Sec. 2181. 2182. 2183. Subpart 111-Investment Guaranties General authority. (a) Private enterprise participation; authorization to issue guaranties; project approval by President. (b) Eligibility; risks guaranteed; maximum amount of guaranties. (c) Limitation on amount and term of guaranty. (d) Protection of United States interests. General provisions. (a) Fees; determination by President; reduction. (b) Availability of fees. (c) Computation of total face amount of guaranties outstanding. (d) Payments to discharge liabilities under guaranties. (e) Guaranties as contingent obligations backed by full faith and credit of United States; reserve for payment of claims. (f) Authorization of appropriations. (g) Effect of investment upon balance of payments. Definitions. 2201. 2211. 2212. Subpart V.-Development Research Subpart VI.-Alliance for Progress General authority. (b) Assistance for development of human and (c) Waiver of loan requirements; transfer of (d) Assistance in fostering agrarian reform. (f) Assistance from departments and agencies to Authorization for appropriations; request for au- 2213. Receipts from loans to be available for use as loans. 2313. Utilization of assistance; construction of public works and other activities helpful to economic development. 2314 Furnishing of defense articles on grant basis. (a) Conditions of eligibility. 2315. 2316. 2317. 2318. 2319. 2320. 2321. (b) Limitation on amount; exceptions. (c) Reduction and termination of grants to countries able to maintain adequate military forces without undue economic strain. (d) Eligibility for assistance to terminate upon usage of articles or services by recipient country contrary to provisions of sections 2311-2320. Sale of defense articles and services; manner of payment; value of excess defense articles; contracts for procurement. Reimbursements. Exchanges and guaranties. Special authority; orders for defense articles and services; limitation; notice to Congress; obligations in anticipation of reimbursements; authorization of appropriations. Restrictions on military aid to Latin America. Restrictions on military aid to African countries. Certification of recipients' capabilities; reports to Congressional committees. SUBCHAPTER III-GENERAL AND ADMINISTRATIVE 2351. 2352. 2353. 2354. 2355. PROVISIONS PART I. GENERAL PROVISIONS Encouragement of free enterprise and private par ticipation. (a) Policy of United States. (b) Action by President to facilitate participation to maximum extent. (c) Advisory Committee on Private Enterprise in Foreign Aid. (d) Engineering and professional services of United States firms. Small business. (a) Assistance for participation in furnishing of commodities, defense articles, and services. (b) Office of Small Business. (c) Information with respect to certain purchases by Department of Defense. Shipping on United States vessels. Procurement. (a) Use of funds outside United States. (b) Purchases in bulk. (c) Surplus agricultural commodities. (d) Marine insurance. Retention and use of commodities and defense articles; disposal to prevent spoilage or wastage or to conserve usefulness; reversion of funds; commodities transferred as repayment of assist ance. 2368. 2369. 2370. for winding up programs. Use of settlement receipts. Assistance to newly independent countries. (b) Presidential determination of domination (c) Indebtedness of foreign country to United States citizen or person. (d) Productive enterprises competing with United States enterprise; conditions on assistance; import controls; waiver of restriction by President. (e) Nationalization, expropriation or seizure of property of United States citizens, or taxation or other exaction having same effect; failure to compensate or to provide relief from taxes, exactions, or conditions; report on full value of property by Foreign Claims Settlement Commission; act of state doctrine. (f) Prohibition against assistance to Communist countries; conditions for waiver of restriction by President; enumeration of Communist countries. (g) Use of assistance funds to compensate owners for expropriated or nationalized property. (h) Regulations and procedures to insure aid is not used contrary to the best interests of the United States. (1) Denial of assistance to countries preparing for aggressive military efforts. (j) Indonesia to receive assistance if essential to national interest of United States; reports to Congress. Sec. 2370. 2381. 2382. Prohibitions against furnishing assistance.-Con. (k) Maximum amount of assistance to individual countries. (1) Institution of investment guaranty program. (m) Grants to nations able to sustain burden of defense and economic growth. PART II.-ADMINISTRATIVE PROVISIONS Exercise of functions; delegation by President; rules and regulations; utilization of goods and services from private enterprise, and facilities and resources of Federal agencies when not competitive with private enterprise. Coordination with foreign policy. (a) Powers or functions of Secretary of State. (b) Coordination among representatives of United States. (c) Responsibility for supervision and general direction of assistance programs. 2383. Secretary of Defense; responsibilities; priorities in procurement, delivery, and allocation of military equipment. 2384. Statutory officers. (b) Rate of compensation; title of officers; or- (c) Appointment of certain statutory officers to comparable positions. (d) Additional appointments; transfer of personnel, property, records, and funds of office of Inspector General and Comptroller; duties and responsibilities of Inspector General; access to records; suspension of projects or operations; expenses. 2385. Employment of personnel. (a) Authorization. (b) Appointments excepted from civil-service laws; supergrade positions; reinstatement. (c) Additional supergrade positions. (d) Employment or assignment of officers and employees to perform functions outside United States. (e) Standards or other criteria for maintenance of adequate performance levels for personnel. (f) Funds for personnel services. (g) Competency in foreign languages. (h) Acceptance of compensation or other benefits from foreign countries; arrangements for reimbursement. (1) Assignment based on competency. (j) Inter-American Committee representative. 2386. Experts, consultants, and retired officers. 2393. Waiver of certain laws. 2394. Reports and information. 2395. (a) Report to Congress; information on operation of investment guaranty program, and on the progress of the freedom of navigation and nondiscrimination declaration. (b) Publicity of information concerning operations and loans from Development Loan Fund. (c) Requests by General Accounting Office and Congressional Committees for documents and other materials. (d) Notification of Congressional Committees; comparison of current fiscal year programs with those of previous year. (e) Recommendations to Congress. General authorities. (a) Manner of furnishing assistance; emphasis on loans. (b) Authority of the President. (c) Utilization of services and facilities of voluntary, nonprofit organizations. (d) Acceptance of gifts, devises, bequests, grants, etc. (e) Health and accident insurance for foreign participants. (f) Admission of alien participants. (g) Powers and authorities of the President with respect to loans. (h) Term of contracts and agreements. (1) Settlement and arbitration of claims arising under investment guaranty operations. (1) Financial transactions with foreign governments; exemption. (k) Cost-type contracts with educational institutions; payment of reimbursable indirect costs. 2396. Availability of funds. 2397. 2398. 2401. 2402. 2403. (a) General expenditures. (b) Compensation, allowances, and travel of personnel; printing and binding; expenditures outside United States. (c) Construction of living quarters, office space, and supporting facilities. (d) Education of dependents. (e) Training costs. (f) Assistance in carrying out functions under certain laws. (g) Administrative, extraordinary, and operating expenses; reimbursement of military officers; training of foreign military personnel. (h) Recipient countries to contribute local currencies; utilization of foreign currencies owned by United States. Administrative expenses. Definitions. 2404. Unexpended balances. 2405. Separability of provisions. 2406. Development programs for dependable fuel supplies. 2407. Special authorization for use of foreign currencies. SUBCHAPTER I.-INTERNATIONAL DEVELOPMENT PART I.-DECLARATION OF POLICY § 2151. Congressional statement of policy. It is the sense of the Congress that peace depends on wider recognition of the dignity and interdependence of men, and survival of free institutions in the United States can best be assured in a worldwide atmosphere of freedom. To this end, the United States has in the past provided assistance to help strengthen the forces of freedom by aiding peoples of less developed friendly countries of the world to develop their resources and improve their living standards, to realize their aspirations for justice, education, dignity, and respect as individual human beings, and to establish responsible governments. The Congress declares it to be a primary necessity, opportunity, and responsibility of the United States, and consistent with its traditions and ideals, to renew the spirit which lay behind these past efforts and to help make a historic demonstration that economic growth and political democracy can go hand in hand to the end that an enlarged community of free, stable, and self-reliant countries can reduce world tensions and insecurity. It is the policy of the United States to strengthen friendly foreign countries by encouraging the development of their free economic institutions and productive capabilities, and by minimizing or eliminating barriers to the flow of private investment capital. It is the sense of the Congress that the institution of full investment guaranty programs under sections 2181-2184 of this title with all recipient countries would be regarded as a significant measure of self-help by such countries improving the climate for private investment both domestic and foreign. In addition, the Congress declares that it is the policy of the United States to support the principles of increased economic cooperation and trade among countries, freedom of the press, information, and religion, freedom of navigation in international waterways, and recognition of the right of all private persons to travel and pursue their lawful activities without discrimination as to race or religion. The Congress further declares that any distinction made by foreign nations between American citizens because of race, color, or religion in the granting of, or the exercise of, personal or other rights available to American citizens is repugnant to our principles. In the administration of all parts of this chapter these principles shall be supported in such a way in our relations with countries friendly to the United States which are in controversy with each other as to promote an adjudication of the issues involved by means of international law procedures available to the parties. Accordingly, the Congress affirms it to be the policy of the United States to make assistance available, upon request, under this subchapter in scope and on a basis of long-range continuity essential to the creation of an environment in which the energies of the peoples of the world can be devoted to constructive purposes, free of pressure and erosion by the adversaries of freedom. It is the sense of the Congress that assistance under this subchapter should be complemented by the furnishing under any other Act of surplus agricultural commodities and by disposal of excess property under this chapter and other Acts. Also, the Congress reaffirms its conviction that the peace of the world and the security of the United States are endangered so long as international communism continues to attempt to bring under Communist domination peoples now free and independent and to keep under domination peoples once free but now subject to such domination. It is, therefore, the policy of the United States to continue to make available to other free countries and peoples, upon request, assistance of such nature and in such amounts as the United States deems advisable and as may be effectively used by free countries and peoples to help them maintain their freedom. Assistance shall be based upon sound plans and programs; be directed toward the social as well as economic aspects of economic development; be responsive to the efforts of the recipient countries to mobilize their own resources and help themselves; be cognizant of the external and internal pressures which hamper their growth; and shall emphasize long-range development assistance as the primary instrument of such growth. It is the sense of Congress that in the administration of these funds great attention and consideration should be given to those countries which share the view of the United States on the world crisis and which do not, as a result of United States assistance, divert their own economic resources to military or propaganda efforts, supported by the Soviet Union or Communist China, and directed against the United States or against other countries receiving aid under this chapter. The Congress further declares that in the administration of programs of assistance under this chapter, the highest practicable emphasis should be given to: programs providing for loans or loan guarantees for use by institutions and organizations in making repayable low-interest rate loans to individuals in friendly foreign countries for the purchase of small farms, the purchase of homes, the establishment, equipment and strengthening of small independent business concerns, purchase of tools or equipment needed by individuals for carrying on an occupation or a trade, or financing the opportunity for individuals to obtain practical education in vocational and occupational skills, and to those programs of technical assistance and development which will assist in carrying out and in preparing a favorable environment for such programs. While recognizing that special requirements, differing development needs and political conditions in various assisted countries will affect the priority of such programs and of each country's relative ability to implement them, it is further the sense of Congress that each such assisted country should be encouraged to give adequate recognition to such needs of the people in the preparation of national development programs. The Congress reaffirms its belief in the importance of regional organizations of free peoples for mutual assistance, such as the North Atlantic Treaty Organization, the Organization for Economic Cooperation and Development, the European Economic Community, the Organization of American States, the Colombo Plan, the South East Asia Treaty Organization, the Central Treaty Organization, and others, and expresses its hope that such organizations may be strengthened and broadened, and their programs of self-help and mutual cooperation may be made more effective in the protection of the independence and security of free people, and in the development of their economic and social well-being, and the safeguarding of their basic rights and liberties. It is the sense of the Congress that, in the administration of programs of assistance under sections 2161-2213 of this title, every possible precaution should be taken to assure that such assistance is not diverted to short-term emergency purposes (such as budgetary purposes, balance-ofpayments purposes, or military purposes) or any other purpose not essential to the long-range economic develoment of recipient countries. The Congress urges that all other countries (including private enterprise within such countries) able to contribute join in a common undertaking to meet the goals stated in this subchapter. In particular, the Congress urges that other industrialized free-world countries increase their contributions and improve the forms and terms of their assistance so that the burden of the common undertaking, which is for the benefit of all, shall be equitably borne by all. It is the sense of Congress that, where feasible, the United States Government invite friendly nations to join in missions to consult with countries which are recipients of assistance under this subchapter on the possibilities for joint action to assure the effective development of plans for the economic development of such recipient countries and the effective use of assistance provided them; and that the President may request the assistance of international financial institutions in bringing about the establishment of such missions. It is the sense of the Congress that assistance authorized by this chapter should be extended to or withheld from the government of South Vietnam, in the discretion of the President, to further the objectives of victory in the war again1 communism and the return to their homeland of Americans involved in that struggle. (Pub. L. 87-195, pt. I, § 102, Sept. 4, 1961, 75 Stat. 424; Pub. L. 87-565, pt. I, § 101, Aug. 1, 1962, 76 Stat. 255; Pub. L. 88-205, pt. I, § 101(c), Dec. 16, 1963, 77 Stat. 379.) REFERENCES IN TEXT "This chapter", referred to in the text, was in the original "this Act", meaning Pub. L. 87-195, which enacted this chapter and sections 1613d and 1945 of this title, amended sections 276, 279a, 1041, 1112, 1136, 1148, 1157, 1754, 1783, 1925, 1951 and 1964 of this title, section 1704 of Title 7, Agriculture, and sections 1651 and 1701 of Title 42, The Public Health and Welfare, enacted provisions set out as notes under this section and sections 276, 1613d and 1925 of this title, and repealed sections 1750, 1750a, 1750b-1753a, 1755-1759, 1760, 1761-1765, 1766a-1766c, 1767a, 1768, 1781, 1782, 17841795, 1797, 1811, 1812-1817, 1841, 1851, 1852, 1854, 1870, 1871-1876, 1891-1896, 1897, 1920, 1921, 1923, 1924, 1926, 1927, 1929, 1931, 1933, 1935, 1936, 1939-1940a, 1941, 2051-2053, 2071 and 2072 of this title, Reorganization Plan No. 7 of 1953, formerly set out as a note under section 1785 of this title, and section 133z-15 of Title 5, Executive Departments and Government Officers and Employees, and provisions set out as notes under sections 1753, 1783, 1922, 1928b, 1939, and 1951 of this title. 1 So in original. Probably should be "against." AMENDMENTS 1963-Pub. L. 88-205 declared that institution of full investment guaranty programs with all recipient countries would be regarded as a significant measure of selfhelp by such countries improving investment climate, that assistance to maintain freedom from communism "shall" rather than "should" emphasize long-range development, that in the administration of programs of assistance, every precaution be taken to assure that assistance is not diverted to any short-term emergency purpose or any purpose not essential to long-range economic development, that other industrialized free-world countries increase their contributions and assistance to more equitably share the burden, and the President should in his discretion, extend or withhold assistance from South Vietnam to further victory and the return home of Americans involved in the struggle there. 1962-Pub. L. 87-565 declared distinctions made by foreign nations between American citizens because of race, color, or religion, relating to rights available to such citizens, to be repugnant to our principals, required in the administration of these funds, that consideration be given those countries sharing our world views and which do not divert their resources to military or propaganda efforts, supported by the Soviet Union or Communist China, against the United States or countries receiving aid under this chapter, that the highest emphasis be given to programs for loans or loan guarantees for use by organizations in making low-interest loans to individuals in friendly countries for the purchase of small farms, purchase of homes, aiding or establishing small businesses, purchase of tools and equipment for an occupation or trade, or to obtain practical education in vocational skills, and to programs of technical assistance and development, each assisted country should be encouraged to recognize needs of the people in the preparation of national development programs, and declared that friendly nations are to be invited, where possible, to join in missions to consult with countries receiving assistance on the possibilities of joint action to assure effective development of economic development plans and effective use of assistance provided them, and that the President may request international financial institutions to assist in establishing such missions. SHORT TITLE OF 1964 AMENDMENT Section 1 of Pub. L. 88-633, Oct. 7, 1964, 78 Stat. 1009. provided: "That this Act [which enacted sections 2177, 2321, and 2407 of this title, amended sections 276, 1754, 2161, 2172, 2174, 2176, 2181, 2184, 2192, 2212, 2222, 2242, 2261, 2311, 2312, 2315, 2317, 2318, 2320, 2351, 2362, 2370, 2385, 2386, and 2397 of this title, and enacted provisions set out as a note under this section] may be cited as the 'Foreign Assistance Act of 1964"." SHORT TITLE OF 1963 AMENDMENT Section 1 of Pub. L. 88-205 provided that: "This Act [enacting sections 816, 1138a, 2216, 2320, and 2398 of this title, and section 170u of Title 5, Executive Departments and Government Officers and Employees, amending this section and sections 961, 1136, 1139, 1928a, 1943, 2161, 2162, 2172, 2174, 2181, 2182, 2184, 2201, 2211-2213, 2222, 2242, 2261, 2312, 2313, 2318, 2319, 2351, 2361, 2362, 2370, 2381, 2384, 2386, 2391, 2395-2397, 2403, and 2404 of this title, sections 1701, 1705, 1706, and 1722 of Title 7, Agriculture, and section 1861 of Title 19, Customs Duties, enacting provisions set out as notes under this section and section 1942 of this title, and section 1706 of Title 7, and repealing provisions set out as notes under this section and section 2301 of this title], may be cited as the 'Foreign Assistance Act of 1963'." SHORT TITLE OF 1962 AMENDMENT Section 1 of Pub. L. 87-565 provided that Pub. L. 87-565, which enacted sections 2211-2213 of this title, amended section 170g of Title 5, Executive Departments and Government Officers and Employees, this section, and sections 276, 2161, 2171, 2172, 2181, 2182, 2184, 2192, 2222, 2242, 2261, 2271, 2314, 2315, 2318, 2360, 2361, 2368, 2370, 2381, 2384, 2385, 2389, 2394, 2395,2397, 2402-2404, and 2452 of this title, repealed section 2173 of this title, enacted provisions set out as a note under section 2452 of this title, and repealed Part IV of the Foreign Assistance Act of 1961, which repeal shall not be deemed to affect amendments contained in such Part, may be cited as the "Foreign Assistance Act of 1962." SHORT TITLE Section 1 of Pub. L. 87-195, as added by Pub. L. 87-329, title I, § 111, Sept. 30, 1961, 75 Stat. 719, provided: "That this Act [enacting this chapter and sections 1613d and 1945 of this title, amending sections 276, 279a, 1041, 1112, 1136, 1148, 1157, 1754, 1783, 1925, 1951 and 1964 of this title, section 1704 of Title 7, Agriculture, and sections 1651 and 1701 of Title 42, The Public Health and Welfare, enacting provisions set out as notes under this section and sections 276, 1613d and 1925 of this title, and repealing sections 1750, 1750a, 1750b-1753a, 1755-1759, 1760. 1761-1765, 1766a-1766c, 1767a, 1768, 1781, 1782, 1784-1795, 1797, 1811, 1812-1817, 1841, 1851, 1852, 1854, 1870, 18711876, 1891-1896, 1897, 1920, 1921, 1923, 1924, 1926, 1927, 1929, 1931 1933, 1935, 1936, 1939-1940a, 1941, 2051-2053, 2071 and 2072 of this title, Reorganization Plan No. 7 of 1953, formerly set out as a note under section 1785 of this title and section 133z-15 of Title 5, Executive Departments and Government Officers and Employees, and provisions set out as notes under sections 1753, 1783, 1922, 1928b, 1939 and 1951 of this title] may be cited as "The Foreign Assistance Act of 1961'." REPEALS Section 101 of Pub. L. 87-195 which provided that this subchapter should be cited as the "Act for International Development of 1961" was repealed by section 101(b) of Pub. L. 88-205. Section 642 of Pub. L. 87-195 provided that: "(a) There are hereby repealed "(1) Reorganization Plan Numbered 7 of 1953 [formerly set out as a note under section 1785 of this title and under section 133z-15 of Title 5, Executive Departments and Government Officers and Agencies]. "(2) the Mutual Security Act of 1954, as amended [chapter 24 of this title] (except sections 143, 402, 405(a), 405(c), 405(d), 408, 414, 417, 451(c), 502(a), 502(b), 514, 523 (d), and 536 [sections 1853, 1922, 1925 (a), 1925 (c), 1925 (d), 1928, 1934, 1937, 1951(c). 1754 (a), (b), 1766, 1783 (d) and 1796 of this title]): Provided, That until the enactment of legislation authorizing and appropriating funds for activities heretofore carried on pursuant to sections 405(a), 405(c). 405 (d), and 451 (c) of the Mutual Security Act of 1954, as amended (sections 1925 (a), 1925 (c), 1925(d), and 1951 (c) of this title], such activities may be continued with funds made available under section 451(a) of the Act [section 2261(a) of this title]; "(3) section 12 of the Mutual Security Act of 1955 [formerly set out as a note under section 1811 of this title]; "(4) sections 12, 13, and 14 of the Mutual Security Act of 1956 [section 1870 of this title and notes formerly set out under sections 1753 and 1939 of this title]: "(5) section 503 of the Mutual Security Act of 1958 [section 1750a of this title]; "(6) section 108 of the Mutual Security Appropriation Act, 1959 [formerly set out as a note under section 1922 of this title]; "(7) section 501(a), chapter VI, and sections 702 and 703 of the Mutual Security Act of 1959, as amended [sections 1941, and 2051-2053 of this title and notes formerly set out under sections 1928b and 1951 of this title]; and "(8) section 604 and chapter VII of the Mutual Security Act of 1960 [sections 2071 and 2072 of this title and note formerly set out under section 1783 of this title]. "(b) References in law to the Acts, or provisions of such Acts, repealed by subsection (a) of this section shall hereafter be deemed to be references to this Act or appropriate provisions of this Act. "(c) The repeal of the Acts listed in subsection (a) of this section shall not be deemed to affect amendments contained in such Acts to Acts not named in that subsection." |