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sis 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 lb

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. 3.10 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.)

1b P.L. 95-113, 91 Stat. 957, Sept. 29, 1977.

1c Added by Sec. 202 of P.L. 94-161, 89 Stat. 851, Dec. 20, 1975. Sec. 213, of P.L. 94161 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.2 (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.)

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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; sa

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(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 201 of the Foreign Assistance Act of 1961, as amended, and on terms which permit conversion to dol

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. 362.

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,".

a 103 (a) was amended by Sec. 203 of P.L. 94-161, 89 Stat. 851, Dec. 20, 1975. Sec. 201 of the Foreign Assistance Act of 1961, as amended (22 U.S.C. 2161). provides in part that "The President is authorized to make loans payable as to principal and interest in United States dollars on such terms and conditions as he may determine, in order to promote the economic development of less developed friendly countries and areas, with emphasis upon assisting long-range plans and programs designed to develop economic resources and increase production capacities." In so doing he must take certain factors into account. Funds, however, shall not ". be loaned 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 tenyear period the rate of 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.

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lars at the exchange rate applicable to the sales agreement) at a ra whereby the transition can be completed by December 31, 197 Provided, That, except where he determines that it would be inco sistent with the objectives of the Act, the President shall determi the amount of foreign currencies needed for the uses specified subsections (a), (b), (c), (e), and (h) of section 104 and in tit III, and the agreements for such credit sales shall provide for pa ment of such amounts in dollars or in foreign currencies upon d livery of the agricultural commodities. Such payment may be co sidered as an advance payment of the earliest installments.

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

(d) make sales agreements only with those countries which determines to be friendly to the United States: Provided, That t 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 countr shall not include (1) any country or area dominated or controll by a foreign government or organization controlling a world Co munist movement, or (2) for the purpose only of sales of agric tural commodities for foreign currencies under title I of this A any country or area dominated by a Communist government. No withstanding any other Act, the President may enter into agre ments for the sale of agricultural commodities for dollars on cred terms under title I of this Act with countries which fall within t definition of "friendly country" for the purpose of such sales a no sales under this Act shall be made with any country if the Pre dent finds such country is (a) an aggressor, in a military sen against any country having diplomatic relations with the Unit States, or (b) using funds, of any sort, from the United States f purposes inimical to the foreign policies of the United States; ?

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4a This proviso was amended and the last sentence added by P.L. 90-436. 82 Stat. 4 July 29, 1968.

5 Sec. 211 of the International Development and Food Assistance Act of 1977. E 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.

See Sec. 410 of this Act. Sec. 201 of the International Development and Food sistance Act of 1977, P.L. 95-88, 91 Stat. 545, Aug. 3, 1977, deleted clauses 3 and relating generally to countries trading with Cuba or North Vietnam and the limitat with respect to the United Arab Republic. Clause 3 had previously been amended P.L. 94-161, 89 Stat. 851, Dec. 20, 1975, to permit Presidential waiver of exclusic 7 The Foreign Assistance Act of 1966, P.L. 89-583, 80 Stat. 795, Sept. 19. 19 amended subsection (i) of Sec. 620 of the Foreign Assistance Act of 1961, P.L. 87-1 75 Stat. 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 i country which the President determines is engaging in or preparing for aggressive m tary efforts, or which hereafter is officially represented at any international confere when that representation includes the planning of activities involving insurrection 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 Devel ment and Assistance Act of 1954,

until the President determines that such military efforts or preparations have ceased. such representation has ceased, and he reports to the Congress that he has received ass ances satisfactory to him that such military efforts or preparations will not be renew or that such representation will not be renewed or repeated. This restriction may not waived pursuant to any authority contained in the Act." (22 U.S.C. 2370 (i).)

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

f) give special consideration to the development and expansion oreign markets for United States agricultural commodities, with ropriate emphasis on more adequate storage, handling, and food ribution facilities as well as long-term development of new and nding markets by encouraging economic growth;

620 of the Foreign Assistance Act of 1961 was further amended by the Foreign tance Act of 1967, Pub. Law 90-137, 81 Stat. 459, approved Nov. 14, 1967. Sub(j) was amended and subsection (t) was added to read as follows: The President shall consider terminating assistance under this or any other Act country which permits, or fails to take adequate measures to prevent, the damage struction by mob action of United States property within such country, and fails e appropriate measures to prevent a recurrence thereof and to provide adequate nsation for such damage or destruction." (22 U.S.C. 2370 (j).)

No assistance shall be furnished under this or any other Act, and no sales shall de under the Agricultural Trade Development and Assistance Act of 1954, in or to untry which has severed or hereafter severs diplomatic relations with the United or with which the United States has severed or hereafter severs diplomatic relaunless (1) diplomatic relations have been resumed with such country and (2) nents for furnishing of such assistance or the making of such sales, as the case e, have been negotiated and entered into after the resumption of diplomatic relawith such country." (22 U.S.C. 2370(t).)

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

(1) In order to restrain arms races and proliferation of sophisticated weapons, and ure that resources intended for economic development are not diverted to military es, the President shall take into account before furnishing development loans, e loans or supporting assistance to any country under this Act, and before making Inder the Agricultural Trade Development and Assistance Act of 1954, as amended: (A) the percentage of the recipient or purchasing country's budget which is deted to military purposes;

(B) the degree to which the recipient or purchasing country is using its foreign change resources to acquire military equipment; and

(C) the amount spent by the recipient or purchasing country for the purchase of phisticated weapons systems, such as missile systems and jet aircraft for military rposes, from any country.

The President shall report annually to the Speaker of the House of Representatives e Committee on Foreign Relations of the Senate his actions in carrying out this on." (22 U.S.C. 2370(s).)

481 of the Foreign Assistance Act of 1961, which was added by section 109 of the 1 Assistance Act of 1971 (22 U.S.C. 2291), prohibits the furnishing of assistance that or any other Act and the making of sales under Title I of the Agricultural Development and Assistance Act of 1954 with respect to any country which the nt determines has not taken adequate steps to carry out the purposes of that directed to the control of illicit production, trafficking in, and abuse of dangerous

639 of the Foreign Assistance Act of 1961, as amended, provides that "No on of this Act shall be construed to prohibit assistance to any country for famine ster relief." (22 U.S.C. 2399.)

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