ACT OF 19541 Public Law 480-83d Congress AN ACT To increase the consumption of United States agricultural commodities in foreign countries, to improve the foreign relations of the United States, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Agricultural Trade Development and Assistance Act of 1954". SEC. 2. The Congress hereby declares it to be the policy of the United States to expand international trade; to develop and expand export markets for United States agricultural commodities; to use the abundant agricultural productivity of the United States to combat hunger and malnutrition and to encourage economic development in the developing countries, with particular emphasis on assistance to those countries that are determined to improve their own agricultural production; and to promote in other ways the foreign policy of the United States.2 In furnishing food aid under this Act, the President shall (1) give priority consideration, in helping to meet urgent food needs abroad, to making available the maximum feasible volume of food commodities (with appropriate regard to domestic price and supply situations) required by those countries most seriously affected by food shortages and by inability to meet immediately food requirements on a normal commercial basis; (2) continue to urge all traditional and potential new donors of food, fertilizer, or the means of financing these commodities to increase their Approved July 10, 1954, 68 Stat. 454. The Food for Peace Act of 1966, P.L. 89-808, 80 Stat. 1526, Nov. 11, 1966, substantially amended P.L. 480. Such amendments became effective Jan. 1, 1967. P.L. 480 was further amended by P.L. 90-436, 82 Stat. 450, July 29, 1968, by Sec. 701 and 702 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1379, Nov. 30, 1970, by P.L. 92-42, 85 Stat. 99, July 1, 1971, by P.L. 93-86, 87 Stat. 237, Aug. 10, 1973, by P.L. 94-161, 89 Stat. 849, Dec. 20, 1975, by P.L. 95-88, 91 Stat. 533, Aug. 3, 1977, by the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 955, Sept. 29, 1977, by P.L. 95-424, 92 Stat. 937, Oct. 6, 1978, by P.L. 96-53, 93 Stat. 368, Aug. 14, 1979, and by P.L. 96-72, 93 Stat. 503, Sept. 29, 1979. The balance of Sec. 2 was added by Sec. 201 of P.L. 94-161, 89 Stat. 851, Dec. 20, 1975. The Foreign Assistance Act of 1961 was also amended by Sec. 302 of P.L. 94-161. "The International Development and Food Assistance Act of 1978, P.L. 95-424, 92 Stat. 954, Oct. 6, 1978, provided: "EFFECTIVENESS OF FOOD ASSISTANCE IN MEETING BASIC FOOD NEEDS SEC. 201. The Congress finds that food assistance provided by the United States to developing countries under title I of the Agricultural Trade Development and Assistance Act of 1954 often is distributed within those countries in ways which do not significantly alleviate hunger and malnutrition in those countries. In order to determine how United States food assistance can be more effectively used to meet the food needs of the poor in developing countries, the President shall submit to the Congress not later than February 1, 1979, a report (1) explaining why food assistance provided to developing countries under title I of the Agricultural Trade Development and Assistance Act of 1954 is not more successful in meeting the food needs of those suffering from hunger and malnutrition, and (2) recommending steps which could be taken (including increasing the proportion of food assistance which is furnished under titles and III of that Act) to increase the effectiveness of food assistance under that Act in meeting those needs." (7 U.S.C. 1711 note.) The Act of Nov. 9, 1979, P.L. 96-109, 93 Stat. 842, amended the Foreign Assistance Act of 1961, P.L. 87-195, 75 Stat. 439, Sept. 40, 1961, by adding: "SEC. 495G. SPECIAL CARIBBEAN HURRICANE RELIEF ASSISTANCE.- The President is authorized to furnish assistance, on such terms and conditions as he may determine, for disaster relief and reconstruction in the Caribbean to assist in alleviating the human suffering caused by recent hurricanes in that region. In addition to amounts otherwise available for such purposes, there is authorized to be appropriated for purposes of this section $25,000,000 for the fiscal year 1980, which amount is authorized to remain available until expended. Assistance under this section shall be provided in accordance with the policies and general authorities contained in section 491.". The Act of Nov. 9, 1979, also provided: "SEC. 2. Priority shall be given to furnishing agricultural commodities under the Agricultural Trade Development and Assistance Act of 1954 to countries in the Caribbean in order to assist in alleviating the human suffering caused by the recent hurricanes in that region." participation in efforts to address the emergency and longer term food needs of the developing world; (3) relate United States assistance to efforts by aid-receiving countries to increase their own agricultural production, with emphasis on development of small, family farm agriculture, and improve their facilities for transportation, storage, and distribution of food commodities; (4) give special consideration to the potential for expanding markets for America's agricultural abundance abroad in the allocation of commodities or concessional financing; and (5) give appropriate recognition to and support of a strong and viable American farm economy in providing for the food security of consumers in the United States and throughout the world. (7 U.S.C. 1691.) [FOOD AND AGRICULTURE ACT OF 1977* SEC. 1209. It is the sense of Congress that there be no discrimination between "price-supported" and "nonprice-supported" commodities in the programming of commodities under the Agricultural Trade Development and Assistance Act of 1954, as amended (Public Law 480). (7 U.S.C. 1691 note.) SEC. 1210. (a) It is the sense of Congress that attention be given to handling, storage, transportation, and administrative procedures in order to make improvements in the operation of the Agricultural Trade Development and Assistance Act of 1954, as amended (Public Law 480). Toward this objective, the Secretary of Agriculture shall appoint a special task force to review and report upon the administration of the Act. (b) Such review shall include, but not be limited to, organizational arrangements for the administration of Public Law 480, or parts thereof, title I allocation criteria and procedures, quality control, including handling and storage through the first stage of distribution in the recipient country, and regulation of businesses and organizations to which services are contracted under Public Law 480. (c) Not later than eighteen months following enactment of this Act, the Secretary of Agriculture shall transmit to Congress the report of such task force, along with administrative actions the Secretary has taken or intends to take as a result of such report, and recommendations, if any, for legislative changes. (7 U.S.C. 1691 note.)] SEC. 3.5 Pursuant to the World Food Conference recommendation that donor countries provide a total of at least ten million tons of food assistance to needy nations annually, the President is urged to maintain a significant United States contribution to this goal and to encourage other countries to maintain and increase their contributions as well. (7 U.S.C. 1691a.) P.L. 95-113, 91 Stat. 957, Sept. 29, 1977. Added by Sec. 202 of P.L. 94-161, 89 Stat. 851, Dec. 20, 1975. Sec. 213, of P.L. 94-161 provides: "The Congress calls upon the President to strengthen the efforts of the United States to carry out the recommendations of the World Food Conference. The President shall submit a detailed report to the Congress not later than November 1, 1976, with respect to the steps he has taken to carry out the recommendations of the World Food Conference, including steps to fulfill the commitment of the United States and to encourage other nations to increase their participation in efforts to improve the food security of the poorest portion of the world's population". (7 U.S.C. 1691a note.) TITLE I SEC. 101. In order to carry out the policies and accomplish the objectives set forth in section 2 of this Act, the President is authorized to negotiate and carry out agreements with friendly countries to provide for the sale of agricultural commodities for dollars on credit terms or for foreign currencies.6 (7 U.S.C. 1701.) SEC. 102. For the purpose of carrying out agreements concluded under this Act the Commodity Credit Corporation is authorized to finance the sale and exportation of agricultural commodities whether from private stocks or from stocks of the Commodity Credit Corporation and, when requested by the purchaser of such commodities, may serve as the purchasing or shipping agent, or both, in arranging the purchasing or shipping of such commodities. (7 U.S.C. 1702.) SEC. 103. In exercising the authorities conferred upon him by this title, the President shall (a) take into account efforts of friendly countries to help themselves toward a greater degree of self-reliance, including efforts to increase their own agricultural production, especially through small, family farm agriculture, to improve their facilities for transportation, storage, and distribution of food commodities, and to reduce their rate of population growth;8 (b) take steps to assure a progressive transition from sales for foreign currencies to sales for dollars (or to the extent that transition to sales for dollars under the terms applicable to such sales is not possible, transition to sales for foreign currencies on credit terms no less favorable to the United States than those for development loans made under section 122 of the Foreign Assistance Act of 1961, as amended, and on terms which permit conversion to dollars at the exchange rate applicable to the sales agreement) at a rate whereby the transition can be completed by December 31, 1971: Provided, 10 That, except where he determines that it would be inconsistent with the objectives of the Act, the President shall determine the amount of foreign currencies needed for the Section 603 of the Foreign Assistance Act of 1961, P.L. 87-195, 75 Stat. 439, as amended (22 U.S.C. 2353), provides that "The ocean transportation between foreign countries of commodities and defense articles purchased with foreign currencies made available or derived from funds made available under this Act or the Agricultural Trade Development and Assistance Act of 1954, as amended (7 U.S.C. 1691 et seq.), and transfers of fresh fruit and products thereof under this Act, shall not be governed by the provisions of section 901(b) of the Merchant Marine Act of 1936, as amended (46 U.S.C. 1241), or any other law relating to the ocean transportation of commodities on United States flag vessels.' Sec. 3 of P.L. 962, 84th Cong., 70 Stat. 988, August 3, 1956, provides that "Sales of fresh fruit and the products thereof under title I of the Act shall be exempt from the requirements of the cargo preference laws (Public Resolution 17, 73rd Cong., (15 U.S.C. 616a) and Sec. 901(b) of the Merchant Marine Act, 1936 (46 U.S.C. 1241(b))." " For the text of the Cargo Preference Act, P.L. 664, 83rd Cong., 68 Stat. 832, as amended, 75 Stat. 565 (46 U.S.C. 1241(b)), see p. 52-1. Sec. 201 of the International Development and Food Assistance Act of 1977, P.L. 95-88, 91 Stat. 545, Aug. 3, 1977, deleted provisos appearing after "Corporation" which had been added by P.L. 90-436, 82 Stat. 451, July 29, 1968, and which related generally to prohibitions on financing transactions involving exporters and subsidiaries trading with North Vietnam. Sec. 1201 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 955, Sept. 29, 1977, added the remainder of the sentence beginning with "and,". Sec. 103 (a) was amended by Sec. 203 of P.L. 94-161, 89 Stat. 851, Dec. 20, 1975. *Sec. 122 of the Foreign Assistance Act of 1961, as amended (22 U.S.C. 2151t), provides in part that "In order to carry out the purposes of this chapter, the President is authorized to furnish assistance, on such terms and conditions as he may determine, to countries and areas through programs of grant and loan assistance, bilaterally or through regional, multilateral, or private entities." and "The President shall determine the interest payable on any loan. În making loans under this chapter, the President shall consider the economic circumstances of the borrower and other relevant factors, including the capacity of the recipient country to repay the loan at a reasonable rate of interest, except that loans may not be made at a rate of interest of less than 3 per centum per annum commencing not later than ten years following the date on which the funds are initially made available under the loan, during which ten-year period the rat eof interest shall not be lower than 2 per centum per annum. Currently, the maximum term for loans under this Act is 40 years with a grace period of not to exceed 10 years. uses specified in subsections (a), (b), (c), (e), and (h) of section 104 and in title III,11 and the agreements for such credit sales shall provide for payment of such amounts in dollars or in foreign currencies upon delivery of the agricultural commodities. Such payment may be considered as an advance payment of the earliest installments; (c) take reasonable precautions to safeguard usual marketings of the United States and to assure that sales under this title will not unduly disrupt world prices of agricultural commodities or normal patterns of commercial trade with friendly countries; (d)12 make sales agreements only with those countries which he determines to be friendly to the United States: Provided, That the President shall periodically review the status of those countries which are eligible under this subsection and report the results of such review to the Congress. As used in this Act, "friendly country" shall not include (1) any country or area dominated or controlled by a foreign government or organization controlling a world Communist movement, or (2) for the purpose only of sales of agricultural commodities for foreign currencies under title I of this Act, any country or area dominated by a Communist government. Notwithstanding any other Act, the President may enter into agreements for the sale of agricultural commodities for dollars on credit terms under title I of this Act with countries which fall within the definition of "friendly country" for the purpose of such sales and no sales under this Act shall be made with any country if the President finds such country is (a) an aggressor, in a military sense, against any country having diplomatic relations with the United States, or (b) using funds, of any sort, from the United States for purposes inimical to the foreign policies of the United States;13 11 Sec. 211 of the International Development and Food Assistance Act of 1977, P.L. 95-88, 91 Stat. 551, Aug. 3, 1977, substituted "title III" for "section 106(b)(2)", which had been added by Sec. 203 of P.L. 94-161, 89 Stat. 851, Dec. 20, 1975. 12 See Sec. 410 of this Act. Sec. 201 of the International Development and Food Assistance Act of 1977, P.L. 95-88, 91 Stat. 545, Aug. 3, 1977, deleted clauses (3) and (4) relating generally to countries trading with Cuba or North Vietnam and the limitation with respect to the United Arab Republic. Clause (3) had previously been amended by P.L. 94-161, 89 Stat. 851, Dec. 20, 1975, to permit Presidential waiver of exclusions. 18 The Foreign Assistance Act of 1966, P.L. 89-583, 80 Stat. 795, Sept. 19, 1966, amended subsection (i) of Sec. 620 of the Foreign Assistance Act of 1961, P.L. 87-195, 75 Stat. 444, as amended, to read as follows: "No assistance shall be provided under this or any other Act, and no sales shall be made under the Agricultural Trade Development and Assistance Act of 1954 to any country which the President determines is engaging in or preparing for aggressive military efforts, or which hereafter is officially represented at any international conference when that representation includes the planning of activities involving insurrection or subversion, which military efforts, insurrection, or subversion, are directed against (1) the United States, (2) any country receiving assistance under this or any other Act, or (3) any country to which sales are made under the Agricultural Trade Development and Assistance Act of 1954, until the President determines that such military efforts or preparations have ceased, or such representation has ceased, and he reports to the Congress that he has received assurances satisfactory to him that such military efforts or preparations will not be renewed, or that such representation will not be renewed or repeated. This restriction may not be waived pursuant to any authority contained in the Act." (22 U.S.C. 2370(i).) Sec. 620 of the Foreign Assistance Act of 1961 was further amended by the Foreign Assistance Act of 1967, Pub. Law 90-137, 81 Stat. 459, approved Nov. 14, 1967. Subsection (j) was amended and subsection (t) was added to read as follows: "() The President shall consider terminating assistance under this or any other Act to any country which permits, or fails to take adequate measures to prevent, the damage or destruction by mob action of United States property within such country, and fails to take appropriate measures to prevent a recurrence thereof and to provide adequate compensation for such damage or destruction." (22 U.S.C. 2370(j).) "(t) No assistance shall be furnished under this or any other Act, and no sales shall be made under the Agricultural Trade Development and Assistance Act of 1954, in or to any country which has severed or hereafter severs diplomatic relations with the United States or with which the United States has severed or hereafter severs diplomatic relations, unless (1) diplomatic relations have been resumed with such country and (2) agreements for the furnishing of such assistance or the making of such sales, as the case may be, have been negotiated and entered into after the resumption of diplomatic relations with such country." (22 U.S.Č. 2370(t).) Sec. 620 of the Foreign Assistance Act of 1961 was further amended by the Foreign Assistance Act of 1967 by the (e) take appropriate steps to assure that private trade channels are used to the maximum extent practicable both with respect to sales from privately owned stocks and with respect to sales from stocks owned by the Commodity Credit Corporation and that small business has adequate and fair opportunity to participate in sales made under the authority of this Act; (f) give consideration to the development and expansion of markets for United States agricultural commodities and local foodstuffs by increasing the effective demand for agricultural commodities through the support of measures to stimulate equitable economic growth in recipient countries, with appropriate emphasis on developing more adequate storage, handling, and food distribution facilities:14 (g) obtain commitments from purchasing countries that will prevent resale or transshipment to other countries, or use for other than domestic purposes, of agricultural commodities purchased under this title, without specific approval of the President; (h) obtain rates of exchange applicable to the sale of commodities under such agreements which are not less favorable than the highest of exchange rates legally obtainable in the respective countries and which are not less favorable than the highest of exchange rates obtainable by any other nation; (i) promote progress toward assurance of an adequate food supply by encouraging countries with which agreements are made to give higher emphasis to the production of food crops than to the production of such nonfood crops as are in world surplus; (j) exercise the authority contained in title I of this Act to assist friendly countries to be independent of domination or control by any world Communist movement. Nothing in this Act shall be construed as authorizing the sales agreements under title I with any government or organization controlling a world Communist movement or with any country with which the United States does not have diplomatic relations;15 (k) whenever practicable require upon delivery that not less than 5 per centum of the purchase price of any agricultural commodities sold under title I of this Act be payable in dollars or in the addition of new subsection (s), which subsection was itself amended by the Foreign Assistance Act of 1969, Pub. L. 91-175, 83 Stat. 820, approved December 30, 1969, to read as follows: "(s) (1) In order to restrain arms races and proliferation of sophisticated weapons, and to ensure that resources intended for economic development are not diverted to military purposes, the President shall take into account before furnishing development loans, Alliance loans or supporting assistance to any country under this Act, and before making sales under the Agricultural Trade Development and Assistance Act of 1954, as amended: (A) the percentage of the recipient or purchasing country's budget which is devoted to military purposes; (B) the degree to which the recipient or purchasing country is using its foreign exchange resources to acquire military equipment; and (C) the amount spent by the recipient or purchasing country for the purchase of sophisticated weapons systems, such as missile systems and jet aircraft for military purposes, from any country. (2) The President shall report annually to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate his actions in carrying out this provision." (22 U.S.C. 2370(s).) Sec. 481 of the Foreign Assistance Act of 1961, which was added by section 109 of the Foreign Assistance Act of 1971 (22 U.S.C. 2291), prohibits the furnishing of assistance under that or any other Act and the making of sales under Title I of the Agricultural Trade Development and Assistance Act of 1954 with respect to any country which the President determines has not taken adequate steps to carry out the purposes of that section directed to the control of illicit production, trafficking in, and abuse of dangerous drugs. Sec. 639 of the Foreign Assistance Act of 1961, as amended, provides that "No provision of this Act shall be construed to prohibit assistance to any country for famine or disaster relief." (22 U.Ŝ.C. 2399.) 14 The language of (f) was substituted by Sec. 201 of P.L. 96-53, 93 Stat. 368, Aug. 14, 1979, for "(f) give special consideration to the development and expansion of foreign markets for United States agricultural commodities, with appropriate emphasis on more adequate storage, handling, and food distribution facilities as well as long-term development of new and expanding markets by encouraging economic growth;". 15 See section 620(t) of the Foreign Assistance Act of 1961, as amended, as quoted in footnote 13. |