PUBLIC LAW 87-195 87TH CONGRESS, S. 1983 AN ACT SEPTEMBER 4, 1961

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP68-00140R000100220001-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 41
• Document Creation Date: November 11, 2016
• Document Release Date: May 19, 1999
• Sequence Number: 1
• Content Type: REGULATION

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Public Law 87-195
87th Congress, S. 1983
September 4, 1961
an pct
To promote the foreign policy, security, and general welfare of the United States
by assisting peoples of the world in their efforts toward economic development
and internal and external security, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SEC. 101. SIIOHT TITLE.-This part may be cited as the "Act for Act for Inter-
International Development of 1961". national De-
SEC. 102. STATEMENT Or POLICY.-It is the sense of the Congress velopment of
that peace depends on wider recognition of the dignity and interde- 1961.
pendence of men, and survival of free institutions in the United States
can best be assured in a worldwide atmosphere of freedom.
To this end, the United States has in the past provided assistance to
help strengthen the forces of freedom by aiding peoples of less devel-
oped friendly countries of the world to develop their resources and
improve their living standards, to realize their aspirations for justice,
education, dignity, and respect as individual human beings, and to
establish responsible governments.
The Congress declares it to be a primary necessity, opportunity, and
responsibility of the United States, and consistent with its traditions
and ideals, to renew the spirit which lay behind these past efforts, and
to help make a historic demonstration that economic growth and po-
litical democracy can go hand in hand to the end that an enlarged
community of free, stable, and self-reliant countries can reduce world
tensions and insecurity.
It is the policy of the United States to strengthen friendly foreign
countries by encouraging the development of their free economic
institutions and productive capabilities, and by minimizing or elimi-
nating barriers to the flow of private investment capital. 75 STAT. 424.
In addition, the Congress declares that it is the policy o the United 75 STAT. 425.
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 recog-
nition of the right of all private persons to travel and pursue their
lawful activities without discrimination as to race or religion. In the
administration of all parts of this Act these principles shall be sup-
ported in such a way in our relations with countries friendly to the
United States which are in controversy with each other as to promote
an adjudication of the issues involved by means of international law
procedures available to the parties.
Accordingly, the Congress hereby affirms it to be the policy of the
United States to make assistance available, upon request, under this
part in scope and on a basis of long-range continuity essential to the
creation of an environment in which the energies of the peoples of the
world can be devoted to constructive purposes, free of pressure and
erosion by the adversaries of freedom. It is the sense of the Congress
that assistance under this part should be complemented by the furnish-
ing under any other Act of surplus agricultural commodities and by
disposal of excess property under this and other Acts.
Also, the Congress reaffirms its conviction that the peace of the
world and the security of the United States are endangered so long as
international communism continues to attempt to bring under Com-
munist domination peoples now free and independent and to keep
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under domination peoples once free but now sub ect to such domina-
tion. It is, therefore, the policy of the United States to continue to
make available to other free countries and peoples, upon request, assist-
ance of such nature and in such amounts as the Unted States deems ad-
visable and as may be effectively used by free countries and peoples
to help them maintain their freedom. Assistance shall be based upon
sound plans and programs; be directed toward the social as well as
economic aspects of economic development; b:, responsive to the
efforts of the recipient countries to mobilize their own resources and
help themselves; be cognizant of the external ar.d internal pressures
which hamper their growth; and should emphasize long-range de-
velopment assistance as the primary instrument of such growth.
The Congress reaffirms its belief in the imporsance of regional or-
ganizations of free peoples for mutual assistance, such as the North
Atlantic Treaty Organization, the Organization for Economic Co-
operation and Development, the European Economic Community,
the Organization of American States, the Colombo Plan, the South
East Asia Treaty Organization, the Central Treaty Organization, and
others, and expresses its hope that such organizations may be
strengthened and broadened, and their programs of self-help and
mutual cooperation may be made more effective in the protection of
the independence and security of free people, and in the development
of their economic and social well-being, and the safeguarding of their
basic risehts and liberties.
Finally, the Congress urges that all other countries able to con-
tribute join in a common undertaking to meet; the goals stated in
75 STAT. 425, this part.
75 STAT. 426. A[APTER 2-DEVELOPMENT AssIETANCE
TITLE I-DEVELOPMENT LOAN FDND
SEC. 201. GENERAL AUTI[ORITY.-(a) The President shall estab-
lish a fund to be known as the "Development Loan Fund" to be used
by the President to make loans pursuant to th,, authority contained
Development of
economic re-
sources, etc.
in this title.
(b) The President is authorized to make loans payable as to
principal 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 em-
phasis upon assisting long-range plans and programs designed to
develop economic 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 reasonable terms, (2) the economic and technical soundness of the
activity to be financed, (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 real;zable 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, and (6) the possible effects upon the United States economy, with
special reference to areas of substantial labor surplus, of the loan
involved. Loans shall be made under this title only upon a finding
of reasonable prospects of repayment.
(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.
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(d) Funds made available for this title shall not be loaned or
reloaned at rates of interest excessive or unreasonable for the bor-
rower and in no event higher than the applicable legal rate of interest
of the country in which the loan is made.
SEC. 202. AUTHORIZATION.-(a) There is hereby authorized to be
appropriated to the President for the purposes of this title
$1,200,000,000 for the fiscal year 1962 and $1,500,000,000 for each of
the next four succeeding fiscal years, which sums shall remain avail-
able 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 authorized to be appro-
priated for such subsequent fiscal year.
(b) Whenever the President determines that it is important to the Authority to
advancement of United States interests and necessary in order to enter into
further the purposes of this title, and in recognition of the need for agreements.
reasonable advance assurances in the interest of orderly and effective
execution of long-term plans and programs of development assistance, 75 STAT. 426.
he is authorized to enter into agreements committing, under the terms 75 STAT. 427.
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 Notification
appropriated, the President shall notify the Foreign Relations and to Congress.
Appropriations Committees of the Senate and the Speaker of the
House of Representatives of the provisions ofj such agreement, includ-
ing the amounts of funds involved and undertakings of the parties
thereto.
(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 repay-
able in foreign currencies on the date prior to the abolition of such
Fund shall be available for use for tppurposes of this title..
SEC. 203. FISCAL PROVISIONS.--A11 receipts from loans made under
and in accordance with this title shall be available for use for the
purposes of this title. Such receipts and other funds made available
under this title for use for the purposes of this title shall remain
available until expended.
SEC. 204. DEVELOPMENT LOAN COMMITTEE.-The President shall
establish an interagency Development Loan Committee ,L consisting
of such officers from such agencies of the United States lxovernment
as he may determine, which shall, under the direction of the Presi-
dent, establish standards and criteria for lending operations under
this title in accordance with the foreign and financial policies of the
United States. Except in the case of officers serving in positions to Appointment
which they were appointed by the President by and with the advice of officers
and consent of the Senate, officers assigned to the Committee shall by President.
be so assigned by the President by and with the advice and consent
of the Senate.
SEC. 205. USE OF TIIE FACILITIES OF TIIF. INTERNATIONAL DEVELOP-
MFiNT ASSOCIATION.-If the President determines that it would more
effectively serve the purposes of this title and the policy contained in
section 619 (pertaining to newly independent countries), he may, in
accordance with the provisions of this title, lend not to exceed 10 per
centum of the funds made available for this title to the International
Development Association for use pursuant to the International De-
velopment Association Act (Public Law 86-565, 74 Stat. 293) and the 22 USC 284
articles of agreement of the Association. note.
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TITLE II-DEVELOPMENT GRANTS AND TECHNICAL COOPERATION
Promotion of eco- SEC. 211. GENERAL AUTHORITY.-(a) The President is authorized
nomic development to furnish assistance 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 the de-
velopment 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
75 STAT. 427, romise of contributing to the development of educational or other
75 sTAT. 428. i ions and programs directed toward social progress, (2) the
consistency of the activity with, and its relationship, to, other de-
velopment activities beino, undertaken or planned, and its contribution
to realizable long-range development objectives, (3) the economic and
technical soundness 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 peo ile, and demonstrat-
ing a clear determination 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 surp:.us, of the assistance
involved, and (6) the desirability of safeguarding the international
balance of payments position of the United State i. If the President
finds that assistance proposed to be furnished under this title would
.have it substantially adverse effect upon the United States economy or
a substantial segment thereof, the assistance shall not be furnished.
(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 coopera>ion 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.
SEC. 212. AUTHORIZATION.-There is hereby authorized to be appro-
priated to the President for use beginning in the fiscal year 1962 to
carry out the purposes of section 211 not to exceed $380,000,000, which
shall remain available until expended.
SEC. 213. ATOMS FOR PEACE.-The President is authorized to use,
in addition to other funds available for such purposes, not to exceed
$2,000,000 of the funds available for the purposes of section 211 for
assistance, on such terms and conditions as he may determine, designed
to promote the peaceful uses of atomic energy outside the United
States.
SEC. 214. AMERICAN SCHOOLS AND HOSPITALS ABROAD:-(a) The
President is authorized to use, in addition to other funds available for
such purposes, funds made available for the purposes of section 211
for 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.
Use of foreign (b) The President is authorized to use, notwithstanding the provi-
currencies. scions of the Mutual Defense Assistance Control Act of 19.51 (22 U.S.C.
65 Stat. 644. 1611 et seq.),foreign currencies accruing to the Un:_ted States Govern-
ment under any Act, for purposes of subsection (a) of this section, and
for assistance, on such terms and conditions as he may specify, to
hospitals outside the United States founded or sponsored by United
States citizens and serving as centers for medical treatment, education,
and research.
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SEC. 215. LOANS TO SMALL FARMERS.-It is the policy of the United
States and the purpose of this section to strengthen the economies of Improvement of
less developed friendly countries, and in friendly countries where the agricultural
economy is essentially rural or based on small villages, to provide as- methods.
sistance designed to improve agricultural methods and techniques, to 's STAT. 428.
stimulate and encourage the development of local programs of self-75 sTAT. 429.
help and mutual cooperation, particularly through loans of foreign Foreign cur-
currencies for associations of operators of small farms, formed for the rency loans.
purpose of joint action designed to increase or diversify agricultural
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.
SEC. 216. VOLUNTARY AGENCIES.-(a) In order to further the effi-
cient 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 transporta- Payment of
tion charges from United States ports to ports of entry abroad, or, in transportation
the case of landlocked countries, to points of entry in such countries, charges.
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 that country of local currencies for the purpose
of 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. 221. GENERAL AUTHORITY.-(a) In order to facilitate and in-
crease the participation of private enterprise in furthering the de-
velopment of the economic resources and productive capacities of less
developed friendly countries and areas, the President is authorized to
issue guaranties as provided in subsection (b) of this section of in-
vestments in connection with projects, including expansion, modern-
ization, or development of existing enterprises, in any friendly country
or area with the government of which the President has agreed to
institute the guaranty program. The guaranty program authorized
by this title shall be administered under broad criteria, and each proj-
ect shall be approved by the President.
(b) The President may issue guaranties to United States citizens,
or corporations, partnerships, or other associations created under the
laws of the United States or of any State or territory and substantially
beneficially owned. by United States citizens, as well as any wholly-
owned foreign subsidiary of any such corporation-
(1) assuring protection in whole or in part against any or all
of the fallowing risks :
(A) inability to convert into United States dollars other
currencies, or credits in such currencies, received as earnings
or profits from the approved project, as repayment or return
of the investment therein, in whole or in part, or as compen-
sation for the sale or disposition of all or any part thereof,
(B) loss of investment, in whole or in part, in the ap-
proved project due to expropriation or confiscation by action
of a foreign government, and
(C) loss due to war, revolution, or insurrection:
Private enter-
prise partici-
pation.
Project appro-
val by Presi-
dent.
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P. 87-19
75 STAT. 430.
Provided, That the total face amount of the guaranties issued
under this paragraph (1) outstanding at any one time shall not
exceed $1,000,000,000; and
(2) where the President determines such action to be important
to the furtherance of the purposes of this titla, assuring against
loss of not to exceed 75 per centum of any investment due to such
risks as the President may determine, upon such terms and condi-
tions as the President may determine: Provided, That guaranties
Development of issued under this paragraph (2) shall emphasize economic de-
small business. velopment projects furthering social progress, and the develop-
ment of small independent business enter rises, and no such
guaranty shall exceed $10,000,000: Provided u ether, That no pay-
ment may be made under this paragraph (2) for any loss arising
out of fraud or misconduct for which the investor is responsible:
Provided further, That the total face amount of the guaranties
issued tinder this paragraph (2) outstanding ate any one time shall
not exceed $90,000,000: Provided further, That this authority shall
continue until June, 30, 1964.
(c) No guaranty shall exceed the dollar value, as of the date of the
investment, of the investment made in the project with the approval
of the President plus actual earnings or profits on said investment to
the extent provided by such guaranty nor shall ary guaranty extend
beyond twenty years from the date of issuance.
Protection of (d) The President shall make suitable arrangements for protecting
U. S. interests, the interests of the United States Government in connection with any
guaranty issued under section 221(b), including arrangements with
respect to the ownership, use, and disposition of the currency credits,
assets, or investment on account of which payment under such
guaranty is to be made, and any right, title, claim, or cause of action
existing in connection therewith.
Fees. SEC. 222. GENERAL PROVISIONS.-(a) A fee shall be charged for
Determination by each guaranty in an amount to be determined by the President. In
President. the event the fee to be charged for a type of guaranty authorized
under section 221(b) is reduced, fees to be paid under existing con-
tracts for the same type of guaranty may be similarly reduced.
(b) All fees collected in connection with guaranties issued under
section 221(b), under sections 202(b) and 413(b) (4) of the Mutual
71 Stat. 357; Security Act of 1954, as amended, and under section 111(b) (3) of
68 Stat. 846; the Economic Cooperation Act of 1948, as amended (22 U.S.C.
73 Stat. 248, 351, 1.509 (b) (3)) (exclusive of fees for informational media guaranties
22 USC 1872, 1933. heretofore or hereafter issued pursuant to section 1011 of the United
States Information and Educational Exchan e Act of 1948, as
68 Stat. 861,862. amended (22 U.S.C. 1442) and section 111(b) (3) of the Economic
70 Stat. 563. Cooperation Act of 1948, as amended), shall be available for meet-
ing management and custodial costs incurred with respect to curren-
cies or other assets acquired under guaranties made pursuant to
section 221(b) of this part, sections 202(b) and 413(b) (4) 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
informational media guaranties), and shall be available for expendi-
ture in discharge of liabilities under guaranties made pursuant to
such sections, 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 provi-
sions of this section.
(c) In computing the total face amount of guaranties outstanding
at any one time for purposes of paragraph (1) of section 221(b),
the President shall include the face amounts of outstanding guaran-
ties theretofore issued pursuant to such paragraph, sections 202(b)
and 413(b) (4) of the Mutual Security Act of 1954, as amended, and
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September 4, 1961 -7- Pb, aw 75 8AT. 431,
section 111(b) (3) of the Economic Cooperation Act of 1948, as
amended, but shall exclude informational media guaranties.
(d) Any payments made to discharge liabilities under guaranties use 1872,
issued under section 221(b) of this part, sections 202(b) and 22 1933.
413(b) (4) 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 informational media guaranties), shall be
paid first out of funds specifically reserved for such payment pursu-
ant Infra.
to the proviso to the second sentence of section 222(e), and
thereafter shall be paid out of fees referred to in section 222(b) 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 such guaranties as long as such funds
are available, and finally shall be paid out of funds realized from the 73 stet. 251.
sale of notes issued under section 413(b) (4) (F) of the Mutual 22 USC 1509,
Security Act of 1954, as amended, and section 111(c) (2) of the 1757.
Economic Cooperation Act of 1948, as amended.
(e) All guaranties issued prior to July 1, 1956 (exclusive of infor-
mational media guaranties), all guaranties issued under section 202(b)
of the Mutual Security Act of 1954, as amended, may be considered,
and all other guaranties shall be considered for the purposes of section
3679 (31 U.S.C. 665) and section 3732 (41 U.S.C. 11) of the Revised
Statutes, as amended, as obligations only to the extent of the probable
ultimate net cost to the United States government of all outstanding
guaranties. Funds obligated in connection with guaranties issued
under section 221(b) of this part, sections 202(b) and 413(b) (4) 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
informational media guaranties), shall constitute a single reserve,
together with funds available for obligation hereunder but not yet
obligated, for the payment of claims under all guaranties issued under
such sections : Provided, That funds obligated in connection with
guaranties issued prior to July 1, 1956, and guaranties issued under
section 2'02(b) of the Mutual Security Act of 1954, as amended, shall
not, without the consent of the investor, be available for the payment
of claims arising under any other guaranties. Funds available for
obligation hereunder shall be decreased by the amount of any pay-
ments made to discharge liabilities, or to meet management and cus-
todial costs incurred with respect to assets acquired, under guaranties
issued pursuant to section 221(b) of this part, sections 202(b) and
413(b) (4) 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 informational media guaranties), and shall be increased
by the amount obligated for guaranties as to which all liability of the
United States Government has been terminated, and by the amount of
funds realized from the sale of currencies or other assets acquired in
connection with any payments made to discharge liabilities, and the
amount of fees collected, under guaranties issued pursuant to such
sections (exclusive of informational media guaranties).
SEC. 223. DEFINITIONS.-As used in this title-
(a) the term "investment" includes any contribution of capital
commodities, services, patents, processes, or techniques in the form
of (1) a loan or loans to an approved project, (2) the purchase
of a share of ownership in any such project, (3) participation
in royalties, earnings, or profits of any such project, and (4) the
furnishing of capital commodities and related services pursuant
to a contract providing for payment in whole or in part after
the end of the fiscal year in which the guaranty of such investment
is made; and
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(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, where such abrogation,
repudiation, or impairment is not caused by the investors own
fault or misconduct, and materially adversely affects the continued
operation of the project.
Sxc. 224. HOUSING PROJECTS IN LATIN AMERICAN COUNTRIES.-(a)
It is the sense of the Congress that in order to stimulate private home-
ownership and assist in the development of stable economies, the
authority conferred by this title should be utiL zed for the purpose of
assisting in the development in the American Republics of self-
liquidating pilot housing projects designed to provide experience in
rapidly developing countries by participating with such countries in
guaranteeing private United States capital available for investment
in Latin American countries for the purposes Set forth herein.
(b) In order to carry out the purposes set forth in subsection
(a), the President is authorized to issue guaranties assuring against
the risks of loss specified in paragraph 221(b) (2) of investments
made by United States citizens, or corporations, partnerships, or
other associations created under the law of the United States or
of any State or territory and substantially ieneficially owned by
United States citizens in pilot or demonstration private housing proj-
ects in Latin America of types similar to those insured by the
Federal Housing Administration and suitable for conditions in Latin
America. The total face amount of guaranties issued under this
section outstanding at any one time shall not exceed $10,000 000.
(c) The provisions of section 222 (a), (b), (d), and (e) shall be
applicable to guaranties issued under this section in the same manner
and to the same extent as they apply to guiranties issued under
section 221(b) (2).
TITLE IV-SURVEYS OF INVESTMENT OR'ORTUNITIES
Sic. 231. GENERAL AUTHORITY.-(a) In order to encourage and
promote the undertaking by private enterprise of surveys of invest-
ment opportunities, other than surveys of extraction opportunities, in
less developed friendly countries and areas, the President is au-
thorized to participate in the financing of such surveys undertaken
by any person on such terms and conditions as he may determine:
Provided, That his participation shall not exceed 50 per centum
of the total cost of any such survey. The making of each such
survey shall be approved by the President.
(b) In the event that a person who has undertaken a survey in
Accordance with this title determines, within a period of time to
be determined by the President, not to undertake, directly or indi-
rectly, the investment opportunity surveyed, such person shall turn
over to the President a professionally acceptable technical report with
respect to all matters explored. Such report shall become the prop-
erty of the United States Government, and the United States Gov-
ernment shall be entitled to have access to, and obtain copies of, all
underlying correspondence, memorandums, working papers, docu-
ments, and other materials in connection with 1-.he survey.
SEC. 232. AUTHORIZATION -There is hereby aui:.horized to be appro-
priated to the President for use beginning in the fiscal year 1962
to carry out the purposes of this title not to exceed $5,000,000, which
shall remain available until expended.
SEC. 2.33. DEFINITIONS.--As used in this title--
(a) the term "person" means a citizen of the United States
or any corporation, partnership, or other association substantially
beneficially owned by United States citizens; and
75 5TAT, 432?
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75 STAT. 433.
(b) the term "survey of extraction opportunities" means any
survey directed (i) to ascertaining the existence, location, ex-
tent, or quality of any deposit of ore, oil, gas, or other mineral,
or (ii) to determining the feasibility of undertaking operations
for the mining or other extraction of any such mineral or for
the processing of any such mineral to the stage of commercial
marketability.
SEC. 241. GENERAL AUTHORITY.-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 develop-
ment in less developed friendly countries and areas, into the factors
affecting the relative success and costs of development activii ies, 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.
SEC. 301. GENERAL AUTIIORITY.-(a) When he determines it to be
in the national interest, the President is authorized to make voluntary
contributions on a grant basis to international organizations and to
programs administered by such organizations on such terms and con-
ditions as lie may determine, in order to further the purposes of this
part.
(b) Contributions to the United Nations Expanded Program of
Technical Assistance and the United Nations Special Fund 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.
(c) In determining whether or not to continue furnishing assist-
ance for Palestine refugees in the Near East through contributions to
the United Nations Relief and Works Agency for Palestine Refugees
in the Near East, the President shall take into account. (1) whether
Israel and the Arab host governments are taking steps toward the
resettlement and repatriation of such refugees, and ((9) the extent
and success of efforts by the Agency and the Arab host governments
to rectify the Palestine refugee relief rolls.
SEC. 302. AUTHORIZATION.-There is hereby.authorized to be appro-
priated to the President for use, in addition to funds available under
any other Act for such purposes, for the fiscal year 1962 to carry out
the purposes of this chapter not to exceed $153,500,000.
Si+]c. 303. INDUS BASIN DEVELOPMENT.-If 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 funds may
be used in accordance with requirements, standards, or procedures
established by the Bank concerning completion of plans and cost
estimates and determination of feasibility, rather than with require-
ments, 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), whenever the President determines that
such provisions cannot be fully satisfied without seriously impeding
Voluntary
contributions.
Palestine
refugees.
68 Stat. 832;
70 Stat. 187.
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75 or preventing accomplishment of the purposes of such programs: Pro-
vided, That compensating allowances are made ir.. the administration
of other programs to the same or other areas to wl V.ch the requirements
of said section 901(b) are applicable.
Information to
congressional
committees.
CHAPTER 4-SUPPORTING ASSISTANCE
SEC. 401. GENERAL AuTIIORITY.-The President is authorized to
furnish assistance to friendly countries, organizations, and bodies
eligible to receive assistance under this part on such terms and con-
ditions as he may determine, in order to support cr promote economic
or political stability.
SEC. 402. AUTHORIZATION.--There is hereby authorized to be appro-
priated to the President for use beginning in the fiscal year 1962 to
carry out the purposes of this chapter not to exceed $465,000,000,
which shall remain available until expended.
CHAPTER 5-CONTINGENCY FUND
SEC. 451. CONTINGENCY FUND.-(a) There is hereby authorized to
be appropriated to the President for the fiscal year 1962 not to exceed
$300,000,000 for use by the President for assistance authorized by part
I in accordance with the provisions applicable to the furnishing of such
assistance, when he determines such use to be important to the national
interest.
(b) The President shall keep the Committee o:a Foreign Relations
and the Committee on Appropriations of the Sen ite and the Speaker
of the House of Representatives currently informed of the use of funds
under this section.
CHAPTER 6-ASSISTANCE TO COUNTRIES HAVING AGRARIAN
ECONOMIES
SEC. 461. ASSISTANCE TO COUNTRIES HAVING AGRARIAN ECON-
oMIEs.-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 in the villages or rural areas
in such country, including programs which will assist them in the
establishment of indigenous cottage industries, in the improvement of
agricultural methods and techniques, and which will encourage the
development of local programs of self-help and mutual cooperation.
CHAPTER 1-SIIORT TITLE AND POLICY
International SEC. 501. SHORT TITLE.-This part may be cited as the "Interna-
Peace and Se- tional Peace and Security Act of 1961".
purity Act of SEC. 502. STATEMENT OF POI.icy.-The Congress of the United
1961. States reaffirms the policy of the United States to Eachieve international
peace and security through the United Nations 30 that armed force
shall not be used except for individual or collective self-defense. The
Congress hereby finds that the efforts of the United States and other
friendly countries to promote peace and security continue to require
measures of support based upon the principle of effective self-help and
mutual aid. It is the purpose of this part to authorize measures in the
common defense against internal and external aggression, including
Military the furnishing of military assistance, upon request, to friendly coun-
assistance. tries and international organizations. In furnishing such military
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assistance, it remains the policy of the United States to continue toy s~t~T. 435.
exert maximum efforts to achieve universal control of weapons of mass
destruction and universal regulation and reduction of armaments, in-
cluding armed forces, under adequate safeguards to protect complying
countries against violation and evasion.
The Congress recognizes that the peace of the world and the security
of the United States are endangered so long as international com-
munism and the countries it controls continue by threat of military
action, by the use of economic pressure, and by internal subversion,
or other means to attempt to bring under their domination peoples
now free and independent and continue to deny the rights of freedom
and self-government to peoples and countries once free but now subject
to such domination.
It is the sense of the Congress that an important contribution toward International
peace would be made by the establishment under the Organization of military force.
American States of an international military force.
In enacting this legislation, it is therefore the intention of the Con- Congressional
gress to promote the peace of the world and the foreign policy, security, intent.
and general welfare of the United States by fostering an improved
climate of political independence and individual liberty, improving
the ability of friendly countries and international organizations to
deter or, if necessary, defeat Communist or Communist-supported
aggression, facilitating arrangements for individual and collective
security, assisting friendly countries to maintain internal security, and
crating an environment of security and stability in the developing
friendly countries essential to their more rapid social, economic, and
political progress. The Congress urges that all other countries able
to contribute join in a common undertaking to meet the goals stated in
this part.
Finally, the Congress reaffirms its full support of the progress of the
members of the North Atlantic Treaty Organization toward increased
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, develop-
ment, 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.
CHAPTER 2-MILITARY ASSISTANCE
SEC. 503. GENERAL AUTHORITY.-The President is authorized to fur-
nish 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, lease,
sale, exchange, grant, or any other means) any defense article or
defense service;
(b) making financial contributions to multilateral programs
for the acquisition or construction of facilities in foreign countries
for collective defense;
(c) providing financial assistance for expenses incident to par-
ticipation by the United States Government in regional or
collective defense organizations; and
(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.
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Pu . aw
75 STAT. 436.
SEC. 504. AUTIIORIZATION.-(a) There is hereby authorized to be
appropriated to the President for use beginning in the fiscal years
1962 and 1963 to carry out the purposes of this part, not to exceed
$1,700,000,000 for each such fiscal year, which iums shall remain
available until expended.
Programing (b) In order to make sure that a dollar spent on military assistance
and budget- to foreign countries is as necessary as a dollar spent for the United
ing. States military establishment, the President shall establish procedures
for programing and budgeting so that programs of military assistance
come into direct competition for financial support with other activities
and programs of the Department, of Defense.
SEC. 505. UTILIZATION of ASSISTANOE.-(a) Military assistance to
any country shall be furnished solely for internal security, for legiti-
mate 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.
(b) To the extent feasible and consistent with the other purposes of
this part, the use of military forces in less developed friendly countries
in the construction of public works and other activities helpful to
economic development shall be encouraged.
SEC. 506. CONDITIONS OF ELIGIBILITY.-(a) In addition to such other
provisions as the President may require, no defe:cise articles shall be
furnished to any country on a grant basis unless it shall have agreed
that-
(1) it will not, without the consent of the President-
(A) permit any use of such articles by anyone not an
officer, employee, or agent of that country,
(B) transfer, or permit any officer, eriployee, or agent of
that country 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 will maintain the security of such articles, and will
provide substantially the same degree of security protection af-
forded to such articles by the United States Government;
(3) it will, as the President may require, permit continuous
observation and review by, and furnish necessary information to,
representatives of the United States Government with regard
to the use of such articles; and
(4) unless the President consents to other disposition, it will
return to the United States Government for such use or disposi-
tion as the President considers in the best interests of the United
States, such articles which are no longer needed for the purposes
for which furnished.
Limitation. (b) No defense articles shall be furnished on a grant basis to any
country at a cost in excess of $3,000,000 in any fiscal year unless the
President determines-
(1) that such country conforms to the purposes and principles
of the Charter of the United Nations;
(2) that such defense articles will be utilized by such. country
for the maintenance of its own defensive strength, and the de-
fensive strength of the free world;
(3) that such country is taking all reasonable measures, con-
sistent with its political and economic stability, which may be
needed to develop its defense capacities; and
(4) that the increased ability of such country to defend itself
is important to the security of the United States.
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e
75 STAT. 437.
SEC. 507. SALES.-(a) The President may furnish defense articles
from the stocks of the Department of Defense and defense services to
any friendly country or international organization, without reimburse-
ment from funds made available for use under this part, if such coun-
try or international organization agrees to pay the value thereof in
United States dollars. Payment shall be made in advance or, as deter-
mined by the President to `be in the best interests of the United States,
within a reasonable period not to exceed three years after the delivery
of the defense articles, or the provision of the defense services. For
the purposes of this subsection, the value of excess defense articles
shall be not less than (1) the value specified in section 644(m) (1) plus
the scrap value, or (2) the market value, if ascertainable, whichever is
the greater.
(b) The President may, without requirement for charge to any Contracts.
appropriation or contract authorization otherwise provided, enter
into contracts for the procurement of defense articles or defense serv-
ices for sale to any friendly country or international organization
if such country or international organization provides the United
States Government with a dependable undertaking (1) to pay the full
amount of such contract which will assure the United States Govern-
ment against any loss on the contract, and (2) to make funds available
in such amounts and at such times as may be required to meet the
payments required by the contract, and any damages and costs that
may accrue from the cancellation of such contract, in advance of the
time such payments, damages, or costs are due.
SEC. 508. REIMBURSEMENTS.-Whenever funds made available for
use under this part are used to furnish military assistance on cash or
credit terms, United States dollar repayments, including dollar pro-
ceeds derived from the sale of foreign currency repayments to any
agency or program of the United States Government, shall be credited
to the current applicable appropriation, and shall be available until
expended solely for the purpose of furnishing further military assist-
ance on cash or credit terms, and, notwithstanding any provision of
law relating to receipts and credits accruing to the United States Gov-
ernment, repayments in foreign currency may be used to carry out
this part.
SEC. 509. EXCHANGES.-Defense articles or defense services trans-
ferred to the United States Government by a country or international
organization as payment for assistance furnished under this part may
be used to carry out this part, or may be disposed of or transferred to
any agency of the United States Government for stockpiling or other
purposes. If such disposal or transfer is made subject to reimburse-
ment, the funds so received shall be credited to the appropriation,
fund, or account funding the cost of the assistance furnished or to any
appropriation, fund, or account currently available for the same gen-
eral purpose.
SEC. 510. SPECIAL AIITIIORITY.-(a) During the fiscal year 1962, the
President may, if he determines it to be vital to the security of the
United States, order defense articles from the stocks of the Depart-
ment of Defense and defense services for the purposes of part II,
subject to subsequent reimbursement therefor from subsequent appro-
priations available for military assistance. The value of such Limitation.
orders under this subsection in the fiscal year 1962 shall not exceed
$300,000,000. Prompt notice of action taken under this subsection Notice to
shall be given to the Committees on Foreign Relations, Appropria- Congress.
tions, and Armed Services of the Senate and the Speaker of the House
of Representatives.
(b) The Department of Defense is authorized to incur, in applicable
appropriations, obligations in anticipation of reimbursements in
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75 STAT. 438.
amounts equivalent to the value of such orders under subsection (a) of
Appropriations this section. Appropriations to the President of such sums as may be
authorization, necessary to reimburse the applicable appropriation, fund, or account
for such orders are hereby authorized.
SEc. 511. RESTRICTIONS ON MILITARY AID TO LATIN AMERICA.-
(a) The value of grant programs of defense articles for American
Republics, pursuant to any authority contained in this part other than
section 507, in any fiscal year beginning with the fiscal year 1962, shall
not exceed $57,500,000: Provided, That an amount ec,ual to the amount
by which the foregoing ceiling reduces the prograin as presented to
the Congress for the fiscal year 1962 shall be transi'erred to and con-
solidated with the appropriation made pursuant to section 212 and
shall be used for development grants in American Republics.
(b) Internal security requirements shall not., unless the President
determines otherwise and promptly reports such determination to the
Senate Committee on Foreign Relations and to the Speaker of the
House of Representatives, be the basis for military assistance programs
for American Republics.
CHAPTER 1-GENERAL PROVISIONS
SEC. 601. ENCOURAGEMENT OF FREE ENTERPRISE AND PRIVATE PAR-
TICIPATIO:v.-(a) The Congress of the United States recognizes the
vital role of free enterprise in achieving rising levels of production and
standards of living essential to economic progress and development.
Accordingly, it is declared to be the policy of the United States to
encourage the efforts of other countries to increase the flow of inter-
national trade, to foster private initiative and competition, to en-
courage the development and use of cooperatives, credit unions, and
savings and loan associations, to discourage monopolistic practices,
to improve the technical efficiency of their industry, agriculture, and
commerce, and to strengthen free labor unions; and to encourage the
contribution of United States enterprise toward eccnomic strength of
less developed friendly countries, through private trade and invest-
ment abroad, private participation in programs carried out under
this Act (including the use of private trade channels to the maximum
extent practicable in carrying out such programs), and exchange of
ideas and technical information on the matters covered by this sub-
section.
(b) In order to encourage and facilitate participation by private
enterprise to the maximum extent practicable in achieving any of the
purposes of this Act, the President shall-
(1) make arrangements to find, and draw the attention of pri-
vate enterprise to, opportunities for investment and development
in less-developed friendly countries and areas;
(2) accelerate a program of negotiating treaties for commerce
and trade, including tax treaties, which shall include provisions to
encourage and facilitate the flow of private investment to, and its
equitable treatment in, friendly countries and areas participating
in programs under this Act;
(3) seek, consistent with the national interest, compliance by
other countries or areas with all treaties for commerce and trade
and taxes, and take all reasonable measures Lander this Act or
other authority to secure compliance therewith and to assist
United States citizens in obtaining just comppmsation for losses
sustained by them or payments exacted from them as a. result of
measures taken or imposed by any country or area thereof in
violation of any such treaty; and
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4, 1961 _15- Pub. Law 87-195
75 STAT. 439.
(4) wherever appropriate carry out programs of assistance
through private channels and to the extent practicable in con-
junction with local private or governmental participation includ-
ing loans under the authority of section 201 to any individual,
corporation, or other body of persons.
SEC. 602. SMALL BusINESS.-(a) Insofar as practicable and to the
maximum extent consistent with the accomplishment of the purposes
of this Act, the President shall assist American small business to par-
ticipate equitably in the furnishing of commodities, defense articles,
and services (including defense services) financed with funds made
available under this Act-
(1) by causing to be made available to suppliers in the United
States, and particularly to small independent enterprises, infor-
mation, as far in advance as possible, with respect to purchases
proposed to be financed with such funds;
(2) by causing to be made available to prospective purchasers
in the countries and areas receiving assistance under this Act
information as to such commodities, articles, and services produced
by small independent enterprises in the United States; and
(3) by providing for additional services to give small business
better opportunities to participate in the furnishing of such com-
modities, articles, and services financed with such funds.
(b) There shall be an Office of Small Business, headed by a Special Office of
Assistant for Small Business, in such agency of the United States Gov- Small susi-
ernment as the President may direct, to assist in carrying out the Hess.
provisions of subsection (a) of this section.
(c) The Secretary of Defense shall assure that there is made avail
able to suppliers in the United States, and particularly to small inde
pendent enterprises information with respect to purchases made by
the Department of Defense pursuant to part II, such information to
be furnished as far in advance as possible.
SEC. 603. SHIPPINo ON UNITED STATES VESSELS.-The ocean trans
portation between foreign countries of commodities and defense
articles purchased with foreign currencies made available or derived
from funds made available under this Act or the Agricultural Trade
Development and Assistance Act of 1954, as amended (7 U.S.C. 1691 66 Stat. 454.
et seq.), and transfers of fresh fruit and products thereof under this
Act, shall not be governed by the. provisions of section 901(b.) of the
Merchant Marine Act of 1936, as amended (46 U.S.C. 1241), or any 68 Stat. 632.
other law relating to the ocean transportation of commodities on
United States flag vessels.
SEC. 604. PROCUREMENT.-(a) Funds made available under this Act
may be used for procurement outside the United States only if the
President determines that such procurement will not result in adverse
effects upon the economy of the United States or the industrial mobili-
zation base, with special reference to any areas of labor surplus or to
the net position of the United States in its balance of payments with
the rest of the world, which outweigh the economic or other advantages
to the United States of less costly procurement outside the United
States, and only if the price of any commodity procured in bulk is
lower than the market price prevailing in ' the United States at the
time of procurement, adjusted for differences in the cost of transpor-
tation to destination, quality, and terms of payment.
(b) No funds made available under this Act shall be used for the
purchase in bulk of any commodities at prices higher than the market
price prevailing in the United States at the time of purchase, adjusted
for differences in the cost of transportation to destination, quality, and
terms of payment.
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u aw 1 September 4, 196
75 STAT. 440.
Surplus agricul- (c) In providing for the procurement of any surplus agricultural
tural commod- commodity for transfer by grant under this Act to any recipient coun-
ity. try in accordance with its requirements, the President shall, insofar
as practicable and when in furtherance of the purposes of this Act,
authorize the procurement of such surplus agricultural commodity
only within the United States except to the extent that such surplus
agricultural commodity is not available in the United States in suf-
ficient quantities to supply emergency requirements of recipients under
this Act.
Marine insur- (d) In providing assistance in the procurenmer.t of commodities in
ante. the United States, United States dollars shall be made available for
marine insurance on such commodities where such insurance is placed
on a competitive basis in accordance with normal trade practice pre-
vailing prior to the outbreak of World War II: Provided, That in the
event a participating country, by statute, decree, rule, or regulation,
discriminates against any marine insurance company authorized to do
business in any State of the United States, then commodities purchased
with funds provided hereunder and destined for such country shall be
insured in the United States against marine risk with a company or
companies authorized to do a marine insurance business in any State
of the United States.
SEC. 605. RETENTION AND USE OF ITEMS.-(a) Any commodities
and defense articles procured to carry out. this Act shall be retained by,
or upon reimbursement., transferred to, and for the use of, such agency
of the United States Government as the President may determine in
lieu of being disposed of to a foreign country or international organi-
zation, whenever in the judgment of the President the best interests
of the United States will be served thereby, or whenever such retention
Disposition of is called for by concurrent resolution. Any coir_modities or defense
retained items, articles so retained may be disposed of without regard to provisions of
law relating to the disposal of property owned by the United States
Government, when necessary to prevent spoilage or wastage of such
commodities or defense articles or to conserve the usefulness thereof.
Funds realized from any disposal or transfer shall revert to the respec-
tive appropriation, fund, or account used to procure such commodities
or defense articles or to the appropriation, fund, or account currently
available for the same general purpose.
(b) Whenever commodities are transferred to the United States
Government as repayment of assistance under this Act, such com-
modities may be used in furtherance of the purposes and within the
limitations of this Act.
SEC. 606. PATENTS AND TECHNICAL INPORMA'rION.-(a) Whenever,
in connection with the furnishing of assistance under this Act-
(1) an invention or discovery covered by a patent issued by the
United States Government is practiced within the United States
without the authorization of the owner, or
(2) information, which is (A) protected by law, and (B) held
by the United States Government subject to restrictions imposed
by the owner, is disclosed by the United States Government or any
of its officers, employees, or agents in violation of such restrictions,
the exclusive remedy of the owner, except as provided in subsection
(h) of this section, is to sue the United States Government for reason-
able and entire compensation for such practice or disclosure in the
district court of the United States for the district in which such owner
is a resident, or in the Court of Claims, within six years after the cause
of action arises. Any period during which the United States Govern-
ment is in possession of a written claim under subsection (b) of this
section before mailing a notice of denial of that claim does not count
in computing the six years. In any such suit, the United States
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Government may plead any defense that may be pleaded by a private
i
person
n such an action. The last paragraph of section 1498 (a) of
title 28 of the United States Code shall apply to inventions and infor-
mation covered by this section.
(b) Before suit against the United States Government has been
instituted, the head of the agency of the United States Government
concerned may settle and pay any claim arising under the circum-
stances described in subsection (a) of this section. No claim may be
paid under this subsection unless the. amount tendered is accepted by
the claimant in full satisfaction.
(c Funds appropriated pursuant to this Act shall not be expended
by the United States Government for the acquisition of any drug
product or pharmaceutical product manufactured outside the United
States if the manufacture of such drug product or pharmaceutical
product in the United States would involve the use of, or be, covered
by, an unexpired patent of the United States which has not previously
been held invalid by an unappealed or unappealable judgment or
decree of a court of competent jurisdiction, unless such manufacture
is expressly authorized by the owner of such patent.
SEC. 607. FURNISHING OF SERVICES AND COMMODITIES.--Whenever
the President determines it to be consistent with and in furtherance of
the purposes of part I and within the limitations of this Act, any
agency of the United States Government is authorized to furnish
services and commodities on an advance-of-funds or reimbursement
basis to friendly countries, international organizations, the American
Red Cross, and voluntary nonprofit relief agencies registered with
and approved by the Advisory Committee on Voluntary Foreign Aid.
Such advances or reimbursements which are received under this sec-
tion within one hundred and eighty days after the close of the fiscal
year in which such services and commodities are delivered, may be
credited to the current applicable appropriation, account, or fund of
h
t
e agency concerned and shall be available for the purposes for which
such appropriation, account, or fund is authorized to be used.
SEC. 608. ADVANCE ACQUISITION of PROPERTY.-(a) The President
is authorized to maintain in a separate account, which shall, notwith-
standing section 1210 of the General Appropriation Act, 1951 (64
Stat. 765), be free from fiscal year limitation, $5,000,000 of funds
made available under section 212, which may be used to pay costs of
acquisition, storage, renovation and rehabilitation, packing, crating,
handling, transportation, and related costs of property classified as
domestic or foreign excess property pursuant to the Federal Property
and Administrative Services Act of 1949, as amended (40 U.SC. 471
et seq.), or other property, in advance of known requirements therefor
for use in furtherance of the purposes of part I: Provided, That the
amount of property classified as domestic excess property pursuant
to the Federal Property and Administrative Services Act of 1949, as
amended, held at any one time pursuant to this section shall not exceed
$15,000,000 in total original acquisition cost. Property acquired pur-
suant to the preceding sentence may be furnished (1) pursuant to
any provision of part I for which funds are authorized for the fur-
nishing of assistance, in which case the separate account established
pursuant to this section shall be repaid from funds made available
for such provision for all costs incurred, or (2) pursuant to section
607, in which case such separate account shall be repaid in accordance
with the provisions of that section for all costs incurred.
(b) Property classified as domestic excess property under the Fed-
eral Property and Administrative Services Act of 1949, as amended,
shall not be transferred to the agency,primarily responsible for admin-
istering part I for use pursuant to the provisions of part I or section
62 Stat. 941=
74 Stat. 855.
Payment of
claim.
Drug products.
Restriction.
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607 unless (1) such property is transferred for use exclusively by an
agency of the United States Government, or (2) it has been determined
in the same manner as provided for surplus property in section 203 (j)
70 Stat. 493. of the Federal Property and Administrative Services Act of 1949, as
40 use 484. amended, that such property is not needed for donation pursuant to
that subsection. The foregoing restrictions shall not apply to the
transfer in any fiscal year for use pursuant to the provisions of part I
of amounts of such property with a total original acquisition cost
to the United States Government not exceeding $45,000,000.
SEC. 609. SPECIAL ACCOUNT.-(a) In cases where any commodity is
to be furnished on a grant basis under chapter 4 of part I under
arrangements which will result in the accrual of proceeds to the
recipient country from the sale thereof, the President shall require
the recipient country to establish a Special Account, and
(1) deposit in the Special Account, under such terms and con-
ditions as may be agreed upon, currency of the recipient country
in amounts equal to such proceeds;
(2) make available to the United States Gavernment such por-
tion of the Special Account as may be determined by the President
to be necessary for the requirements of the United States Govern-
ment : Provided, That such portion shall no,; be less than 10 per
centum in the case of any country to which such minimum require-
ment has been applicable under any Act repealed by this Act;
and
(3) utilize the remainder of the Special Account for programs
agreed to by the United States Government to carry out the
purposes for which new funds authorized by this Act would
themselves be available: Provided, That whenever funds from
such Special Account are used by a country to make loans, all
funds received in repayment of such loans prior to termination
of assistance to such country shall be reused only for such pur-
poses as shall have been agreed to between the country and the
United States Government.
(b) Any unencumbered balances of funds which remain in the
Account upon termination of assistance to such country under this
Act shall be disposed of for such purposes as may, subject to approval
by Act of the Congress, be agreed to between such country and the
ITnited States Government.
SEc. 610. TRANSFER BETWEEN ACCOUNTS.-Whenever the Presi-
dent determines it to be necessary for the purposes of this Act, not to
exceed 10 per centum of the funds made available for any provision
of this Act may be transferred to, and consolidated with, the funds
made available for any other provision of this A.ct, 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 2) per centum of the
amount of funds made available for such provision.
68 Stat. 830. SEC. 611. COMPLETION OF PLANS AND COST ESTIMATES.-(a) No
agreement or grant which constitutes an obligation of the United
States Government in excess of $100,000 under section 1311 of the
Supplemental Appropriation Act, 1955, as amended (31 U.S.C. 200),
shall be made for any assistance authorized under titles I and II
of chapter 2 and chapter 4 of part I-
(1) if such agreement or grant requires substantive technical
or financial planning, until engineering, financial, and other
plans necessary to carry out such assistance, and a reasonably
firm estimate of the cost to the United States Government of
providing such assistance, have been completed; and
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5 STAT. 443.
(2) if such agreement or grant requires legislative action
within the recipient country, unless such legislative action may
reasonably be anticipated to be completed in time to permit the
orderly accomplishment of the purposes of such agreement or
grant.
con-
water orl elated land resource construction )ce cf onstthis
program rshall struction proj-
include a computation of benefits and costs made insofar as practicable eats.
in accordance with the procedures set forth in circular A-47 of the
Bureau of the Budget with respect to such computations.
(c) To the maximum extent practicable, all contracts for construc-
tion outside the United States made in connection with any agreement
or grant subject to subsection (a) of this section shall be made on a
competitive basis.
(d) Subsection (a) of this section shall not apply to any assistance
furnished for the sole purpose of preparation of engineering, financial,
and other plans.
SEC. 612. USE OF FOREIGN CURRENCIES.-Except as otherwise pro-
vided in this Act or other Acts foreign currencies received either (1)
as a result of the furnishing of nonmilitary assistance under the Mu-
tual Security Act of 1954, as amended, or any Act repealed thereby, 68 Stat. 832.
and unobligated on the date prior to the effective date of this Act or 22 USC 1751
(2) on or after the effective date of this Act, as a result of the furnish- note.
ing of nonmilitary assistance under the Mutual Security Act of 1954,
as amended, or any Act repealed thereby, or (3) as a result of the fur-
nishing of assistance under part I, which are in excess of amounts
reserved under authority of section 105 (d) of the Mutual Educational
and Cultural Exchange Act of 1961 or any other Act relating to edu-
cational and cultural exchanges, may be sold by the Secretary of the
Treasury to agencies of the United States Government for payment of
their obligations outside the United States, and the United States dol-
lars received as reimbursement shall be deposited into miscellaneous
receipts of the Treasury. Foreign currencies so received which are in
excess of the amounts so reserved and of the requirements of the United
States Government in payment of its obligations outside the United
States, as such requirements may be determined from time to time by
the President, shall be available for the authorized purposes of part I
in such amounts as may be specified from time to time in appropriation
Acts.
SEC. 613. ACCOUNTING, VALUATION, AND REPORTING OF FOREIGN
CURRENCIES.-(a) Under the direction of the President, the Secretary
of the Treasury shall have responsibility for valuation and central
accounting with respect to foreign credits (including currencies) owed
to or owned by the United States. In order to carry out such responsi- Regulations.
bility the Secretary shall issue regulations binding upon all agencies
of the Government.
(b) The Secretary of the Treasury shall have sole authority to Exchange
establish for all foreign currencies or credits the exchange rates at rates.
which such currencies are to be reported by all agencies of the
Government.
(c) Each agency or department shall report to the Secretary of the Reports to
Treasury an inventory as of June 30, 1961,-showing the amount of all Treasury De-
foreign currencies acquired without payment of dollars on hand of Partment.
each of the respective countries, and the Secretary of the Treasury
shall consolidate these reports as of the same date and submit to the
Congress this consolidated report broken down by agencies, by coun-
tries, by units of foreign currencies and their dollar equivalent.
Thereafter, semiannually, similar reports are to be submitted by the Reports to
agencies to the Treasury Department and then presented to the Con- Congress.
gress by the Secretary of the Treasury.
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5 e ten 01~1~
75 STAT. 444?
Suc. 614. SPECIAL AUTHORITIES.-(a) The President may authorize
in each fiscal year the use of funds made available for use under this
Act and the furnishing of assistance under section 510 in a total
amount not to exceed $250,000,000 and the use of not to exceed
$100,000,000 of foreign currencies accruing kinder this Act or any
other law, without regard to the requiremeni;s of this Act, any law
relating to receipts and credits accruing to the United States any
Act appropriating funds for use under this Act, or the Mutual De-
65 stat. 644. fense Assistance Control Act of 1951 (22 U.S.C. 1611 et seq.), in
furtherance of any of the purposes of such Acts, when the President
determines that such authorization is important to the security of
the United States. Not more than $50,000,000 of the funds available
under this subsection may be allocated to any one country in any
fiscal year.
U. S. obliga.? (b) Whenever the President determines it, to be important to the
tions in national interest, he may use funds available for the purposes of
West Germarpr? chapter 4 of part I in order to meet the responsibilities or objectives
Funds. of the United States in Germany, including West Berlin, and without
regard to such provisions of law as he determines should be dis-
regarded to achieve this purpose.
(c) The President is authorized to use amounts not to exceed
$50,000,000 of the funds made available under this Act pursuant to
his certification that it is inadvisable to specify the nature of the use
of such funds, which certification shall be deemed to be a sufficient
voucher for such amounts.
SEC. 615. CONTRACT Au-rnoRiTY.-Provisions of this Act author-
izing the appropriation of funds shall be construed to authorize the
granting in any appropriation Act of authority to enter into con-
tracts, within the amounts so authorized to be appropriated, creating
obligations in advance of appropriations.
SEC. 616. AVAILABILITY OF FUNDS.-Exce-at as otherwise provided
in this Act, funds shall be available to carry out the provisions of this
Act as authorized and appropriated to the President each fiscal year.
SEc. 617. TERMINATION Or AssISTANOE.-Assistance under any pro-
vision of this Act may, unless sooner termirated by the President, be
terminated by concurrent resolution. Funds made available under
this Act shall remain available for a period not to exceed twelve
months from the date of termination of assistance under this Act
for the necessary expenses of winding up programs related thereto.
SEC. 618. ECONOMIC ASSISTANCE To LA'rIN AMJ;RICA.-Economic
assistance to Latin America pursuant to title I and title II of chap-
ter 2 of part I of this Act shall be furnished in accordance with the
principles of the Act of Bogota signed on September 13, 1960, and
in order to carry out. the policies of this Act and the purposes of
this section, the President shall, when requested by a friendly country
and when appropriate, assist in fostering measures of agrarian re-
orm, including colonization and redistribution of land, with a view
to ensuring a wider and more equitable disi-ribution of the ownership
of land.
SEC. 619. ASSISTANCE TO NEWLY INDEPENDENT COUNTRIES.-As-
sistance under part I of this Act to newly independent countries shall,
to the maximum extent appropriate in the circumstances of each case,
be furnished through multilateral organizations or in accordance with
multilateral plans, on a fair and equitable basis with due regard to
self-help.
SEC. 620. PROLIn3ITIONs AGAINST FunNIEMING ASSISTANCE TO CUBA
AND CERTAIN OTHER COUNTRIES.-(a) No assistance shall be furnished
under this Act to the present government of Cuba. As an additional
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means of implementing and carrying into effect the policy of the
preceding sentence, the President is authorized to establish and main-
tain a total embargo upon all trade between the United States and
Cuba.
(b) No assistance shall be furnished under this Act to the govern-
ment of any country unless the President determines that such country
is not dominated or controlled by the international Communist
movement.
(c) No assistance shall be provided under this Act to the govern-
ment of any country which is indebted to any United States citizen
for goods or services furnished, where such citizen has exhausted
available legal remedies and the debt is not denied or contested by
such government.
(d) No assistance shall be furnished under section 201 of this Act
for construction or operation of any productive enterprise in any
country where such enterprise will compete with United States enter-
prise unless such country has agreed that it will establish appropriate
procedures to prevent the exportation for use or consumption in the
United States of more than twenty per centum of the annual produc-
tion of such facility during the life of the loan. In case of failure
to implement such agreement by the other contracting party, the
President is authorized to establish necessary import controls to ef-
fectuate the agreement. The restrictions imposed by or pursuant to
this subsection may be waived by the President where he determines
that such waiver is in the national security interest.
CHAPTER 2-ADMINISTRATIVE PROVISIONS
SEC. 621. EXERCISE OF FUNCTIONS.-(a) The President may exer-
cise any functions conferred upon him by this Act through such
agency or officer of the United States Government as he shall direct.
The head of any such agency or such officer may from time to time Rules and
promulgate such rules and re ulations as may be necessary to carry regulations.
out such functions, and may delegate authority to perform any such
functions, including, if he shall so specify, the authority successively
to redelegate any of such functions to any of his subordinates. In
providing technical assistance under this Act in the field of education,
health, housing, or agriculture, or in other fields, the head of any
such agency, or such officer shall utilize, to the fullest extent practica-
ble, the facilities and resources of the Federal agency or agencies with
primary responsibilities for domestic programs in such fields.
(b) Notwithstanding the provisions of section 642(a), the corpo- Abolition of
rate entity known as the Development Loan Fund, the International pertain agen-
Cooperation Administration, and the Office of the Inspector General pies.
and Comptroller shall continue in existence for a period not to exceed
sixty days after the effective date of this Act, unless sooner abolished
by the President. There shall continue to be available to each such
agency and office during such period the respective functions, offices,
personnel, property, records, funds, and assets which were available
thereto on the date prior to the effective date of this Act.
(c) On the date of the abolition of the corporate entity known as the Development
Development Loan Fund, the President shall designate an officer or Loan Fund.
head ofpan agency of the United States Government carrying out func-
tions under part I to whom shall be transferredt and who shall ac
cept the assets of, assume the obligations and liabilities of, and exercise
the rights established or acquired for the benefit of, or with respect to,
the Fund as of the date of abolition and not otherwise disposed of by
this Act. In addition, on such date the President shall designate such
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75 SUT, 446.
officer or head of agency as the person to be sued in the event of default
in the fulfillment of the obligations of the Fund.. and shall transfer to
such officer or head of agency such offices, entities, functions, property,
and records of the Fund as may be necessary, and notwithstanding
any other provision of law, shall transfer to such officer or head of
agency such personnel of the Fund as the President determines to
be necessary. Not later than ninety days after the date of such trans-
fer, the President shall transmit to the Congre?s a final report of the
operations and condition (as of the date of the transfer) of such Fund.
International (d) On the date of the abolition of the International Cooperation
Cooperation Administration the President shall transfer to an officer or head of
Administration. an agency of the United States Government carrying out functions
tinder part. I such offices, entities functions, property, records, and
funds of such agency, not otherwise disposed. of by this Act, as may
be necessary, and notwithstanding any other provision of law, shall
transfer to such officer or head of agency such personnel of the Inter-
national Cooperation Administration as the President determines to
be necessary.
Transfers of (e) On the date of the abolition of the agencies referred to in sub-
assets, obli- sections (c) and (d) of this section, the President shall designate an
gations, etc. officer or head of an agency of the United States Government carrying
out functions under part I to whom shall be transferred, and who shall
accept, the assets, obligations, and liabilities of, and the rights es-
tablished or acquired for the benefit of, or with respect to, the Export-
Import Bank of Washington related to the loans made by the Bank
pursuant to section 104 (e) of the Agricultural Trade Development and
68 Stat. 456. Assistance Act of 1954, as amended (7 U.S.C. 1704(e) ). In addition,
on such date the President shall designate such officer or head of agency
to be sued in the event of default in the fulfilhnent of such obligations
of the Bank, and shall transfer to such officer or head of agency such
records o? he Bank as maybe necessary.
SEc. G22. COORDINATION WITH FOREIGN POLICY.-(a) Nothing
contained in tbi Act shall be construed to infringe upon the powers
or functions of the Secretary of State.
Coordination (b) The President she11 prescribe appropriate procedures to assure
among repre- coordination among representatives of the United States Government
sentatives of in each country, under the leadership of the Chief of the United States
U. S. Diplomatic Mission. The Chief of the diplomatic mission shall make
sure that recommendations of such representatives pertaining to mili-
tary assistance are coordinated with political and economic considera-
tions, and his comments shall accompany such recommendations if he
so desires.
Secretary of (c) Under the direction of the Presiden;, the Secretary of State
State. shall be responsible for the continuous supervision and general direc-
Responsibility. tion of the assistance programs authorized by this Act, including but
not limited to determining whether there shcdl be a military assistance
program for a country and the value thereof, to the end that such
programs are effectively integrated both at home and abroad and the
foreign policy of the United States is best =served thereby.
SEC. 023.'IIE SECRETARY or DEFENSE.-(a) In the case of assist-
ance under part II of this Act, the Secretary of Defense shall have
primary responsibility for-
(1) the determination of military end-item requirements;
(2) the procurement of military equipment in a manner which
permits its integration with service programs;
(3) the supervision of end-item use by the recipient countries;
(4) the supervision of the training of foreign military person-
nel;
(5) the movement and delivery of military end-items; and
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(6) within the Department of Defense, the performance of any
other functions with respect to the furnishing of military
assistance.
(b) The establishment of priorities in the procurement, delivery,
and allocation of military equipment shall be determined by the See-
cretary of Defense.
Sc. F624. STATUTORY OFFIcERs.-(a) The President may appoint, Appointment.
by and with the advice and consent of the Senate, twelve officers in the
agency primarily responsible for administering part I, of whom-
(1) one shall have the rank of an Under Secretary and shall be
compensated at a rate not to exceed the rate authorized by law for
any Under Secretary of an Executive Department;
(2) two shall have the rank of Deputy Under Secretaries and
shall be compensated at a rate not to exceed the rate authorized by
law for any Deputy Under Secretary of an Executive Depart-
ment ; and
(3) nine shall have the rank of Assistant Secretaries and shall
be compensated at a rate not to exceed the rate authorized by law
for any Assistant Secretary of an Executive Department, and in
the selection of one of such persons due consideration shall be
given to persons qualified as professional engineers.
(b) Within the limitations established by subsection (a) of this
section, the President may fix the rate of compensation, and may desig-
nate the title of, any officer appointed pursuant to the authority con-
tained in that subsection. The President may also fix the order of
succession among the officers provided for in paragraphs (2) and (3)
of subsection (a) of this section in the event of the absence, death,
resignation, or disability of the officers provided for in paragraphs
(1) and (2) of that subsection.
(c) Any person who was appointed by and with the advice and con-
sent of the Senate, to any statutory position authorized by any pro-
vision of law repealed by section 642(a) and who is serving in one of
such positions at the time of transfer of functions pursuant to sub-
sections (c) and (d) of section 621, may be appointed by the President
to a comparable position authorized by subsection (a) of this section
on the date of the establishment of the agency primarily responsible
for administering part I, without further action by the Senate.
(d) Notwithstanding the provisions of sections 642(a) (1) and
642(a) (2), any person who, on the date prior to the effective date of
this Act, held an office or a position authorized pursuant to sections
205(b), 527(b), or 533A of the Mutual Security Act of 1954, as 22 USC 1875,
1787, 1793a.
amended, or Reorganization Plan Numbered 7 of 1953, may continue
to hold such office or position, subject to the discretion of the head of 67 Stat. 639.
the agency primarily responsible for administering part I, for a period 22 USC 1785
of not more than sixty days following the effective date of this Act. note.
(e) (1) In addition to the officers provided for in subsection (a) of Additional
this section, there shall be in the Department of State an officer with appointments.
the title of "Inspector General, Foreign Assistance," who shall be
appointed by the President, by and with the advice and consent of the
Senate. In addition, there shall be one Deputy Inspector General,
Foreign Assistance, and two Assistant Inspector Generals, Foreign
Assistance, who shall be appointed by the President, and such other
personnel as may be required to carry out the functions vested in the
Inspector General, Foreign Assistance, by this subsection. Notwith- Office of In-
standing any other provisions of law such of the personnel employed speotor General
under the authority of section 533A of the Mutual Security Act of and Comptroller.
1954, as amended, as the Inspector General, Foreign Assistance, may Transfers.
designate, and such of the property, records, and funds of the office 22 UsC 1793a.
established by such section 533A as the Inspector General, Foreign
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Assistance, may deem necessary, may be transferred to the office of
Inspector Gen- the Inspector General, Foreign Assistance. The Inspector General,
eral, Foreign Foreign Assistance, shall receive compensation at the rate of $20,000
Assistance. annually; the Deputy Inspector General, Foreign Assistance shall
compensation, receive compensation at the rate of $19,500 annually, and each
Assistant Inspector General, Foreign Assistance, shall receive com-
pensation at the rate of $19,000 annually.
Duties. (2) The Inspector General, Foreign Assistance, shall report
directly to the Secretary of State and shall have the following duties
and responsibilities:
A) He shall arrange for, direct or conduct such reviews, in-
spections and audits of programs being conducted under part I
of this Act and of the Peace Corps as he considers necessary for
the purpose of ascertaining the efficiency and. the economy of their
administration, their consonance with the foreign policy of the
United States, and the attainment of their objectives.
(B) For the purpose of ascertaining the extent to which pro-
grams of assistance being carried out under part II of this Act
66 Stat. 454. and the Agricultural Trade Development and Assistance Act of
7 use 1691 note. 1954, as amended, are in consonance with the foreign policy of the
United States, are aiding in the attainment of the objectives of this
Act, and are being carried out consistently with the responsibili-
ties with respect thereto of the respective United States chiefs of
missions and of the Secretary of State, a3 well as the efficiency
and the economy with which such responsibilities are discharged,
he shall arrange for, direct or conduct such reviews, inspections
and audits of programs of assistance uncer part II of this Act
and the Agricultural Trade Development and Assistance Act of
1954, as amended, as he considers necessary.
(3) The Inspector General, Foreign Assistance, shall maintain con-
tinuous observation and review of programs with respect to which he
has responsibilities under paragraph (2) of this subsection for the
purpose of-
(A) determining the extent to which such programs are in
compliance with applicable laws and regulations;
(B) making recommendations for the correction of deficiencies
in, or for improving the organization, plans or procedures of,
such rograms; and
(Cr evaluating the effectiveness of such programs in attaining
United States foreign policy objectives and reporting to the
Secretary of State with respect thereto.
(4) In orer to eliminate duplication and to assure full utilization
of existing data, the Inspector General, Foreign Assistance, shall, in
carrying out his duties under this Act, give due regard to the audit,
investigative and inspection activities of the various agencies, includ-
ing those of the General Accounting Office: and of the military In-
spectors General.
Access to (5) For the purpose of aiding in carrying out his duties under this
records, etc., Act, the Inspector General, Foreign Assistance, shall have access to
of other agen- all records, reports, audits, reviews, documents, papers, recommenda-
cies. tions, or other material of the agencies of ,he United States Govern-
ment administering part I or part II of this Act, the Peace Corps or
the Agricultural Trade Development and Assistance Act of 1954, as
amended. All agencies of the United States Government shall coop-
erate with the Inspector General, Foreign Assistance, and shall fur-
nish assistance upon request to the Inspector General, Foreign
Assistance, in aid of his responsibilities.
Suspension (6) The Inspector General, Foreign Assistance, shall have author-
authority. ity to suspend all or any part of any project or operation (but not a
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75 STAT. 449.
country program) with respect to which he has conducted or is con-
ducting an inspection, audit or review provided he first has given writ-
ten notice to the Secretary of State. Any such suspension shall remain
effective until such program or part thereof is ordered resumed by
the Inspector General, Foreign Assistance, or by the Secretary of
State. This paragraph shall not apply to part II of this Act, and with
respect to the Agricultural Trade Development and Assistance Act of
1954, as amended, shall apply only to projects and operations admin- 68 Stat, 454.
istered by the Secretary of Statoe. 7 USC 1691
(7) Expenses of the Inspector General, Foreign Assistance, with note.
respect to programs under part I or part II of this Act and the Expenses of
Peace Corps shall be charged to the appropriations made to carry Inspector Gen-
out such programs, and with respect to programs under the Agricul- eral.
tural Trade Development and Assistance Act of 1954, as amended,
shall be charged to funds available under the authority of this Act :
Provided, That such appropriations shall not be charged with such
expenses after the expiration of a thirty-five day period which begins
on the date the General Accounting Office, or any committee of the
Congress, or any duly authorized subcommittee thereof, charged with
considering legislation, appropriations, or expenditures under the Act,
has delivered to the Office of the Secretary of State a written request
that it be furnished any document, paper, communication, audit, re-
view, finding, recommendation, report, or other material which relates
to the operation or activities of the Inspector General, Foreign Assist-
ance, unless and until there has been furnished to the General Account-
ing Office, or to such committee, or subcommittee, as the case may be,
(A) the document, paper, communication, audit, review, finding,
recommendation, report, or other material so requested, or (B) a
certification by the President personally that he has forbidden the
furnishing thereof pursuant to such request and his reason for so
doing. Te waiver authority in section 614(a) of this Act and the
provisions of section 634(c) of this Act shall not apply to this sub-
section. Such expenses shall not exceed $2,000,000 in any fiscal year.
The Inspector General, Foreign Assistance, may make expenditures
(not in excess of $2,000 in any fiscal year) of a confidential nature
when he finds that such expenditures are in aid of inspections, audits
or reviews under this subsection. A certificate of the amount of each
such expenditure, the nature of which it is considered inadvisable to
specify, shall be made by the Inspector General, Foreign Assistance,
and every such certificate shall be deemed a sufficient voucher for the
amount therein specified.
SEc. 625. EMPLOYMENT OF United States Governmentocarrying(out functions underff
of this
Act is authorized to employ such personnel as the President deems
necessary to carry out the provisions and purposes of this Act.
(b) Of the personnel employed in the United States to carry out
part I or coordinate part I and part II, not to exceed seventy-six may
be appointed, compensated, or removed without regard to the provi-
si
at rates ons of any law, of whom not to exceed fifty-one may be compensated
schedule established by the Classification Act of 1949, as amend d
(5 U.S.C. 1071 et secy.), and of these, not to exceed eight may be 63 Stat. 954.
compensated at a rate in excess of the highest rate provided for grades
of such general schedule but not in excess of $19,000 per year:
Provided That, under such regulations as the President shall pre-
scribe, officers- and employees of the United States Government who
are appointed to any of the above positions may be entitled, upon
removal from such position, to reinstatement to the position occupied
at the time of appointment or to a position of comparable grade and
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salary. Such positions shall be in addition to those authorized by law
to be filled by Presidential appointment, and in addition to the number
5 USC 1105. authorized by section 505 of the Classification Act of 1949, as amended.
(c) Of the personnel employed in the United States to carry out
part II, not to exceed eight may be compensated at rates higher than
those provided for grade 15 of the general schedule established by the
Classification Act of 1949, as amended, anc of these, not to exceed
three may be compensated at a rate in excess of the highest rate pro-
vided for grades of such general schedule but not in excess of $19,000
f per year. Such positions shall be in addition to those authorized by
aw to be filled by Presidential appointment, and in addition to the
number authorized by section 505 of the Classification Act of 1949, as
amended.
(d) For the purpose of performing functions under this Act outside
the United States the President may-
(1) employ or assign persons, or authorize the employment or
assignment of officers or employees by agencies of the United
States Government, who shall receive compensation at any of the
rates provided for the Foreign Service Reserve and Staff by the
60 Stat. 999. Foreign Service Act of 1946, as amended (22 U.S.C. 801 et seq.),
together with allowances and benefits thereunder; and persons
so employed or assigned shall be entitled, except to the extent that
the President may specify otherwise in cases in which the period
of employment or assignment exceeds thirty months, to the same
22 USC 928. benefits as are provided by section 528 of that Act for persons
appointed to the Foreign Service Rese:eve, and the provisions of
22 USC 807. section 1005 of that Act shall apply in the case of such persons,
except that policymaking officials shall not be subject to that part
of section 1005 of that Act which prohibits political tests i and
(2) utilize such authority, including authority to appoint and
assign personnel for the duration of cperations under this Act,
contained in the Foreign Service Act of 1946, a.s amended, as the
President deems necessary to carry out functions under this Act;
and such provisions of the Foreign Service Act of 1946, as
amended, as the President deems appropriate shall apply to per-
sonnel appointed or assigned under this paragraph, including in
all cases the provisions of section 528 of that Act : Provided,
however, That the President may by regulation make exceptions
to the application of section 528 in cases in which the period bf
the appointment or assignment exceeds thirty months: Provided
further, That Foreign Service Reserve officers appointed or as-
signed pursuant to this paragraph shill receive within-class sal-
ary increases in accordance with such regulations as the President
may prescribe.
Performance (e) The President is authorized to prescribe by regulation stand-
levels for Per- ards or other criteria for maintaining adequate performance levels
sonnet. for personnel appointed or assigned pursuant to paragraph (2) of
standards. subsection (d) of this section and section 527 (c) (2) of the Mutual
22 use 1787. Security Act of 1954, as amended, and may, notwithstanding any other
law, but subject to an appropriate administrative appeal, separate
employees who fail to meet such standard;; or other criteria, and also
may grant such personnel severance benefits of one month's salary for
each year's service, but not to exceed one year's salary at the then
current salary rate of such personnel.
Personnel (f) Funds provided for in agreements with foreign countries for
services. the furnishing of services under this Act shall be deemed to be ob-
Funds. ligated for the services of personnel employed by the United States
Government as well as other personnel.
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75 STAT. 451.
(g) The principles regarding foreign language competence set
forth in section 578 of the Foreign Service Act of 1946, as amended
(22 U.S.C. 801), shall be applicable to personnel carrying out funs- 74 Stat, 834.
Lions under this Act and the Secretary of State shall make appropriate 22 Use 968.
designations and standards for such personnel.
(h) Notwithstanding any other provision of law, officers and em-
ployees of the United States Government performing functions under
this Act shall not accept from any foreign country any compensation
or other benefits. Arrangements may be made by the President with
such countries for reimbursement to the United States Government
or other sharing of the cost of performing such functions.
(i) To the maximum extent. practicable officers and employees per-
forming functions under this Act abroad shall be assigned to countries
and positions for which they have special competence, such as appro-
priate language and practical experience.
SEC. 626. EXPERTS, CONSULTANTS, AND RETIRED OFFICERS.- (a) Ex-
perts and consultants or organizations thereof may, as authorized by
section 15 of the Act of August 2, 1946, as amended (5 U.S.C. 55a), 60 Stat. 810.
be employed for the performance of functions under this Act, and
individuals so employed may be compensated at rates not in excess
of $75 per diem, and while away from their homes or regular places
of business, they may be paid actual travel expenses and per diem in
lieu of subsistence at the applicable rate prescribed in the standardized
Government travel regulations, as amended from time to time. Con-
tracts for such employment with such organizations, employment of
personnel as experts and consultants, not to exceed ten in number,
contracts for such employment of retired military personnel with
specialized research and development experience, not to exceed ten in
number, and contracts for such employment of retired military person-
nel with specialized experience of a broad politico-military nature,
not to exceed five in number, may be renewed annually.
(b) Service of an individual as an expert or consultant under sub-
section (a) of this section shall not be considered as service or employ-
ment bring in such individual within the provisions of section 281,
283, or 284 og f title 18 of the United States Code, or of section 190 of 62 Stat. 697,
the Revised Statutes (5 U.S.C. 99), or of any other Federal law 698.
imposing restrictions, requirements, or penalties in relation to the
employment of persons, the performance of services, or the payment
or receipt of compensation in connection with any claim, proceeding,
or matter involving the United States Government, except insofar as
such provisions of law may prohibit any such individual from receiv-
ing compensation. in respect of any particular matter in which such
individual was directly involved in the performance of such service.
Nor shall such service be considered as employment or holding of office
or position bringing such individual within the provisions of section
13 of the Civil Service Retirement Act, as amended (5 U.S.C. 2263), 70 Stat. 757.
section 212 of Public Law 72-212, as amended (5 U.S.C. 59a), section 47 Stat. 406.
872 of the Foreign Service Act of 1946, as amended, or any other law
limiting the reemployment of retired officers or employees or govern-
ing the simultaneous receipt of compensation and retired pay or
annuities.
(c) Notwithstanding section 2 of the Act of July 31, 1894, as
amended (5 U.S.C. 62), any retired officer of any of the services 28 Stat. 205.
mentioned in the Career Compensation Act of 1949, as amended (37
U.S.C. 231 et seq.), may hold any office or appointment under this 63 Stat. 802.
Act, but the compensation of any such retired officer shall be subject
rovisions of section 212 of Public Law 72-212, as amended.
to the provisions-
(d) Persons of outstanding experience and ability may be employed
without compensation by any agency of the United States Government
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Pub. Law
75 STAT,45Z.
for the performance of functions under this Act in accordance with the
provisions of section 710 (b) of the Defense Production Act of 1950, as
amended (50 U.S.C. App. 2160(b)), and regulations issued
thereunder.
SEC. 627. DETAIL OF PERSONNEL TO FOREIGN GOVERNMENTS.-When-
ever the President determines it to be in furtherance of the purposes of
this Act, the head of any agency of the United States Government is
authorized to detail or assign any officer or employee of his agency to
any office or position with any foreign governme: it or foreign govern-
ment agency, where acceptance of such office or position does not
involve the taking of an oath of allegiance to another government or
the acceptance of compensation or other benefits from any foreign
country by such officer or employee.
SEC. 625. DETAIL OF PERSONNEL TO INTERNATIONAL ORGANIZATIONS.-
Whenever the President determines it to be ccnsistent with and in
furtherance of the purposes of this Act, the head of any agency of the
United States Government is authorized to detail, assign, or otherwise
make available to any international organization any officer or
employee of his agency to serve with, or as a member of, the interna-
tional staff of such organization, or to render any technical, scientific,
or professional advice or service to, or in cooperation with, such
organization.
SEC. 629. STATUS OF PERSONNEL DETAILED: -(a) Any officer or
employee, while assigned or detailed under section 627 or 628 of this
Act, shall be considered, for the purpose of preserving his allowances,
privileges, rights, seniority, and other benefits as such, an officer or
employee of the United States Government and of the agency of the
United States Government from which detailed or assigned, and he
shall continue to receive compensation, allowances, and benefits from
funds appropriated to that agency or made available to that agency
tinder this Act.
(b) Any officer or employee assigned, detailed, or appointed under
section 627, 628, 631, or 624(c) of this Act is authorized to receive
tinder such regulations as the President may prescribe, representation
allowances similar to those allowed under section 901 of the Foreign
Service Act of 1946, as amended (22 U.S.C. 1131). The authoriza-
tion of such allowances and other benefits and the payment thereof
out of any appropriations available therefor shall be considered as
meeting ,all the requirements of section 1765 of the Revised Statutes
(5 U.S.C. 70).
SEC. 630. TERMS OF DETAIL OR ASSIGNMENT.-Details or assign-
22 USC 1928. ments may be made tinder section 627 or 628 of this Act or section 408
of the Mutual Security Act of 1954, as amended--
(1) without reimbursement to the United States Government
by the foreign government or international organization;
(2) upon agreement by the foreign government or interna-
tional organization to reimburse the Untied States Government
for compensation, travel expenses, and allowances, or any part
thereof, payable to the officer or employee concerned during the
period of assignment or detail; and such reimbursements (includ-
ing foreign currencies) shall be credited to the appropriation,
fund, or account utilized for paying such compensation, travel
expenses, or allowances, or to the appropriation, fund, or account
currently available for such purposes;
(3) upon an advance of funds, property, or services by the
foreign government or international organization to the United
States Government accepted with the approval of the President
for specified uses in furtherance of the purposes of this Act; and
funds so advanced may be established as a separate fund in the
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Treasury of the United States Government, to be available for
the specified uses, and to be used for reimbursement of appro ri-
ations or direct expenditure subject to the provisions of this Act,
any unexpended balance of such account to be returned to the
foreign government or international organization; or
(4) subject to the receipt by the United States Government of
a credit to be applied against the payment by the United States
Government of its share of the expenses of the international
organization to which the officer or employee is detailed or as-
signed, such credit to be based upon the compensation, travel
expenses, and allowances, or any part thereof, payable to such
officer or employee during the period of detail or assignment in
accordance with section 629.
SEC. 631. MISSIONS AND SrArrs ABROAD.-(a) The President may
maintain special missions or staffs outside the United States in such
countries. and for such periods of time as may be necessary to carry
out the purposes of this Act. Each such special mission. or staff shall
be under the direction of a chief.
(b) The chief and his deputy of each special mission or staff carry-
ing out the purposes of part I shall be appointed by the President,
and may, notwithstanding any other law, be removed by the President
at his discretion. Such chief shall be entitled to receicce (1) in cases
approved by the President, the same compensation and allowances
as a chief of mission class 3 or a chief
meaning of the Foreign. Service Act of 1946,-s am with(2)in the
om- so Stat. 999.
pensation and allowances in accordance with section 625(d), as the 22 use eo1 mte.
President shall determine to be appropriate.
SEC. 632. ALLOCATION AND REIMBURSEMENT AMONG AGENCIES.-
(a) The President may allocate or transfer to any agency of the
United States Government any part of any funds available for carry-
ing out the purposes of this Act, including any advance to the United
States Government by any country or international organization for
the procurement of commodities, defense articles, or services (including
defense services). Such funds shall be available for obligation and
expenditure for the purposes for which authorized, in accordance with
authority granted in this Act or under authority governing the
activities of the agencies of the United States Government to which
such funds are allocated or transferred.
(b) Any officer of the United States Government carrying out
functions under this Act may utilize the services (including defense
services) and facilities of, or procure commodities and defense articles
from, any agency of the United States Government as the President
shall direct, or with the consent of the head of such agency, and funds
allocated pursuant to this subsection to any such agency may be estab-
lished in separate appropriation accounts on the books of the Treasury. from
anyc agency eof case a the United States yGovernment to lcarry procured part I
reimbursement or payment shall be made to such agencfrom funds
available to carry out such part. Such reimbursement or payment
shall be at replacement cost, or, if required by law, at actual cost, or
at any other price authorized by law and agreed to by the owning or
disposing agency. The amount of any such reimbursement or payment
shall be credited to current applicable appropriations, funds, or
accounts, from which there may be procured replacements of similar
commodities, services, or facilities, except that where such appropri-
ations, funds, or accounts are not reimbursable except by reason of this
subsection, and when the owning or disposing agency determines that
such replacement is not necessary, any funds received in payment
therefor shall be deposited into the Treasury as miscellaneous receipts.
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Pub. Law
75 STAT. 454,
(d) Except as otherwise provided in sections 507 and 510, reimburse-
ment shall be made to any United States Government agency, from
funds available for use under part II, for any assistance furnished
under part II from, by, or through such agency. Such reimbursement
shall be in an amount equal to the value (as defined in section 644(m) )
of the defense articles or of the defense services (other than salaries
of members of the Armed Forces of the United States), or other assist-
ance furnished, plus expenses arising from or inc-.dent to operations
under part II. The amount of such reimbursement shall be credited
to the current applicable appropriations, funds, cr accounts of such
agency.
(e) In furnishing assistance under this Act, accounts may be estab-
lished on the books of any agency of the United States Government or,
on terms and conditions approved by the Secretary of the Treasury,
in banking institutions in the United States, (1) against which letters
of commitment may be issued which shall constitute recordable obliga-
tions of the United States Government, and moneys due or to become
clue under such letters of commitment shall be assignable under the
Assignment of Claims Act of 1940, as amended (second and third
paragraphs of 31 U:S.C. 203 and 41 U.S.C. 15), and (2) from which
disbursements may be made to, or withdrawals may be made by,
recipient countries or agencies, organizations, or parsons upon presen-
tation of contracts, invoices, or other appropriate documentation.
:Expenditure of funds which have been made available through
accounts so established shall be accounted for on standard docu-
mentation required for expenditure of funds of the United States
Government: Provided, That such expenditures for commodities,
defense articles, services (including defense services), or facilities pro-
cured outside the United States may be accounted for exclusively on
such certification as may be prescribed in regulations approved by the
Comptroller General of the United States.
(f) Credits made by the Export-Import Bank of Washington
with funds allocated thereto under subsection (v.) of this section or
22 use 1782. under section 522 (a) of the Mutual Security Act of 1954, as amended,
shall not be considered in determining whether the Bank has out-
standing at any one time loans and guaranties o the extent of the
limitation imposed by section 7 of the Export-Import Bank Act of
1945, as amended (12 U.S.C. 6.35e).
(g) Any appropriation or account available to carry out provisions
of part I may initially be charged in any fiscal year, within the limit
of available funds, to finance expenses for which. funds are available
in other appropriations or accounts under part ].: Provided, That as
of the end of such fiscal year such expenses shall be finally charged
to applicable appropriations or accounts with roper credit to the
appropriations or accounts initially utilized for financing purposes :
Provided further, That such final charge to applicable appropriations
or accounts shall not be required in the case of expenses (other than
those provided for under section 637 (a)) incurred in furnishing
assistance by the agency primarily responsible fcr administering part
I where it is determined that the accounting costs of identifying the
applicable appropriation or account to which such expenses should be
charged would be disproportionate to the advantage to be gained.
SEC. 633. WAIVERS of CERTAIN LAws.-(a) Whenever the President
determines it to be in furtherance of the purposes of this Act, the
functions authorized under this Act may be performed without re-
gard to such provisions of law (other than the Renegotiation Act of
1951, as amended (50 U.S.C. App. 1211 at seq.) ), regulating the mak-
ing, performance, amendment, or modification of contracts and the ex-
penditure of funds of the United States Government as the Presi-
dent may specify.
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75 STAT. 455.
(b) The functions authorized under part 11 may be performed
without regard to such provisions as the President may specify of
the joint resolution of November 4, 1939 (54 Stat. 4), as amended.
(c) Notwithstandin the provisions of sections 3544(b) and 8544
(b) of title 10 of the T7nited States Code, personnel of the Depart-
ment of Defense may be assigned or detailed to any civil office to
carry out this Act.
SEc. 634. REPORTS AND INFORMATION.-(a) The President shall, Report to
while funds made available for the purposes of this Act remain avail- Congress.
able for obligation, transmit to the Congress after the close of each
fiscal year a report concerning operations in that fiscal year under this
Act. Each such report shall include information on the operation
of the investment guaranty program.
(b) The President shall, in the reports required by subsection (a)
of this section, and in response to requests from Members of the Con-
gress or inquiries from the public, make public all information con-
cerning operations under this Act not deemed by him to be incompat-
ible with the security of the United States. In the case of each loan
made from the Development Loan Fund established pursuant to
section 201(a) the President shall make public appropriate informa-
tion about the loan, including information about the borrower, the
nature of the activity being fanced, and the economic development
objectives being served by the loan.
(c) None of the funds made available pursuant to the provisions of
this Act shall be used to carry out any provision of this Act in any
country or with respect to any project or activity, after the expiration
of the thirty five day period which begins on the date the General
Accounting Office or any committee of the Congress charged with con-
sidering legislation, appropriations or expenditures under this Act,
has delivered to the office of the head of any agency carrying out such
provision, a written request that it be furnished any document, paper,
communication, audit, review, finding, recommendation, report, or
other material in its custody or control relating to the administration
of such provision in such country or with respect to such project or
activity, unless and until there has been furnished to the General Ac-
counting Office, or to such committee, as the case may be, (1) the docu-
ment, paper, communication, audit, review, finding, recommendation,
report, or other material so requested, or (2) a certification by the
President that he has forbidden the furnishing thereof pursuant to
re vest and his reason for so doing.
q(du) In January of each year, the President shall notify the Corn- Notification
mittee on Foreign Relations and the Committee on Appropriations of of congres-
the Senate and the Speaker of the House of Representatives of all sional com-
actions taken during the preceding twelve months under this Act mittees.
which resulted in. furnishing assistance of a kind, for a purpose, or to
.?n area, substantially different from that included in the presentation
to the Congress during its consideration of this Act or any Act appro-
priating funds pursuant to authorizations contained in this Act, or
which resulted in obligations or reservations greater by 50 per centum
or more than the proposed obligations or reservations included in
such presentation for the program concerned, and in his notification
the President shall state the justification for such changes. In addi-
tion, the President shall promptly notify the Committee on Foreign
Relations and the Committee on Appropriations of the Senate and the
Speaker of the House of Representatives of any determination under
section 303, 610, 614 (a), or 614 (b).
(e) The President shall include in his recommendations to the Con- Recommenda-
gress for programs under this Act for each fiscal year a specific plan tions to Con-
for each country receiving bilateral grant economic assistance gress.
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whereby, wherever practicable, such grant economic assistance shall be
progressively reduced and eventually terminated.
SEC. 635. GENERAL AuTIIORITIEs.-(a) Except as otherwise spe-
cifically provided in this Act, assistance under this Act may be fur-
nished on a grant basis or on such terms, including cash, credit, or other
terms of repayment (including repayment in foreign currencies or by
transfer to the United States Government of commodities) as may be
determined to be best suited to the achievement of the purposes of this
Act, and shall emphasize loans rather than grants wherever possible.
(b) The President may make loans, advances, and grants to, make
and perform agreements and contracts with, or eater into other trans-
actions with, any individual, corporation, or other body of persons,
friendly government or government agency, whether within or with-
out the United States, and international organizations in furtherance
of the purposes and within the limitations of this Act.
Use of volun- (c) It is the sense of Congress that the President, in furthering the
tary organiza- purposes of this Act, shall use to the maximum e tent practicable the
tions. services and facilities of voluntary, nonprofit orginizations registered
with, and approved by, the Advisory Committee on Voluntary Foreign
Aid.
Acceptance of (d) The President may accept and use in furtherance of the
gifts, etc. purposes of this Act, money, funds, property, and services of any
made available by gift, devise, bequest, gr?;nt, or otherwise for
such purpose.
Health and (e) Any agency of the United States Government is authorized
accident in- to pay the cost of health and accident insurance for fore], partici-
surance. pants by such agency while such p rticipaion a assist-
participants are re absent
ance
from their homes for the purpose of participation in such program.
Alien parti- (f) Alien participants in any program of furnishing technical
cipants. information and assistance under this Act may be admitted to the
United States if otherwise qualified as nonimmigrants under section
101(a) (15) of the Immigration and Nationality Act, as amended
(8 U.S.C. 1101 (a) (15) ), for such time and under such conditions as
may be prescribed by regulations promulgated by the Secretary of
State and the Attorney General.
Loans. (g) In making loans under this Act, the President-
(1) may issue letters of credit and letters of commitment ;
(2) may collect or compromise any obligations assigned to, or
held by, and any legal or equitable rights accruing to him, and,
as he may determine, refer any such obligations or rights to the
Attorney General for suit or collection;
(3) may acquire and dispose of, upon such terms and condi-
tions as he may determine, any property, including any instru-
ment evidencing indebtedness or ownership (provided that equity
securities may not be directly purchased although such securities
may be acquired by other means such as by exercise of conversion
rights or through enforcement of liens or pledges or otherwise
to satisfy a previously incurred indebtedness), and guarantee
payment against any such instrument;
(4) may determine the character of, and necessity for, obli-
gations and expenditures of funds used in making such loans
and the manner in which they shall be incurred, allowed, and
paid, subject to provisions of law speci:acally applicable to
corporations of the United States Government; and
(5) shall cause to be maintained an integral set of accounts
which shall be audited by the General Accounting Office in
accordance with principles and procedures applicable to com-
mercial corporate transactions as provided by the Government
Corporation Control Act, as amended (31 U,S.C. 841 at seq.).
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75 STAT. 457.
(h) A contract or agreement which entails commitments for the contracts or
expenditure of funds made available under titles II and V of chapter agreements.
2 of part I and under part 11 may, subject to any future action of Five year limit.
the Congress, extend at any time for not more than five years.
(i) Claims arising as a result of investment, guaranty operations Investment guar-
may be settled, and disputes arising as a result thereof may be arbi- anty operations.
trated with the consent of the parties, on such terms and conditions Claims.
as the President may direct. Payment made pursuant to any such
settlement, or as a result of an arbitration award, shall be final and
conclusive notwithstanding any other provision of law.
(j) The provisions of section 955 of title 18 of the United States 62 Stat. 744.
Code shall not apply to prevent any person, including any individual,
partnership, corporation, or association, from acting for, or partici-
pating in, any operation or transaction arising under this Act, or
from acquiring any obligation issued in connection with any operation
or `transaction arising under this Act.
SEC. 636. PROVISIONS ON USES OF FUNDS.-(a) Appropriations for
the purposes of or pursuant to this Act (except for part II) , allocations
to any agency of the United States Government,, from other appropri-
ations, for functions directly related to the purposes of this Act, and
funds made available for other purposes to the agency primarily
responsible for administering part I, shall be available for:
(1) rent of buildings and space in buildings in the United Rents, domes-
States, and for repair, alteration, and improvement of such leased tic.
properties;
(2) expenses of attendance at meetings concerned with. the Attendance at
purposes of such appropriations or of this Act, including (not- meetings.
withstanding the provisions of section 9 of Public Law 60-328
(31 U.S.C. 613)) expenses in connection with meetings of persons 35 Stat. 1027.
whose employment is authorized by section 626;
(3) contracting with individuals for personal services abroad: personal serv-
Provided, That such individuals shall not be regarded as employ- ices.
ees of the United States Government for the purpose of any law
administered by the Civil Service Commission;
(4) purchase, maintenance, operation, and hire of aircraft: Aircraft.
Provided, That aircraft for administrative purposes may be pur-
chased only as specifically provided for in an appropriation or
other Act;
(5) purchase and hire of passenger motor vehicles: Provided, Passenger
That, except as may otherwise be provided in an appropriation or motor ve_
other Act, passenger motor vehicles for administrative purposes hides.
outside the United States may be purchased for replacement only,
and such vehicles may be exchanged or sold and replaced by an
equal number of such vehicles, and the cost, including exchange
allowance, of each such replacement shall not exceed $3,500 in the
case of an automobile for the chief of any special mission or staff
outside the United States established under section 631: Provided
further, That passenger motor vehicles, other than one for the
official use (without regard to the limitations contained in section
5 of Public Law 63-127, as amended (5 U.S.C. 78(c) (2)) and 60 Stat. 810.
section 201 of Public Law 85-468 (5 U.S.C. 78a-1)) of the head 72 Stat. 224.
of the agency primarily responsible for administering part I,
may be purchased for use in the United States only as may be
specifically provided in an appropriation or other Act;
(6) entertainment (not to exceed $25,000 in any fiscal year Entertainment.
except as may otherwise be provided in an appropriation or
other Act) ;
(7) exchange of funds without regard to section 3651 of the Exchange of
Revised Statutes (31 U.S.C. 543) and loss by exchange; funds.
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75 STAT. 458.
Expenses of a (8) expenditures (not to exceed $50,000 in any fiscal year except
confidential as may otherwise be provided in an appropriation or other Act)
character, of a confidential character other than entertainment: Provided,
That a certificate of the amount of each =.uch expenditure, the
nature of which it is considered inadvisable to specify, shall be
made by the head of'the agency primarily responsible for admin-
istering part I or such person as he may designate, and every
such certificate shall be deemed a sufficient voucher for the amount
therein specified ;
Insurance. (9) insurance of official motor vehicles or aircraft acquired for
use in foreign countries;
Rents, foreign. (10) rent or lease outside the United States for not to exceed
ten years of offices, buildings, grounds, and quarters, including gg
living quarters to house personnel, and payments therefor in ad-
vance; maintenance, furnishings, necessary repairs, improve-
ments, and alterations to properties owned or rented by the United
States Government or made available for use to the United States
Government outside the United States; and costs of fuel, water,
and utilities for such properties;
Transportation (11) expenses of preparing and transporting to their former
of deceased in- homes, or, with respect to foreign participants engaged in any
dividuals. program under part I, to their former homes or places of burial,
and of care and disposition of, the remains cf persons or members
of the families of persons who may die while such persons are
away from their homes participating in activities carried out with
funds covered by this subsection;
Uniforms. (12) purchase of uniforms;
Per diem. (13) payment of per diem in lieu of subsistence to foreign par-
ticipants engaged in any program under part I while such par-
ticipants are away from their homes in countries other than the
United States at rates not in excess of those prescribed by the
standardized Orovernment travel regulations, notwithstanding any
other provision of law;
60 Stat. 999. (14) use in accordance with authorities of the Foreign Service
Act of 1946, as amended (22 U.S.C. 801 et; seq.), not otherwise
provided for;
Water. 15) ice and drinking water for use outside the United States;
Coast and Geo- (16) services of commissioned officers of tie Coast and Geodetic
detic Survey Survey, and for the purposes of providing such services the Coast
officers. and Geodetic Survey may appoint not to exceed twenty commis-
sioned officers in addition to those otherwise .uthorized;
Travel of per- (17) expenses in connection with travel of personnel outside
sonnel. the United States, including travel expenses of dependents (in-
cluding expenses during necessary stopovers while engaged in
such travel), and transportation of personal effects, household
goods, and automobiles of such personnel when any part of such
travel or transportation begins in one fiscal year pursuant to travel
orders issued in that fiscal year, notwithstanding the fact that
such travel or transportation may not be completed during the
same fiscal year, and cost of transporting automobiles to and from
a place of storage, and the cost of storing automobiles of such
personnel when it is in the public interest or more economical to
authorize storage.
Availability (b) Funds made available for the purposes of this Act may be used
of funds, for compensation, allowances, and travel of personnel including
Foreign Service personnel whose services are utilized primarily for
the purposes of this Act, for printing and binding without regard to
the provisions of any other law, and for expenditures outside the
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Th SYI9. 459.
United States for the procurement of supplies and services and for
other administrative and operating purposes (other than compensa-
tion of personnel) without regard to such laws and regulations govern-
ing the obligation and expenditure of funds of the United States
Government as may be necessary to accomplish the purposes of this
Act.
(c) Notwithstanding any other law, not to exceed $3,000,000 of the construction of
funds available for assistance under this Act (other than title I of living quarters,
etc.
chapter 2 of part I) may be used in any fiscal year (in addition to
funds available for such use under other authorities in this Act) to
construct or otherwise acquire outside the United States (1) essential
living quarters, office space, and necessary supporting facilities for
use of personnel carrying out activities authorized by this Act, and
(2) schools (including dormitories and boarding facilities) and hos-
pitals for use of personnel carrying out activities authorized by this
Act, United States Government personnel, and their dependents. In
addition, funds made available for assistance under this Act (other
than title I of chapter 2 of part I) may be used, notwithstanding any
other law, to equip, staff, operate, and maintain such schools and
hospitals.
(d) Not to exceed $1,500,000 of the funds available for assistance Education of
under this Act (other than title I of chapter 2 of part I) may be used dependents.
in any fiscal year to provide assistance, on such terms and conditions
as are deemed appro riate, to schools established, or to be established,
outside the United States whenever it is determined that such action
would be more economical or would best serve the interests of the
United States in providing for the education of dependents of per-
sonnel carrying out activities authorized by this Act and dependents
of United states Government personnel, in lieu of acquisition or con-
struction pursuant to subsection (c) of this section.
(e) Funds available under this Act, (other than title I of chapter 2 Training costs.
of part I) may be used to pay costs of training United States citizen
personnel employed or assigned pursuant to section 625(d) (2)
(through interchange or otherwise) at any State or local unit of
government, public or private nonprofit institution, trade, labor, agri-
cultural, or scientific association or organization, or commercial firm;
and the provisions of Public Law 84-918 (7 U.S.C. 1881 at seq.) may 70 Stat. 934.
be used to carry out the foregoing authority notwithstanding that
interchange of personnel may not be involved or that the training
may not take place at the institutions specified in that Act. Such
training shall not be considered employment or holding of office under
section 2 of the Act of July 31, 1894, as amended (5 U.S.C. 62), and
any payments or contributions in connection therewith may, as deemed
appropriate by the head of the agency of the United States Govern-
ment authorizing such training, be made by private or public sources
and be accepted by any trainee, or may be accepted by and credited to
the current applicable appropriation of such agency: Provided, how
ever, That any such payments to any employee in the nature of com-
pensation shall be in lieu, or in reduction, of compensation received
from the United States Government.
(f) Funds made available under section 212 may be used for ex-
penses (other than those provided for under section 637(a)) to assist
in carrying out functions under title I of chapter 2 of part I, under the
Agricultural Trade Development and Assistance Act of 1954, as
amended (7 U.S.C. 1691 at seq.), and under the Act to provide for
assistance in the development of Latin America and in the reconstruc-
tion of Chile, and for other purposes (22 U.S.C. 1942 et seq.), per-
formed by the agency primarily responsible for administering part I.
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75 STAT. 460.
(g) Funds made available for the purposes of part II shall be avail-
able for-
(1) administrative, extraordinary (not to exceed $300,000 in
any fiscal year), and operating expenses;
Expenses of (2) reimbursement of actual expenses of military officers de-
military offi- tailed or assigned as tour directors in connection with orientation
cers. visits of foreign military personnel, in ao3ordance with the pro-
visions of section 3 of the Travel Expense Act of 1949, as amended
(5 U.S.C. 836), applicable to civilian officers and employees; and
(3) maintenance, repair, alteration, and furnishing of United
States-owned facilities in the District of Columbia or elsewhere
for the training of foreign military persomel, without regard
to the provisions of section 3733 of the Revised. Statutes (41
I T.S.C. 12) or other provision of law requiring a specific author-
ization or specific appropriation for such public contracts.
SEC. 637. ADMINISTRATIVE EXPENSES.-(a) There is hereby author-
ized to be appropriated to the President for the fiscal year 1962 not
to exceed $50,000,000 for necessary administrative expenses of the
agency primarily responsible for administering part I.
(b) There is hereby authorized to be appropriated to the Secretary
of State such amounts as may be necessary frcm time to time for ad-
ministrative expenses which are incurred for functions of the Depart-
ment of State under this Act and unrepealed provisions of the Mutual
22 -USC 1751 Security Act of 1954, as amended, or for normal functions of the
note. Department of State which relate to such functions.
CHAPTER 3-MISCELLANEOUS PROVISIONS
Si c. 641. EFFECTIVE DATE AND IDENTIFICATION OF PROGRA3fs.-This
Act shall take effect on the date of its enactment. Programs under this
Act shall be identified appropriately overseas as "American Aid".
SEC. 642. STATUTES REPEALED.-(a) There ar,.~ hereby repealed-
22 USC 1785 (1) Reorganization Plan Numbered 7 of 1953;
note. (2) the Mutual Security Act of 1954, as amended (except sec-
22 USC 1751 t.ions 143, 402, 405(a), 405(c), 405(d), 408, 414, 417, 451(c),
no-be. 502(a), 502(b), 514, 523(d), and 536) : P^ovided, That until the
enactment of legislation authorizing and appropriating funds
for activities heretofore carried on pursuant to sections 405(a),
405(c), 405(d), and 451(c) of the Mutual Security Act of 1954,
as amended, such activities may be continued with funds made
available under section 451(a) of this Act;
22 USC 1811 (3) section 12 of the Mutual Security Act of 1955;
note. (4) sections 12, 13, and 14 of the Mutual Security Act of 1956;
70 Stat. 565. (5) section 503 of the Mutual Security Act of 1958;
22 USC 1753 note, (6) section 108 of the Mutual Security Appropriation Act,
1870. 1959;
22 USC 1750a.
22 USC 1922 note. (7) section 501(a), chapter VI, and sections 702 and 703 of the
22 uSC 1941, 1928b Mutual Security Act of 1959, as amended: and
note, 1,351 note. (8) section 604 and chapter VIII of the Mutual Security Act
22 USC 1783 note, of 1960.
2071, 2072. (b) References in law to the Acts, or provisions of such Acts,
repealed by subsection (a) of this section shall hereafter be deemed
to be references to this Act or appropriate provisions of this Act.
(c) The repeal of the Acts listed in subsection (a) of this section
shall not be deemed to affect amendments contained in such Acts to
Acts not named in that subsection.
Sxc. 643. SAVING PROVISIONS.-(a) Except as may be expressly
provided to the contrary in this Act, all determinations, authoriza-
tions, regulations, orders, contracts, agreements, and other actions
issued, undertaken, or entered into under autl_ority of any provision
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September 4, 1961 -37- Pub. Law 87-195
75 STAT. 461.
of law repealed by section 642(a) shall continue in full force and
effect until modified by appropriate authority.
(b) Wherever provisions of this Act establish conditions which
must be complied with before use may be made of authority contained
in, or funds authorized by, this Act, compliance with, or satisfaction
of, substantially.similar conditions under Acts listed in section 642 (a)
or Acts repealed by those Acts shall be deemed to constitute compliance
with the conditions established by this Act.
(c) Funds made available pursuant to provisions of law repealed
by section 642 (a) (2) shall unless otherwise authorized or provided
by law, remain available for their original purposes in accordance
with the provisions of law originally applicable thereto, or in accord-
ance with the provisions of law currently applicable to those purposes.
(d) No provision of this Act shall affect, or be deemed to affect,
except as the President may determine, the agency within the Depart-
ment of State known as the Peace Corps, nor any of the functions,
offices, personnel, property, records, and funds available thereto on
the date prior to the effective date of this Act, pending the enactment
of legislation for the Peace Corps or the adjournment of the first
session of the Eighty-seventh Congress whichever is earlier.
SEc. 644. DEFINiTIONSr-As used in this Act-
(a) "Agency of the United States Government" includes any
agency, department, board, wholly or partly owned corporation, in-
strumentality, commission, or establishment of the United States
Government.
(b) "Armed Forces" of the United States means the Anny, Navy,
Air Force, Marine Corps, and Coast Guard.
(c) "Commodity" includes any material, article, supply, goods, or
equipment used for the purposes of furnishing nonmilitary assistance.
(d) "Defense article" includes-
(1) any weapon, weapons system, munition, aircraft, vessel,
boat, or other implement of war;
(2) any property, installation, commodity, material, equip-
ment, supply, or goods used for the purposes of furnishing mili-
tary assistance;
(3) any machinery, facility, tool, material, supply, or other
item necessary for the manufacture, production, processing re-
pair, servicing, storage, construction, transportation, operation,
or use of any article listed in this subsection ; or
(4) any component or part of any article listed in this sub-
section; but
shall not include merchant vessels or, as defined by the Atomic Energy
Act of 1954, as amended (42 U.S.C. 2011), source material, byproduct
material, special nuclear material, or atomic weapons.
(e) "Defense information" includes any document, writing, sketch,
photograph, plane model, specification, design, prototype, or other
recorded or oral information relating to any defense article or de-
fense service, but shall not include IZest.ricted Data and formerly
Restricted Data as defined by the Atomic Energy Act of 1954, as
amended.
(f) "Defense service" includes any service, test, inspection, repair,
training, training aid, publication, or technical or other assistance,
including the transfer of limited quantities of defense articles for test
evaluation, or standardization purposes, or defense information used
for the purposes of furnishing military assistance.
(g) "Excess defense articles" mean the quantity of defense articles
owned by the United States Government which is in excess of the
mobilization reserve at the time such articles are dropped from inven-
tory by the supplying agency for delivery to countries or international
organizations as grant assistance under this Act.
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Pub. Law 87-195 -38- September 4, 1961
75 STAT. 462.
(h) "Function" includes any duty, obligation, power, authority,
respoi ~sibility, right, privilege, discretion, or activity.
(i) Mobilization reserve means the quantity of defense articles
determined to be required, under regulations prescribed by the Presi-
dent, to support mobilization of the Armed Forces of the United States
Government in the event of war or national emergency.
(j) "Officer or employee" means civilian personnel and members of
the Armed Forces of the United States Government.
(k) "Services" include any service, repair, training of personnel,
or technical or other assistance or information used for the purposes
of furnishing nonmilitary assistance.
(1) "Surplus agricultural commodity" mean,; any agricultural com-
modity or product thereof, class, kind, type, or other specification
thereof, produced in the United States, either publicly or privately
owned, which is in excess of domestic requirements, adequate carry-
over, and anticipated exports for United States dollars, as determined
by the Secretary of Agriculture.
(m) "Value' means-
(1) with respect to excess defense articles, the gross cost in-
curred by the United States Government in repairing, rehabilitat-
ing, or modifying such articles;
(2) with respect to nonexcess defense a;ticles delivered from
inventory to countries or international organizations as grant
assistance under this Act, the standard price in effect at the time
such articles are dropped from inventory by the supplying agency.
Such price shall be the same standard price used for transfers or
sales of such articles in or between the Armed Forces of the
United States Government, or, where such articles are not trans-
ferred or sold in or between the Armed Forces of the United
States, the gross cost to the United States Government adjusted
as appropriate for condition and market vzlue; and
(3) with respect to nonexcess defense articles delivered from
new procurement to countries or international organizations as
grant assistance under this Act, the contract or production costs
of such articles.
Military assistance programs and orders shall be based upon the best
estimates of stock status and prevailing prices; reimbursements to the
supplying agency shall be made on the basis of the stock status and
prices determined pursuant to this section. Notwithstanding the fore-
going provisions of this section, the Secretary of Defense may pre-
scribe regulations authorizing reimbursements to the supplying agency
based on negotiated prices for aircraft, vessels, plant equipment, and
such other major items as he may specify : Provided, That such articles
are not excess at the time such prices are negotiated : Provided further
That such prices are negotiated at the time firm orders are placed
with the supplying agency by the military assistance program.
SEC. 645. UNEXPENDED BALANCES.-Unexpended balances of funds
68 Stat. 832. made available pursuant to the Mutual Security Act of 1954, as
22 USC 1751 note. amended, are hereby authorized to be continued available for the gen-
eral purposes for which appropriated, and may at any time be consoli-
dated, and, in addition, may be consolidated with appropriations made
available for the same general purposes under the authority of this Act.
Separability. SEc. 646. CoNsTRUCrioN.-If any provision of this Act or the appli-
cation of any provision to any circumstances or parsons shall be held
invalid, the validity of the remainder of this Act, and of the appli-
cability of such provision to other circumstances or persons shall not
be affected thereby.
Fuels. SEc. 647. DEPENDABLE FUEL SUPPLY, It is of paramount impor-
Development tance that long-range economic plans take cognizance of the need for a
program.
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75 9TAT. 463.
dependable supply of fuels, which is necessary to orderly and stable
development and growth, and that dependence not be placed upon
sources which are inherently hostile to free countries and the ultimate
well-being of economically underdeveloped countries and which might
exploit such dependence for ultimate political domination. The
agencies of government in the United States are directed to work with
other countries in developing plans for basing development pro-
grams on the use of the large and stable supply of relatively low cost
fuels available in the free world.
SEC. 701. Section 1 of the Defense Base Act, as amended (42 U.S.C.
1651), is further amended as follows :
(1In paragraph (5) of subsection (a~ insert after "thereof" in the
second parenthetical phrase "unless the Secretary of Labor, upon the
recommendation of the head of any department or other agency of the
United States, determines a contract financed under a successor pro-
vision of any successor Act should be covered by this section".
(2) In subsection (e) strike out "June 30, 1958, but not completed
on July 24, 1959" and substitute therefor "but not completed on the
date of enactment of any successor Act to the Mutual Security Act of
1954, as amended".
SEc. 702. In paragraph (4) of section 101 (a) of the War Hazards
Compensation Act, as amended (42 U.S.C. 1701), insert after
"thereof" in the parenthetical phrase "unless the Secretary of Labor,
upon the recommendation of the head of any department or other
agency of the United States Government, determines a contract fi-
nanced under a successor provision of any successor Act should be
covered by this section".
SEC. 703. (a) Section 305 of the Mutual Defense Assistance Control
Act of 1951 (22 U.S.C. 1611 et seq.) is amended to read as follows:
"SEC. 305. There is hereby authorized to be appropriated to the
Secretary of State such sums as may be necessary from time to time
to administer and carry out the objectives of this Act."
(b) The amendment to section 305 of the Mutual Defense Assist-
ance Control Act of 1951 effected by subsection (a) of this section
shall not be deemed to affect the repeal of laws effected by that section
prior to such amendment.
SEC. 704. Section 104(e) of the Agricultural Trade Development
and Assistance Act of 1954, as amended (7 U.S.C. 1704(e) ), is
amended by substituting "such agency as the President shall direct"
and "agency" for "the Export-Import bank" and "bank", respectively.
SEC. 705. Section 5 of the joint resolution to promote peace and
stability in the Middle East (22 U.S.C. 1964) is amended by substi-
tuting "whenever appropriate" for "within the months of January
and July of each year".
SEC. 706. The Act, to provide for assistance in the development of
Latin America and in the reconstruction of Chile, and for other pur-
poses (22 U.S.C. 1942 et seq.), is amended by adding a new section 4
"SEC. 4. (a) Funds appropriated under sections 2 and 3 of this Act
may be used for assistance under this Act pursuant to such provisions
applicable to the furnishing of such assistance contained in any suc-
cessor Act to the Mutual Security Act of 1954, as amended, as the
President determines to be necessary to carry out the purposes for
which such funds are appropriated.
Repeal of laws
not affected.
68 Stat. 456;
71 Stat. 345.
22 USC 1943,
1944.
68 Stat. 832.
22 USC 1751
note.
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"(b) Of the funds appropriated under section 2 of this Act not
more than $800,000 shall be available only for assisting in transporting
to and settling in Latin America selected immigrants from that, por-
tion of the Ryukyuan Archipelago tinder United States administra-
i ion."
SEC. 707. Section 523(d) of the Mutual Security Act of 1954, as
74 Stat. 139. amended (22 U.S.C. 1783(d) ), is amended by striking out the words
"achievement of United States foreign policy objectives" and inserting
in lieu thereof the words "prevention of impro>er currency trans-
actions".
SEC. 708. The Foreign Service Act of 1946, as amended (22 U.S.C.
801 et seq.), is further amended as follows:
60 stat. 1018; (1) In the second sentence of section 701, strike "to the extent that
74 Stat. 837. space is available therefor"; substitute "members of family" for
"spouses"; and add before the period "or while d0road".
74 Stat. 846. (2) Amend section 872 by striking out subsections (b) and (c) and
inserting in lieu thereof the following :
"(b) When any such retired officer or employee of the Service is
reemployed, the employer shall send a notice to the Department of
State of such reemployment together with all pertinent information
relating thereto, and shall pay directly to such officer or employee the
salary of the position in which he is serving.
"(c.) In the event of any overpayment under this section, such over-
payment shall be recovered by withholding the amount involved from
the salary payable to such reemployed officer or employee, or from any
other moneys, including his annuity, payable in accordance with the
provisions of this title."
22 USC 1136. (3) In section 911, add the following new paragraphs (9) and (10)
"(9) the travel expenses of officers and em iloyees of the Serv-
ice who are citizens of the United States, and members of their
families, while serving at posts specifically designated by the
Secretary for purposes of this paragraph, fo:e rest and recupera-
tion to other locations abroad having different environmental
conditions than those at the post at which such officers and em-
ployees are serving, provided that such travel expenses shall be'
limited to the cost for each officer or employee and members of
his family of one round trip during any continuous two-year tour
unbroken by home leave and two round trips during any con-
tinuous three-year tour unbroken by Bonne leave;
"(10) the travel expenses of members of the family accompany-
ing, preceding, or following an officer or employee if, while he
is en route to his post of assignment, he is ordered temporarily for
orientation and training or is given other temporary duty."
22 USC 1148. (4) Amend section 933 (a) to read as follows:
"(a) The Secretary may order to the continental United States, its
territories and possessions, on statutory leave of absence any officer or
employee of the Service who is a citizen of the United States capon
completion of eighteen months' continuous service abroad and shall so
order as soon as possible after completion of three years of such
service."
22 USC 1157. (5) Amend the title of section 942 and subsection (a) thereof to
read as follows:
"SEC. 942. (a) In the event an officer or employee of the Service
who is a citizen of the United States or one of his dependents, requires
medical care, for illness or injury not the result of vicious habits, in-
temperance or misconduct, while stationed abroad in a locality where
there is no qualified person or facility to provide such care, the Secre-
tary may, in accordance with such regulations as he may prescribe,
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75 ST4T. 465.
pay the travel expenses of such person by whatever means he shall
deem appropriate, including the furnishing of transportation, and
without regard to the Standardized Government Travel Regulations
and section 10 of the Act of March 3, 1933, as amended ~60 Stat.
808; 5 U.S.C. 73b), to the nearest locality where suitable medical
care can be obtained. If any such officer, employee, or dependent
is too ill to travel unattended, or in the case of a dependent too
young to travel alone, the Secretary may also pay the round-trip
travel expenses of an attendant or attendants."
SEC. 709. Section 2 of the Act of July 31, 1945, as amended (22
U.S.C. 279a), is hereby amended to read as follows:
"SEC. 2. There is hereby authorized to be appropriated, out of any U. S. Food and
money in the Treasury not otherwise appropriated, such sums as Agricultural
may be required for expenditure under the direction of the Secre organization.
tary of State, for the payment by the United States of its propor- Appropriation.
tionate share in the expenses of the Organization : Provided, That
the percentage contribution of the United States to the total annual
budget of the Organization shall not exceed 33.33 per centum."
SEC. 710. (a) The first section of the Act entitled "An Act to Interparlia-
authorize participation by the United States in the Interparliamen- mentary Union.
tary Union", approved June 28, 1935, as amended (22 U.S.C. 276),
is amended by striking out $33,000" and "$15,000" and inserting
in lieu thereof "$48,000" and "$30,000", respectively.
(b) The amendments made by this section shall be effective only
for the fiscal year 1962.
Approved September 4, 1961.
0
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