FOREIGN ASSISTANCE ACT OF 1974
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Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP79-00957A000100020032-3
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RIFPUB
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K
Document Page Count:
18
Document Creation Date:
December 16, 2016
Document Release Date:
June 9, 2005
Sequence Number:
32
Case Number:
Publication Date:
December 3, 1974
Content Type:
OPEN
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Approved For Release 2005/06/16 : CIA-RDP79-00957A000100020032-3
inber 3, 1974 CONGRESSIONAL R ;?CORD - SENATE
Belimon Fulbright Talmadge
Cotton " Humphrey Thurmond
EastlauiL Magnuson
Ervin Moss
The PRESIDING OFFICER. On this
vote there are 51 yeas and 39 nays. Two-
thirds of the Senators present and vot-
ing not having voted in the affirmative,
the cloture motion is not agreed to.
Mr. MANSFIELD. Mr. President, will
the Senator-
Mr. ALLEN. Mr. President, I call for
the yeas and the nays on the conference
report if and when it comes up.
The PRESIDING OFFICER. Is there
a sufficient second? There is a sufficient
The PRESIDING OFFICER. Under
the previous order, the Senate will now
proceed to the consideration of S. 3394,
which the clerk will state by title.
The legislative clerk read as follows:
Calendar No. 1232, S. 3394, a bill to amend
the Foreign Assistance Act of 1961, and for
other purposes.
The Senate proceeded to consider the
bill which had been reported from the
Committee on Foreign Relations with an
amendment to strike out all after the
enacting clause and insert in lieu there-
of
That this Act may be cited as the "Foreign
Assistance 'Act of '1974".
root KiSm' HTf'rari'toN
SEc. 2. Section 163 of the Foreign Assist-
ance. Act of 1961 as amended-
(1) by inserting the subsection designa-
tion F'(a)" immediately before "In";
(2) by striking out "$291,000,000 for each
of the fiscal years 1974 and 1975" and insert-
ing in lieu thereof "$291,000,000 for the fiscal
year 1974, and $530,000,000 for the fiscal year
1975"; and
(3) by adding at the end thereof the fol-
lowing,
" (b) The Congress finds that, due to risifig
world food, fertilizer, and petroleum costs,
human suffering and 'deprivation are grow-
ing in the poorest and most slowly develop-
ing countries. The greatest potential for sig-
nificantly expanding world food production
at relatively low cost lies In increasing the
productivity of small farmers wno constitute
a majority of the nearly one billion people
livin=g in those countries. Increasing the em-
phasis on rural development and expanded
food production in the poorest nations of
the "developing world is a matter of social
justice as well as'afi' important factor in
slowing the rate of inflation in the Indus-
trialized countries, In the allocation of funds
under this section, special attention should
be given to increasing agricultural produc-
tion in the countries with per capita incomes
under $300 a year and which are the most
severely affected by `sharp increases in world-
wide 'commodity prices.
t (c) Of the total amount obligated under
thiI Act during any fiscal year after fiscal
year 1975 to` procure fertilizers for, and to
provide such fertilizers to, foreign countries,
not more than one-third of such amount
may be obligated with respect to South
Vietnam." -
vjbPVLATIbN PLANNING
$Eb. 3. The Foreign Assistance Act of 1961
is amended as follows;
(1) Insection104, strike dirt"(5145,000,000
for each of the" fiscal years 1974 and 1975"
and insert in lieu thereof "$145,000,000 for
S20411
the fiscal year 1974, an,, $165,000,000 for the "(e) Not to exceed $3,000,000 of the guar-
fiscal year 1975". anty reserve established under section 223
(2) In section 292, sti i.e out "$130,000,000" (b) shall be available to make such pay-
and insert in lieu they*'cd "$150,000,000", ments as maybe necessary to discharge lia-
EDUCATION AND a +3AN RESOURCE!% bilities under guaranties issued under this
DEVELOP PFENT section or any guaranties previously Issued
under section 240 of this Act.
SEC. 4, Section 105 t-1. the Foreign Assist- "(f) Funds held by the Overseas Private
ance Act of 1961 is amvrc. 617 'iaa.VrNATIOt of Atrretoarzv- to authorization for that fiscal year. After
shall also submit a quarterly report to the i) .i) The President shn2 gradually reduce be beptondu ed outside 1877, outside the such United mated shall
Congress listing by country the total value si:stano other titan military training) eo. by specific authorization a States.
of all deliveries of excess defense articles, p-os`Ided under this chapter so that, not excepr ey on 51of the Foei of si to
disclosing both the aggregate original ac- la.er than September 30, 1977, no assistance (6) section 511 of the Foreign Assistance
qutaition cost and the aggregate value at {caller than military training) sail be Act of 1961 Is amended by striking out of
the time of delivery." led uzuler this chapter, pro- the section caption "Assistance" and insert-
(b) Sections 8 and 11 of the Act entitled t2) Paragraph (1) of tin.a etlbsectiou shall u leg In lieu ht e thereof
text " "milita 2milita ng", and by "trik-o "An Act tp amend the Foreign Military Sales ?' - apply to funds obitg ated )prior to October "such of assistance" and "military assistance" e t
Act, and for other 1. I4t77 inserting in ile?t
Purposes", Approved Jan- thereof "military training" and "such train-
e1261e9d71 (84 Stat. 2053), t.s Amended, 't b) For stall of the fis,s,i years 1975, 1976, ing'", -espectively
p and 1977, the President is authorized to II- (7) section 636(g) (1) of the Foreign
STOCKPILING Or DEFENSE ARTICLES FOR FORt.ecN i.,,.n',e procuremeeats of detects, articles and Assistance Act of 1961 Is amended by strik-
CotrxtRIES defense Services (other than military train-
ing out "defense articles and defense services
SFC. 12. Chapter 2 of part 11 of the Foreign t'it') by any foreign countrn? receiving de- on a grant or sale basis" and inserting in lieu
fee e; articles or defense servicx,s during lie- thereof military training"; and
Assistance Act of 1961, as amended by see- r,il .ear 1974 under this chapter on terms (8) section 644(m) of the Foreign g ou-
adding at the end thereof the followi r:ew
ng pr"stding for payments to the United States once Act of 1961 i8 amended by striking out
section: (
tho valile and services iovernniew in United Staes doIlan (1) of subparagraph (1) and by striking out of
"Sac. 515. STOCKPILING or Dss'az se: Aat'u tgs vksliio Shall of
r otcexceed ldu tg each such n h wherever it appears. (2) and (3) " nonexcess'
FOR FOREIGN CouNTarx3.-(a) Notwitllatand- dear the value of such articles and sen?- ttheWINtappeaze.
ing any other provision of law, no funds. 1:rs (other than nttiitarv t fining) fur- TERLSIATiON OF MILITARY AS6ISTA2 CE TO
other than funds made available under this n:..ned that country in fiscal year 1974 un- SOUTH KOREA
chapter or section 401(a) of Public Law der thi chapter, (2) at a rate of interest of Szc. 15. Chapter 2 of part 11 of the Foreign
89-387 (80 Stat. 37), or any subsequent cor- ese than four per centum a year, and A?sistance Act of 1961, as amended by sec-
responding legislation, may be obligated for within ten years after delivery of the tions 11(a), 12, 18, and 14(a) of this Act,
the purpose of stockpiling any defense article ci,? ec se articles; or rendering, of the defense is fttrtner amended by adding at the end
or war reserve material, Including the ac- rt t t, es thereof the following new section;
qulsition, storage, or maintenance of any l') (I) By not later titan Sdptember 80, -SW.
1' 518? TBAMINATION OF MILITARY AssIST-
war reserve equipment, secondary Items, or 1(>?; 7. all the functk)ns of a rnl.lltary assist- ANCz TO SOUTH 1?oadA.-(a) The total of (1)
munitions, If such article or material Is set a11,.e advisor, group, a military mission, or the amount unt of funds obligated under this
aside, reserved, or in any way earmarked or o7 her c>rgan?ssttlon of the United States chapter to furnish assistance to South Korea,
intended for future use by any foreign coon- (;_.ern ment to a foreign country performing and (21 the value of excess defense articles
try under this Act or such section. se tit sties similar to any ma h group or mss- furnished to South Korea under this chap-
"(b) The cost of any such article or ma- si.,,,, shall be transferred to the Chief of the ter, shall not exceed-
terlal set aside, reserved, or In any way err- United States Diplomatic Mission to that "1A) S91,500.000 during the fiscal year
marked or Intended by the Department of country. Upon the transfer of such tune- 1975;
Defense for future use by, for, or -on behalf tires, that group, mission, or organization, as "(B) $61.000,000 during the fiscal year
of the country referred to in section 401 the case may be, shall cease to exist. 1976; snd
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December 3, 1974 . . CONGRESSIONAL ECORD -? SENATE 0. i1fulkiL0
"(C) $30,600,000 during the fiscal year meat programs in tht 3rought-strle ea na- "SEC. 660. PROHIBrTING POLICE TitAINING.-
1977 tions of Africa." (a) None of the funds made available to carry
"(b) the, aggregate total of credits ex- (c) The Foreign As i .tang Act of 1961 is out this Act, and none of the local, currencies
tended, including participations in credits, amended by adding d tter section 339B a generated runder r this ad vices hall pbevue any
and the principal amount of loans guaran- new section 639C as f -lows: provide teed, under the Foreign Military Sales Act "SEC. 639C. RELIEY m REHABILITATION IN financial support, for police, prisons, or other cement
forces
for with, respect to South Korea shall not finBANGLADESH AD CYPR ds that the recentt J:roding)inTthe 3peoples ernmentror any p og am of nternalgintelli-
e "(l) - : or surveillance on behalf of any for-
" (1) $42,500,000 durixig the fiscal year Republic of Bangladesh, the h the civil and gence
1975; International. strife n tRepublic of eign government within the United States
"(2); $28,300,000 during the fiscal year Cyprus, have causes great suffering and or abroad.
1976; and hardship for the pe plea of the two Re- "(?b) Subsection (a) of this section shall
"(3) $14,150,000 during the fiscal year publics which cannot ;,_ alleviated with their not apply-
1977. internal resources. Tb,a President shall make "(1) with respect to assistance rendered
"(c) On and after October 1, 1977, no every effort to develop and implement pro- under section 515 (c) of the Omnibus Crime
assistance shall be furnished South Korea grams of relief and r: habilitation, in con- Control and Safe Streets Act of 1968, or with
under this chapter, and no credits, includ- junction with other irations providing as- respect to any authority of the Drug En-
ing participations in credits, shall be ex- sistance, the United 1: raions. and other con- forcement Administration or the Federal
tended, and no loans shall be guaranteed, cerned international and regional organize- Bureau of Investigation which related to
under the Foreign Military Sales Act with tions and voluntary genctes, to alleviate crimes of the nature which are unlawful
respect to South Korea. The preceding sen- the hardships caused in these two nations. under the laws of the United States; or
tenceyshall not apply with respect to funds "(b) NotwithStaning any prohibitions "(2) to any contract entered into prior to
obligated prior to such date or restrictions coot air .1 in this or any other the date of enactment of this section with
sxeuirrv sVPPORTINC ASSISANCE Act, the President is '.uthorized to furnish any person, organization, or agency of the
assistance on such t. me and conditions as United States Government to provide per-
SEC, 16. Section t82'01! the Foreign Assist- he may determine, f. ?r disaster relief, reha- sonnel to conduct, or assist in conducting,
ante Act of 1961 is amended by striking out bilitation, and relater: programs in the Peo- any such programs.
"for the fiscal year' 1$74 not to exceed $125,- ple's Republic of Bangladesh and the Repub- clause (2), subsection (a)
000,000, of Which not less than $50,000,000 lic of Cyprus." Notwithstanding d ing any claus(2), or extension
shall be available solely for Israel" `and in- (d) The Foreign A .."`stance Act oi 1961 is shall contract renewal in or
parson of
serting, in lieu thereof "for the fiscal year amended by adding rater section 1339C, as an creferree to
enact-
such date of graph
1975 not to exceed $675,000,000". added by subsection r"") of this section, the entered any y coap into referred
melt..
TRANSFER BETWEEN ACCOUNTS following new seetloT ed.
SEC, 17. (a) Section 610 of the Foreign As- "SEC. 839D. DISAste , RELIEF AND I1EHABIL- (b) Section 112 of such Act is repealed.
ITATION-NOtwithstal Ealing any prohibitions IA2ITING INTELLIGENCE ACTIVITIES
t961 idd Be follows:
the For-
sistance Ac of 1s amene. (1) In subsection (a) , immediately after or restrictions contain: din this or a: Iy other SEC. 23. Chapter 3 of part III of
"any other provision of this Act", insert "(ex- Act, the President is. authorized to furnish eign Assistance Act of 1961, as amended by
cept funds made available under chapter 2 assistance, on such t- ems and conditions as sections 21(a) and 22 of this Act, is further
of part II of this Act) ". he may determine foe' iisaster relief, rehab"- amended by adding at the end thereof the
(2) Add at the end thereof the following itation, and related programs in the case of following new section:
new subsection: disasters that requirF- large-scale relief and "SEa 661. LIMITATIONS UPON INTELLIGENCE
"(c) Any funds which "the President has rehabilitation effcrts which cannot be met AcTrvrrxEs.-(a) No funds appropriated under
notified Congress pursuant to section 653 adequately with the ends available for ob- the authority of this or any other Act may
that he intends 'to provide in :military as- ligation under secticr, 451 of this Act." be expended by or on behalf of the Central
sistance to any country may-be transferred (e) The Foreign A distance Act of 1961 is Intelligence Agency or any other agency of
to, and consolidated with, any other funds amended by adding ater section 339D, as the United States Government for the con-
. ._ ,,,e1 a.a h anhaantinn 'dl of this section. the fnraivn countries nur-
J1e.nas not,uleu ?-is con I.....~....... ,,.,
section that he intends to provide to that following new sectic suant to section 102(d) (5) of the National
country for development assistance pur- "SEC. 639E. INTER) :;TIONALIZATION OF As- Security Act of 1947 (50 U.S.C. 403), other
sISTANcE.-Assistants for the purposes set than operations intended solely for obtaining
ses
poses Section 614 of such Act is amended forth in sections 639.?, 6398. 639C, end 639D necessary intelligence. Notwithstanding the-
(b) Section
shall be distributer: wherever practicable foregoing limitation, the President may au-
e
th endf sbtion (a) the
this (a) section under the auspices of` and by the United Na- thorize and direct that any operation in a
e ousecbyby adding end authority subsection
following: The tions and its special red agencies, other In-
shall not be used to waive the limitations ternational organize eons or arrangements, other operation in a foreign country be in-
on transfers contained in section 810(x) of multilateral institut ns, and private volun- itiated, and funds may be expended therefor,
this Act.". tary agencies." if, but not before, he (1) finds that such
ASSISTANCE TO GREECE ACCESS TO CERTAIN `,` ILITARY BASES ABROAD operation is important to the national secu-
2
a) Cb?^~,? 3 of part. rrr of the rite, and (2) transmits an appropriate report
Szc 1a_ Section 620(v) of the Foreign As- S
(
EC
' t
i
t
61 nded -
of
. -
au a
s
lot eJ"n ~s s
y,p -. LIMITATION UPON ASSISTANCE TO OR FOR CHILE by adding_ at the ei 1 thereof the :'ollowing description of the nature and scope of such
SEC. 19. Notwithstanding any other pro- new section: operation, to the committees of the Congress
vision of law, the total amount of assistance "SEC. 659. ACCESS TO CERTAIN MILITARY haying jurisdiction to monitor and review
thorized the intelligence activities of the United
f
d
s au
un
None of the
that may be made available for Chile under BASES ABROAD.- this or any other law during fiscal year 1975 to be appropriated fr-.? foreign assistance (in- States Government.
may -not exceed $55,000,000, none of which cluding foreign military sales, credit Sales "(b) The provisions of subsection (a) of
maybe made available for the purpose of and guaranties) uncir-r any law may be used this section shall not apply during military
providing military assistance (including se- to provide any kind of assistance to an operations by the United States under a
eurity supporting assistance, sales, credit foreign country in v .ich a military base 14 declaration of war approved by the Congress
sales or guaranties or the furnishing by any located if- or an exercise of powers by the President
meads of excess defense articles or items "(1) such base wa-. constructed or is being ?1~ ,,q w
from stockpiles of the Department of De- maintained or opera esd with funds furnished - WAIVER OF PROHIBITION AGAINST ASSISTANCE To
fense). by the United Srat and. COUNTRIES ENGAGING IN CERTAIN TRADE
f the United States carry
l
i
f
"
o
gn
the Fore
(2) personne
SEC 24. Chapter 3 of part III o
RECONSTRUCTION, RELIEF AND 1EHABILrTATION
SEn 20. (a) 51961 I n e Foreign As- out military operatic' :3 from such base: Assistance Act of 1961, as amended by sec-
sistance Act,oi 1961 is a xriended by inserting unless and until tip=e President has deter- tions 22 and 23 of this Act, is further
dlately after "of this part." the follow- mined that the govt-nment of such country amended by adding at the end thereof the
ing: "The balance of such receipts for fiscal has, consistent with security authorized ac- following new section:
.year 1973 is authorized to be made available cess, on a regular 1 >5is, to bona lido news "SEC. 662. WAIVER OF PROHIBITION AGAINST
solely for the purposes of sections 6396, media corr'esponden i of the Unit,ad States ASSISTANCE TO COUNTRIES ENGAGING IN CER-
63901 and 6391 of this Act." to such military bs e." TAIN TRADE.-Any provision of this Act or the
is Leper,,; the e Foreign Assistance Agricultural Trade Development and Assist-
(b) Section 6395 of the Foreign Assistance Act (b) Section
Act of 1961 is amended by- adding at the ance Act of 1954 which prohibits assistance
end thereof the following: "Notwithstanding PROHIBITING POLICE TRAINING to a country because that country is engaging
any prohibitions or restrictions contained Sm. 22. (a) Chat r 3 of part III of the in trade with a designated country may be
In this or any other Act, the President is Foreign Assistance ct of 1961, as amended waived by the President if he determines
-authorized to furnish assistance on such by section 21(a) f this Act, is further that such waiver is in the national interest
terms and conditions ashe 'may determine, amended by adding -.t the end thereof the and reports such determination to the Con-
for reconstruction and economic develop- following new sectl it: gress."
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WNGRESSIONAL RECORD - SENATE December 3, 1974
POLICY WITH ZESPECE TO INDOCRINA
Src. 26. (a) The Congress finds that the
cease-fire provided for in the Paris Agree-
ment on Ending the War and Restoring Peace
In Vietnam has not been observed by any at
the Vietnamese parties to the conflict. lillli-
taty operations of an offensive and defensive
nature continue throughout South Vietnam,
In Cambodia, the civil war between insurgent
forces and the Lou Noi government has
intensified, resulting in widespread human
suffering and the virtual destruction of the
Cambodian economy.
(bi The Congress further finds that con-
tinuation of the military struggles in douth
Vietnam and Cambodia are not in the
Interest of the parties directly engaged :n the
conflicts, the people of Indochina, or world
peace. In order to lessen the human suffering
in Indochina and to bring about a gejiuiae
peace there, the Congress urges and requests
the President and the Secretary of State to
undertake Immediately the following
measures:
(1) to initiate negotlatlont. with repre-
sentatives of the Soviet Union and the
People's Republic of China to arrange a
mutually agreed-upon and rapid de-escals-
tinn of minters assistance on the part of the
three principal suppliers of arnns and mate-
rial to all Vietnamese and Cambodian parties
-engaged in conflict;
(2) to urge by all available means that the
Government of the $b,mer Republic enter
Into negotiations with representatives of the
Miner Government of National Union for
the purpose of arranging an Immediate
cease-fire and political settlement of the
conflict; and to use all available means to
establish contact with the Khmer Govern-
InsEt 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 or
a respected third country for the purpose of
bringing an end to hostilities and reaching
a political settlement;
(8) 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 Vietnam 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, in-
bilateral contributions to the area's economic MMITATIONS WITH RESPECT TO SOUTH VIETNAM
recovery; and to provide continuing advice Sec, 29. Part V of the Foreign Assistance
to the recipient nations on the use of their Act of 1961 Is amended by adding at the end
ova and outside resources; thereof the following new section:
(2) to develop. In coordination with the
recipient governments, other donors, and the TO ? 8SOUTH . ON. V>zrrLraSrNdM(a) ._(a) B Ntoit otwit t iYdinT
Multilateral financial institutions, a corn- any other provision h funds nu
prehensive plan for Indochina reconstruction thorized d to be appropriated of law, few, by this s or any
t
s:nd economic development: other r law may y be be obligated In any amount
Other
(3) to develop country-by-country recon- in excess of $1,274,900,000 during the fiscal
etruction and development plan, including year ending June 30. 1978, for the purpose
detailed plains for the development of tndi- of "arrying out directly or indirectly any
vidual economic sector,,, that can be used to economic or military assistance, or any op-
identify and coordinate Specific economic oration. project, or program of any kind,
development projects and programs and to or for providing any goods, supplies, ma-
direct United States resources Into areas of teriale, equipment, services, personnel, or ad-
a..ucimum benefits; viaers In, to, for, or on behalf of South
(4) to shift the emplutsms of United States Vietnam. Of that amount, there shall be
wA programs from consumption-oriented ex- available during such fiscal year-
penflttures to economic development: 'c,000 for the fiscal year ing institutions should be raised to a level
the country concerned has given assurances 1975"; and at least equal to those for Asia and Latin
satisfactory to the President that such vio- (B) in subsection (b)- America. A special effort should be made to
lation will not recur, and that, if such vio- (I) strike out `$7:0,000,000 for the fiscal provide more assistance to the sixteen of the
lation involved the transfer of'sophisticated year 1974" and inset" in lieu thereon "$872,- world's twenty-five least developed countries
weapons without the consent of the Press- 500,000 for the fiscal ooar 1975"; and that are in Africa and to the fourteen African
dent, such weapons have been returned to the (ii) add at the en's thereof the following nations that are judged to most seriously
country concerned." new sentence: "Of tl: s funds made available affected by rising costs of food and fuel.
(2) Section 22 is amended by adding at the under subsection (at of this sectio:a, $100,- The President is requested to make a report
end thereof the following new subsection: 00p0()0 shall first be obligated with respect to Congress on action taken to provide the
"(c) No sales of defense articles shall be to financing the pro- +rement of defense ar- developing countries of Africa with an equi-
made'to the government of any economically titles and defense ar;rvices by Israel under table share of United States economic as-
developed country under the provisions of section 23 of this except that Israel sistance at the time that the Agency for
this section if such articles are generally shall be released fron-. contractual il[ebility to International Development's operational year
available for purchase by such country from repay the United Sir, es Government for the budget for fiscal year 1975 is submitted to
commercial sources in the United States." defense articles and defense services so fi- Congress and again with the submission to
(3) Section 23 is amended to read as nanced." Congress of the proposed Agency for Inter-
,:follow, s: (b) Obligations it itially charged against national Development budget for fiscal
"SEC, 23.. CREDIT SALES.--The President is appropriations made available for purposes year 1976.
authorized to finance procurements of de- authorized by s6 tlc'i 31(a) of the Foreign POLICY ON THE INDEPENDENCE OF ANGOLA,
fense articles and defense services by friendly Military Sales Act i er' June 30, 1974, and MOZAMBIQUE, AND GUINEA-BISSAU
foreign countries and international organiza- prior to the enactme rtof- the amendment of
that the
40. (a) (1) Portugal's Congress finds recognition that the
tions on terms requiring the payment to the that Act by paragrals,c (5) of subsection (a) SEC.
United States ffo vernment in ;United States of this section in an .mount equal to 25 per to lode endence of the African of the
dollars of cefitum of thee princ? gal amount of contrac- right p
"(1) the value of such article; or services tual liability related to guaranties issued tories of Angola, Mozambique, and Guinea-
within a period not to exceed ten years after pursuant to section '.4(a) of that Act shall Bissau marks a significant advance toward
the delivery of such articles or the rendering be adjusted to refiec? such amendment with the goal of self-determination for all the
of roper credit to ti ~ appropriations made peoples of Africa, without which peace on the
such services; and P
"(2) interest on the unpaid Balance of that available in the fsce