CONFERENCE REPORT ON FOREIGN ASSISTANCE ACT OF 1974

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00957A000100010011-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 55
• Document Creation Date: December 20, 2016
• Document Release Date: May 24, 2005
• Sequence Number: 11
• Publication Date: December 17, 1974
• Content Type: REGULATION

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93D CONGRESS l
2d Session I
HOUSE OF REPRESENTATIVES REPORT
No. 93-1610
CONFERENCE REPORT
ON
FOREIGN ASSISTANCE ACT OF 1974
S. 3394
TO AMEND THE FOREIGN ASSISTANCE ACT OF 1961, AND
FOR OTHER PURPOSES
U.S. GOVERNMENT PRINTING OFFICE
38-006 WASHINGTON : 1974
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CONTENTS
Page
Conference report-------------------------------------------------
Joint explanatory statement of the committee of conference-------------
31
32 1
Funds authorized for fiscal year 1975-----------------------------
-
32
Food and nutrition authorization-------------------------------
32
Food and nutrition --------------------------------------
Policy increasing agricultural production______________________
33
Limit on fertilizer production for Vietnam____________________
3
3
Education and human resource development authorization----_-----
33
--
3
3
Disposition of loan receipts -----------------------------------
33
Housingguaranties --------------------------------------------
Agricultural credit programs ------------------------------------
34
International organization and programs --------------------------
34
Authorization_________________________
Earmarking for the International Atomic Energy______________
34
Expense of U.S. membership in UNESCO--------------------
34..
Military assistance authorizations - - - - - - - - - - - - - - - - - - - - - - - - -
35
Specialdrawdownauthority ---------------------------- --------
35
Military assistance authorization for South Yi0tnaW---.__-__-_------
36
---
3
6
Excess defense articles --------------------------------------
-------------------------------
-
Limitations on use
36
------
---
Repeal of limitations on use and definition of excess defense
36
articles-------------------------------------------------
Value of excess defense articles in material presented to the
36
Congress ------------------------------------
Stockpiling of defense articles for foreign countries _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
37
Military Assistance Advisory Groups and Missions - - - - - - - - - - - - - - - -
37
-----
uthorit
t
i
3
7
y-----------------
ance a
s
Termination of military ass
Termination of MAP programs ---__--._____________________
Continuation of military training----------------------------
37
38
Exemption of Canal Zone training_______________________________
38
Termination of military assistance and sales to South Korea --------
38
Security supporting assistance authorization _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
38
Transfer and waiver authority amendments_______________________
39
Transfer between accounts__________________________________
39
Transfer between accounts for Indochina ---------------------
39
Restrictions on use of development assistance funds ------------
39
Changes in allocation --------------------------------------
40
Prohibitions on military assistance to Turkey ---------------------
40
Waiver of prohibition on assistance to countries trading with North
Vietnam----------------------------------------------------
41
Limitations on assistance to Chile_______________________________
41
Disaster relief and contingency fund_____________________________
41
Access to certain military bases abroad___________________________
41
Prohibiting police training______________________________________
42
Reimbursable development programs____________________________
42
Limiting intelligence activities---------------------------- ------
42
Waiver of prohibition against countries engaging in certain trade -----
43
Indochina policy statement_____________________________________
43
Principles governing economic aid to Indochina _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
43
Indochina authorization________________________________________
44
Assistance to South Vietnamese children__________________________
44
Limitations on aid to South Vietnam_____________________________
44
Limitations on assistance to Cambodia___________________________
45
Limitations on assistance to Laos________________________________
46
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Joint explanatory statement of the committee of conference-Continued
Page
Middle East assistance_________________________________________
46
General authority_________________________________________
46
Statement of policy________________________________________
46
Allocation of Middle East assistance_________________________
47
Special Requirements Fund_________________________________
47
Prohibition on use of funds for nuclear aid________________________
48
Foreign Military Sales Act amendments__________________________
48
Prohibition on the sale of defense articles to developed countries--
48
Interest rates for credit sales________________________________
48
Reduction of reserve guaranty______________________________
48
Adjustment of the reserve guaranty fund_________ ___________
48
Maximum repayment period of guaranteed private loans _ _ __ _ _ _
48
Congressional approval of military sales _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Foreign military credit sales and aggregate ceiling _ _ _ _ _ _ _ _ _ _ _ _ _
49
Latin American and African ceilings -------------------------
49
Human rights and political prisoners_____________________________
49
Gorgas Memorial Institute___________ _ __________ _____-_
50
International Commission of Control and Supervision (ICCS) _ _ _ _ _ _ _
50
Policy on assistance to Africa___________________________________
50
Policy on the independence of Angola, Mozambique, and Guinea-
Bissau ----------------------------------------------------50
Conventional weapons transfer__________________________________ 51.
Caribbean Development Bank__________________________________ 51
Assistance to Portugal and its former colonies_____________________ 51
Integration of women------------------------------------------ 51
Policy with respect to countries most seriously affected by food short-
ages ------------------------------------------------------- 52
Limitation on assistance for India ------------------------------- 52
Exchanges of raw materials_,____________________________________ 52
Countries in default____________________________________________ 53
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93D CONGRESS j HOUSE OF REPRESENTATIVES I REPORT
2d Session f No. 93-1610
FOREIGN ASSISTANCE ACT OF 1974
Mr. MORGAN, from the committee of conference,
submitted the following
The committee of conference on the disagreeing votes of the two
Houses on the amendment of the House to the bill (S. 3394) to amend
the Foreign Assistance Act of 1961, and for other purposes, having
met, after full and free conference, have agreed to recommend and do
recommend to their respective Houses as follows :
That the Senate recede from the its disagreement to the amendment
of the House and agree to the same with an amendment as follows :
In lieu of the matter proposed to be inserted by the House amend-
ment insert the following :
That this Act may be cited as the "Foreign Assistance Act of 1974".
FOOD AND NUTRITION
SEc. 2. Section 103 of the Foreign Assistance Act of 1961 is
amended-
(1) by inserting the subsection designation "(a)" immediately
before "In";
(2) by striking out "$291,000,000 for each of the fiscal years
1974 and 1975" and inserting in lieu thereof "$291,000,000 for the
fiscal year 1974, and $500,000,000 for the fiscal year 1975"; and
(3) by adding at the end thereof the following:
"(b) The Congress finds that, due to rising world food, fertilizer,
and petroleum costs, human. suffering and deprivation are growing in
the poorest and most slowly developing countries. The greatest poten-
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tial for significantly expanding world food production at relatively
low cost lies in increasing the productivity of small farmers who con-
stitute a majority of the nearly one billion people living in those
countries. Increasing the emphasis on rural development and expanded
food production in the poorest nations of the developing world is a
matter of social justice as well as an important factor in slowing the
rate of inflation in the industrialized countries. In the allocation of
funds under this section, special attention should be given to increasing
agricultural production in the countries with per capita incomes under
$300 a year and which are the most severely affected by sharp increases
in worldwide commodity prices."
CEILING ON FERTILIZERS TO SOUTH VIETNAM
3 (a) None of the moneys made available under the Foreign
Assistance Act of 1961 or the Foreign Assistance Act of 1974 may be
used, beginning on the date of enactment of this section, during fiscal
year 1975 to procure agricultural fertilizers for, or to provide such
fertilizers to, South Vietnam.
(i5) During each fiscal year after fiscal year 1975; of the total amount
obligated or expended for such fiscal year under the Foreign Assistance
Act of 1961 to procure agricultiurah-fertilizers for, or to provide such
fertilizers to, foreign countries, not more than one-third of such
amount may be obligated or expended to procure such fertilizers for,
or provide such fertilizers to, South Vietnam.
Szc. 4. The Foreign Assistance Act of 1961 is amended as follows :
(1) In section 104, strike out "$145,000,000 for each of the fiscal
years 1974 and 1975" and insert in lieu thereof "$145,000,000 for
the fiscal year 1974, and $165,000,000 for the fiscal year 1975".
(2) In section 292, strike out "$130,000,000" and insert in lieu
thereof "$150,000,000".
EDUCATION AND FIUMAN RESOURCES DEVELOPMENT
SEC. 5. Section 105 of the Foreign Assistance Act of 1961 is amended
by striking out "$90,000,000 for each of the fiscal years 1974 and 1975"
and inserting in lieu thereof $90,000,000 for the fiscal year 1974, and
$92,000,000 for the fiscal year 1975".
Sic. 6. Section 203 of the Foreign Assistance Act of 1961 is amended
by adding at the end thereof the following:
"On and after July 1, 1975, none of the dollar receipts paid during
any fiscal year from loans made pursuant to this part or from loans
made under predecessor foreign assistance legislation are authorized
to be made available during any fiscal year for use for purposes of
making loans under chapter 1 of this part. All such receipts shall be
deposited in the Treasury as miscellaneous receipts."
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HOUSING GUARANTIES
Si;?c. 7. The Foreign Assistance Act of 1961 is amended as follows:
(1) In section 221, strike out "$305,000,000" in insert in lieu
thereof "$355,000,000".
(2) In section 223(1), strike out "June 30, 1975" and insert in
lieu thereof "June 30, 1976".
AGRICULTURAL CREDIT PROGRAMS
SEc. 8. (a) Title III of chapter 2 of part I of the Foreign Assistance
Act of 1961 is amended-
(1) by striking out the title heading and inserting in lieu
thereof the following:
"TITLE III-DOUSING AND OTHER CREDIT GUARANTY
PROGRAMS";
(2) by inserting immediately after section 222 the following
new section:
"SEc. ?292A. Agricultural and Productive Credit and Self-Help
Community Development Programs.-(a) It is the sense of the Con-
gress that in order to stimulate the participation of the private sector
in the economic development of less-developed countries in Latin
America, the authority conferred by this section should be used to
establish pilot programs in not more than five Latin American coun-
tries to encourage private banks, credit institutions, similar private
lending organizations, cooperatives, and private nonprofit develop-
ment organizations to make loans on reasonable terms to organized
groups and individuals residing in a community for the purpose of
enabling such groups and individuals to carry out agricultural credit
and self-help community development projects for which they are un-
able to obtain financial assistance on reasonable terms. Agricultural
credit and assistance for self-help community development projects
should include, but not be limited to, material and such projects as
wells, pumps, farm machinery, improved seed, fertilizer, pesticides,
vocational training, food industry development, nutrition projects,
improved breeding stock for farm animals, sanitation facilities, and
looms and other handicraft aids.
"(b) To carry out the purposes of subsection (a), the agency pri-
marily responsible for administering part I is authorized to issue guar-
anties, on such terms and conditions as it shall determine, to private
lending institutions, cooperatives, and private nonprofit development
organizations in not more than five Latin American countries assuring
against loss of not to exceed 50 per centum of the portfolio o f such
loans made by any lender to organized groups or individuals residing
in a community to enable such groups or individuals to carry out
agricultural credit and self-help community development projects for
Which, they are unable to obtain financial assistance on reasonable
terms. In no event shall the liability Of the United States exceed 75
per centum of any one loan.
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"(c) The total face amount of guaranties issued under this section
outsanding at any one time shall not exceed $15,000,000. Not more
than 10 per centum of such sum shall be provided for any one institu-_
tion, cooperative; or organization.
"(d) The Inter-American Foundation shall be consulted in develop-
ing criteria for making loans eligible for guaranty coverage in'Latin
America under this section.
" (e) Not to exceed $3,000,000 of the guaranty reserve established
under section 22.3(b) shall be available to make such payments as may
be necessary to discharge liabilities .under guaranties issued under this
section or any guaranties previously issued under section 040 of this
Act.
"(f) Funds held by the Overseas Private Investment Corporation
pursuant to section 236 may be available for meeting necessary admin-
istrative and operating expenses for carrying out the provisions of this
section through June 30, 1976.
"(g) The Overseas Private Investment Corporation shall, upon
enactment of this subsection, transfer to the agency primarily respon-
sible for administering part I all obligations, assets, and related rights
and responsibilities arising out of, or related to the predecessor pro-
gram provided for in section 240 of this Act.
" (h) The authority of this section shall continue until December 31,
1977.
"(i) Notwithstanding the limitation in subsection (c) of this section,
foreign currencies owned by the United States and determined by the
Secretary of the Treasury to. be excess to the needs of the United States
may be utilized to carry out the purposes. of this section, including the
discharge of liabilities under this subsection. The authority conferred
by this subsection shall be in addition to authority conferred by any
other provision of law to implement guaranty programs utilizing
excess local -currency.
The President shall, on or before January 15, 1976, make a
detailed report to the Congress on the results of the program estab-
lished under this section, together with such recommendations as he
may deem appropriate.":
(3) by striking out "section 201 or section 2922" in section 223
(a) and inserting "section 221, 000, or 022A" in lieu thereof;
(4) by striking out "this title" in section 003 (b) and inserting
"section 221 and section 222" in lieu thereof; and
(5) by striking out "section 9221 or section 222" in section 223
(d) and inserting "section 201, 222, 222A, or previously under
section 040 of this Act" in lieu thereof.
(b) Title IV of chapter 2 of part I of the Foreign Assistance Act
of 1961 is amended by striking out section: 240.
INTERNATIONAL ORGANIZATIONS AND PROGRAMS
SEc. 9. (a) Section 302 of the Foreign Assistance Act of 1961 is
amended-
(1) by striking out "for the fiscal year 1975, $150,000,000" in
subsection (a) and inserting in lieu thereof "for the fiscal year
1975, $165,000,000"; and
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(2) by adding at the end thereof the following new subsections:
"(g) Of the funds made available to carry out this chapter for fiscal
year 1975, in addition to any other such funds to be made available for
contributions to the International Atomic Energy Agency, not less
than $500,000 shall be made available to such Agency as technical
assistance in kind. However, a reasonable amount of funds authorized
under this section shall be made available in fiscal year 1975 to
strengthen international procedures which, are designed to prevent the
unauthorized dissemination or use of nuclear materials. The President
shall, report to the Congress not later than July 1, 1975, concerning ac-
tions taken by the United States to strengthen the procedures described
under the preceding sentence.
"(h) Congress directs that no funds should be obligated or ex-
pended, directly or indirectly, to support the United Nations Educa-
tional, Scientific, and Cultural Organization until the President certi-
fies to the Congress that such Organization (1) has adopted policies
which are fully consistent with its educational, scientific, and cultural
objectives, and (0) has taken concrete steps to correct its recent actions
of a primarily political character."
MILITARY ASSISTANCE AUTHORIZATIONS
SEC. 10. Section 504(a) of the Foreign Assistance Act of 1961 is
amended-
(1) by striking out "$512,500,000 for the fiscal year 1974" and
inserting in lieu thereof "$600,000,000 for the fiscal year 1975";
and
(2) by striking out "(other than training in the United
States) " and inserting in lieu thereof "(other than (1) training
in, the United States, or (2) for Western Hemisphere countries,
training in the United States or in the Canal Zone) ".
Sic. 11. Section 506(a) of the Foreign Assistance Act of 1961 is
amended-
(1) by striking out "the fiscal year 1974" in each place it appears
and inserting in lieu thereof "the fiscal year 1975" in each such
place; and
(2) by striking out "$250,000,000" and inserting in lieu thereof
"$150,000,000".
MILITARY ASSISTANCE AUTHORIZATIONS FOR SOUTH VIETNAM
SEC. 10. Section 513 of the Foreign Assistance Act of 1961 is
amended as follows
(1) Strike out "Thailand and Laos" in the caption and insert
in lieu thereof "Thailand and Laos, and South Vietnam".
(2) At the end thereof add the following new subsection:
"(c) After June 30, 1976, no military assistance shall be furnished
by the United States to South Vietnam directly or through any other
foreign country unless that assistance is authorized under this Act
or the Foreign Military Sales Act."
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EXCESS DEFENSE ARTICLES
S.Fc. 13. (a) Section 8 of the Act entitled "An Act to amend the
Foreign Military Sales Act, and for other purposes", approved Jan-
uary 12, 1971 (22 U.S.C. 2321b), is amended-
(1) by striking out "$150,000,000" in subsection (b) and insert-
ing "$100,000,000" in lieu thereof; and
(2) by inserting immediately before the period in subsection
(c) the f ollow~'ing : "; except that for any excess defense article
such term shall not include a value for any such article which is
less than 331/3 percent of the amount the United States paid for
such article when the United States acquired it".
EXCESS DEFENSE ARTICLE VALUE IN ANNUAL REPORT
SEC. 14. Section 634(d) of the Foreign Assistance Act o f 1961 is
amended by striking out "including economic assistance and military
grants and sales" and inserting in lieu thereof the following: "includ-
ing economic assistance, military grants (and including for any such
grant of any excess defense article, the value of such article expressed
in terms of its acquisition cost to the United States), and military
sales".
STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES
SEC. 15. Chapter 2 of part II of the Foreign Assistance Act of 1961
is amended by adding at the end thereof the following new section:
"SEC. 514. Stockpiling of Defense Articles for Foreign Coun-
tries.-(a) Notwithstanding any other provision of law, no funds,
other than funds made available under this chapter or section 401 (a)
of Public Law 89-367 (80 Stat. 37), or any subsequent corresponding
legislation, may be obligated for the purpose of stockpiling any de-
fense article or war reserve material, including the acquisition, stor-
age, or maintenance of any war reserve equipment, secondary items, or
munitions, if such article or material is set aside, reserved, or in any
way earmarked or intended for future use by any foreign country
under this Act or such. section.
" (b) The cost of any such article or material set aside, reserved,
or in any way earmarked or intended by the Department of Defense
for future use by, for, or on behalf of the country referred to in
section 401(a) (1) of Public Law 89-367 (80 Stat. 37) shall be charged
against the limitation specified in such section or any subsequent
corresponding legislation, for the fiscal year in which such article or
material is set aside, reserved, or otherwise earmarked or intended;
and the cost of any such, article or material set aside, reserved or
in any way earmarked or intended for future use by, for, or on behalf
of any other foreign country shall be charged against funds author-
ized under this chapter for the fiscal year in which such article or
material is set aside, reserved, or otherwise earmarked. No such article
or material may be made available to or for use by any foreign country
unless such article or material has been charged against the limitation
specified in such section, or any subsequent corresponding legislation,
or against funds authorized under this chapter, as appropriate."
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MILITARY ASSISTANCE ADVISORY GROUPS AND MISSIONS
SEc. 16. Chapter 2 of part II of the Foreign Assistance Act of
1961 is further amended by adding at the end thereof the following
new section:
"SEc. 515. Military Assistance Advisory Groups and Missions.-
I; ffective July 1, 1976, an amount equal to each sum expended under
any provision of law, other than section 504 of this Act, with respect to
any military assistance advisory group, military mission, or other
organization of the United States performing activities similar to
such group or mission, shall be deducted from the, funds made avail-
able under such section 504, and (1) 'if reimbursement Of such amount
is requested by the agency of the United States Government making
the expenditure, reimbursed to that agency, or (2) if no such reim-
bursement is requested, deposited in the Treasury as miscellaneous
receipts."
REVIEW OF MILITARY ASSISTANCE PROGRAMS
SEc. 17. (a) It is the sense of Congress that the policies and purposes
of the military assistance program conducted under chapter 2 of part
II of the Foreign Assistance Act of 1961 should be reexamined in light
of changes in world conditions and the economic position of the United
States in relation to countries receiving such assistance; and that the
program, except for military education and training activities, should
be reduced and terminated as rapidly as feasible consistent with the
security and foreign policy requirements of the United States.
(b) In order to give effect to the sense of Congress expressed in sub-
section (a) the President is directed to submit to the first session of
the 94th Congress a detailed plan for the reduction and eventual
elimination of the present military assistance program.
SEc.18. Section 532 of the Foreign Assistance Act of 1961 is amended
by striking out "for the fiscal year 1974 not to exceed $125,000,000, of
which not less than $50,000,000 shall be available solely for Israel" and
inserting in lieu thereof "for the fiscal year 1975 not to exceed $660,-
000,000".
TRANSFER BETWEEN ACCOUNTS
SEC. 19. (a) Section 610 of the Foreign Assistance Act of 1961 is
amended as follows :
(1) In subsection (a), immediately after "any other provision
of this Act", insert "(except funds made available under chapter
2 of part II of this Act)"
(2) Add at the end thereof the following new subsection.-
44 (c) Any funds which the President has notified Congress pursuant
to section 653 that he intends to provide in military assistance to any
country may be transferred to, and consolidated with, any other funds
he has notified Congress pursuant to such section that he intends to
provide to that country for development assistance, purposes."
(b) Section 614 of such Act is amended by adding at the end of sub-
section (a) the following: "The authority of this section shall not be
used to waive the limitations on transfers contained in section 610(a)
of this Act.".
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SEc. 20. Chapter 1 of part I of the Foreign Assistance Act of 1961 is
amended by adding at the end thereof the following new section:
"Sic. 115. Prohibiting Use of Funds for Certain Countries.-(a)
None of the funds made available to carry out this chapter may be
used in any fiscal year for any country to which assistance is furnished
in such fiscal year under chapter 4 of part II (security supporting
assistance), part V (assistance for relief and reconstruction of South
Vietnam, Cambodia, and Laos), part VI (assistance for Middle
East peace) of this Act, or section 36 of the Foreign Assistance Act of
1974-
" (b) The prohibition contained in subsection (a) may not be waived
under section 614(a) of this Act or under any other provision of law.
"(c) This section shall not apply to funds made available under
section 104 for purposes of title X of chapter : of this part (programs
relating to population growth), funds made available for humani-
tarian assistance through international organizations, and funds obli-
gated for regional programs."
SEc. 21. Section 653 of the Foreign Assistance Act of 1961 is
amended-
(1) by striking out all after the period at the end of the first
sentence of subsection (a); and
(2) by redesignating subsection (b) as subsection (c) and by
inserting immediately after subsection (a) the following new
subsection.,
"(b) Notwithstanding any other provision of law, no military grant
assistance, security supporting assistance, assistance under chapter 1
of part I of this Act, or assistance under part V of this Act, may be
furnished to any country or international organization in any fiscal
year, if such assistance exceeds by 10 percent or more the amount of
such military grant assistance, security supporting assistance, assist-
ance under chapter 1 of part I of this Act, or assistance under part V
o f this Act, as the case may be, set forth in the report required by
subsection (a) of this section, unless-
"(1) the President reports to the Congress, at least ten days
prior to the date on which such excess funds are provided, the
country or organization to be provided the excess funds, the
amount and category of the excess funds, and the justification
for providing the excess funds; and
"(2) in the case of military grant assistance or security sup-
porting assistance, the President includes in the report under
paragraph (1) his determination that it is in the security interest
of the United States to provide the excess funds.
This subsection shall not apply if the excess funds provided in any
fiscal year to any country or international organization for any cate-
gory of assistance are less than $1,000,000."
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SUSPENSION OF MILITARY ASSISTANCE TO TURKEY
SEC. 22. Section 620 of the Foreign Assistance Act of 1961 is
amended by adding at the end thereof the following new subsection:
"(x) All military assistance, all sales of defense articles and serv-
ices (whother for cash or by credit, guaranty, or any other means),
and all licenses with respect to the transportation of arms, ammuni-
tions, and implements of war (including technical data relating there-
to) to the Government of Turkey, shall be suspended on the date of
enactment o f this subsection unless and until the President determines
and certifies to the Congress that the Government of Turkey is in
compliance with. the Foreign Assistance Act of 1961, the Foreign Mili-
tary Sales Act, and any agreement entered into under such Acts, and
that substantial progress toward agreement has been made regarding
military forces in Cyprus: Provided, That the President is authorized
to suspend the provisions o f this section and such acts if he deter-
mines that such suspension will further negotiations for a peaceful
solution of the Cyprus conflict. Any such suspension shall be effective
only until February 5.1975, and only if, during that time, Turkey shall
observe the ceasefire and shall neither increase its forces on Cyprus
nor transfer to Cyprus any U.S. supplied implements of war."
PROHIBITIONS ON AID TO NATIONS TRADING WITH NORTH VIETNAM
SEC. 03. Section 620 of the Foreign Assistance Act of 1961 is
amended by inserting before the period in subsection (n) the follow-
ing : ", unless the President determines that such loans, credits, guar-
anties, grants, other assistance, or sales are in the national interest of
the United States".
ASSISTANCE TO GREECE
SEC. 24. Section 620(v) of the Foreign Assistance Act of 1961 is
repealed.
LIMITATION UPON ASSISTANCE TO OR FOR CHILE
SEC. 25. Notwithstanding any other. Provision of law, the total
amount of assistance that may be made available for Chile under the
Foreign Assistance Act of 1961, and the Foreign Military Sales Act
during fiscal year 1975, may not exceed $25,000,000, none of which
may be made available for the purpose of providing military assist-
ance (including security supporting assistance, sales, credit sales, or
guaranties or the furnishing by any means of excess defense articles
or items from stockpiles of the Department of Defense).
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LIMITATION ON MILITARY ASSISTANCE AND EXCESS DEFENSE ARTICLES
TO KOREA
S ,cc. 26. (a) The aggregate amount of-
(1) funds obligated or reserved for military assistance, includ-
ing supply operations, under chapter 2 of part II of the Foreign
Assistance Act of 1961;
(0) the acquisition cost of excess defense articles, if any, or-
dered under part II of the Foreign Assistance Act of 1961 and not
charged against appropriations for military assistance;
(3) credits, including participations in credits, extended pursu-
ant to section 23 of the Foreign Military Sales Aet; and
(4) the principal amount of loans guaranteed pursuant to sec-
tion 24(a) of the Foreign Military Sales Act;
with respect to South Korea shall not exceed 814.5,000,000 for fiscal year
1975 until the President submits a report to the Congress after the date
of enactment of this Act stating that the government of South Korea
is making substantial progress in the observance of internationally rec-
ognized standards of human rights.
(b) After the submission of the report under subsection (a), the ag-
gregate amount described in paragraphs (1), (2), (3), and (4) of such
subsection with respect to South Korea shall not exceed $165,000,000
for fiscal year 1975.
(c) The provisions of section 506 and section 614 of the Foreign
Assistance Act of 1961, or of any other law, may not be used to exceed
the limitation under subsection (a) or (b).
Ss'c. 27. The total amount of assistance provided under the Foreign
Assistance Act of 1961 and of credit sales made or guaranteed under
the Foreign Military Sales Act for India shall not exceed $50,000.000
in fiscal year 1975.
.8'EC. 28. (a) Section 639 of the Foreign Assistance Act of 1961,
dealing with famine or disaster relief, is amended to read as follows:
"Src. 639. Famine or Disaster Relief. Notwithstanding any other
provision of this or any other Act, the President may provide famine
or disaster relief assistance to any foreign country on such terms and
conditions as he may determine. For fiscal year 1975 there is author-
ized to be appropriated not to exceed $40,000.000, to provide such as-
s/stance. The President shall submit quarterly reports during such
fiscal year to the Committee on Foreign Relations and the Committee
on Appropriations of the Senate and to the Speaker of the House of
Representatives on the programing and obligation of funds under this
section."
(b) Of the funds appropriated to carry out section 639 of the For-
eign Assistance Act of 1961, during fiscal year 1975 not less than
$25.000,000 shall be made available to Cyprus for the purposes of
such section 639.
(c) Section 451 of the Foreign Assistance Act of 1961, dealing with
the contingency fund, is amended to read as follows:
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"SEC. .451'. Contingency Fund.- (a) There is authorized to be appro-
priated to the President for the fiscal year 1975 not to exceed $5,-
000,000, to provide assistance authorized by this part or by section
639 for any emergency purpose only in accordance with the pro-
visions applicable to the furnishing of such assistance.
"(b) The President shall submit quarterly reports to the Committee
on Foreign. Relations and the Committee on Appropriations of the
Senate and the Speaker of the House of Representatives on the pro-
graming and obligation of funds under this section.
"(c) No part of this fund shall be used to pay for any giftfs to
any officials of any foreign government made heretofore or hereafter.".
SEe. 29. (a) Chapter 3 of part III of the Foreign Assistance Act
of 1961 is amended by adding at the end thereof the following new
section:
"SEc. 659. Access to Certain Military Bases A broad. None of funds
authorized to be appropriated for foreign assistance (including for-
eign military sales, credit sales, and guaranties) under this Act may
be used to provide any kind of assistance to any foreign country in
which a military base is located if-
"(1) such base was constructed or is being maintained or op-
erated with funds furnished by the United States; and
"(2) personnel of the United States carry out military opera-
tions from such. base;
unless and until the President has determined that the government
of such country has, consistent with security authorized access, on
a regular basis, to bona fide news media correspondents of the United
States to such military base."
(b) Section 29 of the Foreign Assistance Act of 1973 is repealed.
SEC. 30. Chapter 3 of part III of the Foreign Assistance Act of
1961, as amended by section 23(a) of this Act, is further amended by
adding at the end thereof the following new section:
"Sr,,c. 660. Prohibiting Police Training.-(a) On and after July 1,
1975, none of the funds made available to carry out this Act, and
none of the local currencies generated under this Act, shall be used to
provide training or advice, or provide any financial support, for
police, prisons, or other law enforcement forces for any foreign gov-
ernment or any program of internal intelligence or surveillance on
behalf of any foreign government within the United States or abroad.
"(b) Subsection (a,) of this section shall not apply-
"(1) with respect to assistance rendered under section 515(e)
of the Omnibus Crime Control and Safe Streets Act of 1968, with
respect to any authority of the Drug Enforcement Administration
or the Federal Bureau of Investigation which relates to crimes of
the nature which are unlawful under the laws of the United
States, or with respect to assistance authorized under section
482 of this Act; or
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"(2) to any contract entered into prior to the date of enactment
of this section with any person, organization, or agency of the
United States Government to provide personnel to conduct, or
assist in conducting, any such program.
Notwithstanding clause (2), subsection (a) shall apply to any re-
newal or extension of any contract referred to in such paragraph
entered into on or after such date of enactment."
(b) Section 112 of the Foreign Assistance Act of 1961 is repealed.
REIMBURSABLE DEVELOPMENT PROGRAMS
SEC. 32. The Foreign Assistance Act of 1961 is amended by adding
at the end of part III the following new section:
"SEC. 661. Reimbursable Development Programs.-The President
is authorized to use up to $1,000,000 of the funds made available for
the purposes of this Act in each of the fiscal years 1975 and 1976 to
work with friendly countries, especially those in which United States
development programs have been concluded or those not receiving
assistance under part I of this Act, in (1) facilitating open and fair
access to natural resources of interest to the United States and (2)
stimrvulation of reimbursable aid programs consistent with part I of
this Act. Any funds used for purposes of this section may be used
notwithstanding any other provision of this Act."
INTELLIGENCE ACTIVITIES AND EXCHANGES OF MATERIALS
SEC. 32. The Foreign Assistance Act of 1961 is amended by adding
at the end of part III the following new sections :
`SEC. 662. Limitation on Intelligence Activities.-(a) No funds ap
propriated under the authority of this or any other Act may be
expended by or on behalf of the Central Intelligence Agency for
operations in foreign countries, other than activities intended solely
for obtaining necessary intelligence, unless and until the President
finds that each such operation is important to the national security
of the United States and reports, in a timely fashion, a description
and scope of such operation to the appropriate committees of the Con-
gress, including the Committee on Foreign Relations of the United
States Senate and the Committee on Foreign Affairs of the United
States House of Representatives.
"(b) The provisions of subsection (a) of this section shall not apply
during military operations initiated by the United States under a
declaration of war approved by the Congress or an exercise of powers
by the President under the War Powers Resolution.
64SEc. 663. Exchanges of Certain Materials.-(a) Notwithstand-
ing any other provision of law, whenever the President determines
it is in the United States national interest, he shall furnish assistance
under this Act or shall furnish defense articles or services under the
Foreign Military Sales Act pursuant to an agreement with the recipient
of such assistance, articles, or services which provides that such re-
cipient may only obtain such assistance, articles, or services in ex-
change for any necessary or strategic raw material controlled by such
recipient. For the purposes of this section, the term `necessary or
strategic raw material' includes petroleum, other fossil fuels, metals,
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minerals, or any other natural substance which the President deter-
mines is in. short supply in the United States.
"(b) The President shall allocate any necessary or strategic raw
material transferred to the United States under this section to any
appropriate agency of the United States Government for stockpiling,
sale, transfer, disposal, or any other purpose authorized by law.
"(c) Funds received from any disposal of materials under subsection
(b) shall be deposited as miscellaneous receipts in the United States
Treasury."'
WAIVER OF PROHIBITION AGAINST ASSISTANCE TO COUNTRIES ENGAGING
IN CERTAIN TRADE
SF, C. 33. Chapter 3 of part III of the Foreign Asistance Act of 1961
is amended by adding at the end thereof the following new section;
"Ss?c. 664. Waiver of Prohibition Against Assistance to Coun-
tries Engaging in Certain Trade. Any provision of this Act which
prohibits assistance to a country because that country is engaging in
trade with a designated country, or because that country permits ships
or aircraft under its registry to transport any equipment, materials, or
commodities to or from such designated country, may be waived by
the President if he determines that such waiver is in the national
interest and reports such determination to the Congress."
SEC. 34. (a) The Congress finds that the cease-fire provided for in
the Paris Agreement on Ending the War and Restoring Peace in
Vietnaan has not been observed by any of the Vietnamese parties to
the conflict. Military operations of an offensive and defensive nature
continue throughout South Vietnam. In Cambodia, the civil war
between insurgent forces and the Lon NoZ government has intensified,
resulting in widespread human suffering and the virtual destruction
of the Cambodian economy.
(b) The Congress further finds that continuation of the military
struggles in South Vietnam and Cambodia are not in the interest of
the parties directly engaged in the conflicts, the people of Indochina
or world peace. In order to lessen the human suffering in Indochina
and to bring about a genuine peace there, the Congress urges and
requests the President and the Secretary of State to undertake the
following measures :
(1) to initiate negotiations with representatives of the Soviet
Union and the People's Republic of China to arrange a mutually
agreed-upon and rapid de-escalation of military assistance on the
part 6f the three principal suppliers of arms and material to all
Vietnamese and Cambodian parties engaged in conflict;
(2) to urge by all available means that the Government of the
Khmer Republic enter in negotiations with representatives of the
Khmer Government of National Union for the purpose of ar-
ranging an immediate cease-fire and political settlement of the
conflict; and to use all available means to establish. contact with
the Khnner Government of National Union, and to urge them to
participate in such negotiations. The United States should urge
all Cambodian parties to use the good offices of the United Nations
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or a respected third country for the purpose of bringing an end
to hostilities and reaching a political settlement;
(3) to utilize any public or private forum to negotiate directly
with, representatives of the Democratic Republic of Vietnam, the
Provisional Revolutionary Government, and the Republic of Viet-
nam to seek a new cease-fire in Vietnam and full compliance with
the provisions of the Paris Agreement on Ending the War and
restoring Peace in Vietnam, including a full accounting for
Americans missing in Indochina;
(4) to reconvene the Paris Conference to seek full implementa-
tion of the provisions of the Agreement of January 27, 1973, on
the part of all Vietnamese parties to the conflict; and
(5) to maintain regular and full consultation with the appro-
priate committees of the Congress and report to the Congress and
the Nation at regular intervals on the progress toward obtaining
a total cessation of hostilities in Indochina and a mutual reduction
of military assistance to that area.
S,!'c. 35. (a) Congress calls upon the President and Secretary of
State to take the following actions designed to maximize the benefit
of United States economic assistance_'_'
(1) to organize a. consortium to include multilateral financial
institutions to help plan for Indochina reconstruction and de-
velopment; to coordinate multilateral and bilateral contributions
to the area's economic recovery; and to provide continuing advice
to the recipient nations on the use of their own and outside
resources;
(2) to develop, in coordination with the recipient governments,
other donors, and the m1'iltilateral financial institutions, a com-
prehensive plan for Indochina reconstruction and economic
development;
(3) to develop country-by-country reconstruction and develop-
ment plans, including detailed plans for the development of
individual economic sectors, that can be used to identify and co-
ordinate specific economic development projects and programs
and to. direct United States resources into areas of maximum
benefits,
(4) to shift the emphasis of United States aid programs from
consumption-oriented expenditures to economic development;
(5) to identify possible structural economic reforms in areas
such as taxation, exchange rates, savings mechanisms, internal
pricing, income distribution, land tenure, budgetary allocations
and corruption, which should be undertaken if Indochinese eco-
nomic development is to progress;
(6) to include in Indochina economic planning and programing
specific performance criteria and standards which will enable the
Congress and the executive branch to judge the adequacy of the
recipient's efforts and to determine whether, and what amounts
of, continued United States funding is justified; and
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(7) to provide humanitarian assistance to Indochina wherever
practicable under the auspices of and by the United Nations and
its specialized agencies, other international organizations or ar-
rangemients, multilateral institutions, and private voluntary agen-
cies with a minimum presence and activity of United States Gov-
ernment personnel.
(b) This section shall not be construed to imply continuation of
a United States financial commitment beyond the authorization pro-
vided for is this Act or amendments made by this Act.
SEC. 36. (a) There are authorized to be appropriated to the Presi-
dent to furnish assistance for the relief and reconstruction of South
Vietnam, Cambodia, and Laos, in addition to funds otherwise avail-
able for such purposes, for the fiscal year 1975 not to exceed $617,000,-
000. Of the amount appropriated for flscal year 1975-
(1) $411.9,900,000 shall be available only for the relief and recon-
struction of South Vietnam in accordance with section 38 of this
Act;
(2) $100,000,000 shall be available only for the relief and re-
construction of Cambodia in accordance with section 39 of this
Act;
(3) $40,000,000 shall be available only for the relief and recon-
struction of Laos in accordance with section 40 o f this Act;
(4) $4,100,000 shall be available only for the regional develop-
ment program;
(5) $16,000,000 shall be available only for support costs for
the agency primarily responsible for carrying out this part; and
(6) $7,000,000 shall be available only for humanitarian assist-
ance through international organizations.
Such amounts are authorized to remain. available until expended.
(b) The authority of section 610(a) of the Foreign Assistance Act
of 1961 may not be used in fiscal year 1975 to transfer funds made
available for any provision of such Act of 1961 into funds made avail-
able for part V of such Act for South Vietnam, Cambodia, or Laos
under this section.
(c) No assistance may be provided to South Vietnam, Cambodia, or
Laos in fiscal year 1975 under part I (including chapter 4 of part II)
of the Foreign Assistance Act of .1961. This prohibition may not be
waived under section 614(a) of such Act of 1961 or any other pro-
vision Of law.
(cl) Notwithstanding subsection (b) of this section, funds made
available under any provision of this or any other law for the purpose
of providing military assistance for South Vietnam, Laos, or Cambo-
dia during fiscal year 1975 may be transferred to, and consolidated
with, any funds made available to that country for war relief, recon-
struction, or general economic development, if such transfer does not
result in a greater amount than is allocated for such country under
paragraph (1), (2),or (3) of subsection (a).
(e) To the extent not inconsistent with the provisions of this Act, all
prohibitions, restrictions, limitations, and authorities contained in the
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Foreign Assistance Act of 1961 -which. are applicable to part V of such,
Act of 1961 shall apply with respect to the assistance authorized by
this section.
ASSISTANCE. TO SOUTH VIETNAMESE CHILDREN
See. 37. (a) It is the sense. of the Congress that inadequate provision.
has been made (1) for the establishment, expansion and improvement
of day care centers, orphanages, hostels, school feeding programs,
health and welfare programs, and training related to these programs
'hich are designed for the benefit of South Vietnamese children, dis-
advantaged by hostilities in Vietnam, or conditions related to those
hostilities, and (2) for the adoption by United States citizens of South
Vietnamese children who are orphaned or abandoned, or whose parents
or sole surviving parent, as the case may be, has irrevocably relin-
quished all parental rights, particularly children fathered by United
States citizens.
(b) The President is, therefore,, authorized to provide assistance, on
terms and conditions he considers appropriate, for the purposes de-
scribed in clauses (1) and (2) of subsection (a) of this section. Of the
funds appropriated pursuant to section 36(a) of this Act, $10,000,000,
or its equivalent in local currency, shall be available until expended
solely to carry out this section. Not more than 10 per centum of the
funds made available to carry out this section may be expended for the
purposes referred to in clause (2) of subsection (a). Assistance pro-
vided under this section shall be furnished, to the maximum extent
practicable, under the auspices of and by international agencies or pri-
vate voluntary agencies.
LIMITATIONS TVITH RESPECT TO SOUTH VIETNAM
Ss'c. 38. (a) The $449,900,000 made available in accordance with
section 36 (a) (1) of this Act shall be allocated as follows :
(1) $90,000,000 for humanitarian assistance, of which there
shall be available-
(A) $70,000,000 for refugee relief;
(B) $10,000,000 for child care; and
(C) $10,000,000 for health care;
(2) $154,500,000 for agricultural assistance, of which there shall
be available-
(A) $85,000,000 for fertilizer;
(B) $12,000,000 for POL (for agriculture);
(C) $6,000,000 for insecticides and pesticides;
(D) $10,000,000 for agricultural machinery and equipment
(including spare parts);
(E) $3,500,000 for agricultural advisory services;
(F) $20,000,000 for rural credit;
(G) $10,000,000 for canal dredging;
(H) $4,000,000 for .ow-lift pumps;?and
(I) $4,000,000 for fish farm development;
(3) $139,800,000 for industrial development assistance of
which there shall be available-
(A) $124,000,000 for commodities;
(B) $10,000,000 for industrial credit; and
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(C) $5,800,000 for industrial advisory services (including
feasibility studies);
(4) $65,600,000 for miscellaneous assistance, of which there shall
be available-
(A) $47,900,000 for the service sector (including POL, ma-
chinery equipment, and spare parts) ; and
(B) $17,700,000 for technical services and operating ex-
penses.
(b) (1) No funds made available in accordance with section 36(a)
(1) may be transferred to, or consolidated with, the funds made avail-
able for military assistance, nor may more than 20 per centum of the
funds made available under paragraph (1), (2), (3), or (4) of sub-
section (a) of this section be transferred to, or consolidated with, the
funds made available under any other such paragraph.
(2) Whenever the President determines it to be necessary in carry-
ing out this section, any funds made available under any subparagraph
of paragraph (1), (2), (3), or (4) of subsection (a) of this section
may be transferred to, and consolidated with, the funds made available
under any other subparagraph of that same paragraph.
(3) The President shall fully inform the Speaker of the House of
Representatives and the Committee on Foreign Relations of the Senate
of each transfer he intends to make under paragraph (1) or (2) of this
subsection prior to making such transfer.
(c) No funds may be obligated for any of the purposes described
in subsection (a) of this section in, to, for, or on behalf of South
Vietnam in any fiscal .year beginning after June 30, 1975, unless such
funds have been specifically authorized by law enacted after the date
of enactment of this section. In no case. shall funds in any amount in
excess of the amount specifically authorized by law for any fiscal year
be obligated for any such purpose during such fiscal year.
(d) After the date of enactment of this section, whenever any re-
quest is made to. the Congress for the appropriation of funds for use
in, to, for, or on behalf of South Vietnam for any fiscal year the Presi-
dent shall furnish a written report to the Congress explaining the
purpose for which such funds are to be used in such Peal year.
(e) The President shall submit to the Congress within thirty days
after the end of each quarter of each fiscal year, beginning with the
fiscal year which begins July 1, 1974, a written report showing the
total amotwt of funds obligated in, to, for, or on behalf of South
Vietnam during the preceding quarter by the United States Govern-
ment, and shall include in such report a general breakdown of
the total amount obligated, describing the different purposes for
which such funds were obligated and the total amount obligated for
such purpose.
(f) (1) Effective six months after the date of enactment of this
section, the total number of civilian o fcers and employees, including
contract employees, of executive agencies of the United States Govern-
ment who are citizens of the United States and of members of the
Armed Forces of the United States present in South Vietnam shall not
at any one time exceed four thousand, not more than two thousand
five hundred of whom shall be members of such armed forces and
direct hire and contract employees of the Department of Defense.
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Effective one year after the date of. enactment of this section, such total
number shall not exceed at any one time three thousand, not more than
one thousand five hundred of whom shall be members of such armed
forces and direct hire and contract employees of the Department of
Defense.
(2) Effective six months after the date of enactment of this sec-
tion, the United States shall not, at any one time, pay in whole or
in part, directly or indirectly, the compensation or allowances Of more
than eight hundred individuals in South. Vietnam who are citizens
of countries other than South Vietnam or the United States. Ef-
fective one year after the date of enactment of this section, the total
number of individuals whose compensation or allowance is so paid
shall not exceed at any one time five hundred.
(3) For purposes of this subsection, "executive agency of the United
States Government" means any agency, department, board, wholly
or partly owned corporation, instrumentality, commission, or estab-
lishment within the executive branch of the United States Govern-
ment,
(4) This subsection shall not be construed to apply with respect
to any individual in South Vietnam who (A) is an employee or vol-
unteer worker of a voluntary private, nonprofit relief organization
or is an employee or volunteer worker of the International Commit-
tee of the Red Cross, and (B) engages only in activities providing hu-
manitarian assistance in South Vietnam.
(g) This section shall not be construed as a commitment by the
United States to South Vietnam for its defense.
SEC. 39. (a) Section 655 of the Foreign Assistance Act of 1961 is
amended as follows :
(1) by striking out "$341,000,000" in subsection (a) and in-
serting "$377,000,000" in lieu thereof.
(2) by striking out "1972" in subsection (a) and inserting "1975.
Of that sum, there shall be available no more than $000.000,000
for military assistance. In addition to such $377,000,000, defense
articles and services may be ordered under section 506 of this Act
f 9r Cambodia in an amount not to exceed $75,000,000 in fiscal
year 1975." in lieu thereof.
(3) by striking out "$3%1,000,000 in subsection (b) and insert-
ing "$377,000,000 in lieu thereof.
(4) by striking out "1972" in subsection (b) and inserting
1975" in lieu thereof.
(b) Section 656 of the Foreign Assistance Act of 1961 is amended
by adding at the end thereof the following sentence: "This section
shall not be construed to apply with respect to any individual in
Cambodia who (A) is an employee or volunteer worker of a voluntary
private, nonprofit relief organization or is an employee or volunteer
worker of the International C. om2mittee of the Red Cross, and (B)
engages only in activities providing humanitarian assistance in
Cambodia."
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(c) The $100,000,000 made available in. accordance with section
36 (a) (2) of this Act shall be allocated as follows.
(1) $20,000,000 for humanitarian assistance;
(2) $0,000,000 for commodity import assistance;
(3) $15,000,000 for multilateral stabilization assistance; and
(4) $0,000,000 for technical support and participant training.
(d) No funds made available in accordance with section 36(a) (2)
may be transferred to, or consolidated with, the funds allocated for
military assistance to Cambodia under section 655 (a) of the For-
eign Assistance Act of 1961, nor may more than 20 per centum of the
funds made available under any paragraph of subsection (c) of this
section be transferred to, or consolidated with, the funds made avail-
able under any other such paragraph.
(e) No funds may be obligated for any of the purposes described
in section 655(a) of the Foreign Assistance Act of 1961 in, to, for, or
on behalf of Cambodia in any fiscal year beginning after June 30,
1975, unless such funds have been specifically authorized by law en-
acted after the elate of enactment of this section. In no case shall
funds in any amount in excess. of the amount specifically authorized
by law for any fiscal year be obligated for any such purpose durin
such fiscal year.
(f) This section shall not be construed as a commitment by t,.
United States to Cambodia for its defense.
Scc. 40. (a) Notwithstanding any other provision o f law, no funw.
authorized to be appropriated by this or any other law may be obli
gated in any amount in excess of $70,000,000 during the fiscal yea
ending June 30, 1975, for the purpose of carrying out directly or ir-
directly any economic or military assistance, or any operation, proj-
ect, or program of any hind, or for providing any goods, supplies,
materials, equipment, services, personnel, or advisers in, to, for, or on
behalf of Laos. Of that amount, there shall be available-
(1) $30;000,000 for military assistance; and
(2) $./0,000,000 only for economic assistance, of which them
shall be available-
(A) $11,000,000 for humanitarian assistance;
(B) $6,500,000 for reconstruction and developmew
assistance,,
(C) $16,100,000 for stabilization assistance; and
(II) $6,400,000 for technical support.
(b) No funds made available under paragraph, (2) of subsection
(a) of this section may be transferred to, or consolidated with, the
funds made available under paragraph (1) of such subsection, nor
may more than 20 per, centurn of the funds made available under any
subparagraph of paragraph (2) be transferred to, or consolidated
with, the funds made available under any other such subparagraph.
(c) In computing the limitations on obligation authority under
subsection (a) of this section with respect to such, fiscal year, there
shall be included in the computation the value of any goods, supplies,
materials, equipment, services, personnel, or advisers provided, to,
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for, or on behalf of Laos in such fiscal year by gift, donation, loan,
lease or otherwise. For the purpose of this subsection, "value" means
the fair market value of any goods, supplies, materials, or equipment
provided to, for, or on behalf of Laos but in no case less than 331/3
per centum, of the amount the United States paid at the time such
goods, supplies, materials, or equipment were acquired by the United
States.
(d) No funds may be obligated for any of the purposes described
in subsection (a) of this section in, to, for, or on behalf of Laos in
any fiscal year beginning after June 30, 1975, unless such funds have
been specifically authorized by law enacted after the date of enact-
ment of this section. In no case shall funds in any amount in excess of
the amount specifically authorized by law for any fiscal year be obli-
gated for any such purpose during such fiscal year.
(c) After the (late of enactment o f this section, whenever any request
is made to the. Congress for the appropriation of funds for use in, to,
f or; or,onbehalf of Laos, for any fiscal year, the President shall furnish
a, written report to the Congress explaining the purpose for which
such funds are to be used in such fiscal year.
(/) The President shall submit to the Congress within thirty days
after the end of each quarter of each fiscal year beginning with the
fiscal year which begins July 1, 1974, a written report showing the
total amount of funds obligated in., to, for, or on behalf of Laos during
the preceding quarter by the United States Government and shall
iveh,sde in such report a general breakdown of the total amount obli-
gated, describing the different purposes for which such funds were
obligated and the total amount obligated for such purpose.
(g) This section shall not be construed as a commitment by the
United States to Laos for its defense.
POPULATION, NARCOTICS, INTERNATIONAL HUMANITARIAN AND REGIONAL
PROGRAMS
Src. 41. Part V of the Foreign Assitance Act of 1961 is amended
by adding at the end thereof the following new section;
806. Population, Narcotics, .International Humanitarian and
Regional Programs.-The provisions of sections 36(c), 38, 39, and 40
of the Foreign Assistance Act of 1974 shall not apply to: (1) funds
obligated for purposes of title X of chapter 2 of part I (programs
relating to population growth); (2) funds made available under sec-
tion. 482 (programs relating to narcotics control); (3) funds made
available for humanitarian assistance through international organiza-
tions; or (4) funds obligated for regional programs."
ASSISTANCE TO THE MIDDLE EAST
SEC. 42. The Foreign Assistance Act of 1961 is amended by adding
at the end thereof the following new part:
"PART VI
"Sec. 901. Statement of Policy.-The Congress recognizes that a
peaceful and lasting resolution of the divisive issues that have con-
tributed to tension and conflict between nations in the Middle East is
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essential to the security of the United States and the cause of world
peace. The Congress declares and finds that the United States can and
should play a constructive role in securing a just and durable peace
in the Middle East by facilitating increased understanding between
the Arab nations and Israel, and by assisting the nations in the area
in their efforts to achieve economic progress and political stability,
which are the essential foundations for a just and durable peace. It is
the sense of Congress that United States assistance programs in the
Middle East should be designated to promote mutual respect and secuu-
rity among the nations in the area and to foster a climate conducive
to increased economic development, thereby contributing to a convnvu-
nity of free, secure, and prospering nations in the Middle East.
"It is further the sense of Congress that none of the funds authorized
by this Act should be provided to any nation which denies its citizens
the right or opportunity to emigrate.
"SEC. 902. Allocations.-(a) Of the funds appropriated to carry
out chapter 2 of part II of this Act during the fiscal year 1975, not to
exceed $100,000,000 maybe made available for military assistance in
the Middle East.
"(b) Of the funds appropriated to carry out chapter 4 of part II
of this Act during the fiscal year 1975, not to exceed $652,000,000 may
be made available for security supporting assistance in the Middle
East.
"(c) Of the aggregate ceiling on credits and guaranties established
by section 31(b) of the Foreign Military Sales Act during the fiscal
year 1975, not to exceed $330,000,000 shall be available for countries in
the Middle East.
"Src. 903. (a) Special Requirements Fund.-There are authorized to
be appropriated to the President for the fiscal year 1975 not to exceed
$100,000,000 to furnish assistance uiuler part I of this Act to meet
special requirements arising from time to time in carrying out the
purposes of this part, in addition to funds otherwise available for such
purposes. The funds authorized to be appropriated by this section shall
be available for use by the President for assistance authorized by such
part in accordance with the provisions applicable to the furnishing of
such assistance. Such funds are authorized to remain available until
expended.
"(b) The President may only obligate or expend, for each foreign
country or international organizations, funds authorized under this
section-
" (1) after he reports to the Speaker of the House of Represent-
atives and the Committee on Foreign Relations and the Committee
on Appropriations of the Senate concerning (A) the name of such
foreign country or international organizations, (B) the amount
of such funds tol be made available to such country or organization.
and (C) the purpose for which such funds are to be made available
to such, country or organwization; and
"(2) unless the Congress, within thirty calendar days after
receiving any report sunder paragraph (1), adopts a concurrent
resolution stating in substance that ?t does not favor the provisions
of the report provided by clauses (A), (B), and (C) of para-
graph (1).
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"(c) Of the amount authorized under subsection (a), not less than
$6,000,000 shall constitute a contribution by the United States toward
the settlement of the deficit of the United Nations Relief and Works
Agency for Palestine Refugees in the Middle East, if the President
determines that a reasonable number of other countries will contribute
a fa,~sr share toward the settlement of such deficit within a reasonable
period of time after the date of enactment of the Foreign Assistance
Act of 19741. In determining such fair share, the President shall take
into consideration the economic position of each, such country. Such
$6,000,000 shall be in addition to any other contribution to such Agency
by the United States pursuant to any other provision of law."
Sss'c. 43. None of the funds authorized by this Act may be used to
finance the construction of the operation or maintenance of, or the
supply of fuel for any nuclear powerplant in Israel or Egypt, which
has been approved under an agreement for cooperation between the
United States and either such country.
SE;c. 44. Section 620(p) of the Foreign Assistance Act of 1961 is
repealed.
Sec. 45(a). The Foreign Military Sales Act is amended as. follows:
(1) Section 3(d) is amended to read as follows:
"(d) A country shall remain ineligible in accordance with, subsec-
tion (c) of this section until such. time as the President determines
that such violation. has ceased, that the country concerned has given
assurances satisfactory to the President that such violation will not
recur, and that, if such violation involved the transfer of sophisticated
weapons without the consent of the President, such weapons have been
returned to the country concerned."
(2) Section. 23 is amended to read as follows :
"SF.c. 23. Credit Sales.-The President is authorized to finance pro-
curements of defense articles and defense services by friendly foreign
countries and international organizations on terms requiring the pay-
ment to the United States Government in United States dollars of-
"(1) the value of such articles or services within a period not
to exceed ten years after the delivery of such articles or the ren-
dering of such services; and
"(2) interest on the unpaid balance of that obligation for pay-
ment of the value of such articles or services, at a rate equivalent
to the current average interest rate, as of the last day of the month
preceding the financing of such procurement, that the United
States Government pays on outstanding marketable obligations
of comparable maturity, unless the President certifies to Con-
gress that the -national interest requires a lesser rate of interest
and states in the certification the lesser rate so required and the
yustifacation therefor."
(3) In subsections (a) and (b) of section 24, the parenthetical
phrase in each is amended to read as follows: "(excluding United
States Government agencies other than the Federal Financing' Bank) ".
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(4) Section 24(c) is amended by striking out ",i5" both times it
appears and inserting "10" both such times in lieu thereof.
(5) Section 35(b) is repealed, and section 36 is amended by inserting
before subsection (c) the following new subsections:.
"(a) The President shall submit to the Speaker of the House of
Representatives and to the chairman of the Committee on Foreign
Relations of the Senate quarterly reports containing-
"(1) a listing of all letters of offer to sell any defense articles or
services under this Act, if such offer has not been accepted or
canceled;
"(2) a cumulative listing of all such letters of offer to sell that
have been accepted during the fiscal year in which such report is
submitted;
"(3) the cumulative dollar amounts, by foreign country and
international organization, of credit sales under section 03 and
guaranty agreements under section 24 made before the submission
of such quarterly report and during the fiscal year in which such
report is submitted; and
"(4) projections of the cumulative dollar amounts, by foreign
country and international organization, of credit sales under sec-
tion 23 and guaranty agreements under section 24 to be made in
the quarter of the fiscal year immediately following the quarter
for which such report is submitted.
For each letter of offer to sell under paragraphs (1) and (2), the
report shall specify (A) the foreign country or international orga-
nization to which the defense article or service is offered, (B) the dol-
lar amount of the offer to sell under paragraph (1) or of the completed
sale under paragraph (2), (C) a brief description of the defense arti-
cle or service offered, (D) the United States armed force which is
making the offer to sell, (F) the date of such offer, and (F) the date
of any acceptance under paragraph (0).
"(b) In the case of any letter of offer to sell any defense articles or
services under this Act for $25.000,000 or more, before issuing such
letter of offer the President shall submit to the Speaker of the House
of Representatives and to the Chairman of the Committee on Foreign
Relations of the Senate a statement with respect to such offer to sell
containing the information specified in subparagraphs (A) through
(F) in subsection (a). The letter of offer shall not be issued if the
Congress, within twenty calendar days after receiving any such state-
ment, adopts a concurient resolution stating in effect that it objects
to such proposed sale, unless the President in his statement certifies
that an emergency exists which requires such sale in the national se-
curity interests of the United States."
(6) Section 31(a) is amended by striking out "$325,000,000 for the
fiscal year 1974" and inserting in lieu thereof "$405,000,000 for the
fiscal year 1975".
(7) In section 31(b)-
(A) strike out "$730,000,000 for the fiscal year .1974" and insert
in lieu thereof "$872.500.000 for the fiscal year 1975"; and
(R) add at the end thereof the following new sentence: "Of the
funds made available under subsection (a) of this section, $100,-
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000,000 shall first be obligated with respect to financing the pro-
curement of defense articles and defense services by Israel under
section 23 of this Act, except that Israel shall be released from
contractual liability to repay the United States Government for
the defense articles and defense services so financed."
(8) In section 33-
(A) subsection (a) is repealed;
(B) subsection (b) is redesignated as subsection (a); and
C) a new subsection (b) is added as follows :
"(b) The President may waive the limitations of this section when
he determines it to be important to the security of the United States
and promptly so reports to the Speaker of the House of Representa-
tives and the Committe on Foreign Relations of the Senate."
(b) The amendment made byy paragraph (4) of subsection (a) shall
take effect on July 1, 1974. Obligations initially charged against ap-
propriations made available for purposes authorized by section 31(a)
of tare Foreign Military Sales Act of ter June 30,1974, and prior to the
enactment of this section in an amount equal to 25 per centum of the
principal amount of contractual liability related to guaranties issued
pursuant to section 21(a) of that Act shall be adjusted to reflect such
amendment with proper credit to the appropriations made available
in the fiscal year 1975 to carry out that Act.
SEc. 46. Chapter 1 of part II of the Foreign Assistance Act of 1961
is amended by adding at the end thereof the following new section:
"SEC. 502B. Human Rights.- (a) It is the sense of Congress that,
except in extraordinary circumstances, the President shall substan-
tially reduce or terminate security assistance to any government which
engages in a consistent pattern of gross violations of internationally
recognized human rights, including torture or cruel, inhuman or
degrading treatment or punishment; prolonged detention without
charges; or other flagrant denials of the right to life, liberty, and the
security of the person.
(b) Whenever proposing or furnishing security assistance to any
government falling within the provisions of paragraph (a), the Presi-
dent shall advise the Congress of the extraordinary circumstances
necessitating. the assistance.
"(c) In determining whether or not a government falls within the
provisions of subsection (a), consideration shall be given to the extent
of cooperation by such government in permitting an unimpeded in-
vestigation of alleged violations of internationally recognized human
rights by appropriate international organizations, including the Inter-
national Committee of the Red Cross and any body acting under the
authority of the United Nations or of the Organization of American
States.
"(d) For purposes of this section, 'security assistance' means assist-
ance under chapter 2 (military assistance) or chapter 4 (security sup-
porting assistance) of this part, assistance under part V (Indochina
Postwar Reconstruction) or part VI (Middle F, ast Peace) of this Act,
sales under the Foreign Military Sales Act, or assistance for public
safety under this or any other Act."
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GORGAS MEMORIAL INSTITUTE
SEC. 47. The first section of the Act entitled "An Act to authorize a
permanent annual appropriation for the maintenance and operation
of the Gorgas Memorial", approved May 7,1928, is amended by strik-
ing out "$500,000" and inserting "$2,000,000" in lieu thereof.
INTERNATIONAL COMMISSION OF CONTROL AND SUPERVISION IN VIETNAM
SEc. 48. (a) There are authorized to be appropriated to the Depart-
ment of State for fiscal year 1975 not to exceed $16,526,000 for pay-
ments by the United States to help meet expenses of the International
Commission of Control and Supervision in Vietnam. Funds appro-
priated under this subsection are authorized to be made available for
reimbursement to the Agency for International Development of
amounts expended by the Agency during fiscal year 1975 as interim
United States payments to help meet expenses of the International
Commission of Control and Supervision.
(b) There are authorized to be appropriated to the Department of
State not to exceed $11,200,000 for reimbursement to the Agency for
International Development of amounts expended by the Agency for
International Development to help meet expenses of the International
Commission on Control and Supervision in fiscal year 1974.
(c) Reimbursements received by the Agency for International De-
velopment under this section may be credited to applicable appropria-
tions of the Agency and shall be available for the purposes for which
such appropriations are authorized to be used during fiscal year 1975.
SEc. 49. The President is requested to review the regional allocation
of economic development assistance and to increase Africa's share of
the Agency for International Development loans and grants. A special,
effort should be made to provide more assistance to the sixteen of the
world's twenty-five least developed countries that are in Africa and
to the fourteen African nations that are judged to be most seriously
affected by rising costs of food and fuel. The President is requested to
make a report to Congress on action taken to provide the developing
countries Of Africa with an equitable share of United States economic
assistance at the time that the Agency for International Develop-
ment's operational year budget for fiscal year 1975 is submitted to
Congress and again with the submission to Congress of the proposed
Agency for International Development budget for fiscal year 1976.
POLICY ON THE INDEPENDENCE OF ANGOLA, MOZAMBIQUE,
AND GUINEA-BISSAU
Sic. 50. (a) (1) C, ongress finds that the Government of Portugal's
recognition of the right to independence of the African territories of
Angola, Mozambique, sand Guinea-Bissau marks a significant advance
toward the goal of self-determination for all the peoples of Africa,
without which, peace on the continent is not secure.
(0) Congress finds that progress toward independence for the Por-
tuguese African territories will have a significant impact on the inter-
national organizations and the community of nations.
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(3) Congress commends the Portuguese Government's initiatives on
these fronts as evidence of a reaffirmation of that Government's sup-
port for her obligations under both the United Nations Charter and
the North Atlantic Treaty Organization.
(b) Therefore, Congress calls upon the President and the Secretary
of State to take the following actions designed to make clear United
States support for a peaceful and orderly transition to independence
in the Portuguese African territories:
(1) An o fcial statement should be issued of United States sup-
port for the independence of Angola, Mozambique, and Guinea-
Bissau, and of our desire to have good relations with the future
governments of the countries.
(2) It should be made clear to the Government of Portugal that
we view the efforts toward a peaceful and gust settlement of the
conflict in the African territories as consistent with Portugal's
obligations under the North Atlantic Treaty Organization
partnership.
(3) The United States should encourage United Nations sup-
port for a peaceful transition to independence, negotiated settle-
ment of all differences, and the protection of human rights of all
citizens of the three territories.
(4) The United States should open a dialog with potential lead-
ers of Angola, Mozambique, and Guinea-.Bissau and assure them
o f our commitment to their genuine political and economic
independence.
(5) The economic development needs of the three territories
will be immense when independence is achieved. Therefore, it is
urged that the United States Agency for International Develop-
ment devote attention to assessing the economic situation in
Angola, Mozambique, and Guinea-Bissau and be ready to co-
operate with the future governments in providing the kind of
assistance that will help make their independence viable. In addi-
tion, the United States Government should take the initiative
among other donors, both bilateral and multilateral, in seeking
sign fccant contribution of development assistance for the three
territories.
(6) In light of the need of Angola, Mozambique, and Guinea-
Bissau for skilled and educated manpower, a priority consider-
ation should be given to expanding current United States pro-
grams of educational assistance to the territories as a timely and
substantive contribution to their independence.
(c) Reports should be submitted to the Congress on the implemen-
tation of the proposals set forth in subsection (b) and Congress should
be kept fully informed on developments in United States policy to-
ward the independence of the Portuguese African territories.
SEC. 51. (a) It is the sense of the Congress that the recent growth
in international transfers of conventional arms to developing nations-
(1) is a cause for grave concern for the United States and
other nations in that in particular areas of the world it increases
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the danger of potential violence among nations, and diverts scarce
world resources from more peaceful uses; and
(2) could be controlled progressively through negotiations and
agreements among supplier and recipient nations.
(b) Therefore, the President is urged to propose to the Geneva
Conference of the Committee on Disarmament that, it consider as a
high priority agenda item discussions among participating nations
of that Conference for the purposes of-
(1) agreeing to workable limitations on conventional arms
transfers; and
(2) establishing a mechanism through which such limitations
could be effectively monitored.
(c) The President shall transmit to the Congress not later than six
months after the enactment of this Act a report setting forth the steps
he has taken to carry out this section.
SEC. 52. (a) The President may transmit to the Caribbean Develop-
ment Bank an instrument stating that the Commonwealth of Puerto
Rico has the authority to conclude an agreement of accession with such
Bank and to assume rights and obligations pursuant to such agree-
ment. however, such agreement may only be concluded after it has
been approved by the United States Secretary of State.
(b) The instrument transmitted by the President to the Caribbean
Development Bank under subsection (a.) shall state that the United
States shall not assume any financial or other responsibility for the
performance of any obligation incurred by the Commonwealth of
Puerto Rico pursuant to such agreement of accession or pursuant to
any other aspect of its membership or participation in such Bank.
(c) Such agreement of accession shall provide that the Common-
wealth of Puerto Rico may not receive from the Caribbean Develop-
ment Bank any funds provided to the Bank by the United States.
ASSISTANCE TO PORTUGAL AND PORTUGUESE COLONIES IN AFRICA GAINING
INDEPENDENCE
SEC. 53, Part I of the Foreign Assistance Act of 1961 is amended
by adding at the end thereof the following
"Chapter X-Assistance to Portugal and Portuguese Colonies in
Africa Gaining Independence
"SEC. 496. Assistance to Portugal and Portuguese Colonies in Africa
Gaining Independence.-There are authorized to be appropriated to
the President for the fiscal year 1975, in addition to funds otherwise
available for such purposes, not to exceed,-
"(1) $5,000,000 to make grants; and
"(2) $20,000,000 to make loans;
to remain available until expended, for use by the President in pro-
viding economic assistance, on such terms and conditions as he may
determine, for Portugal and the countries and colonies in Africa which
were, prior to April 25,1974, colonies of Portugal."
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Sec. 54. Chapter 3 of part III of the Foreign Assistance Act o l 1961
is amended by adding at the end thereof the following new section:
"Sec. 305. Integration of Women. The President is requested to
instruct each representative of the United States to each international
organization of which the United States is a member (including but not
limited to the International Bank for Reconstruction and Develop-
ment., the Asian Development Bank, the Inter-American Development
Bank, the International Monetary Fund, the United Nations, and the
Organization for Economic Cooperation and Development) to carry
out their duties with respect to such organizations in such a manner as
to encourage and promote the integration of women into the national
economies of member and recipient countries and into professional and
policy-making positions within such organizations, thereby improv-
ing the status of women."
POLICY WITH RESPECT TO' COUNTRIES MOST SERIOUSLY AFFECTED BY
FOOD SHORTAGES
55. (a) The United Nations has designated thirty-two coun-
tries as "Most Seriously Affected" by the current economic crisis. These
are countries without the internal food production capability or the
foreign exchange availability to secure food to meet their immediate
food requirements. The Congress calls upon the President and Secre-
tary of State to take the following actions designed to mobilize appro-
priate resources to meet the food emergency:
(1) Review and make appropriate adjustments in the level of
programming of our food and fertilizer assistance programs with
the aim of increasing to the maximum extent feasible the volume
of food and fertilizer available to those countries most seriously
affected by current food shortages.
(2) Call upon all traditional and potential new donors of food,
fertilizer, or the means of financing these commodities to im-
mediately increase their participation in efforts to address the
emergency food needs of the developing word.
(3) Make available to these most seriously affected countries
the maximum feasible volume of food commodities, with appro-
priate regard to the current domestic price and supply situations.
(4) Maintain regular and full consultation with the appro-
priate committees of the Congress and report to the Congress and
the Nation on steps which are being taken to help meet this food
emergency. In accordance with this provision, the President shall
report to the Congress onag lobal assessment of food needs for
fiscal year 1975, specifying expected food grain deficits and cur-
rently planned programming o f f and assistance, and steps which
are being taken to encourage other countries to increase their par-
ticipation in food assistance or the financing o f f ood assistance.
Such report should reach the Congress promptly and should be
supplemented quarterly for the remainder of fiscal year 1975.
(5) The Congress directs that during the fiscal year ending
June 30, 1975, not more than 30 per cent of concessional food
aid should be allocated to countries other than those which are
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most seriously affected by current food shortages, unless the Presi-
dent demonstrates to the appropriate Committees oj the Congress
that the use of such food assistance is solely for humanitarian
food purposes.
(6) The Congress calls upon the President to proceed with
the implementation of resolutions and recommendations adopted
by the World Food Conference. The Congress believes that it
is incumbent upon the United States to take a leading role in
assisting in the development of a viable and coherent world food
policy which would begin the task of alleviating widespread
hunger and suffering prevalent in famine-stricken nations. The
President shall report to the Congress within 120 days of enact-
ment of this Act on the implementation of the resolutions and
the extent to which the United States is participating in the
implementation of resolutions adopted at the World Food Con-
ference. REPAYMENT OF LOANS IN DEFAULT
Sec. 56. It is the sense of the Congress that any country receiving
assistance under the Foreign Assistance Act of 1961 which is in default,
at least 90 days prior to the date of enactment of this Act, of any pay-
ment of principal or interest due on any loan or credit received from
the United States shall promptly pay all such principal and interest.
It is further the sense of the Congress that the President shall promptly
enter into negotiations with each such country to help effectuate the
payment o l such principal and interest, or to effectuate the transfer
by such country to the United States of goods, services, concessions,
or actions beneficial to the United States, in lieu of the payment of
such principal and interest.
And the House agree to the same.
TIIOMAS E. MORGAN,
CLEMENT J. ZABLOCKI,
WAYNE L. HAYS,
DANTE B. FASCELL,
PETER H. B. FRELINGHUYSEN,
WM. S. BROOMFIELD,
EDWARD J. DERWINSKI,
Managers on the Part of the House.
JOHN SPARKMAN,
FRANK CIiuncu,
STUART SYM.IINGTON,
HUBERT 11. HUMPHREY,
GEORGE D. AIKEN,
CLIFFORD P. CASE,
J. JAVITS,
Managers on the Part of the Senate.
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JOINT EXPLANATORY STATEMENT OF THE COMMITTEE
OF CONFERENCE
The managers on the part of the House and the Senate at the con-
ference on. the disagreeing votes of the two Houses on the amendment
of the House to the bill (S. 3394) to amend the Foreign Assistance Act
of 1961, and for other purposes, submit the following joint statement to
the House and the Senate in explanation of the effect of the action
agreed upon by the managers and recommended in the accompanying
conference report:
The House struck out all of the Senate bill after the enacting clause
and inserted a substitute amendment.
The committee of conference recommends a substitute for both the
Senate bill and the House amendment to the text of the Senate bill.
Except for clarifying, clerical, and necessary conforming changes,
the differences between the two Houses and the adjustments made in
the committee of conference are noted below.
The committee of conference agreement contained authorizations for
economic and military assistance for fiscal year 1975 of $2,697,226,
which represents an increase of $39,926,000 in the House figure, a re-
duction of $30,900,000 in the Senate figure, and a reduction of $554,-
974,000 below the amount requested by the executive branch.
(31)
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The amounts requested by the committee of conference compared to
the amounts requested by the executive branch and recommended by
the House and Senate follow :
FUNDS AUTHORIZED FOR FISCAL YEAR 1975 BY S. 3394
[In millions
Supplemental
Previously and new fiscal
authorized year 1975 House Senate
for fiscal Executive reco n- recom- Conference
year 19751 requests mendations mendations agreement
Food and nutrition (sec. 103)----------- $291.0 $255.3 2 $180.3 a $239.0 a $209.0
Population planning and health (sec. 104). 145.0 -------------- a 20.0 320.0 a20.0
Population activities (sec. 292)---------- 4 (130.0)-------------- a (20.0) 5 (20.0) 5 (20.0)
Education and human resources (sec.
105)--- 90.0 ---------------------------- 8 2.0 c 2.0
Port ugal and Pertuguesecolonies-------------------------------------------------- 55.0 25.0
Loans------------- -------- (50.0) (20.0)
Grants (5.0) (5.0
International organizations and programs- 150.0 7 3.9 78 4, 4 7 36.9 7 e 15.0)
Contingescyfund -------------------- 30.0 -------------- 0 -25.0 -------------- 0 -25.0
Famine and disaster relief (sec.639)--------------------------------- 1040.0 -------------- 1040.0
Middle East special requirements--------------------- 100.0 100.0 100.0 100.0
UNRWA --------------------------------------- - - 11 (6.0)-------------- 11 (6.0)
Indochina postwar reconstruction--------------------- 939.8 5 3.4 617.0 617.0
Vietnamese children --------__________________________________ 1a (10.0) to (10.0) 1a (10.0)
Security supporting assistance------------------------ 385.5 585. D 675.0 660.0
Middle East------------------------------------ 13 (377.5) Is (577.5) Is (677.0) 1a (652.0)
Military assistance programs------------------------- 985.0 745.0 550.0 600.0
Middle East------------------------------------ 14 (100.0) 15 (200.0) 14 (100.0) 1+ (100.0)
Foreign military credit sales-------------------------- 555.0 405.0 405.0 405.0
Middle East------------------------------------- 16 (330.0) 17 (230.0) 15 (330.0) 10 (330.0)
International Control Commission--------------------- 27.7 27.7 27.726 27.726
Gorgas Memorial Institute-------------- .5 --------------- 18 1.5 18.5 11 1.5
706.5 3, 252.2 2, 657.3 2, 728.126 2, 697.226
I Public Low 93-189, approved Dec. 17, 1973 authorized economic assistance for fiscal years 1974 and 1975, except for the
Albert Schweitzer Hospita , Indochina postwar reconstruction assistance, and African famine relief. The military assistance
authorizations were for fiscal year 1974 only.
a In addition to the $291,000,000 previously authorized for fiscal year 1975.
3 In addition to the $145,000,000 previously authorized for fiscal year 1975.
4 Earmarked for this purpose from pt. I funds for fiscal year 1975.
e In addition to the $130,000,000 previously earmarked for this purpose from pt. I funds.
E In addition to the $90,000,000 previously authorized for fiscal year 1975.
7 In addition to the $150 000,000 previously authorized for fiscal year 1975.
8 Of which, not less than 500,000 was earmarked for contribution to the International Atomic Energy Agency as technical
assistance in kind.
9 The previous authorization of $30,000,000 for the contingency fund for fiscal year 1975 was cut to $5,000,000.
10 Of which $25,000,000 earmarked for Cyprus.
11 Earmarked from the Special Requirements Fund for contribution toward settlement of the deficit of the United Nations
Relief and Works Agency for Palestine Refugees.
12 Earmarked from Indochina postwar reconstruction funds for assistance to Vietnamese children.
13 Security assistance earmarked for the Middle East.
it Up to $100,000,000 of which made available for the Middle East.
15 Up to $200,000,000 of which made available for the Middle East and not less than $100,000,000 made available for
Israel.
15 Of the aggregate ceiling of $872,500,000 on credits and guaranties authorized to be extended, not to exceed
$330,000,000 made available for countries in the Middle East, of which $300,000,000 is for Israel.
17 Of the aggregate ceiling of $772,500,000 on credits and guaranties authorized to be extended, not to exceed
$230,000,000 made available for countries in the Middle East, of which $200,000,000 is for Israel.
I8 In addition to the $500,000 previously authorized.
FOOD AND NUTRITION AUTIIORIZATION
Food and nutrition
The Senate bill increased the authorization for food and nutrition
under section 1G3 of the act from $291 million to $530 million for fiscal
year 1975.
The House amendment increased the section 103 authorization to
$471.3 million for fiscal year 1975.
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The committee of conference agreed to a compromise authorization
of $500 million for food and nutrition for fiscal year 1975.
Policy increasing agricultural production
The Senate bill added a subsection 103 (b) to the Foreign Assistance
Act directing that special attention be given to increasing agricultural
production in countries with per capita income under $300.
The House amendment did not contain a comparable provision.
The House receded.
Limit on fertilizer production for Vietnam
The Senate bill added a subsection 103(c) limiting the annual
funding for fertilizer for South Vietnam to one-third of the total
amount obligated for fertilizer under the Foreign Assistance Act after
fiscal year 1975.
The House amendment prohibited Foreign Assistance Act funding
to procure fertilizer for South Vietnam in fiscal year 1975 and limited
the amount for South Vietnam to one-third of the total amount ob-
ligated for this purpose annually after fiscal year 1975.
The Senate conferees accepted the House language. The House and
Senate conferees agreed to make the prohibition on the use of funds
to procure fertilizer for South Vietnam in fiscal year 1975 effective
upon the enactment of the Foreign Assistance Act of 1974.
EDUCATION AND HUMAN RESOURCE DEVELOPMENT AUTHORIZATION
The Senate bill increased the authorization for education and human
resource development under section 105 of the Foreign Assistance Act
from $90 to $92 million for fiscal year 1975, so as to provide funding
for activities conducted by the Opportunities Industrialization Centers
International.
The House amendment did not contain a comparable provision.
The House receded.
DISPOSITION OF LOAN RECEIPTS
The Senate bill amended section 203 of the Foreign Assistance Act
specifically to prohibit the use by the Agency for International Devel-
opment (AID) of scheduled loan receipts after July 1, 1975.
The House amendment did not contain a comparable provision. The
House amendment, in effect, retained existing law which permits the
use of 50 percent of loan receipts until July 1, 1975, and then terminates
the authority.
The committee of conference agreed to accept the Senate amend-
ment effective July 1, 1975. The intent of the conferees is to assure that
actual receipts after July 1, 1975, be deposited in the Treasury.
HOUSING GUARANTIES
The Senate bill increased the worldwide ceiling on housing guaran-
ties in section 221 of the Foreign Assistance Act from $305 million to
$405 million and extended the authority through June 30, 1976.
The House amendment also extended the authority through June 30,
1976, but did .not increase the section 221 ceiling.
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The committee of conference raised the worldwide housing guaranty
ceiling by $50 million from $305 million to $355 million.
AGRICULTURAL CREDIT PROGRAMS
The Senate bill added Title III, Housing and Other Credit Guaranty
Programs and a new section 222A to the Foreign Assistance Act,
transferring Agricultural and Productive Credit and Self-Help, Com-
munity Development Program from the Overseas Private Investment
Corporation (OPIC) to AID. This section makes clear that the full
faith and credit of the United States extends to guaranties previously
issued under this program by OPIC.
The I-louse amendment also transferred the agricultural credit pro-
grams from OPIC to AID. It did not, as a technical matter, extend
the U.S. full faith and credit to guaranties previously made under
OPIC's authority.
The House receded.
Authorization
The Senate bill increased the authorization for international orga-
nizations and programs under section 302 (a) of the Foreign Assistance
Act from $150 million to $186.9 million for fiscal year 1975.
The House amendment increased this section 302 (a) authorization
to $154.4 million for fiscal year 1975.
The committee of conference agreed on an authorization of $165
million for fiscal year 1975. It is the intention of the committee of
conference that $3 million of the fluids authorized in this section for
fiscal, year 1975 shall be made available to the United Nations Childrens
Emergency Fund (UNICEF), in view of the fact that demands on
UNICEF resources have increased markedly, and $7.6 million for the
United Nations Development Program (UNDP), to help move the
U.S. contribution from a split-year to a full-year funding basis. The
committee of conference also expressed its deep concern about the
operations of the United Nations Relief and Works Agency
(UNRWA). It directs the Secretary of State to conduct a review of
UNRWA operations and to report its findings promptly to the Com-
mittee on Foreign Relations and the Committee on Foreign Affairs.
Earmarking for the International Atomic Energy Agency
The House amendment added a new subsection 302(g) earmarking
$500,000 of funds authorized under the section for the International
Atomic Energy Agency. (IAEA) and requiring that a reasonable
amount of the funds be used to strengthened procedures to prevent
unauthorized use of nuclear materials. A report on action taken to
implement this section is required by July 1, 1975.
The Senate bill did not contain ,% comparable provision.
The 'Senate receded.
Expense of U.S. membership in UNESCO
The Senate bill contained a provision which prohibited the use of
any funds appropriated under any law for the United Nations Edu-
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cational, Scientific, and Cultural Organization (UNESCO) until
the Secretary of State certified to the Congress that each resolution
not of an educational, scientific, or cultural character adopted by
UNESCO had been repealed.
The house amendment added a new subsection 320(h) to the act,
prohibiting contributions from the Foreign Assistance Act to
UNESCO until the President certifies that the organization has taken
concrete steps to correct recent political actions and has adopted
policies consistent with its charter.
The committee of conference agreed upon a provision directing
that no funds should be expended or obligated to support, directly or
indirectly, the United Nations Educational, Scientific and Cultural
Organization until the President certifies to the Congress that such
Organization (1) has adopted policies which are fully consistent with
its educational, scientific and cultural objectives, and (2) has taken
concrete steps to correct its recent actions of a primarily political
character.
MILITARY ASSISTANCE AUTHORIZATIONS
The Senate bill amended section 504(a) of the Foreign Assistance
Act to authorize $550 million for military assistance programs (MAP)
for fiscal year 1975.
The House amendment amended section 504(a) to authorize $745
million for MAP for fiscal year 1975 and earmarked $100 million for
Israel.
The committee of conference agreed to provide a $600 million author-
ization for MAP for fiscal Year 1975 and to delete the earmarking of
$100 million for Israel which was in the House amendment. It also
agreed upon the earmarking of $300 million in military credit sales for
Israel, and the releasing of that country from the liability to repay
the United States for $100 million worth of defense articles or services
so financed. Agreement also was reached to set the aggregate program
ceiling on credits and guaranties which can be furnished in fiscal year
1975, pursuant to section 31(a) of the Foreign Military Sales Act, so as
to reflect the above decisions.
SPECIAL DRAWDOWN AUTHORITY
The Senate bill repealed section 506 of the Foreign Assistance Act,
the President's special authority to draw down defense articles from
the stocks of the Department of Defense and defense services when
he determines it to be in the security interests of the United States,
subject to subsequent reimbursement from appropriations for military
assistance.
The House amendment extended the section 506 drawdown authority
through June 30, 1975, and retained the ceiling of $250 million.
TheSenate receded, with an amendment authorizing a drawdown
ceiling of $150 million for fiscal year 1975. The committee of confer-
ence expressed concern that no request has yet come forward to the
Congress from the executive branch for an appropriation to reimburse
the Department of Defense for the $250 million expended under the
section in fiscal year 1974 for defense articles and services to Cambodia.
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MILITARY ASSISTANCE AUTHORIZATION FOR SOUTH VIETNAM
The Senate bill contained a provision which required the transfer
of authorizations for military assistance and sales programs for South
Vietnam from the Department of Defense budget to the Foreign
Assistance and Military Sales Acts effective June 30, 1976.
The House amendment provided for the transfer of such military
assistance and sales authorizations effective June 30, 1975.
The House receded. The committee of conference agreed that mili-
tary assistance and sales authorization for South Vietnam should be
made pursuant to the Foreign Assistance Act of 1961 and the Foreign
Military Sales Act but because of budget cycling considerations post-
poned the effective date until June 30, 1976. Aware that this would be
the. second postponement of the return to the regular foreign aid
authorization of military aid to South Vietnam, the conferees were
in full agreement that no further postponement should be allowed.
Limitations on use
EXCESS DEFENSE ARTICLES
The Senate bill added a new section 514 to-the Foaeign.-Assistance
Act setting a fiscal year 1975 ceiling of $150 million at acquisition
cost on the quantity of excess ;defense-articles that can be furnished
to foreign countries under MAP and requiring that the value be
charged to the MAP appropriation.
The House amendment did not contain a comparable provision.
The House amendment retained existing law which requires that
excess defense articles generated in the United States and furnished
to foreign countries in any way be charged to the. MAP appropriation
at a Ininimum of one-third of the acquisition cost and sets a ceiling of
$150 million on excess defense articles generated abroad which can
be used before being chargeable to MAP.
The Senate receded, with an amendment lowering the ceiling from
$150 million to $100 million.
Repeal of limitations on use and definition of excess defense articles
The Senate bill contained a. provision repealing sections 8 and 11
of the Foreign Military Sales Act Amendments of 1971 relating to
the use and definition of excess defense articles.
The House amendment did not contain a comparable provision.
The Senate receded.
Value of excess defense articles in material presented to the Congress
The House amendment contained a provision which amended sec-
tion (34(d) of the Foreign Assistance Act to require that excess de-
fense articles ordered for military assistance purposes be expressed in
terms of acquisition costs, i.e. the cost to the U.S. Government at the
time such articles are acquired by the United States.
The Senate bill did not contain a comparable provision.
The Senate receded.
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STOCSPILING. OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES
The Senate bill added a new section 515 to the Foreign Assistance
Act which prohibits the stockpiling of defense articles for war reserves
for foreign countries with any funds other than those authorized by
this act or, in the case of Vietnam, the Military Procurement Act of
1966 (Public Law 89-367). The costs of any stockpiling will be charge-
able to the MAP appropriations in the year such defense articles are
set aside.
The House amendment did not contain a comparable provision.
The House receded.
MILITARY ASSISTANCE ADVISORY GROUPS AND MISSIONS
The Senate bill contained a provision which required that all mili-
tary mission costs, including military pay and allowances, presently
included in the Department of Defensebudget shall be chargeable to
the.Inilitary assistance appropriation effective July 1, 1975.
The House amendment did not contain a comparable provision.
The House receded with an amendment to change the effective date
to July 1, 1.976.
TERMINATION OF MILITARY ASSISTANCE AUTHORITY
I ermination of MAP programs
The Senate bill added a new section 517 to the act that would have :
Terminated all military assistance programs, other than mili-
tary training programs, effective September 30, 1977, and author-
ized concessional credit sales to countries that received military as-
sistance in fiscal year 1974 during the phaseout period (4-percent
interest with 10-year repayment period).
Terminated all military assistance advisory groups and missions
effective September 30, 1977, and transferred this function to the
Chiefs of Diplomatic Missions. After that date, no advisory
groups were to be established unless specifically authorized by the
Congress.
Effective October 1, 1977, placed a ceiling on the number of
military attaches to not more than 125 percent of the total number
assigned to such duties on June 30, 1974.
The House amendment did not contain a comparable provision.
The House receded, with an amendment expressing the sense of
Congress that the policies and purposes of the military assistance
program conducted under chapter 2 of part II of the Foreign Assist-
ance Act of 1961 should be reexamined in light of changes in world
conditions and the economic position of the United States in relation
to countries receiving such assistance, and that the program, except
for military education and training activities, should be reduced and
terminated as rapidly as is feasible consistent with the security and
foreign policy requirements of the United States. The amendment also
directs the President to submit to the First Session of the 94th Con-
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gress a detailed plan for the reduction and eventual elimination of the
present military assistance program.
Continuation of miilitary training
The Senate bill contained a provision establishing a separate mili-
tary training authority effective October 1 1977, and limited such
training to such . locations in the United etates unless specifically
authorized by law. It also contained several technical provisions to
conform this new authority with prior provisions terminating mili-
tary assistance programs and military assistance advisory groups.
The House amendment did not contain a comparable provision.
The Senate receded.
EXEMPTION OF CANAL ZONE TRAINING
The House amendment contained a. provision which exempted West-
ern Hemisphere Countries receiving training in the Canal Zone from
counting against the 31-country ceiling set by section 504 of the For-
eign Assistance Act.
The Senate bill did not contain a comparable provision.
The Senate receded.
TERMINATION OF MILITARY ASSISTANCE AND SALES TO SOUTII KOREA .
The Senate bill contained a provision which would terminate mili-
tary assistance and military sales credits to South Korea effective
September 30, 1977, and males line item ceilings on MAP and excess
defense articles and military sales credit for each of the 3 fiscal years
as follows:
[In millions of dollars]
.
MAPI
FMS
Total
1975-------------------------------------------------------------
1976
91.5
42.4
133
9
-----------------------------------------------------------
1977
61.0
28.3
.
89
3
------------------------------------------------------------
30.5
14.1
.
44.6
Total
183.0
84.8
267.8
The House amendment contained a provision which would limit
the aggregate amount for military assistance, excess defense articles,
and military sales credits and guaranties- to $145 million in fiscal year
1975 unless the President reported to Congress that the Government of
South Korea had made substantial progress in the observance of inter-
national standards of human rights. If such a report were made, the
aggregate ceiling for such programs would be increased to $165
million.
The Senate receded.
SECURITY SUPPORTING ASSISTANCE AUTHORIZATION
The Senate bill contained a provision amending section 532 of the
Foreign Assistance Act to authorize $675 million for security support-
ing assistance in fiscal year 1975.
The House amendment authorized $585 million for security support-
ing assistance for fiscal year 1975.
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The committee of conference agreed to a compromise authorization
of $660 million for security supporting assistance for fiscal year 1975.
For coiuit:ries in the Middle East, this .fioure will allow $324.5 million
for Israel, $250 million for Egypt, and ;77.5 million for Jordan.
TRANSFER AND WAIVER AUTHORITY AMENDMENTS
Transfer between accounts
The Senate bill contained a provision amending section 610 to
prohibit the use of the section 610 (a) transfer authority to transfer
funds into the military assistance program and to permit the transfer
of funds allocated to a country for military assistance into the devel-
opment assistance program for that same country. The Senate bill also
prohibited the use of the section 614 (a) waiver authority to waive the
limitations on transfers provided for in the section 610(a) transfer
authority.
The House amendment did not contain a comparable provision.
The House receded.
Transfers between accounts for Indochina
The Senate bill contained a provision prohibiting the use of the
section 610(a) transfer authority for funds appropriated for Indo-
china countries but permitted the transfer of funds allocated under
the Foreign Assistance Act or any other law for any Indochina
country into the development assistance program for that country.
The Senate bill prohibited the use of funds from accounts other
than the Indochina account in the countries of Indochina but made
an exception for population programs, narcotics assistance, humani-
tarian assistance through international organizations, and funds
obligated for regional programs in Indochina.
The House amendment prohibited the use of the section 610(a)
transfer, authority to transfer funds into the Indochina account and
prohibited the use of the section 614(a) waiver authority to use eco-
nomic assistance funds in Indochina but permitted the use of these
authorities if the Congress is notified 30 days in advance and does not
disapprove such use by concurrent resolution.
The Senate receded with amendments (1) to eliminate the permis-
sion to use the transfer and waiver authorities with 30 days prior notice
to Congress; (2) to make four exceptions to the restriction on the use
of funds from accounts other than the Indochina account, namely for
population programs, narcotics assistance, humanitarian assistance
through international organizations, and funds obligated for regional
programs in Indochina; and (3) to permit the transfer of military
assistance funds provided under the, Foreign Assistance Act for any
Indochina country for development programs in that country.
Restrictions on use of development assistance funds
The House amendment contained a provision which prohibited pro-
viding development assistance to countries receiving funds from the
security supporting assistance or Indochina aid accounts or from the
Middle East Special Requirements Fund and permitted the waiver of
this prohibition under section 614 (a) only if Congress is notified of
the proposed use of the waiver and does not disapprove such use by
concurrent resolution within 30 days. The House amendment made an
exception for population programs.
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The Senate bill did not contain a comparable provision.
The Senate receded with an amendment which eliminates the waiver
provision but makes additional exceptions for humanitarian assistance
through international organizations and for regional programs in
Indochina.
Changes in allocation
The House amendment contained a provision which changed section
653 to restrict further the reallocation of foreign assistance funds by
extending the limitation on reallocation of funds now covering military
assistance and security supporting assistance to include also Indochina
aid and economic development assistance, and by increasing the prior
notice period for reallocation from 1.0 to 30 days.
The Senate bill did not contain a comparable provision.
The Senate receded with an amendment to reduce the 30 day prior
notice period to 10 days.
The committee of conference emphasizes that language agreed to
should not be interpreted to allow assistance in excess of any ceilings
specified in other provisions of law.
PROHIBITIONS ON MILITARY ASSISTANCE TO TURKEY
The Senate bill contained a provision which would prohibit military
assistance and the sale of defense articles to Turkey until and unless
the President certified to the Congress that the Government of Turkey
was in compliance with the applicable laws and agreements relating
to the use of defense articles furnished by the United States and was
making substantial progress regarding military forces in Cyprus.
The President could suspend the provisions of the section until 30 days
after the convening of the 94th Congress if lie determined that such
suspension would further negotiations for a peaceful settlement of the
Cyprus conflict.
The House amendment contained a provision suspending all mili-
tary assistance and sales to Turkey upon enactment of the bill. The
suspension could be waived if the, President determined and certified
to the Congress that the Government of Turkey is in compliance with
the Foreign Assistance Act. of 1961, the Foreign Military Sales Act,
and any agreement entered into under such Acts, and that substan-
tial progress toward agreement has been made regarding military
forces in Cyprus.
The conference report combines the provisions of both versions. It
suspends all military assistance and sales upon enactment of the bill.
but allows the President to lift the suspension until February 5, 1975
if he determines that such action will further negotiations for a peace-
ful solution of the Cyprus conflict and only if, during that time,
Turkey shall observe the ceasefire and shall neither increase its forces
on Cyprus nor transfer to Cyprus any U.S. supplied implements of
war.
It is the intention of the committee of conference that the period
during which the President is authorized to suspend the limitations
on aid to Turkey shall not be used to accelerate obligations or de-
liveries of material to Turkey. The Executive Branch is enjoined from
exceeding normal planned schedules for obligations and deliveries
under the MAP and FMS programs.
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WAIVER Or PROHIBITION ON ASSISTANCE TO COUNTRIES TRADING WITII
NORTII VIETNAM
The House amendment contained a provision which amended
section 620(n) to permit the President to waive the prohibition
on assistance to countries trading with North Vietnam.
The Senate bill did not amend section 620 (n).
The Senate receded.
LIMITATIONS ON ASSISTANCE TO CIIILE
The Senate bill contained a provision which limited assistance to
Chile to $55 million in fiscal year 1975, none of which could be used
for military assistance, credits, or guaranties.
The House amendment added a new subsection 620 (y) suspending
military assistance (except $800,000 in military training), credit sales,
and cash sales to Chile through fiscal yyear 1975, and also prohibiting
the issuance of export licenses for Chilean arms purchases from U.S.
manufacturers unless the President reports to the Congress that Chile
is making fundamental improvements in the observance of human
rights. If such a report is made, foreign military cash sales and com-
mercial sales may be made and up to $10 million in credit may be
extended to Chile.
The House receded with an amendment to limit the funds that could
be used for assistance to Chile to $25 million in fiscal year 1975, none
of which funds may be used to finance military assistance, credits, or
guaranties. The amendment also deleted the reference to "any other
law".
DISASTER RELIEF AND CONTINGENCY FUND
The House amendment contained a provision which amended sec-
tion 639 of the Foreign Assistance Act to authorize the appropriation
of $40 million for famine and disaster relief in fiscal year 1975, ear-
marked $25 million for Cyprus, and required a quarterly report on the
programing and obligation of funds. It also reduced the authorization
for the contingency fund (section 451) from $30 million to $5 million
and prohibited the. use of the contingency fund to pay for gifts to
officials of any foreign government.
The Senate bill contained a provision which amended section 639B
of the Foreign Assistance Act and added new sections 639C, 639D,
and 639E to authorize the President to provide, through U.N.
affiliates where practicable, long-term aid to the Sahel, emergency
relief to Cyprus and Bangladesh, and disaster relief to other nations
where the contingency fund is inadequate, but the section did not
authorize appropriations of any funds for those purposes. The Senate
version did not reduce the contingency fund or prohibit its use for
gifts to foreign government officials.
The Senate receded.
ACCESS TO CERTAIN MILITARY BASES ABROAD
The Senate bill contained a provision which added a new section
659 to the Foreign Assistance Act prohibiting the use of any funds
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authorized on behalf of any country in which a military base is located
if such base was constructed or is maintained with U.S. funds, and
from which the United States carries out military operations, until
the President has determined that such country permits bona fide news
media correspondents of the United States regular access to such mili-
tary bases consistent with its own security.
The House amendment did not contain a comparable provision.
The House receded.
PROHIBITING POLICE TRAINING
The Senate bill contained a provision which added a new section 660
to the Foreign Assistance Act which would prohibit all forms of police
training and financial support, both in and outside of the United
States, which are funded under the Foreign Assistance Act, including
the International Police Academy (IPA). Prior law prohibited police
training outside the United States.
The House amendment did not contain a comparable provision.
The House receded with an amendment which terminates the an-
thorilty to conduct police training within the United States or abroad,
effective June 30, 1975. A specific exception is made for training of
police pursuant to section 482 of the act, relating to international
narcotics control.
REIMBURSABLE DEVELOPMENT PROGRAMS
The House amendment contained a provision which would add a
new section 659 to the Foreign Assistance Act authorizing the use of
up to $2 million to work with friendly countries, particularly those in
which development assistance has ceased or those not receiving prior
assistance, in obtaining development-related goods or services from
U.S. sources.
The Senate bill did not contain a comparable provision.
The Senate receded with an amendment reducing the amount au-
thorized for use under the section to $1 million.
LIMITING INTELLIGENCE ACTIVITIES
The Senate bill contained a provision which added a new section
661 to the Foreign Assistance Act prohibiting the use of funds appro-
priated under any act by, or on behalf of the Central Intelligence
Agency (CIA), or any other agency of the U.S. Government, for the
conduct of operations in foreign countries other than operations in-
tended solely for Obtaining intelligence, unless the President finds
that such operations are important to the national security and trans-
mits a report of his findings to the committee of the Congress having
jurisdiction to monitor and review the intelligence activities of the
U.S. Government. These restrictions would not apply during a de-
clared war or during an exercise of power under the War Powers
Resolution.
The House amendment contained a provision which added a new
section 660 to the Foreign Assistance Act which was similar to the
Senate measure. The basic differences were that the House section pro-
hibited the use of Foreign Assistance Act funds only, applied to the
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CIA but not to other government agencies, and specifically required
that the reports be transmitted to the Foreign Affairs and Foreign
Relations Committees, among the committees with relevant juris-
diction. The House amendment also provided that the restrictions
should not apply during a declared war or during an exercise of
power under the War Powers Resolution.
The Senate receded.
The committee of conference agreed that strict measures should be
taken to insure maximum security of the information submitted to the t
Congress pursuant to this provision.
WAIVER OF PROHIBITION AGAINST COUNTRIES ENGAGING IN
CERTAIN TRADE
The Senate bill contained a provision which added a new section
662 to the Foreign Assistance Act which authorized the President
to waive any provision of the Foreign Assistance Act or Public Law
480 which prohibits assistance to a country because that country trades
with or ships to a designated country.
The House amendment did not contain a comparable provision.
The House receded, with an amendment deleting the reference to
the Agricultural Trade Development and Assistance Act of 1954
(Public Law 480).
INDOCHINA POLICY STATEMENT
The Senate bill contained a provision which expressed Congressional
findings and made policy statements on Indochina directing the Presi-
dent to undertake several measures to help bring peace in Indochina.
The findings include statements that none of the parties are observing
the Vietnam Peace Agreements, that the Cambodia war has intensi-
fied, and that continuation of the military efforts are not in the inter-
ests of the .people in Indochina or of world peace. The specific steps to
be taken are (1) negotiations with the Soviet Union and the People's
Republic of China to decrease arms supply, (2) approaches to the
Khmer Republic to enter into negotiations with the Khmer Govern-
ment of National Union, (3) negotiations with parties to the Paris
Peace Agreement to assure observance, (4) reconvening of the Paris
Conference, and (5).consultation with the Congress on progress to
achieve these objectives.
The House amendment did not contain a comparable provision.
The House receded with a minor modification to the Senate
language.
PRINCIPLES GOVERNING ECONOMIC AID TO INDOCHINA
The Senate bill contained a provision which made a congressional
finding relating to past U.S. economic policies with regard to Indo-
china and a policy statement concerning principles which should guide
future U.S. economic assistance programs in Indochina, with steps
which the Executive should follow: (1) organization of a consortium
and coordination of bilateral and multilateral aid, (2) development
of a comprehensive reconstruction and development plan, (3) develop-
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meat of detailed country reconstruction and development plans, (4)
a shift of U.S. programs to economic development (5) identification
of economic reforms which will lead to progress, and (6) inclusion of
criteria. to enable the Congress to measure progress. The Senate bill
also contained a disclaimer of a future commitment to aid Indochina
countries.
The House amendment did not contain a comparable provision.
The douse receded with an amendment which struck the finding
relating to past. U.S. economic policies with regard to Indochina.
INDOCII INA Ai-TI IORIZATION
The Senate bill contained a provision amending the Foreign .Assist-
ance Act to authorize $617 million for Indochina postwar reconstruc-
tion and earmarking amounts as follows:
Millions
South Vietnam----------------------------------------------------- $449.9
Cambodia ------------------------------------ - - 100.0
Laos --------__
Regional development----------------------------------------------- 4.0
Support costs------------------------------------------------------- 16.0
International organizations------------------------------------ 7.0
Total - 617.0
The House amendment contained a provision amending the Foreign
--------------------
Assistance Act to authorize $573.4 million for Indochina aid without
earmarking.
The House receded with an amendment to make the provision apply
only to the Foreign Assistance Act of 1974.
ASSISTANCE TO SOUTH VIETNAMESE CHILDREN
The Senate bill contained a provision which amended section 803
of the Foreign Assistance Act to increase the earmarking of funds
authorized under Indochina aid for assistance to South Vietnamese
children, from $5 million to $10 million and to delete a reference to
children fathered by Americans.
The House amendment also increased the section 803 program from
$5 million to $10 million but did not delete the reference to children
fathered by Americans.
The Senate receded with an amendment to make the earmarking
apply only to the Foreign Assistance Act of 1974.
LIMITATIONS ON AID TO SOUTH VIETNAM
The Senate bill contained a provision adding a new section 806 to
the Foreign Assistance Act containing the following restrictions and
requirements :
Placing an absolute, nonwaivable $1,274.9 million ceiling on the
total amount of U.S. assistance that can be furnished to South
Vietnam in fiscal year 1975, as follows :
Millions
Military assistance--------------- ------ $700.0
---------------------
Public Law 480------------------------------------------------ 125.0
Economic assistance------------------------------------ ----- 449.9
Total---------------------------------------------------- 1,274.9
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Earmarking the economic funds authorized by major category
and by programs or projects within each of these categories;
Prohibiting obligations without prior authorization or in excess
of authorizations;
Requiring a written report explaining the proposed use of
funds;
Requiring quarterly reports on obligations;
Establishing a personnel ceiling of 4,000 Americans (2,500
Department of Defense) in Vietnam 6 months after enactment
of this act, and a ceiling of 3,000 Americans (1,500 Department
of Defense) within 1 year after enactment;
Establishing a personnel ceiling of 800 third-country nationals
employed by the ITnited States in Vietnam 6 months after enact-
ment and a ceiling of 500 within 1 year after enactment, except
for voluntary agency employees; and
A statement that U.S. assistance shall not be construed as a
commitment for the defense of South Vietnam.
The House amendment did not contain a comparable provision.
The House receded with an amendment to eliminate the ceiling
on obligations for South Vietnam, which would have been subject to a
point of order in the House, and to make the remaining restrictions
and requirements of the section apply only to the Foreign Assistance
Act of 1.974.
LIMITATIONS ON ASSISTANCE TO CAMBODIA
The Senate bill contained a provision adding a new section 807 to
the Foreign Assistance Act of 1961 with restrictions and requirements :
Placing an absolute, nonwaivable ceiling of $377 million on the
total amount which can be furnished to Cambodia in fiscal year
1975, as follows :
Millions
Military assistance---------------------------------------------- $200
Public Law 480-------------------------------------------------- 77
Economic assistance--------------------------------------------- 100
Total ---------------------------------------------------- 377
Earmarking the economic funds authorized.by major category;
Prohibiting obligations after June 30, 1975 for Cambodia with-
out a prior authorization ;
Requiring a written report explaining the proposed use of
funds;
Requiring a report on obligations for Cambodia;
Exempting voluntary agency personnel from counting against
personnel ceiling; and
Stating that U.S. assistance shall not be construed as a commit-
ment; for the defense of Cambodia.
The Senate bill also repealed sections 655 and 656 of the Foreign
Assistance Act relating to Cambodia.
The House amendment contained a provision amending section 655
to increase the Cambodia ceiling to $377 million, with a ceiling of
$200 million on military assistance for fiscal year 1975. The House
amendment also contained a provision exempting voluntary agency
personnel from the personnel ceiling of section 656.
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The Senate receded with an amendment to include the earmarking,
program and project allocations, and personnel ceilings to apply only
to the Foreign Assistance Act of 1974. The amendment also excepts
from the ceiling up to $75 million in emergency assistance that may be
furnished to Cambodia pursuant to the authority contained in sec-
tion 506(a) of the act.
LLIIiTATIONS ON ASSISTANCE TO LAOS
The-Senate bill contained a provision adding a new section 808 to
the Foreign Assistance Act with the following restrictions and
requirements :
Placing an absolute, nonwaivable limitation of $70 million
on the total amount of U.S. assistance which can be furnished
to Laos in fiscal year 1975, as follows :
MtiiUona
Military assistance---------------------------------------------- $30
Economic assistance --------------------------------------------- 40
Total ---------------------------------------------------- 70
Earmarking the economic funds authorized by major category;
Prohibiting obligations without prior authorization or in excess
of authorizations ; -
Requiring a written report explaining the proposed use of
funds ;
Requiring quarterly reports on obligations ; and
Statement that U.S. assistance shall not be construed as a
commitment for the defense of Laos.
The House amendment did not contain a comparable provision.
The House receded with an amendment to make these restrictions
and requirements apply only to the Foreign Assistance Act of 1974.
General authority
The Senate bill contained a provision which added a new part VI
to the Foreign Assistance Act and also added a new section 9.01 which
contained a general authority for the President to furnish assistance
and to make military sales to the Middle East.
The House amendment did not contain a comparable provision.
The Senate receded.
Statement of policy
The Rouse amendment contained a provision which added a new
part VI to the Foreign Assistance Act and added a new section 901,
expressing a policy on U.S. assistance to countries in the Middle East
and further expressing the sense of Congress that no assistance should
be furnished to any country which denies its citizens the right to
emigrate.
The Senate bill did not contain a comparable provision. -
The Senate .receded.
-
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Allocation of Middle East assistance
The Senate bill contained a provision which added a new section
902 to the Foreign Assistance Act which allocated funds authorized
in other sections of the bill for Middle East countries as follows :
Millions
Military assistance------------------------------------------------
$100.0
Security supporting assistance--------------------------------------
667.0
Military sales------------------------------------------------------
330.0
Total -------------------------------------------------------
1,097.0
The House amendment also added a new section 902 which allocated
funds authorized in other parts of the bill for Middle East countries
as follow; :
Millions
Military assistance-------------------------------------------------
$200.0
Security supporting assistance -------- -_----------------------------
577.5
Military sales------------------------------------------------------
230.0
Total -------------------------------------------------------
1,007.5
The committee of conference agreed to a compromise allocation
which provides $100 million in military assistance, $652 million in se-
curity supporting assistance, and $330 million in military sales.
Although the committee of conference did not earmark funds either
for Israel or Egypt in this section, it is the understanding of the com-
mitte of conference that no less than $324.5 million will be made
available to Israel and no less than $250 million will be made available
to Egypt in security supporting assistance.
Special Requirements Fund
The Senate bill contained a provision which added a new section
903 to the Foreign Assistance Act which authorized the appropriation
of $100 million for a Special Requirements Fund. Before obligating
any amount for a project in excess of $1 million under the authority of
the Special Requirements Fund, the President was required to trans-
mit a report to the Congress, giving full details of the project, country
involved, and other details. This section also established procedures
for the Congress to disapprove the proposal by concurrent resolution
within 30 days.
The House amendment also added a new section 903 authorizing
the appropriation of $100 million for a Special Requirements Fund.
Prior to obligating or expending any of the funds, the President
would be required to report to the Congress, giving full details of
the project, including the country involved. If Congress did not dis-
approve the report within 30 legislative days, the project could go
forward. A new subsection 903(c) earmarked $6 million to be applied
toward settlement of the deficit of the U.N. Relief and Works Agency
for Palestine Refugees in the Middle East.
The Senate receded with an amendment changing the time period
for congressional disapproval of a project from 30 legislative days
to 30 calendar days.
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PROHIBITION ON USE OF FUNDS FOR NUCLEAR AID
The House amendment contained a provision which prohibited the
use of any funds authorized in the Foreign Assistance Act of 1974 to
finance the construction of, operation or maintenance of, or the sup-
ply of fuel for, any nuclear powerplant in Egypt or Israel.
The Senate bill did not contain a comparable provision.
The Senate receded.
FOREIGN MILITARY SALES ACT AMENDMENTS
Prohibition on the sale of defense articles to developed countries
The Senate bill contained a provision amending section 22 of the
Foreign Military Sales Act to prohibit the sale of defense articles
to any economically developed country if such articles were generally
available from commercial sources in the United States.
The House amendment did not contain a comparable provision.
The Senate receded.
Interest rates for credit sales
The Senate bill contained a provision which would amend' section
23 of the Act to establish a statutory minimum interest rate for credits
extended under the act unless the..:Eresident certified to the Congress
that the national interest required a ?Tesser rate of interest.
The House amendment did not contain a comparable provision.
The House receded.
Reduction of reserve guaranty
The Senate bill amended section 24(c) of the Foreign Military
Sales Act to reduce the requirement for obligation of funds as a reserve
against default from 25 percent to 10 percent of the principal amount
of each guaranteed loan effective July 1, 1974. All funds not in excess
of the principal amount of the contractual liability of all outstanding
guaranties were to remain in the reserve account.
The House amendment did not contain a comparable provision.
The committee of conference agreed to retain existing law with an
amendment to reduce the reserve guaranty requirement from 25 per-
cent to 10 percent, effective July 1, 1974. Funds in excess of 10 percent
of the principal amount of the contractual liability of all outstanding
guaranties shall be transferred to the general fund of the Treasury.
Adjustment of the reserve guaranty fund
The Senate bill amended section 37(b) of the Foreign Military
Sales Act to permit the adjustment of the reserve guaranty fund to
reflect the reduction in the reserve guaranty requirement from 25 per-
cent to 10 percent, for the period between July 1, 1974, and the date
of enactment of the Foreign Assistance Act of 1974.
The House amendment did not contain a comparable provision.
The, House receded.
Maximum repayment period for guaranteed private loans
The, Senate bill added a new subsection 24(d) to the Foreign Mili-
tary Sales Act which established a maximum period of 10 years for
guaranties, but permitted the issuance of guaranties for a period of up
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to 20 years if the President certified to the Congress that the national
interest required that the period of guaranty be longer than 10 years.
The House amendment did not contain a comparable provision.
The Senate receded.
Congressional approval of military sales
The Senate bill added a new section 25 to the Foreign Military
Sales Act which would require the President to submit a report on
any single cash or credit sale of defense articles or defense services to
any foreign country which exceeds $25 million 30 days prior to the
conclusion of any agreement to sell. The same procedure would apply
to every sale to any country that has purchased more than $50 million
of defense articles or defense services in a fiscal year. The Congress
can disapprove the transaction by concurrent resolution. The Presi-
dent may waive this requirement if he certified in writing to the
Congress that the vital interests of the United States are not served
by the submission of such a report. Only one waiver may be made
.....with. respect to any one country in any 1 fiscal year. This section also
repeals subsection 35 (b) of the Foreign Military Sales Act.
The House amendment amended section 35 of the act to require the
President to give advance notice to the Congress of any letter or offer
to sell defense articles or services of $25 million or more. The letter of
offer shall. not be made if Congress by concurrent resolution disap-
proves the sale within 20 legislative days. The provisions of this section
may be waived if the President determines that such a sale is in the
national interest and reports this to the Congress.
The Senate receded with an amendment to change the time that
Congress has to disapprove the sale from 20 legislative days to 20
calendar days.
Foreign military credit sales and aggregate ceiling
The Senate bill set an aggregate ceiling of $872.5 million on the
amount of foreign military sales credits that could be issued and
loans guaranteed in fiscal year 1975 and earmarked $300 million for
Israel, while simultaneously releasing that country from the contract-
ual liability to repay $100 million to the United States for the defense
articles or services so financed.
'The House amendment established an aggregate ceiling of $772.5
million and earmarked $200 million for Israel.
The House receded.
Latin American and African ceilings
The House amendment removed the $150 million ceiling on the
amount of military assistance and sales that can be made to Latin
American countries and restored the President's authority to waive
the $40 million ceiling on military assistance and sales programs for
African countries.
The Senate bill did not contain a comparable provision.
The Senate receded.
The Senate bill contained a. provision amending section 32 of the
Foreign Assistance Act of 1973 to require the President to submit an
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annual report to the Congress, setting forth fully the steps he has
taken to deny economic and military assistance to any country that
imprisons its citizens for political purposes.
The House amendment contained a provision adding.a new section
502 (B) to the Foreign Assistance Act to express the sense of the Con-
gress that the President should substantially reduce or terminate secu-
rity assistance to any government which engages in a consistent pattern
of gross violations of human rights.
The Senate receded.
GORGAS MEMORIAL INSTITUTE
The Senate bill contained a provision amending the Gorgas Me-
morial Act to increase the annual authorization for the Gorgas
Memorial Institute from $500,000 to $1 million.
The House amendment contained a provision amending the Gorgas
Memorial Act to increase the authorization from $500,000 to $2
million.
The Senate receded.
INTERNATIONAL COMMISSION OF CONTROL AND SUPERVISION ,(ICCS)
The Senate bill contained a provision authorizing a total of
$27,726,000 for the International Commission of Control and Supervi-
sion (ICCS), of which $16,526,000 is for U.S. payment to the Commis-
sion in fiscal year 1975 and $11,200,000 for reimbursement to the
Agency for International Development (AID) for expenses incurred
in fiscal year 1974.
The House amendment contained a provision adding a new sub-
section 803 (d) to the Foreign Assistance Act to authorize $27.7 million
for U.S. contributions to the ICCS.
The House receded.
POLICY ON ASSISTANCE TO AFRICA
The Senate bill contained a statement of policy on assistance to
Africa which called for a greater emphasis on African development
programs to provide the developing countries of Africa with an equi-
table share of U.S. economic assistance.
The House amendment did not contain a comparable provision.
The House receded with an amendment striking languages which
stipulated certain aid levels for the developing countries of Africa.
POLICY ON THE INDEPENDENCE OF ANGOLA, MOZAMBIQUE, AND GUINEA-
BISSAU
The Senate bill contained a provision which expressed the sense
of the Congress with respect to the independence of and U.S. assistance
to Angola, Mozambique, and Guinea-Bissau.
The House amendment did not contain a comparable provision.
The House receded with an amendment striking two paragraphs in
the statement which the committee believed lacked felicity of expres-
sion and making other minor changes in diction.
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CONVENTIONAL WEAPONS TRANSFER
The Senate bill contained a provision urging the President to
propose to the Geneva Conference of the Committee on Disarmament
that it consider discussions on limitations on conventional arms trans-
fer, and.requiring a report 6 months after enactment on steps taken to
carry out this provision.
The House amendment contained a provision amending section 511
of the Foreign Assistance Act to express the sense of the Congress
that the President propose a U.S. draft international agreement for
regulating ? the transfer of conventional weapons among the govern-
ments of the world. No report was required.
The House receded.
CARIBBEAN DEVELOPMENT BANK
The Senate bill contained a provision authorizing the President to
permit Puerto Rico to participate in the Caribbean Development Bank.
The House amendment contained a provision substantially the same
as the Senate provision, but required prior approval by the Secretary
of State.
The Senate receded.
ASSISTANCE TO PORTUGAL AND ITS FORMER COLONIES
The Senate bill authorized $5 million for grants and $50 million for
loans to Portugal and to countries which were Portuguese colonies
prior to April 25, 1974, limited Portugal's share to 50 percent of this
amount, and expressed support for the democratic government in
Portugal.
The House amendment did not contain a comparable provision.
The House receded with an amendment reducing the authorization
to $25 million, of which $5 million is to be in the form of grant
assistance.
The committee of conference also agreed to delete a provision in the
Senate bill which limited assistance to the Government of Portugal
to 50 percent of the amount authorized and appropriated and all of
the subsection expressing the sense of the Congress with respect to
support of the Government of Portugal.
The committee of conference would have been more receptive to
the level of assistance for Portugal if there had been a budget request
for aid to Portugal and the committees had held hearings on the
request.
INTEGRATION OF WOMEN
The Senate bill contained a provision requesting the President to
instruct each United States representative to an international orga-
nization, including the International Bank for Reconstruction and
Development (I.BRD), Asian Development Bank (ADB), Inter-
American Development Bank (IDB), International Monetary Fund
(IMF), the United Nations Organization (UNO) and the Organiza-
tion for Economic Cooperation and Development (OECD) to Operate
in a manner to encourage and promote integration of women into na-
tional economies.
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The House amendment did not contain a comparable provision.
The House receded.
POLICY WITH RESPECT TO COUNTRIES MOST SERIOUSLY AFFECTED
BY FOOD SHORTAGES
The Senate bill contained a provision calling upon the President to
review and reprogram U.S. food and fertilizer commitments for the
countries most seriously affected by the food shortages, and to use
diplomatic efforts to get other countries to do the same. This section
also required a report to the Congress 30 days after enactment of this
act, and then quarterly, on the following actions : a global assessment
by country of food needs for fiscal year 1975, currently planned pro-
graining of Public Law 480 commodities by country and by value,
and steps taken to encourage the countries to increase their participa-
tion in food assistance or financing food assistance.
This section also placed a $350 million limitation in fiscal year 1975
on the amount of concessional food aid and $90 million on the amount
of fertilizer that could be provided under foreign assistance programs
to countries other than those most seriously affected by the economic
crisis.
This section also called upon the President to proceed immediately
to implement the resolutions and recommendations of the World Food
Conference, and to report to the Congress within 90 days after en-
actment on the implementation of the resolutions.
The House amendment did not contain a comparable provision.
The House receded with amendments which :
Eliminated all references to other acts;
Deleted the $350 million limitation on food shipments and $90
million on fertilizer shipments and in lieu thereof directed that
not more than 30 percent of concessional food aid should be al-
located to countries other than those which are most seriously
affected by current food shortages, unless the President demon-
strates to the appropriate committees of the Congress that the use
of such food assistance is solely for humanitarian food purposes;
Changed the reporting requirements of the Senate bill.
LIMITATION ON ASSISTANCE FOR INDIA
The House amendment contained a provision limiting all assistance
under the Foreign Assistance Act and the Foreign Military Sales Act
to India to $50 million in fiscal year 1975.
The Senate bill did not contain a comparable provision.
The Senate receded.
EXCHANGES OF RAW MATERIALS
The House amendment contained a provision adding a new section
661 to the Foreign Assistance Act with the following subsections :
Subsection (a) authorizes the President to furnish assistance
to any country in exchange for raw materials that it controls,
when the President determines that the furnishing of such as-
sistance is in the U.S. national interest. The term raw materials
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means fossil fuels, metals, minerals or any other natural sub-
stance which is in short supply in the United States.
Subsection (b) authorizes the President to allocate any raw
materials transferred to the U.S. for any purpose authorized by
law, ;including sales.
Subsection (c) provides that funds received from the disposal
of any raw materials received pursuant to the provisions of this
section shall be deposited in the miscellaneous receipts in the U.S.
Treasury.
The Senate bill did not contain a comparable provision.
The Senate receded.
COUNTRIES IN DEFAULT
The House amendment contained a provision expressing the sense
of Congress that any aid recipient country which is in default, 90 days
prior to enactment of the act, of any payment of interest or principal
of U.S. loans or credits, should pay promptly. The President is asked
to enter promptly into negotiations with delinquent countries to help
effectuate, payment, or to gain equivalent benefit by transfer to the
United States of goods, services, concessions or actions, in lieu of
payment.
The Senate bill did not contain a comparable provision.
The Senate receded.
TiiOMAs E. MORGAN,
CLEMENT .T. ZABLOCKI,
WAYNE L. HAYS,
DANTE B. FASCELL,
PETER 1-1. 13. FRELINGIIUYSENI
NVM. BROOMFIELD,
EDWARD J. DERWINSKI,
Managers on the Part of the House.
JOHN SPARK31ANT,
FRANK CHURCH,
7STUART SYMINGTON,
]RUBERT H. HUMPIIREY,
GEORGE D. AIKEN,
CLIFFORD P. CASE,
J. JAVITS,
Managers on the Part of the Senate.
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