2 STATE DRAFT PROPOSALS: (1) THE LEBANON EMERGENCY ASSISTANCE ACT OF 1983 AND (2) THE INTERNATIONAL SECURITY AND DEVELOPMENT COOPERATION ACT OF 1983

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP95B00895R000300040020-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 64
• Document Creation Date: December 21, 2016
• Document Release Date: September 12, 2008
• Sequence Number: 20
• Publication Date: January 27, 1983
• Content Type: MEMO

.A UT1VE OFFICE OF THE PRFS1r rr
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
? ?~.. -r~nnVGmr-" 1 F'riu UUDGET
WASHINGTON. D.C. 20503
January 27, 19.8
TO:
LEGISLATIVE REFERRAL MEMORANDUM
Legislative Liaison Officer-
Agency for International Development
Department of Defense
National Security Council
Department of Agriculture
Department of the Treasury
Arms Control and Disarmament Agency
Department of Justice
Department of Commerce
Office of Personnel Management
Central Intelligence Agency
_D
X37
SUBJECT: 2 State draft proposals: (1) the Lebanon Emergency
Assistance Act of 1983, and (2) the International
Security and Development Cooperation Act-of 1983.
(NOTE: These draft proposals are needed to support
the President's budget for fiscal year 1984..
Accordingly, your prompt review is essential for
timely submission.)
The Office of Management and Budget requests the views of your
agency on the above subject before advising on its relationship to
the program of the President, in accordance with OMB Circular A-19.
A response to t -s our views is needed no later than
C.O.B. FRID , FEBRUARY 4, 1983. Ph ne comments are acceptable.
Questions should be'- referred to Tracey Lawler (395-4710)
the legislative analyst in this office.
.RONALD K. PETERSON FOR
Assistant Director for
Legislative Reference
Enclosures
cc:
J.
S.
R.
Eisenhour
Farrar
Greene
J. Barie
B. Dinkelacker
(M Al
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
SPECIAL
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
I
THE SECRETARY OF STATE
WASHINGTON
Dear Mr. Speaker:
I herewith transmit, on behalf of the President, two bills:
a bill to authorize appropriations for additional economic and
security assistance to Lebanon for the fiscal year 1983, and a
bill to authorize appropriations for international development and
security assistance programs for the fiscal years 1983 and 1984.
These bills would authorize programs which are essential
elements in the Administration's overall foreign and defense
policy. Through security assistance, the United States helps
allies and friendly nations to defend themselves against external
threats and to deal with the economic, social, and political
weaknesses which lead to instability. The economic and
development assistance programs express the traditional
humanitarian concerns of the American people by playing an
essential role in combatting hunger, disease, and poverty, while
at the same time assisting developing countries to achieve
equitable economic growth. These programs seek to reach these
objectives by, among other things, emphasizing the development of
essential institutions and productive, self-sustaining private
sectors in these countries. Our contributions to international
financial institutions help foster global economic stability.
Additional assistance to Lebanon is important to our efforts to
help the Government restore economic and political stability and
effective control of its territory.
The Administration's security and development assistance
programs serve important United States national interests. These
programs supplement and complement other programs and enhance the
effectiveness of our defense establishment and our diplomacy. In a
time of budget scarcity, these programs have been rigorously
scrutinized and carefully planned to make the most efficient use
of resources.
The Lebanon Emergency Assistance Act of 1983 would authorize
appropriations for additional economic and military assistance to
Lebanon in fiscal year 1983. The United States has made a major
commitment to assist Lebanon to rebuild its shattered economy and
its armed forces. This bill would authorize an additional
$150,000,000 in appropriations for economic support funds to aid
in the revival of the Lebanese economy, critical to the stability
of that nation and the Middle East. The delicate negotiations for
withdrawal of foreign forces from Lebanese territory depend on
Lebanon's ability to preserve the integrity of its borders and
maintain internal order. To achieve these ends, we have begun to
assist the Lebanese Armed Forces to rebuild and modernize. The.
The Honorable
Thomas P. O'Neill, Jr., Speaker,
House of Representatives
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
-2-
reorganize and modernize. The $1,000,000 authorized in this bill
for international military education and training, and
$100,000,000 in additional authority to guarantee loans for
defense articles and defense services will supplement Lebanese
funds and prior-year guarantees, and will be used to reequip and
train five brigades of the Lebanese Armed-Forces (LAF) by
mid-1983. This will permit the LAF to extend the central
government's authority in areas now occupied by foreign forces and
to maintain Lebanon's independence and public order. This
assistance is not only vital to Lebanon, but is an essential
component of our effort to bring security and peace to the nations
of the Middle East.
The proposed International Security and Development
Cooperation Act of 1983 includes proposed amendments to the
Foreign Assistance Act of 1961 (FAA), the Agricultural Trade
Development and Assistance Act of 1954 (P.L. 480), the Arms Export
Control Act (AECA), and the Internal Revenue Code of 1954 (IRC).
This bill would authorize additional appropriations for
development and security assistance for fiscal years 1983 and 1984
and make certain changes in the authorities governing those
programs. .
The bill is composed of eight titles. Title I consists of
authorizations for military sales and related programs under the
FAA and the AECA. Title ii authorizes a ...new .-a,n.ti-terrorism law
enforcement assistance program. Title III provides autho-
rization for the economic support fund. Title IV contains
authorizations for the development assistance programs. Title V
contains miscellaneous amendments to the FAA, including
authorizations for the international narcotics program and
operating expenses for the Agency. for International Development.
Title VI contains amendments to P.L. 480, the IRC, and the
International Security and Development Act of 1980. Title VII
contains supplemental authorizations of appropriations for fiscal
year 1983 for the guarantee of loans under the AECA, for the
military assistance program, and for the economic support fund.
Title VIII authorizes appropriations for fiscal year 1985, in
accordance with the requirements of the Congressional Budget Act
of 1974, and includes the effective dates for the various
provisions of this Bill.
An effective foreign assistance program requires adequate
funding levels, the flexibility to allocate funds to meet priority
needs, and the ability to respond to unforeseen contingencies.
When we forecast future needs far in advance, as we must, we
cannot assume that circumstances will be exactly as projected.
Reduced funding levels, coupled with extensive and detailed
legislative earmarking for country programs, prevents the
Administration from executing the security assistance program in a
manner consistent with our most important interests.
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
The fiscal year 1983 appropriations made by the, Inuing
resolution, P.L. 97-377, were seriously inadequate for important
security assistance programs. With these funding levels, the
United States will be unable to respond to the economic and
military difficulties of important friends and allies, to the
detriment of important U.S. interests. The effects of the funding
shortfall will be to decrease political and economic stability in
the countries affected, reduce their ability to defend themselves
and cooperate with us in achieving common objectives. We will
find it more difficult and costly to fulfill our security
objectives. The bill contains authorizations for supplemental
appropriations of $167,000,000 for the military assistance
program, and $294,500,000 for economic support funds. The bill
would also authorize $525,000,000 in off-budget loan guarantees
under the foreign military sales program. The total is small when
compared to our total national security expenditures, but the
value of these funds , in terms of the political, economic and
military return to the United States, is very large. In addition
we are seeking $245,000,000 to fulfill a commitment for the Sixth
Replenishment of the International Development Association as well
as $4,500,000 for the International Atomic Energy Agency.
The bill contains authorizations for fiscal year 1984
security assistance programs and other amendments, including:
-- $1,000,000,000 for the foreign military sales credit
program;
-- establishment of 'a limit of $4,436,000,000 for fiscal
year 1984 on the total amount of loans for which
guarantees may be made;
-- forgiveness of loan repayment for Israel and Egypt,
and grant of more favorable terms to Korea for
repayment of loans;
-- creation of a new section in the FAA to authorize
exchanges of professional military education on a
one-for-one (barter) basis with foreign countries;
-- $46,200,000 under the FAA for international
peacekeeping operations and permission to draw down
commodities and services of up to $25,000,000 in
value, if required in an emergency;
-- #ovaj-of the People's Republic of China from the
category of countries to which assistance is
prohibited;
-- conversion of legislative earmarks from fixed to
proportionate requirements during periods when funds
are appropriated by a continuing resolution;
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
- 4 -
amendment of paragraph 21(e)(1)(A) of the AECA to
define administrative charges in terms of additional
costs which would not otherwise be incurred by the
United States;
-- amendment of the provisions of the AECA to reduce the
number of pricing systems, from four to two, for
sales of military training;
With respect to the authorizations requested in this bill
for security assistance programs for Greece and Turkey, I
hereby certify, in accordance with section 620C(d) of the FAA,
that the furnishing of such assistance to Greece and Turkey
will be consistent with the principles set forth in section
620C(b) of the FAA. The explanation of the reasons for this
certification in each case is contained in the congressional
presentation materials for the fiscal year 1984 security
assistance programs.
The bill includes authority for fiscal year 1984 to
establish an anti-terrorism law enforcement assistance
program. The need for this new program becomes progressively
more urgent. International'terrorism is a frightful weapon
that strikes at the foundations of societies and governments.
The $5,000,000 authorized for this purpose is a relatively
modest amount when compared to the need and will provide
extremely useful assistance to friends and allies.
The development assistance portion of the bill contains
various provisions that increase the effectiveness of the AID
program and emphasize the President's commitment to foster the
growth of productive, self-sustaining private sectors in
developing countries' economies. It also authorizes funding
for fiscal year 1984 for development assistance functional
accounts, the Sahel account, American Schools and Hospitals
Abroad, International Organizations and Programs, International
Disaster Assistance, the Trade and Development Program,
Operating Expenses, and the African Development Foundation. It
increases the total amount of housing guarantees authorized to
be outstanding as well as the total amount of guarantees
authorized by section 222A of the FAA, the Agricultural and
Productive Credit and Self-Help Community Development
Programs. The bill extends both of these programs and makes
the latter, currently restricted to Latin America, a world-wide
program.
For financing certain types of private enterprise
projects, the bill proposes the establishment of a revolving
fund derived from amounts appropriated under Part I
authorities, fee income, and repayments of loans from the
fund. Included in this provision is the authority to use the
funds to acquire equity, which is otherwise prohibited by the
FAA. These authorities would permit the leveraging of small
amounts of appropriated funds for projects designed to engage
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
the private sector in the development process. The authority
to reuse loan proceeds and fee income emphasizes that the
operations and management of the fund are intended to be
conducted on a business-like basis.
The bill authorizes the establishment of a special reserve
fund under the International Disaster Assistance account. The
purpose of the reserve is to ensure that sufficient funds are
available to meet emergencies at the end of fiscal years while
limiting disruptions to other accounts. It also proposes that
AID may prescribe interest rates for the housing investment
guaranty program; extends the authority to use local currency
generations without an appropriation. The bill makes minor
technical changes in section 611 of the FAA on plans and cost
estimates and provides more flexibility in the administrative
use of funds. It also eliminates certain requirements for
reports and repeals several obsolete provisions.
The bill proposes one change to P.L. 480, to amend Title
III to permit loan forgiveness at the time the recipient
government undertakes specified policy changes, instead of at
the time that local currencies are expended as is presently
required.
The bill also amends the IRC to exempt participant trainee
grants from withholding requirements and exclude such amounts
from gross income. Current provisions do this up to specified
dollar amounts, which, at the time they were enacted, were
sufficiently high to completely exempt AID grants. However,
inflation has eroded these limits. Withholding income taxes
for each participant trainee would result in high adminis-
trative costs for these'programs.
The programs authorized by these two bills have been
carefully designed to meet priority national interests of the
United States within the reduced resources available in this
time of budget scarcity. The programs are not intended as
substitutes for a strong United States defense establishment or
for maximum effort by recipient nations to make the best, most
productive use of their own resources. The foreign assistance
programs contained in these bills are cost-effective, efficient
means to complement our military posture and promote the
economic, political, and social stability of friends and
allies. I urge prompt enactment of both bills.
The Office of Management and Budget advises that enactment
of this legislation would be in accord with the program of the
President.
Sincerely yours,
George P. Shultz
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
To amend the Foreign Assistance Act of 1961, the Agricultural
Trade Development and Assistance Act of 1954, and the Arms Ex-
port Control Act to authorize security and development
assistance programs for fiscal years 1983 and 1984; and for
other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SHORT TITLE
SEC. 1. This Act may be cited as the 'tS;rnatian&l Se-
curity and Development Cooperaat-ten? Act--of 1983k'.
TITLE I - MZkITARY SALES-AND RELATED PROGRAMS
FOREIGN MILITARY SALES AUTHORIZATION AND AGGREGATE CEILINGS
SEC. 101. (a) Section 31(a) of the Arms Export Control Act
is amended by striking out "$800,000,000 for the fiscal year
1982 and $800,000,000 for the fiscal year 1983" and inserting
in lieu thereof "$1,000,000,000, for the fiscal year 1984".
(b) Section 31(b)(1) of such Act is amended by
striking out "$800,000,000 for the fiscal year 1982 and
$800,000,000 for the fiscal year 1983" and inserting in lieu
thereof "$1,000,000,000 for fiscal year 1984".
(c) Section 31(b)(2) of such Act is amended by
striking out "$3,269,525,000 for the fiscal year 1982 and
3,269,525,000 for the fiscal year 1983" and inserting in lieu
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
thereof "$4,436,000,000 for fiscal year 1984".
(d) Section 31(b)(3) of such Act is amended--
(1) by striking out "not less than $1,400,000,000
4 for the fiscal year 1982 and not less than $1,400,000,000 for
the fiscal year 1983" and inserting in lieu thereof "not less
than $1,700,000,000 for the fiscal year 1984"; and
(2) by striking out "each".
(e) Section 31(b)(5) of such Act is amended-
(1) by striking out "for the fiscal year 1982 and
for the fiscal year 1983" and inserting in lieu thereof "for
the fiscal year 1984"; and
l; (2) by inserting "Korea," immediately after
"Greece,".
(f) Paragraphs (6) and (7) of section 31(b) of such
Act are repealed, and section 31(b) is amended by the addition
of a new paragraph (6) as follows:
"(6) Of the total amounts of credits (or participations in
credits) extended under section 23 of this Act for the fiscal
year 1984, Egypt shall be released from its contrabtual
liability to repay the United States Government with respect to
such credits and participations in credits in an amount up to
$450,000,000.".
(g) Section 31(c) of such Act is amended-
(1) by striking out "for the fiscal year 1982 and
for the fiscal year 1983" and inserting in lieu thereof "for
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
the fiscal year 1984"; and
2 (2) by striking out "each" in the last sentence.
ADMINISTRATIVE SURCHARGE
4 SEC. 102. Paragraph (1) (A) of section 21(e) of the Arms
Export Control Act is amended by inserting immediately after
6 "costs" the phrase "(which would not otherwise be incurred by
i the United States Government)".
E CHARGES FOR ADMINISTRATIVE SERVICES
9 SEC. 103. Section 43(b) of the Arms Export Control Act is
10 amended by inserting "and extraordinary" immediately after
11 "recovery of administrative".
12 CHARGES FOR TRAINING
13 SEC. 104. (a) Section 21(a)(3) of the Arms Export Control
14 Act is amended by striking out "sold to a purchaser who is
15 concurrently receiving assistance under chapter 5 of part II of
If the Foreign Assistance Act of 1961,".
17 (b) Section 21(g) is repealed.
18 INCREASE IN CRIMINAL PENALTIES FOR CERTAIN
15 VIOLATIONS OF THE ARMS EXPORT CONTROL ACT
1C SEC. 105. (a} S t,::ioz38(c) of the Arms Export Control Act
is amended by striking out "not more than $100,000 or
22 imprisoned not more than two years, or both" and inserting in
23 lieu thereof "for each violation not more than $1,000,000 or
24 imprisoned not more than ten years, or both".
2= (b) Section 38(e) of such Act is amended by adding at
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
the end thereof the following: "Notwithstanding Section 11(c)
of the Export Administration Act of 1979, as amended, the civil
penalty for each violation involving controls imposed on the
4 export of defense articles and defense services under this
5 section may not exceed $500,000.".
6 (c) The amendments made by this section
apply with
respect to violations occurring after the effective date of
>r this section.
CATALOG DATA AND SERVICES
10 SEC. 106. Section 21(h) of the Arms Export Control Act is.
11 amended--
12 (a) by inserting " (1) " immediately after "W";
13 (b) by striking out "(1) in connection with" and
14 inserting in lieu thereof "(A) in connection with";
15 (c) by striking out "(2) in connection with" and
16 inserting in lieu thereof "(B) in connection with"; and
17 (d) by adding at the end thereof the following:
"(2) In carrying out the objectives of this section, the
President is authorized to provide (without charge) cataloging
data and cataloging services to the North Atlantic Treaty
Organization or to any member government thereof, if such
Organization or member government provides such data and
services in accordance with an agreement on a reciprocal basis,
without charge, to the United States Government.".
MILITARY ASSISTANCE
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
SEC. 107. Section 504(a)(1) of the Foreign Assistance Act
of 1961 is amended by striking out "not to exceed $238,500,000
for the fiscal year 1982 and not to exceed $238,500,000 for the
4 fiscal year 1983" and inserting in lieu thereof "not to exceed
5 $747,000,000 for the fiscal year 1984".
6 WAIVER OF NET PROCEEDS FOR SALE OF MAP ITEMS
7 SEC. 108. Section 505(f) of the Foreign Assistance Act of
8 1961 is amended by adding at the end thereof the following:
9 "The President may waive the requirement that such net
10 proceeds be paid to the United States Government if he
11 determines that to do so is in the national interest of the
12 United States.".
13 STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES
15 of
,21
SEC. 109. Section 514(b)(2) of the Foreign Assistance Act
1961 is amended by striking out "$130,000,000 for the fiscal
year 1982 and $125,000,000 for the fiscal year 1983" and
inserting in lieu thereof "$125,000,000 for the fiscal year
1984".
SECURITY ASSISTANCE ORGANIZATIONS
SEC. 110. Section 515(c)(1) of the Foreign Assistance Act
of 1961 is amended by striking out "fiscal year 1982 and the
fiscal year 1983" and inserting in lieu thereof "fiscal year
1984, Pakistan, Tunisia, Yemen, Liberia, Sudan, Zaire, El
Salvador, Honduras, Venezuela".
INTERNATIONAL MILITARY EDUCATION AND TRAINING
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
SEC 111. Secticn 542 of the Foreign Assistance Act of 1961
is amended by strikinc out "$42,000,000-for the fiscal year
1982 and $42,000,000 for the fiscal year 1983" and inserting in
lieu thereof "$56,532,000 for the fiscal year 1984".
EXCHANGE TRAINING
SEC. 112. Chapter 5 of Part II of the Foreign Assistance
Act of 1961 is amended by adding at the end thereof the
following new section:
Sec. 544. Exchance Training. -- In carrying out this
:c. chapter, the President is authorized to provide for attendance
11 of foreicn military personnel at professional military
12 education institutions in the United States (other than Service
--- academies) without charge, and without charge to funds availble
-4 to carry out this chapter (notwithstanding section 632(d)), if
15 such attendance is pursuant to an agreement providing for the
16 exchange of students on a one-for-one, reciprocal basis each
17 fiscal year between those United States professional military
-E education institutions and comparable institutions of eligible
:9 foreign countries and international organizations.".
AUTHORIZATION FOR PEACEKEEPING OPERATIONS
21 SEC. 113. Section 552(a) of the Foreign Assistance Act of
22 1961 is amended by striking out "$19,000,000 for the fiscal
2-~ year 1982 and $19,000,000 for the fiscal year 1983" and
24 inserting in lieu thereof "$46,200,000 for the fiscal year
2= 1984".
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
PEACEKEEPING OPERATIONS EMERGENCIES
SEC. 114. (a) Section 552 of the Foreign Assistance Act of
:.961 is amended --
(1) by inserting in subsection (c) the number
" (1) " immediately after "the President may"
(2) ty inserting in subsection (c) immediately
before the period at the end of the subsection "; and (2) in
the event the President also determines that such unforeseen
emergency recuires the immediate provision of assistance under
this chapter, direct the drawdown of commodities and services
from the inventory and resources of any agency of the United
States Government of an aggregate value not to exceed
$25,000,000 in any fiscal year"; and
14 (3) by inserting at the end thereof the following
15 subsection:
16 "(d) There are authorized to be appropriated to the
17 President such sums as may be necessary to reimburse
18 the applicable appropriation, fund, or account for
I commodities and services provided under subsection
(c)(2) of this section.".
(b) Section 652 of such Act is amended by inserting ",
552(c)(2)," immediately after "under section 506(a)".
TITLE II - ANTI-TERRORISM ASSISTANCE PROGRAM
SEC. 201. (a) Part II of the Foreign Assistance Act of
1961 is amended by adding the following new chapter at the end
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
"CHAPTER 8 - ANTI-TERRORISM ASSISTANCE
"SEC. 571. GENERAL AUTHORITY - (a) Subject to the
4 provisions of subsection (e), the President is authorized to
urnish, on such terms and conditions as the President may
determine, assistance to foreign countries in order to enhance
the ability of their law enforcement personnel to deter
E terrorists and terrorist groups from engaging in international
9 terrorist acts such as bombing, kidnaping, assassination,
1G hostage taking, and hijacking. Such assistance may include
l training services and the provision of equipment and other
i2 commodities related to bomb detection and disposal, management
of hostage situations, physical security, and other matters
14 relating to-the detection, deterrence, and prevention of acts
1~ of terrorism, the resolution of terrorist incidents, and the
iE apprehension of those involved in such acts.
"(b) Notwithstanding section 660 of this Act, services and
commodities may be granted for the purposes of this chapter to
eligible foreign countries, subject to reimbursemeht of the
C value thereof (as defined in section 644(m)) pursuant to
1
section 632 of this Act from funds available to carry out this
chapter.
"(c) Whenever the President determines it to be consistent
with and in furtherance of the purposes of this chapter, and on
such terms and conditions consistent with this Act as he may
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
determine, any agency of the United States Government is
authorized to furnish services.and commodities, without charge
to funds available to carry out this chapter, to an eligible
t foreign country, subject to payment in advance of the value
thereof (as defined in section 644(m)) in United States dollars
E by the foreign country. Credits and the proceeds of guaranteed
loans made available to such countries pursuant to the Arms
c Export Control Act shall not be used for such payments.
Collections under this chapter shall be credited to the
10 currently applicable appropriation, account, or fund of the
1= agency providing such services and commodities and shall be
12 available for the purposes for which such appropriation,
account or fund is authorized to be used..
"(d) The Assistant Secretary of State for Human Rights and
Humanitarian Affairs shall be consulted in the development and
implementation of the anti-terrorism assistance program under
this chapter, including determinations of the foreign countries
that will be furnished assistance under this chapter and
determinations of the nature of assistance to be furnished to
each such country.
"(e)(1) Training services provided pursuant to subsection
(a) shall not be conducted outside the United States.
"(2) Personnel of the United States Government authorized
to advise eligible foreign countries on anti-terrorism matters
shall carry out their responsibilities, to the maximum extent
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
possible, within the United States. Such personnel may
provide advice outside the United States on anti-terrorism
matters to eligible foreign countries for a period not to
4 exceed thirty calendar days.
5 "(3) Employees of the Department of State shall not engage
6 in the training of law enforcement personnel or provision of
7 services as described in subsection (a), except that employees
8 of the Office of Security within the Department of State may
9 provide training and services to law enforcement personnel for
10 the physical protection of diplomatic personnel and facilities.
11 "(4) Equipment and commodities included on the United
12 States munitions list established pursuant to the Arms Export
13 Control Act shall not be made available under subsection (a).
14 " (5) : mice. under subsection (a) shall not inel4e
15 provision of-'services, equipment, personnel, or facilities
16 involved in the collection of intelligence as defined in
17 Executive Order 12333 of December 4, 1981, other than limited
18 training in the organization of intelligence for anti-terrorism
19 purposes.
20 "(6) The authority of subsection (a) of this section shall
,21 expire three years after the date of enactment of this section,
22 except that funds obligated prior to that date may be expended
23 after that date in accordance with this chapter.
24 "(7) Not less than thirty days before the President
25 exercises his authority under this section to provide
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
assistance to foreign countries to enhance their anti-terrorism
law enforcement capabilities, the President shall transmit to
the Speaker of the House of Representatives and the chairman of
4 the Committee on Foreign Relations of the Senate a written
notification which specifies --
"(1) the country to which such assistance is to be'
provided;
"(2) the type and value of the assistance to be
provided;
"(3) the terms and duration of assistance; and
"(4) an explanation of how the proposed assistance
will further the objectives of this section to assist
law enforcement in eligible foreign countries in
determining terrorism.
The chairman of either the Committee on Foreign Affairs of the
House of Representatives or the Committee on Foreign Relations
of the Senate may request, as deemed necessary, a current
report on the state of observance of and respect for
internationally recognized human rights in the country to which
assistance i-s to be provided. In the event that a report is
requested, no assistance shall be provided to the country
specified prior to transmittal of the report to the requesting
committee.
"(8) Not later than one year after the date of enactment of
this section and each year thereafter as part of the annual
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
21
congressional presentation material, the President shall
transmit to the Congress a?report identifying the countries
receiving assistance under this section, including the type,
place, and duration of training being provided, number of
personnel being trained, and type of equipment being
transferred. The report shall also describe the ways in which
the provision of such assistance has furthered the objectives
of enhancing the ability of foreign law enforcement authorities
to deter acts of terrorism.
"SEC. 572. APPROPRIATIONS. - (a) There is authorized to be
appropriated to the President to carry out this chapter
$5,000,000 for the fiscal year 1984. Amounts appropriated to
carry out this chapter are authoriz.ed to remain available until
expended.
(b) For the fiscal year 1983, the President may transfer,
to carry out this chapter, up to $2,500,000 of the amounts made
available for any provision authorized by P.L. 97-113.
"SEC. 573. PURPOSES - (a) Activities conducted under this
chapter shall be designed--
"(1) to enhance the law enforcement anti-terrorism
skills of friendly countries by providing training and
equipment to deter and counter terrorism;
"(2) to strengthen the bilateral ties of the United
States with friendly governments by offering concrete
assistance in this area of great mutual concern; and
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
"(3) to increase respect for human rights by sharing
with foreign civil authorities modern, humane, and
effective anti-terrorism techniques.
"(b) This chapter does not apply to information exchange
activities conducted by agencies of the United States
Government under other authority for such purposes.
"SEC. 574. ADMINISTRATIVE AUTHORITIES -- (a) Except where
expressly provided to the contrary, any reference -in any law to
part I of this Act shall be deemed to include reference to this
chapter and any reference in any law to part II of this Act
shall be deemed to exclude reference to this chapter.".
(b) Section 502B(d)(2)(A) of the Foreign Assistance Act of
1961 is amended by inserting the phrase "or chapter 8
(anti-terrorism assistance)" immediately after the phrase
15 "chapter 6 (peacekeeping operations)".
16 (c) Section 644(m)(5) of the Foreign Assistance Act of 1961
17 is amended by inserting the phrase "or services provided under
18 chapter 8 of part II of this Act" immediately after the phrase,
19 "military education and training".
2C TITLE III - ECONOMIC SUPPORT FUND
21 AUTHORIZATION OF APPROPRIATIONS
22 SEC. 301. (a) Section 531(b)(1) of the Foreign Assistance
23 Act of 1961 is amended by striking out "$2,623,500,000 for the
24 fiscal year 1982 and $2,723,500,000 for the fiscal year 1983"
25 and inserting in lieu thereof "$2,949,000,000 for the fiscal
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
year 1984".
(b) Section 535 of such Act is amended --
1) by striking out "1982" and inserting in
4 lieu thereof "1984"; and
_ 2) by striking out "and up to $75,000,000
6 for the fiscal year 1983".
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
- 15 -
TITLE IV - DEVELOPMENT ASSISTANCE
AGRICULTURE, RURAL DEVELOPMENT, AND NUTRITION
3 SEC. 401. Section 103(a)(2) of the Foreign Assistance Act
of 1961 is amender by striking out "$700,000,000 for the
5 fiscal year 1982 and $700,000,000 for the fiscal year 1983" and
inserting in lieu thereof "$725,213,000 for the fiscal year
7 1984
6 POPULATION AND HEALTH
9 SEC. 402. Section 104(g) of the Foreign Assistance Act of
10 1961 is amended --
11 (1) by striking out the first sentence and inserting in
lieu thereof the following: "There are authorized to be
appropriated to the President, in addition to funds otherwise
available for such purposes -- '
15 "(1) $212,231,000 for the fiscal year 1984 to carry
16 out subsection (b) of this section; and
17 "(2) $100,656,000 for the fiscal year 1984 to carry
18 out subsection (c) of this section."; and
(2) by striking out the second sentence.
EDUCATION AND HUMAN RESOURCES DEVELOPMENT
SEC. -403. Section 105(a) of the Foreign Assistance Act of
1961 is amended --
(1) in the second sentence, by striking out "$103,600,000
24 for the fiscal year 1982 and $103,600,000 for the fiscal year
25 1983" and inserting in lieu thereof "$121,477,000
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
4
- 16 -
for the fiscal year 1984'; and
(2) by striking out the third sentence.
ENERGY, PRIVATE VOLUNTARY ORGANIZATIONS, AND
SELECTED DEVELOPMENT ACTIVITIES
SEC. 404. Section 106(e)(1) of the Foreign Assistance Act
of 1961 is amended by striking out 0$147,200,000 for the fiscal
year 1982 and $147,200,000 tor the fiscal year 1983" and
inserting in lieu thereof "$182,423,000 for the fiscal year
1984".
PRIVATE ENTERPRISE REVOLVING FUND
11 SEC. 405. (a) Chapter 1 of part I of the Foreign Assistance
12 Act of 1961 is amended by adding the following new section 108:
'SEC. 108. Private Enterprise Revolving Fund. -- (a) The
14 Congress finds that the development of private enterprise is a
15 vital factor in the stable growth of developing countries and
16 in the development and stability of a free, open, and equitable
17 international economic system. It is therefore in the best
18 interests of the United States to assist the development of the
19 private sector in developing countries and to engage the United
20 States private sector in that process. In order to promote
21 such private sector development, the President is authorized to
22 establish a revolving fund account in the United States
23 Treasury. All funds deposited in such account
24 shall,notwithstanding section 1210 of the General
25 Appropriations Act, 1951 (61 Stat. 765) or any other
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
appropriations act, be free from fiscal year limitations.
2 "(b) Of the funds made available under this chapter in
3 fiscal year 1984, up to $20,000,000 may be deposited in this
4 account. Such funds used in accordance with the policies and
5 authorities of this section shall be in addition to other
6 fundsavailable for private sector activities under other
7 authorities in this Act. Any reflows and income arising from
8. activities carried out pursuant to this section, including loan
9 repayments, capital gains, return of capital and'fee income (as
lOprovided in subsection (e) of this section), shall be deposited
llinto the revolving fund and remain available to carry out the
12 purposes of this section. All funds in such account may be
13 invested in obligations of the United States.
14 "(c) The agency primarily responsible for administering
15 this part is authorized to use the funds maintained in this
16 revolving fund account to furnish assistance in furtherance of
17 the policy of subsection (a) notwithstanding any other
18 provision of law and on such terms and conditions as it may
19 determine, including the acquisition of equity interests.
20 "(d) At the end of any fiscal year, the agency primarily
21 responsible for administering this part may determine that
22 amounts in the revolving fund are sufficient to permit the
23 remittance to the United States Treasury of an amount equal toa
24 portion or the total amount of appropriated funds deposited in
25 the revolving fund. Any such remittance shall be deemed to be
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
- 18 -
1 a decrease in the appropriated funds in the revolving fund.
2 After remittance has been made of an amount equal to the total
3 amount of appropriated funds, the revolving fund shall consist
4' and be deemed to consist entirely of nonappropriated funds.
5 "(e) A fee may be charged, where appropriate, in carrying
6 out activities with funds from the revolving fund authorized in
7 this section. The amount of any such fee shall be determined
8 by the agency primarily responsible for administering this part.
9 "(f) In the event the revolving fund is terminated, all
10 unobligated money in the fund at the time of such termination
11 shall be transferred to and become part of the miscellaneous
12 receipts account of the Treasury.".
13 (b) Section 635(g)(3) of such Act is amended by adding",
14 except as provided under section 108(c)," immediately after
15 "provided that equity securities may not be directly purchased".
16 TRANSFER OF FU14DS
17 SEC. 406. The-first sentence of section 109 of the Foreign
18 Assistance Act of 1961 is amended to read as follows:
19 "Whenever the President determines it to be necessary for
20 the purposes of this chapter or for section 661 of this Act,
21 not to exceed 15 per centum of the funds made available for any
22 provision of this chapter may be transferred to, and
23 consolidated with, the funds made available for any other
24 provision of this chapter or for section 661, and may be used
25 for any of the purposes for which such funds may be used,
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
- 19 -
1 except that the total in the provision for the benefit of which
2 the transfer is made shall not be increased by more than 25 per
3 centum of the amount of funds made available for such
4 -provision.".
SAHEL DEVELOPMENT PROGRAM
SEC. 407. The third sentence of section 121(c) of the
Foreign Assistance Act of 1961 is amended by striking out
"$86,558,000 for the fiscal year 1982 and $86,556,000 for the
9 fiscal year 1983" and inserting in lieu thereof."$103,000,000
10 for the fiscal year 1984".
11 HOUSING GUARANTY PROGRAM
12 SEC. 408. (a) Section 221 of the Foreign Assistance Act of
13 1961 is amended --
(1) in the first sentence, by striking out
15 "requirements are" and inserting in lieu thereof ", including
16 essential urban development services, is"; and
(2) in the rest of the section, by striking out
18 "housing" wherever it occurs and inserting in lieu thereof
19 ".shelter".
20 (b) Section 222(a) of such Act is amended --
(1) in the first sentence by striking out "as defined
22 in section 236(c)" and inserting in lieu thereof "as defined by
23 regulation adopted by the agency primarily responsible for
24 administering this part";
25 (2) in the second sentence, by striking out
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
- 20 -
"$1,718,000,000" and inserting in lieu thereof
"$1,868,000,000";
.(3) by adding the following new sentence immediately
after the second sentence: "Commitments to guarantee loans are
authorized for any fiscal year only to such extent or in such
amounts as are provided in appropriation acts."; and
(4) in the third sentence, by striking out "1984" and
inserting in lieu thereof "1985".
(c) Section 223(f) of such Act is amended to read as
10 follows:
"(f) In the case of any loan investment guaranteed under
12section 222, the agency primarily responsible for administering
13this part shall prescribe the maximum rate or rates of interest
14allowable to the eligible investor. Such rates of interest
15shall be reasonable in comparison to the rates on comparable
16securities in the United States capital market.".
AGRICULTURAL AND PRODUCTIVE CREDIT AND SELF-HELP
COMMUNITY DEVELOPMENT PROGRAMS
SEC. 409. (a) The first sentence of section 222A(a) of the
20Foreign Assistance Act of 1961 is amended by striking out "in
21 Latin America" and "in not more than six Latin American
22 countries"
(b) The first sentence of section 222A(b) of such Act is
24amended by striking out "in not more than five Latin American
25 countries"
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
21 -
(c) Section 222A(c) of such Act is amended --
(1) by striking out "$20,000,000" and
inserting"S40,000,000" in lieu thereof; and
(2) by adding the following new sentence at the end
thereof: "Commitments to guarantee loans are authorized for
5
6 any fiscal year only to such extent or in such amounts as are
- provided in appropriation acts.".
8 (d) Section 222A(h) of such Act is amended by striking out
"1983" and inserting "1985" in lieu thereof.
FAMINE PREVENTION AND FREEDOM FROM HUNGER
SEC. 410. Section 297(a)(5) of the Foreign Assistance Act
of 1961 is amended by inserting immediately after "centers" the
13 following: "(including the authority to transfer employees to
14 international agricultural research centers in accordance with
15 the provisions of the Federal Employees International
16 Organization Service Act (5 U.S.C. Secs. 3343, 3581-3584))".
TITLE V - MISCELLANEOUS PROVISIONS
AMERICAN SCHOOLS AND HOSPITALS ABROAD
SEC. 501. Section 214(c) of the Foreign Assistance Act of
20 1961 is amended by striking out "$20,000,000 for -the fiscal
21 year 1982 and $20,000,000 for the fiscal year 1983" and
22 inserting in lieu thereof "$7,500,000 for the fiscal year 1984".
23 INTERNATIONAL ORGANIZATIONS AND PROGRAMS
24 SEC. 502. Section 302(a)(1) is amended --
25 (1) in the first sentence, by striking out "$218,600,000
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
- 22 -
1 for the fiscal year 1982 and $218,600,000 for the fiscal yea.
2 1983" and inserting in lieu thereof "$189,950,000 for the
3 fiscal year 1984"; and
4 (2) by striking out the second sentence.
INTERNATIONAL NARCOTICS CONTROL
SEC. 503. Section 482(a) of the Foreign Assistance Act of
1961 is amended by striking out "$37,700,000 for the fiscal
year 1982 and $37,700,000 for the fiscal year 1983" and
inserting in lieu thereof "$53,030,000 for the fiscal year
101984".
11 INTERNATIONAL DISASTER ASSISTANCE
12 SEC. 504. (a) Section 492(a) of the Foreign Assistance Act
13 of 1961 is amended by striking out "$27,000,000 for the fiscal
14 year 1982 and $27,000,000 for the fiscal year 1983" and
15 inserting in lieu thereof "$25,000,000 for the fiscal year
16 1984".
17 (b) Section 492 of such Act is further amended by
18 redesignating subsection (b) as subsection (c) and adding the
19 following new subsection (b):
20 "(b) Any of the funds appropriated pursuant t'o subsection
21 (a) which remain unobligated at the end of a fiscal year may be
22 maintained in a special reserve fund, which shall not exceed a
23 total of $25,000,000. Such reserve shall remain available
24 without fiscal year limitation to carry out the purposes of
25 section 491.".
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
- 23 -
1 COMPLETION OF PLANS AND COST ESTIMATES
2 SEC. 505. (a) Section 611(a) of the Foreign Assistance Act
3 of 1961 is amended by striking out 1$100,000" and inserting in
4 lieu thereof "$500,000".
(b) Section 611(b) of such Act is amended by striking out
6 the phrase "made insofar as practicable in accordance with the
7 procedures set forth in the Principles and Standards for
Planning water and Related Land Resources, dated October 25,
9 1973, with respect to such computations" and inserting in lieu
10 thereof "made in accordance with regulations established by the
11 agency primarily responsible for administering part I of this
12 Act".
13 USE OF FOREIGN CURRENCIES
SEC. 506. Section 612 of the'Foreign Assistance Act of 1961
15 is amended --
16 (1) in the last sentence of subsection (a), by striking out
17 "in such amounts as may be specified from time to time in
18 appropriation Acts";
19 (2) by adding at the end of subsection (a) the following
20 new sentence: "Section 1415 of the Supplemental-Appropriations
21 Act of 195-3, as amended, shall not apply to currencies used
22 pursuant to this section.";
23 (3) by striking out the first sentence of subsection (b);
24 and
25 (4) in subsection (b), by striking out "subsection" both
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12: CIA-RDP95B00895R000300040020-7
l times it appears and inserting in lieu thereof "section".
2 PROHIBITIONS AGAINST ASSISTANCE TO THE PEOPLE'S
3 REPUBLIC OF CHINA
4 SEC. 507. Section 620(f) of the Foreign Assistance Act of
5 1961 is amended--
6 (1) by striking out the period at the end of the first
7 sentence of the subsection and adding at the end of that
8 sentence "listed in this subsection.";
9 (2) by striking out in the third sentence of that
10 subsection the phrase ", but is not limited to,"; and
11 (3) by striking from the list of countries set forth in
12 that-subsection the words "People's Republic of China." and
13 "Tibet.".
14 ANNUAL REPORTS
15 SEC. 508. (a) Section 620(s) of the Foreign Assistance Act
16 of 1961 is amended by repealing subsection (2).
17 (b) Section 634(a) of such Act is amended by repealing
18 subsections (2)(B), (6), and (7).
19 NOTIFICATION OF PROGRAM CHANGES
20 SEC. 509. (a) Section 634A of the Foreign Assistance Act of
21 1961 is amended 22 (1) by inserting "(a)" immediately before "None";
23 (2) by inserting "or the Arms Export Control Act"
24immediately after "disaster relief and rehabilitation)" and
25 immediately after "this Act" the second place it appears;
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
25 -
(3i by inserting by more than ten percent"
immediately after the phrase or in excess of the amount
3 _justified"; and
4 (4) by adding at the end of the section the following
5 new subsection:
^(b) The notification requirement of this section does
6
7 not apply to the reprogramming of less than $50,000 for use
8 under chapter 8 of part I or chapter 5 of part II for a country
9 for which a program under that chapter for that fiscal year was
10 justified to the Congress.".
11 (b) Section 653 of the Foreign Assistance Act of 1961 is
12 amended --
(1) by inserting in subsection (a) or the Arms Export
13
14 Control Act" immediately after "sections 451 or 637)";
15 (2) by striking out subsection (b); and
(3) by redesignating subsection (c) as subsection (b).
16
17 (c) Section 36(a)(5) of the Arms Export Control Act is
18 amended by striking out ", credits to be extended under Section
1923, and guarantee agreements to be made under Section 24".
20 (d) Section 36(a)(6) of the Arms Export Control Act is
21amended by striking out "and credits expected to be extended".
ADMINISTRATIVE USES OF FUNDS
23 SEC. 510. (a) Section 636(a)(14) of the Foreign Assistance
24Act of 1961 is amended by striking out the Foreign Service Act
25of 1946, as amended" and inserting in lieu thereof the Foreign
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12: CIA-RDP95B00895R000300040020-7
Service Act of 1980".
(b) Section 636(c) of such Act is amended by striking out
"not to exceed $3,000,000 of the".
? (c) Section 636(d) of such Act is amended by striking out
"$2,500,000" and inserting in lieu thereof "$5,000,000".
7 the
(d) Section 636 of such Act is amended further by adding
following new subsection (j) at the end thereof:
"(j) (1)
Notwithstanding any other provision of law,
9 earmark shall be
10 appropriated, or
11 purposes of this
12 making
13 is the
15
in excess of the amount which
of the earmark,.or
representing that proportion of the
16 total funds appropriated to, or
17 an appropriation account, which
18 represented of the
19 made available for
20 which
21
required to be applied to any funds
authority made available, to carry out the
Act or the Arms Export Control Act by any law
continuing appropriations,
lesser of:
'(A) the amount
"(B) the amount
established
total amount
authority made available for,
the amount of the earmark
authorized, appropriated, or
the same appropriation
such earmark.
"(2) For the purposes
22 statutory requirement
23 total funds appropriated
24 an appropriation
account
account in the law
of this subsection, an earmark is a
a minimum or definite amount of the
to, or authority made available for,
be obligated, or used, only for a
25 specific country or purpose.".
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
- 27 -
TRADE AND DEVELOPMENT PROGRAM
SEC. 511. Section 661(b) of the Foreign Assistance Act of
1961 is amended by striking out "$6,907,000 for the fiscal year
3
4 1962 and $6,907,000 for the fiscal year 1983" and inserting in
5 lieu thereof "$22,000,000 for the fiscal year 1984".
OPERATING EXPENSES
6
7 SEC. 512. Section 667(a) of the Foreign Assistance Act of
1961 is amended by striking out "$335,600,000 for the fiscal
9 year 1962 and $335,600,000 for the fiscal year .1983" and
10 inserting in lieu thereof "$378,512,000 for the fiscal year
11 1964".
REPEAL OF PROVISIONS
12
SEC. 513. The following provisions of the Foreign
13
14 Assistance Act of 1961 are hereby repealed: sections
15 106(b)(1)(B), 110(b), 113(c), 222A(f), 302(b)(1) and (b)(2),
16 302(i), 495, 495D, 495E, 495G, 496, 497, 532, 533, 534, 536,
17 537, 538, 539, and 540.
18 TITLE VI - AMENDMENTS TO OTHER ACTS
PARTICIPANT TRAINEE GRANTS
SEC. 601. Section 1441(c)(6) of the internal Revenue Code
of 1954, as amended, is repealed and the following new section
is inserted in lieu thereof:
"(6) Any amounts of scholarship or fellowship grant,
including per diem, travel and related expenses, paid any
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 CIA-RDP95B00895R000300040020-7
28 -
1 nonresident alien individual who is engaged in any program of
2 training in the United States under the Foreign Assistance Act
3 -of 1961, as amended, shall be exempt from deduction or
withholding under subsection (a) and shall not be considered
income under sections 871 and 872.".
FOOD FOR DEVELOPMENT PROGRAM
SEC. 602. Section 305 of the Agricultural Trade Development
and Assistance Act of 1954 is amended by adding a new
9 subsection (d) as follows:
10 "(d) As an alternative to subsections (a) and (c) above,
11 the Food for Development Program of a country may provide that
12 payments for the purposes of section 103(b) of this Act shall
13 be deemed to have been made, in accordance with subsections
(a)and (b) of this section, at the time the recipient
15 government puts into effect specified policy changes contained
16 in the approved Food for Development Program, or at the time
17 specified results of these policy changes are achieved.
18 However, any such program will also require that the
19 commodities made available under this title or the funds
20 generated from the sale thereof be used for purposes described
21 in the approved Food for Development Program.".
22 AFRICAN DEVELOPMENT FOUNDATION
23 SEC. 603. Section 510 of the International Security and
24 Development Cooperation Act of 1980 is hereby repealed and the
25 following new section inserted in lieu thereof:
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
"Sec. 510. There are authorized to be appropriated to the
2 President to carry out this title, in addition to funds
3 otherwise available for such purposes, $3,000,000 for the
4 fiscal year 1964, which are authorized to remain available
5 until expended.".
6 TITLE VII - SUPPLEMENTAL AUTHORIZATIONS FOB FISCAL YEARS 1983
7 MILITARY SALES AND RELATED PROGRAMS
.6 SEC. 701. (a) In addition to amounts otherwise available
9 for the fiscal year 1963 for loan guarantees under section
10 24(a) of the Arms Export Control Act, $425,000,000 of loan
11 principal are authorized to be so guaranteed during such fiscal
12 year.
13 (b) In addition to amounts otherwise made available for the
14 fiscal year 1983 to carry out the provisions of section 503 of
15 the Foreign Assistance Act of 1961, there is authorized to be
16 appropriated $167,000,000 to carry out such provisions.
17 ECONOMIC SUPPORT FUND
18 SEC. 702. In addition to amounts otherwise authorized to be
19 appropriated for the fiscal year 1983 to carry out the
20 provisions of chapter 4 of part II of the Foreign Assistance
21 Act of 1961, there is authorized to be appropriated
22 $145,500,000 to carry out such provisions.
23 TITLE VIII -AUTHORIZATIONS FOR
24 THE FISCAL YEAR 1985 AND EFFECTIVE DATE
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
30 -
AUTHORIZATIONS FOR THE FISCAL YEAR 1985
SEC. 801. There are authorized to be appropriated for the
fiscal year 1985 such sums as may be necessary to carry out
programs and activities for which appropriations for the fiscal
year 1964 are authorized by this Act.
EFFECTIVE DATE
SEC. 802. (a) Titles II and VII of this Act shall take
effect upon enactment.
(b) Sections 104 and 105 of this Act shall take effect upon
enactment or October 1, 1983, whichever date is later.
11 (c) All other sections of this Act shall take effect on
12 October 1, 1983.
13
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
SECTION-BY-SECTION ANALYSIS
OF THE PROPOSED
INTERNATIONAL SECURITY AND DEVELOPMENT
COOPERATION ACT OF 1983
I. INTRODUCTION
The proposed International Security and Development
Cooperation Act of 1983 ("the Bill") amends the Foreign
Assistance Act of 1961 ("FAA"), the Agricultural Trade
Development and Assistance Act of 1954 and the Arms Export
Control Act ("AECA") in order to authorize appropriations to
carry out international security and development assistance
programs for the fiscal years 1983 and 1984, and to make
certain changes in the substantive authorities governing those
programs. The Bill also contains authorizations for the fiscal
year 1985 in accordance with the requirements of the
Congressional Budget Act of 1974.
The Bill is composed of eight titles. Title I consists of
authorizations for military sales and related programs under
the AECA and the FAA. Title II authorizes a new anti-terrorism
law enforcement assistance program. Title III provides
authorization _for the economic support fund. Title IV contains
authorizations for the FAA development assistance provisions.
Title V contains miscellaneous amendments to the FAA and AECA,
including. authorizations for the international narcotics
program and operating expenses for the Agency for International
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12: CIA-RDP95B00895R000300040020-7
- 2 -
Development. Title VI contains amendments to the Internal
Revenue Code of 1954 and the'Food for Development Program.
Title VII contains supplemental authorizations for fiscal year
1983 for loan guarantees under section 24(a) the Arms Export
Control Act, for the military assistance program, and for the
economic support fund. Title VIII provides for authorizations
for fiscal year 1985 in accordance with the requirements of the
congressional Budget Act of 1974 and for the effective dates
for the various provisions of the Bill.
II. PROVISIONS CF THE BILL
SECTION 1. SHORT TITLE
This section provides that the Bill may be cited as the
"International Security and Development Cooperation Act of
1983".
TITLE I - MILITARY SALES AND RELATED PROGRAMS
SECTION 101. FOREIGN MILITARY SALES CREDITS AUTHORIZATION AND
AGGREGATE CEILINGS
This section amends section 31(a) of the AECA to authorize
$1,000,000,000 in appropriations for fiscal year 1984 to carry
out the foreign military sales (FMS) credit program. Section
31(b)(1) of the AECA is amended to establish at $1,000,000,000
for fiscal year 1984 the limit on the aggregate amount of FMS
credits which may be extended under section 23 of the AECA.
Section 31(b)(2) of the AECA is amended to establish at
$4,436,000,000 for fiscal year 1984 the limit on the total
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
- 3 -
principal amount of loans for which guarantees may be issued
under section 24(a) of the AECA. Section 31(b)(3) of the AECA
is amended to provide that during fiscal year 1984 no less than
$1,700,000,000 in FMS credits and guaranteed loans shall be
available for Israel. etion 31(b) (5) is amended to ?'rKorea
to the list of countries which would be authorized for fiscal.
year 1984 to repay loans guaranteed under section 24(a) of the
AECA in not more than twenty years, following a grace period of
ten years on repayment of principal. Paragraphs (6) and (7) of
section 31(b) are repealed and replaced with a provision
allowing the President to release Egypt from its contractual
liability to repay loans extended under section 23 in an amount
up to $450,000,000. Finally, section 31(c) of the AECA is
amended to authorize for fiscal year 1984 continuation of
favorable repayment terms for Israel in connection with credits
extended under section 23 and loans guaranteed under section 24.
SECTION 102. ADMINISTRATIVE SURCHARGE
Paragraph 1(A) of section 21(e) of the AECA is amended to
further explain that the "costs" which must be recovered by the
United States Government are those costs which would not
otherwise be incurred by the United States. This change is
comparable to the revision of training prices effected by
section 115 of P.L. 96-533. Enactment of this amendment is not
expected to result in a reduction of the current administrative
surcharge percentage, but will avoid the necessity of an
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12: CIA-RDP95B00895R000300040020-7
- 4 -
immediate increase in the percentage levied on all foreign
military sales.
SECTION 103. CHARGES FOR ADMINISTRATIVE SERVICE
Section 43(b) of the AECA is amended to provide that the
United States is to recover "extraordinary" as well as
administrative expenses for services calculated under section
21(e)(1)(A) of the AECA. The amendment will permit the use of
administrative funds to augment military assistance (MAP) funds
available for security assistance representational activities.
SECTION 104. CHARGES FOR TRAINING SOLD UNDER THE AECA
This provision will eliminate the current multi-tier price
structure on sales of training. Thereafter there would be only
two comparable pricing systems, one for IMET and one for FMS.
For example, under the current system the cost of FMS training
for foreign students in the same course at the Army Command and
General Staff College could range from $4,598 to $31,499. The
new proposal would authorize all purchasers to be charged the
"additional cost" that would be incurred to provide this
training; in the above example, the $4,598 rate. Enactment of
the provision would reduce discrimination among countries and
U.S. administrative costs.
SECTION 105. INCREASE IN CRIMINAL PENALTIES FOR CERTAIN
VIOLATIONS OF AECA.
Recent changes in the Export Administration Act imposed
potentially greater penalties for persons violating commercial
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
- 5 -
export laws and regulations than for those violating section 38
of the AECA. This provision would increase the maximum
criminal penalty for certain violations of the AECA from
$100,000 or two years imprisonment or both, to $1 million or 10
years imprisonment or both. The ceiling for-civil penalties
for violations would be raised from $100,000 to $500,000. This
amendment would apply to violations which occur after the
effective date of this section.
SECTION 106. CATALOG DATA AND SERVICES
The AECA permits in-kind reciprocal exchange of some
services with NATO countries, but still requires that the U.S.
charge for catalog data. In FY 82 such charges amounted to
$850,000. Other countries are beginning to charge DOD in
return, with DOD paying over $100,000 in FY 82. In future
years, as efforts intensify to increase NATO standardization,
there will be increasing requests for cataloging and
codification services, which DOD performs puisant to chapter
145 of title 10 United States Code. This amendment would avoid
a series of sales cases for relatively minor transactions with
those NATO countries that provide similiar services free of
charge to the United States.
SECTION 107. Military Assistance Program
This section amends section 504 to authorize $747,000,000
for fiscal year 1984 in appropriations to carry out the
military assistance program.
SECTION 108. WAIVER OF NET PROCEEDS FOR SALES OF MAP ITEMS
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12: CIA-RDP95B00895R000300040020-7
- 6 -
This section amends section 505(f) of the FAA to allow the
President to waive the requirement that a country pay to the
U.S. the net proceeds from the sale of defense articles
previously furnished to it on a grant basis under the military
assistance program. Most of this equipment was programmed
under MAP prior to 1975. Countries which possess aging,
obsolete MAP defense articles currently have an incentive to
retain this equipment, rather than to sell it and use the
proceeds for newer equipment, even though retaining it requires
increasing maintenance costs. This provision would allow the
president-to remove this disincentive to a country's
modernizing its defense inventory when it is in the U.S.
national interest to do so. All legal and policy controls
applicable to third country transfers would continue to apply
to any sales of this equipment.
SECTION 109. STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN
COUNTRIES
This section amends section 514(b)(2) of the FAA to
establish a ceiling of $125,000,000 on the aggregate value of
additions made in fiscal year 1984 to overseas stockpiles of
defense articles (other than in NATO countries) which are
designated as war reserve stocks for allied or other foreign
forces. The United States retains title to any stocks so
designated. Transfer of these stocks to a foreign country may
take place only under the authority of the FAA or of the-AECA,
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
- 7
and within the limitations and funds available under those Acts.
SECTION 110. SECURITY ASSISTANCE ORGANIZATIONS
Section 515 provides specific annual authorization to
station permanently more than six military personnel in certain
countries to manage security assistance programs. This section
would add for fiscal year 1984 nine new countries to the twelve
countries which are currently authorized in the statute to have
more than six uniformed personnel assigned to them for managing
security assistance programs.
SECTION 111. GRANT TRAINING
Section 542 of the FAA is amended to authorize $56,532,000
for fiscal year 1984 in appropriations for the International
Military Education and Training (IMET) program.
SECTION 112. EXCHANGE TRAINING
The bill would provide for the establishment of a new
section 544 in the FAA concerning exchange (barter) training.
The President will be authorized to provide to foreign military
personnel professional military education training only at U.S.
war colleges and U.S. command and staff colleges in the United
States. The training of each foreign student under this
authority will be conditioned on the requirement that,
commencing in the same U.S. fiscal year, a U.S. military
student be trained in a foreign college which the U.S. military
department involved determines to be comparable to its military
colleges. Such exchanges would be negotiated with foreign
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
- 8 -
countries and international organizations after enactment.
SECTION 113. PEACEKEEPING OPERATIONS AUTHORIZATION
Section 552(a) of the FAA is amended to authorize
$46,200,000 for fiscal year 1984 in appropriations to carry out
peacekeeping operations and other programs. These programs
would include the United States budgetary contribution to the
Multinational Force and Observers (MFO) for the Sinai.
SECTION 114. PEACEKEEPING OPERATIONS EMERGENCIES
Section 552(c) of the FAA is amended to provide that the
president may draw down commodities and services of an
aggregate value not to exceed $25,000,000 for each fiscal year
from any United States Government agency for peacekeeping
purposes, if he determines that an unforeseen emergency
requires immediate assistance under the peacekeeping provisions
of the FAA. A new subsection (d) authorizes appropriations to
reimburse the applicable account for commodities and services
provided pursuant to this section. Section 652 of the FAA is
amended to require that the President notify the Speaker of the
House of Representatives and the Committee on Foreign Relations
of the Senate in writing should he intend to exercise this
authority, stating the justification for, and the extent of,
the exercise of such authority.
TITLE II - ANTI-TERRORISM ASSISTANCE
SECTION 201. ANTI-TERRORISM ASSISTANCE
This section would add a new Chapter 8 to Part II of the
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
- 9 -
FAA to authorize an anti-terrorism assistance program. Under
section 571(a), the President is authorized to furnish, on such
terms and conditions as he may determine, anti-terrorism
assistance to foreign countries in order to enhance their
ability to deter and prevent terrorism. Section 571(b)
provides that, notwithstanding the prohibition in section 660
of the FAA on funding certain police and law enforcement
assistance in foreign countries, services and commodities may
be granted to eligible countries subject to reimbursement and
allocation limitations contained in section 644(m) and 632 of
the FAA. Section 571(c) provides that, as an alternative to
grants under subsection (b), the President may make available
services and commodities to a foreign country to carry out the
purposes of this chapter subject to payment in advance by the
recipient country. Section 571(d) provides that the Assistant
Secretary of State for Human Rights and Humanitarian Affairs
shall be consulted in the development and implementation of the
anti-terrorism program.
Section 571(e) provides that all training is to be
conducted in the United States, but that U.S. employees
involved in the program may provide advice outside the United
States to program participants for short periods not to exceed
30 calendar-days. Section 571(e)(3) prohibits Department of
State employees except certain office of Security personnel
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
from providing training and services to program participants.
Section 571(e)(4) prohibits the transfer of defense articles on
the munitions list under the commodity transfer authority of
the program. l e),(53 prohibits t e provision of;
services,{ equipment, personnel or facilities involved in
intelligence collection as defined in Executive Order 12333 of
December 4, 1981, but permits limited training in the
organization of intelligence for anti-terrorism purposes.
Section 571(e)(6) provides for a three-year sunset on the
program. Section 571(e)(7) requires a thirty-day advance
notification of those countries that will initially be
participating in the program to the Speaker of the House of
Representatives and the Chairman of the Committee on Foreign
Relations of the Senate prior to the obligation of funds made
available under this authority. Section 571(e)(8) provides
that an annual report shall be provided to Congress.
Section 572 would authorize to be appropriated to the
president to carry out this new chapter $5,000,000 for the
fiscal year 1984. This section would also permit the P-resident
to use up to $2,500,000.of funds available for other provisions
authorized by P.L. 97-113 to carry out this chapter during
fiscal year 1983. Section 573 defines the purposes for which
the anti-terrorism activities are to be designed -- namely, to
enhance the law enforcement anti-terrorism skills of friendly
countries by offering assistance in the anti-terrorism field.
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
- 11 -
also states that this chapter is not intended to limit or
prohibit information exchange activities by U.S. government
agencies under other authority. Section 574 provides that this
anti-terrorism program will be conducted under the non-military
authorities of the FAA, as is the case of the Economic Support
Fund ano peacekeeping operations, for example. Finally
sections 502B(d)(2)(A) and 644(m)(5) of the FAA are amended to
ensure that relevant definitions of "security assistance" and
"value" in the FAA are altered appropriately.
TITLE III - ECONOMIC SUPPORT FUND
SECTION 301. AUTHORIZATION OF APPROPRIATIONS
Section 531(b) of the FAA is amended to authorize an
appropriation for the Economic Support Fund of $2,949,000,000
for fiscal year 1984. The emergency assistance authority of
section 535 is continued for fiscal year 1984.
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
TITLE IV -. DEVELOPMENT ASSISTANCE
SECTION 401. AGRICULTURE, RURAL DEVELOPMENT, AND NUTRIT'IO2;
Section 401 amends section 103(a)(2) of the Foreign
Assistance Act of 1961 is amended by striking out "$700,000,000
for the fiscal year 1982 and $700,000,000 for the fiscal year
1963" and inserting in lieu thereof "$725,213,000 for the
fiscal year 1984".
SECTION 402. POPULATION AND HEALTH
Section 402 amends section 104(9) of the Act, which
authorizes funds for population and health. Section 104(g) is
amended to authorize $212,231,000 for the population program
for the fiscal year 1984 and to authorize $100,656,000 for the
health program for the fiscal year 1984.
SECTION 403. EDUCATION AND HUMAN RESOURCES DEVELOPMENT
SEC. 403 amends section 105(a) of the Act, which authorizes
fund for education and human resources development. Section
105(a) is amended to authorize $121,477,000 for these programs
for the fiscal year 1984 and to delete the second sentence,
which earmarked funds for fiscal years 1982 and 1983 and is
obsolete.
SECTION 404. ENERGY, PRIVATE VOLUNTARY ORGANIZATIONS AND
SELECTED DEVELOPMENT ACTIVITIES
Section 404 amends section 106(e)(1) of the Foreign
Assistance Act of 1961 is amended by striking out "$147,200,000
for the fiscal year 1982 and $147,200,000 for the fiscal year
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
1983" and inserting in lieu thereof "$182,423,000 for the
fiscal year 1984".
SECTION 405. PRIVATE ENTERPRISE REVOLVING FUND
Section 405(a) adds a new section 108 to part I, chapter 1
of the Act establishing a revolving fund for private enterprise
activities. Section 108(a) states the importance of
encouraging the growth of private enterprise in developing
countries and authorizes the establishment of a revolving fund
account to be used for such purposes, which shall be free from
fiscal year limitations. Section 108(b) provides that up to
$20,000,000 in fiscal year 1984 of funds appropriated to other
accounts in chapter 1 of part I may be deposited in this
account. This fund may be used only for private sector
activities; however, other funds provided under section 106 or
other sections of the Act will remain available for private
sector activities as well. Income and reflows arising from the
fund, including the repayment of loans made from the fund,
return of capital, capital gains and fees charged for
transactions, will be deposited in the fund for further use.
The purpose of the revolving fund is to create a source of
funds which can be made available for a variety of innovative
private sector activities. The authority to re-use loan
repayments and return of capital would permit the roll-over of
investments and thus afford a substantial leveraging effect.
Section 108(c) provides that the use of funds in the
revolving fund account shall not be subject to the restrictions
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 CIA-RDP95B00895R000300040020-7
rovisions of law, including the restrictions on use
of other p which
otherwise attach by virtue of the account to
which may
'de osited in the revolving fund were originally
the funds F to use the
appropriated. It also provides explicit authority
apFror
revolving fund to acquire equity.
106(d) Provides that when there are sufficient
Section be made
funds available in the revolving fund, repayments may the total amount of
until
to the United States Treasury at which time the fund
appropriated funds has been repaid, a _
shall be deemed to consist entirely of nonappropriated funds.
rovides that AID may charge a fee when carrying
Section 108(e) P fund. Section
out activities with funds from the revolving fund is
108(f) provides that in the event the revolving be deposited
terminated, unobligated balances in the fund will
llaneous receipts account of the Treasury.
in the miscellaneous
which generally
Section 405(b) amends section 635(g)(3)-
direct acquisition of equity, to reference the
prohibits the fund
ion to acquire equity included in the revolving
authorizat
authorities.
SECTION 406. TRANSFER OF FUNDS permits
of the Act, which pThis section amends section 109 aunder chapter 1
the transfer of funds to and from the accounts
I to the
of part i of the Act and from chapter 1 of part
operating expense account. The amendment would add the Trade
program authorized under section 661 of the Act
and Development 1
to the accounts to which funds made available under chapter of part i of the Act could be transferred.
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
SECTION 407. SAHEL DEVELOPMENT PROGRAM
Section 407 amends section 121(c) of the Act, which
authorizes the Sahel Development Program. Section 121(c) is
amended to authorize $103,000,000 for that program for the
fiscal year 1964.
SECTION 406. HOUSING GUARANTY PROGRAM
Section 408(a) amends section 221 of the Act to reflect the
fact that housing guaranties are available for urban
development activities in addition to the construction of
housing in the narrow sense of the term. The amendments do not
expand existing authority. Their purpose is to bring section
221 into harmony with the authority provided under section
222. Section 221 was not amended at the time section 222 was
amended in 1978 to broaden its terms.
Section 408(b) amends section 222(a) of the Act, which
authorizes the housing guaranty program, by providing that
eligible investors under the program shall be defined by
regulation promulgated by the Agency for International
Development rather than by the current definition under section
238(c) of the Act, which is part of the OPIC legiglation and
more appropriate to its program. AID would expect to define
eligible investors for the housing guaranty program so as to
maximize the role of U.S. capital market lenders while
improving the negotiability of underlying notes.
Section 408(b) further amends section 222(a) to increase
the total amount of housing guaranties authorized to be
outstanding from $1,718,000,000 to $1,868,000,000 and to
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12: CIA-RDP95B00895R000300040020-7
provide that guarantee commitments are authorized for any
fiscal year only to the extent provided in appropriation acts.
Section 408(b) also amends section 222(a) to extend the
authority for the housing guaranty program from September 30,
1984 to September 30, 1985. Because the loans for which
guaranties are to be issued sometimes close after the end of
the fiscal year, therefore delaying the issuance of the
guaranties, the housing guaranty program needs authority that
extends beyond the fiscal year in which the guaranty was
authorized. This amendment provides the authority to issue
guaranties after the close of fiscal year 1984 and conforms
with past legislative practice in extending the program.
Section 408(c) amends section 223(f) of the Act, which
prescribes the maximum rate of interest allowable for housing
guaranties. The current provision ties the maximum rate to the
rate of interest applicable to housing mortgages insured by the
Department of Housing and Urban Development. it was originally
enacted at a time when the same lenders were active in both the
domestic HUD program and in AID's housing guaranty program.
Section 223(f) is amended to permit the Agency for
International Development to prescribe a maximum rate of
interest that is reasonable in comparison to rates on
comparable securities in the U.S. capital market to reflect the
broader range of investors now active in the program.
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
SECTION 409. AGRICULTURAL AND PRODUCTIVE CREDIT AND
SELF-HELP COMMUNITY DEVELOPMENT PROGRAMS
Sections 409(a) and (b) amend section 222A of the Act to
make the guaranty authority provided for in that section
available world-wide. The program is currently restricted to
Latin America. This amendment reflects the transfer of
responsibility for this program within AID from the Latin
American and Caribbean Bureau to the Private Enterprise Bureau.
Section 409(c) amends section 222A(c) to increase the total
amount of guaranties that may be issued under this authority
from $20,000,000 to $40,000,000 and to provide that commitments
to guarantee loans under section 222A are authorized only to
the extent provided in appropriation acts.
Section 409(d) amends section 222A(h) to extend the
authority for the program from September 30, 1983 to September
30, 1985.
SECTION 410. FAMINE PREVENTION AND FREEDOM FROM HUNGER
This section amends section 297(a)(5) of the Act to provide
authority to transfer AID employees to international
agricultural research centers. Authority currently exists to
transfer federal employees to public international
organizations under the Federal Employees international
Organization Service Act (5 U.S.C. Secs. 3343, 3581-3584).
Most of the agricultural centers do not qualify as "public
international organizations", however, because the majority of
their governing boards are not composed of governmental
representatives. This amendment would provide an authority to
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 CIA-RDP95B00895R000300040020-7
AID employees to international agricultural research
transfer
similar to the authority that now exists to transfer
centers In
these employees to public international organizations.
it would permit a closer collaborative relationship
doing so,
between AID and these centers.
TITLE V - MISCELLAVEOUS PROVISIONS
SECTION 501. AMERICAN SCHOOLS AND HOSPITALS ABROAD
of the Act, which
This section amends section 214(c) Hospitals Abroad. It
authorizes funds for American Schools and Hfiscal year 1984?
authorizes $7,500,000 for that program for the f
TIOP~ 502. INTERNATIONAL ORGANIZATIONS AND PROGRAMS
SEC which
Section 502 amends section 302(a)(1) of the Act,
authorizes funds for International Organizations and programs.
000 for
Section 302(a)(1) is amended to authorize .$189,950,
these programs for the fiscal year 1984. Section 302(a)(1) is
also amended to strike the second sentence, which earmarked
funds for fiscal years 1982 and 1983 and is obsolete.
SECTION 503. INTERNATIONAL NARCOTICS CONTROL to authorize
This section amends section 482(a) of the FAA
o riations for International Narcotics Control of
appr p
$53,030,000 for fiscal year 1984.
. INTERNATIONAL DISASTER ASSISTANCE
SECTIOi; 504 to
Section 504(a) amends section 492(a) of the Act authorize $25,000,000 in appropriations for international
Disaster Assistance for the fiscal year 1984.
Section 504(b) further amends section 492 of the Act by
n the establishment of a special reserve fund for
authorize 9
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
assistance. Funds appropriated pursuant to section
disaster year may
492(a) which remain unexpended at the end of a fiscal y year
maintained in this special fund and carried over from y
be mai out the purposes
to year. The fund will be available to carry this
of section 491 of the Act. The purpose for establishing
is to ensure that sufficient funds exist to meet
reserve ear.
ncY needs, particularly at the end of the fiscal y
up
emerae
current section 492(b) permits the transfer o
Although
chapter 1 to the disaster
on from other accounts in
to $50 milli
assistance account for that reason, use of that mechanism
presents its own problems. Unanticipated transfers late in the
disrupt program planning in the affected accounts,
fiscal year approaches, all accounts are
ear and, as the end of the fiscal Y emergency
not have sufficient funds in them to meet the
low and may
This new provision would provide an alternative to
needs. T which is
use of the authority provided in section 492(b)~
redesignated subsection (c)' ,S AND COST ESTIpIATES
COPIPLETION OF PLANS
SECTION 505. of the Act, which
Section 505(a) amends section 611(a)
adequate plans and cost estimates be completed
requires that That
prior to the obligation of funds in excess of $100,000. 00 000
to a minimum amount of
provision is amended to apply
to take account of the inflation that has
rather than $100,000,
occurred since the provision was enacted ib 1958-
of the Act, which
Section 505(b) amends section 611(b)
that cost/benefit analyses be conducted for water
requires
accordance with the Principles and Standards for
projects in
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12: CIA-RDP95B00895R000300040020-7
planning Water and Related Land Resources, dated October 25,
1973. Section 611(b) is amended by eliminating the reference
to the above standards and instead providing that such analyses
shall be conducted in accordance with regulations established
by the Agency for International Development. The 1973
Principles and Standards were designed to be applied to water
projects constructed in the United States. They were found to
be inappropriate for the types of water projects financed by
AID.
SECTION 506. USE OF FOREIGN CURRENCIES
Section 104 of the Agricultural Trade and Development Act
of 1954, as amended (P.L. 480) permits the use of excess
foreign currencies generated under that Act under certain
circumstances without there being an appropriation or provision
in an appropriation act for use of such currencies. Section
612 of the Foreign Assistance Act, however, requires provision
in an appropriation act before excess foreign currencies
generated under part I of the Foreign Assistance Act (which, at
the time section 612 was enacted, included ESF) or under the
Mutual Security Act of 1954, as amended, may be used pursuant
to the authority of that section. This inconsistency may
result in the anomolous situation where some excess foreign that
urrencies may be used without an appropriation and others taare to be used for the same purpose in the same country may not
act. This
be used unless provided for in an appropriation a
amendment corrects that anomoly by permitting excess foreign
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
rrencies authorized for use by section 612 of the Foreign
assistance Act to be expended without an appropriation or
provision in
SECTION 507.
REPUBLIC OF
Section
Republic of
China) from
prohibited.
Republic of
country for
an appropriation act.
PROHIBITION AGAINST ASSISTANCE TO THE PEOPLE'S
CHINA
620(f) of the FAA is amended'to remove the People's
China and Tibet (which is administered as part of
the category of countries to which assistance is
As a result of this amendment, the People's
China would not be considered a "communist-bloc"
the purpose of section 620(h).
SECTION 508. ANNUAL REPORTS
Section 508(a) amends section 620(s) of the Act by
repealing subsection (2). Section 620(s)(2) requires the
President to report to Congress on his actions in taking into
account the impact of military expenditures on the budget of
recipients of foreign assistance. Most of the information
contained in this report is reported separately by the
Department of State pursuant to section 25 of the Arms Export
Control Act. The purpose of this amendment is to reduce
administrative costs by eliminating.this duplication of reports.
Section 508(b) amends section 634(a) by repealing
subsections (2)(B), (6), and (7). The purpose of this
amendment is also to reduce administrative costs by eliminating
duplicative reporting requirements. Section 634(a)(2)(B)
requires a report of the dollar value by category and country
of all foreign assistance. The information contained in this
report is already reported to Congress in the "all-spigots"
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
tables for each country included in the Congressional
Presentation. Section 634(a)(6) requires a report of the
dollar volume of foreign assistance for all OECD and OPEC
countries. Section 634(a)(7) requires a report of the
percentage of both the GNP and the budget of each type of
assistance for every OECD and OPEC country, and the per capita
contributions of these countries. The data required by these
reports is difficult to derive, since other donors do not
disaggregate and report official development assistance in
categories comparable to those used in categorizing U.S.
assistance. The data that does exist is already available to
the Congress in the annual report of the DAC Chairman, as well
as in other OECD and World Bank publications.
SECTION 509. NOTIFICATION OF PROGRAM CHANGES
This section makes funds appropriated to carry out the
purpose of the Arms Export Control Act subject to the
reprogramming requirements of section 634A and the reporting
requirements of section 653(a) of the FAA. This section also
deletes certain reporting requirements for FMS financing which
would be redundant in light of this amendment to sections 634A
and 653(a). in addition, this section deletes the requirement
that a section 653(b) report be filed in certain cases before
assistance is provided. These changes streamline and make
standard various overlapping report and reprogramming
requirements, but do not materially change the type of
information provided to the Congress.
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12: CIA-RDP95B00895R000300040020-7
91
This section also amends section 634A of the Act by
eliminating the requirement under that provision to notify
Congress 15 days in advance of obligating funds in cases where
the obligation will exceed the prior amount justified for the
year by 10 percent or less. This change will permit needed
flexibility to reallocate funds at the end of the fiscal year
while not allowing significant changes without prior
congressional notification.
Section 634A of the FAA is further amended to establish a
threshold of $50,000 on reprogramming notices to the Congress
for International Narcotics Control and IMET programs. Had
such a threshold been in effect during fiscal year 1981,
sixteen of thirty IMET reprogramming notices would not have
been required under section 634A.' Eliminating small
programming changes for reprogramming requirements would permit
rompt execution of small but politically sensitive training
p against
programs and would provide a fast reaction capability illicit narcotics efforts. Reprogramming notices to the
Congress would still be required for countries for which a
program had not previously been justified to the.Congress for
p g
that fiscal year,"even if the amount to be provided to such
country would fall below the $50,000 threshold.
SECTION 510. ADMINISTRATIVE USES OF FUNDS
amends section 636(c),of the Act by
Section 510(a)
eliminating the $3,000,000 ceiling on the use of funds to
construct or acquire essential living quarters, office space,
schools, and hospitals for use of U.S. Government personnel
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
posted outside the United States conducting activities
authorized by the Act. As a result of greatly increased
leasing costs overseas, it is now often more economical over
the long run for the U.S. Government to purchase or construct
living quarters than to lease them. Additionally, for security
reasons and otherwise, in several countries no suitable
quarters are available for leasing. The $3,000,000 limitation
on use of funds for purchase or construction of overseas
facilities no longer allows the U.S. Government sufficient
flexibility to provide these facilities in an economical manner.
Section 510(b) amends section 636(d) of the Act by raising
the ceiling on use of funds for supporting schools for
dependents outside the United States from $2.5 million to $5.0
million. The $2.5 million limitation has been in effect since
1969. Inflation has greatly reduced the purchasing power of
that amount since that time, while the number of schools being
supported has increased from 43 to 57. The funds are no longer
sufficient to provide adequate support to overseas schools. As
a result, the quality of these schools is deteriorating.
Section 510(c) amends section 636(a)(14) of the Act to make
a technical change. The "Foreign Service Act of 1980" is
substituted for the "Foreign Service Act of 1946", which it
replaced.
Section 510(d) amends section 636 of the FAA by adding a
new subsection (j) to allow statutory earmarks to be converted
from fixed to proportionate requirements during periods when
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
-25-
funds are appropriated by a continuing resolution. During
periods when funding is made available by a continuing
resolution, foreign assistance programs may operate at funding
levels significantly below authorized levels, in these
circumstances serious problems may be encountered in assisting
countries which do not have funds earmarked for their benefit.
This section would allow the Executive Branch to allocate to
earmarked countries an amount in the same proportion to
available CR funds as the original earmark was to the total
level authorized or appropriated in the Act which established
the earmark.
SECTION 511. TRADE AND DEVELOPMENT PROGRAt9
This section amends section 661(b) of the Act, which
authorizes funds for the Trade and Development Programs ram
Section 661(b) is amended to provide authority for this program
for the fiscal year 1984 in the amount of $22,000,000.
SECTION 512. OPERATING EXPENSES
This section amends section 667(a) of the Act, which
expenses of the Agency for
authorizes funds for operating
International Development. Section 667(a) of the.Act is
amended to provide authority for the fiscal year 1984 in the
amount of $378,512,000.
SECTION 513. REPEAL OF PROVISION'S
This section repeals provisions of the Act which are
obsolete. It also repeals section 110(b), which prohibits
disbursement of grant assistance for a project .over a period
exceeding thirty-six months. At the time this prohibition was
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
enacted, it provided a useful control for the Congress over
large capital assistance projects. The Agency no longer
participates much in that type of project, and the Congress now
has a better review mechanism through the congressional
notification process. Section 110(b), therefore, is no longer
necessary.
TITLE VI - AMENDMENTS TO OTHER ACTS
.SEC. 601. PARTICIPANT TRAINEE GRANTS
This section amends section 1441(c)(6) of the'Internal
Revenue Code to exempt from withholding and exclude from gross
income amounts received as scholarships, per diem, travel and
other related expenses by non-resident aliens engaged in
training programs in the United States under the Act. Current
provisions of the I.R.C. exclude income to AID participant
trainees from U.S. tax liability up to specified dollar
limitations. in the past these exclusions have been high
enough to completely exempt the participants from U.S. tax
liability, and no taxes have had to be withheld by AID or
contractors and PVOs implementing the participant trainee
programs. As a result of inflation, however, income under AID
scholarship programs now exceed the exclusion and the
participants incur tax liability. Withholding income taxes for
each participant trainee would result in high administrative
costs to the implementing contractors and PVOs that would
ultimately be passed on to AID. it would also reduce the
amount of funds actually available for the training programs
themselves. This provision is intended to correct these
problems.
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12: CIA-RDP95B00895R000300040020-7
SECTION 602. FOOD FOR DEVELOPMENT PROGRAM
This section amends section 305 of the Agricultural Trade
Development and Assistance Act of 1954, which sets forth the
methods of establishing loan forgiveness under Title III of
that Act, to permit loan forgiveness to be linked to policy
changes, or the results of such changes, made by the recipient
government. Current legislation permits loan forgiveness at
the time the commodities provided, or currencies generated from
the sale thereof, are used or disbursed for mutually agreed
upon activities. The amended provision would continue to
require that commodities or currencies be programmed.
However,the timing of forgiveness could be linked to policy
changes if both governments so agreed.
SECTION 603. AFRICAN DEVELOPMENT FOUNDATION
This section amends Title V of the International Security
and Development Cooperation Act of 1980 to authorize the
appropriation of $3,000,000 for the African Development
Foundation for the fiscal year 1984.
TITLE VII - SUPPLEMENTAL AUTHORIZATIONS FOR FY 1983
SECTION 701. MILITARY SALES AND RELATED PROGRAMS, in the
This section authorizes an increase of $425,000,000
al amount
limit established in P.L. 97-377 on the total princip year
be issued during fiscal ye
of loans for which guaranties may
1983 under section 24(a) of the AECA. In. addition, this
section authorizes an increase in appropriations of
167,000,000 above the amount made available in P.L. 97-377 to
$ year 1983.
carry out the military assistance program for fiscal y
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
 Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7
SECTIOi: 702. ECOINC*;IC SUPPORT FUND
This section authorizes an increase of $145,500,000 in the
authorization for appropriations for the Economic Support Fund
for fiscal year 1963.
TITLE VIII - AJTFGRIZATICNS FOR THE FISCAL YEAR 1965
AND EFFECTIVE DATE
SECTION 801. AUTHORIZATION'S FOR THE FISCAL YEAR 1985
This section, in accordance with the requirements of
section 607 of the Congressional Budget Act of 1974, authorizes
appropriations for fiscal year 1985 for all programs and
activities for which appropriations for the fiscal year 1984
are authorized by this Act.
SECTION 802. EFFECTIVE DATE
This section provides that the effective date for title II
and VII shall be upon enactment. Sections 104 and 105 would be
effective upon the later of enactment or October 1, 1983, to
avoid the possibility that the change in penalties under the
AECA would be retroactive and to allow adequate time to
implement the change in pricing for training. A'11 other
sections would be effective on October 1, 1983.
Approved For Release 2008/09/12 : CIA-RDP95B00895R000300040020-7