t and similar information for all companies which either directly through subsidiaries or otherwise have a controlling interest in e applicant company.3 (7 U.S.C. 1702.)

SEC. 103. In exercising the authorities conferred upon him by this le, the President shall

(a) take into account efforts of friendly countries to help themIves toward a greater degree of self-reliance, including efforts to crease their own agricultural production, especially through small, mily farm agriculture, to improve their facilities for transportaon, storage, and distribution of food commodities, and to reduce eir rate of population growth;

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(b) take steps to assure a progressive transition from sales for reign currencies to sales for dollars (or to the extent that tranion to sales for dollars under the terms applicable to such sales not possible, transition to sales for foreign currencies on credit rms no less favorable to the United States than those for develment loans made under section 201 of the Foreign Assistance Act 1961, as amended, and on terms which permit conversion to dol's at the exchange rate applicable to the sales agreement) at a rate hereby the transition can be completed by December 31, 1971: ovided, That, except where he determines that it would be incontent with the objectives of the Act, the President shall determine e amount of foreign currencies needed for the uses specified in bsections (a), (b), (c), (e), and (h) of section 104 and in secn 106 (b) (2), and the agreements for such credit sales shall ovide for payment of such amounts in dollars or in foreign currens upon delivery of the agricultural commodities. Such payment y be considered as an advance payment of the earliest install

nts.5

4a

(c) take reasonable precautions to safeguard usual marketings the United States and to assure that sales under this title will t unduly disrupt world prices of agricultural commodities or rmal patterns of commercial trade with friendly countries;

The provisos in Sec. 102 were added by P.L. 90-436, 82 Stat. 451, July 29, 1968. a Sec. 103 (a) was amended by Sec. 203 of P.L. 94-161, 89 Stat. 851, Dec. 20, 1975. Section 201 of the Foreign Assistance Act of 1961, as amended (22 U.S.C. 2161), vides in part that "The President is authorized to make loans payable as to principal interest in United States dollars on such terms and conditions as he may determine, order to promote the economic development of less developed friendly countries and as, with emphasis upon assisting long-range plans and programs designed to develop nomic resources and increase production capacities." In so doing he must take certain tors into account. Funds, however, shall not ". be loaned at a rate of interest of than 3 per centum per annum commencing not later than ten years following the e on which the funds are initially made available under the loan, during which tenr period the rate of interest shall not be lower than 2 per centum per annum. . rently, the maximum term for loans under this Act is 40 years with a grace period not to exceed 10 years.

a Sec. 203 of P.L. 94-161, 89 Stat. 851, Dec. 20, 1975, added "and in section 106 (b)

The proviso in Sec. 103(b) was amended and the last sentence was added by P.L. 436, 82 Stat. 450, July 29, 1968.

(d) makes sales agreements only with those countries which determines to be friendly to the United States: Provided, That th President shall periodically review the status of those countri which are eligible under this subsection and report the results such review to the Congress. As used in this Act, "friendly country shall not include (1) any country or area dominated or controlle by a foreign government or organization controlling a world Con munist movement, or (2) for the purpose only of sales of agricu tural commodities for foreign currencies under title I of this A any country or area dominated by a Communist government, or ( for the purpose only of sales of agricultural commodities under tit I of this Act, any nation which sells or furnishes or permits ships aircraft under its registry to transport to or from Cuba or Nor Vietnam 6a (excluding United States installations in Cuba) or ar equipment, materials, or commodities so long as they are govern by a Communist regime: Provided, That this exclusion from t definition of "friendly country" may be waived by the Preside if he determines that such waiver is in the national interest ar reports such determination to the Congress within 10 days of th date of such determination, or (4) for the purposes only of sal under title I of this Act the United Arab Republic, unless t President determines that such sale is in the national interest of t United States. No sales to the United Arab Republic shall be bas upon the requirements of that nation for more than one fiscal yea The President shall keep the President of the Senate and the Speak of the House of Representatives fully and currently informed wi respect to sales made to the United Arab Republic under title I this Act. Notwithstanding any other Act, the President may ent into agreements for the sale of agricultural commodities for dolla on credit terms under title I of this Act with countries which f within the definition of "friendly country" for the purpose of su sales and no sales under this Act shall be made with any country the President finds such country is (a) an aggressor, in a milita sense, against any country having diplomatic relations with t United States, or (b) using funds, of any sort, from the Unit States for purposes inimical to the foreign policies of the Unit States; 7

6 See Sec. 410 of this Act.

ear

6a P.L. 94-122, Agriculture and Related Agencies Appropriation Act, 1976, 89 S 641, Oct. 21, 1975, did not contain the following provision which appeared in appropriation acts: "That no funds appropriated by this Act shall be used to mulate or administer programs for the sale of agricultural commodities pursuant to t 1 of P.L. 480, 83d Congress as amended, to any nation which sells or furnishes or wh permits ships or aircraft under its registry to transport to North Vietnam any equipm materials or commodities, so long as North Vietnam is governed by a Communist regin 6b P.L. 94-161, 89 Stat. 851, Dec. 20, 1975, amended Sec. 103(d) by substituting the second proviso a new second proviso permitting Presidential waiver of the exclusi of Sec. 103 (d) (3). The second proviso of subsection (d) was amended by Sec. 203 of 1 94-161, 89 Stat. 851, Dec. 20, 1975.

7 The Foreign Assistance Act of 1966, P.L. 89-583, 80 Stat. 795, Sept. 19, 1966, amen subsection (i) of Sec. 620 of the Foreign Assistance Act of 1961, P.L. 87-195, 75 S 444, as amended, to read as follows:

"No assistance shall be provided under this or any other Act, and no sales shall made under the Agricultural Trade Development and Assistance Act of 1954, to country which the President determines is engaging in or preparing for aggressive n tary efforts,

(e) take appropriate steps to assure that private trade channels e used to the maximum extent practicable both with respect to sales om privately owned stocks and with respect to sales from stocks wned by the Commodity Credit Corporation and that small business s adequate and fair opportunity to participate in sales made under e authority of this Act;

(f) give special consideration to the development and expansion foreign markets for United States agricultural commodities, with >propriate emphasis on more adequate storage, handling, and food stribution facilities as well as long-term development of new and panding markets by encouraging economic growth;

which hereafter is officially represented at any international conference when that resentation includes the planning of activities involving insurrection or subversion, ich 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,

il the President determines that such military efforts or preparations have ceased, or h representation has ceased, and he reports to the Congress that he has received assurces satisfactory to him that such military efforts or preparations will not be renewed, that such representation will not be renewed or repeated. This restriction may not be Ived pursuant to any authority contained in the Act." (22 U.S.C. 2370(i).) Section 620 of the Foreign Assistance Act of 1961 was further amended by the Foreign istance Act of 1967. Pub. Law 90-137, 81 Stat. 459, approved November 14, 1967. sections (j) and (n) were amended and subsection (t) was added to read as follows: (j) The President shall consider terminating assistance under this or any other Act to 7 country which permits, or fails to take adequate measures to prevent, the damage or truction by mob action of United States property within such country, and fails to take ropriate measures to prevent a recurrence thereof and to provide adequate compensa1 for such damage or destruction." (22 U.S.C. 2370(j).)

(n) No loans, credits, guaranties, or grants or other assistance shall be furnished ler this or any other Act, and no sales shall be made under the Agricultural Trade velopment and Assistance Act of 1954, to any country which sells or furnishes to North tnam, or which permits ships or aircraft under its registry to transport to or from th Vietnam, any equipment, materials, or commodities, so long as the regime in North tnam gives support to hostilities in South Vietnam." (22 U.S.C. 2370(n).) (t) No assistance shall be furnished under this or any other Act, and no sales shall be le under the Agricultural Trade Development and Assistance Act of 1954, in or to any ntry which has severed or hereafter severs diplomatic relations with the United States with which the United States has severed or hereafter severs diplomatic relations, ess (1) diplomatic relations have been resumed with such country and (2) agreements furnishing of such assistance or the making of such sales, as the case may be, have n negotiated and entered into after the resumption of diplomatic relations with such ntry." (22 U.S.C. 2370 (t).)

or a provision similar to section 620(n) of the Foreign Assistance Act of 1961, as ended, see the Agriculture-Environmental and Consumer Protection Appropriation Act, 3, Pub. Law 92-399, 86 Stat. 591, approved August 22, 1972.

ection 620 of the Foreign Assistance Act of 1961 was further amended by the Foreign istance Act of 1967 by the addition of new subsection (s), which subsection was itself ended by the Foreign Assistance Act of 1969, Pub. L. 91-175, 83 Stat. 820, approved ember 30, 1969, to read as follows:

(s) (1) In order to restrain arms races and proliferation of sophisticated weapons, and ensure that resources intended for economic development are not diverted to military poses, the President shall take into account before furnishing development loans, ance loans or supporting assistance to any country under this Act, and before making es 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 the Committee on Foreign Relations of the Senate his actions in carrying out this vision." (22 U.S.C. 2370 (s).)

ection 481 of the Foreign Assistanct Act of 1961, which was added by section 109 of the eign Assistance Act of 1971 (22 U.S.C. 2291), prohibits the furnishing of assistance er that or any other Act and the making of sales under Title I of the Agricultural Trade elopment and Assistance Act of 1954 with respect to any country which the President ermines has not taken adequate steps to carry out the purposes of that section directed he control of illicit production, trafficking in, and abuse of dangerous drugs. ection 639 of the Foreign Assistance Act of 1961, as amended, provides that "No vision of this Act shall be construed to prohibit assistance to any country for famine or ster relief." (22 U.S.C. 2399.)

231-511 O 775

oposed release is transmitted by the President to the Senate Comttee on Agriculture and Forestry and the Senate Committee on reign Relations,12a and to the House Committee on Agriculture the House Committee on International Relations,12a if transtted while Congress is in session, or sixty days following the date transmittal if transmitted while Congress is not in session. Proion shall be made in sale and loan agreements for the convertiity of such amount of the proceeds thereof (not less than 2 per tum) as the Secretary of Agriculture determines to be needed to ry out the purpose of this paragraph in those countries which or offer reasonable potential of becoming dollar markets for ited States agricultural commodities. Such sums shall be conted into the types and kinds of foreign currencies as the Secretary ms necessary to carry out the provisions of this paragraph and h sums shall be deposited to a special Treasury account and shall be made available or expended except for carrying out the proions of this paragraph. Notwithstanding any other provision of 7. if sufficient foreign currencies for carrying out the purpose of s paragraph in such countries are not otherwise available, the retary of Agriculture is authorized and directed to enter into eements with such countries for the sale of agricultural commodi› in such amounts as the Secretary of Agriculture determines to adequate and for the use of the proceeds to carry out the purpose this paragraph. In carrying out agricultural market developnt activities, nonprofit agricultural trade organizations shall be lized to the maximum extent practicable. The purpose of this agraph shall include such representation of agricultural induses as may be required during the course of discussions on trade grams relating either to individual commodities or groups of modities;

2) finance with not less than 2 per centum of the total sales oceeds received each year in each country activities to assist ernational educational and cultural exchange and to provide the strengthening of the resources of American schools, coles, universities, and other public and nonprofit private educanal agencies for international studies and research under the grams authorized by title VI of the National Defense Educan Act, the Mutual Educational and Cultural Exchange Act 1961, the International Education Act of 1966, the Higher ucation Act of 1965, the Elementary and Secondary Educan Act of 1965, the National Foundation on the Arts and the manities Act of 1965, and the Public Broadcasting Act of 57; 13 (3) collect, collate, translate, abstract, and disseminate scientific technological information and conduct research and support entific activities overseas including programs and projects of entific cooperation between the United States and other counes such as coordinated research against diseases common to all

a The words "and the Senate Committee on Foreign Relations" and "and the House mittee on International Relations" were added by Sec. 204 of P.L. 94-161, 89 Stat. Dec. 20, 1975. Paragarph (2) of Sec. 104 (b) was amended by P.L. 90-436, 82 Stat. 450, July 29, 8. For the text of the Acts referred to in such paragraph, see 20 U.S.C. 511; 22 U.S.C. 1 note; 20 U.S.C. 1171 note, 1001 note, 821 note, 951 note; 47 U.S.C. 390 note.