Director representing the United States to vote against assistance to countries violating human rights unless the aid directly benefits needy people. Additionally, it includes "providing refuge to individuals committing acts of international terrorism such as hijacking of an aircraft," in its delineation of "gross violations of internationally recognized human rights."

The agreement establishing the African Development Fund was done at Abidjan Nov. 29, 1972, and entered into force June 30, 1973. The United States participated in the negotiations on the agreement and also provided technical assistance in the drafting of the Fund's charter and governing provisions. The United States would have been eligible to be an "original participant" if its initial contribution had been made by Dec. 31, 1974. Because the 1974 deadline was not met, U.S. entry into the Fund became subject to unanimous approval of the Board of Governors. By Res. 76, dated May 2, 1976, the Board of Governors set terms and conditions for U.S. membership and authorized the United States to become a party to the Fund agreement on or before Dec. 31, 1976, by signing it and depositing its instrument of ratification, acceptance, or approval.

On November 18, 1976, the United States deposited its acceptance of the Agreement Establishing the African Development Fund, with a declaration:

(i) that in the territory of the United States of America the immunity conferred by Article 43(1) and by Article 48(i) of the Agreement Establishing the African Development Fund shall not apply in relation to a civil action arising out of an accident caused by a motor vehicle belonging to the Fund or operated on its behalf, or to a traffic offense committed by the driver of such a vehicle; and (ii) that the United States of America retains for itself and for all political subdivisions of the United States of America the right to tax salaries and emoluments paid by the African Development Fund to any citizen or national of the United States of America. The United States undertook to subscribe an amount equivalent to 13,500,000 units of account ($15 million) as its initial subscription. Dept. of State File L/T.

Economic Cooperation with Spain

Article II of the U.S.-Spain Treaty of Friendship and Cooperation, signed January 24, 1976 (TIAS 8360; 27 UST; entered into force September 21, 1976), together with Supplementary Agreement No. 2, calls for the development of closer economic ties between the United States and Spain, placing emphasis on cooperation in those fields which facilitate development. In this connection, the agreement recognizes the importance of the role played by the ExportImport Bank of the United States in stimulating the purchase of U.S. capital goods by Spanish enterprises and in assisting the progress of Spain's energy and industrial development programs. It expresses the current readiness of the Export-Import Bank to commit credits

and guarantees of approximately $450 million for Spanish companies.

The two Governments also agree to seek to avoid imposing restrictions on the flow of trade between them and to endeavor to arrive at appropriate and mutually agreeable measures to facilitate investment flow. A Joint Economic Committee under the U.S.Spanish Council established by the treaty is to monitor bilateral economic relations and recommend future economic cooperation. Supp. Agreement No. 2 entered into force Sept. 21, 1976, and remains in force contemporaneously with the treaty.

Foreign Assistance Appropriations

When President Ford signed into law H.R. 12203, the Foreign Assistance and Related Programs Appropriations Act, 1976 (P.L. 94-330; 90 Stat. 771), on June 30, 1976, he issued a statement of "serious reservations" to one provision, which would condition the availability of appropriated funds, in certain instances, upon the acquiescence of the Appropriations Committees of each House of Congress. The President stated, in part:

This requirement violates the fundamental constitutional doctrine of separation of powers. While similar provisions have been included in congressional enactments, and have been found objectionable on these grounds, this particular requirement is especially onerous in that it intrudes upon the execution of programs in nineteen different appropriation categories.

Since I view this provision as severable from what is an otherwise valid exercise of legislative authority, and because it is presented for my signature in the last week of the fiscal year, I am not withholding my approval. We shall continue to work with the Appropriations Committees, as with all Committees of the Congress, in a spirit of cooperation. We shall continue to keep the Congress fully informed on a current basis on the execution of the laws. However, we shall not concur in a delegation of the powers of appropriation to two Committees of Congress.

Weekly Compilation of Presidential Documents, Vol. 12, No. 27, July 5, 1976, p. 1104. Title I of P.L. 94-330, under the heading "Economic Assistance" includes the following provision:

None of the funds made available under this Act for "Food and nutrition, Development Assistance," "Population planning and health, Development Assistance." "Education and human resources development, Development Assistance," "Technical assistance, energy, research, reconstruction, and selected development problems, Development Assistance.""International organizations and programs," "United Nations Environment Fund," "American schools and hospitals abroad," "Indus Basin Development Fund," "International narcotics control," "African development program." "Security supporting assistance," "Operating Expenses of the Agency for International Development," "Middle East Special requirements fund," "Military assistance," "International military education and training," "Inter-American Foundation," "Peace Corps," "Migration and refugee

assistance," or "Assistance to refugees from the Soviet Union or other Communist countries in Eastern Europe," shall be available for obligation for activities, programs, projects, type of materiel assistance, countries, or other operations not justified or in excess of the amount justified to the Appropriations Committees for obligation under any of these specific headings for the current fiscal year without the approval of the Appropriations Committees of both Houses of the Congress. The Conference Report on H.R. 12203 states, with respect to the above provision, the agreement of the Senate and House conferees that any activity, program, project, type of materiel assistance or other operation specifically set forth by recipient or country and by amount to be obligated shall be deemed "justified"; and if not so set forth, it shall be deemed not "justified." The Report adds: "Constructive consent will be implied if no objection is raised within fifteen days after notification of the proposed reprogramming." See H. Rept. 94-1006, 94th Cong., 2d Sess.

Postwar Assistance to Indochina

The Foreign Assistance and Related Programs Appropriations Act, 1976 (P.L. 94-330; 90 Stat. 771), approved June 30, 1976, placed the following prohibition on use of funds for assistance to Indochina:

Sec. 108. None of the funds appropriated or made available pursuant to this Act shall be used to provide assistance to the Democratic Republic of Viet-Nam (North Viet-Nam), South VietNam, Cambodia or Laos.

The same prohibition is contained in section 108 of the Foreign Assistance and Related Programs Appropriations Act, 1977 (P.L. 94-441; 90 Stat. 1469), approved October 1, 1976.

Disaster Relief

The Agency for International Development, on October 15, 1976, announced the revision, effective November 1, 1976, of Chapter II, Part 211 (AID Regulation 11) relating to food commodities for use in disaster relief and economic development, and other assistance. The revision incorporates amendments of P.L. 480, Title II, contained in the International Development and Food Assistance Act of 1961 (P.L. 94-161; 89 Stat. 849), approved December 20, 1975. The major revisions relate to the fixing of the minimum quantity of agricultural commodities distributed under P.L. 480, Title II, at 1,300,000 tons in each fiscal year, and provision for the sale of commodities with the use of proceeds for self-help purposes.

Fed. Reg., Vol. 41, No. 211, Nov. 1, 1976, pp. 47919-47927.

Guatemala

The Guatemala Relief and Rehabilitation Act of 1976 (P.L. 94-276; 90 Stat. 397; 22 U.S.C. 2292g), was approved April 21, 1976. It amended the Foreign Assistance Act of 1961 "to provide emergency relief, rehabilitation, and humanitarian assistance to the people who have been victimized by the recent earthquakes in Guatemala."

The Agency for International Development (AID) thereafter entered into a series of agreements with Guatemala and its governmental entities: on May 14, 1976, with the Municipal Development Institute of Guatemala, to provide grant assistance up to $1,950,000 to assist in recovering and reinitiating public community services; on June 17, 1976, with the Ministry of Communications and Public Works of Guatemala, to provide grant assistance up to $2,093,992, to assist in implementing various emergency programs; and on September 20, 1976, with the Government of Guatemala, to lend up to $8,000,000 for municipal earthquake recovery. Grant assistance for the emergency programs was provided pursuant to section 491 of the Foreign Assistance Act of 1961, as amended (22 U.S.C. 2292), and in accordance with the Agreement for Technical Cooperation between the United States and Guatemala of September 1, 1954 (TIAS 3068; 5 UST 2010).

Dept. of State File L/T.

Italy

Following the earthquake of May 6, 1976, in northern Italy, Congress passed appropriations of $25,000,000 for the Italian disaster relief and rehabilitation effort (P.L. 94-303, Ch. III; 90 Stat. 602). In anticipation of Presidential signature, an AID team was dispatched to Italy on May 23, 1976, to negotiate a general operating agreement as quickly as possible and to identify specific projects for U.S. financing. The agreement for provision of assistance to earthquake victims of Italy was concluded by exchange of notes at Rome on June 9, 1976 (TIAS 8416; 27 UST).

It defined the general terms and conditions under which the United States would furnish assistance, under the authority of the Foreign Assistance Act of 1961, as amended (22 U.S.C. 2292), and related legislation. Specifically, it authorized the United States to furnish assistance to various governmental and private entities and to enter into agreements with such entities specifying the terms and conditions of assistance. The U.S. Embassy submitted to the Italian Government the names of the implementing personnel to be accredited in the normal fashion, and to receive the appropriate privileges and immunities. The agreement also accorded to the U.S. assistance effort all the special exemptions from taxation and tariffs created for the earthquake relief effort, as well as any other exemptions that might be applicable. Finally, the agreement called for consultations between the two Governments, at the request of either, and recognized that the U.S. Government required audits and inspections in implementing the assistance program.

U.N. Conference on Trade and Development

The Fourth U.N. Conference on Trade and Development (UNCTAD IV) was held in Nairobi, Kenya, May 5-May 31, 1976. The outcome included some positive achievements, particularly on the outlines of an integrated commodity program designed to help stabilize and increase export earning of developing countries. The Conference, however, was unable to reach agreement on action to alleviate the serious debt burden of the developing countries not exporting oil. The Conference did not accept a U.S. proposal for an International Resources Bank.

Calling upon the nations attending the Conference to build upon the positive accomplishments of the Seventh Special Session, Secretary of State Kissinger in an address to the Conference on May 6, 1976, underscored the desire of the United States to cooperate with other nations. He stated:

We are, this year, in the midst of what may well be the most extensive series of international negotiations on trade, finance, commodities, and development in history-involving more nations, addressing more issues, and affecting more people than ever before. This conference has a major role to play. In particular we can advance our work in four key areas:

First, we must make renewed efforts on commodity issues, including the problems of resource investment and trade.

Second, we must design a far-reaching long term program to accelerate technology transfer.

Third, we must deal with serious balance-of-payments and debt problems which face a number of developing countries

Fourth, we must continue to respond to the special and urgent needs of the poorest countries

At this conference, the United States proposes its own comprehensive approach to commodity issues. It reflects many of the objectives contained in the integrated program and our desire for constructive action on all aspects of the challenge. It contains the following elements:

-Insuring sufficient financing for resource development and for equitable sharing in the benefits by the host nation;

-Improving the conditions of trade and investment in individual commodities and moderating excessive price fluctuations;

-Stabilizing the overall export earnings of developing countries; and

-Improving access to markets for processed products of developing countries while assuring consumers reliability of supply.