food assistance recipients to economic self-sufficiency and to assist those nations which have been recipients of high protein, blended. or fortified foods under title II of this Act to continue to combat hunger and malnutrition among the lower income segments of their population, especially children, through the continued provision of these foods under this title.

(b) In implementing the policy declared in subsection (a), the President, in entering into agreements for the sale of high protein. blended, or fortified foods under this title with countries which (1) give assurance that the benefits of any waiver under this section will be passed on to the individual recipients of such foods, and (2) have a reasonable potential for transition to commercial purchasers of such foods, may make provisions for a waiver of repayment of up to that part of the product value which is attributable to the costs of processing, enrichment, or fortification.

(c) In implementing this section, due care shall be taken to minimize its impact on other commercial and concessional sales of whole. grains and, where feasible, agreements under this title utilizing the authority contained in this section will provide for sales of such commodities. (7 U.S.C. 1714.)

SEC. 115.23 (a) No purchases of food commodities shall be financed under this title unless they are made on the basis of an invitation for bid publicly advertised in the United States and on the basis of bid offering which shall conform to such invitation and shall be received and publicly opened in the United States. All awards in the purchase of commodities financed under this title shall be consistent with open, competitive, and responsive bid procedures, as determined by the Secretary of Agriculture. Commission, fees, or other payments to any selling agent shall-unless waived by the Secretary-be prohibited in any purchase of food commodities financed under this title.

(b) Notwithstanding any other provision of law, any commission, fee, or other compensation of any kind paid or to be paid by any supplier of a commodity or ocean transportation financed by the Commodity Credit Corporation under this title, to any agents, brokers, or other representatives of the importer or importing country, including a corporation owned or controlled by the importer or the government of the importing country, shall be reported to the Secretary of Agriculture by the supplier of the commodity or ocean transportation. The report shall identify the person or entity to whom the payment is made and the transaction in connection with which the payment is made. The Secretary shall maintain such information for public inspection, publish a report thereof annually, and forward a copy of the report to the Committee on Agriculture and the Committee on International Relations of the House of Representatives and the Committee on Agriculture. Nutrition, and Forestry of the Senate. Any supplier of a commodity or ocean transportation who fails to file such a report or who files a false report shall be ineligible to furnish -directly or indirectly-commodities or ocean transportation fi nanced under this title for a period of five years. (7 U.S.C. 1715.)

231 Sec. 115 was added by Sec. 1202 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 955, Sept. 29, 1977.

TITLE II 24

SEC. 201. (a) 25 The President is authorized to determine requirements and furnish agricultural commodities, on behalf of the people of the United States of America, to meet famine or other urgent or extraordinary relief requirements; to combat malnutrition, especially in children; to promote economic and community development in friendly developing areas; and for needy persons and nonprofit school lunch and preschool feeding programs outside the United States. The Commodity Credit Corporation shall make available to the President such 25a agricultural commodities determined to be available under section 401 as he may request.

(b) 25 The minimum quantity of agricultural commodities distributed under this title

(1) for fiscal years 1978 through 1980 shall be 1,600,000 metric tons, of which not less than 1,300,000 metric tons shall be distributed through nonprofit voluntary agencies and the World Food Program;

(2) for fiscal year 1981 shall be 1,650,000 metric tons, of which not less than 1,350,000 metric tons shall be distributed through nonprofit voluntary agencies and the World Food Program; and

(3) for fiscal year 1982 and each fiscal year thereafter shall be 1,700,000 metric tons, of which not less than 1,400,000 metric tons shall be distributed through nonprofit voluntary agencies and the World Food Program;

unless the President determines and reports to the Congress, together with his reasons, that such quantity cannot be used effectively to carry out the purposes of this title: Provided, That such minimum quantity shall not exceed the total quantity of commodities determined to be available for disposition under this Act pursuant to section 401, less the quantity of commodities required to meet famine or other urgent or extraordinary relief requirements. (7 U.S.C. 1721.) SEC. 202. (a) 25b The President may furnish commodities for the purposes set forth in section 201 through such friendly governments and such agencies, private or public, including intergovernmental organizations such as the World Food Program and other multilateral organizations in such manner and upon such terms and con

24 Sec. 604 (c) of the Foreign Assistance Act of 1961, P.L. 87-195, 75 Stat. 439, as amended (22 U.S.C. 2354), provides as follows:

"In providing for the procurement of any agricultural commodity or product thereof available for disposition under the Agricultural Trade Development and Assistance Act of 1954, as amended, for transfer by grant under this Act to any recipient country in accordance, with its requirements, the President shall, insofar as practicable and when in furtherance of the purposes of this Act, authorize the procurement of such agricultural commodity only within the United States except to the extent that such agricultural commodity is not available in the United States in sufficient quantities to supply emergency requirements of recipients under this Act."

See also note 7.

25 Sec. 208 of P.L. 94-161, 89 Stat. 853, Dec. 20, 1975, amended Sec. 201 by inserting "(a)" immediately after "Sec. 201" and by adding a new subsec. (b). Subsec. (b) was amended by Sec. 206 of the International Development and Food Assistance Act of 1977, P.L. 95-88, 91 Stat. 547, Aug. 3, 1977, by deleting certain language and inserting clauses (1)-(3).

As originally enacted by Sec. 2 of the Food for Peace Act of 1966, P.L. 89-808, 80 Stat. 1534, Nov. 11, 1966, the word "as" appeared at this point.

25b Sec. 207 of the International Development and Food Assistance Act of 1977. P.L. 95-88, 91 Stat. 547, Aug. 3, 1977, amended Sec. 202 by inserting "(a)" immediately after "Sec. 202", deleting the next to the last sentence in Subsec. (a), and adding subsec. (b).

ditions as he deems appropriate. The President shall, to the extent practicable, utilize nonprofit voluntary agencies registered with, and approved by, the Advisory Committee on Voluntary Foreign Aid. If no United States nonprofit voluntary agency registered with and approved by the Advisory Committee on Voluntary Foreign Aid is available, the President may utilize a foreign nonprofit voluntary agency which is registered with and approved by the Advisory Committee.25c Insofar as practicable, all commodities furnished hereunder shall be clearly identified by appropriate marking on each package or container in the language of the locality where they are distributed as being furnished by the people of the United States of America. Except in the case of emergency, the President shall take reasonable precaution to assure that commodities furnished hereunder will not displace or interfere with sales which might otherwise be made.

(b) (1) 25b Assistance to needy persons under this title shall be directed, insofar as practicable, toward community and other self-help activities designed to alleviate the causes of need for such assistance.

(2) In order to assure that food commodities made available under this title are used effectively, indigenous workers shall be employed, to the extent feasible, to provide information on nutrition and conduct food distribution programs in the most remote villages.

(3) In distributing food commodities under this title, priority shall be given, to the extent feasible, to those who are suffering from malnutrition by using means such as (A) giving priority within food programs for preschool children to malnourished children, and (B) giving priority to the poorest regions of countries. (74 U.S.C. 1722.)

SEC. 203.25d The Commodity Credit Corporation may, in addition to the cost of acquisition, pay with respect to commodities made available under this title costs for packaging, enrichment, preservation, and fortification; processing, transportation, handling, and other incidental costs up to the time of their delivery free on board vessels in United States ports; ocean freight charges from United States ports to designated ports of entry abroad; transportation from United States ports to designated points of entry abroad in the case (1) of landlocked countries, (2) where ports cannot be used effectively because of natural or other disturbances, (3) where carriers to a specific country are unavailable, or (4) where a substantial savings in costs or time can be effected by the utilization of points of entry other than ports; and charges for general average contributions arising out of the ocean transport of commodities transferred pursuant thereto. (7 U.S.C. 1723.)

25c Sec. 208(a) of the International Development and Food Assistance Act of 1977. P.L. 95-88, 91 Stat. 547, Aug. 3, 1977, added the third sentence of Sec. 202 (a), and Sec. 208(b) of such Act provided:

"For purposes of implementing the amendment made by subsection (a), the President shall issue regulations governing registration with an approval by the Advisory Committee on Voluntary Foreign Aid of foreign nonprofit voluntary agencies." (7 U.S.C. 1722 note.)

25d Sec. 203 was amended by Sec. 209 of the International Development and Food Assistance Act of 1977, P.L. 95-88, 91 Stat. 548, Aug. 3, 1977, by deleting "or, in the case of landlocked countries" after "ports of entry abroad" and adding the semicolon and by adding the material beginning with "in the case" through "other than ports".

SEC. 204. Programs of assistance shall not be undertaken under this title during any calendar year which call for an appropriation of more than $750,000,000 25e to reimburse the Commodity Credit Corporation for all costs incurred in connection with such programs (including the Corporation's investment in commodities made available) plus any amount by which programs of assistance undertaken under this title in the preceding calendar year have called or will call for appropriations to reimburse the Commodity Credit Corporation in amounts less than were authorized for such purpose during such preceding year. In addition to other funds available for such purposes under any other Act, funds made available under this title may be used in an amount not exceeding $7,500,000 annually to purchase foreign currencies accruing under title I of this Act in order to meet costs (except the personnel and administrative costs of cooperating sponsors, distributing agencies, and recipient agencies, and the costs of construction or maintenance of any church owned or operated edifice or any other edifices to be used for sectarian purposes) designed to assure that commodities made available under this title are used to carry out effectively the purposes for which such commodities are made available or to promote community and other self-help activities designed to alleviate the causes of the need for such assistance: Provided, however, That such funds shall be used only to supplement and not substitute for funds normally available for such purposes from other non-United States Government sources. (7 U.S.C. 1724.)

SEC. 205. It is the sense of the Congress that the President should encourage other advanced nations to make increased contributions for the purpose of combating world hunger and malnutrition, particularly through the expansion of international food and agricultural assistance programs. It is further the sense of the Congress that as a means of achieving this objective, the United States should work for the expansion of the United Nations World Food Program beyond its present established goals. (7 U.S.C. 1725.)

SEC. 206.26 Except to meet famine or other urgent or extraordinary relief requirements, no assistance under this title shall be provided under an agreement permitting generation of foreign currency proceeds unless (1) the country receiving the assistance is undertaking self-help measures in accordance with section 109 of this Act, (2) the specific uses to which the foreign currencies are to be put are set forth in a written agreement between the United States and the recipient country, and (3) such agreement provides that the currencies will be used for 26a increasing the effectiveness of the programs of food distribution and increasing the availability of food commodities provided under this title to the neediest individuals in recipient countries. The President shall include information on currencies used in accordance with this section in the reports required

25e Sec. 204 was amended by Sec. 1203 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 956, Sept. 29, 1977, by changing "$600,000,000" to "$750,000,000". 28 Sec. 206 was added by Sec. 209 of P.L. 161, 89 Stat. 854, Dec. 20, 1975.

26 Clause (3) Sec. 206 was amended by Sec. 210 of the International Development and Food Assistance Act of 1977, P.L. 95-88,, 91 Stat. 548, Aug. 3, 1977, to substitute the balance of the sentence.

under section 408 of this Act and section 657 of the Foreign Assistance Act of 1961. (7 U.S.C. 1726.)

TITLE III 27

SEC. 301.28 (a) In order to establish a strong relationship between United States food assistance and efforts by developing countries to increase the availability of food for the poor in such countries and improve in other ways the quality of their lives, the President is authorized to encourage the use of the resources provided by the concessional financing of agricultural commodities under this Act for agricultural and rural development, including voluntary family planning, health, and nutrition programs, by permitting the funds accruing from the local sales of such commodities which are used for such purposes to be applied against the repayment obligation of governments receiving concessional financing under this Act. The agreement between the United States Government and an eligible developing country government which provides for repayment of the obligation to the United States accruing from the concessional sale of United States agricultural commodities by the use of funds from the sale of such commodities in the participating country for specified development purposes shall be called a Food for Development Program.

(b) The overall goal of assistance under this title shall be to increase the access of the poor in the recipient country to a growing and improving food supply through activities designed to improve the production, protection, and utilization of food, and to increase the well-being of the poor in the rural sector of the recipient country. Assistance under this title shall be used for programs of agricultural development, rural development, nutrition, health services, and population planning, and the program described in section 406 (a) (1) of this Act, in those countries which are undertaking (or are seriously prepared to undertake in connection with the provision of agricultural commodities under this Act) self-help measures to increase agricultural production, improve storage, transportation, and distribution of commodities, and reduce population growth in accordance with section 109 of this Act, when such programs are directed at and likely to achieve the policy objectives of sections 103 and 104 of the Foreign Assistance Act of 1961 and are consistent with the policy objectives of this Act. Particular emphasis should be placed on activities which effectively assist small farmers, tenants, sharecroppers, and landless agricultural laborers, by expanding their access to the rural economy through services and institutions at the local level, and otherwise providing opportunities for the poor who are dependent upon agriculture and agriculturally related activities to better their lives through their own efforts. (7 U.S.C. 1727.)

SEC. 302.28a (a) Whenever the President, in consultation with the government of a developing country, determines that such develop

27 Secs. 301 through 307 were added by Sec. 211 of the International Development and Food Assistance Act of 1977, P.L. 95-88, 91 Stat. 548, Aug. 3, 1977, which also redesignated the original Secs. 301, 302, and 303 as Secs. 308, 309, and 310, respectively. The original Secs. 304-308 were repealed by the Food for Peace Act of 1966, P.L. 89-808, 80 Stat. 1535, Nov. 11, 1966.

28 See footnote 27.

28 See footnote 27.