CONFERENCE REPORT ON S. 1443, [ ] DEFENSE ARTICLES AND SERVICES TO FOREIGN COUNTRIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000600170017-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 17
• Document Creation Date: December 9, 2016
• Document Release Date: August 24, 2001
• Sequence Number: 17
• Publication Date: November 27, 1973
• Content Type: OPEN

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i
itcd States
ol America
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PROCEEDINGS AND DEBATES OF THE 93 CONGai:SS, 1,7.11?.ST L)SFL),.4
JUI.1111011.14111110...6"
RIC,121443110Min,,,,,,,,,,19.101MINNIMPF
Vol. 119
WASHINGTON, TUESDAY, NOVEMBER 27, 1973 No. 182
House
.D2
rt:lie House mat at 12 o'clock noon.
The Chaplain, Rev. Edward G. Latch,
D.D., offered the following prayer:
V'cacit me Thy way, 0 Lord, that I may
walk i;1, Thy truth; unite my heart to
f car Th name.?Psalms 86: 11.
0 Thou who art good, whose love is
cs,crHsting, and whose truth endures
.tdiroi:- it all the ages, open our eyes that
! r1!1- see the way Thy spirit is beckon-
ing iii and open our ears that we hear
the voice of Truth as she calls us to be
iiehearted, wholehearted, faithful, and
l? 'ii in this critical hour of our na-
;.inual lire. Give to us the dauntless cour-
ei to so live our own lives and to so
lead our people that we as a nation may
be liCted above the bitterness that blights
the brightness of brotherhood and be
carried beyond the strife which separates
the spirits of men.
7,-Inke us united in great purposes, ele-
vfii(!6 to genuine sympathies and eager
lay all i;-ood works. Keep us close to Thee
,- clay that we may walk the way of
tyiitli and live the life of love for the
ss.1..e
of our country and the peace of the
vtoriti: Through Jesus Christ our Lord.
Amen.
THE JOURNAL
ii ,A"EAKER. The Chair has exam-
he Journal of the last day's pro-
cts and announces to the House his
thei:oof.
li,t,bout objection, the Journal stands
?
wa.s no objection.
FROM THE
SENATE
tr.cs,iage from the Senate by Mr.
one of its clerks, announced
tht.i, the Senate had passed a bill of the
1ottc,-,7ing title, in which the concurrence
1;:le liTOUSe is requested:
110(i. An act to amend the Federal Re-
eecte Act to avoid undue delays in the col-
iii of infOrmation by Government agen-
REPORT ON S. 1443,
DEFENSE ARTICLES
. ?,ttM,VICES TO FOREIGN "(2) Future United States bilateral sup-
pro ,ems tnuee tAt1PrSeettelt tOfe0
, Approved For RattittVed2MM oq Ac-2.0
I,IO2,GAN submitted the following affect the lives of the majority of the people ?
',ronce report and statement on the in the developing dountries; food production;
re:,s'-rE/?
bill (S. 1413) to authorize the furnish-
ing of defense articles and services to
foreign countries and international or-
ganizations:
CONFERENCE REPORT (H. REPT. No. 93-664)
The committee of conference on the dis-
agreeing votes of the two Houses on the
amendments of the House to the bill (S.
1443) to authorize the furnishing of defense
articles and services to foreign countries and
international organizations, having met,
after full and free conference, have agreed
to recommend and do recommend to their
respective Houses as follows:
That the Senate recede from its disagree-
ment to the amendment of the House to the
text of the bill and agree to the same with
an amendment as follows: In lieu of the
matter proposed to be inserted by the House
amendment insert the following:
That this Act may be cited as the "Foreign
Assistance Act of 1973".
POLICY; DEVELOPMENT ASSISTANCE
AUTHORIZATIONS -
SEC. 2. Chapter 1 of part I of the Foreign
Assistance Act of 1961 is amended as follows:
(1) In the chapter heading, immediately
after "CHAPTER 1?POLICY", insert "; DEVEL-
OPMENT ASSISTANCE AUTHORIZATIONS".
.,(2) In section 102-, ' ?
(A) insert "(a)" immediately after "STATE-
MENT OF POLICY.?"; and
(B) add at the end thereof the following:
"(b) The Congress further finds and de-
clares that, with the help of United States
econoniic assistance, progress has been made
in creating a base for the economic progress
of the less developed countries. At the same.
time, the conditions which shaped the
United States foreign assistance program in
the past have ? changed. While the United
States must continue to seek increased co-
operation and mutually beneficial relations
with other nations, our relations with the
less developed countries must be revised to
reflect -the new realities. In restructuring
our relationships with these countries, the
President should place appropriate empha-
sis on the following criteria:
"(1) Bilateral development aid should con-
centrate increasingly on sharing American
technical expertise, farm commodities, and
industrial goods to meet critical develop-
ment problems, and less on large-scale cap-
ital transfers, which when made should be
in association with contributions from other
industrialized countries working together in
a multilateral framework.
a
rural development and. nutrition; go; 'ala-
Lion planning and health; and education,
public admnfistration, and human vi are
development.
"(3) United Slates cooperation hi develop-
ment should be carried out to the 10.-0,.
extent possible through 12ve privete e.ecter,
including those institutione which sa?e;oly
have ties in the developing areas, ellen
educational institutions, coonerat.vee, Lilt. it
unions, and. voluntary agencic
"(4) Development plannios,- r .15 he
responsibility of each SOVO,:nigi; ee entry,
United States assistance ,eieeinie-
tiered in a collaborative style to tip oil; Pie
development goals chosen by each col Smrry
receiving assail nee.
"(5) United States bilateral deevelorneo
assistance should give the lngliiest pvetrity
to undertakings submitted by 'met ;,,,vein-
meats which directly improve tiee ,ire,; of
the poorest of their people and thebi
to participate in the development or th,
countries.
"(6) The economic and social developnlent
programs to which the United States
support should reflect, to the mai.inoon co:-
tent practicable, the role of Uni or eta-
private investment in such er.:on,;:,00 ;LOU
social development programs.
"(7) Under tho policy guidnee
rotary of State, the agency primari:i,
sible for administering this p.ut .tire
tho responsibility for ccordiro; tine; I ale',
States develoonient-related aetivi,
(3) At the end thereof, add li,c
new sections:
"SEc. 103, Foot, AND NUTItiT LON
to alleviate starvation, hunger, e r
and to provide basic 6e-i-vai:t, -
people, enhancing their capae fra s-n
the President is authorized Lo fui, eh.,
mice, on such terms and conditeone
may determine, for agriculture, riniti cicvr -
opment, and nutrition. There an: ?,
to be appropriated to the Ptetir.%:.,,
purposes of this section, in add 101 111 ae.,
otherwise available for such durao,c e, O.a:1,-
000,000 for each of the fiscal year 91 and
1975, which amounts are authoriv,,,d 110 -re-
main available until expenciiN,.
"Sec. 104. POPULATION 1:-'6ANI41.,-..l;
HEALTH.--In order to increaec opdortn-
nities and motivation for fe;oily roanning.
to reduce the rate of populatim
prevent and combat dieeeoe, anti LI Urn.,
so-
vids health services for the t ea, jorn.v.
the PreicloAt is authorized to , .-
ance on such is ram and condi ieme, no Irut
determine, for population planuinr; isO
health. There are authoriaerl to be appro-
priated to the President for th.- pte?pc.t-is
() :ri:
1111#1
of this section, in addit.
ilITA401701747 0,1 lc)
0
1975, which 2m aunts ar;)
main available until
4,,
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ovemer
27, 1973CONGRESSION
'Sec. 195. EDUCATION AND HUMAN RE-
,sOURCE.S DEVELOPMENT.?Ill order to reduce
;l1 it to extend basic education and to
increase manpower training in skills related
to development, the President is authorized'
to furnish assistance on such terms and con-
dii as he may determine, for education,
public administration, and human resource
development. There are authorized to be ap-
propriated to the President for the purposes
of this section, in addition to funds-other-
ink;(' available for such purposes, $90,000,000
for each of the fiscal years 1974 and 1975,
which amounts are authorized to remain
available until expended.
''SEC. 106. SELECTED DEVELOPMENT PROFS-
Lnms.--The President is authorized to furnish
assistance on such terms and conditions as
he may determine, to help solve economic
and social development problems in fields
such as transportation, power, industry,
urban development, and export development.
There are authorized to be appropriated to
the President for the purposes of this sec-
tion, in addition to funds otherwise available
for such purposes, $53,000,000 for each of the
fiscal years 1974 and, 1976, which amounts
are authorized to remain available until
expended.
'Sec. 107. SELECTED COUNTRIES AND 01IGA-
NrzATomvs.?The President is authorized to
furnish assistance on such terms and con-
ditions as he may determine, in support of
the general economy of recipient countries
or for development programs conducted by
private or international organizations. There
are authorized to be appropriated to the
President for the purposes of this section, in
addition to funds otherwise available for such
purposes, $39,000,000 for each of the fiscal
years 1974 and 1975, which amounts are au-
thorized to remain available until expended.
"Sec. 108. APPLICATION OF EXISTING PROVI-
sioNs.---Assistance under this chapter shall
be furnished in accordance with the provi-
:;ions of titles I, II, or X of chapter 2 of this
pa and nothing in this chapter shall be
construed to make inapplicable the restric-
tions, criteria, authorities, or other provi-
sions of this or any other Act in accordance
with which assistance furnished under this
chapter would otherwise have been provided.
"St:e. 109. TRANSFER OF FUNDS.--Notwith-
standing section 108 of this Act, whenever
toe President determines it to be necessary
for the purposes of this chapter, not to ex-
ceed 15 per centum of the funds made avail-
able for any provision of this chapter may be
transferred to, and consolidated with, the
funds made available for any other provision
of this chapter, and may be used for any of
the purpcaes for which such funds may be
115:Z.TI, except that the total in the provision
for the benefit of which the transfer is made
shall not be increased by more than 25 per
centum of the amount of funds made avail-
able for such provision. The authority of 'sec-
tions 610(a) and 614(a) of this Act may not
be used to transfer funds made available
under this chapter for use for purposes of
any other provision of this Act.
"SEC. 110. COST-SHARING AND FUNDING
Lrnarrs.?(a) No assistance shall be furn-
ished by the United States Government to a
country under sections 103 through 107 of
this Act until the country provides assur-
ances to the President, and the President is
sati:died, that such country will provide at
least .25 per centum of the costs of the entire
proarem, project, or activity with respect
to which such assistance is to be furnished,
exoept that such costs borne by such coun-
try may be provided on an `inkind' basis.
b) No grant assistance shall be dis-
buraect by the United States Government
under sections 103 through 107 of this Act
rar a project, for a period exceeding thirty-
consecutive months, 4 rthlAs.;
,ification satisfactory t3V1363 repot
efforts being made to obtain sources of fi-
nancing within that country and from other
foreign countries and multilateral organiza-
tions.
"SEC. 111. DEVELOPMENT AND USE OF CO-
OPERATIVE:L-1n order to strengthen the par-
ticipation of the urban and rural poor in
their country's development, not less than
$20,000,000 of the funds made available for
the purposes of this chapter shall be avail-
able during the fiscal years 1974 and 1975
only for assistance in the development of
cooperatives in the less developed coun-
tries which will enable and encourage great-
er numbers of the poor to help themselves
toward a better life.
"Sec. 112. PROHIBITING POLICE TRAINING.?
(a) No part of any appropriation ii-
able to carry out this Act shall be used to
bonditat any police training or related pro-
gram in a foreign country.
"(b) Subsection (a) of this section shall
not apply?
"(1) with respect to assistance rendered
under section 515(c) of the Omnibus Crime
Control and Safe Streets Act of 1968, as
amended, or with respect to any authority of
the Drug Enforcement Administration or the
Federal Bureau of Investigation which re-
lates to crimes of the nature which are
unlawful under the laws of the United
States; or
"(2) to any contract entered into prior
to the date of enactment of this section with
any person, organization, or agency of the
United States Government to provide per-
sonnel to conduct, or assist in conducting,
any such program.
Notwithstanding paragraph (2), subsection
(a) shall apply to any renewal or extension
of any contract referred to in such para-
graph entered into on or after such date of
enactment.
"Sec. 113. INTEGRATING WOMEN INTO NA-
TIONAL ECONOMIES.?Sections 103 through
107 of this Act shall be administered so as to
give particular attention to those programs,
projects, and activities which tend to inte-
grate women into the national economies of
foreign countries, thus imProving their
? status and assisting the total development
effort.
"SEC. 114. LIMITING USE OF FUNDS FOR
ABORTIONS.?None of the funds made avail-
able to carry out this part shall be used to
pay for the performance of abortions as a
method of family planning or to motivate or
coerce any person to practice abortions."
DEVELOPMENT LOAN FUND
SEC. 3. (a) Section 203 of the Foreign As-
sistance Act of 1961 is amended to read as
follows:
"SEc. 203, FISCAL PROVISIONS.?NO]t more
than 50 per centum of dollar receipts sched-
uled to be paid during each of the fiscal
years 1974 and 1975 from loans made pur-
suant to this part and from' loans made
under predecessor foreign assistance legisla-
tion are authorized to be made available for
each such fiscal year for use for purposes of
making loans under chapter 1 of this part.
Such receipts shall remain available .until
expended."
(b) Effective July 1, 1975: such section 203
is repealed.
TECHNICAL COOPERATION AND DEVELOPMENT
GRANTS
SEC. 4. Title II of chapter 2 of part I of the
Foreign Assistance Act of 1961 is amended as
follows:
- (1) In section 211 (a), in the last sentence
immediately after the word "assistance", in-
sert the word "directly".
(2) In section 214, strike out subsections
(c) and (d) and insert in lieu thereof the
following:
"(c) To carry out the purposes of this sec-
tlntherexthitiMand.tctimitiorad shall further include a statement or aututing
eAsie-ead 6B0G3801740006004:70017-411
.,.,!epared by the
1974 and 1975 819,000,000, which amounts are Comptroller General of the United States, for
aultloredzri. ed to remain available until ex-
pended.
There are authorized to be appro-
priated to the President to carry out the pur-
poses of this section, in addition to funds
otherwise available for such purposes, for
each of the fiscal years 1974 and 1975
$6,500,000 in foreign currencica which the
Secretary of the Treasury deter/Macs to be
excess to the normal requirements of the
United States.
"(e) Not later than June 30, 1974, the Sec-
retary of State shall submit; to the Congress
such recommendations (including recom-
mendations concerning which agency of the
United States Government should
iiclmiii-
isicr such assistance) RS he considers de-
sirable for assistance to schools, libraries, and.
hospital centers for medical education and
research, outside the United States, founded
or sponsored by United States citizens and
serving as study and demonstration centers
for ideas and practices of the United States."
HOUSING GUARANTIES
SEC. 5. Title III of chapter 2 of part I
of the Foreign Assistance Act of 1961 is
amended as follows:
(1) In section 221, strike out "$205,000,-
000" and insert in lieu therebf "$305,000.000".
(2) In section 223(i), strike. out "June 30,
11977,.
45", and insert in lieu thereof "June 30,
9
OVERSEAS PRIVATE INVESTMENT CORPORATION
SEC. 6. Title IV of chapter 2 of part I of
the Foreign Assistance Act of 1961 is amend-
ed as follows:
(1) In section 235(a) (4) , strike out "June
30, 1974" and insert in lieu thereof "Decem-
ber 31, 1974".
(2) In section 240(11), strike out "June 30,
1973" and insert in lieu thereof "December
31, 1974".
ALLIANCE FOR PROGRESS
SEC. 7. Section 252(b) of the Foreign As-
sistance Act of '1961 is amended to read as
follows: ?
"(b) There are. authorized to be appro-
priated to the President for the fiscal year
1974, $934,000, and for the fiscal year 1975,
$934,000, for grants to the National Asso-
ciation of the Partners of the Alliance, Inc..
in accordance with the purposes of this title."
PROGRAMS RELATING TO POPULATION CROWTII
SEC. 8. Section 292 of the Foreign Assist-
ance Act of 1901 is amended by striking out
"for each of the fiscal years 1972 and 1973,
$125,000,000" and inserting in lieu thereof
"for the fiscal year 1974, $125,000.000, and
for the fiscal year 1975, $130,000,000".
INTERNATIONAL ORGANIZATIONS AND erocamixas
SEC. 9. Chapter 3 of part I of the Foreign
Assistance Act of 1961 is amended as follows:
(1) At the end of section 301 add the fol-
lowing new subsection:
"(e) (1) In the case of the United Mations
and its affiliated organizations, including the
International Atomic Energy Agency, the
President shall, acting through the United
States representative to such organizations,
propose and actively seek the establishment
by the governing authorities of such orga-
nizations a single professionally qualified
group of appropriate size for the purpose of
providing an independent and continuous
program of selective examination, review, and
evaluation of the programs and activities of
such organizations. Such proposal shall pro-
vide that such group shall be estabilahee in
accordance with such terms of reference as
such governing authority may prescribe and
that the reports of such group on each exam-
ination, review, and evaluation shall be sub-
mitted directly to such governing authority
for transmittal to the representative of each
individual member nation.-itch proposal
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vember 27, 1973 CONGRESSIONAL RECORD ? E
t11e conrAderation of the governing authority
ot lie international organization concerned
I o sssist in formulating terms of reference for
aneli review and evaluation group.
"(2) In the case of the International Bank
for P,a;onstruction and Development and
-the IV Development Bank, the President
aP 11,setmg through the United States.repre-
:as-dative to such organizations, propose and
as' ively seek the establishment by the goy-
esnina authorities of such organizations pro-
feseiorally qualified groups of appropriate
size for the purpose of providing an inde-
pendent and continuous program of selec-
tive examination, review, and evaluation of
the proarams and activities of such organiza-
tioos. Such proposal shall provide that such
groups ahall be established in accordance
with snchsterms of reference as such govern-
ing authorities may prescribe, and that the
rcports of such groups on each examination,
review, and evaluation shall be submitted di-
rectly to such governing authority for trans-
wittal to the representative of each indi-
vidual member nation. Such proposal shall
further include a statement of auditing and
reporting standards, as prepared by the
Comptroller General of the United States, for
the consideration of the governing authority
of the international organization concerned
to asist in formulating terms of reference for
such review and evaluation groups.
"(3) Reports received by the United States
representatives to these international orga-
nizations under this subsection and related
information on actions taken as a result of
recommendations made therein shall be sub-
nutted promptly to the President for trans-
mittal to the Congress and to the Comptrol-
ler General. The Comptroller General shall
Tioclically review such reports and related
information and shall report simultaneously
to the Congress and to the President any sug-
plinlIS the Comptroller General may deem
appropriate concerning auditing and report-
in;, standards followed by such groups, the
recommendations made and actions taken as
resl,lt of. such recommendation's."
(2) In section 302(a), strike out "for the
fiscal year 1972, $138,000,000 and for the
fiscal year 1973, $133,000,000" and insert in
lieu shereof "for the fiscal year 1974, $127,-
fr2e00 and for the fiscal year 1975, $150,000,-
ON".
In section 302(b) (2), strike out "for
vise in the fiscal year 1972, $15,000,000, and
for 1.V-3,` in the fiscal year 1973, $15,000,000"
mid insect in. lieu thereof "for use in the fis-
cal year 1974, $14,500,000, and for use in the
fiscal year 1975, $14,500,000,".
(4) Section 302(d) is amended to read as
- follows: ?
"id) Of the funds made available to carry
out this chapter for each of the fiscal years
ScV, and 1975, $18,000,000 shall be available
in each such fiscal year Only for contribu-
tions to the United Nations Children's
Funds'
(5) In section 302(e), strike out $1,000,000
for the fiscal year 1972 and $1,000,000 for the
fiscal year 1973" and insert in lieu thereof
"se,000,000 for the fiscal year 1974 and $2,-
000,000 for the fiscal year 1975"..
CONTINGENCY FUND
SEC. 10. Section 451(a) of the Foreign As-
aistsnce Act of 1961 is amended to read as
follow";: "(a) There ? is authorized to be
apprepriated to the - President for each of
the 1,,T:cal years 1974 and 1975 not to exceed
a:30,000,000, to provide assistance 'authorized
by this part primarily for disaster relief pur-
roses, in accordande with the provisions ap-
plicable to the furnishing of such assist-
snee."
INTERNATIONAL NARCOTICS CONTROL
S7:C. 11. (a) Section 481 of the Foreign
"(b) (1) Not later than forty-five days
after the date on which each calendar
quarter of each year ends, the President shall
transmit to the Speaker of the House of Rep-
resentatives, and to the Committee on For-
eign Relations of the Senate, a report on the
programing and obligation, on a calendar
quarter basis, of funds under this chapter
prior to such date.
"(2) Not later than forty-five days after
the date on which the second calendar
quarter of each year ends and not later than
forty-five days after the date on which the
fourth calendar quarter of each year ends,
the President shall transmit to the Speaker
of the House of Representatives, and to the
Committee on Foreign Relations of the Sen-
ate, a complete and detailed semiannual
report on the activities and operations car-
ried out under this chapter prior to such
date. Such semiannual report shall include,
but shall not be limited to?
"(A) the status of each agreement con-
cluded prior to such date with other coun-
tries to carry out the purposes of this chap-
ter; and -
"(B) the aggregate of obligations and ex-
penditures made, and the types and quantity
of equipment provided, on a calendar quarter
basis, prior to such date?
"(i) to carry out the purposes of this chap-
ter with respect to each country and each in-
ternational organization receiving assistance
under this chapter, including the cost of
United States personnel engaged in carrying
out such purposes in each such country and
with each such international organization;
"(ii) to carry out each program conducted
under this chapter in each country and by
each international organization, including
the cost of United States personnel engaged
in carrying out each such program; and
"(iii) for administrative support services
within the United States to carry out the
purposes of this chapter, including the cost
of United States personnel engaged in carry-
ing out such purposes in the United States."
(b) Section 482 of the 'Foreign Assistance
Act of 1961 is amended by striking out "$42,-
500,000" and all that follows down through
the period at the end of such section and
inserting in lieu thereof "$42,500,000 for each
of the fiscal years 1974 and 1975. Amounts ap-
propriated under this section are authorized
to remain available until expended."
MILITARY ASSISTANCE
SEC. 12. (a) Chapter 1 of part II of the
Foreign Assistance Act of 1961 is amended by
adding at the end thereof the following new
section:
"SEc. 502A. EXCESS DEFENSE ARTICLESEX-
cess defense articles shall be provided when-
ever possible rather than providing such ar-
ticles by the procurement of new items."
(b) Chapter 2 of part It of the Foreign As-
sistance Act of 1961 is amended as follows:
(1) Section 503 is amended to read as
follows:
"SEC. 503. GENERAL AUTHORITY.?(a) The
President is authorized to furnish military
assistance, on such terms and conditions as
he may determine, to any friendly country or
international organization, the assisting of
which the President finds will strengthen
the security of the United States and promote
world peace and which is otherwise eligible
to receive such assistance, by?
"(1) acquiring from any source and pro-
viding (by loan or grant) any defense article
or defense service; or
"(2) assigning or detailing members of
the Armed Forces of the United States and
other personnel of the Department of Defense
to perform duties of a noncombatant nature.
"(b) In addition to such other terms and
conditions as the President May determine
baratsiicsi;es on a loan basis rather than on a (.1303"(2) there la a reasonable expectation that.
such articles will be returnen to the sacney
making the loan at the end of the lean pe-
riod, unless the loan is then renewed:
"(3) the loan period is or fixed duration
not exceeding live years, dir:ing Which such
article may be recalled for any reason try the
United States;
"(4) the agency making the loan_ is 15110-
bursed for the loan based on the :iinount
charged to the appropriation for military
assistance under subsection (c) and
"(5) arrangements are in:nle with the
agency making the loan to be reimb-UMed in
the event such article is lost or destroyed
while on loan, - such reimbursement being
made first out of any funds available to
carry out this chapter and based on the
depreciated value of the article at -the time
of loss or destruction'.
"(c) (1) In the case of any loan of a. de-
fense article or defence service made under
this section, there shall be a charge 'To the
appropriation for military assistance for any
fiscal year while the article or service is on
loan in an amount based on?
"(A) the out-of-pocket expenses author-
ized to he t w
incurred in connect itli :owl)
loan during such fiscal year: 'ins."(B) .the depreciation which occurs dur-
ing such year while such ariacie is on loan
"(2) The provisions of this subsection
shall not apply?
"(A) to any particular defense ung.lcle. or
defense service which the United States 6ov-
ernment agreed, prior to the daLe oil enact-
ment of this subsection, to lend.: .21,Ci.
"(B) to any defense article or defense serv-
ice, or portion thereof, acquired with fonds
appropriated for military assistance under
this Act."
(2) In section 504(a)?
(A) strike out $500,000,000 for the fiscal
year 1972" and insert in lieu thereof "$512,-
500,000 for the fiscal year 1374"; and
(B) strike out "forty con.Mries" and insert
in lieu thereof "thirty-one countries".
(3) Section 505 is amended by adding the
following new subsections at the enci
thereof:
"(e) In considering a request fi,r ap-
proval of any transfer of any weapon, ,,vea-
pons system, munitions, aircraft, military
boat, military vessel, or other inapleinent of
war to another country, the President shall
not give his consent under sulaiection (a)
(1) or (a) (4) to the transfer unless the
United States itself- would transiar the de-
fense article under consideration to tioo,
country, and prior to the da:e he
give his consent to the transfer, the Presiidn
et
notifies the Speaker of the House of Repre-
sentatives and the Committee on Iforcian Re-
lations of the Senate in writing of each. silo)]
intended consent, the justification for giv-
ing such consent, the defense article for n
which he intends to give his consent in e
SO transferred, and the foreign country to
which that defense article is to be trans-
ferred. In addition, the President shall lieu.
give his consent under subsection (a) (1) or
(a) (4) to the transfer of any signifiCant de-
fense articles on the United States Munitions
List unless the foreign country requesting
consent to transfer agrees' to demilitarize
such defense articles prior to transfer, or the
proposed recipient foreign country provides
a commitment in writing to the United States
Government that it will not transfer such
defense articles, if not demilitarh,Ld, to ally
other foreign country or person with?, t first
obtaining the consent of the President.
"(f) Effective July 1, 1974, no defense ar-
ticle shall be furnished to any country on a
grant basis unless- such country shall have
Aa n pursuant to subsection (a), defense articles:;ista
ce Act of 1961 is amended by insert- agreed that the net proccecas of sale re-
ng "(a)" immediately AtdoriZaTiEOHAFM-741440t#741/8,
tgieMINAFAIANIt, (mom., T,,,11',1,01,aiurcraft,
4ri` An" fiO
NARCOTICS CONTROL.?" and' IDy addirrg art'h
end thereof the following new subsection: the shortage of funds, for providing such military boat, military vessel, or other fin-
I 01
el .
I.
Approved For MmOgy)ONE : C,I-75B00380R000600170017-4
plement of war received under this chapter
will be paid to the United States Government
and shall be available to pay official costs
of the United States Government payable in
the currency of that country, including all
costs relating to the financing of interna-
tional educational and cultural exchange ac-
tivl ties in Which that country participates
underhe t programs authorized by the Mu-
tual Education and Cultural Exchange
Act Of 1061."
141 To section 506 (a) ?
(A) strike out the fiscal year 1972" in
ce
each pla it appears and, insert in lieu
.thereof "the fiscal year 1974";
(B) strike out "vital to the security" and
insert in lieu thereof "in the security in-
terests"; and
(C) strike out "$300,000,000" and insert in
lieu thereof "$250,000,000".
(5) Sections 507, 508, 509, 512, and 514 are
repealed.
(6) Section 513 is amended?
(A) by striking out "THAILAND.?" in the
section heading and inserting in lieu thereof
"THAILAND AND LAOS.?(a)"; and
(B) by adding at the end thereof the fol-
lowing new subsection:
"(b) After June 30, 1974, no military assist-
ance shall be furnished by the United States
to Laos directly or through any other foreign
country unless th.at assistance is authorized
under this Act or the Foreign Military Sales
Act."
(c) Section 655(c) shall not apply to assist-
ance authorized to be furnished under any
provision of law for fiscal year 1974.
SECURITY SUPPORTING ASSISTANCE
SEC. 13. Chapter 4 of part IT of the Foreign
Assistance Act of 1961 is amended?
(1) in section 532 by striking out "for the
fiscal year 1972 not to exceed $618,000,000, of
which not less than $50,000,000 shall be avail-
able solely for Israel" and inserting in lieu
thereof "for the fiscal year 1974 not to exceed
$125,000,000, of which not less than $50,000,-
000 shall be available solely for Israel"; and
(2) by striking out section 533.
TERMINATION OF ASSISTANCE
SEC. 14. Section 617 of the Foreign Assist-.
ance Act of 1961 is amended by striking out
"twelve" and inserting in lieu thereof "eight"..
PROHIBITIONS ?
SFC. 15. The first full paragraph of section
620(e) (1) of the Foreign Assistance Act of
1961 is amended by striking out "no other
provision of this Act shall be construed to
authorize the President to waive the pro-
visions of this subsection." and inserting in
lieu thereof the provisions of this subsection
shall not be waived with respect to any coun-
try unless the President determines and
certifies that such a waiver is important to
the national interests of the United States.
Such certification shall be reported Imme-
diately to Congress."
EMPLOYMENT OF PERSONNEL '
SEC, 16. Section 625 of the Foreign Assist-
ance Act of 1961 is amended by adding at
the. end thereof the following new subsec-
tion:
'(k) (1) In accordance with such regula-
tions as the President may prescribe, the
following categories of personnel who serve
in the agency primarily responsible for ad-
ministering part I of this Act shall become
participants in the Foreign Service Retire-
ment and Disability System:
"(A) persons serving under unlimited ap-
pointments in employment subject to sub-
section (d) (2) of this section as Foreign Serv-
ice Reserve officers and as Foreign Service
staff officers and employees; and
"(B) a person serving in a position to which
he was appointed by the President, whether
with or without the advice and consent of
a- Senate, if (I) such. person ?s_11411._havq.?
-ed previously undeApprOakenellOskort
RECORD? HOUSE November 27, 1973
pointment pursuant to such subsection (d) section 821 of the Foreign Service Act of 1946,
(2) or a comparable provision of predecessor as amended.
legislation to this Act, and (ii) following "(8) Any officer or employee who is sep-
service specified in clause (i) of this sub- arated for cause while a participant in the
paragraph, such person shall have served con- Foreign Service Retirement and Disability
tinuously with such agency or Its predeces- System pursuant to this subsection. shall be
sor agencies only in positions established un- entitled to benefits in accordance with see-
der the authority of sections 624(a) and 631 tion 637 (b) and (d) of the Foreign Service
(b) or comparable provisions of predecessor Act of 1946, as amended. The provisions of
legislation to this Act. subsection (e) of this section shall apply
"(2) Upon becoming a participant in the to participants in lieu of the provisions of
Foreign Service Retirement and Disability , sections 633 and 634 of the Foreign Service
System; any such officer or employee shall Act of 1946, as amended."
make a special contribution to the Foreign
Service Retirement and Disability Fund in
REPORTS AND INFORMATION
accordance with the provisions of section 852 'SEC. 17. Section 634 of the Foreign Assist-
of the Foreign Service Act of 1946, as ance Act of 1961 is amended by striking out
amended. Thereafter, compulsory contribu- subsection (f) and inserting in lieu thereof
tions will be made with respect to each such - the following new subsections:
'participating officer or employee- in accord- "(f) The President shall transmit to the
ance with the provisions of section 811 of Speaker of the House of Representatives and
the Foreign Service Act of 1946, as amended, to the Committee on Foreign Relations of the
"(3) The provisions of section 636 and title Senate a comprehensive report showing, as of
VIII of the Foreign Service Act of 1946, as June 30 and December 31 of each year, the
amended, shall apply to participation in the status of each loan and each contract of
Foreign Service Retirement and Disability guarantee or insurance theretofore made un-
System by any such officer or employee. der this Act, with respect to which there
"(4) If an officer who becomes a partic- remains outstanding any unpaid obligation
ipant in the Foreign Seryice Retirement and or potential liability; the status of each sale
Disability System under paragraph (1) of of defense articles or defense services on
this subsection is appointed by the Presi- credit terms, and each contract of guarantee
dent, by and with the advice and consent in connection with any such sale, thereto-
of the Senate, or by the President alone, to fore made under the Foreign Military Sales
a position in any agency of the United States Act, with respect to which there remains mit-
Government, any United States delegation standing any unpaid obligation or potential
or mission to any international organiza- liability; the status of each sale of a-,gricul-
tion, in any international commission, or in ture commodities on credit terms theretofore
any international body, such officer shall not, made under the Agricultural Trade Develop-
by virtue of the acceptance of such an ment and Assistance Act of 1954, with respect
appointment, lose his status as a partic- to which there remains outstanding any un-
ipant in the system. paid obligation; and the status of each trans-
"(5) Any such officer or employee who action in which a loan, contract of guacantee
becomes a participant in the Foreign Serv- or insurance, or extension of credit (or par-
ice Retirement and Disability System under ticipation therein) was theretofore made u
paragraph (1) of this subsection shall be der the Export-Import Bank Act of 1945, with
mandatorily retired (A) at the end of the respect to which there remains outstanding
any unpaid obligation or potential liability,
month in which he reaches age seventy, or
(B) earlier if, during the third year after the ? Such report shall include individually only
effective date of. this subsection, be attains any loan, contract, sale, extension of credit,
age sixty-four or if he is over age sixty-four; or other transaction listed in this subsection
during the fourth -year at age sixty-three; in excess of $1;000,000,
during the fifth year at age sixty-two; dur-
"(g) The President shall transmit to the
log the sixth year at age sixty-one; and
Speaker of the House of Representatives and
to the Committee on Foreign Relations of the
thereafter at the end of the month in which
he reaches age sixty. However, no participant Senate, not later than January 31 of each
year, a comprehensive report, based upon the
shall be mandatorily retired under this pars-
graph while serving in a position to which latest data available, showing--
"
appointed by the President, by and with the (1) a summary of the worldwide dimen-
advice and consent of the Senate. Any partic-
sions of debt-servicing problems among such
ipant who completes a period of authorized
countries, together with a detailed statement
service after reaching the mandatory retire-
of the debt-servicing problems of each such
country;
"(2) a summary of all forms of debt re-
lief granted by the United States with -re-
spect to such countries, together with a de-
tailed statement of the specific debt relief
granted with respect to each such country
and the purpose for which it WaS granted;
"(3) a summary of the worldwide effect
(7)
of the debt relief granted by the United
This subsection shall become effective
on the first day of the first month which States on the availability of funds, authority,
or other resources of the United States to
begins more than one year after the date of make any such loan, sale, contract of guaran-
ployee who, before such effective date, meets
its enactment, except that any officer or em- tee or insurance, or extension of credit, to-
the requirements for participation in the gether with a detailed statement of the effect Foreign Service Retirement and Disability of such debt relief with respect to each such System under paragraph (1) of this subsec-
country; and
tion may elect to become a participant before "(4) a summary of the net aid flow from
the effective date of :this subsection. Such the United States to such countries, taking
officer or employee shall become a participant into consideration the debt relief granted
on the first day of the second month follow-
of his application for earlier by the United States, together with a detailed
ing the date
analysis of such net aid flow with respect
participation. Any officer or employee who to each such country."
becomes a participant in the system under ADMINISTRATIVE EXPENSES
the provisions of paragraph (1) of this sub- SEC. 18. Section 637(a) of the Foreign As-
tion, who is age fifty-seven or over on the sistance Act of 1961 is amended by striking
effective date of this subsection, may retire out "for the fiscal year 1972, 350,000,000, and
voluntarily at any time before mandatory for the fiscal year 1973, $50,000,000" and in-
r,p tirommisallomiltiNghtliimg9 n IrOiMoqg aeh of the fiscal
%Marten kffikedt '''Sr 4 a T975,7$75; 00".
ment age specified in this paragraph shall be
retired at the end of the month in which
such service is completed.
"(6) Whenever the President deems it to
be in the public interest, he may extend any
participant's service for a period not to
exceed five years after the mandatory retire-
ment date of such officer or employee.
Approved For Release 2001/08/30 : CIA-RDP75600380R000600170017-4
November 27,1973 CONGRESSIONAL RECORD ? HOUSE -
"(2) the total amounts of foreign currency
paid by each foreign country or interna-
tional organization to the United Ste tea Gov-
ernment in such fiscal year, what each pay-
ment was made for, whether any portion of
such payment was returned by the United
States Government to the country or orga-
nization from which the payment was
obtained or whether any such portion was
transferred by the United States Govern-
ment to another foreign country or interna-
tional organization, and, if so returned or
transferred, the kind of assistance obtained
by that country or organization with those
foreign currencies and the dollar value of
such kind of assistance;
"(3) the aggregate dollar value of all
weapons, weapons systems, munitions, air-
craft, military boats, military vessels, and
other implements of war, and the aggregate
dollar value of each category of such imple-
ments of war, exported under any export
license, to all foreign countries and interna-
tional organizations, and to each such coun-
try and organization, during that fiscal year;
"(4) all exports of significant defense
articles on the United States Munitions List
to any foreign government, international
organization, or other foreign recipient or
purchaser, by the United States under this
Act or any other authority, or by any Indi-
vidual, corporation, partnership, or other
association doing business in the United
States, including but not limited to, full
information as to the particular defense
articles so exported, the particular recipient
or purchaser, the terms of the export, in-
cluding its selling price, if any, and such
? other information as may he appropriate
to enable the Congress to evaluate the dis-
tribution of United States defense articles
abroad; and
"(5) such other matters relating to foreign
assistance provided by the United States
Government as the President considers
appropriate, including explanation of the
information required under clauses (1)
- through (4) of this subsection.
"(1)) All information contained in any
report transmitted under this section shall
be public information. However, in the case
of any item of information to be included
In any such report that the President, on an
extraordinary basis, determines is clearly
detrimental to the security of the United
States, he shall explain in a supplemental
report why publication of each specific item
would he detrimental to the security of the
United States. A supplemental report shall
be transmitted to the Congress at the same
time that the report is transmitted.
"(c) If the Congress is not in session at
the time a report or supplemental report is
transmitted to the Congress, the Secretary
of the Senate and the Clerk of the House of
Representatives- shall accept the report or
supplemental report on behalf of their re-
spective Houses of Congress and present the
report or supplemental report to the two
Houses immediately upon their convening.
"(d) For the purposes of this section?
"(1) 'foreign assistance' means any tangi-
ble or intangible item provided by the United
States Government under this or any other
-law to a foreign country or international
organization, including, but not limited to,
any training, service, or technical advice, any.
item of real, personal, or mixed property,
any agricultural commodity, United States
dollars, and any currencies owned by the
United States Government of any foreign
country; and
"(2) 'provided by the United States Gov-
ernment' includes, but is not limited to,
foreign assistance provided by means of gift,
loan, sale, credit, or guaranty."
INDOCHINA POSTWAF, RECONSTRUCTION
RO6GG1T7OOir7i41 Assistance Act of 1961
? is amended by adding at the end thereof the
dar year on United States actions affecting organization, during that fiscal year. following new part:
TECHNICAL AMENDMENT
SEC. 10. Section 638 of the Foreign Assist-
ance Act of 1961 is amended by striking
Out "PEACE CORPS ASSISTANCE" and inserting
In lieu thereof "EXCLUSIONS".
AFRICAN SAHEL FAMINE AND DISASTER RELIEF
AND DEVELOPMENT PROGRAM
SEC. 20, Chapter 2 of part III of the For-
eign Assistance Act of 1961 is amended by
inserting after section 639 the following new
sections:
"Sec. 639A. FAMINE AND DISASTER RELIEF
TO THE AFRICAN SAIIEL.?(a) The Congress
affirms the response of the United States
Government in providing famine and dis-
aster relief and related assistance in con-
nection with the drought in the Sahelian
nations of Africa. The President shall report
to Congress as soon as possible on solutions
to this problem of famine and further pro-
pose how any of these solutions may be car-
ried out by multilateral organizations.
"(b) Notwithstanding any prohibitions or
restrictions contained in this or any other
Act, there is authorized to be appropriated
to the President, in addition to funds other-
wise available for such purposes, $25,000,000
to remain available until expended, for use
by the President, under such terms and con-
ditions as he may determine, for emergency
and recovery needs, including drought,
famine, and disaster relief, and rehabilita-
tion and related assistance, for the drought-
stricken Sahelian nations of Africa.
"Sec. 639B. AFRICAN SAHEL DEVELOPMENT
PnocnAm.?The Congress supports the initia-
tive of the United States Government in un-
dertaking consultations and planning with
the countries concerned, with other nations
providing assistance, with the United Na-
tions, and with other concerned interna-
tional and regional organizations, toward
the development and support of a compre-
hensive long-term African Sahel development
program,"
COORDINATION; SHIPPING DIFFERENTIAL
SEC. 21. Chapter 2 of part III of the For-
eign Assistance Act of 1961 is amended by
adding at the end thereof the following new
sections:
"Sec. 640B. CoolunNicriox.?(a) The Presi-
dent shall establish a system for coordina-
tion of United States policies and programs
which affect United States interests in the
development of low-income countries. To that
end, the President shall establish a De-
velopment Coordination Committee which
shall advise him with respect to coordination
of United States policies and programs af-
fecting the development of the developing
countries, including programs of bilateral
. and multilateral development assistance.
The Committee shall include the head of the
agency primarily responsibile for administer-
ing part I, Chairman, and representatives of
the Departments of State, Treasury, Com-
merce, Agriculture, and Labor, the Executive
Office of the President, and other executive
departments and agencies, as the President
shall designate.
"(b) The President shall prescribe appro-
priate procedures to assure coordination
among?
(1) the various departments and agen-
cies of the United States Government hav-
ing representatives in diplomatic missions
abroad; and
"(2) representatives of the United States
Government in each country, under tho
direction of the Chief of the United States
Diplomatic Mission.
The President shall keep the Congress ad-
vised of his actions under this subsection.
"(c) Programs authorized by this Act shall
be. undertaken with the foreign policy guid-
ance of the Seeretlry of State. agclepal6twale dollay uliie of such assist-
" (d) The Presid-VOPEOMeidnEftrtfieieaSe.nEU Gilt 51M' apPy75130013.80
gross during the first quaiter of each calen-
the development of the low-income coun-
tries and on the impact of those undertak-
ings upon the national income, employment,
wages, and working conditions in the United
States.
"Sec. 610C. SHIPPING DIFFERENTIAL.?For
the purpose of facilitating implementation of
section 901(b) of the Merchant Marine Act,
1936 (46 U.S.C. 1241(b) ), funds made avail-
able for the purposes of chapter 1 of part I or
for purposes of part V may be used to make.
grants to recipients to pay all or any portion
of such differential as is determined by the
Secretary of Commerce to exist between
United States and foreign-flag vessel charter
or freight rates. Grants made under this sec-
tion shall. be paid with United States-owned
foreign currencies wherever feasible."
DEFINITIONS
SEC. 22. Section 644 of the Foreign Assist-
ance Act of 1961 is amended as follows:
(1) Subsection (g) is amended to read as
follows:
"(g) 'Excess defense articles' means the
quantity of defense articles owned by the
United-States Government, and not procured
in anticipation of military assistance or sales
requirements, or pursuant to a military as-
sistance or sales order, which is in excess of
the Approved Force Acquisition Objective and
Approved Force Retention Stock of all De-
partment of Defense Components at the time
such articles are dropped from inventory by
the supplying agency for delivery to coun-
tries or international organizations under
this Act."
(2) Subsection (i) is repealed.
(3) Subsection (m) is amended to read as
follows:
'(m) 'Value' means?
"(1) with respect to an excess defense ar-
ticle, the actual value of the article plus the
gross cost incurred by the ? United States
Government in repairing, rehabilitating, or
modifying the article, except that for pur-
poses of section 632(d) such actual value
shall not be taken into account;
"(2) with respect to a nonexcess defense
article delivered from inventory to foreign
countries or international organizations un-
der this Act, the acquisition cost to the
United States Government, adjusted as ap-
propriate for condition and market value;
"(3) with respect to a nonexcess defense
article delivered from new procurement to
foreign countries or international organiza-
tions under this Act, the contract or produc-
tion costs of such article; and
"(4) with respect to a defense service, the
cost to the United States Government of
such service."
ANNUAL FOREIGN ASSISTANCE REPORT
SEC. 23. Section 657 of the Foreign Assist-
ance Act of 1961 is amended to read as fol-
lows:
"Sec. 657. ANNUAL FOREIGN ASSISTANCE RE-
PORT.?(a) In order that the Congress and
the American people may be better and more
currently informed regarding the volume
and cost of assistance extended by the
United States Government to foreign coun-
tries and international organizations, and in
order that the Congress and the American
people may be better informed regarding the
sale of arms to foreign countries and inter-
national organizations by private industry
of the United States, not later than Decem-
ber 31 of each year the President shall trans-
mit to the Congress an annual report, for
the fiscal year ending prior to the fiscal year
in which the report is transmitted,
showing?
"(1) the aggregate dollar Value of all for-
eign assistance provided by the United States
Government by any means to all foreign
countries and international organizations,
? StatesGovernment to each such country and
? II10169'
Approved For Release 2001/08/30 : CIA-RDP75600380R000600170017-4
"PART V a
"Sac. 801. GENERAL AUTHORITY.?The Presi- practicable."
dent is authorized to furnish, on such terms (2) Section 3 is amended?
and conditions as he may determine, assist- (A) by striking out "and" at the end o
(Ince for relief and reconstruction of South Paragraph (2) of subsection (a) and insert
Vietnam, Cambodia, and Laos, including ing before "unless" the following: "and no
especially humanitarian assistance to refu- to use or permit the use of such article for
gees, civilian war casualties, and other per- purposes other than those for which fur-
sons disadvantaged by hostilities or condi- nished";
tions related to those -hostilities in South (B) by redesignating paragraph (3) of sub-
Vietnam, Cambodia, and Laos. No assistance section (a) as paragraph (4) and inserting
shall be furnished under this section to after paragraph (2) the following new pars-
South Vietnam unless the President receives graph:
assurances satisfactory to him that no assist- "(3) the country or international orga-
ance furnished under this part, and no local nization shall have agreed that it will main-
currencies generated as a result of assistance tabs the security of such article and will
furnished under this part, will be used for provide substantially the same degree of se-
support of police, or prison construction and curl-by protection afforded to such article by
administration, within South Vietnam. the United States Government; and";
"Sac. 802. AUTHORIZATION.?There are au- (C) by inserting the following immediately
thorized to be appropriated to the President before the last sentence of subsection (a) :
to carry out the purposes of this chapter, in "In considering a request for approval of
addition to funds otherWise available for any transfer of any weapon, weapons system,
such purposes, for the fiscal year 1974 not munitions, aircraft, military boat, military
to exceed $504,000,000, which amount is au- vessel, or other implement of war to au-
thorized to remain available until expended other country, the President shall not give
"Sac. 803, ASSISTANCE TO SOUTH VIETNAM- his consent under paragraph (2) to the
transfer unless the United States itself would
ESE Ciiii.nnax.?(a) It is the sense of the
Congress that inadequate provision has been "
transfer the defense article under considera-
tion to that country, and prior to the date
made (1) for the establishment, expansion,
he intends to give his consent ?to the trans-
and improvement of day care centers, or-
fer, the President notifies the Speaker of the
phanages, hostels, school feeding programs,
House of Representatives and the Committee
health and welfare programs, and training
on Foreign Relations of the Senate in writing
related to these programs which are designed
for the bene of each such intended consent, the justifica-
disadvantaged by hostilities ifit of South Vietnamese children, tion for giving such consent, the defense
in Vietnam or article for which he intends to give his con-
conditions related to those hostilities, and
(2) for the adoption by United States citi- sent to be so transferred, and the foreign
country to which that defense article is to
be transferred. In addition, the President
shall not give his consent under paragraph
(2) to the transfer of any significant defense
articles on the United States Munitions List
unless the foreign country requesting con-
sent to transfer agrees to demilitarize such
defense articles prior to transfer, or the pro-
posed recipient foreign country provides a
commitment in writing to the United States
Government that it will not transfer such
defense articles, if not demilitarized, to any
other foreign country or person without first
obtaining the consent of the President.";
and
(D) by adding at the 'end thereof the fol-
lowing new subsections:
? "(c) Except as otherwise provided in sub-
section (d), any foreign country which here-
after uses defense articles or defense services
furnished such country under this Act, in
substantial violation of any provision of this
Act or any agreement entered into under this
Act, shall be immediately ineligible for fur-
ther cash sales, credits, or guarantees.
"(d) No sophisticated weapons, including
sophisticated jet aircraft or spare parts and
associated ground equipment for such air-
craft, shall be furnished under this or any
other Act to any foreign country on or after
the date that the President determines that
such country has violated any agreement it
has made in accordance with paragraph (2)
of subsection (a) of this section or section
505(a) of the Foreign Assistance Act of 1901
or any other provision of law requiring sim-
ilar agreements. Such country shall remain
ineligible in. accordance with this subsection
until such time as the President determines
that such violation has ceased, that the coun-
try concerned has given assurances satisfac-
tory to the President that such violation will
not reoccur, and that, if such violation in-
volved the transfer of sophisticated weapons
without the consent of the President, such
weapons have been returned to the country
concerned."
(3) Section 22 is amended to read as fol-
lows:
,all reduce its sales, cAgibrzwedifor,Reie,asec e.p
ibigyffisirdwoenrep:0
'tics of such articles aEd- defense services tion, the President may, without requirement
CONGRESSIONAL RECORD ? HOUSE November 27, 1973
s soon as, and to the maximum extent
, for charge to any appropriation or contract
authorization otherwise provided, enter into
contracts for the procurement of defense
f articles or defense services for sale for United
- States dollars to any foreign country or inter-
t national organization if such country or in-
ternational organization provides the United
States Government with a dependable under-
taking (1) to pay the full amount of such
contract which will assure the United States
Govermnent against any loss on the contract,
and (2) to make funds available in such
amounts and at such times as may be re-
quired to meet- the payments required by the
contract, and any damages and costs that
May accrue from the cancellation of such
contract, in advance of the time such pay-
ments, damages, or costs are due.
, "(b) The President may, when he deter-
mines it to be in the national interest, ac-
cept a dependable undertaking of a foreign
country or international organization with
respect to any such sale, to make full pay-
ment within 120 days after delivery of the
defense articles or the rendering, of the de-
fense services. Appropriations available to
the Department of Defense may be used to
meet the payments required by the contracts
for the procurement of defense articles and
defense services and shall be reimbursed by
the amounts subsequently received from the
country or international organization to
whom articles or services are sold."
(4) In section 24(c)?
(A) strike out "pursuant to section 31" and
insert in lied thereof "to carry out this Act";
and
(B) insert "principal amount of" immedi-
ately before the words "contractual liability"
wherever they appear.
(5) In section 31(a), strike out "$10,000,-
000 for the fiscal year 1972" and insert in
lieu thereof "$325,000,000 for fiscal year
1974".
(6) In section 31(b), strike out "(exclud-
ing credits covered by guaranties issued pur-
suant to section 24 (b) , (and the face amount
of guaranties issued pursuant to sections 24
(a) and (b) shall not exceed $550,000,000
for the fiscal year 1972, of which amount -
not less than $300,000,000 shall be available
to Israel only" and insert in lieu thereof
"and of the principal amount of loans guar-
anteed pursuant to section 24(a) shall not
exceed $730,000,000 for the fiscal year 1974,
of which amount not less than $300,000,000
shall be available to Israel only".
(7). In section 33 (a)?
(A) strike out "cash sales pursuant to sec-
tions 21 and .22,";
(B) strike out "(excluding credits covered
by guaranties issued pursuant to section 24
(b) ), of the face amount of contracts of
guaranty issued pursuant to sections 24(a)
and (b)" and insert in lieu thereof "of the -
principal amount of loans guaranteed pur-
suant to section 24(a)"; and
(0) strike out "$100,000,000" and insert in
lieu thereof "$150,000,000".
(8) In section 33(b)?
(A) strike out "cash sales pursuant to
sections 21 and 22,"; and
(B) strike out "(excluding credits covered
by guaranties issued pursuant to section 24
(b) ), of the face amount of contracts of
guaranty issued pursuant to sections 24(a)
and (b)" and insert in lieu thereof "of the
principal amount of loans guaranteed pur-
suant to section 24(a) ".
(9) Section 33(c) is repealed.
(10) In section 36, strike out subsections
(a) and (b).
(11) In section 37(b), insert after "in-
debtedness" the following: "under section
24(b) (excluding such portion of the sales
proceeds as may be required at the time of
disposition to be obligated as a W reserve for M% sat7.91117b;4, whichuara Ruinsa
ies issuedre
made available for-such obligations)",
zens of South Vietnamese children who are
orphaned or abandoned, or whose parents or
sole surviving parent, as the case may be, has
irrevocably relinquished all parental rights,
particularly children fathered by United
' States citizens.
"(b) The President is, therefore, author-
ized to provide assistance, on terms and con-
ditions he considers appropriate, for the
purposes described in clauses (1) and (2) of
subsection (a) of this section. Of the funds
appropriated pursuant to section 802 for fis-
cal year 1974, $5,000,000, or its equivalent in
local currency, shall be available until ex-
pended solely to carry out this section. Not
more than 10 per centum of the funds made
available to carry out this section may be ex-
pended for the purposes referred to in clause
(2) of subsection (a). Assistance prbvided
under this section Shall be famished, to the
maximum extent practicable, under the
auspices of and by international agencies or
private voluntary agencies.
"Sac. 804. CENTER FOR PLASTIC AND RECON,
STRUCTIVE SURGERY na SAIGON?Of the funds
appropriated pursuant to section 802 for
the fiscal year 1974, not less than $712,000
shall be available solely for furnishing as-
sistance to the Center for Plastic and Recon-
structive Surgery in Saigon.
"Sac. 805. Aurnoarry.?All references to
part r, whether heretofore or hereafter en-
acted. shall be deemed to be references also
to this part unless otherwise specifically pro-
vided. The authorities available to adinin-
ister part I of this Act shall be available to
administer programs authorized in this part."
FOREIGN* MILITARY SALES ACT AMENDMENTS
SEC. 25, The Foreign Military Sales Act is
amended as follows:
(1) Section 1 is amended by adding at the
end thereof the following new paragraph:
"In. order to reduce the role of the United
States Government in the furnishing of de-
fense articles and defense 'services to foreign
countries and international- organizations,
and return such transactions to commercial
channels, the United States Government
No ye)n ber 27,Apppgved For 10..mrditat9p1gweL: WIW5B9_93SPI000600170017-4
(12) Add at the end thereof the following
new section:
"SEc. 47. DErrNmoNs.?For purposes of
this Act, the term?
"(1) 'excess defense article' has the mean-
ing provided by section 614(g) of the For- ,
eign Assistance Act of 1961; and
"(2) 'value' means, in the case.of an excess
defense article, not less than the greater of?
"( A) the gross cost incurred by the United
States Government in repairing, rehabilitat-
ing, or modifying such article, plus the scrap
value; or
"(B) the market value, if ascertainable."
AMENDMENTS TO FOREIGN MILITARY SALES ACT
AMENDMENTS OF 1971
SEC. 26. The Act entitled "An Act to amend
the Foreign Military Sales Act, and for other
purposes", approved January 12, 1971 (81
Stat. 2053), is amended as follows:
(1) Section 8(a) is amended by insert-
ing immediately before clause (1) the fol-
lowing: "(less amounts to be transferred un-
der section 632(d) of the Foreign Assistance
Act of 1961)".
(2) Section 8(b) is amended?
(A) by striking out "The provisions" and
inserting in lieu thereof "In the ease of ex-
cess defense articles which are generated
abroad, the provisions"; and
(B) by striking out "$185,000,000" and in-
serting in lieu thereof "$150,000,000".
(3) Section 8(c) is amended to read as
follows:
'(c) For purposes of this section, the
term 'value' has the same meaning as given
it in section 644 (in) of the Foreign Assistance
Act of 1961."
(4) Section 9 is repealed.
PUBLIC DISCLOSURE OF CERTAIN MUNITIONS
CONTROL LICENSES
Sac. 27. Section 414 of the Mutual Se-
curity Act of 1954 is amended by adding at
the end thereof the following new subsec-
tion:
"(e) Licenses issued for the export of ar-
ticles on the United States Munitions List
in excess of $100,000 shall be reported prompt-
ly to the Committee on Foreign Relations of
the Senate and the Committee on Foreign
Affairs of the House of Representatives, which
report shall contain?.
"(1) the items to be exported under the
license;
"(2) the quantity of each such item to be
furnished;
"(3) the name and address of the consignee
and of the ultimate user of each such item;
and
"(4) an injunction whenever appropriate,
concerning the necessity to protect the con-
fidentiality of the information provided."
ASIAN DEVELOPMENT BANK
SEC. 28. Section 17 of the Asian Develop-
ment Bank Act is amended by striking out
"$00,000,000 for fiscal year 1972 and $40,000,-
000 for fiscal year 1973" and inserting in lieu
thereof "$100,000,000".
ACCESS TO CERTAIN MILITARY BASES ABROAD
SEC. 29. None of the funds authorized to
be appropriated by this Act may be used to
provide any kind of assistance to any foreign
country in which a military base is located
If?
(1) such base was constructed or is being
maintained or operated with funds furnished
by the United States; and
(2) personnel of the United States carry
out military operations from such base;
unless and until the President has deter-
mined that the government of such country
has, consistent with security, authorized
access, on a regular basis, to bona fide news
media correspondents Of the United States
to such military base.
TERMINATION OF INDOCHINA WAR
SEC. 30. No funds
priated under this g-WI:MOO
4 II
a:6],
expended to finance military or paramilitary 1973, by the Pathet Lao and the Royal Lao-
operations by the United States in or over tian Government, be adhered to in spirit
Vietnam, Laos, or Cambodia. and in deed; and
LIMITATION ON USE OF FUNDS (2) the faithful compliance with the spirit
SEC. 31. No funds authorized or appro_ of the Laotian Agreement and Protocol on
printed under any provision of law shall be the question of individuals missing in action
w
made available for the purpose of financing ill encourage all parties in Indochina to
directly or indirectly any military or para-
cooperate in providing complete information
military combat operations by foreign forces on all nationals of any nation who may be
in Laos, Cambodia, North Vietnam, South
captured or missing at any place in lndo-
Vietnam, OT Thailand unless (1) such opera-
china.
tions are conducted by the forces of that
government receiving such funds within the
borders of that country, or (2) specifically
authorized by law enacted after the date of
enactment of this Act.
POLITICAL PRISONERS
SEC., 32. It is the sense of Congress that the
President should deny any economic or mili-
tary assistance to the government of any
foreign country which practices the intern-
ment or imprisonment of that country's
citizens for political purposes.
ALBERT SCHWEITZER HOSPITAL
SEC. 33. There is authorized to be appro-
priated to the President for fiscal year 1974,
$1,000,000 to make grants, on such terms
and conditions as he may specify, to the Al-
bert Schweitzer Hospital in Gabon.
PRISONERS OF WAR AND INDIVIDUALS MISSING
IN ACTION
SEC. 34. (a) The Congress declares that?
(1) the families of those one thousand
three hundred individuals missing in action
during the Indochina conflict have suffered
extraordinary torment in ascertaining the
full and complete information about their
loved ones who are formally classified as
missing in action;
(2) United States involvement in the In-
dochina conflict has come to a negotiated end
with the signing of the Vietnam Agreement
in Paris on January 27, 1973, and section 307
of the Second Supplemental Appropriations
Act, 1973, requires that "None of the funds
herein appropriated under this Act may be
expended to support directly or indirectly
combat activities in or over Cambodia, Laos,
North Vietnam, and South Vietnam or off
the shores of Cambodia, Laos, North Vietnam
and South Vietnam by United States forces,
and after August 15, 1973, no other funds
heretofore appropriated under any other Act
may be expended for such purpose.";
(3) the question of the return of prisoners
of war and accounting for individuals missing
in action and dead in Laos is covered by ar-
ticle 18 of the Protocol signed by represent-
atives of the Lao Patriotic Front (Pathet Lao)
and the Royal Laotian Government in Vien-
tiane on September 14, 1973 (which imple-
ments article 5 of the Agreement signed by
the Pathet Lao and that government in
Vientiane on February 21, 1973, requiring
the release of all prisoners "regardless of
nationality" captured and held in Laos), and
paragraph C of such article 18 provides that,
within "15 to 30 days" from the date of the
signing of the Protocol, each side is to report
the number of those prisoners and individ-
uals still held, with an indication of their
nationality and status, together with a list
of names and any who died in captivity; and
(4) few of the United States men lost in
Laos during the military engagements in
Indochina have been returned, and with
knowledge about many of these men not yet
being fully disclosed, and the North Viet- .
RIGHTS IN CH/LE
SEC. 35. It is the sense of the Congress
that (1) the President shonld request the
Government of Chile to protect the human
rights of all individuals, Chilean and for-
eign, as provided in the Universal Declara-
tion of Human Rights, the Convention and
Protocol Relating the Status of Refugees,
and other relevant international legal in-
struments guaranteeing the granting of
asylum, safe conduct, and the humane treat-
ment or release of prisoners; (2) the Presi-
dent should support international humani-
tarian initiatives by the United Nations High
Commissioner for Refugees and the Inter-
national Committee of the Red Cross to in-
sure the protection and safe conduct and
resettlement of political refugees, the hu-
mane treatment of political prisoners, and
the full inspection of detention facilities
under international auspices; (3) the Presi-
dent should support and facilitate efforts
by voluntary agencies to meet emergency re-
?lief needs; and (4) the President should re-
quest of the Inter-American Commission
on Human Rights to undertake an immedi-
ate inquiry into recent events occurring in
Chile.
REVISION OF SOCIAL PROGRESS TRUST FUND
AGREEMENT
SEC. 36 (a) The President or his delegate
shall seek, as soon as possible, a revision of
the Social Progress Trust Fund Agreement
(dated June 19, 1961) between the United
States and the Inter-American Development
Bank. Such revision should provide for the?
(1) periodic transfer of unencumbered
capital resources of such trust fund, and of
any future repayments or other accruals
otherwise payable to such trust fund, to
the Inter-American Foundation, to be ad-
ministered by the Foundation for purposes
of part IV of the Foreign Assistance Act of
1969 (22 U.S.C. 2901 and following);
(2) utilization of such unencumbered
capital resources, future repayments, and
other accruals by the Inter-American De-
velopment Bank for purposes of sections 1
and 2 of the Latin American Development
Act (22 U.S.C. 1942 and 1943) in such a way
that the resources received in the currencies
of the more developed member countries are
utilized to the extent possible for the benefit
of the lesser developed member countries; or
(3) both the transfer described in para-
graph (1) and the utilization described in
paragraph (2).
(b) Any transfer or utilization under this
section shall be in such proportions as may
be agreed to between the United States and
the Inter-American Development Bank.
(c) Any transfer under subsection (a) (1)
shall be in the amounts, and in available
currencies, determined in consultation with
the Inter-American Foundation, to be re-
quired for its program purposes.
(d) The revision of the Social Progress
nam cease-fire provisions calling for inspec- Trust Fund Agreement pursuant to this sec-
tion of crash and grave sites and for other tion shall provide that the President or his
forms of cooperation have not been fully delegate shall specify, from time to time,
complied with, after consultation with the Inter-American
(b) It is, therefore, the sense of the Con- Development Bank, the particular currencies
gress that? to be used in making the transfer or utiliza-
(1) the provisions for the release of pris- tion described in this section.
oners and an accounting of individuals (e) Not later than January 1, 1074, the
IDIeRVIATIrttetionlinSion eptell eire1t,3 action taken pluMarlto thciosnsgereetssiono.n biS
Approved For Release 2001/08/30 : CIA-RDP75600380R000600170017-4
V162 CONGRESSIONAL RECORD - HOUSE November 27, :1973
PROHIBIT/ON ON ASSISTANCE TO NORTH VIETNAM
SEC. 37. Notwithstanding any other provi-
sion of law, no funds authorized by this Act
shall be expended to aid or assist in the re-
construction of the Democratic Republic of
Vietn,,m (North Vietnam), unless by an Act
of Congress assistance to North Vietnam is
Specifically authorized.
REPORT CONCERNING CERTAIN USE OF MILITARY
ASSISTANCE IN AFRICA
SEC, 38. The President of the United States
shall, as soon as practicable following the
da le of the enactment of this Act, make a
determination and report to Congress with
respect to the use, if any, by any non-African
country in support of its military activities
in its African territories of- -
(1) assistance furnished under the For-
eign Assistance Act of 1961 after the date of
the enactment of this Act;
(2) defense articles or services furnished
after such date under the Foreign Military
Sales Act; or
(3) agricultural commodities furnished
after such date under the Agricultural Trade
Development and Assistance Act of 1954.
WORLD FOOD SHORTAGES
Sc. 39. (a) It is the sense of the Congress
that the United States should participate
fully in efforts to alleviate current and fu-
ture food shortages which threaten the
world. To this end, the President shall-
(1) encourage, support, and expedite stud-
ies relating to the long-range implications
of the world food situation (including stud-
ies of national and world production, distri-
bution, and utilization of agricultural com-
modities and other foodstuffs) and support,
the organizing of a world food conference
under United Nations auspices in 1971;
(2) request the member nations of the
General Agreement on Tariffs and Trade to ,
explore the means for assuring equitable ac-
cess by all nations to national Markets and
mineral and agricultural resources:
(8) consult and cooperate with appropri-
ate international agencies, such as the Food
and Agriculture Organization of the United
Nations, in determining the need for, the
feasibility of, and cost on an equitably-
shared basis of, establishing an international
system of strategic food reserves; and
(4) report his findings and recommenda-
tions to the Congress on the implementation
of this section no later than December 31,
1974.
(b) It is further the sense of the Con-
gress that-
(1) in making assessments which would ?
affect or relate to the level of dordestic pro-
duction, the Executive Branch should in-
clude in the estimates of overall utilization
the expected demands for humanitarian food
assistance through such programs as are
carried out under the Agricultrual Trade
Development and Assistance Act of 1954
(Public Law 480); and
(2) legislation providing increased flexi-
bility for responding to emergency and hu-
manitarian requirements for food assistance
should be considered as promptly as possi-
ble to the end that the last sentence of sec-
tion 401 of the Agricultural Trade De-
velopment and Assistance Act of 1954
(Public Law 680), may be amended by strik-
ing the period and inserting in lieu there-
of a comma and the following: "unless the
Secretary determines that some part of the
exportable supply should be used to carry
out the national interest and humanitarian
Objectives of this Act."
USE OF LOCAL CURRENCIES
SEC. 40. Effective July I, 1974, no amount
of any foreign currency (including principal
and interest from loan repayments which
accrues in connection with any sale for
foreign currency under any provision of law
may be used under any agreement entered
into after the date of the enactment of this
Act, or any revision or extension entered into
after such date of any prior or subsequent
agreement, to provide any assistance to any
foreign country to procure equipment, mate-
rials, facilities, or services for the common
defense, including internal security, unless
such agreement is specifically authorized by
legislation enacted after such date.
And the House agree to the same.
That the Senate recede from its disagree-
ment to the amendment of the House to the
title of the Senate bill and agree to the
same.
THOMAS E. MORGAN
CLEMENT J. ZABLOCKI,
DANTE B. PASCELL,
W. S. MAILL/ARD,
PETER II. B. FRELINGHUYSEN,
WM. S. BROOMFIELD,
Managers on the Part of the House.
H. H. HUMPHREY,
GEORGE D. AIKEN,
CLIFFORD P. CASE,
Managers on the Part of the Senate.
JO/NT EXPLANATORY STATEMENT OF THE
COMMITTEE O' CONFERENCE
The managers on the part of the House
and the Senate at the conference on the dis-
agreeing votes of the two Houses on the
amendments of the House to the bill (S.
1413) to authorize the furnishing of defense
articles and services to foreign countries and
international organization, submit the fol-
lowing joint statement to the House and the
Senate in explanation of the effect of the
[In millions of dollars]
action agreed upon by the managers and
recommended in the accompanying confer-
ence report:
The House struck out all of the Senate bfll
after the enacting clause and inserted a sub-
stitute amendment. The House also amended
the title of the bill.
The committee of conference recommends
a substitute for both the Senate bill and
the House amendment to the text of the
Senate bill. The committee of conference
also recommends that the Senate recede from
its disagreement to the amendment of the
House to the title of the bill.
Except for clarifying, clerical, and neces-
sary conforming changes, the differences be-
tween the two Houses and the adjustments
made In the committee of conference are
noted below:
The Senate passed two foreign aid author-
ization bills.
S. 1443 authorized $770,000,000 for Grant
military assistance, military training, sup-
porting assistance other than for Indochina,
and foreign military credit sales for fiscal
year 1974.
S. 2335 authorized economic assistance of
$1,218,222,000, plus $6,500,000 in foreign cur-
rencies, for fiscal year 1974 and $312,722,000
for fiscal year 1975.
In each of the Senate bills the House struck
out all after the enacting clause and inserted
a substitute amendment.
The substance of the House amendments
to each bill was identical and contained au-
thorizations for economic assistance in the
amount of IA,610,868,000 for fiscal year 1974
and $821,068,000 for fiscal year 1975, plus
$7 million in foreign currencies for each of
the fiscal years 1971 and 1975.
Each House amendment also provided an
authorization of $1,155,000,000 for grant
military assistance, military training, sup-
porting assistance other than for Indochina,
and foreign military credit sales for fiscal
year 1974 only.
Neither of the Senate bills nor the House
amendment contained authorizations for
fiscal year 1976.
The committee of conference agreed to a
single bill (S. 1443) containing authoriza-
tions for economic and military assistance
for fiscal year 1974 of $2,392,243,000, which
represents a reduction of $373,634,000 in the
House figure, an increase of $404,012,000 in
the Senate figure, and a reduction of $395,-
266,000 below the amount requested by the
Executive and authorizations for econornia
assistance for fiscal 1975.
The amounts recommended by the com-
mittee of conference compared to the
amounts requested by the executive and
recommended by the House and Senate fol-
low:
Executive
request
House%
Conference
Senate 2 agreement
EC011011lie ;:issistance:
Indochina postwar reconstruction for South Vietnam, Laos, and Cambodia
International organizations
Indus Basin grants
Old development loan/grant categories:
I sacs (inClucling Alliance for Progress)
Grants (including Alliance for Progress)
Population
New development assistance categories: D
Food and nutrition
632.0
124. 8
15. 0
351. 4
251.9
(116.0)
Population planning and health
Education anti human resources
Sri clod development problems
Selected couch ins and organizations
Miscellaneous categories:
American schools and hospitals abroad
International narcotics control program
Contingency fund
Partners of the Alliance
ivIminisirative expenses (AID) 53.1'
-;,?ah refugees
10. 0
42. 5
30.0
632.0
127. 8
15. 0
376. 0
127. 822
14. 0
504. 000
127. 800
14. 500
(a) (4)
300. o
150. 0
90.0
60. 0
50. 0
20. 0
50. 0
30. 0
.068
282. 0
141. 0
94. 0
47. 0
28. 0
a 19. 0
40. 0
23.5
24.0
2:0 - -
Approved For Release 2001/08/30 : CIA-RDP75600380R000600170017-4
(9
291. 000
145. ono
go. ono
93. ono
39. 000
019. 000
42. 500
30. 000
. 934
45. 000
2. 000
Approved For Release 2001/08/30 : CIA-RDP75600380R000600170017-4
November 27, 1973
CONGRESSIONAL RECORD ?HOUSE
il 10163'
Executive
request
HOUSE'
Senate I
Conference
agreementt
Attic:in famine volief
30.
7 25.000
Albert Schweitzer Hospital_
1.0
I. MO
Total economic assistance
1, 510.6
1,410. 803
1,218. 222
1, 429.734
Military assistance:
Grant military assistance
652.0
550.0
420.0
li 512. 500
Security supporting assistance (outside Indochina)
000.0
125.0
125.0
125.0D
Military credit sales
525.0
450.0
21(1.0
10 325.0
Military trainin
0)
30. 0
25.0
0)
Total military assistance
1,277.0
1,155.0
770.0
902.5
Total economic and military assistance
2,787.0
2,765. 068
1,928.222
2,392. 234
Economic aid authorizations are for fiscal year 1975 also except for African famine relief,
Indochina assistance, and international organizations (open ended authorization for fiscal year
1975).
The sonic amounts are authorized for fiscal year 1975 for all economic aid programs with
the exception of: (I) the international narcotics control program for which $30,50Q000 is authorized
tor fiscal year 1975, and (2) American schools and hospitals abroad, the Albert Schweitzer Hospital,
and Innechina postwar reconstruction, for which funds are authorized wily for fiscal year 1974.
The amounts for military assistance are for fiscal year 1974 only.
3 The sante amounts are authorized for fiscal year 1975 for all economic aid programs with
Ire exception of the Albert Schweitzer Hospital, Indochina postwar reconstruction assistance,
and African famine relief. For fiscal year 1975, the amount authorized for international organize-
tions is $150,000,000. The ainounts authorized for military assistance are for fiscal year 1974
only.
I A separate appropriation of $116,000,000 was requested by the executive branch. The Senate
earmarked $125,000,000 out of econornic assistance funds for population programs in fiscal year
CHANGE OF TITLE OF ACT AND NAME OF AGENCY
The House amendment changed the name
of the Foreign Assistance Act to the Mutual
Development and Cooperation Act and of the
Agency for International Development to the
Mutual Development and Cooperation
Agency.
The Senate bill did not contain a compara-
ble provision,
The House receded.
POLICY?DEVELOPAIENT ASSISTANCE
AUTHORIZATION
The committee of conference reconciled
four differences between the Senate bill and
the House amendment that dealt with sec-
tion 102 of the Foreign Assistance Act relat-
ing to statement of policy.
Development of employment-intensive
technologies
The Senate bill included a provision that
the President should place appropriate em-
phasis on a requirement that the "United
States should concentrate in particular on
the development of employment-intensive
technologies suitable to the less developed
con n tries."
The House amendment did not contain a
compnrable provision.
The Senate receded.
Multilateral approaches to development ?
Th e Sensate bill included new language that
urged a shift to multilateral approaches to
development and required a report from the
Secretary of State on consultations, negotia-
tions, end recommendations regarding such
a shift.
The House amendment included in its
statement of policy a declaration that U.S.
development assistance should continue to
be available through bilateral channels until
it is clear that multilateral channels exist
which can do the job with no loss of develop-
ment momentum.
The Hottre wad Senate receded.
Rote of U.S. private investment
The ITonse amendment contained a state-
ment that emphasized the role of U.S. private
investment to the maximum extent practica-
ble in economic and social development pro-
grams, specifying that arrangements should
be continually sought to provide stability
and protection for such investment.
The Senate bill did not contain a com-
parable provision.
The Sensate receded with an amendment
inch deleted the requirement to continu-
lly seek arrangements for the protection
nf such investment. Approved For R
1974 and $150,000,010 in fiscal year 1975. The !louse earmarked $125,000,000 for each of fiscal
years 1974 and 1975. The conferees approved 0125,000,000 for fiscal year 1974 and $130,000,000
for fiscal year 1975.
Not more than 50 percent of the amounts appropriated for the categories may be used for
grants under the Senate bill. In addition, repayments on outstanding foreign assistance loans
would be available for new loans in fiscal year 1974 under the flou,se bill.
t In addition, excess foreign currencies are authorized ($6,500,000 in the Senate bill; $7,000,000
in the House bill). The bill authorizes $6,500,000 in excess foreign currencies for each of the
fiscal years 1974 and 1975.
7 To remain available until expended.
B $27,500,000 of this approved for military training. The Executive requested an open end
authorization for this purpose. The Executive appropriations request was 633,000,000.
9$50,000,000 earmarked for Israel.
10A ceiling of $730,000,000 established, of which $300,000,000 earmarked for Israel.
Coordination of U.S. development-related
activities
The Senate bill provided for the coordi-
nation of all United States development-
'related activities by the adminLetering
agency under the policy guidance of the
Secretary of State, and required the head
of the agency to advise the President of ac-
tions affecting development and to inform
the Congress about the progress of the less
developed countries.
The House amendment simply specified
the Mutual Development and Cooperation
Agency as the agency responsible for the
coordination, without spelling out any spe-
cific requirement to advise the President
or inform the Congress.
The Senate receded, with a technical
amendment to substitute "the agency pri-
marily responsible for administering this
part" for thename of the agency.
DEVELOPMENT ASSISTANCE-.--CATEGORIES
Food and nutrition
The Senate bill added a new section 103
to the Foreign Assistance Act to provide
development assistance for food and nutri-
tion. It authorized an appropriation of $282
million for each of the fiscal years 1974
and 1975 for this purpose.
The House amendment contained a similar
provision that- authorized an appropriation
of $300 million for each of the fiscal years
1974 and 1975.
The committee of conference agreed to an
authorization for each of the fiscal years
1974 and 1975 in the amount of $291 million.
Population planning and health
The Senate bill added a new section 101 to
the Foreign Assistance Act that authorized
an appropriation of $141 million for each of
the fiscal years 1971 and 1975 for population
planning and health assistance.
The House amendment authorized an ap-
propriation of $150 million for each of the
fiscal years 1971 and 1975 for this purpose.
The committee of conference agreed to an
authorization of $115 million for each of
the fiscal years 1974 and 1975 for population
planning and health.
Education and human resources development
The Senate bill added a new section 105
to the Foreign Assistance Act that authorized
an appropriation of $94 million for each of
the fiscal years 1971 and 1975 for education
and human resources development.
The House amendment authorized an ap-
propriation of $90 million for each of the
fiscal years 1974 and 1975 for these purposes.
eltvatt*n2001/08130 : CIA-RDP75B0
Selected development problems
The Senate bill added a new section 106 to
the Foreign Assistance Act that authorized
an appiopriation of $17 million for each of
the fiscal years 1974 and 1975 for selected de-
velopment problems.
The House amendment authorized ass ap-
propriation of $60 million for each of the
fiscal years 1074 and 1975 for this purpose.
The committee of conference agreed to an
authorization of $53 million for each of the
fiscal years 1974 and 1975.
Selected countries and organizations
The Senate bill added a new section 107
to the Foreign Assistance Act that rin thorized
an appropriation of $28 million for each of
the fiscal years 1974 and 1975 for develop-
ment assistance to selected countries and
organizations.
The House amendment authorized ass ap-
propriation of $50 million for each of the
fiscal years for this purpose.
The committee of conference agreed to all
authorization of $39 million for each of hire
fiscal years 1974 and 1975.
TRANSFER OF FUNDS
The Senate bill authorized a limited trans-
fer of funds from one sector to another
under new sections 103-107 of chap ter I but
prohibited the use of sections 610(a) and
611(5) of tho Foreign Assistanco Act with
respect to transactions involving sector
funds.
The House amendment provided :dmilar
authority for the transfer of funds without
the restrictive language.
The House receded with an amendment
which permitted tine transfer of funds under
the authority of sections 610(a) and 614(a)
into but not out of the funds for develop-
ment assistance under chapter I.
COST SHARING AND FUNDING LIMITS
The Senate bill required the host country
to partcipato in the financing of bilateral
projects to the extent of at leaet 25 percent
of the entire costs, in any fiscal year, of the
program, project, or activity. It also provided
that disbursements for a bilal oral capital
project under all five functional categories
of development assistance would be limited
to 36 consecutive months and that cnforts
should be made before, during, and after the
period of disbursement to find local and ex-
ternal sources of funding for such project.
The House amendment did not contain a
comparable provision.
The House receded with ass amendment
dirictil "in any fiscal year" and snaking the
00:06 1 u4assistanco only,
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CONGRESSIONAL RECORD ? HOU
Any extension of the expenditure period be- support of research to develop methods of
yond 36 months is subject to further justi- abortion.
fication satisfactory to the Congress. It was
also agreed that the 36-month disbursement comparable provision.
period will not begin until project disburse- The House receded with an amendment
manta start in-country, excluding prelimi- prohibiting the use of funds to pay for the
nary disbursements for planning and prepa- performance of abortions or to motivate or
ration costs outside the recipient country. coerce any person to practice abortion.
FUNDING OP FOLLOW-ON PROJECTS This provision is not intended to interfere
with or curtail support for preventive ma-
ternal and child health and family plan-
ning services and related research which are
provided on a voluntary basis and in ac-
cordance with the prevailing local customs
and medical practice and it is not intended
to apply to funds obligated prior to the date
of enactment of this bill.
DEVELOPMENT LOAN FUND, FISCAL PROVISIONS
The Houso amendment did not contain a
The Senate bill provided that no amounts
available under sections 103 through 107 of
the act could be obligated for any follow-on
project which links that project with any
other project without further congressional
authorization.
The House did not contain a comparable
provision.
The Senate receded.
USE OF RECEIPTS
The Senate bill limited the use to not more
than one-third of prior years loan reflows
for any one of the functional categories of
development assistance in any fiscal year.
The House amendment did not contain a
comparable provision.
The Senate receded,
LIMITATION ON GRANTS
The Senate bill limited grants under the
functional sectors to not more than 50 per-
cent of the funds appropriated each fiscal
year for sections 103-107.
The House amendment did not contain a
comliarable provision.
? The Senate receded.
DEVELOPMENT AND USE OF COOPERATIVES
? The Senate bill repealed section 203 of the
Foreign Assistance Act which makes dollar
receipts from previous loans available for
new loans for development assistance.
The House amendment extended the au-
thority of section 203 to fiscal years 1974 and
1975 and expanded the authority to include
dollar receipts from loans made prior to 1954.
The Senate receded with amendments that
delayed the repeal of section 203 until July 1,
, and provided that not more than 50
percent of the dollar receipts scheduled for
repayment would be available. The commit-
tee of conference intended, based on AID's
congressional presentation, that, under this
limitation, approximately $161.5 million and
$184 million in new loan authority would
become available in fiscal years 1974 and 1975,
The Senate bill provided that not less than respectively.
$20 million made available during fiscal COUNTRY LIMITATION
years 1971 and 1975 should be available only The House amendment added the word
for assistance in the development of cooper- "directly" to the forty-country limitation on
atives in less developed countries, technical assistance and development grants
The House amendment did not 'contain a contained in the act to make clear that the
comparable provision, limitation applies only to bilateral assistance
The House receded, furnished directly by the United States Gov-
P1505-IID/TING POLICE TRAINING eminent to governments of less developed
The Senate bill prohibited police trainin Countries.
SE November 27, 1973
to long term commitments to institutions
as the Secretary of State deems desirable.
HOUSING GUARANTIES
The Senate bill increased the worldwide
ceiling for housing guaranties which may be
outstanding at any one time from $205 mil-
lion to $349.9 million, and extended the pro-
gram to June 30, 1975.
The House amendment increased the
worldwide ceiling to $305 million, an increase
of $100 million, and extended the program
to June 30, 1976.
The committee of conference accepted the
House ceiling of $305 million and the Senate
date of June 30, 1975,
OVERSEAS PRIVATE INVESTMENT CORPORATION
The House amendment extended the issu-
ing authorities of the Overseas Private In-
vestment Corporation for investment and
guaranty activities from June 30, 1974 to
June 30, 1975. It also renewed the agriculture
credit and self-help community development
pilot project authority from June 30, 1973 to
June 30, 1975.
The Senate bill did not contain any com-
parable provision.
The Senate receded with an amendment
extending the authorities to December 31,
1974.
PARTNERS OF THE ALLIANCE
The Senate bill authorized an appropria-
tion of $900,000 for grants to the National
Association of the partners of the Alliance
for each of the fiscal years 1974 and 1975.
The House amendment authorized an Hp-
.propriation of $968,000 for each of the fiscal
years 1971 and 1975 for such grants.
The committee of conference agreed to an
authorization of an appropriation of $934,000
for each of the fiscal years .1971 and 1975.
PROGRAMS RELATING TO POPULATION PROGRAMS
The Senate bill provided that not less than
125 million in fiscal year 1974 and $150
illion in fiscal year 1975 of part I funds
sail be available for programs relating to
opulation growth.
The House amendment earmarked $125
SiIn
and related programs for any foreign. coun- The Senate bill did not contain a compa- p
try under any law except those relating to rable provision.
Mini crimes and administered by the Law
The Senate receded.
cc
iilion of part I funds in each of the fiscal
ars 1974 and 1975 for this purpose.
nforcement Assistance Administration, or AMERICAN SCHOOLS AND HOSPITALS ABROAD ye
with respect to any authority of the Drug The Senate bill authorized an appropria-
Enforcement Administration, or the Federal tion of $19 million and $6.5 million in excess ea
Bureau of Investigation, currencies for fiscal year 1974 for assistance a
The House bill did not contain a compa- to' American schools and hospitals abroad'. gr
rable provision. It did not authorize assistance for fiscal year I
The House receded with an amendment 1975 but requested a study and report in-
applying the prohibition to programs in a eluding recommendations by the Secretary
foreign country and to funds made avail- of State with respect to future assistance se
able under the Foreign Assistance Act. The for schools and hospitals outside the United tiv
prohibition is not applicable to any contract States.
gr
entered into prior to the date of enactment The House amendment authorized $20 mil- affi
of this act that provides personnel to con- lion and $7 million in excess local curren- at
duct, or assist in conducting, any such pro- cies for each of the fiscal years 1974 and Pr
grain but it prohibits extension of those 1975. The House amendment also contained th
contracts. Further, it is the intent of Con- a limitation on assistance in any fiscal year by
,?18:.; that present programs being conducted to no more than four institutions in the
Yrs7n-cy f n
or Internationop- same country, of which not more than one ral
ment in foreign countries should not be shall be a university and not more than one
transferred to sonic other agency of the Gov- a hospital,
ermnent eader to avoid this prohibition The committee of conference agreed to INT
The new language is meant to phase out the authorization of an appropriation of $19 T
such programs financed hereunder and the million and $6.5 million in excess local cur- tis
objective should not be circumvented by rendes for each of the fiscal years 1974 and -
using other funds for this purpose. 1975. yea
INTEGRATION OF WOMEN INTO NATIONAL The House receded on its limitation but
ECONOMIES the
The committee of conference agreed t
rmark $125 million in fiscal year 197
ncl $130 million in fiscal year 1975 for pro
ams relating to population growth.
NDEPENDENT REVIEW GROUPS FOR INTERNA-
TIONAL ASSISTANCE INSTITUTIONS
The House amendment added a new sub
ction which required the President to ac
ely seek the establishment of independen
oups within the United Nations and it
liated organizations to review and evalu
e their programs. It further required th
esident to transmit to the Congress and
e Comptroller General reports prepared
such units.
The Senate bill did not contain a compa-
Ole provision.
The Senate receded.
ERNATIONAL ORGANIZATIONS AND PROGRAMS
AUTHORIZATION
he Senate bill authorized an appropria-
n of $127,822,000 for each of the fiscal
rs 1974 and 1975.
he House amendment authorized an a 1-
4
pro
o conference agreed that 197
The Senate bill provided that development the agency which administers this program ' for
assistance programs should be administered should make every effort to administer'
with particular attention to the integration program so as to achieve a more equitable
of women into the national economies of geographic distribution of assistance and to ,,
foreign countries. limit " support for operations and
The House amendment did not contain maintenance activities. The committee of
a comparable provision. conference also agreed that the report and T,
The House receded, recommendation by the Secretary of State Von
should be made by June 30, 1974. 1974
LIMITING USE OF FUNDS FOR ABORTIONS
The Senate bill prohibApproVedfFria?
aReijap, ttiplAppleSpeoriee
RiaAlllaRDPincluZ513' reci??318T
in any manner, directly or indirectly, to pay ;ommendations for equitable geographical prop
for abortions, abortifacient drugs or devices, distribution of U.S. assistance and such two
the promotion Of the practice of abortion, or possible solutions to the problems reiRtm," ,r.
priation of $127,800,000 for fiscal year
4 and "such sums as may be necessary"
fiscal year 1975.
The committee of conference agreed to
$127,800,000 for fiscal year 1974 and $150
million for fiscal year 1975.
INDUS BASIN AUTHORIZATION
he Senate bill authorized an appropria-
of $11 million for each of the fiscal years
and 1975 for fi,anisio4 the Indus Basin
OR0006001 00 -
he House amendment authorized an ap-
riation of $15 million for each of the
fiscal. years.
November 27,
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1973 CONGRESSIONAL RECORD ?HOUSE L 101u1)
authorization of an appropriation of $14,-
500,000 for each of the fiscal years 1974. and
1075.
'UNICEF CONTRIBUTION
The House amendment earmarked $18 mil-
lion of international organizations funds
for each of fiscal years 1974 and 1975 for con-
tributions to the United Nations Children's
Fund (UNICEF).
'The Senate bill did not contain a compa-
rable provision.
The Senate receded.
ARAB REFUGEE TRAINING
The House amendment authorized an ap-
propriation of $2 million for each of the fiscal
years 1974 and 1975 for contributions to the .
United Nations Relief and Works Agency
for technical and vocational training of
Arab refugees.
The Senate bill did not contain a compa-
rable provision.
The Senate receded.
CONTINGENCY FUND AND DISASTER RELIEF
AUTHORITY
The Senate bill authorized an appropria-
tion of $23.5 million for each of the fiscal
years 1974 and. 19'75 for assistance primarily
for disaster relief purposes.
The House amendment authorized an ap-
propriation of $30 million for each of the
fiscal years 1974 and 1975 for contingencies
and authorized such amounts as may be
required from time to time to provide ex-
traordinary disaster relief.
The committee of conference accepted the
House authorization of an appropriation of
$30 million for each of the fiscal years 1974
end 1975, and accepted the purpose language
of the Senate bill.
COUNTRY NARCOTICS CONTROL PERFORMANCE
The Senate bill amended the Act to re-
quire the President to make an affirmative
finding, to be transmitted to the Congress,
that a country has taken adequate steps to
control the production, distribution, trans-
portation, and manufacture of opium and its
derivatives. The Senate bill further required
the President to suspend all aid, except nar-
cotics control programs, to any country if
the Congress passed a concurrent resolution
rejecting the findings.
The House amendment did not contain a
comparable provision.
The Senate receded.
REPORTS TO CONGRESS ON NARCOTICS CONTROL
PROGRAM
"rho House amendment added a new re-
quirement for quarterly reports to Congress
on the programing and obligation of foreign
assistance funds for narcotics control pro-
grams, and semiannual reports -on the ac-
tivities and operations carried out under this
program.
The Senate bill did not contain a com-
parable provision.
The Senate receded,
INTERNATIONAL NARCOTICS CONTROL
AUTHORIZATION
The Senate bill authorized an appropria-
tion of VO- million for fiscal year 1974 and
$30,500,000 for fiscal year 1975 for the inter-
national narcotics control prOgram.
The Rouse amendment authorized an ap-
propriation of $50 million for each of fiscal
years 1074 and 1975.
The committee of conference agreed to the
authorization of an appropriation of $42,-
500,000 for each of the fiscal years 1971 and
1975 for this purpose.
COOPERATIVE ECONOMIC EXPANSION
The House amendment added anew chap-
ter 10 authorizing the use of $2 million of
part I funds for each of the fiscal years 1974
and 1975 for cooperative economic expan-
sion.
The Senate bill did AppaptVrad3,F=OriR
parable provision.
The House receded.
STATEMENT OF POLICY?MILITARY ASSISTANCE
The Senate bill repealed sections 501 and
502 of the Foreign Assistance Act, relating
to policy and purposes for which military
assistance can be furnished.
The House amendment did not contain
comparable provisions.
The Senate receded.
EXCESS DEFENSE ARTICLES
The Senate bill provided that excess de-
fense articles should be furnished whenever
possible in preference to the procurement
of new items.
The House. amendment did not contain
a comparable provision.
The House receded.
MILITARY ASSISTANCE?GENERAL AUTHORITY
The Senate bill repealed section 503 relat-
ing to general authority and provided general
authority to furnish grant military assist-
ance to any foreign country otherwise eli-
gible to receive assistance. The Senate lan-
guage eliminated the requirement that the
aid-receiving country be "friendly," as well
as the President's authority to furnish mili-
tary assistance to international organiza-
tions, and to loan defense articles and de-
fense services. It also struck out the author-
ity in section 503(b) to make financial con-
tributions to multilateral programs to ac-
quire or construct facilities for collective de-
fense and in section 503(c) to provide finan-
cial assistance incidental to the U.S. Gov-
ernment's participation in regional or col-
lective defense organizations.
The House amendment did not contain a
comparable provision.
The Senate receded with an amendment
which authorized the loan of defense articles
and defense services but specified conditions
under which loans could be made and pro-
vided that "out of pocket" expenses inci-
dental to making the loan and the cost of
"depreciation" shall be charged to the appro-
priation for military assistance for each fiscal
year or part thereof that the item is on loan.
It is the intention of the committee of
conference that the provisions of this section
shall not apply when short term loans are
made in connection with disaster relief ef-
forts in response to earthquakes, floods, or
other natural disasters.
The House receded with respect to the
repeal of subsections (b) and (c) of sec-
tion 503.
MILITARY ASSISTANCE AUTHORIZATION
The Senate bill repealed section 504(a) of
the Foreign Assistance Act relating to au-
thorization for military assistance, and pro-
vided separate authorizations for eight coun-
tries totaling $270 million. It also authorized
up to $25 million of the funds to be used
to furnish excess defense articles to any for-
eign country or international organization
not specifically identified. The Senate bill
further provided a separate authorization for
such sums as may be necessary, as well as
a special drawdown authority subject to fu-
ture reimbursement, for furnishing defense
articles to South Vietnam and Laos, and
a,,thorized $150 million to be appropriated
for military assistance to Cambodia.
The House amendment provided an au-
thorization of an appropriation of $550 mil-
lion for fiscal year 1971.
The Senate receded from its provisions and
the committee of conference agreed to an
authorization of $512.5 million, including
military training, for fiscal year 1974. The
number of countries eligible to receive mili-
tary grant assistance, other than training in
the United States, was reduced from forty
to thirty-one. ,
SOPHISTICATED WEAPONS
The Senate bill repealed the proviso clause
and subsection (b) of section 504 of the The Senate bill repealed section 509 of the
etease25001408180)7011AARDP7759002180R90060047001714.ch requires the
provision which prohibited the furnishing chief o the appropriate military assistance
by grant, credit sale, or guaranty of sophisti- advisory group representing the United
cated weapons systems to underdeveloped
countries unless the President determines
that furnishing such weapons systems is im-
portant to United States national security.
The House amendment did not contain
any comparable provisions.
The committee of conference agreed to re-
tain existing law.
CONDITIONS OF ELIGIBILITY
The Senate .bill repealed section 505 of the
Foreign Assistance Act relating to conditions
of eligibility but provided similar conditions
of eligibility with one new requirement. The
new eligibility condition required that funds
received by a foreign country in disposing
of U.S.-furnished weapons should be paid to
the United States Government for use in
meeting its local currency expenses, includ-
ing international educational and cultural
exchange activities.
The House amendment did not contain a
comparable provision. ?
The Senate receded on the repeal of sec-
tion 505 and the House accepted the addi-
tional condition of eligibility beginning
July 1, 1974.
TRANSFER OF DEFENSE " ARTICLES TO THIRD
COUNTRIES
The Senate bill contained a provision re-
lating to conditions of eligibility that would
require Presidential approval for the trans-
fer of U.S.-furnished defense articles from
one country to another under specified con-
ditions. .This provision was similar to the
provisions of section 9, Foreign Military Sales
Act Amendments, 1971, which the Senate bill
repealed.
The House amendment did not contain
a comparable provision.
The committee of conference agreed to
include a similar provision in both section
505 of the Foreign Assistance Act relating to
grant military assistance and section 3 of the
Foreign Military Sales Act, relating to the
sale of defense articles.
SPECIAL DRAWDOWN AUTHORITY
The House amendment contained a provi-
sion which renewed the President's special
authority to draw down defense articles from
the stocks of the Department of Defense and
defense services up to $3p0 million in fiscal
year 1974 when he determines it to be vital
to the security of the United States, subject
to subsequent reimbursement from military
assistance program funds.
The Senate bill did not contain a compar-
able provision.
The Senate receded with an amendment
authorizing a draw down ceiling of $250 mil-
lion. The drawdown authority may be used
when it is in the security interests of the
United States. This authority is not to be
used to supplement MAP funds routinely to
meet foreseen, non-emergency requirements
for military assistance.
It is the intent -of the committee of con-
ference that up to $200 million of the emer-
gency military assistance requirements for
Cambodia be furnished. pursuant to the au-
thority contained in this section.
RESTRICTIONS ON MILITARY AID TO LATIN
AMERICA AND AFRICA
The Senate bill repealed sections 507 and
508 of the Foreign Assistance Act relating
to restrictions on military assistance for
Latin America and Africa,
. The House amendment did not contain
a comparable provision.
The House receded. A ceiling on the
amount of military assistance and sales that
can be made or furnished to Latin America
and Africa in any fiscal year is provided in
section 33 of the Foreign Military Sales Act,
as amended.
CERTIFICATION or RECIPIENTS CAPABILITY
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CONGRESSIONAL RECORD ? HOUSE November 27, 1923
States to certify in writing that the recipient
country has the capability to effectively
utilize defense articles furnished by the
United States.
The House amendment did not contain
a comparable provision.
The House receded.
RESTRICTIONS ON TRAINING FOREIGN MILITARY
STUDENTS
The Senate bill repealed section 510 of
the Foreign Assistance Act but placed an
identical limit on the number of foreign
military students to be trained in the United
States in any fiscal year.
The House amendment repealed section
510.
The committee of conference agreed to
retain section 510 of the law.,
MILITARY ASSISTANCE ADVISORY GROUPS AND
MISSIONS
The Senate bill repealed section 512 of
the Foreign Assistance Act -which required
certain reductions in military assistance ad-
visory gronps and military groups by Sep-
tember 30, 1972.
The House amendment did not contain a
comparable provision.
The House receded.
MILITARY ASSISTANCE AUTHORMATION FOR LAOS
Tho Senate bill contained a provision
which required the transfer of authorizations
for military assistance and sales programs for
Laos and South Vietnam from the Depart-
ment of Defense to the Foreign Assistance
and Military Sales Acts effective June 30,
1973.
The House amendment provided for the
transfer of such military assistance and sales
authorizations effective June 30, 1974.
The committee of conference agreed to
transfer military assistance and sales author=
izations for Laos effective June 30, 1974, with
the understanding that funds obligated for
assistance to Laos prior to the date specified
In section 513 which are in the "pipeline" at
that time may be provided regardless of when
the defense articles are actually delivered or
the defense services actually rendered.
SPECIAL FOREIGN CURRENCY ACCOUNTS
The Senate bill repealed section 514 of the
Foreign Assistance Act but included a similar
provision which required the establishment
of special foreign currency accounts in which
any government receiving grant military de-
fense articles, including excess defense arti-
cles, and military training would deposit local
currencies to meet official costs of the United
States Government in the recipient country.
The House amendment repealed section 514
of the Foreign Assistance Act.
The Senate receded.
It is the intent of the committee of con-
ference that billings for foreign. currency
payments under section 514 shall end with
deliveries for the quarter ending December
31, 1973.
LIQUIDATION ACCOUNT FOR PRE-FISCAL YEAR
1969 FOREIGN MILITARY SALES CREDITS
The Senate bill repealed section 524 of the
Foreign Assistance Act which established a
special liquidation account in the Treasury
for pre-fiscal year 1969 sales credits and
guaranties.
The House amendment did not contain a
comparable provision.
The Senate receded.
INTERNATIONAL MILITARY EDUCATION AND
TRAINING
'File Senate bill separated grant military
training from the material assistance pro-
gram and authorized the appropriation of
$25 million to the Secretary of State for
military training in fiscal year 1974.
The House amendment also provided under
The committee of conference agreed to re-
tain the grant military training program as
an integral part of the military assistance
program and added $27,500,000 to the au-
thorization for grant military assistance in
section 504(a) for fiscal year 1974. The House
receded on numerous technical conforming
amendments contained in the House amend-
ment which would have been necessary sepa-
rately to authorize funds for military edu-
cation and training.
CAMBODIA CEILING WAIVER
The Senate bill included a provision as a
technical amendment to perfect the bill in
such a way that the Cambodia.ceiling of sec-,
tion 65-5(c) would not apply to assistance
furnished under the act.
The House amendment did not contain a
comparable provision.
The House receded. .
SECURITY SUPPORTING ASSISTANCE
The Senate bill repealed the provisions
of existing law relating to security support-
ing assistance, but included similar author-
ity to furnish security supporting assist-
ance and authorized an appropriation of
$125 million for fiscal year 1974, of which
$65 million was to be available solely for
Jordan and $50 million solely for Israel.
The House amendment authorized $125
million for security supporting assistance
of which not less than $50 million was to
be available solely for Israel.
The committee of conference agreed to
retain the general authority language of
existing law for security supporting assist-
ance and to repeal section 533 relating to
United States Refund Claims.
The Senate receded and accepted the
House authorization and earmarking provi-
sion.
SMALL BUSINESS
The Senate bill contained a provision
rewriting section 602 of the Foreign Assist-
ance Act, which required that insofar as
practicable the President should assist
American small business to participate equi-
tably in the furnishing of commodities, de-
fense articles, and services (including de-
fense services) financed with funds made
available for grant military assistance.
The House amendment did not contain
a comparable provision.
The committee of conference agreed to re-
tain existing law.
SHIPPING ON U.S. VESSELS
The Senate bill contained a provision
similar to section 602 of the Foreign As-
sistance Act, which provided that ocean
transportation between foreign countries
of commodities and defense articles pur-
chased with foreign. currencies Made avail-
able or derived from appropriations un-
der this act should not be governed by the
provisions of section 901(b) of the Merchant
Marine Act of 1936, or any other law relating
to the ocean transportation of commodities
on U.S.-flag vessels.
The House amendment did not contain a
comparable provision.
The committee of conference agreed to
retain existing law.
PROCUREMENT
The Senate bill contained a provision simi-
lar to section 604 of the Foreign-Assistance
Act, relating to procurement of commodities
outside the United States.
The House amendment did not contain a
comparable provision.
The committee of conference agreed to
retain existing law.
TERMINATION or ASSISTANCE
The Senate bill provided that military as-
sistance and sales could, if not sooner ter-
separate authority $30 mAtrOVedIfect-RIRIA0 ActIVAInt'AfittMr75 BD 0
tional military education a training pro- .
gram for fiscal year 1974. The House amendment retained existing
law which permits the termination by con-
current resolution of assistance furnished
under the Foreign Assistance Act and allows
funds to remain available for 12 months from
the termination date for the necessary ex-
penses of winding up programs.
The Senate receded with an amendment
reducing the windup period from 12 to 8
months.
EXPROPRIATION POLICY
The Senate bill modified section 620(e) (1)
of the Foreign Assistance Act?the Hicken-
looper amendment?by permitting the Presi-
dent to waive its sanctions when he deter-
mined that such a waiver was "impor taut
to the national interests of the United
States." Any waiver was to be reported
promptly to the Congress.
The House amendment deleted section 620
(e) (1) and added a new section requiring
termination of assistance to any country
which, after the enactment of this section,
expropriated property that was at least 50
percent beneficially owned by U.S. citizens,
unless one of three conditions was met; (1)
prompt, adequate, and effective conapensa-
tion had been paid; (2) tile dispute was
submitted to arbitration under the rules of
the Convention for the Settlement of Invest-
ment Disputes; or (3) good faith negotia-
tions- were ill progress aimed at providing
prompt, adequate, and effective compensa-
tion. The amendment did not permit the
President to waive its application ill the
national interest.
The House receded.
ASSISTANCE TO COUNTRIES WHICH TRADE WITH
NORTH VIETNAM
The House amendment contained a pro-
vision which permitted the President to
waive the prohibition against assistance to
countries trading with North Vietnam or
permit vessels or .aircraft under their reg-
istry to transport goods to North Vietnam.
Each waiver required a Presidential finding
that it was in the national interest. Each
finding had to be reported to the Congress,
together with assurances that North Viet-
nam was cooperating fully in providing for
a full accounting of any -remaining prison-
ers of war and all missing in action.
The Senate bill did not contain a com-
parable provision.
The House receded.
AID TO GREECE
The Senate bill contained a provision
that would terminate all military assistance,
sales, credit sales, or guaranties to Greece
pending completion of a Presidential study
and report which concluded that the Gov-
ernment of Greece is. in full compliance with
its political and military obligations under
the North Atlantic Treaty.
The House amendment did not contain a
comparable provision.
The Senate receded.
COORDINATION WITH FOREIGN POLICY
The Senate bill contained a provision sim-
ilar to section 622(h) of the Foreign As-
sistance Act emphasizing the responsibility
of the Chief of each diplomatic mission to
submit recommendations concerning secu-
rity assistance from personnel in his mission.
The House amendment did not contain a
comparable provision.
The committee of conference agreed to re-
tain existing law.
STATUTORY FUNCTIONS OF TICS SECRETARY OF
STATE
The Senate bill changed the responsibility
of the Secretary of State for the "general
direction" of military assistance activities,
as currently set forth in section 622(c) of the
Foreign Assistance Act, to responsibility for
"direction" of those activities.
?111
?
OVNIAMtViyiwt not contain a
The Senate receded.
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'November 27, 1973 CONGRESSIONAL RECORD ? HOUSE
ACCESS TO AND FAILURE TO PROVIDE
INFORMATION
The Senate bill included a provision to as-
sure the General Accounting Office or any
committee of Congress access to informa-
tion in the possession of any agency carry-
ing out provisions of law with funds made
available under the Foreign Assistance Act.
After the expiration of any 35-day period fol-
lowing a written request by the General
Accounting Office or a congressional com-
mittee :for any document, paper, communica-
tion, audit, review, finding, recommendation,
report, or other material in the custody of
s Lich agency, none of the funds available to
such ngency could be obligated unless and
until the request had been honored. Com-
munications between the President and any
officer or employee of the agencies concerned
were expressly excluded from the opera-
tions of this section. ?
The Senate bill also amended section 634
of the Foreign Assistance Act and provided
for a similar exclusion of Presidential com-
munications.
The House amendment did not
comparable provision.
The Senate receded.
MILITARY ASSISTANCE INFORMATION'
The Senate bill contained a provision re-
quiring that there be made public that por-
tion of any record showing the name of any
recipient of military assistance and the
amount of such assistance intended to be
provided or the amount that has been pro-
vided by the United States.
The House amendment did net
comparable provision.
The Senate receded.
The committee of conference agreed that
the provisions of section 634(b) of the For-
eign Assistance Act, requiring the President
to make public all information concerning
operations under the Act, should be con-
strued as calling for full public disclosure
of military assistance information, except
during periods of critical international de-
velopments when classifying such data is
In the national security interest. In any case,
such information should be fully available
to appropriate congressional committees.
REPORTS AND INFORMATION
The House amendment repealed section
634 (f ) of the Foreign Assistance Act and re-
placed it with two new subsections. New
subsection (1) required the submission of
semiannual reports on the status of each
outstanding loan, contract of guaranty or
insurance, credit sale of defense articles, de-
fense services, or agricultural commodities,
and each Export-Import Bank loan, guaranty,
or insurance. Only transactions in excess of
$1 million would be reported individually.
New subsection (g) required annual reports.
showing the debt-servicing problems of for-
eign countries, debt relief granted by the
United States, and the consequences thereof.
The Senate bill repealed section 634(f) of
the law.
The Senate receded.
The committee of conference understands
that a delay of 90 to 180 days may occur in
providing the first semiannual report under
the new subsection (f); however, all subse-
quent reports should be forwarded as
promptly as possible but no later than 60
days after the report is due.
ADMINISTRATIVE EXPENSES
The Senate bill authorized an appropria-
tion of $24 million for administrative ex-
penses for each of the fiscal years 1974 and
1975.
The House amendment authorized an ap-
propriation of $53,100,000 for each of the
fiscal years 1974 and 1975 for such expenses.
The committee of conference agreed to an
? nithorization of an appromi
ion for each of the fisch-rWOn 'an"
p ? liektiF83MmWMANI ?
pAr Ima efAVEfPilt. le 0 UnelaWrisgpaTrreitti3veiMy
miserloudpe:
1975, with the understanding that program The House receded. . or organizations.
contain a
contain a
funds available under part I and part V may
be used to defray additional administrative
expenses up to the level provided in the
House amendment.
PEACE CORPS ASSISTANCE
The Senate bill amended section 638 of
the Foreign Assistance Act by changing its
title from "Peace Corps Assistance" to "Ex-
clusions".
The House amendment did not contain a
comparable provision.
The House receded to this technical
amendment.
FAMINE AND DISASTER RELIEF
The House amendment contained a pro-
vision which would have amended section
639 of the Foreign Assistance Act to permit
the furnishing of disaster relief assistance
notwithstanding any provision of law.
The Senate bill did not contain a compara-
ble provision.
The Houso receded.
FAMINE AND DISASTER RELIEF TO THE AFRICAN
SAHEL
The House amendment contained an au-
thorization of an appropriation of $30 mil-
lion for relief and rehabilitation of African
Sahel and gave congressional endorsement
for long-term planning for the preservation
and development of the Sahel region in co-
operation with the United Nations and other
International and regional organizations.
The Senate bill contained a provision
which asked the President to consult with
international organizations on how to solve
the West African famine problem, but did
not authorize any funds.
The Senate receded with an amendment to
authorize an appropriation of $25 million for
these purposes.
DEVELOPMENT COORDINATION COMMITTEE
The Senate bill amended the Foreign As-
sistance Act by adding a new section provid-
ing for coordination of United .States de-
velopment policies and programs. It pro-
vided for the establishment of a Develop-
ment Coordination Committee, named mem-
bers thereof by their positions in the govern-
ment, required the Chief of the U.S. mission
in a country to be the development coordi-
nator, and required reports to the Congress
and the President by both the Committee
and the country coordinator.
The House amendment contained a com-
parable provision which named as members
of the Committee representatives of desig-
nated agencies and required the President to
develop appropriate procedures for coordi-
nating overseas activities and to report to
Congress.
The Senate receded with an amendment
that the President prescribe appropriate pro-
cedures to assure coordination among both
(1) departments and agencies of the U.S.
having representatives in diplomatic missions
abroad, and (2) U.S. representatives in each
country under the direction of the Chief
of the U.S. diplomatic mission.
SHIPPING DIFFERENTIAL
The House amendment provided for the
payment of the differential in shipping costs
between U.S.- and foreign-flag vessels.
The Senate bill did not contain a com-
parable provision.
The Senate receded.
DEFINITION OF EXCESS DEFENSE ARTICLES
The Senato bill redefined defense articles
in such a way as to restrict them to those
Items which are excess to the needs of the
Department of Defense for other than mili-
tary assistance purposes, thereby transfer-
ring items in "long supply" from the cate-
gory of excess defense articles to the cate-
gory of nonexcess defense articles.
77' ert. 07
The purpose of the new definition is to re-
quire that a defense article must not he
treated as "excess" for purposes of the For-
eign Assistance Act of 1961 or the Foreign
Military Sales Act unless it has been screened
against the requirements. of ? all the mili-
tary departments and Defense agencies, thus
correcting a problem cited in a recent study
by the General Accounting Office of the use
of "excess" defense articles in the military
assistance program. The Department of De-
fense states that the current administrative
practice is consistent with the new defini-
tion.
DEFINITION OF VALUE
The Senate bill defined the "value" of ex-
cess defense articles as "actual value" but
not less than one-third of acquisition cost. It
also defined the "value" of nonexcess defense
articles and defense services to include "a
proportional share of the administrative ex-
penses incurred by the United States Gov-
ernment in supplying" such articles and
services, except that personnel pay and al-
lowances would be excluded from the com-
putation of "administrative expenses" for
this purpose as it relates to military assist-
ance (excluding grant military training).
The House amendment did not contain a
.comparable provision.
The committee of conference 'agreed that
"value" means (1) in the case of excess de-
fense articles, the actual value of the article
plus the gross cost incurred by the United
States Goveinment in repairing, rehabili-
tating, or modifying the article, except that
only such gross costs shall be taken into
consideration for purposes of reimburse-
ment to the supplying agency; (2) with re-
spect to nonexcess defense articles delivered
from inventory, the acquisition cost to the
United States Government adjusted as ap-
propriate for conditions and market value;
(3) with respect to nonexcess defense articles
delivered from new procurement, the con-
tract or production costs; and "(4) with re-
spect to a defense service, the cost to the
United States of such service.
PRESIDENTIAL FINDINGS AND DETERMINATIONS
The Senate bill repealed section 654 of the
Foreign Assistance Act, relating to Pres-
idential findings and determinations, and in-.
eluded language similar in purpose.
The House amendment did not contain a
comparable provision.
The Senate receded.
USE OF U.S. ARMED FORCES
The Senate bill rewrote section 650 of the
Foreign Assistance Act whch provides that
the furnishing of economic, military, or other
assistance under the act shall not be con-
strued as a commitment to use Armed Forces
of the United States for the defence of any
foreign country.
The House amendment did not contain a
comparable provison.
The Senate receded and existing law, con-
taining a similar provision, is retained.
ANNUAL FOREIGN ASSISTANCE REPORT
The Senate bill repealed section 657 of the
Foreign Assistance Act and included Ian-
gu-age requiring essentially the same in-
formation to he submitted annually to the
Congress, together with data on all exports
of significant defense articles on the United
States munitions list.
The House amendment did not contain a
comparable provision.
The House receded.
QUARTERLY REPORTS
The Senate bill contained a provision re-
quiring the submission of quarterly reports
on the sale or guaranty of defense articles
and services, grant of excess defense articles
defense articles and defense services, and the
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CONGRESSIONAL RECORD -- HOUSE November 27,1973
The HOME amendment did not contain a
comparable provision.
The Senate receded.
SPECIAL REPORT ON MAP AGREEMENTS
The Senate bill contained a provision call-
ing for a report from the President by Janu-
ary 31, 1974, listing all military assistance
agreements entered into prior to that date
and recommending which should be con-
tinued.
The House amendment did not contain a
comparable provision.
The Senate receded.
ANNUAL NATO REPORT
The House amendment contained a pro-
vision requiring the Secretaries of State and
Defense to report annually on or before
January 15 to the Speaker of the House and
to the Senate Committees on Appropriations,
Armed Services, and Foreign Relations on the
direct, indir'ect, and unallocated costs to the
United States of its participation in NATO
in the immediately prior fiscal year, in the
current fiscal year (estimated), and in the
budget fiscal year (budget request). ?
- The Senate bill did not contain a com-
parable provision.
The House receded.
INDOCHINA POSTWAR RECONSTRUCTION
The Senate bill amended the Foreign As-
sistance Act by adding at the end thereof a
new part V. authorizing an appropriation of
$376 million for fiscal. year 1974 for postwar
relief, rehabilitation, and reconstruction in
South Vietnam, Cambodia, and Laos, of
which not less than $10 million was to sup-
port humanitarian programs of the Indo-
china Operations Group of the International
Red Cross in South Vietnam, Cambodia, and
Laos.
The House amendment contained a com-
parable provision, authorizing an appropria-
tion of $632 million for fiscal year 1974 and
providing that no funds could be used for
police support or prison construction and ad-
ministration within South Vietnam..
The Committee of conference agreed to a
$504- million authorization for the fiscal year
1974. The House receded on its statement of
policy and the Senate receded on the ear-
marking of funds for the Indochina Opera-
tions Group and on .the prohibition on the
use of funds for police support or prison con-
struction and administration within South
Vietnam.
REDUCTION IN GOVERNMENT PARTICIPATION
The Senate bill contained a provision call-
ing for a reduction in the role of the United
States Government in the furnishing or sale
of defense articles and defense services to
foreign countries and international orga-
nizations by reducing its sales, credit sales,
and guaranty of such articles and defense
services to the maximum extent practicable.
The House amendment did not contain a
comparable provision.
The House receded.
ILLEGAL SEIZURE OF U.S. PRIVATE FISHING
VESSELS
The Senate bill repealed section 3 of the
Foreign Military Sales Act which prohibits
the sale (cash, credits or guarantees) to any
country within a year's period after such
country seizes, or takes into custody, or fines
an American fishing vessel for fishing more
than 12 miles from the country's coast, -un-
less the President waives the prohibition on
the basis that it is important to U.S. secu-
rity or that he has received reasonable as-
surances from the country that similar
seizures will not occur in the future. ?
The House amendment did not contain a
comparable provision.
The Senate receded.
..ENALTY FOR UNA:1=1104M revecff
SOPHISTICATED WEAPONS ItO.A THIRD COUN-
ticated weapons, including sophisticated jet
aircraft, to any foreign country which trans-
ferred defense articles provided by the
United States in violation of an agreement
requiring U.S. consent to such a transfer.
The House amendment contained a simi-
lar provision, but permitted restoration of
eligibility when the President determines
that the violation has ceased and he has re-
ceived satisfactory assurances that the vio-
lation will not reoccur, and provided that
in the case of unauthorized transfer of
sophisticated weapons, such weapons have
been returned to the original recipient.
The Senate receded.
CASH SALES FROM STOCK
The Senate bill repealed section 21 of the
Foreign Military Sales Act and included a
provision authorizing cash sale of defense
articles and services from the stocks a the
Department of Defense.
The House amendment did not contain
a comparable provision.
The Senate receded.
PROCUREMENT FOR CASH SALES
The Senate bill repealed section 22 of the
Foreign Military Sales Act and included lan-
guage to require purchasers of defense
articles or defense services to pay to the
United States Government, in addition to
the cost of such items, an amount equal to
the administrative costs incurred in 'pro-
curing such articles and services. The Senate
bill also eliminated the President's au-
thority to sell defense articles on a fixed price
basis and prohibited cash sales of defense
articles and services by the U.S. Government
to a developed country if such articles are
generally available from commercial sources
in the United States.
The House amendment did not contain a
comparable provision.
The House receded with an amendment
deleting the prohibition on the sale of de-
fense articles to economically developed
countries, and the requirement to pay ad-
ministrative costs.
It is the -intent of the committee of con-
ference that the current administrative
practice of charging an appropriate amount
to cover overhead expenses, when feasible,
be maintained.
CREDIT SALES
The Senate bill repealed section 23 of the
Foreign Military Sales Act and included a
similar provision authorizing credit sales of
defense articles and defense services to eco-
nomically less developed countries. Repay-
ment would be required within 10 years
after delivery.
The House amendment increased the re-
payment period from 10 to 20 years.
The committee of conference agreed to re-
tain existing law.
SALES CREDITS AT CONCESSIONAL RATES AND
REPAYABLE IN LOCAL CURRENCY
The Senate bill contained a provision
which authorized credit sales on concessional
terms to countries that received grant mili-
tary assistance in fiscal year 1973 in amounts
not exceeding the level of grant assistance
provided during that fiscal year. During fiscal
years 1974 and 1975, sales could be made
which were repayable in local currency and
without interest. In fiscal years 1976 through
1978 sales could be made at interest rates not
less than 3 percent a year to the extent the
local currencies were needed for U.S. Gov-
ernment requirements.
The House amendment did not contain -a
comparable provision.
The Senate receded.
GUARANTY AUTHORITY
The Senate bill repealed section 24 of the
States. It also permitted funds made avail-
able under the Act to be obligated for the 25
percent guaranty reserve, and amended the
Act to allow the calculation for the purposes
of the guaranty reserve, the aggregate ceil-
ing on Foreign Military Sales credits, and
the regional ceiling on military sales on the
basis of the principal amount of the contrac-
tual liability which would preclude guaran-
teed interest from counting against the coil-
in
The committee of conference agreed to the
House amendment with the exception of the
provision which would have allowed guaran-
ties to be issued to persons doing business
outside tho United States.
FOREIGN MILITARY CREDIT SALES
The Senate bill authorized an appropria-
tion of $200 million to the Secretary of State
for military sales credits for fiscal year 1974
and set an aggregate ceiling on military credit
sales at $700 million for fiscal year 1974, of
which $300 million was to be available only
for Israel.
The House amendment authorized $450
million for military sales credits for fiscal
year .1974, provided an aggregate ceiling of
$760 million for fiscal year 1974, and ear-
marked 5300 million for Israel.
The committee of conference agreed to au-
thorize the appropriation of $325 million and
established an aggregate ceiling of $730 mil-
lion for fiscal year 1971, of which $300 million
shall be available only for Israel.
PROHIBITION ON EXPORT?IMPORT
0.1515
. The Senate bill repealed section 32. of the
Foreign Military Sales Act which prohibited
the Export-Import Bank of the United States
from participating in any new extension of
credit in connection with the purchase of
defense articles or defense services to any
economically less developed country.
The House amendment did not contain a
comparable provision.
The Senate receded.
AGGREGATE LATIN AMERICA AND AFRICA
REGIONAL CEILING
The Senate bill repealed section 33 of the
Foreign Military Sales Act and included a
similar provision which established an ag-
gregate ceiling of $150 million on the total
amount of military assistance and sales that
can be made to Latin America in any fiscal
year and a corresponding ceiling of $40 mil-
lion for Africa. It also eliminated the Pres-
ident's authority to waive an amount equal
to 50 percent of such regional ceilings.
The House amendment increased the ceil-
ing for Latin America to $150 million and
excluded cash sales from counting against
the aggregate ceiling for both Latin America
and Africa.
The committee of conference agreed to re-
tain existing law with the changes proposed
in the House amendment and to eliminate
the Presidential waiver authority as pro-
vided in the Senate bill.
PRIOR CONGRESSIONAL APPROVAL OF
MILITARY SALES
The Senate bill contained a provision re-
quiring the President to submit to the Con-
gress, prior to entering into any relevant sales
or guaranty agreement, written information
on any cash sale, credit sale, or guaranty of
over $25 million to any country under the
Foreign Military Sales Act. The President
could not complete such an agreement if
either House of the Congress adopted a reso-
lution disapproving it. The same procedure
applied_ to every sale, in whatever amount,
to a country that had purchased more than
$50 million in a fiscal year.
The House amendment did not contain
a comparable provision.
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The Senate bill contained a provision to authorize the President to issue guaranties The Senate bill repealed section 30 oh the
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Approved For Release 2001/08/30 : CIA-RDP75600380R000600170017-4
Novembev 27, 1.973 CONGRESSIONAL RECORD ?HOUSE I 1
similar provision relating to reports of the
export of significant defense articles on the
U.S. munitions list.
The House amendment repealed section
36(a) of the Foreign Military Sales Act relat-
ing to the export of significant defense
articles.
The committee of conference agreed to the
repeal of subsections 36 (a) and (b) of the
net.
DEPOSITS IN THE GUARANTY RESERVE
The House amendment amended section
37(b) of the Foreign Military Sales Act to
authorize a portion of the proceeds from the
sale of notes generated by credit extended
under section 23, to be obligated as a reserve
for the guaranty of the payment of such
notes without additional charge against
current appropriations.
The Senate bill did not contain a compara-
ble provision.
The Senate receded.
GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS
PROVISIONS?FOREIGN MILITARY- SALES ACT
The Senate bill repealed chapter 4 of the
Foreign Military Sales Act, relating to gen-
eral, administrative, and miscellaneous pro-
visions.
The House amendment did not contain a
comparable provision.
The Senate receded.
REPEAL OF MUTUAL SECURITY APPROPRIATION
ACT, 1916
The Senate bill repealed section 108 of the
Mutual Security Appropriation Act, 1956, as
amended, thereby placing future military as-
sistance programs on an obligation, direct-
citation-of-funds basis.
The House amendment did not contain a
comparable provisions.
The Senate receded.
SPECIAL FOREIGN ASSISTANCE ACT OF 1971
The Senate bill repealed the Special For-
eign Assistance Act of 1971 with the excep-
tion of section 7 which prohibits the intro-
duction of United States ground combat
troops into Cambodia.
The House amendment did not contain a
comp arable provision.
The Senate receded. _
FOREIGN MILITARY SALES ACT AMENDMENT,
1971
The Senate bill repealed the Foreign Mili-
tary Sales Act Amendments, 1971 with the
exception of section 12 which repealed the
"Joint resolution to promote the mainte-
nance of international peace and security
In Southeast Asia".
The House amendment did not contain a
comp a;'ab le provision.
The Senate receded.
The committee of conference agreed to
amend section 8 with respect to excess de-
fense articles and included the provisions
of section 9 as an amendment to the For-
eign Assistance Act and the Foreign military
Sales Act.
INTERNATIONAL CONFERENCE ON CONVEN-
TIONAL ARMS
The Senate bill repealed section 5 of the
Foreign Military Sales Act Amendment, 1971
which expresses the sense of the Congress
that the President should negotiate with the
Soviet Union and other powers a limitation
on arms shipments to the Middle East; and
section 6 of the same act which expresses the
sense of the Congress that the President
initiate a thorough and comprehensive re-
view of military assistance and sales pro-
grams of the Department of Defense. In lieu
thereof, the Senate bill included a.provision
which directed the President to make a con-
certed effort to convene an international con-
ference of major arms suppliers within 18
months to negotiate an agxecment nlacinz a-37VaS no lonzerdi
-orkable ceiling on arms 'ftppriz/ed For R-e-tepsaizt
The House amendment did not contain a
comparable provision.
The Senate receded.
The committee of conference agreed that
the President should make every effort to
negotiate with the Soviet Union and other
powers an agreement which would bring
about workable controls over the transfer of
conventional arms.
EXCESS DEFENSE ARTICLES
The Senate bill repealed section 8 of the
Foreign Military Sales Act Amendments,
1971 and included a provision that excess de-
fense articles furnished under MAP author-
ity by any agency,of the United States Gov-
ernment should be considered to be an ex-
penditure made from funds appropriated
for military assistance.
The House amendment continued the ex-
emption of $185 million on the value of ex-
cess defense articles, regardless of where gen-
erated, which might be ordered under any
authority during any fiscal year before the
value of those articles is chargeable against
funds appropriated under Part II of the For-
eign Assistance Act of 1961.
The Senate receded with an amendment
reducing the exemption from $185 million to
$150 million of the value of excess defense
articles which may be furnished before being
' charged against funds appropriated under
part II of the Foreign Assistance Act, pro-
vided that such excess articles are generated
outside of the United States. The value of
any excess defense articles generated within
the United States and furnished as military
assistance shall be charged off against funds
appropriated for military grant assistance.
The committee of conference expects that
no action will be taken which would have
the effect of circumventing the purpose of
this new restriction.
PRIOR AUTHORIZATION
The Senate bill repealed section 10 of the
Foreign Military Sales Act Amendments, 1971,
and included a similar provision requiring
an authorization before appropriated funds
may be obligated or expended.
The House amendment did not contain
a comparable provision.
The Senate receded.
PUBLIC DISCLOSURE OF EXPORT OF MUNITIONS
LISTS ITEMS VALUED IN EXCESS OF $100,000
The Senate bill contained a provision
which required that the Congress be notified
of licenses issued for the export of items on
the Munitions List valued in excess of
$100,000.
The House amendment did not contain a
comparable provision.
The House receded.
TRANSFER OF MILITARY VESSELS AND BOATS
The Senate bill contained a provision
which prohibited the transfer of any vessel
or boat of the United States, to any foreign
country or international organization except
in accordance with foreign assistance, sales,
or other specific legislation.
The House amendment did not contain
a comparable provision.
The Senate receded.
LIMITATION ON ASSISTANCE TO SOUTH VIETNAM,
LAOS, AND CAMBODIA
The Senate bill contained a provision
which:
(1) limited assistance to South. Vietnam.
and Laos to that permitted by the respective
cease-fire agreements. A similar provision re-
lated to a limitation on military assistance
to Cambodia if and when a cease-fire agree-
ment is reached;
(2) authorized the President to furnish
emergency military assistance to South Viet-
nam if the President found and reported to
the Congress that the cease-fire agreement
11%
quarterly report to the Congress on the na-
ture and quantity of all types of foreign
assistance provided to South Vietnam, Laos,
and Cambodia and the number and types of
United States personnel present in those
countries, involved in providing such as-
sistance.
The House amendment did not contain a
comparable provision.
The Senate receded.
MEDIA ACCESS TO U.S.-FINANCED BASIN
The Senate bill contained a provision
which prohibited the programing of assist-
ance to any country in which a military base
is located if the base had been constructed,
maintained, or operated with United States
funds and used by United States personnel
to carry out military operations, unless the
President determines and reports in writing
to the Congress that the government of
such country has, consistent with its own
security, authorized access to those military
bases, on a regular basis, to bona fide news
media correspondents of the United States.
The House amendment did not contain a
comparable provision.
The House receded with an amendment
deleting the requirement that the President
report in writing to the Congress.
TERMINATION OF /NDOCIIINA WAR.
The Senate bill contained a provision
which prohibited the use of funds authorized
or appropriated under this or any other law
to finance military or paramilitary opera-
tions by the United States in or over Cam-
bodia, Laos, or South Vietnam.
The House amendment did not contain a
comparable provision.
The House receded.
There are similar prohibitions on the use
of funds contained in Public Law 93-50 (The
Second Supplemental Appropriations Act)
enacted July 1, 1973; Public Law 93-52 (The
Continuing Resolution Authority for fiscal
year 1973) enacted July 1, 19'73; public Law
93-126 (The Department of State Appropria-
tions Authorization) enacted October 18,
1973; and Public Law 93-165 (Military Pro-
curement Authorization Act), enacted No-
vember 16, 1973.
LIMITATION ON USE OF FUNDS
The Senate bill contained a provision pro-
hibiting the use of funds to finance directly
or indirectly "military or paramilitary opera-
tions" by third country forces in Laos, Cam-
bodia, North Vietnam, South Vietnam, or
'Thajland, unless specifically authorized by
legislation.
The House amendment did not contain a
comparable provision.
The House receded with an amendment
adding the word "combat" after "paramili-
tary" and before "operations".
POLITICAL PRISONERS
The Senate bill contained a provision ex-
pressing the sense of the Congress that the
President should deny economic and mili-
tary assistance to any country which in-
terns or imprisons that country's citizens
for political purposes.
The House amendment did not contain
a comparable provision.
The House receded.
ALBERT SCHWEITZER LIOSPITAL
The Senate bill authorized an appropria-
tion of $1 million for fiscal year 1971 for
grants to the Albert Schweitzer Hospital in
Gabon.
The House amendment did not contain a
comparable provision.
The House receded.
PRISONERS OF WAR AND INDIVIDUALS MISSING
IN ACTION
The Senate bill expressed the sense of the
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sir article 18 of
liner 14, 1973, by
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representatives of the Lao Patriotic Front
(Po thet Lao) and the Royal Laotian Gov-
ernment, relating to prisoners of war and
individuals missing in action, be adhered to
in spirit and in deed. ?
The House amendment did not, contain a
comparable provision.
The House receded.
PROHIBITIONS TO FURNISHING ASSISTANCE TO
NORTH VIETNAM
The House amendment contained a provi-
sion prohibiting assistance to the Govern-
ment of North Vietnam unless that assist-
ance is specifically authorized by legislation.
The Senate bill did not contain -a com-
parable provision.
The Senate receded.
REVISION OF SOCIAL PROGRESS TRUST FUND
AGREEMENT
The House amendment directed the Presi-
dent to seek a revision of the Social Progress
Trust Fund Agreement to provide that its
funds might he transferred to or utilized by
the Inter-American Foundation, the Inter-
American Development Bank, and the
Department of State and/or the U.S. Treas-
ury.
The Senate bill did not contain a com-
parable provision.
The Senate receded with an amendment,
striking subsection (1) (B) and (C) which
called for periodic transfer of trust funds
to the U.S. Department of State and the
U.S. Treasury.
USE OF MILITARY ASSISTANCE IN AFRICA
The Senate bill amended the Foreign As-
sistance Act by adding a new section which
prohibited the use, of any U.S. military or
economic aid or other U.S. exports to main-
tain the status of the African territories, of
Portugal and required termination of aid and
military sales and military exports requiring
a validated license if the President deter-
mined that those items were being used by
Portugal in support of its military activities
In its African territories.
The House amendment provided that as-
sistance to Portugal should be suspended
when the President makes a determination
and reports to Congress that Portugal has
used U.S. assistance in support of its military
activities in its African colonies. The resto-
ration of such assistance was made contin-
gent on appropriate corrective action by Por-
tugal.
The Senate receded with amendments (1)
making the provision applicable to "any
non-African country," (2) striking the
parenthetical reference in the House amend-
ment to sales "whether for cash or by credit,
guarantee or any other means," and (8)
striking the requirement to suspend assist-
ance.
ENTRY OF SOVIET JEWS INTO AUSTRIA
The Senate bill contained a sense of the
Senate resolution asking the President to
urge the Austrian Government to take what-
ever action is necessary to permit and facili-
tate travel of Soviet Union emigrants through
Austria.
The House amendment did not contain a
comparable provision.
The Senate receded.
GOVERNMENT OF INDIA ,LOAN SETTLMENT
The Senate bill provided that any settle-
ment of the debt owed to the United States
by India that is less than the full amount
owed must be authorized by the Congress.
The House amendment did .not contain
a comparable provision.
The Senate receded.
It is the intent of the committee of con-
ference, however, that the administration
report to the Committee on Foreign Rela-
tions of the Senate and the Committee on
Foreign Affairs of the House of Representa-
ives, as well as to the wijittla.
fr,riculture Committees, /Ito
Me bY
proposed settlement with India, with the
right to review, 30 days prior to entering
Into such settlement.
The Committee on Foreign Relations has
asked the General Accounting Office for a
detailed study of the entire situation con-
cerning U.S.-owned foreign currencies.
HUMAN RIGHTS IN CHILE
The Senate bill contained a sense of the
Congress provision that the President should
deny any military or economic assistance to
Chile until he finds that the Government of
Chile is protecting human rights of all in-
dividuals, Chilean and foreign; support cer-
tain other steps to insure the protection of
human rights; be prepared to provide asylum
and resettlement opportunities for a reason-
able number of political refugees; support
and facilitate efforts by voluntary agencies
to meet emergency relief needs; and request
the Inter-American Commission on Human
Rights to undertake an immediate inquiry
into recent events in Chile. -
The House amendment did not contain
a comparable provision.
The House receded with an amendment
striking out the language which would deny
aid and substituting the expression of Con-
gress that the President should request the
Government of Chile to protect human
rights in Chile. The committee of conference
also agreed to delete the reference to provid-
ing asylum and resettlement opportunities
for political refugees.
BOILEAU OF HUMANITARIAN AND SOC/AL SERVICES
The Senate bill expressed the sense of
Congress that there should be created a new
Bureau of Humanitarian and Social Services
in the Department of State, to be headed by
a new Assistant Secretary of State, with re-
sponsibility for continuing guidance and co-
ordination of U.S. Government efforts related
to refugee relief assistance, victims of in-
ternational disasters, migration and visa af-
fairs, the field of international human rights,
overall government liaison with the United
Nations and other appropriate international
agencies and nongovernmental organizations.
The House amendment did not contain a
comparable provision.
The Senate receded.
HUMANITARIAN ASSISTANCE IN SOUTH ASIA
The Senate bill authorized the President
to use $6 million of funds appropriated to
carry out the Foreign Assistance Act to fur-
nish humanitarian assistance to the U.N.
High Commissioner for Refugees in support
of the repatriation and exchange of minor-
ity populations between Pakistan and Bang-
ladesh.
" The House amendment did not contain a
comparable provision.
The Senate receded. Existing law (section
2(c) of the Migration and Refugee Assistance
Act of 1962 (Public Law 87-510) ) already
authorizes the President to transfer up to
$10 million of Foreign Assistance Act funds
In any fiscal year to meet unexpected urgent
refugee and migration needs.
WORLD FOOD SHORTAGES
The Senate bill contained language urg-
ing full participation by the United States
in efforts to alleviate current and future food
shortages, the establishment of a high level
commission to study and report on the world
food situation, consultation with various in-
ternational organizations involved in this
field, and proposing revision of Public Law
480 to permit greater utilization of United
States food production in meeting emer-
gency and humanitarian requirements for
food assistance.
The House amendment did not contain
a comparable provision.
The House receded with amendments ex-
pressing the sense of the Congress with re-
Ritightetal
LOCAL CURRENCIES USED FOR MILITARY
ASSISTANCE
The Senate bill amended section 104(c) of
Public Law 430, which authorizes the Pica-
Went to enter into agreements with foreign
governments to use foreign currencies gen-
erated under the Act to procure articles for
the common defense, by requiring that any
such agreement must be specifically author-
ized by statute.
The House amendment did not contain a
comparable provision.
The committee of conference agreed that
effective July 1, 1974, no amount of any
foreign currency (including principal and
interest from loan repayments) which ac-
crues in connection with any sale for for-
eign currency under any provision of law
may be used under any agreement or any
revision or extension of any prior or subse-
quent agreement, entered into after the date
of the enactment of this act, to provide any
assistance to any foreign country to pro-
cure equipment, materials, facilities, or serv-
ices for the common defense, including in-
ternal security, unless such . agreement is
specifically authorized by legislation enacted
after such date.
ASIAN DEVELOPMENT BANK
The Senate bill amended the Asian De-
velopment Bank Act (Public Law 92-245) to
carry forward authorizations from fiscal year
1972 and fiscal year 1973 totaling $100 mil-
lion.
The House amendment did not contain a
comparable provision.
The House receded.
THOMAS E. MORGAN,
CLEMENT J. ZABLOCKI,
DANTE B. FASCELL,
W. S. MAILLIARD,
PETER H. B. FRELINGHUYSE,N,
WM. S. BROOMFIELD,
Managers on the Part of the House.
H. H. HUMPHREY,
GEORGE D. AIKEN,
CLIFFORD P. CASE,
Managers on the Part of the Senate.
THE PENDING ENERGY CRISIS
Mr. McKINNEY. Mr. Speaker, on the
week before Thanksgiving the Senate
of the United States passed an emergen-
cy energy crisis bill that to me takes us
back to a very sad day in August 19G4
when the House and Senate of the United
States turned to the President of the
United States over the Bay of Tonkin in-
cident and said, "Mr. President, we ab-
dicate, you run your war." That simple
action tore this Nation apart for a great
many years following.-
I would suggest to you, Mr. Speaker,
there might be some precedent in that
since certainly Southeast Asia is foreign
policy, but it is absolutely appalling to
me that the Senate and this House could
possibly consider passing a bill in the
field of domestic policy, a matter of the
basic jurisdiction of the U.S. Congress,
which would give the President of the
United States the most dictatorial powers
ever given to a Chief Executive without
a nation being in a state of war.
Mr. Speaker, urge all of my
colleagues, and seriously, suggest this
Congress assert itself by establishing a
policy that would force us to establish
policy for the energy crisis rather than
again abdicating our role, and turning to
the President and saying, "You, Mr. Pres-
stigiVnitlit5a0agFio 6016btalffablfif2at th, e people's
I would