the Administrator of the Agency for International Development, the chairman and the ranking minority member of both the House Committee on Agriculture and the House Committee on Foreign Affairs, and the chairman and the ranking minority member of both the Senate Committee on Agriculture and Forestry and the Senate Committee on Foreign Relations, or their designees (who shall be members of such committees or, in the case of members from the executive branch, who shall have been confirmed by the Senate).29b The Advisory Committee shall survey the general policies relating to the administration of the Act, including the manner of implementing the self-help provisions, the uses to be made of foreign currencies which accrue in connection with sales for foreign currencies under title I, the amount of currencies to be reserved in sales agreements for loans to private industry under section 104 (e), rates of exchange, interest rates, and the terms under which dollar credit sales are made, and shall advise the President with respect thereto. The Advisory Committee shall meet not less than four times during each calendar year at the call of the Acting Chairman of such Committee who shall preside in the following order: The chairman of the House Committee on Agriculture, the chairman of the Senate Committee on Foreign Relations, the chairman of the Senate Committee on Agriculture and Forestry, and the chairman of the House Committee on Foreign Affairs.30 (7 U.S.C. 1736a.)

SEC. 408 (a). The President shall make a report to Congress not later than April 1 each year with respect to the activities carried out under this Act during the preceding fiscal year. Such report shall describe the progress of each country with which agreements are in effect under title I in carrying out its agreements under such title.

(b) In his presentation to the Congress of planned programing of food assistance for each fiscal year, the President shall include a global assessment of food production and needs, self-help steps which are being taken by food-short countries under section 109 (a) of this Act, steps which are being taken to encourage other countries to increase their participation in food assistance or the financing of food assistance, and the relationship between food assistance provided to each country under this Act and other foreign assistance provided to such country by the United States and other donors.

(c) Not later than November 1 of each calendar year the President shall submit to the House Committee on Agriculture, the House Committee on International Relations, the Senate Committee on Agriculture and Forestry, and the Senate Committee on Foreign Relations a revised global assessment of food production and needs, and revised planned programming of food assistance for the current fiscal year, to reflect, to the maximum extent feasible, the actual availability of commodities for food assistance.30 (7 U.S.C. 1736b.)

29b The parenthetical clause and the three preceding words were added by Sec. 210 of P.L. 94-161, 89 Stat. 854, Dec. 20, 1975.

30 Amended by P.L 90-436, 82 Stat. 451, July 29, 1968.

30a Sec. 211 of P.L. 94-161, 89 Stat. 854, Dec. 20, 1975, added "(a)" immediately after "Sec. 408.", changed the reporting period from calendar to fiscal year in subsection (a), and added new subsections (b) and (c).

SEC. 409. No agreements to finance sales under title I and no programs of assistance under title II shall be entered into after December 31, 1977.31 (7 U.S.C. 1736c.)

SEC. 410. The provisions of section 620 (e) of the Foreign Assistance Act of 1961, as amended (referring to nationalization, expropriation, and related governmental Acts affecting property owned by United States citizens), shall be applicable to assistance provided under title I of this Act.32 (7 U.S.C. 1736d.)

SEC. 411.32 No agricultural commodities shall be sold under title I or title III or donated under title II of this Act to North Vietnam, unless by an Act of Congress enacted subsequent to July 1, 1973, assistance to North Vietnam is specifically authorized. (7 U.S.C. 1736e.)

SEC. 412.33 The President is authorized and encouraged to seek international agreement, subject to congressional approval, for a system of food reserves to meet food shortage emergencies and to provide insurance against unexpected shortfalls in food production, with costs of such a system to be equitably shared among nations and with farmers and consumers to be given firm safeguards against market price disruption from such a system. (7 U.S.C. 1736f.)

31 Amended by Sec. 701 of the Agricultural Act of 1970, P.L. 91-524, 84 Stat. 1379, Nov. 30, 1970 to extend the period from December 31, 1970, to December 31, 1973. Amended by Sec. 1(26) of the Agriculture and Consumer Protection Act of 1973, P.L. 93-86, 87 Stat. 237, Aug. 10, 1973, to change the final date to December 31, 1977.

Sec. 620 (e) of the Foreign Assistance Act of 1961, P.L. 87-195, 75 Stat, 444, Sept. 4, 1961, as amended (22 U.S.C. 2370 (e)) reads in part as follows:

(e) (1) The President shall suspend assistance to the government of any country to which assistance is provided under this or any other Act when the government of such Country or any government agency or subdivision within such country on or after January 1, 1962

(A) has nationalized or expropriated or seized ownership or control of property owned by any United States citizen or by any corporation, partnership, or association not less than 50 per centum beneficially owned by United States citizens, or (B) has taken steps to repudiate or nullify existing contracts or agreements with any United States citizen or any corporation, partnership, or association not less than 50 per centum beneficially owned by United States citizens, or

(C) has imposed or enforced discriminatory taxes or other exactions, or restrictive maintenance or operational conditions, or has taken other actions, which have the effect of nationalizing, expropriating, or otherwise seizing ownership or control of property so owned.

and such country, government agency, or government subdivision fails within a reasonable time (not more than six months after such action, or, in the event of a referral to the Foreign Claims Settlement Commission of the United States within such period as provided herein, not more than twenty days after the report of the Commission is received) to take appropriate steps, which may include arbitration, to discharge its obligations under international law toward such citizen or entity, including speedy compensation for such property in convertible foreign exchange, equivalent to the full value thereof, as required by international law, or fails to take steps designed to provide relief from such taxes, exactions, or conditions, as the case may be; and such suspension shall continue until the President is satisfied that appropriate steps are being taken, and the provisions of this subsection shall not be waived with respect to any country 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 immediately to Congress."

Sec. 411 was added by Sec. 1(26) of the Agriculture and Consumer Protection Act

of 1973, P.L. 93-86, 87 Stat. 237, Aug. 10, 1973.

Sec. 412 was added by Sec. 212 of P.L. 94-161, 89 Stat. 855, Dec. 20, 1975.

SECTION 32 AND RELATED STATUTES

SECTION 32 OF PUBLIC LAW NO. 320, SEVENTY-FOURTH CONGRESS1

SEC. 32. There is hereby appropriated for each fiscal year beginning with the fiscal year ending June 30, 1936, an amount equal to 30 per centum of the gross receipts from duties collected under the customs laws during the period January 1 to December 31, both inclusive, preceding the beginning of each such fiscal year.2 Such sums shall be maintained in a separate fund and shall be used by the Secretary of Agriculture only to (1) encourage the exportation of agricultural commodities and products thereof by the payment of benefits in connection with the exportation thereof or of indemnities for losses incurred in connection with such exportation or by payments to producers in connection with the production of that part of any agricultural commodity required for domestic consumption; (2) encourage the domestic consumption of such commodities or products by diverting them, by the payment of benefits or indemnities or by other means, from the normal channels of trade and commerce or by increasing their utilization through benefits, indemnities, donations or by other means, among persons in low-income groups as determined by the Secretary of Agriculture; and (3) reestablish farmers' purchasing power by making payments in connection with the normal production of any agricultural commodity for domestic consumption. Determinations by the Secretary as to what constitutes diversion and what constitutes normal channels of trade and commerce and what constitutes normal production for domestic consumption shall be final.

The sums appropriated under this section shall be expended for such one or more of the above-specified purposes, and at such times, in such manner, and in such amounts as the Secretary of Agriculture finds will effectuate substantial accomplishment of any one or more of the purposes of this section. Notwithstanding any other provision of this section, the amount that may be devoted, during any fiscal

1 The Act of August 24, 1935, 49 Stat. 750, 774. Although this section has been amended a number of times, the purposes of Section 32-through payments or indemnities to encourage the exportation and domestic consumption of agricultural commodities and products and to reestablish farmers' purchasing power in connection with the normal production of agricultural commodities-remain basically the same since February 29, 1936. Authority to encourage consumption of agricultural commodities and products by their utilization among persons in low-income groups was added by amendment of clause (2) in 1939 (53 Stat. 975). Later amendments are noted.

Surplus agricultural commodities purchased under clause (2) may be donated for relief purposes and for use in nonprofit summer camps for children under the Act of June 28, 1937 (p. 231), and may be donated to schools and service institutions under sections 9 and 13 of the National School Lunch Act, as amended, (p. 266) and section 8 of the Child Nutrition Act of 1966 (p. 284).

2 Section 205 of the Agricultural Act of 1956 (see p. 232) authorized the appropriation for each fiscal year, beginning with the fiscal year ending June 30, 1957, of $500,000,000 to enable the Secretary of Agriculture to further carry out the provisions of Section 32, subject to all provisions of law relating to the expenditure of funds appropriated by such section, except that up to 50 percent of the $500,000,000 may be devoted during any fiscal year to any one agricultural commodity or the products thereof.

3 For the administration of Section 32, not to exceed 4% of the total amount available for such section in any fiscal year may be used for that purpose under the limitation contained in section 392 (b) of the Agricultural Act of 1938, as amended, p. 148.

SEC. 2.12 (a) The Secretary of Agriculture shall transfer to the Secretary of the Interior 13 each fiscal year, beginning with the fiscal year commencing July 1, 1954, and ending on June 30, 1957,14 from moneys made available to carry out provisions of section 32 of such Act of August 24, 1935, an amount equal to 30 per centum of the gross receipts from duties collected under the customs laws on fishery products (including fish, shellfish, mollusks, crustacea, aquatic plants Iand animals, and any products thereof, including processed and manufactured products), which shall be maintained in a separate fund and used by the Secretary of the Interior (1) to promote the free flow of domestically produced fishery products in commerce by conducting a fishery educational service and fishery technological, biological and related research programs, the moneys so transferred to be also available for the purchase or other acquisition, construction, equipment, operation, and maintenance of vessels or other facilities necessary for conducting research as provided for in this section, and (2) to develop and increase markets for fishery products of domestic origin and (3) to conduct any biological, technological, or other research pertaining to American fisheries.

(b) For the purposes of this section, any agency of the United States, or any corporation wholly owned by the United States, is authorized to transfer, without reimbursement or transfer of funds, any vessels or equipment excess to its need required by the Secretary of the Interior for the activities, studies, and research authorized herein.

(c) In carrying out the purposes and objectives of this section, the Secretary of the Interior is directed as far as practicable to cooperate with other appropriate agencies of the Federal Government, with State or local governmental agencies, private agencies, organizations, or individuals, having jurisdiction over or an interest in fish or fishery commodities and he is authorized to appoint an advisory committee of the American fisheries industry to advise him in the formulation of policy, rules and regulations pertaining to requests for assistance, and other matters.

(d) The Secretary of the Interior is further authorized to retransfer any of the funds not to exceed $1,500,000 to be made available under this section to the Secretary of Agriculture to be used for the purposes specified in section 1 of this Act, and only such funds as are thus transferred shall be used for the purposes specified in section 1 of this Act with respect to domestically produced fishery products.

(e) The separate fund created for the use of the Secretary of the Interior under section 2(a) of this Act and the annual accruals thereto shall be available for each year until expended by the Secretary.15 (15 U.S.C. 713c-3.)

12 The provisions of this section were substituted for the original provisions by the Act of July 1, 1954, 68 Stat. 376.

13 These funds are currently being transferred to the Secretary of Commerce rather than to the Secretary of Interior pursuant to Reorganization Plan No. 4 of 1970, 84 Stat. 2090, transmitted July 9, 1970, effective October 3, 1970 (5 U.S.C., App.).

14 Section 12 (a) of the Act of August 8, 1956 (70 Stat. 1124, 15 U.S.C. 713c-3, note) provides:

"The authorization for the transfer of certain funds from the Secretary of Agriculture to the Secretary of the Interior and their maintenance in a separate fund as contained in section 2(a) of the Act of August 11, 1939, as amended July 1, 1954 (68 Stat. 376), shall be continued for the year ending June 30, 1957, and each year thereafter."

15 Subsection (e) was amended by the Act of August 8, 1956, 70 Stat. 1124. Former subsection (f) providing for reports by the Secretary of the Interior was repealed by the Act of November 8, 1965, 79 Stat. 1311.

231-511 O 776

SUBPART F. COMMODITY DONATIONS

[A number of authorities for donations are found in the following statutes which are set forth in other parts of this compilation as indicated:

Page

Clause 2 of Section 32 of the Act of August 24, 1935 (programs to encourage domestic consumption)

230

Act of June 28, 1937, as amended (donation for relief purposes and nonprofit children's summer camps)

Sections 6, 9, 13, and 17 of the National School Lunch Act (donation for child nutrition programs)

231

263, 267, 273, 277A

Title II of the Agricultural Trade Development and Assistance Act of 1954, as amended (donations for famine relief and other assistance abroad)

Section 8 of Child Nutrition Act of 1966

Sections 409, 410 of the Disaster Relief Act of 1974

223A

284

244A

In addition to the foregoing, there are also the following statutes relating to donation; some of which affect one or more of the above authorities.]

DISPOSITION OF COMMODITIES TO PREVENT WASTE

Agricultural Act of 1949-SEC. 416.1 In order to prevent the waste of commodities whether in private stocks or 2 acquired through price-support operations by the Commodity Credit Corporation before they can be disposed of in normal domestic channels without impairment of the price-support program or sold abroad at competitive world prices, the Commodity Credit Corporation is authorized, on such terms and under such regulations as the Secretary may deem in the public interest: (1) upon application, to make such commodities available to any Federal agency for use in making payment for commodities not produced in the United States; (2) to barter or exchange such commodities for strategic or other materials as authorized by law; (3) in the case of food commodities to donate such commodities to the Bureau of Indian Affairs and to such State, Federal, or private agency or agencies as may be designated by the proper State or Federal authority and approved by the Secretary, for use in the United States in nonprofit school-lunch programs,3 in

1 The provisions of this section were substituted for the previous provisions by section 302 of the Agricultural Trade Development and Assistance Act of 1954, P.L. 83-480, 68 Stat. 458, July 10, 1964. See section 9 of P.L. 85-931, 72 Stat. 1792, Sept. 6, 1958 (on p. 238) providing for distribution of commodities under section 416 to overseas areas under the jurisdiction or administration of the United States.

The Food for Peace Act of 1966, P.L. 89-808, 80 Stat. 1538, Nov. 11, 1966, deleted all references to foreign donations from section 416, effective Jan. 1, 1967.

2 The words "whether in private stocks or" were added by P.L. 86-108, 73 Stat. 250, July 24, 1959.

3 See P.L. 86-756, 74 Stat. 899, Sept. 13, 1959, as amended, (p. 237) authorizing the use of surplus foods for training home economics students.