------ 212
Sec. 514-International Educational Exchange Activities- 214
Sec. 523-Coordination With Foreign Policy------------ 214
Sec. 536-Joint Commission on Rural Reconstruction in
China --------------------------------- 214
d. Mutual Defense Assistance Control Act of 1951, as amended
(Battle Act)---------------------------------------- 215
e. Use of Foreign Currencies:
(1) Supplemental Appropriation Act, 1953 (Section 1415,
Availability Foreign Credits) -------------------- 219
(2) General Government Matters Appropriation Act, 1962
(Public Law 87-125) (partial text-Sec. 508, Provi-
sion for Use of Foreign Credits by Federal Agencies)- 220
(3) Use of Reserved Foreign Currencies (Public Law
89-677)----------------------------------- 221
f. Amendment to Merchant Marine Act of 1936, as amended (50
percent of shipment on U.S.-flag vessels) -------------- 222!
g.' The Sugar Act of 1948, as amended (partial text-Sec. 408(e),
Provisions for Withholding Sugar Quota) ---___----------- 224
h. Fishermen's Protective Act of 1967, as amended (note)-- -- 225





Ix

A. Foreign Assistance-Continued
ther Foreign Assistance Related Legilation-Continued Page
i. Emergency Security Assistance Act of 1973 ---------- --_ 226
j. Forein Disaster Assistance Act of 1974 (partial text) (Public
Law 93-333) -------------------------------------- 228
[Indochina Migration and Refugee assistance legislation is
at pages 604-605.1
k. Amendments to the Board for International Broadcasting Act
of 1973 (partialtext) (Public Law 4-104) ---- --------- 229
Executive Orders and Delegations of Authority Relating to Foreign
Assistance ----------------------------------- ------ 232
a. Executive Order 10973, as amended (Administration of Foreign
Assistance and Related Functions) ----------------------- 232
b. State Department Delegation of Authority No. 104, as amended_ 240
c. Executive Order 11223 (Performance of Functions Authorized
by the Foreign Assistance Act of 1961, as amended) ------ 248
d. Executive Order 11579 (Overseas Private Investment Corpora-
tion) -----.---------------------------------------- 250
. oreign Military Sales------------------------------- 253
a. The Foreign Military Sales Act, as amended (Public Law 90-
629) ----------------------------------------------- 253
b. Foreign Military Sales Act Amendments, 1971, as amended
(Public Law 91-672) (partial text)----------------------- 267
Sec. 5-Sense of Congess Concerning Arms for Israel-- 267
ISec. 6-Sense of Congress for Review of Military Aid
Programs and Discussion on Control of Armaments and
Arms Trade ------------------------------------- 267
Sec. 7-Sale or Transfer of International Fighter Aircraft- 268
SSec. 8-Grants of Excess Defense Articles Charged Against
Appropriated Funds ----------------------------- 268
Sec. 10-Authorization Required Prior to Obligation or
Expenditure of Funds----------------------------- 270
Sec. 11-Definitions of Defense Article, Excess Defense
Articles, and Foreign Country----------------------- 270
Sec. 12-Repeal of Tonkin Gulf Resolution ------------ 270
Sec. 13-Detoxification of Chemical Munitions in Okinawa- 270
c. Executive Order 11501, as amended (Administration of Foreign
Military Sales) --------------------271
Armed Forces Authorizations and Appropriations ------------ 273
a. Department of Defense Appropriation Authorization Act, 1976
(Pu Law 94-106) (partial text)------------ 273
b. Department of Defense Appropriation Authorization Act, 1975
(Public Law 93-365) (partial text)-- ------------------- 275
c. Armed Forces Appropriation Authorization, 1971 (Public Law
91-441) (partial text)------------- ------------- ----- 279
d. Military Construction Appropriation Act, 1976 (Public Law
94-138) (partial text)--------- ------------------- 280
.Laws Relating to Loan or Sale of Vessels to Foreign Countries (Public
Law 84-1028) (partial text) --------------------------------- 281
GRICULTURAL COMMODITIES ----------------------- 283
SAgricultural Trade Development and Assistance---------------- 285
a. Agricultural Trade Development and Assistance Act of 1954,
as amended (Public Law 480)---------- 286
b. Extension of Agricultural Trade Development and Assistance
Act of 1954, as amended (partial text) ------------------- 310
c. Agricultural Trade Development and Assistance Act Appro-
priations, 1975 (Public Law 93-563) (partial text)-------- 312
Agriculture and Related Agencies Appropriation Act, 1976
(Public Law 94122) (partial text, Title IV-International
Programs) ---------------------------------------- 313
e. Executive Order 10900, as amended (Administration of the
Agricultural Trade Development and Assistance Act of 1954,
as amended)----------------------------------------- 315
SFoodfor P e acProgram ---_ _ _ -------------------- 320
a. Food for Peace Act of 1966 (Public Law 89-808) (partial text) -- 320
b. Memorandum by the President Describing the Role of the
Director, Food for Peace Program --------- ------------ 321
C. Executive Order 11252 (Food for Peace Program) ------------ 324






x

Page
C. THE PEACE CORPS------------------------- ----------- 325
1. The Peace Corps Act, as amended------------------------------- 327
2. Independent Implementing Provisions of Public Law 89-134----_---- 347
3. Domestic Volunteer Service Act of 1973 (Public Law 93-113) (partial
text) -----------------------------------------------------.- 348
4. Executive Order 11603 (Assigning Additional Functions to the Director
of ACTION) ---------------------------------------------- 349
5. Executive Order 11103 (Providing for the Appointment of Former
Peace Corps Volunteers to the Civilian Career Services) ----------_ 350
D. DEPARTMENT OF STATE----------------------_------------ 355
1. Scope of Responsibilities and Authority -------- ------- 359
a. Foreign Relations Authorization Act, Fiscal Year 1976 (Public
Law 94-141) (partial text)--------------------------- -359
b. State Department/USIA Authorization Act, Fiscal Year 1975
(Public Law 93-475) (partial text)---------------------- 364
c. Department of State Appropriations Authorization Act of 1973,
as amended (Public Law 93-126) (partial text) -------- --- 366
d. Foreign Relations Authorization Act of 1972, as amended
(Public Law 92-352) (partial text) ---- -------------- 369
e. Department of State Appropriations, 1976 (Public Law 94-121
(partial text) ------------------------------------- 373
f. Basic Authority for the Department of State, as amended
(Public Law 84-885)----------------- 383
g. The Immigration and Nationality Act, as amended (Public
Law 82-414) (partial text) ----------------------- 390
h. Transmittal of International Agreements-Case Act (Public Law
92-403)-------------------------------------------- 392
i. State Department Transmittal Letter on Treaties and Other
International Agreements (partial text of circular 175) ------ 393
j. Executive Order 11742 (Delegating to the Secretary of State
Certain Functions With Respect to the Negotiation of
International Agreements Relating to the Enhancement of
the Environment) ------------------------------------ 408
k. Executive Order 11651 (Textile Trade Agreements) -- ----- 409
1. Executive Order 11539 (Delegation of Authority to Negotiate
Agreements and Issue Regulations Limiting Imports of
Certain Meats)_-------------------------- ------------ 411
m. Executive Order 11517 (Providing for the Issuance and Signa-
ture by the Secretary of State of Warrants Appointing Agents
to Return Fugitives From Justice Extradited to the United
States)----------------------------------------------- 412
n. Executive Order 11490 (Assigning Emergency Preparedness
Functions to the Department of State) ------------------ 413
o. Executive Order 11423 (Providing for the Performance of Cer-
tain Functions Heretofore Performed by the President With
Respect to Certain Facilities Constructed and Maintained on
the Borders of the United States ---_---- ----------- 415
p. State Department Delegation of Authority No. 121 (Imports
of Certain Meats) --------------------------------- 418
q. Memorandum on Action to Combat Terrorism, September 25,
1972 __---------- ----------- ----419
r. Memorandum on International Narcotics Control, August 17,
1971----------------------------------------------- 421
2. Organization and Administration----- --------------------------- 423
a. Foreign Service Act of 1946, as amended------------------ 427
b. Strengthening the Organization and Administration of the
Department of State (Public Law 81-73, as amended) ----- 503
c. Executive Order 11636 (Employee-Management Relations in
the Foreign Service of the United States)----------------- 505
d. Executive Order 11264, as amended (Board of the Foreign
Service and Board of Examiners for the Foreign Service) .. 514





I Xi

SD. Department of State-Continued
2. Organization and Administration-Continued
e. Interdepartmental Operations of the U.S. Government Over- Page
eas------------------------------------------------ 517
(1) Presidential Announcement of the Structure, Role, and
Staff of the National Security Council------------- 517
(2) Department of State Foreign Affairs Manual Circular
No. 521, February 6, 1969 (Reorganization of the
National Security Council System and Direction,
Coordination and Supervision of Interdepartmental
Activities Overseas)---------------------------- 519
3. Passport Laws and Regulations----------------------------------- 522
a. Protection of Citizens Abroad (Act of July 27, 1868) ----------- 522
b. Passport Authority-------------------------------------- 523
(1) Secretary of State's Passport Authority (Act of July 3,
1926) (partial text)----------------------------- 523
(2) Executive Order 11295 (Delegation of Authority) --- -- 523
c. Passport Limitations-------------------------------------- 524
(1) Allegiance to the United States (Act of July 14, 1902) - 524
(2) Application for Passport (Act of June 15, 1971, as
amended) ------------------------------------ 524.
(3) Five Year Validity of Passport (Act of July 3, 1926, as
amended) (partial text) ------------------------ 524
(4) Fees (Act of June 4, 1920, as amended) (partial text) -_ 524
(5) Denial of Passports to Members of Communist Orga-
nizations (Act of September 23, 1950, as amended)
(partial text) ------------------------------ 525
d. Regulations of the Secretary of State, as amended (Subjects:
Nationality Procedures, Passports, Marriage, Travel Control
in Time of War or National Emergency) ------------------- 526
e. Emergency Provisions ---- ---------------- --- 551
(1) Travel Control of Citizens and Aliens During War or
National Emergency (Immigration and Nationality
Act of 1952) (partial text)---------------------- 551
(2) Presidential Proclamation 3004 (Control of Persons
Leaving or Entering the United States) ------------ 553
f. Criminal Provisions ------- -------------------------- 556
(1) Punishable Violations (Act of June 25, 1948) (partial
text) ---------------------------------- 556
(2) Statute of Limitations (Act of June 30, 1951) (partial
text) --------------------------------------- 557
4. Foreign Service Building--s 558
a. Foreign Service Buildings Act, 1926, as amended -------------- 558
b. The Act of July 25, 1946 (Authorizing Funds for Acquisition of
Buildings and Grounds in Foreign Countries) --------------- 564
c. The Act of May 25, 1938 (Authorizing Additional Funds for
Buildings for the Use of Diplomatic and Consular Establish-
ments of the United States) ---------------565
5. Transfer of Property-For Use as a Headquarters Site for the Organiza-
tion of American States (Public Law 90-553, as amended) ----------- 566
6. Foreign Gifts and Decorations ------------------------------ 568
a. Foreign Gifts and Decorations Act of 1966, as amended (Public
Law 89-673) ----------------------------------- 568
b. Receipt and Disposition of Foreign Gifts and Decorations
(Public Law 90-83) (partial text) ----------------------- 569
c. Executive Order 11320 (Delegating Authority to Prescribe Rules
and Regulations Relating to Foreign Gifts and Declarations)_ 571
d. Regulations of the Secretary of State (Acceptance of Gifts and
Decorations from Foreign Governments) _----------------- 572
e. Senate Resolution 314, 90th Congress, July 19, 1968 ----------- 575






XII

D. Department of State-Continued Page
7. Migration and Refugee Assistance------------------------------- 576
a. Migration and Refugee Assistance Act of 1962, as amended- -- 576
b. Executive Order 11077 (Administration of the Migration and
Refugee Assistance Act of 1962)-------------------------- 580
c. Protocol Relating to the Status of Refugees (with reservation) 581
d. Convention Relating to the Status of Refugees ----------- 586
e. Indochina Migration and Refugee Assistance Act of 1975 (Public
Law 94-23) ------- ------------------------------ 604
f. Appropriations for Special Assistance to Refugees from Cam-
bodia and Vietnam (Public Law 94-24) ------------------ 606
8. Recognition by the United States of Foreign Governments (S. Res. 205,
91st Congress)---------- --------------------- ----- 607
E. INFORMATION AND EDUCATIONAL AND CULTURAL EX-
CHANGE PROGRAMS--------_ ------__ ------_-----. 609
1. United States Information and Educational Exchange Act and Related
Materials ----------------------- ------ ------ -- 611
a. United States Information and Educational Exchange Act of
1948, as amended------------------------------------ 611
b. United States Information Agency Appropriations Authorization
Act of 1973 (Public Law 93-168) (partial text) ----------- 627
c. USIA Appropriations, 1976 (Public Law 94-121) (partial
text) ---------------------------------------------- 628
d. Reorganization Plan No. 8 of 1953 (Establishing the USIA)__ 631
e. Executive Order 10477, as amended (Functions of the Director
of the USIA) ---------------------------------------- 633
f. Memorandum by the President to the Director, U.S. Informa-
tion Agency, Describing the Mission of the Agency, Janu-
ary 25, 1963 ------------------------------------- 636
g. Executive Order 11522 (Assigning Emergency Preparedness
Functions to the USIA) -------- ----------------- 637
h. Public Law 89-274 (USIA Film "John F. Kennedy-Years of
Lightning, Day of Drums") ------------------------- 639
i. Public Law 90-494 (Foreign Service Information Officer Corps) 640
j. Executive Order 11434 (Foreign Service Personnel Systems) - 646
2. Mutual Educational and Cultural Exchange Act and Related Materials- 648
a. Mutual Educational and Cultural Exchange Act of 1961, as
amended (Fulbright-Hays Act) -------------------------- 648
b. Executive Order 11034, as amended (Administration of the
Mutual Educational and Cultural Exchange Act of 1961)--- 662
c. State Department Delegation of Authority No. 105, as amended- 667
3. Center for Cultural and Technical Interchange Between East and West
Act of 1960 (Partial Text of Mutual Security Act of 1960) --------_ 669
4. Other Material Relating to International Educational Exchange------ 671
a. International Education Act of 1966, as amended (Public Law
89-698) (partial text)--------------------------------- 671
b. International Educational Exchange Activities (Public Law
83-665) (partial text)--------------------------------- 677
c. Japan-United States Friendship Act (Public Law 94-118)----- 678
5. Exchange of Materials and Objects------------------------------ 683
a. Agreement for Facilitating the International Circulation of
Visual and Auditory Materials of an Educational, Scientific,
and Cultural Character (Beirut Agreement of 1949) ------- 683
b. Executive Order 11311 (Carrying Our Provisions of Beirut
Agreement of 1949)--- -------------------------- 689
c. Agreement on the Importation of Educational, Scientific, and
Cultural Materials (Florence Agreement) (with reservation) 690
d. Exemption from Judicial Seizure of Cultural Objects Imported
for Temporary Exhibition ------------------------------ 699
(1) Public Law 89-259 _------------------------- --- 699
(2) Executive Order 1131 (Designating Secretary of State
to Perform Functions Relating to Certain Objects of
Cultural Significance Imported Into the United States
for Temporary Display or Exhibition) ------------ 700






E. Information and Education and Cultural Exchanges Programs-
Continued rage
6. Patent Cooperation Treaty Act (Public Law 94-131)--------------- 701
7. United States Recognition and Participation in International Exposi-
tions (Public Law 91-269) ------------------------------------ 710
8. Board for International Broadcasting Act of 1973 (Radio Free Europe/
SRadio Liberty)-------------------------------------------- 713
a. Public Law 93-129, as amended-- ------------------------- 713
b. Appropriations, 1975 (Public Law 93-433) (partial text) ------- 717
F. UNITED NATIONS AND OTHER INTERNATIONAL ORGANIZA-
TIONS -------------------------------------------------- 719
1. Charter of the United Nations (amended) ------------------------ 721
2. Statute of the International Court of Justice ---------------------- 746
Connally Reservation ------------------------------------. 759
3. List of Members of the United Nations -------------------------- 760
4. The United Nations Participation Act of 1945, as amended (Public
Law 79-264) --------------------------------------------- 762
5. The United Nations Headquarters Agreement Act (Public Law 80-
357) ---------------------------------------------------- 768
6. Agreement Between the United Nations and the United States Re-
garding the Headquarters of the United Nations (amended) ------ 770
7. Appropriations Limitation on Contributions to International Organi-
zations (Public Law 92-544) (partial text) ---------------------- 782
8. Authorizing Loans to the United Nations ------------------------ 784
a. Effecting a Loan Agreement of the United States and the
United Nations Signed at Lake Success, New York, March
23, 1948 (Public Law 80-903) -------------------------- 784
b. Authorizing a Loan to the United Nations (Public Law 87-
731)------------------------------- ------- 789
9. Rhodesia Resolution ...----------------------------------------- 790
a. Security Council Resolution 253, Adopted May 29, 1968----- 790
b. Executive Order 11419 (Relating to Trade and Other Trans-
actions Involving Southern Rhodesia) ...-------------------794
c. Armed Forces Appropriation Authorization, 1972 (Public
Law 92-156) (partial text) ------------------------797
10. United Nations Peacekeeping Forces in the Middle East (Public Law
94-37) ----------------...............---------------------------------- 798
11. Response to United Nations Resolution on Zionism (House Resolution
855, 94th Congress) ---------------------------------------- 799
12. United Nations Environment Program Participation Act of 1973
(Public Law 93-188) --------------------------------------- 800
13. Privileges and Immunities----- -------------------------------- 801
a. The International Organizations Immunities Act, as amended
(Public Law 79-291) (partial text)- -------------------- 801
b. Convention of Privileges and Immunities of the United Nations
(with reservation) ------------------------------------ 810
c. Extending Certain Privileges to Representatives of Member
States on the Council of the Organization of American States
(Public Law 82-486, as amended) ---------------------- 819
d. Extending Diplomatic Privileges to the Mission of the Com-
mission of the European Communities (Public Law 92-499) - 820
e. Act for the Protection of Foreign Officials and Official Guests of
the United States (Public Law 92-539) ------------------821
f. Executive Protective Service (Public Law 80-771, as amended)
(partial text) ---------------------------------------825
g. Diplomatic Privileges and Immunities for the Liaison Office of
the People's Republic of China (Public Law 93-22) -------- 826
h. Executive Order 11771 (Extending Diplomatic Privileges and
Immunities to the Liaison Office of the People's Republic of
China in Washington, D.C., and to Members Thereof) ----- 827
G. FINANCIAL INSTITUTIONS ----------------------------------- 829
1. Export-Import Bank Act of 1945, as amended (Public Law 79-173) 831
2. Export Expansion ------------------- ------------------ ------841
a. Public Law 90-390 (Improving the U.S. Balance of Payments)- 841
b. Executive Order 11420 (Establishing the Export Expansion
Advisory Committee) ---------------------------------- 843





XIV

G. Financial Institutions-Continued Page
3. Bretton Woods Agreements Act, as amended (Public Law 79-171)... 844
4. Special Drawing Rights Act, as amended (Public Law 90-349)------- 854
5. Par Value Modification Act, as amended (Public Law 92-268)------- 856
6. Foreign Currency Reports (Public Law 93-110) (partial text)- ------ 858
7. Executive Order 11269, as amended (National Advisory Council on
International Monetary and Financial Policies) .---------------- 860
8. International Monetary Fund-----------.---------------------- 863
a. Articles of Agreement (amended)------------------------- 863
b. Text of the Decision of the Executive Directors of the Inter-
national Monetary Fund, January 5, 1962 ---------------... 919
c. Exchange of Correspondence Between M. Wilfrid Baum-
gartner, Minister of Finance, France, and Douglas Dillon,
Secretary of the Treasury, United States ------------------926
9. International Bank for Reconstruction and Development (Amended
Articles of Agreement) ------------------------------------ 929
10. International Finance Corporation ----------------------------_ 955
a. International Finance Corporation Act, as amended (Public
Law 84-350)---------------------------- ----------- 955
b. Articles of Agreement (amended) ------------------------- 959
11. Inter-American Development Bank ----------------------------- 976
a. Inter-American Development Act, as amended (Public Law
86-147) ---------------------------------------- 976
b. Agreement Establishing the Inter-American Development
Bank (amended) ---------------------------------- 985
12. International Development Association -----------_---------- 1014
a. International Development Association Act, as amended (Pub-
lic Law 86-565)------------------------------------ 1014
b. Articles of Agreement ----------------------------- 1021
13. Asian Development Bank ------------------------------------ 1041
a. Asian Development Bank Act, as amended (Public Law 89-
369)--------------------------------------------- 1041
b. Articles of Agreement (with declaration) ------------------ 1047
14. Settlement of Investment Disputes -------------------------- 1081
a. Convention on the Settlement of Investment Disputes Act
of 1966 (Public Law 89-532) ------------------------ 1081
b. Convention on the Settlement of Investment Disputes Between
States and Nationals of Other States-- ---------- 1082
c. Resolution 65-14, Approval for Submission of Settlement of
Investment Disputes-------------------------------- 1099
H. WAR POWERS, COLLECTIVE SECURITY TREATIES, AND RE-
LATED MATERIAL--------------------------------------1101
1. War Powers --------------------------------------------1103
a. War Powers Resolution (Public Law 93-148) ---------------1103
b. Presidential Proclamation 2914 (Proclaiming the Existence of
a National Emergency) ------- ---------------------1108
2. Latin America --------- ------------------------------------ 1110
a. Inter-American Treaty of Reciprocal Assistance------------- 1110
b. Organization of American States --- --------__- 1116
(1) Charter of the Organization of American States as
amended by the Protocol of Amendment (with
reservations) --------------------- 1116
(2) Protocol of Amendment to the Charter of the Organiza-
tion of American States (Protocol of Buenos Aires)__ 1145
c. Act of Bogot --------------------------------------- 1148
d. The Charter of Punta del Este, Establishing an Alliance for
Progress Within the Framework of Operation Pan America_- 1154
e. Cuban Resolution (Public Law 87-733) ----------------- 1167
f. Resolution on Communist Subversion in the Western Hemi-
sphere (H. Res. 560, 89th Cong., agreed to September 20,
1965)-------------------------------------------- 1168




XV

H. War Powers, Collective Security Treaties, and Related Material-
Continued Page
3. North Atlantic Treaty (amended)--------------------------- 1169
4. Berlin Resolution (H. Con. Res. 570, 87th Congress) ------- 1173
5. Mutual Defense Treaty Between the United States of America and the
Republic of the Philippines ----------- -------------- 1174
6. Security Treaty Between Australia, New Zealand, and the United
States of America ------------------ ----------------------- 1176
7. Mutual Defense Treaty Between the United States of America and
the Republic of Korea (with understanding) -------------------1179
8. Southeast Asia Collective Defense Treaty and Protocol Thereto (with
understanding) ------------------------------------------- 1181
9. Indochina Resolutions --------------------------------------- 1185
a. Tonkin Gulf Resolution (Public Law 88-408) (Repealed)--- 1185
b. United States Servicemen Missing in Southeast Asia (H. Res.
335, 94th Congress)--------------------1186
10. Mutual Defense Treaty Between the United States of America and
the Republic of China------------------------------------ 1188
11. Formosa Resolution (Public Law 84-4) (Repealed) ----------------1192
12. Treaty of Mutual Cooperation and Security Between the United States
of America and Japan------------------------------------- 1193
13. Middle East Resolutions ----------------------------------- 1200
a. Resolution to Promote Peace and Stability in the Middle East
(Public Law 85-7)------------------------------- 1200
b. Deploring the Outbreak of Hostilities in the Middle East
(S. Res. 179, 93d Congress)--------------------------- 1202
c. Relating to the National Security of the United States (S. Res.
200, 93d Congress)--- ------------------------------ 1203
d. Security Council Resolution 242 (1967) ------------------ 1204
e. Security Council Resolution 338 (1973) ------------------- 1205
f. Implementing the United States Proposal for the Early Warning
System in Sinai (Public Law 94-110) ------------------- 1206
14. Resolution to Express the Sense of the Senate on the Agreement of
Friendship Between the United States and Spain (S. Res. 469, 91st
Congress) ----------------------------------------------- 1208
15. Resolution Relative to the Submission of Any Portuguese Base Agree-
ment as a Treaty (S. Res. 214, 92d Congress) ------------------ 1209
16. National Commitment (S. Res. 85, 91st Congress) --------------1210
L ENERGY AND NATURAL RESOURCES ---- ---------- 1211
1. Atomic Energy Act and Related Materials --- ----------------1213
a. Atomic Energy Act of 1954, as amended (Public Law 83-703)
(phrtial text) -------------------------------------- 1213
b. EURATOM Cooperation Act of 1958, as amended (Public
Law 85-846) ---------------------------------------1236
c. EURATOM Resolution (S. Con. Res. 116, 85th Congress)-- 1240
d. International Atomic Energy Agency Participation Act of 1957,
as amended (Public Law 85-177) -- --------------- 1241
e. Executive Orders Concerning International Atomic Coopera-
tion .-.. 1245
(1) Executive Order 11057 ------------------------1245
(2) Executive Order 10899 --------------------- 1246
(3) Executive Order 10841, as amended -------------1247
2. Energy Management ------------------------- 1249
a. Federal Energy Administration Act of 1974 (Public Law 93-275)
(partial text) -------------------------- 1249
b. Energy Supply and Environmental Coordination Act of 1974,
as amended (Public Law 93-319) ------------------- 1254
c. Energy Policy and Conservation Act (Public Law 94-163)
E (partial text) _---------_--------- -----_---- 1258
d. Agreement on an International Energy Program ------------ 1275





XVI

I. Energy and Natural Resources-Continued
3. Solar Energy Research, Development, and Demonstration Act of 1974 Page
(Public Law 93-473) (partial text) --------- ----------------. 1299
4. Domestic Stock of Critical Materials ---------------------------- 1301
a. National Commission on Supplies and Shortages Act of 1974, as
amended (Public Law 93-426) (partial text)-.------------.. 1301
b. Defense Production Act Amendments of 1975, as amended
(Public Law 94-152) (partial text)--------------------. 1305
c. Strategic and Critical Materials Stock Piling Act, as amended
(Public Law 76-117) (With List of Basic Stockpile Materials) 1310
5. Negotiations With Canada Concerning the Alaska Pipeline (Public Law
93-153) (partial text) __------- -------------------------- 1316
J. ARMS CONTROL AND DISARMAMENT --------------------- 1317
1. Arms Control and Disarmament Act, as amended (Public Law 87-297)- 1319.
2. Treaties and Agreements ---------------------- ----------. 1334
a. Nuclear Test Ban Treaty -------------------------------1334
b. Treaty on the Non-Proliferation of Nuclear Weapons --------1337
c. Prohibition of Nuclear Weapons in Latin America ---------- 1343
(1) Additional Protocol II --------------------------_1343
(2) Understandings and Declarations Included in the U.S.
Instrument of Ratification---------------- ---- 1345
d. Agreement on Measures To Reduce the Risk of Nuclear War
Between the United States of America and the Union of
Soviet Socialist Republics ----------------------------- 1347
e. Seabed Arms Control Treaty ----------------------------1349
f. SALT Agreements ------------------------------------1353
(1) Joint Resolution on Interim Agreement (Public Law 92-
448) -------------------------------------1353
(2) Treaty on the Limitation of Anti-Ballistic Missile
Systems ------------------------ ------------ 1355
(3) Interim Agreement on Certain Measures With Respect
to the Limitation of Strategic Offensive Arms, With
Associated Protocol -------------------------- 1360
(4) Agreed Interpretations and Unilateral Statements----- 1363
(5) Standing Consultative Commission on Arms Limitation- 1370
(6) Standing Consultative Commission on Arms Limitation:
Regulations------------------_------------ 1372
g. Agreement on the Prevention of Nuclear War---------------1374
h. Agreements on Chemical and Biological Weapons------------- 1376
(1) Geneva Protocol of 1925 (with reservations)----------1376
(2) Biological Weapons Convention ------------------- 1378
(3) Executive Order 11850 (Renunciation of Certain Uses
in War of Chemical Herbicides and Riot Control
Agents ------------------------------------- 1383
K. AVIATION AND SPACE ------------------------------------ 1385
1. Unlawful Seizure of Aircraft ----------------------------------- 1387
a. Antihijacking Act of 1974 (Public Law 93-366) (partial text)_- 1387
b. Convention for the Suppression of Unlawful Seizure of Aircraft_ 1393
2. Communications Satellite Act of 1962, as amended (Public Law 87-624) 1398
3. Executive Order 11191, as amended (Carrying Out Communications
Satellite Act of 1962) ___--__________----------------------- 1409
4. Executive Order 11556 (Assigning Telecommunications Functions)--- 1411
5. Treaty on Outer Space --------_-_-_-------------------------- 1415
6. Astronaut Assistance and Return Agreement ---------------------- 1421
7. Convention on International Liability for Damage Caused by Space
Objects -------------------------------------------------1425
8. International Cooperation in Scientific Research-------- ----------- 1433
a. National Science Foundation Act, as amended (Public Law 81-
507) (partial text)----------------------------------- 1433
b. National Aeronautics and Space Act of 1958 (Public Law 85-
568) (partial text)----------------------------------- 1434
c. National Aeronautics and Space Administration Authorization
Act (Public Law 94-39) (partial text) -------------------- 1435




XVII

Page
L. LAW OF THE SEAS AND SELECTED MARITIME LEGISLATION 1437
1. Law of the Seas -.-------------------------------------------- 1439
a. Convention on the Territorial Sea and the Contiguous Zone.-- 1439
b. Convention on the High Seas ---------------------------- 1447
c. Convent on Fishing and Conservation of the Living Re-
sources of the igh Seas (with reservation)---------------1456
d. Convention on the Continental Shelf----------- ------ 1463
e. United States Ocean Policy at the Law of the Sea Conference
(House Resolution 330, 93d Congress, agreed to April 2,
1973) --. -------------------------------- 1467
f. Endorsing the Objectives of the President's Ocean Policy State-
ment (Senate Resolution 82, 93d Congress, agreed to July 9,
1973) --------------------------------- -----1469
2. Oil Pollution ---------------------- --------------- 1471
a. Oil Pollution Act, 1961, as amended (Public Law 87-167) --- 1471
b. Intervention on the High Seas Act (Public Law 93-248)---- 1477
c. Deepwater Port Act of 1974 (Public Law 93-627) (partial text) 1480
3. Northwest Atlantic Fisheries Act of 1950, as amended (Public Law
81-845)------------------------------------------------- 1486
4. North Pacific Fisheries Act of 1954, as amended (Public Law 83-579) 1493
5. Tuna Conventions ------------------------------------------ 1500
a. Tuna Convention Act of 1950, as amended (Public Law
81-764) --------- --------------------- 1500
b. Atlantic Tunas Convention Act of 1975 (Public Law 94-70) - 1507
6. Whaling Convention Act of 1949 (Public Law 81-676) ----------- 1517
7. Bilateral Inter-American Fishing Agreements with the United States_ 1523
a. Brazil-Offshore Shrimp Fisheries Act (Public Law 93-242)_-- 1523
b. Canada-Sockeye Salmon or Pink Salmon Fishing Act of 1947,
as amended (Public Law 80-255)--------------------- 1532
8. Fishermen's Protective Act of 1967, as amended (Public Law 83-680). 1538
9. Endangered Species Act of 1973 (Public Law 93-205) (partial text)-__ 1544
10. Marine Mammal Protection Act of 1972, as amended (Public Law
92-522) (partial text) -- ---------------.------------ 1553
M. FOREIGN ECONOMIC POLICY: TARIFF AND TRADE LAWS-- 1563
1. Trade Act of 1974 and related documents----------.----- 1565
a. Trade Act of 1974 (Public Law 93-618) (partial text) ------ 1565
b. Executive Order 11888 (Implementing the Generalized System
of Preferences) ----- ------1644
c. Romania-U.S. Trade Relations ------------------------ 1650
(1) Executive Order 11854 (Waiver Under the Trade Act
of 1974 with Respect to the Socialist Republic of Roma-
nia)------------------------------------ 1650
(2) Presidential Proclamation 4369 (Agreement on Trade
Between the United States of America and the Socialist
Republic of Romania) ----------------------------- 1651
d. Executive Order 11846 (Administration of the Trade Agree-
ments Program) ----------------------------------- 1653
2. Trade Expansion Act of 1962, as amended (Public Law 87-794) ----- 1658
3. The General Agreement on Tariffs and Trade--------------------- 1671
a. The General Agreement on Tariffs and Trade (amended) -----1671
b. Protocol Amending the General Agreement on Tariffs and
Trade To Introduce a Part IV on Trade and Development_ 1730
c. International Antidumping Code------------------------ 1737
4. Antidumping Legislation ------------------------------------ 1748
a. Antidumping Act, 1921, as amended (Public Law 67-10)
(partial text)----------------------- 1748
b. Administration of the Antidumping Act, 1921 (Public Law
90-634) ----- --------------------------- 1760
5. Export Administration ----- ------------------------- 1761
a. Export Administration Act of 1969, as amended (Public Law
91-184) _.---__ ------_------------------------- -- 1761
b. Executive Order 11533 (Administration of the Export Admin-
istration Act of 1969)-- ------------------------- 1775
c. Executive Order 11753 (Establishing the President's Export
Council)---- -------- ------------------1777
65-998 O-76----2





XVIII

M. Foreign Economic Policy: Tariff and Trade Laws-Continued
6. Trading With the Enemy Act of 1917, as amended (Public Law 65-91) Page
(partial text) ------------------------------------------------- 1779
7. Johnson Act-Financial Transactions With Foreign Governments (Pub-
lic Law 80-722) (partial text) -------------- ------------- 1781
8. International Economic Policy Act of 1972, as amended (Public Law
92-412) ----- --------- ------------------------- 1782
9. Foreign Investment in the United States - -- ------------- 1787
a. Foreign Investment Study Act of 1974 (Public Law 93-479)- 1787
b. Executive Order 11858 (Foreign Investment in the United
States) ------------------------------------------- 1792
10. International Wheat Agreement------------------------------- 1794
a. Wheat Trade Agreement, 1971 (amended)------------------ 1794
b. Food Aid Convention, 1971 (amended)- -----_-------___ 1809
c. Protocols for the Further Extension of the Wheat Trade Con-
vention and the Food Aid Convention -------------------1812
11. Resolution With Respect to the World Food Situation-------------1820
12. Collection and Publication of Foreign Commerce and Trade Statistics- 1822
N. OTHER LEGISLATION AND DOCUMENTS-----------_-------- 1825
1. Provisions of Law Relating to Travel Outside the United States--- -1827
a. Local Currency Availability ----------------------------- 1827
b. Reporting Requirements for House Interparliamentary Groups
(Legislative Branch Appropriation Act of 1961, as amended)
(partial text) ---------------------------------------1829
c. Availability of Funds for Field Examination of Estimates
(Public Law 83-207) (partial text) ----------------- 1831
d. International Air Transportation Fair Competitive Practices
Act of 1974 (Public Law 94-623) (partial text)------------1832
2. Legislation Authorizing U.S. Participation in Parliamentary Confer-
ences -- ----------------------------------------------1834
a. Interparliamentary Union ------------------------------- 1834
(1) Public Law 74-170, as amended- ----------------- 1834
(2) Public Law 75-354----------------------------- 1835
(3) Public Law 85-474, as amended ------------------ 1835
b. Canada-United States Interparliamentary Group (Public Law
86-42) -------------------------------------- 1836
c. Mexico-United States Interparliamentary Group (Public Law,
86-420) --------------------------------------------1837
d. United States Group of the North Atlantic Assembly (Public
Law 84-689, as amended)----------------------------- 1838
3. International Claims Settlement Acts ---------------------------1840
a. International Claims Settlement Act of 1949, as amended (Public
Law 81-455)-_ --- ----------------------------- 1840
b. Foreign Claims Settlement Commission Appropriations, 1976
(Public Law 94-121) (partial text) ------------------- 1876
c. Ryukyu Claims Settlement Act (Public Law 89-296) ---------1877
d. Micronesian Claims Act of 1971, as amended (Public Law
92-39) -------------------------------- 1879
(1) Civil Government for the Trust Territory of the Pacific
Islands, as amended (Public Law 83-451) --------1885
(2) Trust Territory Economic Development Loan Fund,
as amended (Public Law 92-257) ---------------- 1889
4. Registration of Foreign Agents--------------------------------- 1890
a. The Foreign Agents Registration Act of 1938, as amended
(Public Law 75-583) ____-- ------------------------- 1890
b. Contributions by Agents of Foreign Principals and Conflicts of
Interest (Public Law 89-486) (partial text) --------------- 1905
5. Logan Act-Private Correspondence With Foreign Governments (Public
Law 80-772) ----------------------------- 1907
6. International Bridge Act of 1972 (Public Law 92-434) ------------- 1908
INDEX ---------------------------------- 1911










A. FOREIGN ASSISTANCE
CONTENTS
Page
1. Foreign Assistance Acts .........---------- ..... -- 1
a. The Foreign Assistance Act of 1961, as amended .------------ 9
b. Internatlonal Development and Food Assistance Act of 1975
(partial text)----------------------------------------- 147
Report Regarding Implementation of Recommendations
of World Food Conference--------------------147
International Organizations and Programs--------------- 147
Limitation on Assistance to Chile---------------------- 147
Settlement of Debt Owed the United States ------------- 148
Participation by Other Countries in Providing Assistance to
Israel or Egypt----------------------------------- 148
c. Foreign Assistance Act of 1974 (partial text) ---------------- 149
Ceiling on Fertilizers to South Vietnam ---------------- 149
Review of Military Assistance Program----------------- 149
Limitation Upon Assistance to or for Chile -------------- 150
Limitation on Military Assistance and Excess Defense
Articles to Korea--------------- ------------------- 150
Limitation on Assistance for India---------------------- 150
Famine or Disaster Relief---.------- --------------- 150
Policy With Respect to Indochina-..------------------ 151
Principles Governing Economic Aid to Indochina -------- 152
Indochina Postwar Reconstruction ..------------------- 152
Assistance to South Vietnamese Children.-------------- 153
Limitations With Respect to South Vietnam------------- 154
Limitations With Respect to Cambodia-------- -------- 156
Limitations With Respect to Laos--------------------- 156
Nuclear Powerplants ------------------------------- 158
Gorgas Memorial Institute-..-------------------------- 158
International Commission of Control and Supervision in
Vietnam-------------------------------------158
Policy on Assistance to Africa ----------------------- 158
Policy on the Independence of Angola, Mozambique, and
Guinea-Bissau---- -- --------------------------- 159
Conventional Arms Trade ------------------------- 160
Involvement of Puerto Rico in the Caribbean Development
Bank --------------------------.-------------- 160
Policy With Respect to Countries Most Seriously Affected
by Food Shortages-------------------------------- 160
Repayment of Loans in Default ---------------_---- -- 161
d. Foreign Assistance Act of 1973 (partial text)---------------- 163
Asian Development Bank Authorization -------------- 163
Termination of Indochina War ----------------------- 163
Limitatio n on Use of Funds for Indochina--------------- 163
Political Prisoners--- ------------------------------- 164
Albert Schweitzer Hospital Authorization-------------- 164
POWs and MIAs ----------------------164
Rights in Chile ---------------------------- ---- 165
Revision of Social Progress Trust Fund Agreement------ 165
Prohibition of Assistance to North Vietnam ----------- 166
Report Concerning Use of Military Assistance in Africa_- 166
World Food Shortages----------------------- -- ----166
Use of Local Currencies --- --------------------- 167
e. Foreign Assistance Act of 1971 (partial text)-------- ------ 168
Food for Peace Reduction------------------ 168
Position of Under Secretary of State for Coordinating
Security Assistance------------------------- 168
Periodic Authorizations for State and USIA----------- 169
Limitation on United Nations Assessment of United
States ----------------------------------------. 169
(1)





2

1. Foreign Assistance Acts-Continued
f. Special Foreign Assistance Act of 1971, as amended (partial Pag
text) --------------- ------------ ------ 170
Authorization of Appropriations ----------------------170
Transfer of Defense Articles to Korea------------------- 170
Authorization of Local Currencies for Pakistan----------- 171
Limitation on Assistance to Cambodia------------------ 171
g. Foreign Assistance Act of 1969, as amended (partial text)---- 172
Part IV-The Inter-American Foundation Act----------- 172
Part V-Amendments to Other Acts-------------------- 17
h. Foreign Assistance Act of 1968------------------- -----_-. 179
i. Foreign Assistance Act of 1967--------------------------...
j. Foreign Assistance Act of 1966-------------------------.-- 179
k. Foreign Assistance Act of 1965---------------------------- 179
1. Foreign Assistance Act of 1964 (partial text) ------------- 180
Religious Persecution -----------------------------.-- 180
m. Foreign Assistance Act of 1963---------------------------- 180
n. Foreign Assistance Act of 1962.------------.-------------. 181
2. Foreign Assistance Appropriations------------------------------- 182
a. Joint Resolution [Temporary Appropriations for Fiscal Year
1976], as amended (partial text) (Public Law 94-41).----.__. 182
b. Joint Resolution [Temporary Appropriations for Fiscal Year
1976] (Public Law 94-159)---------------------- ---- 186
c. Joint Resolution [Temporary Appropriations for Fiscal Year
1975], as amended (partial text) (Public Law 93-324)- -_ 187
d. Joint Resolution [Temporary Appropriations for Fiscal Year
1975] (partial text) (Public Law 93-448) ----------------- 191
e. Foreign Assistance and Related Programs Appropriation Act,
1975 ---------- --------------------------- 192
f. Supplemental Appropriation Act, 1955, as amended (partial
text-Sec. 1311, Valid Obligations) ..------------.----... 204
3. Other Foreign Assistance Related Legislation -- --- ----------- 206
a. Latin American Development Act, as amended (Public Law
86-735)------------------------------------------ 2
[The Inter-American Foundatipn Act is on page 172.]
b. Mutual Security Act of 1959, as amended (partial text) (Public
Law 86-108)---------------------------- ---------- 209
c. Mutual Security Act of 1954, as amended (retained provisins)-_ 210
Sec. 402-Earmarking of Funds ----------------------- 210
Sec. 408-North Atlantic Treaty Organization ------- 210
Sec. 414-Munitions Control.----------.---- --------- 211
Sec. 417-Irish Counterpart ------ ------------ 212
Sec. 502-Use of Foreign Currency ------ --- 212
Sec. 514-International Educational Exchange Activities_ 214
Sec. 523-Coordination With Foreign Policy ------------ 214
Sec. 536-Joint Commission on Rural Reconstruction in
China -------------------------- 214
d. Mutual Defense Assistance Control Act of 1951, as amended
(Battle Act) ------------------------------ 215
e. Use of Foreign Currencies:
(1) Supplemental Appropriation Act, 1953 (Section 1415,
Availability of Foreign Credits)--------------- 219
(2) General Government Matters Appropriation Act, 1962
(Public Law 87-125) (partial text-Sec. 508, Provi-
sion for Use of Foreign Credits by Federal Agencies) 220
(3) Use of Reserved Foreign Currencies (Public Law
89-677) --------------------------------- 221
f. Amendment to Merchant Marine Act of 1936, as amended (50
percent of shipment on U.S.-flag vessels) ----------------- 222
g. The Sugar Act of 1948, as amended (partial text-Sec. 408(c),
Provisions for Withholding Sugar Quota) ------------------ 224
h. Fishermen's Protective Act of 1967, as amended (note) .-----. 225
i. Emergency Security Assistance Act of 1973-------- --------- 22
j. Foreign Disaster Assistance Act of 1974 (partial text) (Public
Law 93-333) -------- --------------------------- 228
k. Amendments to the Board for International Broadcasting Act of
1973 (partial text) (Public Law 94-104)- ------------- 2 2





3

4. Executive Orders and Delegations of Authority Relating to Foreign Paue
Assistance---- ---------------------------------- 232
a. Executive Order 10973, as amended (Administration of Foreign
Assist and Related Functions) ------- ------------ 232
b. State Department Delegation of Authority No. 104, as amended. 240
c. Executive Order 11223 (Performance of Functions Authorized
by the Foreign Assistance Act of 1961, as amended) --....- 248
d. Executive Order 11579 (Overseas Private Investment Corpora-
tion) ...---------.-----------------.-.------ 250
5. Foreign Military Sales --------- --------------------- 253
a. The Foreign Military Sales Act, as amended (Public Law 90-
6829).......- ------------------------- ------ 253
b. Foreign Military Sales Act Amendments, 1971, as amended
(partial text) (Public Law 91-672)------------------- 267
Sec. 5-Sense of Congress Concerning Arms for Israel .... 267
Se. 6-Sense of Congress for Review of Military Aid
Programs and Discussion on Control of Armaments and
Arms Trade--- ..-- ------------------------- 267
Sec. 7-Sale or Transfer of International Fighter Aircraft_ 268
Sec. 8-Grants of Excess Defense Articles Charged Against
Appropriated Funds -------------- --------------- 268
Sec. 10-Authorization Required Prior to Obligation or
Expenditure of Funds------------------------------ 270
Sec. 11-Definitions of Defense Article, Excess Defense
Articles, and Foreign Country--------------------- 270
Sec. 12-Repeal of Tonkin Gulf Resolution ---------- 270
Sec. 13-Detoxification of Chemical Munitions in Okinawa. 270
c. Executive Order 11501, as Amended (administration of Foreign
Milit Sales). 2------ ---- -------- 271
6. Armed Forces Authorizations and Appropriations ------------------- 273
a. Department of Defense Appropriation Authorization Act, 1976
partial text) (Public Law 94-106)----------- 273
b. Department of Defense Appropriation Authorization Act, 1975
(partial text) (Public Law 93-365)--- ------- 275
c. Armed Forces Appropriation Authorization, 1971 (partial text)
(Public Law 91-441)- --------............... 279
d. Military Construction Appropriation Act, 1976 (partial text)
(Public Law 94-138) ...------- ...-------------.- -- - 280
7. Laws Relating to Loan or Sale of Vessels to Foreign Countries (partial
text) (Public Law 84-1028)..---- ---------.-------- ..------ 281

















































4,













1. Foreign Assistance Acts

a. The Foreign Assistance Act of 1961, as amended

CONTENTS
Part I: Pag
Chapter 1-Policy ---- -------------------------- 10
Section 102-Statement of Policy------------------------- 10
Section 103-Food and Nutrition --------------------- ---14
Section 103A-Agricultural Research----------------------- 15
Section 104-Population Planning and Health ---------------- 15
Section 105-Education and Human Resources ------------- 16
Section 106-Technical Assistance, n, Energy, Research, Recon-
struction, and Selected Development Problems ------------- 17
Section 107-Intermediate Technology----------------------- 18
Section 108-Application of Existing Provisions--------------- 18
Section 109-Transfer of Funds ------------ 18
Section 110-Cost-Sharing and Funding Limits -------------- 19
Section 111-Development and Use of Cooperatives ----------- 19
Section 113-Integrating Women Into National Economies --.. 19
Section 114-Limiting Use of Funds for Abortions ----------- 19
Section 115-Prohibiting Use of Funds for Certain Countries_.. 20
Section 116-Human Rights ------ -------------------- 20
Chapter 2-Development Assistance--------------------------------- 21
Title I-Development Loan Fund ----------------------------- 21
Section 201-General Authority ---------.---------------- 21
Section 202-Authorization ----------------------------- 22
Section 203-Fiscal Provisions---------------------------- 23
Section 204-Development Loan Committee ----------------- 24
Section 206-Regional Development in Africa -- ------------ 24
Section 207-Purposes of Development Assistance ------------- 24
Section 208-Self-Help Criteria ------------------------- 25
Section 209-Multilateral and Regional Programs ------------- 25
Title II-Technical Cooperation and Development Grants- ------- 26
Section 211-General Authority------- -------------------- 26
Section 212-Authorization -- ------------------------ 28
Section 214-American Schools and Hospitals Abroad- -------- 28
Section 215-Loans to Small Farmers- .......-------------- 29
Section 216-Voluntary Agencies--_-_ ---------------------- 29
Section 217-Used Equipment--------------------- ---- 30
Section 218-Fish and Other Protein Concentrates ------------ 30
Section 219-Prototype Desalting Plant ------------------- 30
Section 220-Programs for Peaceful Communication ----------- 31
Section 220A-Suez Canal3-- ------------------- 32
Title III-Housing and Other Credit Guaranty Programs_-------- 32
Section 221-Worldwide Housing Guaranties ---------------- 32
Section 222-Housing Projects in Latin American Countries...- 32
Section 222A-Agricultural and Productive Credit and Self-
Help Community Development Programs ----------------- 33
Section 223-General Provisions .----- ----------- 34
Title IV-Overseas Private Investment Corporation --------------- 36
Section 231-Creation, Purpose, and Policy------------------ 36
Section 232-Capital of the Corporation- ---------------- 38
Section 233-Organization and Management ----------------- 38
Section 234-Investment Insurance and Other Programs ------- 39
(6)









Part I-Continued
Chapter 2-Development Assistance-Continued
Title IV-Overseas Private Investment Corporation-Continued
'Section 235-Issuing Authority, Direct Investment Fund Page
and Reserves--------------- ----------------------- 43
Section 236-Income and Revenues -------------------- 45
Section 237-General Provisions Relating to Insurance and
Guaranty Programs -------------------------------- 45
Section 238-Definitions------------------------------- 47
Section 239-General Provisions and Powers-------------- 48
Section 240A-Reports to the Congress -----------------. 49
Title VI-Alliance for Progress------------------------------ 50
Section 251-General Authority------------------------- 50
Section 252-Authorization----------------------------- 52
Section 253-Fiscal Provisions-------------------------- 53
Title VII-Evaluation of Programs-------------------------- 53
Section 261-Evaluation of Programs--------...------... 53
Title VIII-Southeast Asia Multilateral and Regional Programs. 53
Section 271-General Provisions ------------------------- 53
Section 272-Special Provisions ------------------------ 53
Title IX-Utilization of Democratic Institutions in Development- 54
Section 281-Utilization of Democratic Institutions in De-
velopment -------.------------------------------- 54
Title X-Programs Relating to Population Growth ------------ 55
Section 291-General Provisions ------------------------ 55
Section 292-Authorization ---------------------------- 55
Title XI-Food Production Targets and Reports -------------- 56
Section 295-Food Production Targets and Reports ------- 56
Title XII-Famine Prevention and Freedom From Hunger-.--- 56
Section 296-General Provisions----------------------- 56
Section 297-General Authority------------------------ 58
Section 298-Board for International Food and Agricultural
Development-------------------------------------- 59
Section 299-Authorization --------------------------- 60
Section 300-Annual Report---------------------------- 61
Chapter 3-International Organizations and Programs_ ------------ 61
Section 301-General Authority- --------------------------- 61
Section 302-Authorization -------------------------------- 63
Section 303-Indus Basin Development ---------------------- 65
Section 304--United Nations Peacekeeping ------------------ 65
Section 305-Integration of Women------------------------ 66
Chapter 4-[See Chapter 4 of Part II]
Chapter 5-Disaster Relief ------------------------------------ 66
Section 451-Contingency Fund ---------------- -------- 66
Chapter 6-Assistance to Countries Having Agrarian Economies. - 67
Section 461-Assistance to Countries Having Agrarian Economies- 67
Chapter 7-Joint Commissions on Rural Development ------------- 67
Section 471-Joint Commissions on Rural Development-------- 67
Chapter 8-International Narcotics Control ------------------ 68
Section 481-International Narcotics Control ---------------- 68
Section 482-Authorization -------------------- -------- 69
Chapter 9-International Disaster Assistance -------------------- 70
Section 491-Policy and General Authority------------------- 70
Section 492-Authorization------------------------------ 70
Section 493-Disaster Assistance- Coordination --------------- 70
Section 494-Disaster Relief Assistance ---------------------- 70
Section 494A-Famine and Disaster Relief to Drought-Stricken
African Nations --------------------------------------- 71
Section 494B-African Development Program --------------- 71
Section 495-Cyprus Relief and Rehabilitation---------------- 72
Chapter 10-Assistance to Portugal and Portuguese Colonies in
Africa Gaining Independence -------------------------------- 72
Section 496-Assistance to Portugal and Portuguese Colonies in
Africa Gaining Independence ----------------------- 72





7

Part II: Page
Chapter -Policy-------------------------- 73
Section 50-Statement of Policy -------------------- 73
Section 502-Utilization of Defense Articles and Defense Services- 74
Section 502AExess Defense Articles----------------------- 74
Section 502B-Human Rights ------------------------ 74
Chapter 2-Military Assistance -------------------------------- 75
Section 503-General Authority --------------------------- 75
Section 504-Authorization------------------------------- 76
Section 505-Conditions of Eligibility ---------------- 77
Section 50-Special Authority----------- ----78
Section 510-Restrictions on Training Foreign Military Students. 79
Section 511-Considerations in Furnishing Military Assistance 79
Sectin 513-Military Assistance Authorizations for Thailand and
Lao, and South Vietnam ------------------------------- 79
Section 514-Stockpiling of Defense Articles for Foreign Coun-
tries------------------------- ---- ---------------- 80
Section 515-Military Assistance Advisory Groups and Missions- 80
Chapter 3-Foreign Military Sales ---------------------- 81
Section 524-Reimbursements ------------------------- 81
Chapter 4-Security Supporting Assistance -------. -------------- 82
Section 531-General Authority------- ------------------ 82
Section 532-Authorization ---------------- -------------- 82
Part III:
Chapter 1-General Provisions --------------------------------- 83
Section 601-Encouragement of Free Enterprise and Private
Participation----------------- ---------------------- 83
Section 602-Small Business------------------------------- 85
Section 603-Shipping on United States Vessels --------------- 85
Section 604-Procurement ------------------------------ 86
Section 605-Retention and Use of Certain Items and Funds-.. 87
Section 606-Patents and Technical Information -------------- 88
Section 607-Furnishing of Services and Commodities --------. 88
Section 608-Advance Acquisition of Property --------------- 89
Section 609-Special Account -------- ----------------- 90
Section 610-Transfer Between Accounts -------------------- 91
Section 611-Completion of Plans and Cost Estimates --------- 92
Section 612-Use of Foreign Currencies---------------------- 93
Section 613-Accounting, Valuation, Reporting, and Administra-
tion of Foreign Currencies ------------------------------ 94
Section 614-Special Authorities ----- ------------------ 95
Section 615-Contract Authority---------------------------- 96
Section 616-Availability of Funds ------------------------ 96
Section 617-Termination of Assistance---------------------- 96
Section 618-Use of Settlement Receipts-------------------- 96
Section 619-Assistance to Newly Independent Countries-.----. 96
Section 620-Prohibitions Against Furnishing Assistance------- 96
Chapter 2-Administrative Provisions ------------------------ 105
Section 621-Exercise of Functions ----------------------_ 105
Section 621A-Strengthened Management Practices- -------- 106
Section 622-Coordination With Foreign Policy- --------- -. 106
Section 623-The Secretary of Defense_ ---- ------------- 107
Section 624-Statutory Officers -- __ .__- ---------------.. 107
Section 625-Employment of Personnel -------------------- 111
Section 626--Experts, Consultants, and Retired Officers-------- 115
Section 627-Detail of Personnel to Foreign Governments ----- 116
Section 628-Detail of Personnel to International Organizations-. 116
Section 629-Status of Personnel Detailed--------------- 116
Section 630-Terms of Detail or Assignment ---------------- 117
Section 631-Missions and Staffs Abroad ------------------- 117
Section 632-Allocation and Reimbursement Among Agencies_- 118
Section 633-Waivers of Certain Laws ---------------------- 120
Section 634-Reports and Information------------------ -- 120
Section 635-General Authorities --------------------------- 123
Section 636-Provisions on Uses of Funds------------------- 125
Section 637-Administrative Expenses ---------------------- 129
Section 638-Exclusions ------------------- ----- 129
Section 640A-False Claims and Ineligible Commodities-- ---- 129
Section 640B-Coordination ------------------------- 130
Section 6400-Shipping Differential- ------------------ 131






8

Part III-Continued Page
Chapter 3-Miscellaneous Provisions--------------------------- 131
Section 641-Effective Date and Identification of Programs-.--- 131
Section 642-Statutes Repealed-------------- -------....--- 131
Section 643-Saving Provisions-.---.------------ ..----.. --132
Section 644-Definitions --------------------------------. 132
Section 645-Unexpended Balances- -----..-----------.-- 134
Section 646-Construction -------------------------------- 135
Section 647-Dependable Fuel Supply- ----.---------.----. 135
Section 648-Special Authorization for Use of Foreign Currencies- 135
Section 649-Limitation on Aggregate Authorization for Use in
Fiscal Year 1966 ------------------------------------ 135
Section 650-Use of United States Armed Forces-------------- 135
Section 651-Sale of Supersonic Planes to Israel --------- -- 135
Section 652-Limitation Upon Exercise of Special Authorities-__ 136
Section 653-Change in Allocation of Foreign Assistance ----- 136
Section 654-Presidential Findings and Determinations -------- 137
Section 655-Limitations Upon Assistance to or For Cambodia- 137
Section 656-Limitations on United States Personnel and Per-
sonnel Assisted by United States in Cambodia -------------- 139
Section 657-Annual Foreign Assistance Report----------- --- 139
Section 658-Limitation on Use of Funds -------------------- 141
Section 659-Access to Certain Military Bases Abroad -------- 141
Section 660-Prohibiting Police Training --------------------- 141
Section 661-Reimbursable Development Programs------------ 142
Section 662-Limitation on Intelligence Activities ------------- 142
Section 663-Exchange of Certain Materials------------------ 142
Section 664-Waiver of Prohibition Against Assistance to Coun-
tries Engaging in Certain Trade-------------------- 143
Section 665-Transition Provisions for Interim Quarter ------ 143
Section 666-Discrimination Against United States Personnel-_ 143
Section 667-Operating Expenses--------------------------- 143
Part V:
Chapter 1-Indochina Postwar Reconstruction------------------ 144
Section 801-General Authority---------------------------- 144
Section 802-Authorization -------------------------------- 144
Section 803-Assistance to South Vietnamese Children -------- 144
Section 804-Center for Plastic and Reconstructive Surgery n
Saigon ---------------- ----------------------- 145
Section 805-Authority ----------------------------------- 145
Section 806-Population, Narcotics, International Humanitarian
and Regional Programs ------------- ------------- 145
Part VI:
Chapter 1-Assistance to the Middle East----------------------- 145
Section 901-Statement of Policy ------------------- 145
Section 902-Allocations ---------------------------------- 146
Section 903-Special Requirements Fund -------------------- 146-









a. The Forei Assistance Act of 1961, as amended
Public Law 87-195 S. 1983 75 Stat. 424, approved September 4, 1961, as amended
by the Foreign Assistance Act of 1962, Public Law 87-565 [S. 29963, 76 Stat. 255,
approved August 1, 1962; Public Law 87-793 [Postal Service and Federal Em-
ployees Salary Act of 1962; H.R. 7927], 76 Stat. 832, approved October 11, 1962;
Public Law 88205 R. 78851, 77 Stat. 379, approved December 16, 1963;
Public Law 8842 [Government Employees Salary Reform Act of 1964; H.R.
11049], 78 Stat. 400, approved August 14, 1964; Public Law 88-448 [Dual Com-
pensation Act; R. 7381], 78 Stat. 484, approved August 19, 1964; Public Law
88-633 [HR. 11380, 78Stat. 1009, approved October 7, 1964; Public Law 88-638
[Amendments to Agricultural Trade Development and Assistance Act of 1954,
as amended; 2687], 78 Stat. 1035, approved October 8, 1964; Public Law
89-171 [HR. 77501, 79 Stat. 653, approved September 6, 1965; Public Law
89-371 [HR. 12191, 80 Stat. 74, approved March 18, 1966; Public Law 89-583
[H.R. 157501, 80 Stat. 795, approved September 19, 1966; Public Law 90-137
[S. 1872], 81 Stat. 445, approved November 14, 1967; Public Law 90-554 [H.R.
15263], 82 Stat. 960, approved October 8, 1968; Public Law 90-629 [Foreign
Military Sales Act; H.R. 15681], 82 Stat. 1320, approved October 22, 1968;
Public Law 91-175 [H.R. 145801, 83 Stat. 805, approved December 30, 1969;
Public Law 91-652 [Special Foreign Assistance Act of 1971; H.R. 19911], 84
Stat. 1942 approved January 5, 1971; Public Law 92-226 [S. 2819], 86 Stat. 20,
approved February 7, 1972; Public Law 92-352 [Foreign Relations Authoriza-
tion Act of 1972; H.R. 147341, 86 Stat. 489, approved July 13, 1972; Public Law
93-189 [S. 14431, 87 Stat. 714, approved December 17, 1973; Public Law 93-333
Foreign Disaster Assistance Act of 1974; H.R. 12412], 88 Stat. 290, approved
July 8, 1974; Public Law 93-390 [Overseas Private Investment Corporation
Amendments Act of 1974; S. 2957], 88 Stat. 763, approved August 27, 1974;
Public Law 93-559 [S. 3394], 88 Stat. 1795, approved December 30, 1974; and
Public Law 94-161 [International Development and Food Assistance Act of
1975; H.R 9005, 89 Stat. 849, approved December 20, 1975.

NoTE.-At publication time of this volume, neither legislation
making appropriations for Foreign Assistance for fiscal year
1976 nor Foreign Assistance legislation authorizing security
assistance programs, and sales, credits, and guaranties under the
Foreign Military Sales Act for fiscal year 1976 had been enacted.

AN ACT To promote the foreign policy, security, and general welfare of the
United States by assisting peoples of the world in their efforts toward eco-
nomic development and internal and external security, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United State of America in Congress assembled, That this Act may
be cited as "The Foreign Assistance Act of 1961."

SThe short title was added by Sec. 111 of the FA Appropriation Act, 1962.
(9)





10

PART I

Chapter 1-Policy; Development Assistance Authorizations2

Sec. 101.3 Short Title.-- * [Repealed-1963]
Sec. 102.4 Statement of Policy.-(a)5 The Congress declares that
the freedom, security, and prosperity of the United States are best sus-
tained in a community of free, secure, and prospering nations. In par-
ticular, the Congress recognizes the threat to world peace posed by ag-
gression and subversion w~erever they occur, and that ignorance, want,
and despair breed the extremism and violence which lead to aggreion
and subversion. The Congress declares therefore that it is not only ex-
pressive of our sense of freedom, justice, and compassion but also im-
portant to our national security that the United States, through private
as well as public efforts, assist the people of less developed countries in
their efforts to acquire the knowledge and resources essential for deel-
opment and to build the economic, political, and social institutions
which will meet their aspirations for a better life, with freedom, and
in peace.
In addition, the Congress declares that it is the policy of the United
States to support the principles of increased economic cooperation and
trade among countries, freedom of the press, information, and religion,
freedom of navigation in international waterways, and recognition of
the right of all private persons to travel and pursue their lawful ac-
tivities without discrimination as to race or religion. The Congress
further declares that any distinction made by foreign nations between
American citizens because of race, color, or religion in the granting of,
or the exercise of, personal or other rights available to American citi-
zens is repugnant to our principles.
The Congress further declares that to achieve the objectives of this
Act, programs authorized by this Act should be carried out in accord-
ance with the following principles:
First, development is primarily the responsibility of the people of
the less developed countries themselves. Assistance from the United
States shall be used in support of, rather than substitution for, the
self-help efforts that are essential to successful development programs,
and shall be concentrated in those countries that take positive steps to
help themselves. Maximum effort shall be made, in the administration
of this Act, to stimulate the involvement of the people in the develop-
ment process through the encouragement of democratic participation
in private and local governmental activities and institution-building
appropriate to the requirements of the recipient nations.
Second, the tasks of successful development in some instances require
the active involvement and cooperation of many countries on a multi-
2 Sec. 101(a) of the FAAct of 1963 struck out the words "SHORT TITLE AND" In the
chapter heading, which formerly read "SHORT TITLE AND POLTCY". Sec. 2(1) of the
FAAct of 1973 added the following words to the chapter heading: "DEVELOPMENT
ASSISTANCE AUTHORIZATIONS".
See. 101 (b) of the FAAct, 1963, repealed former Sec. 101, which related to the short
title.
22 USC 2151. Sec. 102 was amended by See. 101 of the FAAct of 1967.
6 Subsection designation "(a)" was added by Sec. 2(2) (A) of the FAAct of 1973.
[NoTE. -The Foreign Assistance Act will be referred to as the FAAet and "this Act".
The Foreign Assistance and Related Programs Appropriation Act, 1975, will bereferred
to as the VA Appropriation Act, 1975.1




11

eral basis. Therefore, to the maximum extent practicable, other
untries shall be encouraged to increase their contributions to devel-
opment programs and projects so that the cost of such common under-
takings, which are for the benefit of all, may be shared equitably by all.
Third, assistance shall be utilized to encourage regional cooperation
by less developed countries in the solution of common problems and
the development of shared resources.
Fourth, the first objects of assistance shall be to support the efforts
of less developed countries to meet the fundamental needs of their
peoples for suffici food, good health, home ownership and decent
housing, and the opportunity to gain the basic knowledge and skills
required to make their own way forward to a brighter future. In sup-
porting these objectives, particular emphasis shall be placed on utiliza-
tion of resources for food production and voluntary family planning.
Fifth, assistance shall wherever practicable be constituted of United
States commodities and services furnished in a manner consistent with
other efforts of the United States to improve its balance of payments
position.
Sixth, assistance shall be furnished in such a manner as to promote
eficiency and economy in operation so that the United States obtains
maximum possible effectiveness for each dollar spent.
Seventh, to the maximum extent practicable, the furnishing of agri-
ultural commodities, disposal of excess property, and United States
payments to international lending institutions, undertaken pursuant
to this or any other Act, shall complement and be coordinated with
aistance provided under this part.
It is the sense of the Congress that every effort must be made to
obtain a permanent peace in the Middle East. To help promote that
objective, the United States should encourage, as part of pacific settle-
ment, direct talks among the parties concerned, using such third party
or United Nations assistance as they may wish. To this end, the
President should ndertake immediately (1) a thorough review of the
needs of the seveal countries of that area, and (2) a reevaluation of
United States policies aimed at helping meet those needs and securing
a permanent peace in the area.
It is further the sense of the Congress that in any case in which
any forein country has severed diplomatic relations with the United
States, the President should suspend assistance to such country under
this or any other Act, including any program designed to complement
assistance under this Act (such as sales of agricultural commodities
under the Agricultural Trade Development and Assistance Act of
1954 ). When diplomatic relations are resumed, a further study
should be made on a country-by-country basis to determine whether
United States forein policy objectives would be served by extending
assistance unr this or any other Act, including any program
designed to complement such assistance.
(b) Congress further finds and declares that, with the help of
United States economic assistance, progress has been made in creat-
Sa base for the economic progress of the less developed countries.
At the same time, the conditions which shaped the United States
foreign assistance program in the past have changed. While the United
States must continue to seek increased cooperation and mutually bene-
bFwor text, see page 309.
Bubsection (b) was added by Sec. 2(2) (B) of the FAAcet of 1973.





12

ficial relations with other nations, our relations with the less devel-
oped' countries must be revised to reflect the new realities. In
restructuring our relationships with these countries, the President
should place appropriate emphasis on the following criteria:
(1) Bilateral development aid should concentrate increasingly on
sharing American technical expertise, farm commodities, and indus-
trial goods to meet critical development problems, and less on large-
scale capital transfers, which when made should be in association with
contributions from other industrialized countries working together in
a multilateral framework.
(2) Future United States bilateral support for development should
focus on critical problems in those functional sectors which affect the
lives of the majority of the people in the developing countries; food
production; rural development and nutrition; population planning
and health; and education, public administration, and human resource
development.
(3) United States cooperation in development should be carried
out to the maximum extent possible through the private sector, includ-
ing those institutions which already have ties in the developing areas,
such as educational institutions, cooperatives, credit unions, and
voluntary agencies.
(4) Development planning must be the responsibility of each sov-
ereign country. United States assistance should be administered in a
collaborative style to support the development goals chosen by each
country receiving assistance.
(5) United States bilateral development assistance should give the
highest priority to undertakings submitted by host governments which
directly improve the lives of the poorest of their people and their
capacity to participate in the development of their countries.
(6) The economic and social development programs to which the
United States lends support should reflect, to the maximum extent
practicable, the role of the United States private investment in such
economic and social development programs.
(7) Under the policy guidance of the Secretary of State, the agency
primarily responsible for administering this part should have the
responsibility for coordinating all United States development-related
activities.
(c) 8 Assistance under this chapter should be used not simply for
the purpose of transferring financial resources to developing coun-
tries, but to help countries solve development problems in accordance
with a strategy that aims to increase substantially the participation of
the poor. Accordingly, greatest emphasis shall be placed on countries
and activities which effectively involve the poor in development, by
expanding their access to the economy through services and insitu-
tions at the local level, increasing labor-intensive production, spread-
ing productive investment and services out from major cities to small
towns and outlying rural areas, and otherwise providing opportunities
for the poor to better their lives through their own effort.
(d) s For the purpose of assuring that development assistance fur-
nished under this chapter is increasingly concentrated in countries
which will make effective use of such assistance to help the poor to-
SSubsections (e) and (d) were added by See. 301 of Public law 94-161, Internatonal
Development and Food Assistance Act of 1975 (89 Stat. 849).




13

ward a better life (especially such countries which are suffering from
the worst and most widespread poverty and are in greatest need of
outside assistance),the President shall establish appropriate criteria
to assess the commitment and progress of countries in meeting the
objectives set forth in subsection (c) of this section and in other sec-
tions of this chapter. In establishing such criteria, the President shall
specifically take into account their value in assessing the efforts of
countries to-
(1) increase agricultural productivity per unit of land through
small-farm labor-intensive agriculture;
(2) reduce infant mortality;
(3) control population growth;
:(4) promote greater equality of income distribution, includ-
ing measures such as more progress taxation and more equitable
returns to small farmers; and
(5) rduce rates of unemployment and underemployment.
The president shall endeavor to bring about the adoption of similar
criteria by international development organizations in which the
United States participates. Presentation materials submitted to the
Congress with respect to assistance under this chapter, beginning with
fiscal year 1977, hall contain detailed information concerning the
steps being taken to implement this subsection.


No .-Foreign Assistance Appropriation Act, 1975, "Loan
allocation, Development Assistance: Of the new obligational au-
thority appropriated under this Act to carry out the provisions
of sections 103-107, not less than $175,000,000 shall be available
for loans."



No;.-Prior Notification. Foreign Assistance Appropriation
Act, 1975. "Sec. 113. None of the funds made available under
this Act for 'Food and Nutrition, Development Assistance',
'Population Planning and Health, Development Assistance',
'Education and Human Resources Development, Development
Assistance, 'Selected Development Problems, Development As-
sistance', 'Selected Countries and Organizations, Development
Assistance', 'Internatinal Organizations and Programs', 'United
Nations Environment Fund', 'American Schools and Hospitals
Abroad', 'Indus Basin Development Fund', 'International Nar-
cotics Control' 'Assistance to Portugal and Portuguese colonies
in Africa gaining independence', 'Administrative expenses,
gen for International Development', 'Indochina postwar
construction assistance', 'Security supporting assistance', 'Middle
East pecial requirements fund', 'Military assistance', 'Inter-
American Foundation', 'Peace Corps', 'Migration and refugee
assistance', 'Assistance to Palestinian Refugees' shall be available
for obligation for activities, programs, projects, countries, or
other operaions unless the Committee on Appropriations of the
Senate and House of Representatives are previously notified
fifteen days in advance."
- ,IIIll~









NOTE.-The amounts appropriated by the Foreign Assistance
and Related Programs Appropriation Act, 1975, appear as foot-
notes to respective authorizations in the Foreign Assistance Act
of 1961, as amended. Sec. 102 of the Foreign Assistance and e-
lated Programs Appropriation Act, 1975, states: "Except for the
appropriations entitled 'Contingency fund', 'Famine or disaster
relief assistance', and appropriations of funds to be used for
loans, not more than 20 per centum of any appropriation item
made available by this title shall be obligated and/o reserved
during the last month of availability."


Sec. 103.9 Food and Nutrition.-(a)10 In order to alleviate starva-
tion, hunger, and malnutrition, and to provide basic services to poor
people, enhancing their capacity for self-help, the President is autho-
rized to furnish assistance, on such terms and conditions as he may de-
termine, for agriculture, rural development, and nutrition. There are
authorized to be appropriated to the President for the purposes of this
section, in addition to funds otherwise available for such purposes,
$291,000,000 for the fiscal year 1974, and $500,000,000 for the fiscal year
1975,11 $618,000,000 for the fiscal year 1976 and $745,000,000 for the
fiscal year 1977,12 which amounts are authorized to remain available
until expended.
(b)13 The Congress finds that, due to rising world food, fertilizer,
and petroleum costs, human suffering and deprivation are growing in
the poorest and most slowly developing countries. The greatest poten-
tial for significantly expanding world food production at relatively low
cost lies in increasing the productivity of small farmers who constitute
a majority of the nearly one billion people living in those countries. In-
creasing the emphasis on rural development and expanded food pro-
duction in the poorest nations of the developing world is a matter of
social justice as well as an important factor in slowing the rate of infla-
tion in the industrialized countries. In the allocation of funds under
this section, special attention should be given to increasing agricultural
production in the countries with per capita incomes under $300 a year
and which are the most severely affected by sharp increases in world-
wide commodity prices.
(c)14 Assistance provided under this section shall be used primarily
for activities which are specifically designed to increase the produc-
tivity and income of the rural poor, through such means as creation
and strengthening of local institutions linked to the regional and
national levels; organization of a system of financial institutions which
9 22 USC 2151a. Sec. 103 was added by See. 2(3) of the FAAct of 1973.
0o Subsection designation "(a)" was added by Sec. 2(1) of the FAAct of 1974.
11 Sec. 2(2) of the FAAct of 1974 substituted the words "$291.000.000 for the fiscal year
1974. and $500.000,000 for the fiscal year 1975" in lieu of "$291,000,000 for each of the
fiscal years 1974 and 1975".
FA Appropriation Act. 1975: "$300,000000: Provided, That in addition to the amounts
provided for loans to carry out the purposes of this paragraph, such amounts as are
provided for under section 203 shall also be available for loans, together all such amounts
to remain available until expended".
12"ec. 302(1) of Public Law 94-161 (89 Stat. 849) added the words to ths oint
commencing 'With "$618.800,000 for th.t fiscal year 1976 * *"
18 Subsertion (b) was added by See. 2(3) of the FAAct of 1974.
14 Sec. 302(2) of Public Law 94-161 (89 Stnt. S49) added subsections (c), (d), (e), (f),
and (g).





15

provide both savings and credit services to the poor; stimulation of
small, labor-intensive enterprises in rural towns; improvement of mar-
keti facilities and systems; expansion of local or small-scale rural
infrastructure and utilities such as farm-to-market roads, land
improvement, energy, and storage facilities; establishment of more
eqitable and more secure land tenure arrangements; and creation and
strengthening of systems to provide other services and supplies needed
by farmers, such as extension, research, training, fertilizer, water, and
improved seed in ways which assure access to them by small farmers.
(d) 14 Foreign currency proceeds from sales of commodities pro-
vided under the Agricultural Trade Development and Assistance Act
of 1954 which are owned by foreign governments shall be used when-
ever practicable to carry out the provisions of this section.
(e) In order to carry out the purposes of this section, the President
is authorized to participate in and provide, on such terms and condi-
tions as he may determine, up to $200,000,000 to the International Fund
for Agricultural Development. There is authorized to be appropriated
to the President without fiscal year limitation $200,000,000 for such
contribution.
(f)" No funds may be obligated to carry out subsection (e) unless-
S(1) satisfactory agreement is reached on the Articles of Agree-
ment for the International Fund for Agricultural Development;
(2) such Articles of Agreement are reviewed and approved
by the Senate Committee on Foreign Relations and the House
Committee on International Relations;
(3) all donor commitments to the International Fund for
Agricultural Development total at least $1,000,000,000 equivalent
in convertible currencies, except that the United States contribu-
tion shall be proportionally reduced if this combined goal is not
met; and
(4) there is equitable burden sharing among the different
categories of contributors.
(g)" The President shall submit to the Congress full and complete
data concerning United States participation in, and operation of, the
International Fund for Agricultural Development in the annual
presentation materials on proposed economic assistance programs.
Sec. 103A.4 Agricultural Research.-Agricultural research car-
ried out under this Act shall (1) take account of the special needs of
small farmers in the determination of research priorties, (2) include
research on the interrelationships among technology, institutions, and
economic, social, and cultural factors affecting small-farm agriculture,
and (3) make extensive use of field testing to adapt basic research to
local conditions. Special emphasis shall be placed on disseminating
research results to the farms on which they can be put to use, and
especially on institutional and other arrangements needed to assure
that small farmers have effective access to both new and existing
improved technology.
Sec. 104.16 Population Planning and Health.-(a) 1 In order to in-
crease the opportunities and motivation for family planning, to reduce
the rate of population growth, to prevent and combat disease, and to
I5 22 USC 2151a-1. See. 103A was added by Sec. 303 of Public Law 94-161 (89 Stat. 849).
1I 22 USC 2151b. Sec. 104 was added by Sec. 2(3) of the FAAct of 1973.
I 7 Sec. 304(1) of Public Law 94-161 (89 Stat. 849) added subsection designation "(a)".
65-998-76-----3





16

help provide health services for the great majority, the President is
authorized to furnish assistance on such terms and conditions as he
may determine, for population planning and health. There are author-
ized to be appropriated to the President for the purposes of this sec-
tion, in addition to the funds otherwise available for such purposes,
$145,000,000 for the fiscal year 1974, and $165,000,000 for the fiscal year
1975,18 $243,100,000 for the fiscal year 1976 and $275,600,000 for the
fiscal year 1977,19 which amounts are authorized to remain available
until expended. Not less than 67 percent of the funds made available
under this section for any fiscal year shall be used for population plan-
ning, either in separate programs or as an element of health
programs.20
(b)2l Assistance provided under this section shall be used primarily
for extension of low-cost, integrated delivery systems to provide health
and family planning services, especially to rural areas and to the poor-
est economic sectors, using paramedical and auxiliary medical person-
nel, clinics and health posts, commercial distribution systems, and
other modes of community outreach; health programs which empha-
size disease prevention, environmental sanitation, and health educa-
tion; and population planning programs which include education in
responsible parenthood and motivational programs, as well as deliv-
ery of family planning services and which are coordinated with pro-
grams aimed at reducing the infant mortality rate, providing better
nutrition to pregnant women and infants, and raising the standard of
living of the poor.
Sec. 105.22 Education and Human Resources Development.-
(a)23 In order to reduce illiteracy, to extend basic education and to in-
crease manpower traiinig in skills related to development, the Presi-
dent is authorized to furnish assistance on such terms and conditions as
he may determine, for education, public administration, and human re-
source development. There are authorized to be appropriated to the
President for the purposes of this section, in addition to funds other-
wise available for such purposes, $90,000,000 for the fiscal year 1974,
and $92,000,000 for the fiscal year 1975,"2 $89,200,000 for the fiscal year
1976 and $101,800,000 for the fiscal year 1977,25 which amounts are
authorized to remain available until expended.
SSec. 4(1) of the FAAct of 1974 substituted the words "$145,000,000 for the fiscal
year 1974, and $165,000,000 for the fiscal year 1975" in lieu of $145,000,000 for each of
the fiscal years 1974 and 1975".
FA Appropriation Act, 1975: "$125,000,000: Provided, That in addition to the amounts
provided for loans to carry out the purposes of this paragraph, such amounts as are
provided for under section 203 shall also be available for loans, together all such amounts
to remain available until expended: Provided further, That not more than $110,000,000
appropriated or made available under this Act shall be used for the purposes of section
291 during the current fiscal year."
19 Sec. 304(2) of Public Law 94-161 (89 Stat. 849) added the words to this point
commencing with "$243,100,000 for the fiscal year 1976 * *"
20 Thli sentence was added by Sec. 304(3) of Public Law 94-161 (89 Stat. 849).
2 Subsection (b) was added by Sec. 304(4) of Public Law 94-161 (89 Stat. 849).
22 USC 2151c. Sec. 105 was added by Sec. 2(3) of the FAAct of 1973.
23Sec. 305(1) of Public Law 94-161 (89 Stat. 849) added subsection designation "(a)".
24 Sec. 5 of the FAAct of 1974 substituted the words "$90,000.000 for the fiscal year
1974. and $92.000,000 for the fiscal year 1975" in lieu of "$90,000,000 for each of the
fiscal years 1974 and 1975".
FA Appropriation Act, 1975: "$82,000,000: Provided, That in addition to the amounts
provided for loans to carry out the purposes of this paragraph, such amounts as are pro-
vided for under section 203 shall also be available for loans, together all such amounts to
remain available until expended."
2 Sec. 305(2) of Public Law 94-161 (89 Stat. 849) added the words to this point com-
mencing with "$89,200,000 for the fiscal year 1976 * *"





17

(b)2 Assistance provided under this section shall be used primarily
to expand and strengthen nonformal education methods, especially
those designed to improve productive skills of rural families and the
urban poor and to provide them with useful information; to increase
the relevanc of formal education systems to the needs of the poor,
especially at the primary level, through reform of curricula. teaching
materials, and teaching methods, and improved teacher training; and
to strengthen the management capabilities of institutions which enable
the poor to participate in development.
(c)26 Of the amount authorized to be appropriated by subsection
(a), not less than $1,000,000 shall be available to support the southern
African student program and the southern African training program,
for the purpose of providing educational assistance to Southern
Africans.
Sec. 1N,2. Technical Assistance, Energy, Research, Reconstrue-
in, and Selected Development Problems.-(a) The President is
authorized to furnish assistance, on such terms and conditions as he
may determine, for the following activities, to the extent that such
activities are not authorized by sections 103, 104, and 105 of this Act:
(1) programs of technmcal cooperation and development, par-
ticularly the development efforts of United States private and
voluntary agencies and regional and international development
organizations;
(2) programs to help developing countries alleviate their
energy problems by increasing their production and conservation
of energy, through such means as research and development of
suitable energy sources and conservation methods, collection and
analysis of information concerning countries' potential supplies
of and needs for energy, and pilot projects to test new methods
of production or conservation of energy;
(3) programs of research into, and evaluation of, the process
of economic development in less developed countries and areas,
into the factors affecting the relative success and costs of develop-
ment activities, and into the means, techniques, and such other
aspects of development assistance as the President may determine
in order to render such assistance of increasing value and benefit;
(4) programs of reconstruction following natural or mamnade
disasters;
(5) programs designed to help solve special development prob-
lems in the poorest countries and to make possible proper utiliza-
tion of infrastructure and related projects funded with earlier
United States assistance; and
(6) programs of urban development, with particular emphasis
on small, labor intensive enterprises, marketing systems for small
producers, and financial and other institutions which enable the
urban poor to participate in the economic and social development
of their country.
mSec. 305(3) of Public Law 94-161 (89 Stat. 849) added subsections (b) and (c).
S22 USC 2151d. See. 306(1) of Public Law 94-161 (S9 Stat. 849) repealed Sees. 106,
107 and 241. Former Sec. 106 read s follows: "Sec. 106. Selected Development Problems.
The President is authorized to furnish assistance on such terms and conditions as he
may determine, to help solve economic and social development problems in fields such
as transportation, power, industry, urban development, and export development. There
are authorized to be appropriated to the President for such purposes, $53,000,000 for each
of the fiscal years 1974 and 1975, which amounts are authorized to remain available
until expended."






18

(b) There is authorized to be appropriated to the President for
the purposes of this section, in addition to funds otherwise available
for such purposes, $99,550,000 for the fiscal year 1976 and $104,500,000
for the fiscal year 1977, which amounts are authorized to remain
available until expended. Of the amounts made available under this
section, not less than $30,000,000 shall be available during the period
beginning July 1, 1975, and ending September 30, 1977, only for
reimbursement to private voluntary agencies of the United States for
costs incurred with respect to the shipment of food and nonfood
commodities provided through private donations.
Sec. 107.28 Intermediate Technology.-Of the funds made avail-
able to carry out this chapter for the fiscal years 1976, 1977, and 1978,
a total of $20,000,000 may be used for activities in the field of inter-
mediate technology, through grants in support of an expanded and
coordinated private effort to promote the development and dissemina-
tion of technologies appropriate for developing countries. The Agency
for International Development shall prepare a detailed proposal to
carry out this section and shall keep the Senate Foreign Relations
Committee and the House International Relations Committee fully
and currently informed concerning the development of the proposal.
The proposal shall be transmitted to these committees no later than
March 31, 1976, and shall not be implemented until thirty days after
its transmittal or until passage by each committee of a resolution in
effect approving its implementation.
Sec. 108.29 Application of Existing Provision.-Assistance under
this chapter shall be furnished in accordance with the provisions of
titles I, II, or X of chapter 2 of this part, and nothing in this chapter
shall be construed to make inapplicable the restrictions, criteria, au-
thorities, or other provisions of this or any other Act in accordance with
which assistance furnished under this chapter would otherwise have
been provided.
Sec. 109.30 Transfer of Funds.-Notwithstanding section 108 of
this Act, whenever the President determines it to be necessary for the
purposes of this chapter, not to exceed 15 per centum of the funds made
available for any provision of this chapter may be transferred to, and
consolidated with, the funds made available for any other provision
of this chapter, and may be used for any of the purposes for which
such funds may be used, except that the total in the provision for the
benefit of which the transfer is made shall not be increased by more
than 25 per centum of the amount of funds made available for such
provision. The authority of sections 610(a) and 614(a) of this Act
may not be used to transfer funds made available under this chapter
for use for purposes of any other provision of this Act.
2 22 TSC 2151e. See. 306(1) of Public Law 94-161 (89 Stat. 849) repealed Sees. 106,
107 and 241. Former See. 107 reads as follows: "Sec. 107. Selected Countries and Organi-
zations.-The President is authorized to furnish assistance on such terms and conditions
s he may determine, in support of the general economy of recipient countries or for
dev'opmnent programs condneted by privte or international organizations. There are
authorized to be appropriated to the President for the purposes of this section, in addi.
tion to funds otherwise available for such purposes, $39.000.000 for each of the fiscal year.
19)74 and 1975, which amounts are authorized to remain available until expended."'
2 22 TSC 2151f. Sec. 108 was added by See. 2(3) of the FAAct of 1973.
80 22 USC 2151g. Sec. 109 was added by Sec. 2(3) of the FAAct of 1973.




19

Sec. 110.31 Cost-Sharing and Funding Limits.-(a) No assistance
hall be furnished by the United States Government to a country under
sections 103 through 107 of this Act until the country provides assur-
ances to the President, and the President is satisfied, that such country
provide at least 25 per centum of the costs of the entire program, proj-
ect, or activitith respect to which such assistance is to be furnished,
except that s.uch costs borne by such country may be provided on an
"in-kind" basis and except that the President mav waive this cost-
sharing requirement in tih case of a project or actlvity in a country
which the agency primarily responsible for administering part I of
this Act determines is relatively least developed based on the United
Nations Conference on Trade and Development list of "relatively
least developed countries".3
(b) No grant assistance shall be disbursed by the United States Gov-
ernment under sections 103 through 107 of this Act for a project, for
a period exceeding thirty-six consecutive months, without further jus-
tification satisfactory to the Congress and efforts being made to obtain
sources of financing within that country and from other foreign coun-
tries and multilateral organizations.
Sec. 111.23 Development and Use of Cooperatives.-In order to
strengthen the participa:tion of the rural and urban poor in their
country's development, high priority shall be given to increasing the
use of funds made available under this Act for assistance in the
development of cooperatives in the less developed countries which will
enable and encourage greater numers of the poor to help themselves
toward a better life. Not less than $0.000.)0 of such funds shall be
used during the fiscal years 1976 and 1977, including the period from
July 1, 1976, through Septemer 30. 1976, only for technical assistance
to carry out the purposes of this section.
See. 112." Prohibiting Police Training.- * [Repealed-1974]
Sec. 113,5 Integrating Women Into National Economies.-Part
I 3 of this Act shall be administered so as to give particular attention
to those proams, projects, and activities which tend to integrate
women into the national economies of foreign countries, thus improv-
ing their status and assisting the total development effort.
Sec. 114.37 Limiting Use of Funds for Abortions.-None of the
funds made available to carry out this part shall be used to pay for the
performance of abortions as a method of family planning or to moti-
vate or coerce any person to practice abortions.
n 22 USC 2151h. Sec. 110 was added by Sec. 2(3) of the FAAct of 1973. See first Note
in box, page 13.
3 The words to this point commencing with "and except that the President may
waive * *" were added by Sec. 307 of Public Law 94-161 (89 Stat. 849).
a22 USC 2151i. See. 111, which was added by Sec. 2(3) of the FAAct of 1973. was
amended by Sec. 308 of Public Law 94-161 (89 Stat. 849). It formerly read as follows:
"In order to strengthen the participation of the urban and rural poor in their country's
development, not less than $20,000,000 of the funds made available for the purposes of this
chapter shall be available during the fiscal year 1974 and 1975 only for assistance in the
less developed countries which will enable and encourage greater numbers of the poor to
help themselves toward a better life."
Sec. 112. which was added by Sec. 2(3) of the FAAct of 1973, was repealed by Sec.
30(b) of the FAAct of 1974. (See Sec. 660 of this Act, "Prohibiting Police Training",
1 p. 141.)
5 22 USC 2251k. See. 113 was added by Sec. 2(3) of the FAAct of 1973. (See Sec. 305
of this Act. "Integration of Women", p. 66.)
." Sec. 309 of Public Law 94-161 (89 Stat. 849) substituted the words "Part I" in lieu
of the words "Sections 103 through 107".
'7 22 USC 21511. Sec. 114 was added by See. 2(3) of the FAAct of 1973.
^IP";itss





20

Sec. ,15.3" Prohibiting Use of Funds for Certain Countries.-
(a) None of the funds made available to carry out this chapter may
be used in any fiscal year for any country to which assistance is fur-
nished in such fiscal year under chapter 4 of part II (security sup-
porting assistance), part V (assistance for relief and reconstruction
of South Vietnam, Cambodia, and Laos), part VI (assistance for
Middle East peace) of this Act, or section 36 of the Foreign Assistance
Act of 1974.
(b) The prohibition contained in subsection (a) may not be waived
under section 614 (a) of this Act or under any other provision of law.
(c) This section shall not apply to funds made available under
section 104 for purposes of title X of chapter 2 of this part (programs
relating to population growth), funds made available for humanitar-
ian assistance through international organizations, and funds obli-
gated for regional programs.
Sec. 116.39 Human Rights.--(a) No assistance may be provided
under this part to the government of any country which engages in a
consistent pattern of gross violations of internationally recognized
human rights, including torture or cruel, inhuman, or degrading treat-
ment or punishment, prolonged detention without charges, or other
flagrant denial of the right to life, liberty, and the security of person,
unless such assistance will directly benefit the needy people in such
country.
(b) In determining whether this standard is being met with regard
to funds allocated under this part, the Committee on Foreign Rela-
tions of the Senate or the Committee on International Relations of the
Iouse of Representatives may require the Administrator primarily
responsible for administering part I of this Act to submit im writing
information demonstrating that such assistance will directly benefit
the needy people in such country, together with a detailed explana-
tion of the assistance to be provided (including the dollar amounts of
such assistance) and an explanation of how such assistance will di-
rectly benefit the needy people in such country. If either committee or
either House of Congress disagrees with the Administrator's justi-
fication it may initiate action to terminate assistance to any country
by a concurrent resolution under section 617 of this Act.
(c) In determining whether or not a government falls within the
provisions of subsection (a), consideration shall be given to the extent
of cooperation of such government in permitting an unimpeded investi-
gation of alleged violations of internationally recognized human rights
by anpropriate international organizations, including the Interna-
itonal Committee of the Red Cross, or groups or persons acting under
the authority of the United Nations or of the Organization of Ameri-
can States.
(d) The President shall transmit to the Speaker of the House of
Representatives and the Committee on Foreign Relations of the Sen-
ate, in the annual presentation materials on proposed economic devel-
opment assistance programs, a full and complete report regarding the
steps he has taken to carry out the provisions of this section.
?92 Prq 21f51m. See. 115 was added by Sec. 20 of the FAAct of 1974.
R 22 T1SC 2151n. Sec. 116 was added by Sec. 310 of Public Law 94-161 (89 Stat. 849).





21

Chapter 2-Development Assistance

Title I-Development Loan Fund
Sec. 201.40 General Authority.-(a) The President shall establish
a fund to be known as the "Development Loan Fund" to be used by
the President to make loans pursuant to the authority contained in
this title.
(b) The President is authorized to make loans payable as to princi-
pal and interest in United States dollars on such terms and conditions
as he may determine, in order to promote the economic development
of less developed friendly countries and areas, with emphasis upon
assisting long-range plans and programs designed to develop eco-
nomic resources and increase productive capacities. In so doing, the
President shall take into account (1) whether financing could be
obtained in whole or in part from other free-world sources on reason-
able terms, including private sources within the United States, (2)
the economic and technical soundness of the activity to be financed,
including the capacity of the recipient country to repay the loan at a
reasonable rate of interest, (3) whether the activity gives reasonable
promise of contributing to the development of economic resources
or to the increase of productive capacities in furtherance of the pur-
poses of this title, (4) the consistency of the activity with, and its
relationship to, other development activities being undertaken or
planned, and its contribution to realizable long-range objectives, (5)
the extent to which the recipient country is showing a responsiveness
to the vital economic, political, and social concerns of its people, and
demonstrating a clear determination to take effective self-help meas-
ures,2 (6) the possible effects upon the United States economy, with
special reference to areas of substantial labor surplus, of the loan in-
volved, (7) the degree to which the recipient country is making prog-
ress toward respect for the rule of law, freedom of expression and of
the press, and recognition of the importance of individual freedom,
initiative, and private enterprise, (8) the degree to which the re-
cipient country is taking steps to improve its climate for private
investment, and (9) whether or not the activity to be financed will
contribute to the achievement of self-sustaining growth.42 Loans shall
be made under this title only upon a finding of reasonable prospects
of repayment. Funds made available under this title, except funds
made available pursuant to section 205, shall not be used to make
loans in more than twenty countries in any fiscal year.43
22 USC 2161.
a Sec. 102(a) (1) of the FAAct of 1963 amended clauses (1) and (2), which formerly
read as follows: "(1) whether financing could be obtained In whole or in part from other
free-world sources on reasonable terms, (2) the economic and technical soundness of the
activity to be financed."
See. 102(a) (1) of the FAAct of 1966 struck out "and" at the end of clause (5), sub-
stitutd the comma for a period at the end of clause (6), and added clauses (7), (8) and
(9). See also Sees. 211(a), 251(b) (4) and 604(a) of this Act.
43 The last sentence, which was added by Sec. 102(a)(2) of the FAAct of 1966, was
amended by See. 102(a) of the FAAct of 1967. It formerly read as follows: "Funds made
available under this title, except funds made available pursuant to section 205, shall not
be used to make loans in more than ten countries in any fiscal year, except that such loans
may be made in any additional country after at least thirty days shall have elapsed follow-
ing the submission by the President to the Committee on Foreign Relations of the Senate
and the Speaker of the House of Representatives of a report stiting that the making of
loans in such additional country during such fiscal year is in the national interest and
giving his reasons therefor." See. 205 was repealed in 1972.






22

(c) The authority of section 610 may not be used to decrease the
funds available under this title, nor may the authority of section
614 (a) be used to waive the requirements of this title.
(d) Funds made available for this title shall not be loaned or re-
loaned at rates of interest excessive or unreasonable for the borrower
and in no event shall such funds (except funds loaned under section
205 and funds which prior to the date of enactment of the Foreign
Assistance Act of 1968 44 were authorized or committed to be loaned
upon terms which do not meet the minimum terms set forth herein) be
loaned at a rate of interest of less than 3 per centum per annum 4 com-
mencing not later than ten years following the date on which the funds
are initially made available under the loan, during which ten-year
period the e rate of interest shall not be lower than 2 per centum 4" per
annum, nor 4 higher than the applicable legal rate of interest of the
country in which the loan is made.
(e)48 In carrying out this title, the President shall not allocate, re-
serve, earmark, commit, or otherwise set aside, funds aggregating in
excess of $100,000 for use in any country under this title unless (1) an
application for such funds has been received for use in such country
together with sufficient information and assurances to indicate reason-
ably that the funds will be used in an economically and technically
sound manner, or (2) the President determines with respect to each
such allocation, reservation, earmarking, commitment, or set-aside that
it is in the national interest to use such funds pursuant to multilateral
plans.
(f)49 No assistance shall be furnished under this title for a project
unless the President determines that such project will promote the eco-
nomic development of the requesting country, taking into account the
current human and material resource requirements of that country and
the relationship between the ultimate objectives of the project and the
overall economic development of the country, and that such project
specifically provides for appropriate participation by private
enterprise.
Sec. 202.50 Authorization.-(a) There is hereby authorized to be
appropriated to the President for the purposes of this title $685,000,000
for the fiscal year 1967,51 $450,000,000 for the fiscal year 1968,52 $350,-
000,000 for the fiscal year 1969,53 $350,000,00 for the fiscal year 1970,
$350,000,000 for the fiscal year 1971,54 $250,000.000 for the fiscal year
1972, and $250,000,000 for the fiscal year 1973,95 which sums shall re-
44 Sec. 101 (a) (1) of the FAAct of 1968 substituted "1968" in lieu of "1967".
4 The words "3 per centum" were substituted in lieu of "2% per centum" by Sec. 101
(a) (2) of the FAAct of 1968.
6 Sec. 102(b) of the FAAct of 1967 substituted "2 per centum" in lieu of "1 per centum".
47 Except as indicated in the preceding three footnotes, the words to this point, begin-
ning immediately after "in no event" were added by See. 102(a) (2) of the FAAct of 1963.
48 Subsection (e) was added by Sec. 102 of the FAAct of 1962.
SSubsection (f) was added by Sec. 102(a) (3) of the FAAct of 1963.
"U 22 USC 2162.
51 Sec. 101 (b) (1) of the FAAct of 1968 substituted the comma for the word "and", which
appeared at this point.
Sec. 101(a) (1) of the FAAct of 1969 struck out the word "and", which appeared at
this oint.
The words "and $350,000,000 for the fiscal year 1969," were added by See. 101(b) (2)
of the FAAct of 1968.
:4 The words "8350.000.000 for the fiscal year 1970, and $350,000,000 for the fiscal year
1971" were added by Sec. 101(a) (2) of the FAAct of 1969.
The words "$350.000.00 for the fiscal year 1971, $250,000,000 for the fiscal year
1972. and $250,000.000 for the fiscal year 1973" were substituted in lieu .of "and
$250.000,000 for the fiscal year 1971" by See. 101(a) (1) of the FAAct of 19l1.
FA Approyriation Act. 1972: "$200,000,000 together with such amounts as are provided
for under section 203, all such amounts to remain available until expended."





23

main available until expended: Provided, That any unappropriated
portion of the amount authorized to be appropriated for any such
fiscal year may be appropriated in any subsequent fiscal year during
the above period in addition to the amount otherwise to be appropri-
ated for such subsequent fiscal year: Provided further, That, in order
to effectuate the purposes and provisions of sections 102, 201, 601, and
602 of this Act, not less than 50 per centum of the funds appropriated
pursuant to this subsection for each of the fiscal years ending June 30,
1970, June 30, 1971, June 30, 1972, and June 30, 1973,56 shall be avail-
able for loans made to encourage economic development through
private enterprise.57
(b) Whenever the President determines that it is important to the
advancement of United States interests and necessary to further the
purposes of this title, and in recognition of the need for reasonable
advance assurances in the interest of orderly and effective execution
of long-term plans and programs of development assistance, he is au-
thorized to enter into agreements committing, under the terms and
conditions of this title, funds authorized to be appropriated under this
title, subject only to the annual appropriation of such funds.
(c) Upon conclusion of each such agreement involving funds to be
appropriated, the President shall notify the Foreign Relations and
Appropriations Committees of the Senate and the Speaker of the
House of Representatives of the provisions of such agreement, includ-
ing the amounts of funds involved and undertakings of the parties
thereto.58
(d) Except as otherwise provided in this part, the United States
dollar assets of the corporate entity known as the Development Loan
Fund which remain unobligated and not committed for loans repayable
in foreign currencies on the date prior to the abolition of such Fund
shall be available for use for purposes of this title.
Sec. 203.59 Fiscal Provisions.-Not more than 50 per centum of
dollar receipts-scheduled to be paid during each of the fiscal year 1974
and 1975 from loans made pursuant to this part and from loans made
under predecessor foreign assistance legislation are authorized to be
made available for each such fiscal year for use for purposes of making
loans under chapter 1 of this part. Such receipts shall remain available
until expended.
On and after July 1, 1975, none of the dollar receipts paid during
any fiscal year from loans made pursuant to this part or from loans
made under predecessor foreign assistance legislation are authorized
to be made available during any fiscal year for use for purposes of
making loans under chapter 1 of this part. All such receipts shall be
deposited in the Treasury as miscellaneous receipts.60
5 See. 101(a)(2) of the FAAct of 1971 substituted the words "June 30, 1971, June 30,
1972, and June 30, 1973" in lieu of "and June 30. 1971".
il Except as indicated in previous footnote, the second proviso was added by Sec. 102
(b) (2) of the FAAct of 1963.
S For other reports required to be submitted to Congress. see Reports to Congress, Index.
USC 2163. Sec. 203 was amended by Sec. 3(a) of the FAAct of 1973. It formerly read
as follows:
"Sec. 203. Fiscal provisions.-Dollar receipts from loans made pursuant to this part
and from loans made under the Mutual Security Act of 1954, as amended, are authorized to
be made available for the fiscal year 1970, for the fiscal year 1971, for the fiscal year 1972,
and for the fiscal year 1973 for use for the purposes of this title, for loans under title VI,
and for the purposes of section 232. Such receipts and other funds made available under
this section shall remain available until expended."
SSee. 6 of the FAAct of 1974 added the last two sentences beginning with the words
"On and after July 1, 1975, * *"





24

See. 20o.1 Development Loan Committee.-The President shall
establish an interagency Development Loan Committee, consisting of
such officers from such agencies of the United States Government as he
may determine, which shall, under the direction of the President, estab-
lish standards and criteria for lending operations under this title in
accordance with the foreign and financial policies of the United
States.G2 Execpt in the case of officers serving in positions which they
were appointed by the President by and with the advice and consent of
the Senate, officers assigned to the Committee shall be so assigned by
the President by and with the advice and consent of the Senate.
Sec. 205.63 (Relating to transfers to international financial institu-
tions) [Repealed-1972].
Sec. 206.~4 Regional Development in Africa.-The President is
requested to seek and to take appropriate action, in cooperation and
consultation with African and other interested nations and with inter-
national development organizations, to further and assist in the ad-
vancement of African regional development institutions, including the
African Development Bank, with the view toward promoting African
economic development.
Sec. 207.65 Purposes of Development Assistance.-In furnishing
development assistance under this chapter the President shall place
appropriate emphasis on-
(a) assuring maximum participation in the task of economic
development by the people of less developed countries through
the encouragement of strong economic, political, and social insti-
tutions needed for a progressive democratic society;
(b) programs directed at enabling a country to meet the food
needs of its people from its own resources, including the furnish-
ing of technical knowledge and of resources necessary to increase
agricultural productivity; assistance for improved storage, trans-
portation, marketing, and credit facilities (including provision
for foreign currency loans to small farmers), cooperatives, water
conservation programs, and adaptive research programs; and
technological advice: Provided, That relief from the immediate
threat of famine, hunger, and malnutrition may be provided by
the United States and other countries, and that assistance pro-
vided under the Agricultural Trade Development and Assistance
Act of 1954, as amended,66 should complement assistance furnished
under this Act;
(c) assisting recipient countries in their efforts to meet increas-
ing needs for trained manpower in their development efforts by
improving education planning and research, training teachers and
administrators, developing and constructing educational institu-
tions, and using modern educational technology;
(d) developing programs to combat malnutrition, to control
and eradicate disease, to clear slums, and to provide adequate and
safe drinking water, adequate sewage disposal systems, overall
61 22 USC 2164.
S2 Se also Sec. 305 of Executive Order 10973, page 235.
3 Section 205, which related to transfers to international financial institutions, was
repenled hv See. 101(d) of the FAAct of 1971.
M 22 TTSC 2166. Sec. 206 was added by See. 102(b) of the FAAct of 1965.
05 22 USC 2167. See. 207 was added by Sec. 102(e) of the FAAct of 1967.
0 For text, see page 284.





25

health education, maternal and child care, and voluntary family
planning services which shall, where feasible, be included as part
of programs of maternal and child care, and other public health
assistance; and
(e) other important development activities including assistance
for programs to assist industrial development; the growth of free
labor unions, cooperatives, and voluntary agencies; improvement
of transportation and communication systems; development of
capabilities for sound economic planning and public administra-
tion; urban development; and modernization of existing laws to
facilitate economic development.
Sec. 208." Self-Help Criteria.-In determining whether and to
what extent the United States should furnish development assistance
to a country under this chapter the President shall take into account-
(a) the extent to which the country is taking such measures as
may be appropriate to its needs and capabilities to increase food
production and improve the means for storage and distribution
of food;
(b) the extent to which the country is creating a favorable
climate for private enterprise and investment, both domestic and
foreign;
(c) the extent to which the government of the country is in-
creasing the role of the people in the developmental process;
(d) the extent to which the country's governmental expendi-
tures are allocated to key developmental areas, including agricul-
ture, health, and education, and not diverted for unnecessary mili-
tary purposes or to intervention in the affairs of other free and
independent nations;
(e) the extent to which the country is willing to make contribu-
tions of its own to the projects and programs for which the assist-
ance is provided;
(f) the extent to which the country is making economic, social,
and political reforms, such as tax collection improvements and
changes in land tenure arrangements, that will enable it to achieve
developmental objectives more efficiently and justly; and
(g) the extent to which the country is otherwise showing a
responsiveness to the vital economic, political, and social concerns
of its people, and demonstrating a clear determination to take
efective self-help measures.
Sec. 209.63 Multilateral and Regional Programs.-(a) The Con-
gress recognizes that the planning and administration of development
assistance by, or under the sponsorship of the United Nations, multi-
lateral lending institutions, and other multilateral organizations may
contribute to the efficiency and effectiveness of that assistance through
participation of other donors in the development effort, improved co-
uvSC f 2168. Sec. 208 was added by Sec. 101(e) of the FAAct of 1967.
8 22 USC 2169, Sec. 209 was added by Sec. 102(e) of the FAAct of 19,67. Sec. 101
(c) (1) of the FAAct of 1971 amended subsection (a), which formerly read as follows :
i", (a) Multilateral Programs.-The Congress recognizes that planning and administra-
tion of development assistance by, or under the sponsorship of, multilateral lending institu-
tions and other international organizations may, in some instances, contribute to the
efficiency and effiectiveness of that assistance through participation of other donors in the
development effort, improved coordination of policies and programs, pooling of knowledge,
avoidance of duplication of facilities and manpower, and greater encouragement of self-help
Performance."






26

ordination of policies and programs, pooling of knowledge, avoidance
of duplication of facilities and manpower, and greater encouragement
of self-help performance.
(b)69 It is further the sense of the Congress (1) that where problems
or opportunities are common to two or more countries in a region, in
such fields as agriculture, education, transportation, communications,
power, watershed development, disease control, and establishment of
development banks, these countries often can more effectively resolve
such problems and exploit such opportunities by joining together in
regional organizations or working together on regional programs,
(2) that assistance often can be utilized more efficiently in regional
programs than in separate country programs, and (3) that to the
maximum extent practicable consistent with the purposes of this Act
assistance under this Act should be furnished so as to encourage less
developed countries to cooperate with each other in regional develop-
ment programs.
(c) 7 It is the sense of the Congress that the President should
increase, to the extent practicable, the funds provided by the United
States to multilateral lending institutions and multilateral organiza-
tions in which the United States participates for use by such institu-
tions and organizations in making loans to foreign countries.
(d)71 In furtherance of the provisions of subsection (a) of this sec-
tion, any funds appropriated under this part I may be transferred by
the President to the International Development Association, the Inter-
national Bank for Reconstruction and Development, the International
Finance Corporation, the Asian Development Bank or other Multi-
lateral lending institutions and multilateral organizations in which
the United States participates for the purpose of providing funds to
enable any such institution or organization to make loans to foreign
countries.

Title II-Technical Cooperation and Development Grants72
Sec. 211.73 General Authority.-(a) The President is authorized
to furnish assistance on such terms and conditions as he may determine
in order to promote the economic development of less developed friend-
ly countries and areas, with emphasis upon assisting the development
of human resources through such means as programs of technical
cooperation and development. In so doing, the President shall take
into account (1) whether the activity gives reasonable promise of con-
tributing to the development of educational or other institutions and
programs directed toward social progress, (2) the consistency of the
activity with, and its relationship to, other development activities
being undertaken, or planned, and its contribution to realizable long-
0 The words "Regional Programs.-", which appeared at this point, were struck out
by sec. 101(c) (3) of the FAAct of 1971.
0 Subsection (c), which was added by Sec. 101(c) (2) of the FAAct of 1971, was
amended by Sec. 311 of Public Law 94-161 (89 Stat. 849). It formerly read as follows:
"Notwithstanding any other provision of law, the President should reduce the amounts and
numbers of loans made by the United States directly to individual foreign countries with
the objective of reducing the total amount of bilateral loans made under this Act so that,
by not later than June 30, 1975, such total amount shall not exceed $100,000,000."
71 Subectlons (c) and (d) were added by Sec. 101(c) (2) of the FAAct of 1971. See. 110
of the FA Appropriation Act, 1975, prohibits the use of funds contained in title I of that
Act to carry out the provisions of sections 209(d) and 251(h) of this Act.
72 eec. 102(a) of the FAAct of 1964 amended the title heading. which formerly read:
"TITLE TT-DiEVELOPMENT (0IANTS AND TECHNICAL COOPERATION".
73 22 USC 2171.





27

range development objectives, (3) the economic and technical sound-
ness of the activity to be financed, (4) the extent to which the recipient
country is showing a responsiveness to the vital economic, political,
and social concerns of its people, and demonstrating a clear determi-
nation to take effective self-help measures and a willingness to pay
a fair share of the cost of programs under this title, (5) the possible
adverse effects upon the United States economy, with special reference
to areas of substantial labor surplus, of the assistance involvedc, (6)
the desirability of safeguarding the international balance of pay-
ments position of the United States, (7) the degree to which the re-
cipient country is making progress toward respect for the rule of law,
freedom of expression and of the press, and recognition of the im-
portance of individual freedom, initiative, and private enterprise, and
(8) whether or not the activity to be financed will contribute to the
achievement of self-sustaining growth. If the President finds that
assistance proposed to be furnished under this title would have a sub-
stantially adverse effect upon the United States economy, or a sub-
stantial segmlent thereof, the assistance shall not be furnished.75 The
authority of this title shall not be used to furnish assistance directly 7
to more than forty countries in any fiscal year, except that up to
$600,000 may be used for self-help projects in additional countries dur-
ing such fiscal year.77
(b) In countries and areas which are in the earlier stages of eco-
nomic development, programs of development of education and human
resources through such means as technical cooperation shall be empha-
sized, and the furnishing of capital facilities for purposes other than
the development of education and human resources shall be given a
lower priority until the requisite knowledge and skills have been
developed.
(c)78 Not to exceed $1,000,000 of the funds made available for the
purposes of this section in any fiscal year may be used for programs
designed to promote the peaceful uses of atomic energy outside the
United States and such programs may be carried out only in accord-
ance with the requirements of this section.
(d)"7 Not to exceed $10,000,000 of funds made available in any fiscal
year 80 under section 212, or under section 252 (other than loan funds),
may be used for assistance, on such terms and conditions as the Presi-
dent may specify, to research and educational institutions in the
United States for the purpose of strengthening their capacity to de-
velop and carry out programs concerned with the economic and social
development of less developed countries.
(e)79 In any developing countries or areas where food production is
not increasing enough to meet the demands of an expanding popula-
74 Sec. 103(a)(1) of the FAAct of 1966 struck out "and" at the end of clause (5), sub-
stituted the comma for a period at the end of clause (6), and added clauses (7) and (8).
SSee also Secs. 201(b) (6), 237 (k) and 604 (a) of this Act.
6 See. 4(1) of the FAAct of 1973 inserted the word "directly".
; The last sentence was added by Sec. 103(a) (2) of the FAAct of 1966. Sec. 103(a) of
the FAAct of 1967 amended the last sentence by substituting the words beginning with
"except that up to" in lieu of "except that such assistance may be furnished to any addi-
tional country after at least thirty days shall have elapsed following the submission by
the President to the Committee on Foreign Relations of the Senate and the Speaker of
the House of epresentatives of a report stating that the furnishing of assistance to such
additionl tourltry during such fiscal year Is in the national interest and giving his reasons
Subsection (c) was added by Sec. 103(a) of the FAAct of 1962.
9 Subsections (d) and (e) were added by See. 103(a) (3) of the FAAct of 1966.
0 The words "in any fiscal year" were added by See. 102(a) of the FAAct of 1968.







28

tion, or diets are seriously deficient, a high priority shall be given to
efforts to increase agricultural production, particularly the establish-
ment or expansion of adaptive research programs designed to increase
acre-yields of the major food crops. Such research programs, to the
greatest extent possible, should be based on cooperative undertakings
between universities and research institutions in the developing coun-
tries and United States universities and research institutions.
Sec. 212.81 Authorization.-To carry out the purposes of section
211, there is authorized to be appropriated to the President $175,000,-
000 for the fiscal year 1972, and $175,000,000 for the fiscal year 1973,82
which amounts are authorized to remain available until expended.
Sec. 213.83 Atoms for Peace. * [Repealed-1962]
Sec. 214.84 American Schools and Hospitals Abroad.-(a) The
President is authorized to furnish 85 assistance, on such terms and
conditions as he may specify, to schools and libraries outside the
United States founded or sponsored by United States citizens and
serving as study and demonstration centers for ideas and practices of
the United States.
(b) The President is authorized,86 notwithstanding the provisions of
the tMutual Defense Assistance Control Act of 1951 (22 U.S.C. 1611
et seq.)87 to furnish s8 assistance, on such terms and conditions as he
may specify, to institutions referred to in subsection (a) of this sec-
tion, and to hospital centers for medical education and research out-
side the United States, founded or sponsored by United States
citizens.89
(c) 90 To carry out the purposes of this section, there are authorized
to be appropriated to the President for each of the fiscal years 1974

s1 22 USC 2172. Sec. 103(b) of the FAAct of 1967 amended Sec. 212, which formerly
read as follows: "There is hereby authorized to be appropriated to the President for use
beginning in the fiscal year 1967 to carry out the purposes of section 211 not to exceed
$210.000,000, which shall remain available until expended."
S2 See. 102(a) of the FAAct of 1971 substituted the words "$175,000,000 for the fiscal
year 1972, and $175,000,000 for the fiscal year 1973" in lieu of "$183,500,000 for the fiscal
year 1970, and $183,500,000 for the fiscal year 1971".
FA Appropriations Act, 1972: "$160,000,000: Provided, That no part of this appropria-
tion shall be used to initiate any project or activity which has not been justified to the
Congress."
83 Sec. 103(c) of the FAAct of 1962 struck out former Sec. 213, which related to atoms
for peace.
s4 22 USC 2174.
85 Sec. 103(b)(1) of the FAAct of 1963 substituted the word "furnish" for the words
"use, in addition to other funds available for such purposes, funds made available for the
purposes of Section 211 for".
% Sec. 103 (b) (2) of the FAAct of 1963 struck out the words "to use" which appeared at
this noint.
87 For text, see page 215.
88 Sec. 103(b) (2) of the FAAct of 1963 substituted the words "to furnish" for the words
"foreign currencies accruing to the United States Government under any Act, for purposes
of subsection (2) of this section, and for".
Sec. 103(c)(1) of the FAAct of 1966 substituted the words to this point, beginning
with "to institutions referred to" in lieu of "to hospitals outside the United States founded
or sponsored by United States citizens and serving as centers for medical education and
research".
o Sec. 4(2) of the FAAct of 1973 substituted subsections (c), (d) and (e) in lieu of
subsections (c) and (d), which formerly read:
"(c) There is hereby authorized to be appropriated to the President for the purposes
of this section, for the fiscal year 1972, $30,000,000 and for the fiscal year 1973,
$30,000.000 which amounts are authorized to remain available until expended. Amounts
appropriated under this subsection for the fiscal year 1970 shall be available for expendi-
tures solely in accordance with the allocations set forth on pages 25 and 26 of House
Report No. 91-611 and on page 23 of Senate Report No. 91-603.
"(d) There is authorized to be appropriated to the President for the purposes of section
214(b), in addition to funds otherwise available for such purposes, for the fiscal year 1970,
$3,000,000 in foreign currencies which the Secretary of the Treasury determines to be excess
to the normal requirements of the United States. Foreign currencies appropriated :Under
this subsection shall be available for expenditure solely in accordance with the allocation
set forth on page 23 of Senate Report No. 91-603."





29

and 1975 $19.000,000,"1 and for each of the fiscal years 1976 and 1977,
$25,000,000,9 which amounts are authorized to remain available until
expended.
(d) 90 These are authorized to be appropriated to the President to
carry out the purposes of this section, in addition to funds otherwise
available for such purposes, for each of the fiscal years 1974 and 1975
$6,5 00 0 3 and for each of the fiscal years 1976 and 1977, $7,000,000,94
in foreign currencies which the Secretary of the Treasury determines
to be excess to the normal requirements of the United States.
(e)90 Not later than June 30, 1974, the Secretary of State shall sub.
mit to the Congress such recommendations (including recommenda-
tions concerning which agency of the United States Government
should administer such assistance) as he considers desirable for assist-
ance to schools, libraries, and hospital centers for medical education
and research, outside the United States, founded or sponsored by
United States citizens and serving as study and demonstration centers
for ideas and practices of the United States.
Sec. 215.95 Loans to Small Farmers.-It is the policy of the
United States and the purpose of this section to strengthen the econo-
mies of less developed friendly countries, and in friendly countries
where the economy is essentially rural or based on small villages, to
provide assistance designed to improve agricultural methods and tech-
niques, to stimulate and encourage the development of local programs
of self-help and mutual cooperation, particularly through loans of
foreign currencies for associations of operators of small farms, formed
for the purpose of joint action designed to increase or diversify agri-
cultural productivity. The maximum unpaid balance of loans made to
any association under this section may not exceed $25,000 at any one
time; and the aggregate unpaid balance of all loans made under this
section may not exceed $10,000,000 at any one time.
See. 216.96 Voluntary Agencies.-(a) In order to further the
efficient use'of United States voluntary contributions for relief and
rehabilitation of friendly peoples, the President is authorized to use
funds made available for the purposes of section 211 to pay transpor-
tation charges from United States ports or, in the case of excess or
surplus property supplied by the United States, from foreign ports 97
to ports of entry abroad, or, in the case of landlocked countries, to
points of entry in such countries, on shipments by the American Red
Cross and United States voluntary nonprofit relief agencies registered
with and approved by the Advisory Committee on Voluntary Foreign
Aid.
(b) Where practicable the President shall make arrangements with
the receiving country for free entry of such shipments and for the
making available by the country of local currencies for the purpose of
0- FA Appropriation Act, 1975 : $17 500,000.
92The words to this point commencing with "and for each of the fiscal years 1976 * *"
were added by Sec. 311(2) (A) of Public Law 94-161 (89 Stat. 849).
FA Appropriation Act, 1975: "$6,500,000 in foreign currencies which the Treasury
Department determines to be excess to the normal requirements of the United States, to
remain available until expended".
The words to this point commencing with "and for each of the fiscal years 1976 * *"
were added by See. 311(2) (B) of Public Law 94-161 (89 Stat. 849).
W 22 USC 2175.
9622 USC 2176.
7 The words to this point, beginning with "or, in the case of" were added by See. 102 (d)
of the FAAct of 1964.





30

defraying the transportation cost of such shipments from the port of
entry of'the receiving country to the designated shipping point of the
consignee.
Sec. 217.9s Used Equipment.-The President is authorized to use
funds made available for the purposes of section 211 to conduct a study
and investigation to determine the feasibility of establishing programs
for the furnishing to less developed friendly countries and areas of
used tools, machinery, and other equipment to be donated by private
enterprises, or acquired through normal channels of trade, and the
extent to which such programs are likely to be utilized by and con-
tribute to the economic development of the receiving country. The
President shall submit to the Congress at the earliest practicable date
a report of the result of such study and investigation, together with
such recommendations for legislation as he deems advisable.99
Sec. 218.100 Fish and Other Protein Concentrates.-(a) The
President is authorized to conduct a program designed to demonstrate
the potential and to encourage the use of fish and other protein concen-
trates as a practical means of reducing nutritional deficiencies in less
developed countries and areas. This program shall include-
(1) studies and activities relating to food technology;
(2) development of suitable marketing techniques;
(3) development of consumer acceptance programs; and
(4) feeding programs designed to demonstrate the nutritional
value of fish and other protein concentrates as a diet supplement.
In carrying out his functions under this section, the President shall
consult with the National Council on Marine Resources and Engineer-
ing Development, appropriate Government agencies and other such
technical groups or agencies as may be helpful with such activities. In
accordance with section 601(b) of this Act, the President shall en-
courage full participation in such program by United States private
enterprise.
The President is authorized to use funds made available under
this part for the purposes of this section, and is urged to use at least
$2,500,000 of such funds for such purposes.
Sec. 219.101 Prototype Desalting Plant.-(a) In furtherance of the
purposes of this part and for the purpose of improving existing, and
developing and advancing new technology and experience in the
design, construction, and operation of large-scale desalting plants of
advanced concepts which will contribute materially to low-cost de-
salination in all countries, including the United States, the President,
if he determines it to be feasible, is authorized to participate in the
development of a large-scale water treatment and desalting prototype
plant and necessary appurtenances to be constructed in Israel as an
integral part of a dual-purpose power generating and desalting
project. Such participation shall include financial, technical, and such
other assistance as the President deems appropriate to provide for the
study, design, construction, and, for a limited demonstration period
of not to exceed five years, operation and maintenance of the water
treatment and desalting facilities of the dual-purpose project.
9s 22 USC 2177. This section was added by See. 102(e) of the FAAct of 1964.
99 For other reports required to be submitted to Congress, see Reports to Congress, Index.
1oo 22 USC 2178. Sec. 218 was added by Sec. 103(d) of the FAAct of 1967.
101 22 USC 2179. Sec. 219 was added by Sec. 104 of the FAAct of 1969.





31

(b) Any agreement entered into under subsection (a) of this section
shall include such terms and conditions as the President deems appro-
priate to insure, among other things, that all information, products,
uses, processes, patents, and other developments obtained or utilized
in the development of this prototype plant will be available without
further cost to the United States for the use and benefit of the United
States throughout the world, and to insure that the United States, its
officers and employees have a permanent right to review data and have
access to such plant for the purpose of observing its operations and
improving science and technology in the field of desalination.
(c) In carrying out the provisions of this section, the President may
enter into contracts with public or private agencies and with any per-
son without regard to sections 3648 and 3709 of the Revised Statutes of
the United States (31 U.S.C. 529 and 41 U.S.C. 5).
(d) Nothing in this section shall be construed as intending to deprive
the owner of any background patent or any right which such owner
may have under that patent.
(e) In carrying out the provisions of this section, the President may
utilize the personnel, services, and facilities of any Federal agency.
(f) The United States costs, other than its administrative costs, for
the study, design, construction, and operation of a prototype plant
under this section shall not exceed either 50 per centum of the total
capital costs of the facilities associated with the production of water,
and 50 per centum of the operation and maintenance costs for the
demonstration period, or $20,000,000, whichever is less. There are au-
thorized to be appropriated, subject to the limitations of this sub-
section, such sums as may be necessary to carry out the provisions of
this section, including administrative costs thereof. Such sums are au-
thorized to remain available until expended.'02
(g) No funds appropriated for the Office of Saline Water pursuant
to the appropriation authorized by the Act of July 11, 1969 (83 Stat.
45, Public Law 91-43), or prior authorization Acts, shall be used to
carry out the purposes of this section.
Sec. 220.103 Programs for Peaceful Communication.-The Presi-
dent is authorized to use funds made available under section 212 to
carry out programs and peaceful communications which make use of
television and related technologies, including satellite transmissions,
for educational, health, agricultural, and community development
purposes in the less developed countries.
(b) In carrying out programs in the fields of education, health,
agriculture, and community development, the agency primarily re-
sponsible for part I shall, to the extent possible, assist the developing
countries with research, training, planning assistance, and project sup-
port in the use of television and related technologies, including satellite
transmissions. The agency shall make maximum use of existing satel-
lite capabilities, including the facilities of the International Tele-
communications Satellite Consortium.
(c) In implementing activities under this section, the agency pri-
marily responsible for part I shall coordinate closely with Federal,
State, and local agencies and with nongovernmental educational,
12 FA Appropriation Act, 1970: $20,000,000.
m USC 2180. Sec. 220 was added by Sec. 105 of the FAAct of 1969.
65-998--76-----4






32

health, and agricultural institutions and associations within the
United States.
Sec. 220A.104 Suez Canal.-The President is authorized to furnish
financial assistance, on such terms and conditions as he may determine,
for assisting in the reopening of the Suez Canal after agreement has
been reached by the parties involved, which agreement provides for
the use of the Canal by the ships of all nations, including Israel, on a
nondiscriminatory basis. For the purpose of carrying out this sec-
tion, there are authorized to be appropriated not to exceed $10,000,000
in Egyptian pounds now owned by the United States and determined
by the President to be excess to the normal requirements of depart-
ments and agencies of the United States. Amounts appropriated under
this section are authorized to remain available until expended.
Title III--Housing and Other Credit Guaranty Programs10
Sec. 221.106 Worldwide Housing Guaranties.-In order to facilitate
and increase the participation of private enterprise in furthering the
development of the economic resources and productive capacities of
less developed friendly countries and areas, and promote the develop-
ment of thrift and credit institutions engaged in programs of mo-
bilizing local savings for financing the construction of self-liquidating
housing projects and related community facilities, the President is
authorized to issue gutaranties, on such terms and conditions as he
shall determine, to eligible investors as defined in section 238(c),
assuring against loss of loan investments for self-liquidating housing
projects. The total face amount of guaranties issued hereunder, out-
standing at any one time, shall not exceed $430,000,000.107 Such guar-
anties shall be issued under the conditions set forth in sectiof 222(b)
and section 223.
Sec. 222.108 Housing Projects in Latin American Countries.-
(a) The President shall assist in the development in the American
Republics of self-liquidating housing projects, the development of
institutions engaged in Alliance for Progress programs, including co-
operatives, free labor unions, savings and loan type institutions, and
other private enterprise programs in Latin America engaged directly
or indirectly in the financing of home mortgages, the construction of
homes for lower income persons and families, the increased mobiliza-
tion of savings and improvement of housing conditions in Latin
America.
(b) To carry out the purposes of subsection (a), the President is
authorized to issue guaranties, on such terms and conditions as he
shall determine, to eligible investors, as defined in section 238(c),
assuring against loss of loan investment made by such investors in-
(1) private housing projects in Latin America of types similar
to those insured by the Department of Housing and Urban Devel-
opment and suitable for conditions in Latin America;
104 22 USC 2180a. Sec. 220A was added by Sec. 102(c) of the FAAct of 1971.
106 Title III was added by See. 105 of the FAAct of 1969. Sec. 8(a) (1) of the FAAct
of 1974 substituted the title heading "Housing and Other Credit Guaranty Programs"
in lieu of "Housing Guaranties".
0e 22 USC 2181. Sec. 221 was added by See. 105 of the FAAct of 1969.
107 Sec. 311(3) of Public Law 94-161 (89 Stat. 849) substituted "$430,000,000" In lieu
of "$355.000,000".
108 22 USC 2182. Sec. 222 was added by Sec. 105 of the FAAct of 1969.





33

(2) credit institutions in Latin America engaged directly or
indirectly in the financing of home mortgages, such as savings and
loan institutions and other qualified investment enterprises;
(3) housing projects in Latin America for lower income fami-
lies and persons, which projects shall be constructed in accordance
with maximum unit costs established by the President for fami-
lies and persons whose incomes meet the limitations prescribed by
the President;
(4) housing projects in Latin America which will promote the
development of institutions important to the success of the
Alliance for Progress, such as free labor unions, cooperatives, and
other private programs; or
(5) housing projects in Latin America, 25 per centum or more
of the aggregate of the mortgage financing for which is made
available from sources within Latin America and is not derived
from sources outside Latin America which projects shall, to the
maximum extent practicable, have a unit cost of not more than
$8,500.
(c) The total face amount of guaranties issued hereunder or hereto-
fore under Latin American housing guaranty authority repealed by
the Foreign Assistance Act of 1969, outstanding at any one time, shall
not exceed $600,000,000 lro: Provided, That $325.000.00 of such guar-
anties may be used only for the purposes of subsection (b) (1).
Sec. 222A.110 Agricultural and Productive Credit and Self-Help
Community Development Programs.-(a) It is the sense of the
Congress that in order to stimulate the participation of the private
sector in the economic development of less-developed countries in
Latin America, the authority conferred by this section should be
used to establish pilot programs in not more than five Latin American
countries to encourage private banks, credit institutions, similar pri-
vate lending organizations, cooperatives, and private nonprofit devel-
opment organizations to make loans on reasonable terms to organized
groups and individuals residing in a community for the purpose of
enabling such groups and individuals to carry out agricultural credit
and self-help community development projects for which they are
unable to obtain financial assistance on reasonable terms. Agricultural
credit and assistance for self-help community development projects
should include, but not be limited to, material and such projects as
wells, pumps, farm machinery, improved seed, fertilizer, pesticides,
vocational training, food industry development, nutrition projects, im-
proved breeding stock for farm animals, santitation facilities, and
looms and other handicraft aids.
(b) To carry out the purposes of subsection (a), the agency pri-
marily responsible for administering part I is authorized to issue
guaranties, on such terms and conditions as it shall determine, to pri-
vate lending institutions, cooperatives, and private nonprofit develop-
ment organizations in not more than five Latin American countries
assuring against loss of not to exceed 50 per centum of the portfolio
of such loans made by any lender to organized groups or individuals
(09 Sec. 311(4) of Public Law 94-161 (89 Stat. 849) substituted $600,000,000" in lieu
of "$550,000,000".
1o 22 USC 2182a. See. 222A was added by See. 8(a) (2) of the FAAct of 1974.





34

residing in a community to enable such groups or individuals to carry
out agricultural credit and self-help community development proj-
ects for which they are unable to obtain financial assistance on reason-
able terms. In no event shall the liability of the United States exceed
75 per centum of any one loan.
(c) The total face amount of guaranties issued under this section
outstanding at any one time shall not exceed $15,000,000. Not more
than 10 per centum of such sum shall be provided for any one insti-
tution, cooperative, or organization.
(d) The Inter-American Foundation shall be consulted in develop-
ing criteria for making loans eligible for guaranty coverage in Latin
America under this section.
(e) Not to exceed $3,000,000 of the guaranty reserve established
under section 223(b) shall be available to make such payments as may
be necessary to discharge liabilities under guaranties issued under this
section or any guaranties previously issued under section 240 of this
Act.
(f) Funds held by the Overseas Private Investment Corporation
pursuant to section 236 may be available for meeting necessary admin-
istrative and operating expenses for carrying out the provisions of this
section through June 30, 1976.
(g) The Overseas Private Investment Corporation shall, upon en-
actment of this subsection, transfer to the agency primarily responsible
for administering part I all obligations, assets, and related rights and
responsibilities arising out of, or related to the predecessor program
provided for in section 240 of this Act.
(h) The authority of this section shall continue until December 31,
1977.
(i) Notwithstanding the limitations in subsection (c) of this section,
foreign currencies owned by the United States and determined by the
Secretary of the Treasury to be excess to the needs of the United
States may be utilized to carry out the purposes of this section, includ-
ing the discharge of liabilities under this subsection. The authority
conferred by this subsection shall be in addition to authority conferred
by any other provision of law to implement guaranty programs uti-
lizing excess local currency.
(j) The President shall, on or before January 15, 1976, make a de-
tailed report to the Congress on the results of the program established
under this section, together with such recommendations as he may
deem appropriate.
Sec. 223.111 General Provisions.-(a) A fee shall be charged for
each guaranty issued under section 221, 222, or 222A 112 in an amount
to be determined by the President. In the event the fee to be charged
for such type guaranty is reduced, fees to be paid under existing con-
tracts for the the same type of guaranty may be similarly reduced.
(b) The amount of $50,000,000 of fees accumulated under prior in-
vestment guaranty provisions repealed by the Foreign Assistance Act
of 1969, together with all fees collected in connection with guaranties
issued hereunder, shall be available for meeting necessary administra-
tive and operating expenses of carrying out the provisions of section
"~ 22 USC 2183. Sec. 223 was added by Sec. 105 of the FAAct of 1969.
u2 Sec. 8(a) 3) of the FAAct of 1974 substituted "section 221, 222, or 222A" in' leu of
"section 221 or section 222".





35

221 and section 222 11 and of prior housing guaranty provisions re-
pealed by the Foreign Assistance Act of 1969 (including, but not
limited to expenses pertaining to personnel, supplies, and printing),
subject to such limitations as may be imposed in annual appropriation
Acts; for meeting management and custodial costs incurred with re-
spect to currencies or other assets acquired under guaranties made
pursuant to section 221 or section 222 or heretofore pursuant to prior
Latin American and other housing guaranty authorities repealed by
the Foreign Assistance Act of 1969; and to pay the cost of investigat-
ing and adjusting (including costs of arbitration) claims under such
guaranties; and shall be available for expenditure in discharge of
liabilities under such guaranties until such time as all such property
has been disposed of and all such liabilities have been discharged or
have expired, or until all such fees have been expended in accordance
with the provisions of this subsection.
(c) Any payments made to discharge liabilities under guaranties
issued under section 221 or section 222 or heretofore under prior Latin
American or other housing guaranty authorities repealed by the For-
eign Assistance Act of 1969, shall be paid first out of fees referred to in
subsection (b) (excluding amounts required for purposes other than
the discharge of liabilities under guaranties) as long as such fees are
available, and thereafter shall be paid out of funds, if any, realized
from the sale of currencies or other assets acquired in connection with
any payment made to discharge liabilities under such guaranties as
long as funds are available, and finally out of funds hereafter made
available pursuant to subsection (e).
(d) All guaranties issued under section 221,222, 222A, or previously
under section 240 of this Act 11 or heretofore under prior Latin Ameri-
can or other housing guaranty authority repealed by the Foreign As-
sistance Act of 1969 shall constitute obligations, in accordance with the
terms of such guaranties, of the United States of America and the
full faith and'credit of the United States of America is hereby pledged
for the full payment and performance of such obligations.
(e) There is hereby authorized to be appropriated to the President
such amounts, to remain available until expended, as may be necessary
from time to time to carry out the purposes of this title.
(f) In the case of any loan investment guaranteed under section 221
or section 222, the agency primarily responsible for administering
part I shall prescribe the maximum rate of interest allowable to the
eligible investor, which maximum rate shall not be less than one-half
of 1 per centum above the then current rate of interest applicable to
housing mortages insured by the Department of Housing and Urban
Development. In no event shall the agency prescribe a maximum al-
lowable rate of interest which exceeds by more than 1 per centum the
then current rate of interest applicable to housing mortages insured
by such Department. The maximum allowable rate of interest under
this subsection shall be prescribed by the agency as of the date the
project covered by the investment is officially authorized and, prior to
S 8ec. R8a) (4) of the FAAct of 1974 substituted "section 221 'and section 222" in lieu
of "this title".
"* S. S(a) (I) of the FAAct of 1974 substituted "section 221. 222, 222A, or previously
under section 240 of this Act" in lieu of "section 221 or section 222".






36

the execution of the contract, the agency may amend such rate at its
discretion, consistent with the provisions of subsection (f).
(g) Housing guaranties committed, authorized, or outstanding
under prior housing guaranty authorities repealed by the Foreign As-
sistance Act of 1969 shall continue subject to provisions of law origi-
nally applicable thereto and fees collected hereafter with respect to
such guaranties shall be available for the purposes specified in subsec-
tion (b).
(h) No payment may be made under any guaranty issued pursuant
to this title for any loss arising out of fraud or misrepresentation for
which the party seeking payment is responsible.
(i) The authority of section 221 and section 222 shall continue until
September 30, 1978.11
(j) 116 Guaranties shall be issued under sections 221 and 222 only for
housing projects which (1) except for regional projects are in coun-
tries which are receiving, or which in the previous two fiscal years
have received, development assistance under chapter 1 of part I of
this Act, (2) are coordinated with and complementary to such assist-
ance, and (3) are specifically designed to demonstrate the feasibility
and suitability of particular kinds of housing or of financial or other
institutional arrangements. Of the aggregate face value of housing
guaranties hereafter issued under this title, not less than 90 per
centum shall be issued for housing suitable for families with income
below the median income (below the median urban income for housing
in urban areas) in the country in which the housing is located. The
face value of guaranties issued with respect to housing in any country
shall not exceed $25,000,000 in any fiscal year, and the average face
value of guaranties issued in any fiscal year shall not exceed $15,000,-
000. Notwithstanding the provisions of the first sentence of this sub-
section, the President is authorized to issue housing guaranties until
September 30, 1977, as follows: In Israel, not exceeding a face amount
of $50,000,000, and in Portugal, not exceeding a face amount of
$20,000,000.

Title IV-Overseas Private Investment Corporation 17
See. 231..18 Creation, Purpose, and Policy.-To mobilize and
facilitate the participation of United States private capital and skills
in the economic and social development 119 of less developed friendly
countries and areas, thereby complementing the development assist-
ance objectives of the United States, there is hereby created the
Overseas Private Investment Corporation (hereinafter called the
"Corporation"), which shall be an agency of the United States under
the policy guidance of the Secretary of State.
In carrying out its purpose, the Corporation, utilizing broad cri-
teria, shall undertake-
15 Sec. 311(5) (A) of Public Law 94-161 (89 Stat. 849) substituted "September 30,
1978" in lieu of "June 30, 1976".
1"" Sec. 311(5)(B) of Public Law 94-161 (89 Stat. 849) added subsection (j).
17 Title IV was added by see. 105 of the FAAct of 1969.
"s 22 USC 2191. Sec. 231 was added by See. 105 of the FAAct of 1969.
119 Sec. 2(1) (A) of the Overseas Private Investment Corporation Amendments Act of
1974 (Public Law 93-390, approved Aug. 27, 1974) substituted "development" in. teu of
"progress".





37

(a)120 to conduct financing, insurance, and reinsurance opera-
tions on a self-sustaining basis, taking into account in its financing
operations the economic and financial soundness of projects;
(b) to utilize private credit and investment institutions and
the Corporation's guaranty authority as the principal means of
mobilizing capital investment funds;
(c) to broaden private participation and revolve its funds
through selling its direct investments to private investors when-
ever it can appropriately do so on satisfactory terms;
(d) to conduct its insurance operations with due regard to
principles of risk management including 121 efforts to share its in-
surance risks and reinsurance 122 risks;
(e)123 to give preferential consideration in its investment insur-
ance, financing, and reinsurance activities (to the maximum ex-
tent practicable consistent with the Corporation's purposes) to
investment projects involving businesses of not more than
$2,500,000 net worth or with not more than $7,500,000 in total
assets;
(f) to encourage and support only those private investments in
less developed friendly countries and areas which are sensitive
and responsive to the special needs and requirements of their econ-
omies, and which contribute to the social and economic develop-
ment of their people;
(g) to consider in the conduct of its operations the extent to
which less developed country governments are receptive to private
enterprise, domestic and foreign, and their willingness and ability
to maintain conditions which enable private enterprise to make its
full contribution to the development process;
(h) to foster private initiative and competition and discourage
monopolistic practices;
(i) to further to the greatest degree possible, in a manner con-
sistent with its goals, the balance-of-payments and employ-
ment 124 objectives of the United States;
(j) to conduct its activities in consonance with the activities of
the agency primarily responsible for administering part I and the
international trade, investment, and financial policies of the
United States Government;
(k) to advise and assist, within its field of competence, inter-
ested agencies of the United States and other organizations, both
public and private, national and international, with respect to
projects and programs relating to the development of private en-
terprise in less developed countries and areas;
m0 Subsection (a) was amended by See. 2(1)(B) of the Overseas Private Investment
Cororpation Amendments Act of 1974 (Public Law 93-390). It formerly read as follows :
"(a) to conduct financing operations on a self-sustaining basis, taking into account the
economic and financial soundness of projects and the availability of financing from other
sources on appropriate terms ;".
12 See. 2(1) (C) of the Overseas Private Investment Corporation Amendments Act of
1974 (Public Law 93-390) struck the words, "when appropriate," which appeared at
this point.
m See. 2(1) (C) of the Overseas Private Invesment Corporation Amendments Act of 1974
(Public Law 93-390) added the words "and reinsurance".
13 Subsection (e) was amended by See. 2(1)(D) of the Overseas Private Investment
Corporation Amendments Act of 1974 (Public Law 93-390). It formerly read as follows:
"(e) to utilize, to the maximum practicable extent consistent with the accomplishment
of its purpose, the resources and skills of small business and to provide facilities to
encourage its full participation in the programs of the Corporation;".
1' See. 2(1) (E) of the Overseas Private Investment Corporation Amendments Act of
1974 (Public Law 93-390) added the words "and employment".






38

(1).125 to the maximum extent practicable, to give preferential
consideration in the Corporation's investment insurance, financ-
ing, and reinsurance activities to investment projects in the less
developed friendly countries which have per capita incomes of
$450 or less in 1973 United States dollars; and
(m) 12 (1) to decline to issue any contract of insurance or rein-
surance, or any guaranty, or to enter into any agreement to pro-
vide financing for an eligible investor's proposed investment if
the Corporation determines that such investment is likely to cause
such investor (or the sponsor of an investment project in which
such investor is involved) significantly to reduce the number of
his employees in the United States because he is replacing his
United States production with production from such investment
which involves substantially the same product for substantially
the same market as his United States production; and (2) to
monitor conformance with the representations of the investor on
which the Corporation relied in making the determination re-
quired by clause (1).
Sec. 232."26 Capital of the Corporation.-The President is au-
thorized to pay in as capital of the Corporation, out of dollar receipts
made available through the appropriation process from loans made
pursuant to this part and from loans made under the Mutual Security
Act of 1954, as amended, for the fiscal year 1970 not to exceed $20,000,-
000 and for the fiscal year 1971 not to exceed $20,000,000. 127 Upon the
payment of such capital by the President, the Corporation shall issue
an equivalent amount of capital stock to the Secretary of the Treasury.
Sec. 233.128 Organization and Management.-(a) Structure of
the Corporation.-The Corporation shall have a Board of Directors,
a President, an Executive Vice President, and such other offers and
staff as the Board of Directors may determine.
(b) Board of Directors.-All powers of the Corporation shall vest
in and be exercised by or under the authority of its Board of Directors
("the Board") which shall consist of eleven Directors, including the
Chairman, with six Directors constituting a quorum for the trans-
action of business. The Administrator of the Agency for International
Development shall be the Chairman of the Board, ex officio. Six Direc-
tors (other than the President of the Corporation, appointed pur-
suant to subsection (c) who shall also serve as a Director) shall be
appointed by the President of the United States, by and with the
advice and consent of the Senate, and shall not be officials or employees
of the Government of the United States. As least one of the six Direc-
tors appointed under the preceding sentence shall be experienced in
small business, one in organized labor, and one in cooperatives. Each
such Director shall be appointed for a term of no more than three
years. The terms of no more than two such Directors shall expire in any
one year. Such Directors shall serve until their successors are appointed
and qualified and may be reappointed.
The other Directors shall be officials of the Government of the United
States, designated by and serving at the pleasure of the Prseident of
the United States.
1 Subsections (1) and (m) were added by See. 2(1) (H) of the Overseas Private Invest-
ment Cororation Amendments Act of 1974 (Public Law 93-390).
1 22 U2C 2192. Sec. 232 was added by Sec. 105 of the FAAct of 1969.
-2 FA Appropriation Act. 1974. included no appropriation under this authorization.
123 22 USC 2193. Sec. 233 was added by Sec. 105 of the FAAct of 1969.




39

All Directors who are not officers of the Corporation or officials of
the Government of the United States shall be compensated at a rate
equivalent to that of level IV of the Executive Schedule (5 U.S.C.
5315) when actually engaged in the business of the Corporation and
may be paid per diem in lieu of subsistence at the applicable rate pre-
scribed in the standardized Government travel regulations, as
amended, from time to time, while away from their homes or iusual
places of business.
(c) President of the Corporation.-The President of the Corpora-
tion shall be appointed by the President of the United States, by and
with the advice and consent of the Senate, and shall serve at the
pleasure of the President. In making such appointment, the President
shall take into account private business experience of the appointee.
The President of the Corporation shall be its Chief Executive Officer
and responsible for the operations and management of the Corpora-
tion, subject to bylaws and policies established by the Board.
(d) Officers and staff.-The Executive Vice President of the
Corporation shall be appointed by the President of the United States,
by and with the advice and consent of the Senate, and shall serve at
the pleasure of the President. Other officers, attorneys, employees, and
agents shall be selected and appointed by the Corporation, and shall be
vested with such powers and duties as the Corporation may determine.
Of such persons employed by the Corporation, not to exceed twenty
may be appointed, compensated, or removed without regard to the civil
service laws and regulations: Provided, That under such regulations
as the President of the United States may prescribe, officers and em-
ployees of the United States Government who are appointed to any of
the above positions may be entitled, upon removal from such position,
except for cause, to reinstatement to the position occupied at the time
of appointment or to a position of comparable grade and salary. Such
positions shall be in addition to those otherwise authorized by law,
including those authorized by section 5108 of title 5 of the United
States Code.
Sec. 234.129 Investment Insurance and Other Programs.'30-The
Corporation is hereby authorized to do the following:
(a) Investment Insurance.-(1) To issue insurance, upon such
terms and conditions as the Corporation may determine, to eligible
investors assuring protection in whole or in part against any or all of
the following risks with respect to projects which the Corporation has
approved-
(A) inability to convert into United States dollars other cur-
rencies, or credits in such currencies, received as earnings or profits
from the approved project, as repayment or return of the invest-
ment therein, in whole or in part, or as compensation .for the sale
or disposition of all or any part thereof;
(B) loss of investment, in whole or in part, in the approved
project due to expropriation or confiscation by action of a foreign
government; and
(C) loss due to war, revolution, or insurrection.
1 922 USC 2194. See. 234 was added by Sec. 105 of the FAAct of 1969.
1 See. 2(2) (A) of the Overseas Private Investment Corporation Amendments Act of
1974 (Public Law 93-390) substituted section caption "Investment Insurance and Other
Programs" in lieu of "Investment Incentive Programs".






40

(2) 131 Recogniziln that major private investments in less developed
friendly 'countries or areas are often made by enterprises in which
there is multinational participation, including significant United
States private participation, the Corporation may make arrangements
with foreign governments (including agencies, instrumentalities, or
political subdivisions thereof) or with multilateral organizations and
institutions for sharing liabilities assumed under investment insurance
for such investments and may in connection therewith issue insurance
to investors not otherwise eligible hereunder, except that liabilities
assumed by the Corportion under the authority of this subsection
shall be consistent with the purposes of this title and that the maximum
share of liabilities so assumed shall not exceed the proportionate par-
ticipation by eligible investors in the total project financing, and that
the maximum share of liabilities so assumed under paragraph (1) (A)
and (B) or paragraph (1) (C) shall not exceed the Corporation's pro-
portional share of such liabilities as specified in paragraph (4) or (5)
of this subsection.
(3) Not more than 10 per centum of the total face amount of invest-
ment insurance which the Corporation is authorized to issue under this
subsection shall be issued to a single investor.
(4) 132 (A) It is the intention of Congress that the Corporation
achieve participation by private insurance companies, multilateral
organizations, or others in liabilities incurred in respect of the risks
referred to in paragraphs (1) (A) and (B) of this subsection under
contracts issued on and after January 1, 1975, of at least 25 per centum,
and, under contracts issued on and after January 1, 1978, of at least
50 per centum. If for good reason it is not possible for the Corpora-
tion to achieve either such percentage of participation, the Corpora-
tion shall report in detail to the Committee on Foreign Relations of
the Senate and the Committee on Foreign Affairs of the House of
Representatives the reasons for its inability to achieve either such
percentage of participation, and the date by which such percentage is
to be achieved.
(B) The Corporation shall not participate as insurer under con-
tracts of insurance issued after December 31, 1979, in respect of the
risks referred to in paragraphs (1) (A) and (B) of this subsection un-
less Congress by law modifies this paragraph.
(5) 132 (A) It is the intention of Congress that the Corporation
achieve participation by private insurance companies, multilateral
organizations, or others in liabilities incurred in respect of the risks
referred to in paragraph (1) (C) of this subsection under contracts
issued on and after January 1, 1976, of at least 121/2 per centum, and
under contracts issued on and after January 1, 1979, of at least 40 per
'S Subsection (a) (2) was amended by Sec. 2(2) (B) of the Overseas Private Investment
Corporation Amendments Act of 1974 (Public Law 93-390). It formerly read as follows:
"(2) Recognizing that major private investments in less developed friendly countries or
areas are often made by enterprises in which there is multinational participation, includ-
in significant United States private participation, the Corporation may make such arrange-
ments with foreign governments (including agencies, instrumentalities, or political sub-
divisions thereof) or with multilateral organizations for sharing liabilities assumed under
investment insurance for such investments and may in connection therewith issue insurance
to investors not otherwise eligible hereunder: Provided, however, That liabilities assumed
by the Corporation under the authority of this subsection shall be consistent with the pur-
poses of this title and that the maximum share of liabilities so assumed shall not exceed
the proportionate participation by eligible investors in the total project financing." *
132 SP. 2(2) (C) of the Overseas Private Investment Corporation Amendments Act of
197-4 (Public Law 93-390) added paragraphs (4), (5), (6), and (7).





41

centum. If for good reason it is not possible for the Corporation to
achieve either such percentage of participation, the Corporation shall
report in detail to the Committee on Foreign Relations of the Senate
and the Committee on Foreign Affairs of the House of Representatives
the reasons for its inability to achieve either such percentage of par-
ticipation and the date by which such percentage is to be achieved.
(B) The Corporation shall not participate as insurer under con-
tracts of insurance issued after December 31, 1980, in respect of the
risks referred to in paragraph (1) (C) of this subsection unless Con-
gress by law modifies this paragraph.
(6) 132 Notwithstanding any of the percentages of particination
under paragraphs (4) (A) and (5) (A) of this subsection, the Corpo-
ration may agree to assume liability as insurer for any contract of
insurance, or share thereof, that a private insurance company, multi-
lateral organization, or any other person has issued in respect of the
risks referred to in paragraph (1) of this subsection, and neither the
execution of any such agreement to assume liability nor its perform-
ance by the Corporation shall be considered as participation by the
Corporation in any such contract for purposes of such percentages of
participation. On and after January 1, 1981, the Corporation shall not
enter into any such agreement to assume liability.
(7)132 On and after December 31, 1979, the Corporation shall not
manage direct insurance issued after such date in respect of risks re-
ferred to in paragraph (1) (A) or (B) of this subsection unless Con-
gress by law modifies this sentence. On and after December 31, 1980,
the Corporation shall not manage direct insurance issued after such
date in respect of risks referred to in paragraph (1) (C) of this sub-
section unless Congress by law modifies this sentence. It shall there-
after act solely as a reinsurer except to the extent necessary to manage
its outstanding insurance and reinsurance contracts and any contracts
of insurance the Corporation assumes pursuant to paragraph (6).
(b) Investment Guaranties.-To issue to eligible investors guar-
anties of loans and other investments made by such investors assuring
against loss due to such risks and upon such terms and conditions as
the Corporation may determine: Provided, however, That such guar-
anties on other than loan investments shall not exceed 75 per centum
of such investment: Provided further, That except for loan invest-
ments for credit unions made by eligible credit unions or credit union
associations, the aggregate amount of investment (exclusive of inter-
est and earnings) so guaranteed with respect to any project shall not
exceed, at the time of issuance of any such guaranty, 75 per centum of
the total investment committed to any such project as determined by
the Corporation, which determination shall be conclusive for purposes
of the Corporation's authority to issue any such guaranty: Provided
further, That not more than 10 per centum of the total face amount
of investment guaranties which the Corporation is authorized to
issue under this subsection shall be issued to a single investor.
(c) Direct Investment.-To make loans in United States dollars
repayable in dollars or loans in foreign currencies (including, without
regard to section 1415 of the Supplemental Appropriation Act, 1953,
such foreign curencies which the Secretary of the Treasury may deter-







mine to be excess to the normal requirements of the United States and
the Director of the Bureau of the Budget may allocate) to firms pri-
vately owned or of mixed private and public ownership upon such
terms and conditions as the Corporation may determine. The Corpora-
tion may not purchase or invest in any stock in any other corporation,
except that it may (1) accept as evidence of indebtedness debt secu-
rities convertible to stock, but such debt securities shall not be con-
verted to stock while held by the Corporation, and (2) acquire stock
through the enforcement of any lien or pledge or otherwise to satisfy
a previously contracted indebtedness which would otherwise be in
default, or as the result of any payment under any contract of insur-
ance or guaranty. The Corporation shall dispose of any stock it may
so acquire as soon as reasonably feasible under the circumstances then
pertaining.
No loans shall be made under this section to finance operations for
mining or other extraction of any deposit of ore, oil, gas, or other
mineral.
(d) Investment Encouragement.-To initiate and support
through financial participation, incentive grant, or otherwise, and on
such terms and conditions as the Corporation may determine, the
identification, assessment, surveying and promotion of private invest-
ment opportunities, utilizing wherever feasible and effective the fa-
cilities of private investors: Provided, however, That the Corporation
shall not finance surveys to ascertain the existence, location, extent
or quality, or to determine the feasibility of undertaking operations
for mining or other extraction, of any deposit of ore, oil, gas, or other
mineral. In carrying out this authority, the Corporation shall co-
ordinate with such investment promotion activities as are carried
out by the Department of Commerce.
(e) Special Activities.-To administer and manage special projects
and programs, including programs of financial and advisory support
which provide private technical, professional, or managerial assist-
ance in the development of human resources, skills, technology,
capital savings and intermediate financial and investment institutions
and cooperatives. The funds for these projects and programs may,
with the Corporation's concurrence, be transferred to it for such pur-
poses under the authority of section 632 (a) or from other sources, pub-
lic or private.
(f) 13 Other Insurance Functions.-(1) To make and carry out
contracts of insurance or reinsurance, or agreements to associate or
share risks, with insurance companies, financial institutions, any other
persons, or groups thereof, and employing the same where appropriate,
as its agent, or acting as their agent, in the issuance and servicing of
insurance, the adjustment of claims, the exercise of subrogation rights,
the ceding and accepting of reinsurance, and in any other matter
incident to an insurance business.
(2) To enter into pooling or other risk-sharing agreements with
other national or multinational insurance or financing agencies or
groups of such agencies.
133 Subsection (f) was added by See. 22) t) of tuh, Overs'as Private Investment Cor-
poration Amendments Act of 1974 (Public Law 93-390).





43

(3) To hold an ownership interest in any association or other entity
established for the purposes of sharing risks under investment
lnsurajice.
(4 To issue, upon such terms and conditions as it may determine,
reinsurance of liabilities assumed by other insurers or groups thereof
in respect of risks referred to in subsection (a) (1).
The authority granted by paragraph (3) may be exercised notwith-
standing the prohibition under subsection (c) against the Corporation
purchasing or investing in any stock in any other corporation. The
amount of reinsurance of liabilities under this title which the Cor-
poration may issue shall not exceed $600,000,000 in any one year, and
the amount of such reinsurance shall not in the aggregate exceed at
any one time an amount equal to the amount authorized for the maxi-
imum contingent liability outstanding at any one time under section
235(a) (1). All reinsurance issued by the Corporation under this sub-
section shall require that the reinsured party retain for his own ac-
count specified portions of liability, whether first loss or otherwise,
and the Corporation shall endeavor to increase such specified portions
to the maximum extent possible.
Sec. 235.134 Issuing Authority, Direct Investment Fund and
Reserves.-(a) (1) The maximum contingent liability outstanding
at any one time pursuant to insurance issued under section 234(a)
shall not exceed $7,500,000,000.
(2) The maximum contingent liability outstanding at any one time
pursuant to guaranties issued under section 234(b) shall not exceed in
the aggregate $750,000,000, of which guaranties of credit union invest-
ment shall not exceed $1,250,000: Provided, That the Corporation
shall not make any commitment to issue any guaranty which would
result in a fractional reserve less than 25 per centum of the maximum
contingent liability then outstanding against guaranties issued or
commitments made pursuant to section 234(b) or similar predecessor
guaranty authority.
(3) The Congress, in considering the budget programs transmitted
by the President for the Corporation, pursuant to section 104 of the
Government Corporation Control Act, as amended, may limit the ob-
ligations and contingent liabilities to be undertaken under section
234 (a) and (b) as well as the use of funds for operating and adminis-
trative expenses.
(4) The authority of section 234(a) (b) shall continue until Decem-
ber 31, 1977.135
(b) There shall be established a revolving fund, known as the Direct
Investment Fund, to be held by the Corporation. Such fund shall con-
sist initially of amounts made available under section 232, shall be
available for the purposes authorized under section 234 c), shall be
charged with realized losses and credited with realized gains and shall
be credited with such additional sums as may be transferred to it under
the provisions of section 236.
14 22 USC 2195. Sec. 235 was added by Sec. 105 of the FAAct of 1969.
5 See. 2(3) (A) of the Overseas Private Investment Corporation Amendments Act of
1974 (Public Law 93-390) substituted "1977" in lieu of "1974".






44

(c) There shall be established in the Treasury of the United States
an insurance and guaranty fund, which shall have separate accounts
to be known as the Insurance Reserve and the Guaranty Reserve,
which reserves shall be available for discharge of liabilities, as pro-
vided in section 235 (d), until such time as all such liabilities have been
discharged or have expired or until all such reserves have been ex-
pended in accordance with the provisions of this section. Such fund
shall be funded by: (1) the funds heretofore available to discharge
liabilities under predecessor guaranty authority (including housing
guaranty authorities), less both the amount made available for hous-
ing guaranty programs pursuant to section 223(b) and the amount
made available to the Corporation pursuant to section 234(e)136; and
(2) such sums as shall be appropriated pursuant to section 235 (f) for
such purposes. The allocation of such funds to each such reserve shall
be determined by the Board after consultation with the Secretary of
the Treasury. Additional amounts may thereafter be transferred to
such reserves pursuant to section 236.
(d) Any payment made to discharge liabilities under investment
insurance or reinsurance issued under section 234 13 or under similar
predecessor guaranty authority shall be paid first out of the Insurance
Reserve, as long as such reserve remains available, and thereafter out
of funds made available pursuant to section 235(f). Any payments
made to discharge liabilities under guaranties issued under section
234(b) or under similar predecessor guaranty authority shall be paid
first out of the Guaranty Reserve as long as such reserve remains
available, and thereafter out of funds made available pursuant to sec-
tion 235 (f).
(e) There is hereby authorized to be transferred to the Corpora-
tion at its call, for the purposes specified in section 236, all-fees and
other revenues collected under predecessor guaranty authority from
December 31, 1968, available as of the date of such transfer.
(f)138 There are authorized to be appropriated to the Corporation, to
remain available until expended, such amounts as may be necessary
from time to time to replenish or increase the insurance and guaranty
fund, to discharge the liabilities under insurance, reinsurance, or guar-
anties issued by the Corporation or issued under predecessor guaranty
authority, or to discharge obligations of the Corporation purchased
by the Secretary of the Treasury pursuant to this subsection. How-
ever, no appropriations shall be made to augment the Insurance Re-
serve until the amount of funds in the Insurance Reserve is less than
$25,000,000. Any appropriations to augment the Insurance Reserve
shall then only be made either pursuant to specific authorization en-
acted after the date of enactment of the Overseas Private Investment
Corporation Amendments Act of 1974, or to satisfy the full faith and
credit provision of section 237(c). In order to discharge liabilities
136 The correct reference is "section 235(e)".
137 See. 2(3)(B) of the Overseas Private Investment Corporation Amendments Act of
1974 (Public Law 93-390) substituted "Insurance or reinsurance issued under section 234"
in lieu of "insurance issued under section 234(a)".
'13 Subsection (f) was amended by Sec. 2(3) (C) of the Overseas Private Investment
Corporation Amendments Act of 1974 (Public Law 93-390). It formerly read as follows:
"(f) There is hereby authorized to be appropriated to the Corporation, to remain available
until expended, such amounts as may be necessary from time to time to replenish or
increase the Insurance and guaranty fund or to discharge the liabilities under insurance
and guaranties issued by the Corporation or issued under predecessor guaranty authority".





45

under investment insurance or reinsurance, the Corporation is author-
ized to issue from time to time for purchase by the Secretary of the
Treasury its notes, debentures, bonds, or other obligations; but the
aggregate amount of such obligations outstanding at any one time
shall not exceed $100,000,000. Any such obligation shall be repaid to
the Treasury within one year after the date of issue of such obliga-
tion. Any such obligation shall bear interest at a rate determined by
the Sectary of the Treasury, taking into consideration the current
average market yield on outstanding marketable obligations of the
United States of comparable maturities during the month preceding
the issuance of any obligation authorized by this subsection. The Sec-
retary of the Treasury shall purchase any obligation of the Corpora-
tion issued under this subsection, and for such purchase he may use an
a public debt transaction the proceeds of the sale of any securities
issued under the Second Liberty Bond Act after the date of enactment
of the Overseas Private Investment Corporation Amendments Act of
1974. The purpose for which securities may be issued under such Bond
Act shall include any such purchase.
See. 236. 39 Income and Revenues.-In order to carry out the
purposes of the Corporation, all revenues and income transferred to
or earned by the Corporation, from whatever source derived, shall be
held by the Corporation and shall be available to carry out its purposes,
including without limitation-
(a) payment of all expenses of the Corporation, including in-
vestment promotion expenses;
(b) transfers and additions to the insurance or guaranty re-
serves, the Direct Investment Fund established pursuant to section
235, and such other funds or reserves as the Corporation may
establish, at such time and in such amounts as the Board may de-
termine; and
(c) payment of dividends, on capital stock, which shall consist
of and be paid from net earnings of the Corporation after pay-
ments, transfers, and additions under subsections (a) and (b)
hereof.
Sec. 237.140 General Provisions Relating to Insurance and
Guaranty Program.-(a) Insurance, guaranties, and reinsurance 141
issued under this title shall cover investment made in connection with
projects in any less developed friendly country or area with the govern-
ment of which the President of the United States has agreed to in-
stitute a program for insurance, guaranties, or reinsurance.142
(b) The Corporation shall determine that suitable arrangements
exist for protecting the interest of the Corporation in connection with
any insurance, guaranty or reinsurance43 issued under this title, in-
cluding arrangements concerning ownership, use, and disposition
of the currency, credits, assets, or investments on account of which pay-
ment under such insurance, guaranty, or reinsurance 143 is to be made,
i" 22 USC 2196. See. 236 was added by Sec. 105 of the FAAct of 1969.
1.. 22 USC 2197. Sec. 237 was added by Sec. 105 of the FAAct of 1969.
11 See. 2(4)) of the Overseas Private Investment Corporation Amendments Act of
1974 (Public Law 93-390) substituted the words ", guaranties, and reinsurance" in lieu
of "and guaranties".
142 See. 2(4) (A)of the Overseas Private Investment Corporation Amendments Act of
1974 (Public Law 93-390) substituted the words, "guaranties, or reinsurance" in lieu of
Sor guaranties".
1' See. 2(4) (B) of the Overseas Private Investment Corporation Amendments Act of
1974 (nbIbl Law 93-390) substituted the words, "guaranty or reinsurance" in lieu of
or guaranty".






46

and right, title, claim, or cause of action existing in connection
therewith.
(c) All guaranties issued prior to July 1, 1956, all guaranties issued
under sections 202(b) and 413(b) of the Mutual Security Act of 1954,
as amended, all guaranties heretofore issued pursuant to prior guaranty
authorities repealed by the Foreign Assistance Act of 1969, and all
insurance, reinsurance,e44 and guaranties issued pursuant to this title
shall constitute obligations, in accordance with the terms of such in-
surance, reinsurance,144 or guaranties, of the United States of America
and the full faith and credit of the United States of America is hereby
pledged for the full payment and performance of such obligations.
(d) 14 Fees shall be charged for insurance, guaranty, and reinsurance
coverage in amounts to be determined by the Corporation. In the event
fees charged for investment insurance, guaranties, or reinsurance are
reduced, fees to be paid under existing contracts for the same type of
insurance, guaranties, or reinsurance and for similar guaranties issued
under predecessor guaranty authority may be reduced.
(e) No insurance, guaranty, or reinsurance 16 of any equity invest-
ment shall extend beyond twenty years from the date of issuance.
(f) No insurance, reinsurance,"47 or guaranty issued under this title
shall exceed the dollar value, as of the date of the investment, of the
investment made in the project with the approval of the Corporation
plus interest, earnings or profits actually accrued on said investment to
the extent provided by such insurance, reinsurance 147 or guaranty. Not-
withstanding the preceding sentence, the Corporation shall limit the
amount of direct insurance and reinsurance issued by it under section
234 so that risk of loss as to at least 10 per centum of the total invest-
ment of the insured and its affiliates in the project is borne by the in-
sured and such affiliates. The preceding sentence shall not apply to the
extent not permitted by State law.148
(g) No payment may be made under any guaranty, insurance or re-
insurance 1~9 issued pursuant to this title for any loss arising out of
fraud or misrepresentation for which the party seeking payment is
responsible.
(h) Insurance, guaranties, or reinsurance 150 of a loan or equity in-
vestment of an eligible investor in a foreign bank, finance company, or
other credit institution shall extend only to such loan or equity invest-
ment and not to any individual loan or equity investment made by
such foreign bank, finance company, or other credit institution.

Sec. 2(4)(C) of the Overseas Private Investment Corporation Amendments Act of
1974 (Public Law 93-390) added the word, "reinsurance".
"5 Slb4section (d) was amended by Sec. 2(4) (D) of the Overseas Private Investment
Corporation Amendments Act of 1974 (Public Law 93-390). It formerly read as follows:
"(d) Fees shall be charged for insurance and guaranty coverage in amounts to be deter-
mined by the Corporation. In the event fees to be charged for investment insurance or
ptinranties are reduced, fees to be paid under existing contracts for the same type of
gu,,ranties or insurance and for similar guaranties issued under predecessor guaranty
authority may he reduced".
1"" Sec. 2(4)(E) of the Overseas Private Investment Corporation Amendments Act of
1974 (Public Law 93-390) substituted the words ", guaranty, or reinsurance" in lieu of
4"or vnarantv'".
117 Sec. 2(4) (F) of the Overseas Private Investment Corporation Amendments Act of
1974 (Public Law 93-390) added the word ", reinsurance".
4" Sec. 2(4)(G) of the Overseas Private Investment Corporation Amendments Act of
1974 (Public Law 93-390) added the last two sentences of subsection (f) beginning with
"Notwithstandina the preceding sentence, * *"
"11 Sec. 2(4) (H) of the Overseas Private Investment Corporation Amendments Act of
1974 (Public Law 93-390) added the words ", insurance, or reinsurance".
:W Sec. 2(4) (I) of the Overseas Private Investment Corporation Amendments Act of
1974 (Public Law 93-390) substituted the words ", guaranties, or reinsurance" in lieu
of "or guaranties",





47

(i) Claims arisingas a result of insurance, reinsurance 15 or guar-
antoperations under this title or under predecessor guaranty au-
thoity may be settled, and disputes arising as a result thereof may
be arbitrated with the consent of the parties, on such terms and condi-
tions as the Corporation may determine. Payment made pursuant to
any such settlement, or as a result of an arbitration award, shall be
finl and conclusive notwithstanding any other provision of law.
(j) Each guaranty contract executed by such officer or officers as may
be designated by the Board shall be conclusively presumed to be issued
in compliance with the requirements of this Act.
(k)152 In making a determination to issue insurance, guaranties, or
reinsurance under this title, the Corporation shall consider the possible
adverse effect of the dollar investment under such insurance, guaranty,
or reinsurance upon the balance of payments of the United States.
Sec. 238.153 Definitions.-As used in this title-
(a) the term "investment" includes any contribution of funds,
commodities, services, patents, processes, or techniques, in the
form of (1) a loan or loans to an approved project, (2) the pur-
chase of a share of ownership in any such project, (3) participa-
tion in royalties, earnings, or profits of any such project, and (4)
the furnishing of commodities or services pursuant to a lease or
other contract;
(b) the term "expropriation" includes, but is not limited to, any
abrogation, repudiation, or impairment by a foreign government
of its own contract with an investor with respect to a project,
where such abrogation, repudiation, or impairment is not caused
by the investor's own fault or misconduct, and materially ad-
versely affects the continued operation of the project;
(c) the term "eligible investor" means: (1) United States
citizens; (2) corporations, partnerships, or other associations in-
.luding nonprofit associations, created under the laws of the
United States or any State or territory thereof and substantially
beneficially owned by United States citizens; and (3) foreign
corporations, partnerships, or other associations wholly owned
by one or more such United States citizens, corporations, partner-
ships, or other associations: Provided however, That the eligibility
of such foreign corporation shall be determined without regard
to any shares, in aggregate less than 5 per centum of the total
issued and subscribed share capital,'54 held by other than the
United States owners: Provided further, That in the case of any
loan investment a final determination of eligibility may be made
*at the time the insurance or guaranty is issued; in all other cases,
the investor must be eligible at the time a claim arises as well as
the time the insurance or guaranty is issued; and
SSee. 2(4) (J) of the Overseas Private Investment Corporation Amendments Act of
1974 (Public Law 93-390) added the word ", reinsurance".
'15 Subsection (k) was amended by Sec. 2 (4) (K) of the Overseas Private Investment
Corporation Amendments Act of 1974 (Public Law 93-390). It formerly read as follows:
k) In making a determination to issue insurance or a guaranty under this title, the
Corporation shall consider the possible adverse effect of the dollar investment under such
insurance or guaranty upon the balance of payments of the United States".
1 22 USC 2198. See. 238 was added by Sec. 105 of the FAAct of 1969.
The ords "required by Law to b", which appeared at this point were struck out
by See. 104 (a) of the FAAct of 1971.

65-998-76-----5





48

(d) the term "predecessor guaranty authority" means prior
guatanty authorities (other than housing guaranty authorities)
repealed by the Foreign Assistance Act of 1969, section 202 (b)
and 413(b) of the Mutual Security Act of 1954, as amended, and
section 111(b) (3) of the Economic Cooperation Act of 1948, as
amended (exclusive of authority relating to informational media
guaranties).
Sec. 239.155 General Provisions and Powers.-(a) The Corpora-
tion shall have its principal office in the District of Columbia and shall
be deemed, for purposes of venue in civil actions, to be resident thereof.
(b) The President shall transfer to the Corporation, at such time as
he may determine, all obligations, assets and related rights and re-
sponsibilities arising out of, or related to, predecessor programs and
authorities similar to those provided for in section 234 (a), (b), and
(d). Until such transfer, the agency heretofore responsible for such
predecessor programs shall continue to administer such assets and
obligations, and such programs and activities authorized under this
title as may be determined by the President.15'
On December 31, 1979, the Corporation shall cease operating the
programs authorized by section 234 (b) through (e) and section 240.
Thereafter, the President is authorized to transfer such programs, and
all obligations, assets, and related rights and responsibilities arising
out of, or related to, such programs to other agencies of the United
States. Upon any such transfer, these programs shall be limited to
countries with per capita income of $450 or less in 1973 dollars.15"
(c) The Corporation shall be subject to the applicable provisions of
the Government Corporation Control Act, except as otherwise pro-
vided in this title.
(d) To carry out the purposes of this title, the Corporation is au-
thorized to adopt and use a corporate seal, which shall be judicially
noticed; to sue and be sued in its corporate name; to adopt, amend,
and repeal bylaws governing the conduct of its business and the per-
formance of the powers and duties granted to or imposed upon it by
law; to acquire, hold or dispose of, upon such terms and conditions as
the Corporation may determine, any property, real, personal, or mixed,
tangible or intangible, or any interest therein; to invest funds derived
from fees and other revenues in obligations of the United States and to
use the proceeds therefrom, including earnings and profits, as it shall
deem appropriate; to indemnify directors, officers, employees and
agents of the Corporation for liabilities and expenses incurred in con-
nection with their Corporation activities; to require bonds of officers,
employees, and agents and pay the premiums therefor; notwithstand-
ing any other provision of law, to represent itself or to contract for
representation in all legal and arbitral proceedings; to purchase, dis-
count, rediscount, sell, and negotiate, with or without its endorsement
or guaranty, and guarantee notes, participation certificates, and other
evidence of indebtedness (provided that the Corporation shall not
5S 22 USC 2199. Sec. 239 was added by See. 105 of the FAAct of 1969.
16 A Presidential Determination of Dec. 30, 1969, provided for AID administration
until transfer to the Overseas Private Investment Corporation.
15T Subsection (d) was mended by See. 2(5) (A) of the Overseas Private Itnestment
Corpration Amendments Act of 1974 (Pulc Law 93-390) by adding the last three
sentences beginning with the words "On December 31, 1979, * *"





49

isue its own securitis, except participation certificates for the purpose
carrying out sect 2(c); to make and carry out such contracts
nd agreem as are necessary and advisable in the conduct of its
busiess; to exercise the piority of the Government of the United
States in collecting debts from bankrupt, insolvent, or decedents'
estates; to determine the character of and the necessity for its obliga-
tions and expenditures, and the manner in which they shall be in-
curred, allowed, and paid, subject to provisions of law specifically
applicable to Government corporations; and to take such actions as
may be necessary or appropriate to carry out the powers herein or
.hereafter specifically confered upon it.
() The Auditor-Genera of the Agency for International Develop-
S(1) shall have the responsibility for planning and directing the
exec n of audits, reviews, investigations, and inspections of all
ph s of the Corporation's operations and activities and (2) shall
t al seurity activities of the Corporation relating to personnel
S e control of classified material. With respect to his responsi-
bilities ndr this subsection, the Auditor-General shall report to the
. The agency primarily responsible for administering part I
Sall b reimbursed by the Corporation for all expenses incurred by
SAudto-Generl n connection with his responsibilities under this

(f) In orde to futher the purposes of the Corporation there shall
be established an Advisory Council to be composed of such representa-
Sof th American business community as may be selected by the
of the Board. The Presient and the Board shall, from time
to ti, cnult with such Council tcocerning the objectives of the
tion. Members of the Council shall receive no compensation
r their services but shall be entitled to reimbursement in accordance
S5703 of title 5 f the United States Code for travel and
othr expe s incurred by them in the performance of their functions

g)* Expt for the provisions of this title, no other provision of
ist w sha be construed to prohibit the operation in
a r nia of the pro authorized by this title, if
th s t determines that the operation of such program in such
ty important to the national interest.
(h) Within six months after the date of enactment of this sub-
tio te Corporation shal develop and implement specific criteria
intended to minimize the potential environmental implications of proj-
ets u ete b invetor broad in accordance with any of the pro-
gram authorizd by this title.
Sec. 240.'* * [Rpealed-1974]
Se. 240A.61 port to the Congress.-(a) After the end of each
r, t Corporation shall bmit to thCo a complete
d ed report of its operations during such fiscal year.
n ( as added by ee. 104 (b) of the FAAct of 1971.
0ti h (1) Wat aded by S e. 2 (5)(B) of the Overseas Priate Threstment Cot-
poration Amendments Act of 1974 (Public Law 93-390).
SSee. 8(b) of the FAAct of 194 tr rck t frmer See. 240 lhich related to agricul-
turl credit and self-help community development projects.
122 UoSC 2200a. See. 240A Was added by Sec. 105 of the FAAct of 19.






50

(b) 102 Not later than January 1, 1976, the Corporation shall submit
to the Congress an analysis of the possibilities of transferring all of its
activities to private insurance companies, multilateral organizations
and institutions, or other entities.
Title V-Development Research
Sec. 241.163 General Authority.-* * [Repealed-1975]
Title VI-Alliance for Progress "
Sec. 251.165 General Authority.-(a) It is the sense of the Congress
that the historic, economic, political and geographic relationships
among the American peoples and Republics are unique and of special
significance and that the Alliance for Progress offers great hope for
the advancement of the welfare of the peoples of the Americas and the
strengthening of the relationships among them. It is further the sense
of Congress that vigorous measures by the countries and areas of Latin
America to mobilize their own resources for economic development
and to adopt reform measures to spread the benefits of economic prog-
ress among the people are essential to the success of the Alliance for
Progress and to continued significant United States assistance there-
under. The President is authorized to furnish assistance on such terms
and conditions as he may determine in order to promote the economic
development of countries and areas in Latin America.
(b) Assistance furnished under this title shall be directed toward
the development of human as well as economic resources. In furnishing
assistance under this title, the President shall take into account (1)
the principles of the Act of Bogota 166 and the Charter of Punta del
Este,167 and in particular the extent to which the recipientfountry or
area is showing a responsiveness to the vital economic, political, and
social concerns of its people and demonstrating a clear determination
to take effective self-help measures; (2) the economic and technical
soundness of the activity to be financed; (3) the consistency of the
activity with, and its relationship to, other development activities
being undertaken or planned, and its contribution to realizable long-
range objectives; 168 (4) the possible effects upon the United States
economy, with special reference to areas of substantial labor surplus,
of the assistance involved; (5) the degree to which the recipient coun-
try is making progress toward respect for the rule of law, freedom of
182 Subsection (b) was amended by Sec. 2(7) of the Overseas Private Investment Cor-
poration Amendments Act of 1974 (Public Law 93-390). It formerly read as follows: "Not
later than March 1, 1974, the Corporation shall submit to the Congress an analysis of
the possibilities of transferring all or part of its activities to private United States
citizens, corporations, or other associations".
163 Sec. 306(1) of Public Law 94-161 (89 Stat. 849) repealed See. 241. It formerly read
as follows: "Sec. 241. General Authority.-(a) The President is authorized to use funds
made available for this part to carry out programs of research into, and evaluation of, the
process of economic development in less developed friendly countries and areas, into the
factors affecting the relative success and costs of development activities, and into the
means, techniques, and such other aspects of development assistance as he may determine
in order to render such assistance of increasing value and benefit. (b) Funds made availa-
ble to carry out this section may be used to conduct research into the problems of
population rrowth."
18 Title VI was added by Sec. 106 of the FAAct of 1962.
18 22 USC 2211.
166 For text, see page 1148.
167 For text, see page 1154.
16 Sec. 105(a) (1) of the FAAct of 1966 struck out the word "and" which appeared at
the end of clause (3), substituted the semicolon for a period at the end of clause (4), and
added clauses (5), (6), (7), and (8).





, 51

expression and of the press, and recognition of the importance of in-
dividual freedom, initiative, and private enterprise; (6) the degree to
which the recipient country is taking steps to improve its climate for
private investment; (7) wethe or not the activity to be financed will
contribute to the achievement of self-sustaining growth; and (8) the
extent to which the activity to be financed will contribute to the eco-
nomic or political integration of Latin America. In making loans
under this title from funds which are required to be used for loans
payable as to principal and interest in United States dollars, the
President shall take into account, in addition to the considerations
named in the preceding sentence, whether financing could be obtained
in whole or in part from other free world sources on reasonable terms
(including private sources within the United States), the capacity of
the recipient country to repay the loan at a reasonable rate of inter-
est,169 and the efforts made by recipient nations to repatriate capital
invested in other countries by their own citizens. The provisions of
sections 201(d), 202(b), 202(c), and 204 shall be applicable to such
loans, and they shall be made only upon a finding of reasonable pros-
pects of repayment.
(c) The authority of section 614(a) may not be used to waive the re-
quirements of this title with respect to funds made available for this
title which are required to be used for loans payable as to principal and
interest in United States dollars, and the authority of section 610 may
be used to transfer such funds only to funds made available for title I
of cha ter 2 of part I.
(d) n order to carry out the policies of this Act and the purpose of
thi title, the President shall, when requested by a friendly country
and when appropriate, assist in fostering measures of agrarian reform,
inluding colonization and redistribution of land, with a view to insur-
ing a wider and more equitable distribution of the ownership of land.
(e) The President shall not allocate, reserve, earmark, commit, or
otherwise set aside, funds aggregating in excess of $100,000 for use in
any country ider this title unless (1) an application for such funds
has been received for use in such country together with sufficient in-
formation and assurances to indicate reasonably that the funds will be
used in an economically 1O and technically sound manner, or (2) the
President determines with respect to each such allocation, reservation,
earmarking, commitment, or set-aside that it is in the national interest
to use such funds pursuant to multilateral plans.
(f) In furnishing assistance under this title,. consistently with and
for the purposes of section 601(b) (4) of this Act, the agency primarily
responsible for administering part 1I1 or any other departments and
agencies designated by the President shall provide such assistance as
may be determined by the President to be necessary from time to time
in order to make effective the efforts of the Commerce Committee for
the Alliance for Progress, established under the Department of
Commerce.
SThe words to this point, beginning with "including private sources" were inserted
by See. 106 (a) (1) of the FAAct of 1963.
0 Se 106 (a) (2) of the FAAct of 1963 substituted "economically" for "economical".
1Se. 106(a) (3) of the FAAct of 1963 substituted the words "agency primarily
onsible for administering part I" for the words "Agency for International Develop-
ment".






52

(g) 1I? In order to carry out the policies of this Act the President
shall, when appropriate, assist in promoting the organ]tation imp
mentation, and growth of the cooperative ovemenin Latin America
as a fundamental measure toward the strengthening of democratic in-
stitutions and practices and economic and social development under
the Alliance for Progress.
(h) '7 Loans may be made under authority of this title. only for
social and economic development projects and programs which are
consistent with the findings and recommendations of the Inter-Ameri-
can Committee for the Alliance for Progress in its annual review of
national development activities. Whenever the President determines
that the purposes of this title would be better served thereby, he may
make available, in addition to any other funds available for such pur-
poses, on such terms and conditions as he determines, not to exceed 15
per centum of the funds made available for this title to the Inter-Amer-
ican Developmernt Bank, or to any of the institutions named in section
205 (other than the Asian Development Bank)~l', for use in Latin
America 175 pursuant to the laws governing United States participation
in the said iank or in such institutions and the governing tatte
thereof and without regard to section 201 or any other requirements
of this or any other Act.
Sec. 252.116 Authorization.--(a) There is authorized to be approm
priated to the President for the purposes of this title, in addition to
other funds available for such purposes, for the fiscal year 1972, $295,-
000,000,178 and for the fiscal year 1973, $295t0000,' which amon ts
are authorized to remain available until expended, and which amqouts,
except for not to exceed $88,500,0 80 for each such fiscal year, shall
be available eonly for loans payable as to principal and ateet in
United States dollars. In order to effectuate the purposes and provi
sions of sections 102, 251, 601, and 602 of this Act, not less than 0 per
centum of the loan funds appropriated pursuant to this ection for any
fiscal year shall be available for loans made to encourage economic de-
velopment through private enterprise.
172 Subsection (g) was added by Sec. 106(a) (4) of the FAAct of 1963.
178 Subsection (h) was added by Sec. 105(a)() 2) of the FAAet of 1966. See. 110 of the
PA Appropriation Act, T195 prohibits the use of funds contaiune in Title I of tt Act
to carry out the provisions of sections 209(d) and 251 (h) of this Act.
"4 The parenthetical phrase was added by See. 106l() (1) of the FAAet of 1967.
175 The words "in Latin America" were adde4 by Sec. 106(a) (2) of the FAAct of 1967.
17 22 USC 2212.
x17 Subsection designation "(a)" was added by See 100(b)( (4) of the FAAct of 1967.
Subsection (a) was amended by Sec. 106 of the FAAct of 1969. It formerly read as fol-
lows: "(a) There is hereby authorized to be appropriated to the Presaient for the e*
poses of this title, in addition to other funds available for such purposes, for the fiscal
year 1969, $420,000,000, which is authorized to remain available until expended and
which, except for not to exceed $90,000,000, shall be available only for loaas payable aIs
to principal and interest in United States dollars. In order to effectuate the purposes
and provisions of sections 102, 251, 601, and 602 of this Act. not less than 50 per centum
of the loan funds appropriated pursuant to this section for the fiscal year ending June 30,
1969, shall be available for loans made to encourage economic development through private
enternrise."
17s PA Appropriation Act, 1972; Alliance for Progress, technical assistance: $80,000,-
000: Provided, That no part of this appropriation shall be used to initiate any project
or activity which has not been justified to the Congress." Alliance for Progress develop-
ment loans: $150,000,000, together with such amounts as are provided for under sec-
tion 203, all such amounts to remain available until expended,"
I' The words "for the fiscal year 1972, $295,000,000, and for the fiscal year 1978,
$295,000,000" were substituted in lieu of "for the fiscal year 970, $428,250,000, and
for the fiscal year 1971, $428,250.000" by See. 105(1) of the FAAct of 1971.
Mo Sec. 105(2) of the FAAet of 1971 substituted "$88,500,000" in lieu of "$90,750,QOO".





53

(b) 1' There are authorized to be appropriated to the President for
othe l yar 197 2 $934,9,000, and for the fiscal year 1975, $934,000,
for grts to the National Association of the Partners of the Alliance,
Inc. ac a wit tfhe prposes of this title.
See. 23 Fisca Proviions.-All receipts in United States
dllar from. lo s made under this title and from loans made for the
beneit.of ountrie and areas of Latin America under title I of chap-
ter 2 of part I of this Act, notwithstanding section 203, shall be avail-
able for use for loans payable as to principal and interest in United
St d in f erane of th purposes of this title.184 All receipts
in foreign currencies from loans made under this title or for nonmili-
tary assistance purposes under the Mutuai Security, Act of 1954, as
amende or any Act repealed thereby, shall be availale, in addition
to other fund available for such purposes, for loans on such terms and
co ions as th President may specify to carry outthe prposes of
subsection (g). of section 251 of this title, and the President may, not-
withstanding the provisibns of this or any other Act, reserve such cur-
rencies in such amounts (not to exced $25,0060,000) as he shall deter-
mine to be necessary t provide for the programs authorized by said
subsection (g). ` Such eceipts and, other funds made available under
tis tle for use for the purposes of this title sl remain available
Title VII-Evaluation e Programs
Sec. 261.18 The President may appoint a committee to review and
vlu the e oic development program under this Act, and to
report tothe President and to the Congress its fidings.
Title VIII-Southeast Asia Multilateral and Regiona Programs*
S 71" General Provisions.-The acceleration of social and
ooo in.southeast Asia islimportant to tsh achievement.of
the Unit Statesforeign olicy obetes. of peace and stability in
tt is sense o ongress t thiob tie wouldeseve
by expanded effort by the countries of. southeast Asia and other in-
terested countries in cooperative programs for social and econormi de-
velopment of the region, employing both multilateral and bilateral
cha~~nnelsof assistance.
Sec.. ~12' Secial Provisions.-In providing assistance to further
the purposes of this title the President shall take intoaccount:
() initiaives) in the field of social an economic development
b sian peopes and institutions;
SSubetion (b) was aded by See. 106(b) (4) of the FAAct of 1967. Tt was amended
by See. 7 ofthe FAAct of 1973 and formerly read as follows: "(b) There is bereby author-
ised to be appropriated to the President for the fiscal year 1969, $350,000 for grants to
carry out programs and activities of the Partners of the Alliance in accordance with the
purpose of this tita"
A Apropriatons Act, 15: "Fonecessary expene to carr out the provisions of
section 100, 37,000,000 of which not more than 50,00 shall be available for the Na-
nal Assiat of the Partners of the Alliance, Inc. * *r'
ass 22 USe 12218.
'8s See appropriation for Alliance for Progress development loans in FA Appropriation-
Act. 1975, page 192, and Sec. 117 of the FA Appropriation Act of 1904, box note page 201.
ss This sentence was added by See. 106 () of the FAAct of 1963.
t was added by S. 107 of, the FAAct of 1963.
18 USC 216. For other reports required to be submitted to Congress, see Reports to
Congress, Index.
STitle VIII was added by 10tof the FAAct of 1966.
Im 22 USC 1 2217.
90 22 USC I 2217a.






54

(2) regional economic cooperation and integration in south-
east Asia;
(3) the extent of participation by other potential donor
countries;
(4) the degree of peacefull cooperation among the countries of
southeast Asia toward the solution of common problems; and
(5) the ability of multilateral institutions or other administer-
ing authorities to cary out projects and programs effectively,
efficiently, and economically.'91
Title IX-Utilization of Democratic Institutions in Development'"
Sec. 281.193 (a) 19 In carrying out programs authorized in this
chapter, emphasis shall be placed on assuring maximum participation
in the task of economic development on the part of the people of the
developing countries, through the encouragement of democratic pri-
vate and local governmental institutions.
(b) 194 In order to carry out the purposes of this title, programs
under this chapter shall-
(1) recognize the differing needs, desires, and capacities of the
people of the respective developing countries and areas;
(2) use the intellectual resources of such countries and areas
in conjunction with assistance provided under this Act so as to
encourage the development of indigenous institutions that meet
their particular requirements for sustained economic and social
progress; and
(3) support civic education and training in skills required for
effective participation in governmental and political processes
essential to self-government.
(c) 194 In the allocation of funds for research under this chapter,
emphasis shall be given to research designed to examine the political,
social, and related obstacles to development in countries receiving as-
sistance under part I of this Act. In particular, emphasis should be
given to research designed to increase understanding of the ways in
which development assistance can support democratic, social and
political trends in recipient countries.195
(d) 194 Emphasis shall also be given to the evaluation of relevant
past and current programs under part I of this Act and to applying
this experience so as to strengthen their effectiveness in implementing
the objectives of this title.
(e) 196 In order to carry out the purposes of this title, the agency
primarily responsible for administering part I of this Act, shall
develop systematic programs of inservice training to familiarize its
personnel with the objectives of this title and to increase their knowl-
ma See. 273 was struck out by Sec. 107 of the FAAct of 1967. It read as follows:
"SEc. 273. AUTHORIZATION.-The President is authorized to utilize not to exceed
$10,000,000 of the funds otherwise available to carry out the provisions of part I of this
Act (other than title VI of this chapter) to furnish assistance under this title on such
terms and conditions as he may determine, in order to promote social and economic devel-
opment and stability in southeast Asia."
92 Title IX was added by Sec. 106 of the FAAct of 1966.
8 22 USC 2218.
1 Subsection designation "(a)" and subsections (b), (c) and (d) were added by Sec. 108
of the FAAct of 1967.
SThe last sentence was added by See. 106 (a) of the FAAt of 1968.
Subsection (e) was added by See. 106 (b) of the FAAct of 1988.





55

edge of the political and social aspects of development. In addition to
other funds available for such purposes, not to exceed 1 per centum
of the funds authorized to be appropriated for grant assistance under
this chapter may be used for carrying out the objectives of this sub-
section.
Title X-Programs Relating to Population Growth l
Sec. 291.198 General Provisions.-(a) It is the sense of the Con-
gress that, while every nation is and should be free to determine its
own policies and procedures with respect to problems of population
growth and family planning within its own boundaries, nevertheless,
voluntary family planning programs to provide individual couples
with the knowledge and medical facilities to plan their family size
in accordance with their own moral convictions and the latest medical
information, can make a substantial contribution to improve health,
family stability, greater individual opportunity, economic develop-
ment, a sufficiency of food, and a higher standard of living.
(b) To carry out the intent of Congress as expressed in subsection
(a), the President is authorized to provide assistance for programs
relating to population growth in friendly countries and areas, on such
terms and conditions as he shall determine, to foreign governments,
the United Nations, its specialized agencies, and other international
organizations and programs, United States and foreign nonprofit or-
ganizations, universities, hospitals, accredited health institutions, and
voluntary health or other qualified organizations.
(c) In carrying out programs authorized in this title, the
President shall establish reasonable procedures to insure, when-
ever family-planning assistance from the United States is involved,
that no individual will be coerced to practice methods of family
planning inconsistent with his or her moral, philosophical, or re-
ligious beliefs.
(d) As used in this title, the term "programs relating to population
growth" includes but is not limited to demographic studies, medical,
psychological, and sociological research and voluntary family plan-
ning programs, including personnel training, the construction and
staffing of clinics and rural health centers, specialized training of
doctors and paramedical personnel, the manufacture of medical sup-
plies, and the dissemination of family-planning information, and
provision of medical assistance and supplies.
Sec. 292.199 Authorization.-Of the funds provided to carry out
the provisions of part I of this Act for the fiscal year 1974, $125,-
000,000 and for the fiscal year 1975, $150,000,000 200 shall be available
in each such fiscal year only to carry out the purposes of this title,
and, notwithstanding any other provisions of this Act, funds used
for such purposes may be used on a loan or grant basis.
r. Title X was added by See. 109 of the FAAct of 1967.
1 22 USC 1 2219.
19 22 USC 2219a. Sec. 106 of the FAAct of 1971 amended this section, which formerly
read as follows: "SEc. 292. AUTHORIZATION.--Of the funds provided to carry out the pro-
visions of part I of this Act for the fiscal year 1970, $75,000,000, and for the fiscal year
1971, $100,000,000 shall be available only to carry out the purposes of this title and,
notwithstanding any other provision of this Act, funds used for such purposes may be used
on a loan or grant basis."
FA Appropriations Act, 1972: $125,000,000.
91 Sec. 4(2) of the FAAct of 1974 substituted "$150,000,000" in lieu of "$130,000,000".







Title XI-Food Production Targets and Reports a'
Sec. 295.202 Food Production Targets and Reports.-In making
his recommendation to the Congress for program s fot the fiscal year
1969 and each fiscal year thereafter, wherever appropriate, the Presi-
dent shall, for each country reeiving assistance under tis Act which
he finds has a substantial food deficit, include-
(1) descriptions 'of proposed programs, if any, in the areas
of food production, storage, and distribution, and voluntary
family planning;
(2) information on achievement targets in food production,
storage, and distribution, and their relationship to expected
changes in total population; and
(3) a detailed report on progress with respect to food produc-
tion, storage, and distribution, and the relationship of this pro-
gress to population.
Title XII-Famine Prevention and Freedom From Hunger4
Sec. 296.203 General Provisions.--(a) The Congress declares that,
in order to prevent famine and establish freedom from hunger, the
United States should strengthen the capacities of the United States
land-grant and other eligible universities in program-related agri-
cultural institutional development and research, consistent with sec-
tions 103 and 103A, should improve their partiipation in the United
States Government's international efforts to apply more effective agri-
cultural sciences to the goal of increasing world food production, and
in general should provide increased and longer term support to the
application of science to solving food and nutrition problems of the
developing countries.
The Congress so declares because it finds--
(1) th thtthe establishment, endowment, and continuing support
of land-grant universities in the United States by Federal, State,
and county governments has led to agricultural progress in this
country;
(2) that land-grant and other universities in the United
States have demonstrated over many years their ability to coop-
erate with foreign agricultural instittions in expanding indig-
enous food production for both domestic and international
markets;
(3) that, in a world of growing population with rising expec-
tations, increased food production and improved distribution,
storage, and marketing in the developing countries is necessary
not only to prevent hunger but to build the 'economic base for
growth, and moreover, that the greatest potential for increasing
world food supplies is in the developing countries where the
gap between food need and food supply is the greatest and cur-
rent yields are lowest;
a Title XI was added by See. 109 of the FAAet of 1967.
m 22 USC I 2220.
2 22 USC 2220a. Sec. 312 of Public Law 94-161 (89 Stat. 849) added Title XII and
new See. 296.





57

(4) tat inc sing and more secure the supply of food
is of greatest benefit to the poorest majority in the developing
world;
(5) that research, teaching, and ext on activities, and appro-
riate institutional dvet therefor are prime factors in
ncreasing agricultural production abroad (as well as in the
United States) and in improving food distribution, storage, and
marketing;
(6) moreover, that agricultural research abroad has in the
past and will continue in the future to provide benefits for agri-
culture in the United States and that increasing the availability
of food of higher nutritional quality is of benefit to all; and
(7) that universities need a dependable source of Federal
funding, as well as other financing, in order to expand, or in some
cases to continue, their efforts to assist in increasing agricultural
production in developing countries.
(b) Accordingly, the Congress declares that, in order to prevent
famie and establsh freedom from hunger, various components must
be brought together in order to increase world food production,
(1) strengthening the capabilities of universities to assist in
increasing agrcultural production in developing countries;
(2) institution-building programs for development of na-
tional and regional agricultural research and extension capacities
in developing countries which need assistance;
(3) international agricultural research centers;
4) contract reserch; and
5) research program grants.
(c) The United States should-
(1) efectively involve the United States land-grant and other
eligibl universities more extensively in each component;
(2) ovid mechanisms for the universities to participate
and advise in the planning, development, implementation, and
administration of each component; and
(3) assist such universities in cooperative joint efforts with-
Sagricultural instituions in developing nations, and
B)regional and international agricultural research
irected to str thening their joint and respective capabilities
and to engage them more effectively in research, teaching, and
on activities for solving problems in food production, dis-
tribution, storage, marketing, and consumption in agriculturally
underdeveloped nations.
(d) As used in this title, the term "universities" means those col-
leges or universities in each State, territory, or possession of the United
State or the District of Columbia, now receiving, or which may
hereafter receiv, benefit under the Act of July 8, 1862 (known as
the First Morrill Act), or the Act of August 30, 1890 (known as
th Second Morrill Act), which are commonly known as "land-grant"
univ ties; institutions now designated or which may hereafter be
designated as sea-grant colleges under the Act of October 15, 1966
(known as the Natioal Sea Grant Colle and Program Act), which






58

are commonly known as sea-grant colleges; and other United States
colleges and universities which-
(1) have demonstrable capacity in teaching, research, and ex-
tension activities in the agricultural sciences; and
(2) can contribute effectively to the attainment of the objective
of this title.
(e) As used in this title, the term "Administrator" means the
Administrator of the Agency for International Development.
(f) As used in this title, the term "agriculture" shall be considered
to include aquaculture and fisheries.
(g) As used in this title, the term "farmers" shall be considered to
include fishermen and other persons employed in cultivating and har-
vesting food resources from salt and fresh waters.
Sec. 297.204 General Authority.-(a) To carry out the purposes of
this title, the President is authorized to provide assistance on such
terms and conditions as he shall determine-
(1) to strengthen the capabilities of universities in teaching,
research, and extension work to enable them to implement current
programs authorized by paragraphs (2), (3), (4), and (5) of this
subsection, and those proposed in the report required by section
300 of this title;
(2) to build and strengthen the institutional capacity and hu-
man resources skills of agriculturally developing countries so that
these countries may participate more fully in the international
agricultural problem-solving effort and to introduce and adapt
new solutions to local circumstances;
(3) to provide program support for long-term collaborative
university research on food production, distribution, storage, mar-
keting, and consumption;
(4) to involve universities more fully in the international net-
work of agricultural science, including the international research
centers, the activities of international organizations such as the
United Nations Development Program and the Food and Agri-
culture Organization, and the institutions of agriculturally de-
veloping nations; and
(5) to provide program support for international agricultural
research centers, to provide support for research projects identi-
fied for specific problem-solving needs, and to develop and
strengthen national research systems in the developing countries.
(b) Programs under this title shall be carried out so as to--
(1) utilize and strengthen the capabilities of universities in-
(A) developing capacity in the cooperating nation for class-
room teaching in agriculture, plant and animal sciences, hu-
man nutrition, and vocational and domestic arts and other
relevant fields appropriate to local needs;
(B) agricultural research to be conducted in the cooperat-
ing nations, at international agricultural research centers, or
in the United States;
(C) the planning, initiation, and development of extension
services through which information concerning agriculture
S22 USC 2220b. See. 312 of Public Law 94-161 (89 Stat. 849) added Sec. 29t.





59

and related subjects will be made available directly to farmers
and farm families in the agriculturally developing nations by
means of education and demonstration; or
S (D) the exchange of educators, scientists, and students for
the purpose of assisting in successful development in the co-
operating nations;
(2) take into account the value to the United States agriculture
of such programs, integrating to the extent practicable the pro-
grams and financing authorized under this title with those sup-
ported by other Federal or State resources so as to maximize the
contribution to the development of agriculture in the United States.
and in agriculturally developing nations; and
(3) whenever practicable, build on existing programs and insti-
tutions including those of the universities and the United States:
Department of Agriculture and the United States Department of
Commerce.
(c) To the maximum extent practicable, activities under this section
shall (1) be designed to achieve the most effective interrelationship
among the teaching of agricultural sciences, research, and extension
work, (2) focus primarily on the needs of agricultural producers, (3)
be adapted to local circumstances, and (4) be carried out within the
developing countries.
(d) The President shall exercise his authority under this section
through the Administrator.
Sec. 298.205 Board for International Food and Agricultural De-
velopment.-(a) To assist in the administration of the programs
authorized by this title, the President shall establish a permanent
Board for International Food and Agricultural Development (here-
after in this title referred to as the "Board") consisting of seven mem-
bers, not less than four to be selected from the universities. Terms of
members shall be set by the President at the time of appointment.
Members of the Board shall be entitled to such reimbursement for
expenses incurred in the performance of their duties (including per
diem in lieu of subsistence while away from their homes or regular
place of business) as the President deems appropriate.
(b) The Board's general areas of responsibility shall include, but
not be limited to-
(1) participating in the planning, development, and imple-
mentation of,
(2) initiating recommendations for, and
(3) monitoring of,
the activities described in section 297 of this title.
(c) The Board's duties shall include, but not necessarily be limited
to-
(1) participating in the formulation of basic policy, proce-
dures, and criteria for project proposal review, selection, and
monitoring;
(2) developing and keeping current a roster of universities-
(A) interested in exploring their potential for collabora-
tive relationships with agricultural institutions, and with'
scientists working on significant programs designed to in-
crease food production in developing countries,
22 USC 2220c. See. 312 of Public Law 94-161 (89 Stat. 849) adtedd See. 298.





00

(B) having capacity in the agricultural sciences
(C) able to maintain an appropriate balance of teaching,
research, and extension functions,
(D) having capacity, experience, and commitment with
respect to international agricultural efforts, and
(E) able to contribute to solving the problems addressed
by this title;
(3) recommending which developing nations could benefit from
programs carried out under this title, and identifying those na-
tions which have an interest in establishing or develqping agri-
cultural institutions which engage in teaching, research, or exten-
sion activities;
(4) reviewing and evaluating memorandums of understanding
or other documents that detail the terms and conditions between
the Administrator and universities participating in programs
under this title;
(5) reviewing and evaluating agreements and activities author-
ized by this title and undertaken by universities to assure com-
pliance with the purposes of this title;
(6) recommending to the Administrator the apportionment of
funds under section 297 of this title; and
(7) assessing the impact of programs carried out under this
title in solving agricultural problems in the developing nations.
(d) The President may authorize the Board to create such subordi-
nate units as may be necessary for the performance of its duties, includ-
ing but not limited to the following:
(1) a Joint Research Committee to participate in the adminis-
tration and development of the collaborative activities described
in section 297 (a) (3) of this title; and
(2) a Joint Committee on Country Programs which shall assist
in the implementation of the bilateral activities described in sec-
tions 297(a) (2), 297(a) (4), and 297(a) (5).
(e) In addition to any other functions assigned to and agreed to by
the Board, the Board shall be consulted in the preparation of the
annual report required by section 300 of this title and on other agricul-
tural development activities related to programs under this title.
Sec. 299.206 Authorization.-(a) The President is authorized to
use any of the funds hereafter made available under section 103 of this
Act to carry out the purposes of this title. Funds made available for
such purposes may be used without regard to the provisions of sec-
tions 110(b), 211(a), and 211(d) of this Act.
(b) Foreign currencies owned by the United States and determined
by the Secretary of the Treasury to be excess to the needs of the
United States shall be used to the maximum extent possible in lieu of
dollars in carrying out the provisions of this title.
(c) Assistance authorized under this title shall be in addition to any
allotments or grants that may be made under other authorizations.
(d) Universities may accept and expend funds from other sources,
public and private, in order to carry out the purposes of this title. All
such funds, both prospective and inhand, shall be periodically dis-
8 22 USC 22204. Sec. 312 of Publi LawI 94-161 (89 Stat 849) added See. 299.







closed to th eAdministrator as he shall by regtlation require, but no
less often than in an annual report.
Sec. 30a.0 Annual Report,-The President shall transmit to the
Congres, no late than April 1 of each year, a report detailin the
activie carred out pursuant to this title during the preceding fisal
year and contining a projection of programs and activities to be
con cted during the subsequent five fiscal years. Each report shal
contain a nmary of the activities of the Board established pursu
to e on 298 of this title and may include the separate views of the
Board with respect to any aspect of the programs conducted or pro-
pod to be conducted under this title.

Chapter -International Organizations and Programs

Sec. 30.2 General Authority.-(a) When he determines it to be
in the national interest, the President is authorized to make volun-
tary contributions on a grant basis to international organizations and
to pro ams administered by such organizations, and in the case of
the Indus Basin Development Fund administered by the Interna-
tional Bank for Reconstruction and Development to make grants
and loans payable as to principal and interest in United States dol-
lar and subject to the provisions of section 201 (d),209 on such terms
and conditions as he may determine, in order to further the purposes
of this part.
(b) Contributions to the United Nations Development Program 210
for the calendar years succeeding 1961 may not exceed forty per
centum of the total amount contributed for such purpose (including
assessed and audited local costs) for each such year. The President
shall seek to assure that no contribution to the United Nations Develop-
ent Program authorized by this Act shall be used for projects for
economic or technical assistance to the Government of Cuba, so long
as Cuba is governed by the Castro regime.210
(o) -t No ontributions by the United States shall be made to the
United Nations Relief and Works Agency for Palestine Refugees in
the Near East except on the condition that the United Nations Relief
and W rks Agency take all possible measures to assure that no part
of the ted ates contribution shall be used to furnish assistance to
any refuge wo is receiving military training as a member of the so-
called Palestie Liberation rmy or any other guerrilla type organiza-
tion or who has engaged in any act of terrorism.

S22 USC 2220he Sec. 312 of Public Law 94-161 (89 Stat. 849) added Sec. 300.
A 22 USC 22,1.
ST'e wors t this point, beginning with ", and in the ease of the Indus", were added
by See. 107(a) of the FAAct of 1906.
SSec. 10 ) the FAAct of 1966 substituted "United Nation Development Pro-
gra" in lie "United Nations Expanded Program of Technical Assistance and the
-United Nations Special Fund", ad also added tbhelast senten e.
e Subsection (c) was amended by Sec. 108(a) of the FAAct of 1969. It formerly read
as f s "(e) In deterin e whetherorr not to continue furnishing assistance for
gees te Near ast through ib t the United Nations elef
and rks Agency or Palestine Refugees n the ear Est, the President shll take
into, accoVat (1) whether. Iraet and the Arab host goveraments are taking steps toward
the resettleipent and re'ptriation of such refugees, an(1 (2) the extent and success of
effortsbthe Ageny and he Arab host goveirnments to rectify te Palestine refugee
relief olls. ontrb by the United States fo the scal year 1967 shall not ed
$13,300,000. N contributipns unde ths subsection shall be made except on the condt-
tithat Unte Nations Relef ad Wk Aeeytake all possible measures to-
assure that no part of the United States contribution shall be used to furnish, assist-
ance to any refugee who is rece vl military, tratning a a membe.r of te so-called
Palestine Liberation Army."





62

(d) 212 In any case in which a fund established solely by United
States conitributions under this or any other Act is administered by an
international organization under the terms of an agreement between
the United States and such international organization, such agreement
shall provide that the Comptroller General of the United States shall
conduct such audits as are necessary to assure that such fund is ad-
ministered in accordance with such agreement. The President shall
undertake to modify any existing agreement entered into before the
date of enactment of this subsection to conform to the requirements of
the preceding sentence,
(e) 213 (1) In the case of the United Nations and its affiliated orga-
nizations, including the International Atomic Energy Agency, the
President shall, acting through the United States representative to
such organizations, propose and actively seek the establishment by the
governing authorities of such organizations a single professionally
qualified group of appropriate size for the purpose of providing an
independent and continuous program of selective examinations, re-
view, and evaluation of the programs and activities of such organiza-
tions. Such proposal shall provide that such group shall be established
in accordance with such terms of reference as such governing authority
may prescribe and that the reports of such group on each examination,
review, and evaluation shall be submitted directly to such governing
authority for transmittal to the representative of each individual mem-
ber nation. Such proposal shall further include a statement of auditing
and reporting standards, as prepared by the Comptroller General of
the United States, for the consideration of the governing authority
of the international organization concerned to assist in formulating
terms of reference for such review and evaluation group.
(2) In the case of the International Bank for Reconstruction and
Development and the Asian Development Bank, the President shall,
acting through the United States representative to such organizations,
propose and actively seek the establishment by the governing authori-
ties of such organizations professionally qualified groups of ap-
propriate size for the purpose of providing an independent and con-
tinuous program of selective examination, review, and evaluation of
the programs and activities of such organizations. Such proposal shall
provide that such groups shall be established in accordance with such
terms of reference as such governing authorities may prescribe, and
that the reports of such groups on each examination, review, and
evaluation shall be submitted directly to such governing authority for
transmittal to the representative of each individual member nation.
Such proposal shall further include a statement of auditing and re-
porting standards, as prepared by the Comptroller General of the
United States, for the consideration of the governing authority of the
international organization concerned to assist in formulating terms of
reference for such review and evaluation groups.
(3) Reports received by the United States representatives to these
international organizations under this subsection and related informa-
tion on actions taken as a result of recommendations made therein shall
be submitted promptly to the President for transmittal to the Congress
and to the Comptroller General. The Comptroller General shall peri-
odically review such reports and related information and shall report
212 Subsection (d) was added by Sec. 110 (a) of the PAAct of 1967.
213 Subsection (e) was added by See. 9(1) of the FAAct of 1973.





% 63-

imultaneously to the Congress and to the President any suggestions
the Comptroller General may deem appropriate concerning auditing
and reporting standards followed by such groups, the recommenda-
tions ade and actions taken as a result of such recommendations.21-
(f)215 The Preident is hereby authorized to permit United States
participation in the International Fertilizer Development Center and
s authorized to use any of the funds made available under this part
for the purpose of furnishing assistance to the Center on such terms
and conditions as he may determine.
Sec. 30.216 Authorization.-(a) (1)217 There is authorized to be ap-
propriated to the President for grants to carry out the purposes of this
chapter, in addition to funds available under any other Acts for such
purposes, for the fiscal year 1974, $127,822,000 and for the fiscal year
1975, $165,000,000,21 and for the fiscal year 1976, $194,500,000 and for-
the fiscal year 1977, $219,900,000. Of such amounts, not to exceed
$250,00 during the fiscal year 1976 shall be available for contribution
to the Namibia Institute.219
(2) 22 The Congress reaffirms its support for the work of the Inter-
American Commission on Human Rights. To permit such Commission
to better fulfill its function of insuring observance and respect for
human rig ts within this hemisphere, not less than $357,000 of the-
amount appropriated for fiscal year 1976 and $358,000 of the amount
appropriated for fiscal year 1977, for contributions to the Organiza-
tion of American States, shall be used only for budgetary support for
the Inter-American Commission on Human Rights.
(b) (1)221 There is authorized to be appropriated to the President
for loans for Indus Basin Development to carry out the purposes of
this section, in addition to funds available under this or any other Act
for such purposes, for use beginning in the fiscal year 1969,.
$61,220,000.222 Such amounts are authorized to remain available until
expended.
S()221 There is authorized to be appropriated to the President for
grants for Indus Basin Development, in addition to any other funds
14 For other reports required to be submitted to Congress, see Reports to Congress, Index.
m Subsection (f) was added by Sec. 313 (c) of Public Law 94-161 (89 Stat. 849).
1 22 USC 2222. Sec. 107(d) of the FAAct of 1966 amended See. 302, which formerly
read as follows:
"S'c. 302. AUTITORIZATION.-There is hereby authorized to be appropriated to the Presi-
dent for use, in addition to funds available under any other Act for such purposes, for the
fiscal year 1966 to carry out the purposes of this chapter not to exceed $144,755.000. None
of the funds available to carry out this chapter shall be contributed to any international
organization or to any foreign government or agency thereof to pay the costs of develop-
ing or operating any volunteer program of such organization, government, or agency relat-
ing to the selection, training, and programing of volunteer manpower.
1 Paragraph "(1)" designation was added by Sec. 313(a) (1)(B) of Public Law
94-161 (89 Stat. 849).
m Sec. 9(2) of the FAAct of 1974 substituted the words "for the fiscal year 1975, $165.-
000000" in lieu of "for the fiscal year 1975, $150,000,000". FA Appropriation Act, 1975 :
"125,000,000, of which not more than $17,000,000 shall be available for the United
Nations Children's Fund: Provided, That none of the funds appropriated or made avail-
able pursuant to this Act shall be used to supplement the funds provided to the United
Nations Development Program in fiscal year 1974".
"Ln The words to this point commencing with ", and the fiscal year 1976, * were
ded by See. 313(a) (1) (A) of Public Law 94-161 (89 Stat. 849).
"Paragraph (2) was added by Sec. 313(a) (1) (C) of Public Law 94-161 (89 Stat. 849).
Subsein de ignation "(1)" and subsection (2) were added by See. 108(c) of the
Sec. 313(a) (2) of Public Law 94-161 (89 Stat. 849) substituted "$61,220,000" in
lieu of "$51,220,000".



65-998--76----6








available for such purposes, for use in the fiscal yeas 1974l,. $14,00,-
00.221 ahd for use in the fiscal year 1975:, $14500,000,22; nd f use
beginning in the fiscal year 1976, $27,QQ0,000224 which amo- sha
remain available until expended. The President shall not exercise
any special authority granted to him nder section 610(a) or 614(a)
,of this Act to transfer any amount appropriated under this paragrph
to, and to consolidate such amount with, any funds made available
under any other provisions of this Act.225
(c) None of the funds available to carry out this chapter shaJl be
,contributed to any international organization or to any foreign govern-
ment or agency thereof to pay the costs of developing or operating any
volunteer program of such organization, government, or agency relat-
ing to the selection, trainig, and programming of volunteer
manpower.
(d)226 Of the funds made available to carry out this chapter for
each of the fiscal years 1976 and 1977, $20,000,000 227 shall be available
in each such fiscal year only for contributions to the United Nations
Children's Fund.228
(e)229 There is authorized to be appropriated $2,000,000 for the
fiscal year 1974 and $2,000,000 for the fiscal year 1975,230 to provide
added contribution to the United Nations Relief and Works Agency
for expansion of technical and vocational training of Arab refugees.
(f)231 There is authorized to be appropriated to the President, in
addition to other amounts available for such purposes, $1,000,0 for
the fiscal year 1972 and $1,000,000 for the fiscal year 1973, in Egyptian
pounds owned by the United States and determined by the President
to be excess to the requirements of departments and agencies of the
United States, for the purpose of providing technical and vocational

SSec. 9(3) of the FAAct of 1973 substituted "for use in the fiscal year 1974. $14,500,-
000 and for use in the fiscal year 1975, $14,500.000," in lieu of "for use in the fiscal year
1972, $15,000,000, and for use in the fiscal year 1973, $15,00,000".
FA Appropriation Act, 1975 : "$9,00,000: Provided, That no other funds appropriated or
made available under this Act shall be used for the purposes of such section during the
current fiscal year".
2 The words to this point commencing with "and for use beginning * *" were added
by Sec. 313(a) (3) of Public Law 94-161 (89 Stat. 849).
SThe last sentence was added by See. 107(b) (2) of the FAAct of 1971.
= Subsection (d). which was added by See. 108(b) of the FAAct of 1968, was amended
by See. 9(4). of the FAAct of 1973. It formerly read as follows :
"(d) There is authorized to be appropriated to the President, for the fiscal year 1969,
$1,000,000 for contributions to the United Nations Children's Fund during the calendar
year 1969. Funds made available under this subsection shall be in addition to funds avail-
able under this or any other Act for such contributions and shall not be taken into account
In computing the aggregate amount of United States contributions to such fund for the
calendar year 1969."
=Sece 313(a)(4) of Public Law 94-161 (89 Stat, 849) substituted "1976 and 1977,
$20,000,000" in lieu of "1974 and 1975, $18,00,000".
28 In opinion B-180517, dated March, 21, 1974, the Comptroller General ruled that the
$15,000,000 earmarked in the FA Appropriation Act, 1974 (Public Law 93-240) is
controlling.
PA Appropriation Act, 1975: "For necessary expenses to carry out the provisions of
section 301. $125,000,000, of which not more than $17,000,000 shall be 4vailable for the
United Nations Children's Fund : Provided, That none of the fund appropriated or made
available pursuant t hisf Act shall be used to supplement the funds provided to the
United Nations Development Program in fiscal year 1974".
Subsection (e) was added by Sec. 108(d) of the FAAct of 199.
~2 Sec. 9(5) of the FAAct of 1973 subtituted "$2,000,000 for the fisal year 1974 and
$2,000,000 for the fiscal year 1975" in ieu of "$1,000,000 for the lfscal 1972 and
$1.0000,00 for the fiscal year 1973".
FA Appropriation Act, 1974; $2,000,000. FA Appropriation Act 1975 included no appro-
priation under this authorization.
23 Subsection (f) was added by See. 107 (d) of the FAAct of 1971.







training and other assistance to Arab refugees. Amounts appropriated
under this subcion are authorized to remain available until
eTg3Of the funds made available to carry out this chapter for fiscal
year 19 ifn dditio to any other such funds to be made available
for ctritio to th International Atomic Energy Agency, not less
than $500,000 shall be made available to such Agency as technical
Sin kind. However, a reasonable amount of funds authorized
under this section shall be made available in fiscal year 1975 to
strenhen international procedures which are designed to prevent the
unauthoried dissemination or use of nuclear materials. The President
shall report to the Congress not later tha July 1, 1975, concerning
actis taken by the United States to strengthen the procedures de-
cribed under the preceding sentence.
(h)"2 Congress directs that no funds should be obligated or ex-
pended directly or indirectly, to support the United Nations Educa-
tional, Scientific, and Cultural Organization until the President certi-
fies to the Congress that such Organization (1) has adopted policies
which are fully consistent with its educational, scientific, and cultural
objectives, and (2) has taken concrete steps to orrect its recent actions
of a primarily political character.
Sec. 303.233 Indus Basin Development.-In the event that funds
made available under this Act (other than part II) are used by or
under the supervision of the International Bank for Reconstruction
and Development in furtherance of the development of the Indus
Basin through the program of cooperation among South Asian and
other countries of the free world, which is designed to promote eco-
nomic growth and political stability in South Asia, such fds may
be used in accordance with requirements, standards, or procedures
established by the Bank concerning completion of plans and cost esti-
mates and determination of feasibility, rather than with requirements
standards, or procedures concerning such matters set forth in this or
other Acts; and such funds may also be used without regard to the
provisions of section 901(b) of the Merchant Marine Act, 1936, as
amended (46 U.S.C. 1241),28 whenever the President determines that
such provisions cannot be fully satisfied without seriously impeding
or venting accomplishment of the purposes of such pog s: Po-
, That compensating allowances are made in the administration
of other programs to the same or other areas to which the require-
mnt of said sectn 901(b) are applicable.
Se. 304.~ United Nations Peaeekeeping.-It is the sense of the
that the cause of international order and peace can be en-
hanced by the establishment, within the United Nations Organization,
Si ved arrangemnts for stndby forces being maintained by
United Nations mebers for United Nations peacekeeping purposes
in nce with the United Nations Charter. The President is
therefore requested to explore through the United States Bepresenta-
ions (g) and (h) were added by Sec. 9(a) (2) of the FAAet of 1974.
m For text, see page 222.
S22 USC 2224. See. 304 was added by See. 110(c) of the FAAet of 1967.






66

tive to the United Nations, and in cooperation with the other members
of the United Nations and the United Nations Secretariat, both the
means and the prospects of establishing such peacekeeping arrange-
ments. The President shall submit to the Congress, not later than
March 31, 1968, a report upon the outcome of his initiatives, together
with such recommendations as he may deem appropriate.236
Sec. 305.237 Integration of Women.-The President is requested to
instruct each representative of the United States to each international
organization of which the United States is a member (including but
not limited to the International Bank for Reconstruction and Develop-
ment, the Asian Development Bank, the Inter-American Develop-
ment Bank, the International Monetary Fund, the United Nations,
and the Organization for Economic Cooperation and Development)
to carry out their duties with respect to such organizations in such a
manner as to encourage and promote the integration of women into the
national economies of member and recipient countries and into pro-
fessional and policy-making positions within such organizations,
thereby improving the status of women.

Chapter 4-Supporting Assistance 238 [Repealed-1972]
[See Chapter 4 of Part II, page 82.]

Chapter 5-Disaster Relief 239
Sec. 451.240 Contingency Fund.-(a) There is authorized to be
appropriated to the President for the fiscal year 1975 not to exceed
$5,000,000,240 to provide assistance authorized by this part or by sec-
tion 639 for any emergency purpose only in accordance with the pro-
visions applicable to the furnishing of such assistance.
(b) The President shall submit quarterly reports to the Committee
on Foreign Relations and the Committee on Appropriations of the
Senate and the Speaker of the House of Representatives on the pro-
graming and obligation of funds under this section.241
(c) No part of this fund shall be used to pay for any gifts to any
officials of any foreign government made heretofore or hereafter.242

28. For other reports required to be submitted to Congress, see Reports to Congress,
Index.
27 22 USC 2225. Sec. 305 was added by Sec. 54 of the FAAct of 1974, which inserted
it at the end of Part III, chapter 3. Sec. 313(b) of Public Law 94-161 reinserted it at
the end of Part I, chapter 3.
a7 202(b) of the FAAct of 1971 repealed Chapter 4 of part I.
239 Sec. 2(1) of the Foreign Disaster Assistance Act of 1974 (Public Law 93-333,
approved July 8, 1974) substituted the words "Disaster Relief" in lieu of "Contingency
Fund" in the chapter heading.
240 22 USC 2261. Sec. 451 was amended by Sec. 28(c) of the FAAct of 1974. It formerly
read as follows: "SEC. 451. CONTINGENCY FUND-(a) There is authorized to be appro-
priated to the President for each of the fiscal years 1974 and 1975 not to exceed $30,000,000,
to provide assistance authorized by this part primarily for disaster relief purposes, in
accordance with the provisions applicable to the furnishing of such assistance. (b) The
President shall provide quarterly reports to the Committee on Foreign Relations and the
Committee on Appropriations of the Senate and the Speaker of the House of Representa-
tives on the programing and the obligation of funds under subsection (a)."
FA Appropriation Act, 1975: $1,800,000.
21 For other reports required to be submitted to Congress, see Reports to Congress.
Index.
242 Sec. 452. which was'added by See. 2(2) of the Foreign Disaster Assistance Act of 1974
(Public Law 93-333) and formerly appeared at this point, was redesignated as Sec. 494 by
Sec. 101(4) of Public Law 94-161 (89 Stat. 849).





67

Chapter 6-Assistance to Countries Having Agrarian Economies
Sec. 461. Assistance to Countries Having Agrarian Economies.-
(a) 24 Wherever the President determines that the economy of any
country is in major part an agrarian economy, emphasis shall be placed
on programs which reach the people in such country who are engaged
in agrarian pursuits or who live i the villages or rural areas in such
country, including programs which will assist them in the establish-
ment of indigenous cottage industries, in the improvement of agri-
cultural methods and techniques, and which will encourage the devel-
opment of local programs of self-help and mutual cooperation. In such
country emphasis shall be placed also upon programs of community
development which will promote stable and responsible governmental
institutions at the local level.244
(b) 245 In presenting proposals to the Congress for fiscal year 1969
the President shall include recommendations for improving and es-
tablishing agricultural research and training facilities in tropical and
subtropical regions of Latin America, Africa, and Asia. These recom-
mendations shall be developed after consultation with the Department
of Agriculture, land-grant colleges of agriculture, and other appro-
priate institutions and organizations, including those in the regions
concerned.

Chapter 7-Joint Commissions on Rural Development 24
Sec. 471L24 Joint Commissions on Rural Development.-(a) The
President is authorized to conclude agreements with less developed
countries providing for the establishment in such countries of Joint
Commissions on Rural Development each of which shall be composed
of one or more citizens of the United States appointed by the Presi-
dent and one or more citizens of the country in which the Commission
is established. A majority of the members of each such Commission
shall be citizens of the country in which it is established. Each such
agreement shall provide for the selection of the members who are
citizens of the country in which the Commission is established who
wherever feasible shall be selected in such manner and for such terms
of office as will insure to the maximum extent possible their tenure and
continuity in office.
(b) A commission established pursuant to an agreement authorized
by this section shall be authorized to formulate and carry out programs
for development of rural areas in the country in which it is established,
which may include such research, training and other activities as may
be necessary or appropriate for such development.
(c) Not to exceed 10 per centum of the funds made available pur-
suant to section 212 shall be available to the President in negotiating
and carrying out agreements entered into under this section, including
the financing of appropriate activities of Commissions established pur-
suant to such agreements.
4 22 USC 2271.
I This last sentence was added by Sec. 110 of the FAAct of 1962.
S Subsection designation "(a)" and subsection (b) were added by See. 113 of the FAAct
of 1967.
Chapter 7 was added by Sec. 110 of the FAAct of 1966.
U7 22 USC 2281.








(d) The furnishing of assistance under this section shall not be
construed as an express or implied assumption by the United States
of any responsibility for making further contributions for such
purpose.
(e) Nothing in this chapter shall be construed to restrict the au-
thority contained in any other chapters of this Act.

Chapter 8--International Narcotics Control 248

Sec. 481.249 International Narcotics Control.-(a)250 It is the sense
of the Congress that effective international cooperation is neces-
sary to put an end to the illicit production, smuggling, trafficking in,
and abuse of dangerous drugs. In order to promote such cooperation,
the President is authorized to conclude agreements with other coun-
tries to facilitate control of the production, processing, transportation,
and distribution of narcotic analgesics, including opium and its deriv-
atives, other narcotic drugs and psychotropics, and other controlled
substances as defined in the Comprehensive Drug Abuse Prevention
and Control Act of 1970. Notwithstanding any other provision of law,
the President is authorized to furnish assistance to any country or in-
ternational organization, on such terms and conditions as he may
determine, for the control of the production of, processing of, smug-
gling of, and traffic in, narcotic and psychotropic drugs. The President
shall suspend economic and military assistance furnished under this or
any other Act, and shall suspend sales under the Foreign Military
Sales Act 251 and under title I of the Agricultural Trade Development
and Assistance Act of 1954,252 with respect to any country when the
President determines that the government of such country has failed to
take adequate steps to prevent narcotic drugs and other controlled
substances (as defined by the Comprehensive rug Abuse Prevention

2< Chapter 8 was added by See. 109 of the FAAct of 1971.
24 22 USC 2291. Sec. 481 was added by Sec. 109 of the FAAct of 1971. See. 503 of the
Foreign Relations Authorization Act of 19 2 amended Sec. 481 and added See. 482. Sec. 481
formerly read as follows:
"It is the sense of the Congress that effective international cooperation is necessary to
put an end to the illicit production, trafficking in, and abuse of dangerous drugs. In order
to promote such cooperation, the President is authorized to conclude agreements with other
countries to facilitate control of the production, processing, transportation, and distribu-
tion of narcotic analgesics, including opium and its derivatives, other narcotic drugs and
psychotropics and other controlled substances as defined in the Comprehensive Drug Abuse
Prevention and Control Act of 1970 (Public Law 91-513). Notwithstanding any other
provision of law, the President is authorized to furnish assistance to any country or inter-
national organization, on such terms and conditions as he may determine, for the control of
the production of, processing of, and traffic in, narcotic and psychotropic drugs. In furnish-
ing such assistance the President may use any of the funds made available to carry out
the provisions of this Act. The President shall suspend economic and military assistance
furnished under this or any other Act, and shall suspend sales under the Foreign Military
Sales Act and under title I of the Agriculture Trade Development and Assistance Act
of 1954 with respect to any country when the President determines that the government
of such country has failed to take adequate steps to prevent narcotic drugs and other con-
trolled substances (as defined by the Comprehensive Drug Abuse Prevention and Control
Act of 1970) produced or processed, in whole or in part, in such country, or transported
through such country, from being sold illegally within the jurisdiction of such country to
United States Government personnel or their dependents, or from entering the United
States unlawfully. Such suspension shall continue until the President determines that the
government of such country has taken adequate steps to carry out the purposes of this
chapter."
Under the FAAct of 1971. funds to implement Sec. 481 were available from any funds
made available to carry out this Act.
2~ Subsection designation "(a)" and subsection (b) were added by sec. 11(a) of the
FAAct of 1973.
25 For text, see page 253.
V For text. see pige 284.







and Control Act of 1970)25 prod d o processed, in whole or in
part, in such country, or transported through such country, from being
sold illegall within the jurisdiction of such country to United States
Spernnel or their dependents, or from entering the
United Staes unlawfully. Such suspension shall continue until the-
Preidt determines that the goer nt of such country has taken
e tes to carry out he purposes of this chapter.
(b)25(1) Not later than forty-ive day after the date on which each
calendar quarter of each year ends, the President shall transmit to the
S ke f the House of Repre tives, and to the Committee on
oreign Relations of the Senate, a report on the programming and
ion, on a cendar quarter basis, of funds under this chapter
prior to such date."4
(2) Not later than forty-five days after the date on which the second
alenar quarter of each year ends and not later than forty-five days
after the date on which the fourth calendar quarter of each year ends,
President shall tranmit to the Speaker of the House of Repre-
sntitives, and to the Committee on Foreign Relations of the Senate, a
-coplee d detailed semiannual report on the activities and opera-
tions carried out under this chapter prior to such date.2 Such semi-
anual report shall include, ut all not be limited to-
(A) th statu of each agreement concluded prior to such date-
with ther ountris to carry out the purposes of this chapter;

(B) the aggregate of obligations and expenditures made, and
the types and quantity of equipment provided, on calendar quar-
ter basis, prior to such date-
(i) o rr out this chapter wih respect
to e contry and each international organzation receiv-
ng ssiance under this chater including the cost of United
Sttes pronnel en d in carrying out such purposes in
each, such country and with each su international
organization;
(ti) to carry out each program conducted under this chap-
ter in each country and by each internatioal organization,
including the cost of Umtted States personnel engaged in
carrying out h such pgram; nd
(iii) for administrativesuppot servi within the United
tats to carry out the purposes of this chapter, including
cost f Unie -Sas personl engaged in carrying out such
purposes in the United States.
Sec. 482.255 Authorization.-To carry out the purposes of section
481, there ar authorized to be aprpriated to the President $42,500,-
000for each of the iscal years 1974 and 1975. Amounts appropriated'
underths section are authorized to remain available until expended.25.
84 Stt 1236.
F tber reports red to be submitted to Congress. se Reports to Congress. Index.
22 2291a. Sc. 482 was added by 'See. 503 of the Foreign Relations Authoriza-
tion Act of 1972.
11 b)fte of 1973 ;truck Out the words "$42,500,000 or the fiscal
Yer 197, Whieb Aount 's authorized to remain avaflabl until exlnded," 'and inserted
0000 for eah of the fis~l years 1974 and 1975. Amunits appro-
riated under this section are authorized to remain available until expended."
S A pton 175 $17500,000.






70

.Chapter 9-International Disaster Assistance257
Sec. 491.258 259 Policy and General Authority.-(a) The Congress,
recognizing that prompt United States assistance to alleviate human
suffering caused by natural and manmade disasters is an important
expression of the humanitarian concern and tradition of the people of
the United States, affirms the willingness of the United States to pro-
vide assistance for the relief and rehabilitation of people and countries
affected by such disasters.
(b) Subject to the limitation on appropriations in section 492, and
notwithstanding any other provision of this or any other Act, the
President is authorized to furnish assistance to any foreign country
or international organization on such terms and conditions as he may
,determine, for international disaster relief and rehabilitation, includ-
ing assistance relating to disaster preparedness, and to the prediction
of, and contingency planning for, natural disasters abroad.
(c) In carrying out the provisions of this section the President shall
insure that the assistance provided by the United States shall, to the
greatest extent possible, reach those most in need of relief and rehabili-
tation as a result of natural and manmade disasters.
Sec. 492.260 Authorization.-There is authorized to be appropriated
to the President to carry out section 491, $25,000,000 for each of the
fiscal years 1976 and 1977. Amounts appropriated under this section
are authorized to remain available until expended. The President.shall
submit quarterly reports to the Committee on Foreign Relations of
the Senate and to the Speaker of the House of Representatives on the
programing and obligation of funds under this section.
Sec. 493.261 Disaster Assistance-Coordination.-The President is
authorized to appoint a Special Coordinator for International Dis-
aster Assistance whose responsibility shall be to promote maximum
effectiveness and coordination in responses to foreign disasters by
United States agencies and between the United States and other
donors. Included among the Special Coordinator's responsibilities
shall be the formulation and updating of contingency plans for pro-
viding disaster relief.
Sec. 494.262 Disaster Relief Assistance.-There are authorized to
be appropriated, in addition to other sums available for such purposes,
$65,000,000 for use by the President for disaster relief and emer-
gency recovery needs in Pakistan, and Nicaragua, under such terms
and conditions as he may determine, such sums to remain available
until expended.
5 See. 101 (1) of Public Law 94-161 (89 Stat. 849) substituted chapter heading "Inter-
national Disaster Assistance" in lieu of "Refuge Relief Assistance".
F Former Sec. 491, which was added by Sec. 109 of the FAAct of 1971, was repealed
by Sec. 101(2) of Public Law 94-161( 89 Stat. 849). It formerly read as follows: "Sec.
491. Refugee Relief Assistance.-There is authorized to be appropriated to the President
for the fiscal year 1972. in addition to funds otherwise available for such purposes, not to
exceed $250,000,000, to remain available until expended, for use by the President hirprovid-
ing assistance for the relief and rehabilitation of refugees from East Pakistan and for
humanitarian relief in East Pakistan. Such assistance shall be distributed, to the maximum
extent practicable, under the auspices of and by International institutions and relief
agpncies or United States voluntary agencies."
2 22 USC 2292. Sec. 491 was added by Sec. 101(3) of Public Law 94-161 (89 Stat. 849).
0o 22 TTSC 2292a. Sec. 492 was added by See. 101(3) of Pubic Law 94-161 (89 Stat. 849).
26 22 USC 2292b. Sec. 493 was added by Sec. 101(3) of Public Law 94-161 (89 Stat.
849).
2B 22 USC 2292c. Former See. 452, which was added by See. 2(2) of the Foreign Disaster
Assistnce Act of 1974 (Public Law 93-333), was redesignated as Sec. 494 by Sec. 101(4)
of Public Law 94-161 (89 Stat. 849).





71

See. 494A. Famine and Disaster Relief to. Drought-Stricken
African Nations.2-4(a) The Congress affirms the response of the
United States Governent in providing famine and disaster relief and
related assistance in connection with the drought in the 265 nations of
Africa. The President shall report to Congress as soon as possible on
solutions to this problem of famine and further propose how any of
these solutions may be carried out by multilateral organizations.268
S(b) Notwithstanding any prohibitions or restrictions contained in
this or any other Act, there is authorized to be appropriated to the
President, in addition to funds otherwise available for such purposes,
$110,000,000 267 to remain available until expended, for use by the
President, under such terms and conditions as he may determine, for
emergency and recovery needs, including drought, famine, and disaster
relief, and rehabilitation and related assistance, for the drought-
stricken 268 nations of Africa. Of the amount authorized to be appro-
priated under this subsection, not more than $10,000,000 shall be
available for Ethiopia.26 .
Sec. 494B.270 (a)271 African 272 Development Program.-The
Congress reaffirms its support of 273 the initiative of the United States
Government in undertaking consultations and planning with the coun-
tries concerned, with other nations providing assistance, with the
United Nations, and with other concerned international and regional
organizations, toward the development and support of a comprehen-
sive long-term African Sahel development program.
(b)274 The President is authorized to develop a long-term compre-
hensive development program for the Sahel and other drought-
stricken nations in Africa.
(c)27 In developing this long-term program, the President shall-
(1) consider international coordination for the planning and
implementation of such program;
(2) seek greater participation and support by African coun-
tries and. organizations in determining development priorities;
and
(3) begin such planning immediately.
(d) 24 There is authorized to be appropriated to the President, to
S22 USC 2292d. Former See. 639A, which was added by Sec. 20 of the FAAct of 1973,
was redesignated as See. 494A by See. 101(5) of Public Law 94-161 (89 Stat. 849).
m See. 3(1) of the Foreign Disaster Assistance Act of 1974 (Public Law 93-333, 88 Stat.
290, approved July 8, 1974) substituted the words "Drought-stricken African Nations" in
lieu of "the African Sahel" in the section caption.
SSee. 3(2) of the Foreign Disaster Assistance Act of 1974 (Public Law 93-333) struck
the word "Sahellan" which appeared at this point.
2For other reports required to be submitted to Congress, see Reports to Congress,
Index.
SSec. 3(3) of the Foreign Disaster Assistance Act of 1974 (Public Law 93-333)
Substituted '$110.000.000" in lien of $25.000.000".
m See. 3(4) of the Foreign Disaster Assistance Act of 1974 (Public Law 93-333) struck
the word "Sahellan" which appeared at this point.
See. 3(5) of the Foreign Disaster Assistance Act of 1974 (Public Law 93-333) added
this sentemee.
S22 USC 2292e. Former See. 639B, which was added by See. 20 of the FAAct of 1973,
was redesignated as See. 494B by Sec. 101(5) of Publie Law 94-161 (89 Stat. 849).
SSec. 101(7) (B) of Public Law 94-161 (89 Stat. 849) added paragraph designation
"(a).
Sec. 101(7) (A) of Public Law 94-161 (89 Stat. 849) struck the word "Sahel"
which appeared at this point.
3 Sec. 101(7) (C) of Public Law 94-161 (89 Stat. 849) substituted the words "reaffirms
its support of" in lieu of "supports".
*4 See. 101(7) (D) of Public Law 94-161 (89 Stat. 849) added subsections (b), (c),
and (d),





72

carry out the purposes of this section, in additio to funds, ohe se
available for such purposes, $5,000,000 for the fiscal tyear I90 whi
amountw is authorized to rema available until ex pended. The Presi-
dent shall submit to the Foreign Relations and Appropriations Com-
mittees of the Senate and the International elations d Appro-
priations Committees, of the House of Representatives not later th
April 30, 1976, a comprehensive proposal for carrying out the.provi-
sions of this section which shall include budget materials relating to
programs for the fiscal year 1977.
See. 495,"75 Cyprus Relief aun Rehabilitatiov.-The President is
authorized to furnish assistance, on such teras and c~ditio as he
may determine, for the relief and rehabilitation of refugees and other
needy people in Cyprus. There is4 authorized to. be appropriated for
the purposes of this. section,, in addition to amounts, otherwise avail-
able for such purposes,. $30,00,000. Such amount is authorized, to
remain available until expended. Assistance under this section shall be
provided in accordance with the policy and general authority con-
tained in section 491.

Chapter 10-Assistance to Portugal and Portuguese Clonies in
Africa Gaining Independence27
Sec. 496,277 (a) 2 Assistance to Portugal and Portuguese Colo-
-nies in Africa Gaining Independence.-There are authorized, to be
.appropriated to the President for the fiscal year 1975, in addition to
funds otherwise available for such purposes,. not to exceed-
(1) $7,750,000 to make grants; and 279
(2) $17,25Q,000 to make loans; 280
to. remain available until expeaded, for use by the President provid-
ing economic assistance, on such terms and conditions, as he ay deter-
mine, for Portugal and the countries and colonies in Africa which
were, prior to April 25,,1974, colonies of Portugal
(b)281 Notwithstanding the provisions of section 620(r) of this Act,
the United States is authorized to forgive the liabiity incurred by the
Government of the Cape Verde Islands for the, repayment of a
$3.000,000 loan on June 30, 1975.
(c) 28 The President is authorized to use up to. $30,000,000 of the
funds made available under this part for the fiscal year 1976, in
addition to funds otherwise available for such purposes, to provide
development, assistance. in accordance with chapter 1 or relief and
rehabilitation assistance in accordance with chapter 9. (inclwding
:assistance through international or private voluntary organizations)
to countries and colonies in Africa which were, prior to April 25, 174,
colonies of Portugal.
275 22 USC 2292f. See. 495 was added by See. 101(8) of Public Law 94-161 (89 Stat 849).
27 Chapter 10 was added by See. 53 of the FAAct of 1:974.
'77 22 USC 2293. Sec. 496 was added by See. 53 of the FAAet of 1974.
FA Appropriation Act, 1975: "$25,000.000. Provided, That of the finds apprpriated
under this paragraph not less than $5,000,000 shall be allocated for the Cape Verde
Islands and not less than $5,000,000 shall be allocated for Mozambique, Guinea-Bissau,
and Angola".
28 Sec. 314(1) of Public Law 94-161 (89 Stat 849) added paragraph designation "(a)".
6, Sec. 314(2) of Public Law 94-161 .(89 Stat. 849) substituted "$7,750,000" in lieu of
"$5.000,00'0".
2Ro Sec. 314,(3) of Public Law 94-161 (89 Stat. 849) substituted "$17,250,000" in lieu
of "$20,000,000".
SSec. 314(4) of Public Law 94-161 (89 Stat. 849) added subsections (b) and (c).

i





73

PART II

Chapter 1-Poliey 2s
S. 501 Statement of Policy.-The Congress of the United
States reaffi the policy of the United States to achieve international
eace secrity through the United Nations so that armed force
shall not be used except for individual or collective sefl-defense. The
hery finds that the efforts of the United States and other
friendly countrito promote peace ad security continue to require
measues of support bad upon the principle of effective self-help and
mutual aid. It is the purpose of this part to authorize measures in the
ommon defense against internal and external ageion, including
the furni of military assistance, upon request, to friendly coun-
tries d international orgizaions. In furnishing such military
assit the policy of the United States to continue to
Smaximum efforts to achieve universal cntrol of weapons of mass
tion and universal regulation and reduction of armaments, in,
udi armed forces, under adequate safeguards to protect complying
countries violati and evasion.
The C ress recognizes that th peace of the world and the curty
of th ted States are endan so long as international com
munis and th countries it controls continue by threat of military
ction, by the use of nomi pressure, and b internal ubversion,
or other mans to attempt to bring under their domination peoples
now fr and independent and contue to deny the rights of freedom
Sseto peoples and coutries once free but now sub-
It is the sense of the Congress that an impo nt contribution toward
Swould be made by the establishment under the Organization of
American Stte of a international military force.
Ienacting this legislation, it is therefore the intention of the Con-
to promote the pe of t world and the foreign pocy, e
curiy, and general welfare of the nited States by fostering an
iproved cliate of politial indepndnce and individual liberty,
iproving the ability of friendly countries and international organiz
tions to deter or, if necessary, defeat Communist or Communist-sup-
orte facilitating arrangements for individual and
c ctiv seurity, aisting friendly countries to aintain internal
sery, and creating an environment of security and stabilit in the
developing friendly countries essential to their more rapid social, eco-
nomic, and political p ss. The Congress urges that all other coun-
trie ble to contribute join in a common undertaking to meet the goals
stated i this part.
t i the en of the Cogres that in the administration of this
part priority shall be given to the needs of those countries in danger
of becoming victims of active Communist or Communist-supported
aggression or those countries in which the internal security is threat-
ened by Communist-inspired or Communist-supported internal
subversion.24
S 201(a) of the Act of 1963 struk out the words "SHORT TITLI AN" in the
aoter heading. which formerly read "SHORT TITLE AND POLICY".
s 22 USC 1~2301. Former See. 502 was designated See. 501 by Sec. 201(a) (1) of the
'AAct of 1967. Former See. 501, which related to the short title, was repealed by Sec.
201 (b) of the FAAct of 1963.
a This paragraph was added by See. 201(a) (2) of the FAAct of 1967.




74

Finally, the Congress reaffirms its full support of the progress of the
members of the North Atlantic Treaty Organization toward in-
creased cooperation in political, military, and economic affairs. In
particular, the Congress welcomes the steps which have been taken to
promote multilateral programs of coordinated procurement, research,
development, and production of defense articles and urges that such
programs be expanded to the fullest extent possible to further the
defense of the North Atlantic area.
Sec. 502.285 Utilization of Defense Articles and Services.-
Defense articles and defense services 28 to any country shall be fur-
nished solely for internal security, for legitimate self-defense, to
permit the recipient country to participate in regional or collective
arrangements or measures consistent with the Charter of the United
Nations, or otherwise to permit the recipient country to participate
in collective measures requested by the United Nations for the purpose
of maintaining or restoring international peace and security,287 or
for the purpose of assisting foreign military forces in less developed
friendly countries (or the voluntary efforts of personnel of the Armed
Forces of the United States in such countries) to construct public
works and to engage in other activities helpful to the economic and
social development of such friendly countries. It is the sense of the
Congress that such foreign military forces should not be maintained or
established solely for civic action activities and that such civic action
activities not significantly detract from the capability of the military
forces to perform their military missions and be coordinated with and
form part of the total economic and social development effort.
Sec. 502A.288 Excess Defense Articles.-Excess defense articles
shall be provided whenever possible rather than providing such arti-
cles by the procurement of new items.
Sec. 502B.289 Human Rights.-It is the sense of Congress that,
except in extraordinary circumstances, the President shall substan-
tially reduce or terminate security assistance to any government which
engages in a consistent pattern of gross violations of internationally
recognized human rights, including torture or cruel, inhuman or de-
grading treatment or punishment; prolonged detention without
charges; or other flagrant denials of the right to life, liberty, and the
security of the person.
(b) Whenever proposing or furnishing security assistance to any
government falling within the provisions of paragraph (a), the Presi-
dent shall advise the Congress 290 of the extraordinary circumstances
necessitating the assistance.
(c) In determining whether or not a government falls within the
provisions of subsection (a), consideration shall be given to the extent
of cooperation by such government in permitting an unimpeded in-
vestigation of alleged violations of internationally recognized human
as 22 USC 2302. Former subsection (a). of See. 505 was redesignated See. 502 by See.
201(d) (1) of the FAAct of 1967.
2N The words to this point were substituted for "UTILIZATION OFB ASSISTANCE.-(a)
Military assistance" by Sec. 201(d) (2) of the FAAct of 1967.
SSec. 201(c) (1) of the FAAct of 1965 struck out a colon and added the remainder of
this section from this point.
8 22 USC 2303. Sec. 502A was added by. Sec. 12(a) of the FAAct of 1973.
2" 22 USC 2304. Sec. 502B was added by Sec. 46 of the FAAet of 1974.
sw For other reports required to be submitted to Congress, see Reports to Congress, Index.





75

rights by appropriate international organizations, including the Inter-
national Committee of the Red Cross and anybody acting under the
authority of the United Nations or of the Organization of American
States.
(d) For purposes of this section, 'security assistance' means assist-
ance under chapter 2 (military assistance) or chapter 4 (security sup-
porting assistance) of this part, assistance under part V (Indochina
Postwar Reconstruction) or part VI (Middle East Peace) of this
Act, sales under the Foreign Military Sales Act, or assistance for
public safety under this or any other Act.

Chapter 2--Military Assistance
Sec. 503.291 General Authority.-(a) The President is authorized
to furnish military assistance, on such terms and conditions as he may
determine, to any friendly country or international organization, the
assisting of which the President finds will strengthen the security of
the United States and promote world peace and which is otherwise
eligible to receive such assistance, by-
(1) acquiring from any source and providing (by loan or grant)
any defense article or defense service; or
(2) assigning or detailing members of the Armed Forces of the
United States and other personnel of the Department of Defense
to perform duties of a non-combatant nature.
(b) In addition to such other terms and conditions as the President
may determine pursuant to subsection (a), defense articles may be
loaned thereunder only if-
(1) there is a bona fide reason, other than the shortage of funds,
for providing such articles on a loan basis rather than on a grant
basis;
(2) there is a reasonable expectation that such articles will be
returned to the agency making the loan at the end of the loan
period unless the loan is then renewed;
(3) the loan period is of fixed duration not exceeding five years,
during which such article may be recalled for any reason by the
United States;
(4) the agency making the loan is reimbursed for the loan based
on the amount charged to the appropriation for military assist-
ance under subsection (c) ; and
(5) arrangements are made with the agency making the loan
to be reimbursed in the event such article is lost or destroyed
while on loan, such reimbursement being made first out of any

1 See. 12(b) (1) of the FAAct of 1973 amended See. 503, which formerly read as
follow :
22 USC 2311.
"Seec. 503. General Authorlty.-The President is authorized to furnish military assistance
on such terms and conditions as he may determine, to any friendly country or international
organization, the assisting of which the President finds will strengthen the security of the
United States and promote world peace and which is otherwise eligible to receive such
assistance by-
'(a) acquiring from any source and providing (by loan or grant) any defense article
or defense service.:
"4(b) making financial contributions to multilateral programs for the acquisition or
construction of facilities for collective defense.
"(c) providing financial assistance for expenses incident to particluation by the
.United States Government in regional or collective defense organizations:
"(d) assigning or detailing members of the Armed Forces of the United States and
other personnel of the Department of Defense to perform duties of a noncombatant
nature, including those related to training or advice."




76

funds available to carry out this chapter and based on the de-
preciated value of the article at the time of loss or destruction.
(c) (1) In the case of any loan of a defense article or defense service
made under this section, there shall be a charge to the appropriation
for military assistance for any fiscal year while the article or service
is on loan in an amount based on-
(A) the out-of-pocket expenses authorized to be incurred in
connection with such loan during such fiscal year; and
(B) the depreciation which occurs during such year while such
article is on loan.
(2) The provisions of this subsection shall not apply-
(A) to any particular defense article or defense service which
the United States Government agreed, prior to the date oJf enact-
ment of this subsection, to lend; and
(B) to any defense article or defense service, or portion thereof,
acquired with funds appropriated for military assistance under
this Act.
Sec. 504.292 Authorization.--(a) There is authorized to be appro-
priated to the President to carry out the purposes of this part not to
exceed $600,000,000 for the fiscal year 1975;293 294 Provided, That
funds made available for assistance under this chapter (other than
(1) training in the United States, or (2) for Western Hemisphere
countries, training in the United States or in the Canal Zone)29 shall
not be used to furnish assistance to more than thirty-one countries 29"
in any fiscal year: Provided further, That none of the funds appro-
priated pursuant to this subsection shall be used to furnish sophisti-
cated weapons systems, such as missile systems and jet aircraft for
military purposes, to any underdeveloped country, unless the President
determines that the furnishing of such weapons systems is iritportant
to the national security of the United States and reports within thirty
days each such determination to the Congress.297 2"8 Amounts appro-
priated under this subsection are authorized to remain available until
expended. Amounts appropriated under this subsection shall be
2 22 USC 2312.
293 Sec. 10(1) of the FAAct of 1974 substituted the words "$600,000,000 for the fiscal
year 1975" in lieu of "$512,500,000 for the fiscal year 1974."
FA Appropriation Act, 1975: $475,000,000, "including administrative expenses and
purchase of passenger motor vehicles for replacement only for use outside of the United
States: Probide6d, That none of the funds contained in this paragph shall be available
for the purchase of new automotive Vehicles outside of the United States: Provided further.
That the total number of flag and general officers of the United States Armed Forces as-
signed or detailed to military assistance advisory groups, military missions, or similar
organizations, or performing duties primarily with respect to the Military Assistance Pro-
gra4k and the Foreign Military Sales Progrant shall not exeed twenty after May 1, 1975".
294 With the exception of the change noted in footnote 246, Sec. 201(c) (1) of the FAAct
of 1967 substituted the wbods to this point in lieu of "In addition to such ambunts as may
be otherwise authorized to support Vietnamese forces and other free world forces in Viet-
nam, there is authorized to be appropriated to the President to carry out the 1?rposes of
his part (excluding the support of Vietnasese forcea, and other free world forces in Viet-
nam) not to exceed $875,000,000 for the fiscal year 1967".
SSec. 10(2) of the FAAct of 1974 substituted the words beginning with "(other than
(1) training * *" ending with "* * Canal Zone)" in lieu of "(other than training
in the United States)".
Sec. 12(2)(B) of the FAAet of 1973 substituted "thirty-one countries" in lieu of
"forty countries",
W7 The second provision was added by Sec. 2 q1 (a) (3) of the FAAct of 1968.
M The second and third sentences, which were added by Sec. 201(c)(2) of the FAAct
of 1967, were struck out by Sec. 201(a) (2) of the FAAet of 1968. They read as follows:
"Of the amount appropriated pursuant to this subsoction for the fiscal year 1968,
$24,100,000 shall be available solely for cost-sharing expenses of United States partici-
ption in the International hillitary headquarters and related agencies program. No part
of any funds made available under any other provistons of law shall be used fbr the cost-
sharing expenses referred- to in thl preceding sentene."






ilableor ctexpenses of United States participation in
the military headquarters and related agencies program.29
(b) IR order to mke &sure that a dollar spent on military assistance
to foreign countries is as necessary as a dollar spent fo the United
tts military estabishment the President shall establish procedures
for prr ing and budgeting so that programs of military assistance
coe ito direct competition for financial support with other activities
and programs of the Department of Defense.
S 5 05.O Conditions of Eligibility--(a) In addition to such
other provisions as the President may require, no defense articles shall
rs to any country on a grant basis uless it shall have agreed
(1) it will not, without the consent of the President-
(A) permit any use of such articles by anyone not an of-
ficer, employee, or agent of that country,
(B) transfer, or permit any officer, employee, or agent of
tht contry to transfer such articles by gift, sale, or other-
wise, or
(C) use or permit the use of such articles for purposes
other than those for which furnished;
(2) it wil maintain the ecurity of such articles, and will pro-
vide subantily the same degree of serity protection afforded
to sch rticles by the United Sates Govermnent;
(3) it will, as the President may require, permit continuous
rvation and review by, and furnish necessary information to,
ives of the United States Govement with regard to
the se of such articles; and
(4) unless the President consents to other disposition it will re-
trn to the United States Government for such use or disposition
as the Prident oniders in the best interests of the United
tes, such articles which are no longer needed for the purposes
for which, furnished.
(b) No deense articles shall be frnished on a grant basis to any
ount at a cost in ex of $3,000,00 in any fiscal year unless the
President determines-
(1) that ch country conforms to the urposes and principles
Sthe Charter of the United Nations;
(B) that such defense articles will be utilized by such country
for the maintenance of its own defensive strength, or 30 the de-
sie strength of the free world;
(3) that such country is taking al reasnable measures, con-
stent with its political and economic stability, which may be
n d to delop its defes s; and
4) that the increased ability of such country to defend itself
ii tat t the secrity of the UnitedState
(c) o The President shall regularly reduce and, with such delib-
erate ed s order procedure and other rlevnt cons rations, in-
prior itments, will permit, shall terminate all further

T t s e was by 201 (2) of the PAAct of 69.
22 SO 2314. Former Sec. 50 was redesignated See. 06 by See. 201(e) of the
Se.2 ) of the oAAct of' 971 substftuted "or" In lieu of "and".
"Subections (c) and (d) were added by Sec. 201(a) of the FAAct of 1962.




78

grants of military equipment and supplies to any country having suf-
ficient'wealth to enable it, in the judgment of the President, to main-
tain and equip its own military forces at adequate strength, without
undue burden to its economy.
(d)302 Any country which hereafter uses defense articles or defense
services furnished such country under this Act, the Mutual Security
Act of 1954, as amended, or any predecessor foreign assistance Act, in
substantial violation of the provisions of this chapter or any agree-
ments entered into pursuant to any of such Acts shall be immediately
ineligible for further assistance.
(e) 303 In considering a request for approval of any transfer of any
weapon, weapons system, munitions, aircraft, military boat military
vessel, or other implement of war to another country, the President
shall not give his consent under subsection (a) (1) or (a) (4) to the
transfer unless the United States itself would transfer the defense
article under consideration to that country, and prior to the date he
intends to give his consent to the transfer, the President notifies the
Speaker of the House of Representatives and the Committee on For-
eign Relations of the Senate in writing of each such intended consent,
the justification for giving such consent, the defense article for which
he intends to give his consent to be so transferred, and the foreign
country to which that defense article is to be transferred.30 In addi-
tion, the President shall not give his consent under subsection (a) (1)
or (a) (4) to the transfer of any significant defense articles on the
United States Munitions List unless the foreign country requesting
consent to transfer agrees to demilitarize such defense articles prior to
transfer, or the proposed recipient foreign country provides a -com-
mitment in writing to the United States Government that it will not
transfer such defense articles if not demilitarized, to any other foreign
country or person without first obtaining the consent of the President.
(f)303 Effective July 1, 1974, no defense article shall be furnished
to any country on a grant basis unless such country shall have agreed
that the net proceeds of sale received by such country in disposing of
any weapon, weapons system, munition, aircraft, military boat, mili-
tary vessel, or other implement of war received under this chapter will
be paid to the United States Government and shall be available to pay
all official costs of the United States Government payable in the cur-
rency of that country, including all costs relating to the financing of
international educational and cultural exchange activities in which
that country participates under the programs authorized by the Mutual
Educational and Cultural Exchange Act of 1961.305
Sec. 506.306 Special Authority.-(a) During the fiscal year 1975 307
the President may, if he determines it to be in the security interests 308
of the United States, order defense articles from the stocks of the
Department of Defense and defense services for the purposes of part
33 Former subsection (e), which related to conditions of eligibility, was repealed in 1971.
Snhactions (e) and (f) were added by See. 12(3) of the FAAct of 1973.
2a For other reports rennired to be submitted to Congress, see Reports to Congress, Index.
SFor text, see page 648.
s2 22 TSC 2318. Former Sec. 510 was redesignated See. 506 by See. 201(j)(1) of the
FA A ct of 1967.
7 Sec. 11 (1) of the FAAct of 1974 substituted the words "the fiscal year 1975" in lieu
of "the fiscal year 1974."
S See. 12(4) (B) of the FAAct of 1973 substituted "in the security interests" in lien
of "vital to the security."





7"

II, subject to subsequent reimbursement therefor from subsequent
appropriations available for military assistance. The value of such
amounts equivalent to the value of such orders under subsection (a) of
orders under this subsection in the fiscal year 1975 307 shall not exceed
$150,000 000.309
(b) The Department of Defense is authorized to incur, in applicable
appropriations, obligations in anticipation of reimbursements in
this section. Appropriations to the President of such sums as may be
necessary to reimburse the applicable appropriation, fund, or account
for such orders are hereby authorized.
See. 507.310 Restrictions on Military Aid to Latin America.-
* * [Repealed-1973]
Sec. 508.310 Restrictions on Military Aid to Africa.-* *
[Repealed-1973]
Sec. 509.210 Certification of Recipient's Capability.-* * [Re-
pealed-19731
Sec. 510.311 Restrictions on Training Foreign Military Stu-
dents.-The number of foreign military students to be trained in the
United States in any fiscal year, out of funds appropriated pursuant
to this part, may not exceed a number equal to the number of foreign
civilians brought to the United States under the Mutual Educational
and Cultural Exchange Act of 1961 in the immediately preceding
fiscal year.
Sec. 511.312 Considerations in Furnishing Military Assistance.-
Decisions to furnish military assistance made under this part shall
be made in coordination with the Director of the United States Arms
Control and Disarmament Agency and shall take into account his
opinion as to whether such assistance will-
(1) contribute to an arms race;
(2) increase the possibility of outbreak or escalation of con-
flict; or
(3) prejudice the development of bilateral or multilateral arms
control arrangements.
Sec. 512.313 Military Assistance Advisory Groups and Mis-
sions.- * [Repealed-1973]
Sec. 513.814 Military Assistance Authorizations for Thailand
and Laos, and South Vietnam.315-(a) After June 30, 1972, no mili-
tary assistance shall be furnished by the United States to Thailand
directly or through any other foreign country unless that assistance is
authorized under this Act or the Foreign Military Sales Act.316
(b) 317 After June 30, 1974, no military assistance shall be furnished
by the United States to Laos directly or through any other foreign
country unless that assistance is authorized under this Act or the
Foreign Military Sales Act.316
ao See. 11(2) of the FAAct of 1974 substituted "$150,000,000" in lieu of "$250,000,000".
'O Sec. 12(b) (5) of the FAAct of 1973 repealed Sees. 507, 508, and 509.
a1 22 USC 2321a. See. 510 was added by Sec. 203 of the FAAct of 1969.
-m 22 USC 2321d. See. 511 was added by Sec. 201(f) of the FAAct of 1971. Sec. 150(c)
of Public Law 94-141, Foreign Relations Authorization Act, Fiscal Year 1976, struck out
the words "take into account" and inserted in lieu thereof "be made in coordination with
the Director of the United States Arms Control and Disarmament Agency and shall take
into account his opinion as to".
a Sec. 12(5) of the FAAct of 1973 repealed Sees. 512 and 514.
a 22 USC 2321f. See. 513 was added by Sec. 201 (f) of the FAAct of 1971.
5 See. 12(1) of the FAAct of 1974 substituted the words "Thailand and Laos, and
South Vietnam" in lieu of "Thailand and Laos".
81 For text, see page 253.
m Sec. 12(6) (B) of the FAAct of 1973 added subsection (b).
65-998-76---7





80

(c)318 After June 30, 1976, no military assistance shall be furnished
by the United States to South Vietnam directly or through any other
foreign country unless that assistance is authorized under this Act or
the Foreign Military Sales Act.316
Sec. 514.319 32 Stockpiling of Defense Articles for Foreign
Countries.-(a) Notwithstanding any other provision of law, no
funds, 'other than funds made available under this chapter or section
401(a) of Public Law 89-367 (80 Stat. 37), or any subsequent corre-
sponding legislation, may be obligated for the purpose of stockpiling
any defense article or war reserve material, including the acquisition,
storage, or maintenance of any war reserve equipment, secondary
items, or munitions, if such article or material is set aside, reserved,
or in any way earmarked or intended for future use by any foreign
country under this Act or such section.
(b) The cost of any such article or material set aside, reserved, or
in any way earmarked or intended by the Department of Defense for
future use by, for or on behalf of the country referred to in section
401 (a) (1) of Public Law 89-367 (80 Stat. 37) shall be charged against
the limitation specified in such section or any subsequent correspond-
ing legislation, for the fiscal year in which such article or material is
set aside, reserved, or otherwise earmarked or intended; and the cost
of any such article or material set aside, reserved or in any way ear-
marked or intended for future use by, for, or on behalf of any other
foreign country shall be charged against funds authorized under this
chapter for the fiscal year in which such article or material is set aside,
reserved, or otherwise earmarked. No such article or material may be
made available to or for use by any foreign country unless such article
or material has been charged against the limitation specified in such
section, or any subsequent corresponding legislation, or against funds
authorized under this chapter, as appropriate.
Sec. 515.321 Military Assistance Advisory Groups and Missions.-
Effective July 1, 1976, an amount equal to each sum expended under
any provision of law, other than section 504 of this Act, with respect
to any military assistance advisory group, military mission, or other
organization of the United States performing activities similar to such
group or mission, shall be deducted from the funds made available
under such section 504, and (1) if reimbursement of such amount is
requested by the agency of the United States Government making the
expenditure, reimbursed to that agency, or (2) if no such reimburse-
ment is requested, deposited in the Treasury as miscellaneous receipts.
818 Subsection (c) was added by Sec. 12(2) of the FAAct of 1974.
a31 22 USC 2321h. Sec. 514 was added by Sec. 15 of the FAAct of 1974.
820 Former Sec. 514 entitled "Special Foreign Country Accounts" was repealed by Sec.
12(5) of the FAAct of 1973.
'a 22 USC 2321i. Sec. 515 was added by Sec. 16 of the FAAct of 1974.








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