PROVIDING FOREIGN ECONOMIC AND HUMANITARIAN ASSISTANCE AUTHORIZATION, 1972

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP73B00296R000400170004-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 51
• Document Creation Date: December 9, 2016
• Document Release Date: September 7, 2000
• Sequence Number: 4
• Publication Date: November 8, 1971
• Content Type: REPORT

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Calendar No. 425
92D CONGRESS SENATE
1st Session
REPORT
No. 92-432
PROVIDING FOREIGN ECONOMIC AND HUMANITARIAN
ASSISTANCE AUTHORIZATION, 1972
Mr. FULBRIGIT, from the Committee on Foreign Realtions,
submitted the following
REPORT
together with
SUPPLEMENTAL VIEWS
[To accompany S. 2820]
The Committee on Foreign Relations, having had under considera-
tion the authorization of appropriations for fiscal year 1972 for foreign
assistance, reports the bill (S. 2820), to provide foreign economic and
humanitarian assistance authorizations for fiscal year 1972, and for
other purposes, and recommends that it do pass.
1. PRINCIPAL PURPOSE OF THE BILL
The principal purpose of the bill is to authorize funds for fiscal year
1972 for certain economic and humanitarian foreign assistance pro-
grams carried out under the Foreign Assistance Act of 1961, as
amended. This is an interim bill to allow continuation of the bilateral
programs at a significantly reduced rate from current operations
pending enactment of a new and drastically revised foreign assistance
program in the next session of Congress. The bill authorizes total
appropriations of $1,144,000,000. Of this amount, $695,000,000 is for
bilateral economic assistance programs and administrative expenses
for the Agency for International Development, and $449,000,000 is
for humanitarian and multilateral assistance.
In addition, the bill also makes a number of substantive changes
in the Foreign Assistance and other acts.
The following tables provide information concerning the programs
for which appropriations are to be authorized by this bill:
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TABLE 1.-BILATERAL FOREIGN ECONOMIC ASSISTANCE AUTHORIZATIONS AND COMPARATIVE DATA
fin thousands of dollars]
Development loans (worldwide)______________________________
Technical assistance (worldwide)___________________
Alliance for Progress------ -------------------- ----------
Loans
G rants
---
Administrative expenses:AlD______________________-___ _ __
Fiscal year
1971
$420,000
166, 800
370,400
(287, 500)
(82, 900)
51, 000
Senate
Requested committee
fiscal year, recommendation,
1972 fiscal year 1972
$400, 000 $250, 000
231,300 175,000
364, 000 225, 000
235, 000) (150, 000)
129, 000) ) (75, 000)
57,600 45,000
ist
izati Developme ntration
autho
loans, $1,500,000,000 atechuthonicalriassistanczation
$35,000,000. grams,
and Amer canoschoolshand Ihospitalsrabroad:
TABLE II.-AUTHORIZATIONS FOR INTERNATIONAL HUMANITARIAN AND MULTILATERAL ASSISTANCE
fin thousands of dollars]
Committee
Fiscal recommen-
year 1971 dation, fiscal
estimated year 1972
I. International organizations:
U.N.development program
$86,268 $90,D65
UU,N.N, . ppChildren's
opulation pFund __m --------------------------------------------------- 13,000 15,000
____________________________----_ i
U,N.fundterdrug abuse control ---------- 7,500 7,500
_____________ 2,000 2,000
International Atomic Energy Agency, operational program_____________________ 1,550 1,550
World Meteorolgical Organization, voluntary assistance program_______1,500 1,500
U.N./FAOworld food program --------------------------------------------- 1,500 1,500
U.N. Institution for Training and Research______________ 400 400
World Health Organization, medical research____________________________ 150 312
International Secretariat for Voluntary Service______________
----------- 70 73
Special Vietnam _____-___________________________- 950 ________ 1__4_30_0
U.N. Relief and Works Agency ----------- z 14,300 ,
U.N. Force in Cyprus -------------------- - 6,000 4:800
II. Other otorzationsdrelatedprograms________________________________ 135,188 139,000
Indus Basin grants ------------------------------------------------------- 4,900 15,000
Pakistan refugee relief _______ab____--------------------------------------------------- 250,000
American schools and hospitals road--- 22,500 15,000
Contingency fund -------------------------------------------------------- 22,500 30,D00
Total humanitarian and multilateral assistance ---------------------------- 175,488 449,000
r Includes $4,000,000 from development loans for population program under title X.
Funded from supporting assistance.
2. OTHER, PURPOSES OF THE BILL
In addition to authorizing appropriations as detailed, the bill also
does the following:
1. Calls for shifting more of our economic aid to a multilateral
basis and requires a phasing-out of the bilateral loan program.
2. Ties the release of funds appropriated for foreign aid and military
sales funds to prior release of impounded funds for domestic programs.
3. Provides for annual authorization of appropriations for the
Department of State and the United States Information Agency.
4. Authorizes $125,000,000 for population control activities.
5. Authorizes operations by the Overseas Private Investment
Corporation in Yugoslavia and Romania.
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6. Suspends all assistance and military sales to Pakistan, except
humanitatian relief. The President must make certain findings before
aid could be resumed.
7. Tightens the Hickenlooper amendment relating to prohibitions
on assistance to countries which expropriate American-owned property
without fair compensation.
8. Authorizes assistance for purposes of controlling the international
drug traffic and provides for a cutoff in assistance to countries which
do not take adequate steps to control the production, processing, and
distribution of drugs.
9. Authorizes the equivalent of $10 million in excess Egyptian
pounds for assisting in reopening the Suez Canal.
10. Calls upon the President to take appropriate action to bring
about a reduction of the United States regular assessments for the
United Nations to not more than 250/0 of the total U.N. budget.
11. Requires annual authorization of U.S. contributions to United
Nations programs.
3. BACKGROUND AND COMMITTEE ACTION
The 1968 foreign assistance act contained a provision, sponsored by
Senator Javits, which called on the President to make a thorough re-
view of all foreign assistance programs and submit his recommenda-
tions to Congress by March 31, 1970. On September 29, 1969, President
Nixon appointed a task force to study the matter and the task force
reported back to him on March 4, 1970. The President sent a message
to Congress on September 15, 1970 containing his broad recommenda-
tions for a revised foreign aid program. However, the draft legislation
to implement his policy recommendations was not submitted to Con-
gress until April 21, 1971. Two bills, embodying the President's
legislative requests, S. 1656 and S. 1657, were introduced by Senator
Fulbright, by request, on April 26, 1971. The Committee held hearings
on the bills on June 10, 11, and 14.
Executive sessions on H.R. 9910, the foreign aid bill passed by the
House, were held on September 28, 29, October 5, 6, 13, 14, and N.
H.R. 9910 was reported to the Senate on October 21, 1971 and was
debated on October 26, 27, and 28. On October 29 the bill was de-
feated by a vote of 27 yeas to 41 nays.
The Committee met in executive session on November 1 to discuss
further action on foreign aid legislation. It heard Secretary of State
William P. Rogers and Dr. John A. Hannah, Administrator of the
Agency for International Development, in executive session, on
November 3. On November 4 the Committee, by a vote of 15 to 0,
decided to report this interim, stop-gap measure to the Senate, along
with a second bill to authorize military and related aid.
4. COMMITTEE COMMENTS
Reports by the Committee on Foreign Relations on foreign aid bills
over the last several years reveal the depth of dissatisfaction of many
members with the existing foreign aid program. In 1967 the Commit-
tee report on the aid bill stated:
Many members felt that there was inadequate justifica-
tion for continuing foreign aid at approximately the same
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level as the last fiscal year in view of mounting war costs
and the Government's worsening fiscal situation. Others be-
lieved that drastic changes were needed in the foreign aid
program, and that it had been oversold as a cureall, both
at home and abroad. Some viewed the aid program as tend-
ing to involve the United States unnecessarily in the polit-
ical and social affairs of other countries, making it more likely
that the United States would in the future find itself involved
in more Vietnams. Perhaps the most common attitude among
members was the feeling that foreign aid policy has not
kept pace with a changing world and that all to often
dollars were applied in an attempt to serve as a substitute
for sound policies.
In 1968 the Committee stated :
The committee acted on the foreign aid bill this year
against a background of growing concern over the inter-
national posture of the United States and over the problems
which the American people face at home. With respect to
the former, the committee has seen nothing in the past year
to allay the unease which it has frequently expressed over
the proliferation of aid programs and the seeming inability or
unwillingness of the United States to reduce its international
commitments. With respect to the latter, the committee is
persuaded that the United States cannot longer postpone
giving priority to putting its own house in order. Over both
the foreign and domestic problems of the United States hang
the fiscal and balance-of-payments crises which have been
alleviated but not solved, and which fundamentally result
from overcommitment, both at home and abroad, and from
efforts to spread available resources too thinly.
In 1969 the Committee report put the basic problem this way:
All members of the committee are acutely aware that the
richest Nation in the world has an obligation to help close
the widening gap between the "haves" and the "have nots" of
the world. The issue is not "Should we provide aid?" It is
"How?" and "How much?" The first question must be an-
swered before the second can be approached sensibly-and
the old answers of the past to "How?" are outmoded and dis-
credited. The future of foreign aid is bleak indeed until it new
program can be developed which will command greater re-
spect and support, both with the public and the Congress,
than the current programs commands.
At the time the 1969 report was filed the Committee hoped that the
President's recommendations, to be submitted pursuant to Senator
Javits' amendment, would be submitted in time to work out it new
program during 1970. Instead, his recommendations were not received
until more than a year after the date specified by law.
The Committee has for years stressed that the United States is over-
committed around the world. The foreign aid program is one of the
most obvious manifestations of that overcommitment. As of June this
year there were it total of 26,663 people working in connection with
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the regular economic and military aid programs authorized under the
Foreign Assistance Act. There were 8,936 Americans abroad engaged
in U.S. foreign aid activities, compared with a total of 6,145 for all
Department of State personnel overseas. The Committee has taken
action which should lead to substantial reductions in the number of
foreign aid personnel. Most of the non-Communist world is slated to
receive some type of foreign aid from the United States in FY 1972.
Forty-five countries are to receive technical assistance, 31 to get sup-
porting assistance (24 for public safety programs only), 46 to get
military grant aid, 85 to get Public Law 480 assistance, 43 slated for
military sales (18 for credit), and 55 are to receive assistance through
the Peace Corps.
The President has recognized that foreign aid must bear a share of
the price that must be paid to restore the health of our economy. In his
speech to the nation on August 15 he announced that he had ". . or-
dered a 10% cut in foreign economic aid." The details of how the cut
is to be applied have not been revealed, other than the announcement
of an exemption for Latin America. The Committee supports the Pres-
ident's initiative and has taken further action to insure that foreign
aid programs for FY 1972 reflect, at least to some extent, the urgency
of the times.
The defeat of H.R. 9910 by the Senate was obviously the result of
a number of factors. One of those was the fact that, traditionally,
authorizations for foreign economic development, humanitarian, and
military programs have been lumped into one bill, forcing members of
the Senate to take-or reject-the bad with the good, according to
how they viewed each category. In the past this Committee has urged
passage of separate bills for economic and military assistance but has
failed to persuade the House of Representatives on the merits of
separating the two programs. The Committee last tried to separate
the economic and military programs in 1966. Its report on the economic
aid bill said this about the problem:
A majority of the committee believes that handling pro-
grams by separate bills will allow each to stand on its own
merits and that the public will gain a better understanding
of the distinctions between the two programs. It has been
argued that the economic aid program may be emasculated
by the Congress if military assistance is not a part of the
package. If the economic aid program is so distasteful to the
public and the Congress, it should not continue to have a
free ride on the back of military aid. Congress should have
the opportunity to consider the programs as a separate
measure and shape it to more acceptable proportions if it is
that unpopular.
The Committee has again decided to report two separate bills
which will permit Senators to weigh each major category of aid on its
own merits. No longer will any of the categories ride on the back of
another program. Each will stand or fall by itself.
The Committee wishes to make it clear that the authorizations it
has approved are for an interim program to begin the phase-out of
the old programs while the Committee works to develop a new foreign
assistance program next session, one that, hopefully, will command
the support of both Congress and the public.
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COST ESTIMATES
Section 252(a)(1) of the Legislative Reorganization Act of 1970
requires that committee reports on bills and joint resolutions contain:
"(A) an estimate, made by such committee, of the costs which would
be incurred in carrying out such bill or joint resolution in the fiscal
year in which it is reported and in each of the five fiscal years following
such fiscal year . "
This bill authorizes these assistance programs only through the
remainder of FY 1972 and it is intended as an interim, temporary
measure to bridge the gap until a new foreign aid program is formulated
next year. It is impossible to predict, at this time, the size or scope
of that new program.
The estimated cost for FY 1972 of the program to be authorized
by this bill is $1,144,000,000, plus funds to be derived from receipts,
reimbursements and recoveries.
This section states that the purpose of the bill is to provide an
interim measure to carry forward for fiscal year 1972 United States
bilateral and multilateral economic and humanitarian assistance pro-
grams authorized by the Foreign Assistance Act of 1961. As an interim
foreign aid measure this bill "looks to the phaseout of the current pro-
gram and to the establishment of a new one which will command the
respect and the support of Congress and the American people."
For a number of years the Committee has urged that an increasing
proportion of United States economic assistance be channeled through
multilateral organizations. It has emphasized in its reports on foreign
aid bills that the bilateral aid program has become discredited for a
variety of reasons, all of which make it an unacceptable method for
assisting the developing nations. This bill marks the beginning of a new
era for foreign aid.
TITLE I-BILATERAL ECONOMIC ASSISTANCE
SECTION 101-AUTHORIZATIONS
Subsection 101 (a) (1) -Development Loans
Section 101(a) (1) authorizes the appropriation of $250 million in
fiscal year 1972 for worldwide development lending.
Development loan program (excludes Alliance for Progress loans) :
1. Fiscal year 1970 appropriation_____________________________ $300,
000,
000
2.
Fiscal year 1971 appropriation_____________________________
420,
000,
000
3.
Fiscal year 1972 appropriation request-----------------------
400,
000,
000
4.
Committee recommendation: Fiscal year 1972---------------
250,
000,
000
Development loans provide part of the resources needed to support
the self-help efforts of recipient countries and underwrite the planning
and execution of their development programs. These loans finance the
commodities and technical services used for the construction of facili-
ties such as schools, clinics, roads, dams and irrigation facilities and
factories, and the import of a wide range of products such as fertilizer,
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farm equipment, chemical products, iron and steel products, motor
vehicles, industrial and electrical machinery, petroleum and other
products.
Most development loans to recipient governments are now made on
40-year terms, including a 10-year grace period. Interest rates are 2%
during the grace period and 3% thereafter. The minimum interest rate
will be revised by section 4(1).
Section 101(a) (2) -Technical Cooperation and Development Grants
Subsection 101(a) (2) authorizes an appropriation of $175,000,000
for fiscal year 1972 for worldwide technical assistance and development
grants.
Technical Assistance (worldwide) : $166,750,000
1. Fiscal Year 1970 appropriation-----------------
_ _ _ - _ _ _ _ _ - _ 166, 750, 000
2. Fiscal Year 1971 appropriation ------------------------
3. Fiscal Year 1972 authorization request - - - - - - - - - - - - - - - - - 231, 300, 000
4. Committee recommendation: $175,000,000
Fiscal Year 1972_________________________
The technical assistance program deals with the human side of the
development process. Skilled Americans from all parts of the country
join to work with people of the developing countries, to transfer the
knowledge and techniques to the developing countries.
The United States has pioneered in developing technical assistance
concepts and programs. Technical cooperation, as an organized govern-
mental activity, began in 1942 with the Institute of Inter-American
Affairs. The Point IV program, initiated by President Truman in his
inaugural address of 1949, challenged the American people to pool
their knowledge and energies with those of the peoples of the develop-
ing countries for the general betterment of mankind. These themes
were carried out in the 1950's by the Foreign Operations Administra-
tion and the International Cooperation Administration which were
followed in the 1960's by the Agency for International Development.
The major types of technical assistance are:
Research, helping solve development problems through re-
search and building institutional research capacity in the devel-
oping countries themselves;
Institution-building, helping developing countries establish new
institutions and improve existing ones;
Training, providing people with formal education, training in
particular skills, and experience in modern techniques, so that
they can contribute to development by using their new knowledge
and skills and passing them on to others;
Advisory technical services, providing the skilled manpower
needed to help developing countries adapt modern technology and
employ modern research methods to the solution of their devel-
opment problems.
Subsection 101 (a) (3) Alliance for Progress
This subsection authorizes appropriations for fiscal year 1972 of
$225,000,000 for the Alliance for Progress, of which not more than
$75,000,000 may be used for technical assistance grants.
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Limitations
Loans on grants Total
1. Fiscal year 1970 apprepriation____________________________ $225,000,000 $81,500,000 $336,500,000 37 375
3, Fiscal year 1972 appropriation: Request _________________________235 129,000,000 364 000,000
5. Committee recommendation: Fiscal year 1972_____________________ 150,000,000 75, 000,000 225 000,000
Subsection 101(a) (4) ,-Administrative Expenses.
This subsection amends section 637(a) of the Act to authorize the
appropriation of $45,000,000 for fiscal year 1972 for administrative
expenses of the Agency for International Development.
The Committee's decision to reduce A.I.D. administrative expenses
is in keeping with the concern it expressed in its report on the Foreign
Assistance Act of 1969:
The Committee is concerned about overstaffing in AID and
believes that AID should assume a much lower posture abroad
and at home. The committee believes that the massive AID
presence in so many countries is not in the best interests of
American foreign policy or an effective foreign aid program.
Although this reduction applies only to administrative personnel,
the Committee expects that appropriate steps will be taken to
reduce the size of the personnel rolls financed out of program
funds.
The Committee expects that the new aid program to be shaped
by Congress in the next session will require a very substantial reduction
in the number of personnel involved in assistance programs, both in
Washington and abroad. This reduced authorization will help expedite
the transition to a new approach to aid which will be less top heavy
with personnel.
Subsection 101 (c) -Reflow Authority
During fiscal year 1972 it is estimated that an additional
$192,385,000 will be available for lending purposes (including Alliance
for Progress loans) from repayment on loans made in prior years.
This subsection authorizes that up to $200 million is to be made
available from the dollar reflow from prior loans, made under either
the Foreign Assistance Act of 1961 or the Mutual Security Act of
1954. The funds made available by this subsection shall be used only
for development loans, and Alliance for Progress loans.
SUBSECTION 101(b)-Appropriations Pursuant to Foreign Assistance
Act of 1961
This subsection states that any appropriation made pursuant to
this act shall be governed by the applicable provisions of the Foreign
Assistance Act of 1961.
SECTION 102-DEVELOPMENT LOAN FUND
Subsection 102(1)-Interest rates on Development Loans
Subsection 102(1) requires that interest rates on development
loans, both worldwide and Alliance for Progress, not be either (1)
"excessive or unreasonable" or (2) less than interest charges on
official borrowings of comparable maturity paid by the Federal
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Government. This provision seeks to ensure that development loan
recipients pay interest at rates comparable to those paid on U.S.
Government borrowings.
Subsection 102(2)(A) repeals existing authority which permits
appropriations to be made on the basis of the balances remaining
from previous authorizations for development loans, Without this
restriction a total of $230 million, above the amounts authorized for
FY 1972 could otherwise be appropriated during this fiscal year on
the basis of balances from previous authorizations. The Committee
believes that if any of these funds were appropriated, it would serve
to negate the Committee's recommendation and it has, therefore,
repealed this authority.
Subsection 102(2) (B)-Encouraging Economic Development Through Pri-
vate Enterprise
Subsection 102 (2) (B) extends for FY 1972 the provision of existing
law which requires that not less than 50 percent of the funds appro-
priated for development lending shall be available for loans made to
encourage economic development through private enterprise.
Subsection 102 (2) (C) -Restrictions on Development Loans to South Korea
Subsection 102(2) (C) prohibits the use of proceeds from develop-
ment loans made to the Republic of Korea from being used to build
up its fishing fleet or its fish processing and marketing facilities. This
provision will help to ensure that the U.S. North Pacific fishing indus-
try is not placed at a competitive disadvantage vis-a-vis the South
Korean fishing industry by virtue of the latter being able to receive
"soft loans" from the United States.
Subsection 102 (3) (A) -Multilateral Programs
Subsection 102(3) (A) is designed to encourage the shift of a greater
proportion of United States bilateral aid to a multilateral basis. It
puts the Congress on record in favor of moving to internationalize
our bilateral aid program, to the extent feasible. It is consistent with
the President's announced policy. He stated in his September 15,
1970 message to Congress: "I propose that the United States channel
an increasing share of its development assistance through multilateral
institutions as rapidly as practicable." He said that "moving in this
direction holds the promise of building better relations between bor-
rowing and lending countries by reducing the political frictions that
arise from reliance on bilateral contracts in the most sensitive affairs
of nation-states."
In order to implement this policy, this provision requires that the
bilateral development loan program be phased out by not later than
June 30, 1975. And it authorizes the President to use any of the funds
appropriated for economic aid to be transferred to multilateral lending
institutions for lending purposes. If after 1975 an unusual situation
developed where the President felt that a bilateral loan was important
to the national interest-another British loan case, for example-he
can come to Congress and ask for a specific authorization. It does not
provide for phasing out the technical assistance program, although it
would permit transfer of technical assistance funds to the multilateral
organizations.
A majority of the members of the Committee on Foreign Relations
have long held the view that multilateral means of channeling the
S. Rept. 92-432 O-2
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foreign assistance efforts of the United States are superior to bilateral
methods. The Committee has been a strong and constant supporter of
international financial and development institutions. For example,
recently the Committee by votes of 14 to 1, 15 to 0, and 13 to 2 reported
favorably authorization for a total of $2 billion in additional con-
tributions to the International Development Association, the lnter-
American Development Bank, and the Asian Development Bank,
respectively. In contrast many of the major issues involved in the
bilateral aid bill, recently defeated by the Senate, were decided in
Committee by only the narrowest of margins.
The advantages of multilateral over bilateral aid were summarized
in this way by Under Secretary of the Treasury Charls Walker in
testimony before the Committee this year:
Here are some reasons why we think the multilateral ap-
proach is a sound one and worthy of our increasing support.
It permits each donor country to contribute according to its
financial strength with all countries contributing on the same
terms. It permits a pooling of: knowledge and expertise on
development problems which no single country can muster.
It provides for an allocation of assistance on the basis of
development needs, relatively free from political ties or com-
mercial factors, thereby minimizing political motivation for
assistance. These institutions are forums for bringing inter-
national influence to bear on donor countries, in connection
with their trade policies, and on recipient countries, to follow
generally acceptable development policies. They provide an
important force in favor of more open and less restricted na-
tional economies leading to a more effective use of externally
provided resources as well as a more rational allocation of re-
sources at home. And finally, they provide a shielding device
against undue reliance of any recipient on a particular source
of aid, an undue responsibility of any donor in support of a
particular recipient.
The President's Task Force on International Development (Peter-
son Commission) also urged that greater emphasis be placed on the
international organizations. It said:
The international organizations could roughly double their present
rate of lending----from $2.5 billion a year to $5 billion a year-over
the next several years while continuing to follow sound practices
and maintain high standards. This judgment takes into account
the capabilities of these organizations, the current international in-
vestment climate, the increasing availability of sound development
projects, better planning and performance in both public and private
sectors of the developing countries, and estimates of the level of
foreign investment and bilateral assistance.
The President's commission for the Observance of the Twenty-
Fifth Anniversary of the United Nations, the Lodge Commission,
also strongly recommended that increased emphasis be placed on
the multilateral agencies as a channel for U.S. development assistance.
The report stated:
"The Commission recommends that an increasing proportion of
U.S. technical assistance, official loans, and credits to the developing
nations of the world be channeled through the multilateral agencies
of the UN system.
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"The multilateral way makes contributions to the economic growth
of developing countries which are additional to what would other-
wise be contributed. Every dollar of input by the United States to
the UN Development Program helps to generate more than six dollars
of actual development work by other nations. Aid through multi-
lateral institutions has the added advantage of neutralizing the
political aspects of economic assistance and reducing the resentment
of some developing nations to bilateral programs."
Subsection 102(3) (A) (i) amends section 209(a) of the Foreign As-
sistance Act of 1961 to express Congress' strong support for the concept
of multilateral aid. It states Congress' support for increasing the pro-
portion of U.S. assistance to developing countries that should be chan-
neled through multilateral organizations. It also expresses Congress'
support. for undertaking measures that will help improve the com-
petency and capacity of the international organizations.
Subsection 102(3) (A) (ii) adds two new subsections to the revised
section 209.
The new subsection (c) requires that the bilateral loan program be
phased out by not later than June 30, 1975. During the phaseout period
the Committee intends that maximum use by made by the President
of the transfer authority available under the new subsection (d).
The new subsection (d) authorizes the President to transfer any
funds appropriated under Part I of the Foreign Assistance Act, the
economic assistance portion of the Act, to the International Develop-
ment Association, the International Bank for Reconstruction and
Development, the International Finance Corporation, the Asian De-
velopment Bank, or other multilateral lending or development institu-
tions for lending purposes. The institution must agree, when making
loans with the funds transferred, to take into account the same con-
siderations that the President must now consider under sections 201(b)
and (f), 207, and 208 of the Act. The funds could be transferred under
such other terms and conditions as the President may determine with-
out regard to restrictions applicable to development loans.
Subsection 102(3)(B) amends subsection 209(b) by striking out the
heading.
Subsection 102 (3) (C) repeals section 205 of the Act which authorized
the transfer of up to 10% of funds available for development lending
to certain multilateral institutions. This authority is superseded by
the expanded transfer authority authorized by subsection (3) (A) (ii) .
Subsection 102(3) (D) is a technical amendment to section 619 of
the Act.
Subsection 103(1) amends section 221 of the Act by increasing by
$50,000,000 the ceiling on the total authority for guaranty of housing
projects outside of Latin America. With this increase the total face
amount of housing guaranties that may be issued under section 221
will be $180,000,000.
The Committee believes that this increase will be more than suffi-
cient in view of the fact that only $32.5 million in guaranties had been
issued through March 31 of this year.
Subsection 103(2) amends section 223(1) of the Act to extend the
worldwide housing guaranty authority through June 30, 1973.
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SECTION 104-OVERSEAS PRIVATE INVESTMENT CORPORATION
Subsection 104(1) amends section 238(c) of the Act in order to per-
mit any group of U.S. investors holding 95 percent of the subscribed
share capital of a foreign corporation to qualify as eligible investors
for the purposes of participation in OPIC programs, Such investors
are currently eligible only if foreign law requires 5 percent of the
share capital to be held by their nationals or other foreign citizens.
Subsection 104(2) amends section 239 of the Act to add a new sub-
section (g) which authorizes the operation of programs by the Over-
seas Private Investment Corporation in any country if the President
determines that such operations of those programs in that country
would be in the. national interest.
The primary purpose of this provision is to authorize OPIC guar-
antees for investments by U.S. investors in Yugoslavia and Romania.
The Committee believes that this is a desirable goal and one which
could serve to improve our overall relations with the Communist
countries.
Subsection 104(3) extends the existing provisions of the Act relat-
ing to agricultural credit and self-help community projects through
June 30, 1973.
SECTION I05-AUTIIORIZATION FOR POPULATION PROGRAMS
Section 105 amends section 292 of the Act to authorize the use of
$125,000,000 of the appropriations to carry out programs under
Part I of the Foreign Assistance Act for population and family plan-
ning programs in fiscal year 1972.
The authorization of an increase in funding for population activities
follows past practice and emphasizes the Committee's concern over the
population growth problem. In FY 1970, Congress earmarked $75
million and in FY 1971 it set aside $100 million for this purpose. The
Committee believes this pattern of increasing emphasis should be main-
tained because of the critical importance of the problem.
Since it is estimated that the average number of women in the less
developed countries aged 20 to 29-the peak years of human fertility-
will increase by about one-third during the 1970s and two-thirds dur-
ing the 1980s, over the average number for the 1960s, every effort
should be made to extend family planning information and services
on a voluntary basis to couples in the developing countries. Unless
population growth rates in these countries are reduced, their popula-
tions will double in 20 to 30 years and their development efforts over
the next two decades will not result in any noticeable improvement in
individual standards of living.
The Committee is encouraged by the important role which the
United Nations, through the UN Fund for Population Activities, is
now playing in support of family planning and population programs
in the developing countries. Established by the Secretary-General in
1967 and transferred in 1969 to the UN Development Program, the
Population Fund expects to receive during calendar year 1971 nearly
$30 million in voluntary contributions from some thirty governments,
including the United States. The funds are to be used to supplement
the various national family planning programs and to strengthen
technical assistance and training provided through the United Nations
system. The Committee has long urged that a larger share of U.S.
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assistance in this field be provided to multilateral organizations like
the United Nations and the International Planned Parenthood Federa-
tion and hopes that a substantial portion of the funds earmarked for
population activities will be used regularly to support these inter-
national initiatives.
SECTION 106-PROHIBITIONS AGAINST FURNISHING ASSISTANCE
Subsection 106(1)-Expropriation of U.S. Property
Subsection 106(1) tightens section 620(e) of the Act (the Hicken-
looper Amendment) to require that all foreign assistance to any
country which expropriates or takes similar action against property
owned by the U.S. citizens and does not provide effective compensa-
tion shall be terminated at once and not resumed until fair compensa-
tion has been paid. There are cases on record of countries which have
expropriated American property and did not provide effective compen-
sation but which continued to receive foreign assistance from the
United States. Assistance continued to flow to these countries because
of the President's broad discretionary authority under the Hicken-
looper Amendment. This provision of the bill removes his discretionary
authority and brings our aid program to an end in any aid-receiving
country until full compensation is paid for the expropriated property.
Subsection 106(2)-New Prohibitions Against Furnishing Assistance-
Prisoners of War
This new subsection 620(v) prohibits any funds appropriated
pursuant to the Foreign Assistance Act from being made available
to any country which does not give full support to the provisions of
the 1949 Geneva Convention Relative to the Treatment of Prisoners
of War. The President is authorized to make the determination.
SUSPENSION OF ASSISTANCE TO PAKISTAN
The new subsection 620 (w) suspends all military, economic, and
other assistance to the Government of Pakistan, including sales of
military equipment and sales of agricultural commodities. The adop-
tion of this provision demonstrates the Committee's deep concern over
the repressive actions taken by the Government of Pakistan against
the people of East Pakistan. It is the Committee's view that, in the
current savage civil war between the western and eastern wings of
Pakistan, the United States should be benevolently neutral, giving aid
to neither side.
This suspension does not apply to the provision of food and other
humanitarian assistance when such assistance is coordinated, distrib-
uted, or monitored under international auspices. The Committee, in
authorizing $250,000,000 for refugee relief, adopted language designed
to stress the role of the international agencies and U.S. voluntary
agencies in the relief effort. That language states that relief assistance
" . shall be distributed to the maximum extent practicable, under
the auspices, of and by international institutions and relief agencies or
United States voluntary agencies."
The Committee expects that "humanitarian relief" will be construed
with a rule of reason with relieving human suffering as the objective.
But under no circumstances is the language to be used to justify
resumption of normal foreign aid activities under the guise of "humani-
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tarian relief." Neither should articles, such as trucks or boats, provided
for relief purposes be allowed to be diverted for military purposes.
The prohibition approved by the Committee is considerably more
strict than that contained in the bill as passed by the House of Rep-
resentatives. I t prohibits providing military services as well as ar-
ticles, guaranty of credit sales of military items as well as direct credit,
and it suspends all outstanding licenses relating to export of military
materials to Pakistan.
Under this provision no new loan agreements can be made, and
disbursements under existing loan agreements can be made only pur-
suant to outstanding irrevocable letters of credit. Technical assistance
contracts shall be terminated according to the termination provisions
of the contracts. Title I sales programs under P.L. 480 shall be ter-
minated, to the extent legally possible, except for those providing
for famine or disaster relief directly for the people of East Pakistan.
Other humanitarian relief under P.L. 480, Title II, could also be con-
tinued It is expected that the A.I.D. mission staff would be withdrawn
except for the personnel absolutely essential to winding up A.I.D.
programs in an orderly fashion. The term "other assistance" is in-
tended to prohibit any official U.S. action to suspend or postpone re-
payment of debts, including interest, owned by Pakistan to the United
States, operation of Peace Corps programs, the making of Export-
Import Bank loans, operation of programs by the Overseas Private
Investment Corporation, as well as any other indirect aid to that
government. The provision is not intended to affect funds made
available for U.S. contributions to the Indus Basin Project.
Assistance and sales could be resumed after the President reports
to Congress that the "Government of Pakistan is cooperating ;'ally
in allowing the situation in East Pakistan to return to reasonable
stability and that refugees from East Pakistan in Indian have been
allowed, to the extent possible, to return to their homes and to re-
claim their lands and properties."
This section would add a new section 653 to the Act to require that
not later than December 31 of each year the President transmit to
Congress a detailed report on all programs and categories of foreign
assistance (as defined by the section) in terms of volume and cost pro-
vided during the previous fiscal year by the United States to all for-
eign aid recipients, both individually and collectively. In addition, the
report is to include information on the volume and value of arms sales
made to foreign countries and international organizations by U.S.
private industry.
The purpose of this amendment is to bring together in a single re-
port all of the data that is necessary to give Congress and the Ameri-
can public a full and complete overview of the entire U.S. foreign
assistance effort.
During Congress' consideration of the Foreign Assistance Act and
Foreign Military Sales Act legislation, it has become increasingly
evident that the totality of the U.S. foreign aid effort is "unknown."
This is due in large part to the fact that our aid programs involve any
number of Executive Branch agencies and departments, ranging from
the Agency for International Development, to the Department of De-
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fense, to the Central Intelligence Agency. Just as there is no single
department or agency responsible for the entire foreign assistance
program, there is no single Congressional Committee that has legisla-
tive oversight responsibility for this program in its entirety. At a
minimum, however, the Congress should have a complete report pro-
viding details on all of these programs and their cost to the taxpayer.
Without this information it is virtually impossible to render a con-
bidered judgment on either the relative merits of each individual pro-
gram or on the program as a whole.
SECTION 108-LIMITATION ON USE OF FUNDS
This section focuses attention on domestic vs. foreign needs. It calls
upon the President to release by not later than December 31, 1971 all
of the funds that were appropriated for domestic programs but later
impounded during FY 1971. If the President does not release these
funds by the December 31 deadline, then he is prohibited after that
date from obligating or expending any funds appropriated pursuant to
the Foreign Assistance Act or the Foreign Military Sales Act. The
prohibition would continue to apply until the impounded funds were
released and the Comptroller General so certified to the Congress.
The provisions of this section shall not apply to funds being with-
held in accordance with specific legal requirements.
The latest information that the Committee was able to collect on the
impounded funds issue indicates that the total amount of these funds
is about $12 billion. Of this total, more than $10 billion for domestic
programs was still impounded as of May 14, 1971, with the Office of
Management and Budget estimating that perhaps half the amount
would be released by June 30, 1972. In terms of the precise amounts
now impounded, the Committee will rely on the determinations made
by the General Accounting Office.
The objective of this amendment is to give the American public
some indication that the Committee is just as aware of our domestic
needs as it is of the needs of other countries. The provisions of the sec-
tion say to the taxpayers of this country, "You will be assured of
getting the funds appropriated by Congress for domestic programs
and projects before additional foreign aid funds can be obligated for
similar programs and projects in Rio de Janiero, Nairobi or New
Delhi."
In addition to focusing attention on domestic vs. foreign needs in the
context of the whole national priorities debate this section of the bill
also addresses the separation of powers issue and the Constitutional
responsibilities of the Legislative and Executive Branches of our
Government.
If the President is left free to impound funds appropriated by the
Congress, this could result in an even greater unbalance between the
two Branches than has developed in the field of foreign affairs. If the
Congress's power of the purse is infringed of restricted in any way-
such as through the impoundment of appropriated funds-Members
of Congress might as well pack their bags and go home. This is the
only real power the Congress has left and it must be guarded and pro-
tected, and kept whole and intact. The Committee believes that the
requirements of this section are consistent with this goal.
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Section 11 amends the 1953 Act, as amended, authorizing U.S. par-
ticipation in the Interparliamentary Union. It increases the annual
authorization of an appropriation from $53,500 to $102,000. Of this
latter sum, $57,000 is for the annual U.S. contribution toward the
maintenance of the Bureau of the Interparliamentary Union and
$45,000 is for the purpose of defraying the expenses of the American
group of members of Congress who participate. These increases arise
from an increase in the U.S. assessment for its participation in the
Interparliamentary Union, a more active role by the Union, from ex-
panded. U.S. participation in its deliberations, as well as from the re-
evaluation of the Swiss franc, which is the currency unit used to
settle its accounts.
SECTION 110--INTER-AMERICAN FOUNDATION: NEW NAME
Paragraphs (1), (2), and (3) of section 404 amend part IV of Public
Law 91-175, enacted December 30, 1969, by changing the name of the
Inter-American Social Development Institute to that of the Inter-
American Foundation.
This change was recommended by the executive branch.
Representation
Paragraph (4) amends section 401(e) (4) of Public Law 91-175 by
authorizing the Foundation to determine how its expenses for repre-
sentation shall be allowed and paid, and by limiting such expenses to
not more than $10,000 in any fiscal year.
Chief Executive Officer
Subparagraph (1) (1) amends section 401(e) (4) of Public Law
91-175 by changing the designation of the chief executive officer of
the Foundation from that of "Executive Director" to "President."
Experts and Consultants
Subparagraph (1) (2) further amends section 401(1) of Public Law
91-175 to authorize the Foundation to employ experts and consultants
in accordance With the authority contained in 5 U.S.C. 3109. Under
the provisions of that section experts and consultants are limited to
temporary or intermittent employment. Temporary employment is de-
fined as not in excess of 1 year.
SECTION III-ANNUAL AUTHORIZATIONS FOR STATE DEPARTMENT AND
USIA
The purpose of this section is to require annual authorizations for
appropriations for the Department of State and the United States
Information Agency. Existing law now contains a permanent authori-
zation for the activities of both.
A principal objective of the Legislative Reorganization Act of 1946,
as amended, is to ensure more effective oversight and review by Con-
gress of Executive Branch departments and agencies. Section 136 of
the Act states that "... each Standing Committee of the Senate shall
review and study, on a continuing basis, the application, administra-
tion, and execution of those laws, or parts of laws, the subject matter
of which is within the jursidiction of that Committee." This section
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further requires that after January 1, 1973 each Standing Committee
must report biennially to the. Senate on its legislative review activities.
The Committee of Foreign Relations has legislative jurisdiction
over the operations of both the Department of State and the United
States Information Agency. Thus, requiring annual authorization for
both will enable the Committee to carry out its oversight functions
more effectively. It would also make both State and the USIA more
responsive to the Committee and Congress. Much improvement is
needed in this respect. For example, the bill which is the original basis
for this amendment, S. 1894, was forwarded on May 25 to the Depart-
ment of State for comment., The Department, replied on Septem-
ber 29-some six months later, and only after the press carried reports
that the Committee had tentatively adopted the proposal as an amend-
ment to th foreign aid bill. Similarly, the Committee did not receive
Executive Branch comments on the House-passed foreign aid bill
(H.R. 9910) until September 30-even though the House passed the
bill before the August recess. These examples are but the tips of a
vast iceberg evidencing Departmental indifference to Congressional
responsibilities.
The Committee has not had similar difficulties with the Peace Corps
and the Arms Control and Disarmament Agency for which the Com-
mittee considers regular authorization bills. If this degree of over-
sight is maintained with respect to these two relatively minor agencies,
whose combined annual authorizations are less than $100 million, then
similar legislative surveillance should be maintained over the State
Department and USIA, whose current annual budgets total almost
$700 million.
The section also provides that all departments and agencies with
operations abroad furnish, upon request, information concerning their
activities to the Committee on Foreign Relations or the House Com-
mittee on Foreign Affairs. This provision is not intended in any way
to impinge on the primary jurisdiction of any other committee of
the Senate.
SECTION 112-USE OF FOREIGN CURRENCIES
Section 411 amends Section 502(b) of the Mutual Security Act of
1954, as amended, which deals with expenditures of foreign currencies
by Congressional committees. Under present law, Members and em-
ployees of committees are authorized to draw not to exceed the equiva-
lent of $50 per day (exclusive of transportation costs) in foreign cur-
rencies to meet their subsistence expenses in connection with official
travel outside the United States. As a practical matter, in most in-
stances, these currencies have been purchased by the Executive Branch
of the Government with appropriated funds. It is only in those few
countries where local currencies are in excess of the amounts needed
to meet U.S. requirements that dollars are not used to purchase for-
eign currencies. The amendment approved by the Committee would
have the effect of requiring expenditures made in connection with
travel abroad to be financed directly out of appropriated funds, ex-
cept in the so-called "excess" currency countries (i.e., where the supply
of currencies is more than enough to cover U.S. needs).
In such countries the equivalent of not to exceed $100 per day (ex-
clusive of transportation costs) could be made available to each Mem-
S. Rcpt. 92-432 O-3
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ber or employee to meet his subsistence expenses. The amendments also
prohibits the use of excess currencies to pay the expenses or fees. of
witnesses appearing before Congressional committees in the United
States. 'I'bis hitter provision would result in Congressional committees
paying witness fees out of their own funds at rates authorized by the
Senate or the House of Representatives, as the case may be.
TITLE II. -HUMANITARIAN AND MULTILATERAL ASSISTANCE
Subsection ,201- -Authorizations
Subsection 201(a) authorizes the appropriation of $139,000,000 in
fiscal year 1972 for voluntary contributions to various international
organizations and programs.
International organizations and programs
1. Fiscal year 1970 appropriation-------------- -------------- $105,000,000
2. Fiscal year 1.971 appropriation (includes $14,300,000 for
UNRWA) -------------------------------------------- 118, 110, 000
3. Fiscal year 1972 request -----------------------145, 800, 000
4. Committee recommendation: Fiscal year 1972--------------- 139, 000, 000
These contributions will help fund thirteen multilateral assistance
programs, the largest of which is the UN Development Program.
For most of these international programs, the United States con-
tributes between 33 and 40 percent of the total budget. The following
compares U.S. contributions in FY 1971 with the authorization recom-
mended for FY 1972.
VOLUNTARY CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS AND PROGRAMS
fin thousands of dollars]
Fiscal year Fiscal year
1971 1972 rec-
estimated ommendation
Multilateral technical assistance:
U.N. development program -----------
------------------------------
U.N. Children's Fund_______________________ --__
U.N. Population proggram---- - U.N. fund for drugabusecontrol International Atomic Energy Agency-operational program ------------
world Meteorological Organization-voluntary assistance program ________________
U.N./FAO world food program- ______--__
---- U.N. Institute for Training and Research- _-----------
---------------------
World Health Organization-medical research ___________________________._
----
InternationalSecretariatforVoluntaryService----------------------------------
Special contributions far Vietnam__________________________________________
U.N. Relief and Works Agency:
Regular budget---------------------------------------------------------
Arab refugee vocational training________---------------------------------
---
United Nations Force in Cyprus .._______----------------------------
86,268 90,065
13,000 15,00a
17,500 7,500
2,000 2,000
1,550 1,550
1,500 1, 500
1, 500 1, 500
400 400
150 312
70 73
950 -------------
213, 300 13,300
1,000 1,000
6,000 4,800
Total, U.N. and related programs_____________________ $135,188
I Includes $4,000,000 from development loans for population program under title X.
2 Funded from supporting assistance.
Subsection ,201(a) (1) United Nations Development Program
The United Nations Development Program (UNDP), created as a
result of U.S. initiatives, is the world's largest program of multi-
lateral technical assistance. It is also the hub in the UN system for
all technical assistance activities administering over 70% of the
technical assistance funds expended by all agencies in the UN system.
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All countries that are members of the United Nations, the specialized
agencies or the International Atomic Energy Agency are in principle
eligible for assistance, and UNDP projects are currently under way
in approximately 130 countries and territories.
Large-scale projects in agriculture, education, disease eradication,
transportation, resource exploration and other fields comprise the
major part of the UNDP's program. In addition, the UNDP under-
takes smaller projects designed either to train nationals by means of
fellowships or to provide countries with required expertise through
the use of advisers. Although all of these projects in a broad sense
constitute technical assistance, the larger scale projects have been
commonly referred to by the UNDP as "Special Fund" projects.
Both types of projects are ordinarily executed for the UNDP by the
UN or one of the other organizations of the UN system.
Costing an average of slightly more than $2 million each, with
funds provided jointly by the UNDP and recipient countries and
planned for two to five years duration, Special Fund projects may
engage the services of a score of international experts anda substantial
quantity of equipment. Approximately 800 such projects were under
way at the end of 1970. At the first of its two regular sessions in 1971,
the Governing Council approved 129 Special Fund projects expected
to cost a total of $295 million. Of this amount, $131 million will be
provided by the UNDP and $164 million by the recipient governments
in the form of counterpart contributions. The Council's action raised
to 1,363 the total number of Special Fund projects initiated since
1959, with financing to consist of $1.3 billion in UNDP resources and
$1.9 billion in counterpart contributions.
Of the projects approved through January 1971, 527 are surveys
of natural resources and/or pre-investment feasibility studies; 485
involve technical education and training; 312 provide for applied
tesearch; and 39 consist of assistance in economic development
planning. By economic sector, the projects may be broken down as
follows: agriculture, 502; industry, 356; public utilities, 202; education
and science, 111; public administration and other services, 64;
housing and urban development planning, 23; health, 18; social welfare,
7; and multi-sector, 80. 505 of the preinvestment projects have been
or will be carried out in Africa, 335 in Asia and Oceania, 315 in the
Americas, 108 in the Middle East and 93 in Europe; 5 are inter-regional
projects, and 2 involve research with potentially world wide
implications.
The approximately 2,500 smaller scale "technical assistance"
projects financed by the UNDP each year cost an average of only
$2,500 each, may involve only one UN expert or recipient country
fellow, and may be complete in a period of several months. Program
levels approved for 1971 include $57.3 million for country projects
and $12.5 million for inter-regional projects.
The financial resources of the UNDP come from voluntary con-
tributions pledged by governments. As of March 31, 1971, 128
countries had pledged $240.1 million for that calendar year, compared
with $226.1 million pledged by 126 countries in 1970.. In each of those
years, the United States pledged $86.3 million subject to the condition
that its contribution should not exceed 40% of all governmental
contributions, including assessed, and auditied local costs (estimated
at $16.2 million in 1970 and $16.1 million in 1971).
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The U.S. practice of pledging on a matching basis has been a factor
in encouraging others to share the burden of the development effort.
The U.S. contribution has fallen from a high of 40% of all government
contributions to approximately 35.6% in 1970 and 33.7% in 1971.
The UNDP estimates that contributions and local cost assessments
will total $280 million in 1972. The Committee has authorized a U.S.
contribution of $90,065,000 for FY 1972.
Subsection 201 (a) (2)-United Nations Children's Fund
The role of the United Nations Children's Fund (UNICEF) is
essentially that of a catalyst, encouraging and stimulating efforts by
the developing countries on behalf of their children and providing aid
for programs which have a multiplier effect by reinforcing and spurring
other elements in social and economic developments.
The main fields of UNICEF aid are health services, nutrition,
education, vocational training, family and child welfare, multipurpose
services, and emergency aid. UNICEF assistance is currently going to
112 countries and territories. A large part of this assistance takes the
form of equipment and supplies. In recent years, however, other types
of aid have become increasingly important-training stipends, financ-
ing selected teaching staff for specified periods in national and regional
training schemes, and aid for planning and program development.
Training of national personnel now constitutes about one-third of
UNICEF program aid.
The Executive Board of UNICEF at its 1970 meeting approved
commitments for program aid totalling $51.8 million. Of these com-
mitments, 55.2% are for health, 19.8% for education, 11.6% for
nutrition, 4.2% for family and child welfare and the remaining for
other categories.
Cash contributions from 124 governments to UNICEF's general
resources in 1970 amounted to $33.6 million, of which $13 million was
contributed by the United States. In addition, $8.7 million was con-
tributed by governments for specific projects, including $4.2 million
from U.S. disaster relief funds for emergency aid in Nigeria and East
Pakistan. During 1.970 the United States also transferred foodstuffs
to UNICEF valued at $6.4 million for on-going nutrition programs
and emergency relief in Nigeria; these commodities were . available
tinder P.L. 480. Additional income is realized by UNICEF from non-
governmental sources, through greeting card sales and public collec-
tions; U.S. non-governmental sources contributed $6.4 million in 1970.
A contribution of $15 million in cash is authorized for FY 1972.
Subsection 201(a) (3)-United Nations Population Program
Significant steps in the development of an effective UN population
program were taken in 1969 with funds provided by the United
Nations Fund for Population Activities (UNFPA), which was placed
under management of the Administrator of the United Nations
Development Program..
With the initial United States contribution of $500,000 from FY
1968 funds, a field staff of 10 population officers began early in 1969
to help developing countries identify and prepare action projects in
the population field. A further $2.5 million was contributed in FY
1969 to help finance the expansion of population programs of the
UN regional economic commissions in Africa, Latin America, and
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Asia and the Far East; it number of UN population advisory missions
to developing countries; and action projects requested by countries.
The U.S. proportion of the voluntary contributions to the UNFPA
has been declining. Before 1970, the United States contributed over
80% of such funds. For 1970, the U.S. proportion of pledges to the
Fund was just under 50%. In transmitting the 1971 pledge, U.S.
officials informed the Executive Director of the Fund that they will
review this ratio before making any further pledges:
The UNFPA allocated $1.16 million in 1969 and $6.7 million in
1970; for 1971, it estimates that it could usefully allocate $30 million
if sufficient funds are available.
Projects financed to date have included (1) large-scale support
to two national family planning programs, covering the provision
of transport, contraceptive supplies, medicine and equipment, con-
sultants, and assistance to research, training and evaluation; (2)
support for UN evaluation missions to four countries on two continents
and two other missions to plan for demographic training and research
facilities on a third continent; (3) support for the population and
family planning programs of agencies in the UN system, including
UNICEF, WHO, FAO, ILO, and UNESCO; and (4) it grant to the
International Planned Parenthood Federation.
Subsection 201(a)(4)-UN Fund for Drug Abuse Control
The elimination of the illegal traffic in narcotics and other dangerous
drugs and combatting the abuse of such drugs are high priority
objectives of U.S. foreign policy. The Department of State, in co-
operation with the Departments of Health, Education and Welfare
and Justice, as well as other executive agencies, is pursuing that
objective through both multilateral and bilateral channels.
On March 26 of this year, the UN Secretary General sent a letter
to member governments announcing the establishment of a UN Fund
for Drug Abuse Control and inviting contributions from public and
private sources "for the purposes of combatting drug abuse and its
disastrous impact on individuals and nations." This action was a
result of a U.S. initiative which had been endorsed by the UN Com-
mission on Narcotic Drugs ~n October 2, 1970, by the Economic and
Social Council in November, and by the UN General Assembly in
December.
The United States pledged $2 million as an initial response to the
Secretary General's appeal.
A. personal representative of the Secretary General has overall
responsibility for the Fund, including its development and main-
tenance. One of his first duties will be to seek additional contributions
from other countries, a number of which are expected to contribute.
A further U.S. contribution of $2 million in FY 1972 is authorized
by this bill.
Subsection 201 (a) (5) -International Atomic Energy (IAEA)-Opera-
tional Program
The IAEA Operational Program provides technical assistance to
developing countries to advance the peaceful uses of atomic energy.
The United States played a leading role in initiating this program.
The IAEA Operational Program, which is funded primarily by
voluntary contributions from member states, provides fellowships for
training in nuclear science and experts and equipment for technical
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assistance projects, including the use of modern nuclear technology
in hydrology, industrial processes, energy generation, medical diag-
nosis and treatment, and food preservation. During 1970 the pro-
gram financed the assignment of 113 experts and visiting professors
to member states, the award of 368 fellowships, and 18 international
or regional training courses and seminars.
A contribution of $1,550,000 to the Operational Program. is au-
thorized for FY 1972, the same amount as for 1971. As in 1971, the
United States would contribute in U.S. dollars or other currencies a
sum equal to its share of the target ($2.5 million in 1971) at its assessed
rate, subject to the provision that its contribution shall not exceed
40 percent of the total unrestricted cash contributions of all member
states. On this basis, $786,250 would be in cash and the iemainder
$763,750, in kind.
Most industrialized countries have responded positively to the
Agency's request to contribute voluntarily to the Operational Pro-
gram at the same percentage rate as they are assessed for the IAEA
regular budget. Consequently, in 1971, total contributions were
sufficiently high that the 40% limitation in the U.S. pledge was inop-
erative, and the United States in effect contributed at its assessed
rate, 31.45%.
Subsection 201 (a) (6) -World Meteorological Organization (WMO) Vol-
untary Assistance Program
The WMO Voluntary Assistance Program, funded by voluntary con-
tributions, was established by the World Meteorological Organization
Congress in April 1967. At this same Congress, the WMO launched the
World Weather Watch a system which is designed to bring the global
atmosphere under surveillance and provide for the rapid collection and
exchange of weather data. This plan should improve weather fore-
casting for end-users, including agricultural producers and the con-
struction, transportation and fisheries industries.
An appropriation of $1.5 million in FY 1972, is authorized as a
U.S. contribution to the Voluntary Assistance Program. This would
provide a U.S. cash contribution of $150,000 to the Voluntary Assist-
ance Fund for CY 1972, 40% of the total unrestricted cash contribu-
tions of member nations. It would also provide $1,350,000 for
contributions-in-kind to the Equipment and Services Program
These contributions will consist of U.S. equipment, experts and
services, and the training in the United States of persons from less
developed countries in the field of meteorology. This program willbe
administered by the National Oceanic and Atmospheric Administra-
tion, which will be reimbursed from this appropriation for administra-
tive costs estimated at 6% of project costs.
The amount authorized for FY 1972 would permit a U.S. contribu-
tion at the same level as in 1971 and 1970.
Subsection 201 (a) (7)-UN/FAO-World Food Program
The World Food Program (WFP), a joint undertaking by the United
Nations and the Food and Agriculture Organization, was established
experimentally in 1962 and placed on a continuing basis in 1965.
Contributions to WFP are mainly in food but also include cash and
services such as ocean transportation. Donors in the 1969-1970 period
totaled 76 countries.
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Through 1970 the WFP Intergovernmental Committee has ap-
proved 478 development projects in 83 countries involving WFP com-
mitments of more than $1 billion. Of these projects, which have an
average duration of four years, a total of 74, valued at $40 million have
been completed and 404 are in various stages of implementation. In
addition, 122 emergency operations have been undertaken in 67 coun-
tries at a total cost of nearly $100 million. Of these, 92 emergency
operations involving $68.8 million have been completed and 30 opera-
tions valued at $27.3 million are still in operation.
For the current operational period (1971-1972), the United States
pledged up to $125 million, subject to action by Congress. This U.S.
pledge comprises : (a) up to $85 million in commodities, subject to the
condition that the U.S. contribution in commodities does not exceed
50% of the total contributions of all governments in commodities and
cash for the purchase of commodities; (b) shipping services to trans-
port all commodities contributed by the United States, estimated at
$37 million; and (c) up to $3 million in cash towards the administrative
expenses of the Program. Against a $300 million target, total effective
pledges from 60 nations to date amount to $186.9 million, of which
approximately half is the U.S. share. $1.5 million has been contributed
to meet the cash portion of the U.S. pledge from FY 1971 appropria-
tions and a like amount is authorized for FY 1972.
U.S. contributions of commodities and shipping services are pro-
vided under the Food for Peace Act (P.L. 480).
Subsection 201(a)(8)-United Nations Institute for Training and
Research
The UN Institute for Training and Research (UNITAR) seeks to
make the UN system more effective by: (1) applying modern research
techniques to planning and evaluation of. UN activities, (2) clarifying
problems and issues that face the UN, (3) and providing training
for UN personnel and for people from the developing nations in
UN-related activities.
In its training role, UNITAR has organized courses in diplomacy
and in the procedures and techniques of technical assistance. The
United States has felt that the in-house capacity for training UN
staff, particularly at the middle and higher levels, should be strength-
ened and therefore welcomed the decision last November of the
UNITAR Board of Trustees to establish a UN staff college serving
the entire UN system. Present plans are to finance this activity from
the existing training budgets of participating UN agencies.
The UNITAR budget estimated for 1971 is $1,443,000, as com-
pared with last year's revised total of $1,340,000. A United States
contribution of $400,000 is authorized for FY 1972, the same amount
as in recent years, subject to the condition that U.S. cumulative
contributions do not exceed 40%0 of total cumulative contributions
from governments.
Subsection 201 (a) (9) -World Health Organization-i-Vledical Research
The International Agency for Research on Cancer (IARC) was
established in 1965 by a resolution of the World Health Assembly.
There are now eight members: Australia, France, Germany, Italy, the
Netherlands, the United Kingdom, the USSR and the United States.
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U.S. participation is designed to accelerate efforts to control
cancer through expanded international cooperation. The Agency's
work supplements that of countries engaged in national cancer
research; and the international status of the Agency enables it to
collect research data heretofore unavailable. The Director of the U.S.
National Cancer Institute states that the IARC is an invaluable
ancillary to the basic research program of the United States.
In October 1970, IARC's Governing Council voted to alter, effective
for CY 1971 the quota system so as to provide for a base contribution
of $150,000 from each member and additional amounts based on
capacity to pay. The United States and U.S.S.R., the two largest
contributors, are each expected to contribute equal amounts. A U.S.
contribution of $312,000 is authorized for FY 1972.
Subsection 201 (a) (10) International Secretariat _for Volunteer Service
The International Secretariat for Volunteer Service (ISVS), estab-
lished in 1962 and now located in Geneva, encourages the formation
of volunteer service organizations, both for domestic and overseas
service, and assists governments in setting up and operating volunteer
programs.
Activities include the international exchange of information on ad
ministrative, legal, medical, language training and other aspects of
volunteer organizations through publications and work shops; regional
staff training seminars conducted by ISVS regional offices .in Latin
America and Asia; and the maintenance of an international registry
of volunteers wishing to serve abroad.
The ISVS budget for FY 1971 amounted to approximately $220,000.
Financial support is provided by about 20 governments. The U.S.
pledged up to $70,000 subject to the condition that its contribution
not exceed 2800 of total government contributions, and specified that
its contribution be used to finance international clearing house
functions.
ISVS has proposed a budget of $242,600 for FY 1972 which would
provide for increased activities in the development of multi-national
teams as well as cover increased costs due to price and wage rises. A
U.S. contribution of up to $73,000 from FY 1972 funds is authorized,
but limited to 28% of total contributions.
In addition to the U.S. cash contribution, the Peace Corps plans
to continue to detail two staff members to ISVS.
Subsection 201(a) (.11) --United Nations Relief and Works Agency
The United Nations Relief and Works Agency for Palestine Refugees
in the Near East (UNRWA), created in 1949, provides food, housing,
schooling, and health services for Arab refugees of the 1948-49 Arab-
Israel conflict and, on a temporary basis, for some of the refugees of
the 1967 war. United States support for UNRWA meets a clear
humanitarian need.
At the end of 1970 the refugee population registered with UNRWA
numbered approximately 1,436,829 (of whom over 800,000 were
receiving rations from UNRWA), distributed as follows: East Bank
of Jordan, 517,136; Israeli-occupied West Bank of Jordan, 269,996;
Israeli-occupied Gaza strip, 312,922; Lebanon, 176,896; and Syria,
159, 879.
UNRWA is still attempting to cope with the effects of the June
1967 war, when over 300,000 persons fled to the East Bank of the
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Jordan from the West Bank and Gaza and were subsequently denied
return by the Government of Israel. At the request of the UN General
Assembly, UNRWA is helping the Governments of Jordan and other
host countries in the administration of food, housing and health
services to about 200,000 persons displaced by the June war who are
not registered refugees.
The United States contributed $22.2 million to UNRWA's regular
budget for FY 1970 and 1971-$13.3 million in dollars and U.S.-owned
excess currencies and $8.9 million in commodities available under P.L
480. For FY 1972 a contribution at the same level and with the same
division between cash and commodities is proposed. As in previous
years the U.S. contributions will be limited to a maximum of 70% of
total . government contributions. As other governments' support of
UNRWA has increased, the U.S. share has been proportionately re-
duced from 70% to about 55% in 1970.
In addition, the United States made special contributions of $1 mil-
lion each in FY 1970 and 1971 for technical and vocational training of
Arab refugees, as authorized by Congress. These funds are being used to
expand facilities in several vocational training centers and to maintain
other activities designed to improve the skills of Arab refugees which
otherwise might be discontinued for lack of funds. The Committee has
again authorized this special contribution of $1 million for FY 1972,
in addition to the regular contribution of $13.3 million.
Subsection 201 (a) (12)-Technical and Vocational Training of Arab
refugees
This subsection authorizes an appropriation of $1 million for fiscal
year 1972 for an additional contribution to the United Nations Relief
and Works Agency for expansion of technical and vocational training
of Arab refugees. This special authorization was initiated by Congress
in 1969 and $1 million was provided for this purpose in each of the
fiscal years 1970 and 1971.
Subsection 201(a) (13)-United Nations Force in Cyprus
The UN Force in Cyprus (UNFICYP) was established in March
1964 to contribute to the restoration and maintenance of constitutional
government and order in Cyprus, and to a return to normal condi-
tions. The Security Council since 1964 had periodically extended
UNFICYP's mandate. The size of the force requested in 1964 was
7,000 men. As a result of reductions made over the years, the force
now numbers about 3,182 men comprised of the following national
contingents :
Australia--------------------------------------------------------- 50
Austria------------------------------------------------------ ---- 100
Canada-------------------------------------------- ------------- 577
Denmark---------------------------------------------------------- 336
Finalnd---------------------------------------------------------- 288
Ireland----------------------------------------------------------- 428
Sweden------------------------------------------------------------ 325
United Kingdom__ --------------------------------------------------- 1,078
The larger portion of the total costs of the UNFICYP operation
since 1964 have been met from a fund administered by the UN and
financed by voluntary contributions from member states and other
governments. The UN estimates that the costs borne by this fund
since 1964 totalled $131.3 million through June 15, 1971. Of this the
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United States`has thus far pledged $52.1 million for costs through
December 15, 1970. The remainder of the costs are borne by govern-
ments which provide military and police contingents and themselves
bear a substantial share of the financial burden of such contingents.
From the inception of UNFICYP through December 1970 such
contributions-in kind are estimated at $36.1 million, of which the
U.S. furnished airlift services valued at $1.3 million. Taking into
account both categories of contributions, the United States has
pledged or ' furnished about one-third of the cumulative costs to
date.
An authorization of $4.8 million is provided for the U.S. contribu-
tion to UNFICYP (luring FY 1972. This amount would represent
about 40% of the estimated cash costs to the UN for maintenance of
the force.
Subsection 201 (b) (1).-American Schools and Hospitals Abroad
This section of the bill authorizes the appropriation of $15,000,000
for fiscal year 1972 for the purpose of assisting "schools, and libraries
outside the United States, founded or sponsored by United States
citizens and serving as study and demonstration centers for ideas and
practices of the United States." The section applies similarly to
"hospital centers for medical education and research outside the
United States, founded or sponsored by the United States citizens."
In recent years it has become the practice for Congress to specify
each individual project and the amount to be spent on it from funds
authorized._by this section. This procedure has proved to be counter-
productive and led, perhaps inevitably, to a considerable lobbying
effort on behalf of American sponsored schools and hospitals abroad.
As a result, the list of projects has increased significantly and Congress
has not had sufficient opportunity to analyze the merits of each. The
number of projects vying for a ongressional stamp of approval has
increased several fold during the last few years. This year, for ex-
ample, the Agency for International Development proposed a total of
ten projects costing $10.2 million. The House foreign aid bill listed an
additional twenty projects, bringing the total cost to $28.7 million.
Some of these projects were also presented to this Committee. Thirteen
projects in addition to those on the House list, totaling $13.7 million
have been submitted to the Committee on Foreign Relations for its
consideration. These projects are as follows:
1. Beth-Avoth American Geriatric Center---------------------- $1,200,000
2. Beth Rivka Comprehensive School for Girls------------------ 1,500,000
3. Technion, The Israel Institute of Technology----------------- 4,000,000
4. Musa Alami Foundation of Jericho-------------------------- 200, 000
5. Kiriat Noar-A "Boys Town" type school for orphaned boys--- 500, 000
6. University of Pittsburgh-Haifa University Cooperative Study
Program--------------------------------- ------------- 2,000,000
7. Cefardic Vocational College for Girls------------------- 300, 000
8. Tom School ---------------------------------------------- 1,000,000
9. Ch'san Sofer.Chasan Yecheskel Institute--------------------- 350, 000
10. Shaari Zedak Hospital l------------------------------------- 750,000
11. Betsefer Miksoi Tichoni Lemechonaut Rechev U.M----------- 840, 000
12. Hebrew Union College Biblical and Archaeological School in
Jerusalem ----------------------------------------------- 978,800
A~. Shocken Institute for Jewish Research in Jerusalem----------- 1,000,000
Total------------------------------------------------- 14,618,800
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Because of the proliferation of projects, the Committee reached the
conclusion that corrective action must be taken this. year. Most impor-
tantly, the Committee believes that Congress should not put itself in
the position of picking and choosing among proposals for individual
school, hospital, or library projects in foreign countries. This is not
The role of Congress, in this instance, is to render an overall judg-
ment about the value of the entire program based on. testimony and
evidence presented by AID and State Department officials and other
witnesses. It is the responsibility of Executive-Branch officials to weigh
the relative merits and weaknesses of each specific project, subject of
course to overall Congressional review. Accordingly, the Committee
has authorized a lump sum of $15,000,000 for this program but with-
out allocating amounts to individual projects.
In taking this action, the Committee was faced with the practical
problem of the House already having listed individual projects and
recommended specific amounts for each in H.R. 9910. In view of this
situation, the Committee expects that AID and the State Department
will consider the projects submitted to the Committee, as listed above,
on an equal basis to those recommended by the House. In considering
the projects submitted to both the Senate and the House, AID and
State Department officials should weigh each on its merits according to
the established criteria used by AID and the State Department to
evaluate the merits of Section 214 projects and in consultation with the
host government. The Committee is not sure that all of the projects
submitted to it qualify for funding under the Act. The combined Senate
and House list is not intended to exclude other appropriate projects
from consideration and evaluation by Executive Branch officials.
Subsection, 201 (b) (4)-Indus Basin Project
Tjis subsection authorizes the appropriation of $15,000,000 for
fiscal year 1972 for U.S. grant contributions to the World Bank-
administered consortium which is financing the Indus Basin develop-
ment project.
Because of the possibility that funds appropriated for the Indus
Basin could be transferred and consolidated with funds for other as-
sistance programs, the Committee has added language to the bill in
subsection 204(1) to prevent any transfer of these funds, as the
President may otherwise be able to do under Sections 610 (a) and 614 (a)
of the Act.
The amount authorized by the Committee is the same as that re-
quested by the Administration and may be compared to the following:
Indus Basin-Comparative Data (Note.-Authorization is required
only for grants for the Indus Basin project. Loans are already author-
ized under Sec. 302(b) (1) of the Foreign Assistance Act of 1931
as amended.) :
1. Fiscal year 1970 appropriation_______________________________ $7,500,000
2. Fiscal year 1971 appropriation_______________________________ 4,929,000
3. Fiscal year 1972 request ------------------------------------ 15 15,000,000
4. Committee recommendation:
Fiscal year 1972_______________________________________ 15,000,000
The Committee strongly favors this type of development project and
the multilateral auspices under which it is being carried out.
the task of Congress. or is Congress best equipped to initiate such
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The Indus Basin Settlement Agreements of 1960 and 1964 provide
for the establishment of the Indus Basin Development Fund to finance
a construction program which ensures an equitable division of the
waters of the Indus Basin between India and Pakistan and helps pro-
vide arable land for over 50 million people in those countries. The
United States and eight other donors (the World Bank, Australia,
New Zealand, Pakistan, United Kingdom, Canada, Germany and In-
dia) contribute to the fund.
The Indus Basin Settlement succeeded in forestalling imminent
hostilities between India and Pakistan over the Indus waters. Under
the agreements, India received the use of the waters of the three
eastern rivers-the Ravi, Beas and Sutlej-and Pakistan the use of
the waters of the three western rivers-the Indus, Jhelum and Chenab.
The downstream irrigated areas in Pakistan formerly dependent on
water from the three western rivers through a series of barrages (low
dams) and replacement link canals supplemented by the construction
of a high storage dam. on the Jhelum. In addition to replacing water
diverted to India, the agreements provide for a substantial element
of development for Pakistan which has been identified largely with
the Tarbela Dam on the Indus. This structure will impound 11 million
acre feet of water for additional irrigation of the 50 million acre area
and have an initial power capacity of 700 megawatts.
Over 95% of the replacement works of the Indus Basin has been
completed, including the Mangla Dam, 300 miles of link canals and
7 barrages. The Chasma-Jhelum link canal was substantially com-
pleted on November 2, 1970, 5 months ahead of schedule. Commission-
ing is due to commence in May 1971. Completion of the Taunsa-
Panjnad 50-mile link canal is expected by October 1971; and the
Chasma Barrage, by May 1971. The Government of Pakistan, with
the approval of the IBRD, concluded a contract for the main civil
works of the Tarbela Dam in May 1.968. The bulk of the funds applied
to the Indus fund this year and in the future will finance the con-
struction of Tarbala Dam, which is scheduled for completion in 1976.
The Indus Basin Development Fund Agreement provides that con-
tributors make payments to the Indus Fund according to a fixed
apportionment upon semiannual call from the World Bank. Funds
are called on the basis of the anticipated rate of construction and
disbursements.
The total commitment to the Indus Fund, including the carryover
for Tarbela, amounts to $1,541.2 million in foreign exchange and
rupees. The United States has pledged $295 million in grants, $121.2
million in loans, and $235 million equivalent in P.L. 480 Pakistan
rupees. India is contributing $168.8 million in foreign exchange, and
Pakistan is contributing $1.2 million in foreign exchange and $360.5
million equivalent in rupees. In addition, Pakistan is meeting all
rupee requirements for the Tarbela Dam which amount to about $500
million equivalent.
Disbursements through December 1970 included $526.9 million
from the United States, $168.8 million from India,' $395.6 million
from Pakistan and $271 million from other donors.
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Section ,201(b) (S)-Contingency Fund
This section authorizes the appropriation of $30,000,000 for fiscal
year 1972 for the contingency fund.
The Committee believes that the amount authorized is in line with
AID's use of the contingency fund over the past several years and
should be sufficient to meet unforeseen developments or situations
during FY 1972 which are not of sufficient magnitude for the President
to make a special request to Congress for additional funds.
Fiscal year:
1968---------------------------------------------------------------------- $50 $27.5
1970------------------------------------------------------------------ 10 13. 9
1971-- --------------------------------------------------`--------------- 30 27.7
1971 (estimated) ------------------------------------------ 30 29.3
Subsection ,201(C)-Relief for Pakistani Refugees
This provision authorizes $250,000,000, requested by the President,
for use in roviding for the relief of refugees from East Pakistan in
India and for humanitarian relief in East Pakistan. These funds will be
in addition to those available for humanitarian and relief assistance
under Public Law 480.
The Committee is greatly concerned over the tragedy taking place
in East Pakistan. The Agency for International Development esti-
mated that, as of October 14, more than nine and one-half million East
Pakistanis had fled their homes to take refuge in India. And the flow
continues. Famine threatens many millions of Bengalis who remain in
East Pakistan. The United States has a very strong interest in helping
in every way possible to avert war and massive human suffering in
that area.
The Committee has been advised that the United Nations is leading
and coordinating international humanitarian relief efforts in both
India and East Pakistan. The Agency for International Development
estimates that the total costs of providing food, water, clothing, shel-
ter, medicine, and skeletal public services for the refugees in India
will cost about $95 million per one million refugees for the first year.
This totals over $900 million for first-year costs for the existing refugee
load.
According to the latest information available to the Committee,
total refugee aid to India from all sources amounts to about $210
million, of which the United States has contributed $89.2 million. It
is estimated that the costs thus far exceed $350 million, most of which
has been borne by the Indian government. United States grant funds
for refugees in India are contributed as part of the international relief
effort which is being coordinated by the UN High Commissioner for
Refugees (UNHCR). These funds are made available through the
Office of Refugee and Migration Affairs, Department of State. Some
of the grant funds are being allocated directly to the Government of
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India and some to the UN High Commissioner for Refugees (UNHCR)
or directly to other international voluntary agencies, depending upon
priority needs of the refugee situation and capabilities and plans of the
various organizations involved. P.L. 480 food assistance is made avail-
able through A.I.D. channels.
The relief requirements in East Pakistan are difficult to estimate. A
United Nations team has estimated that there will be a foodgrain
shortfall in East. Pakistan of 1.8 million tons. In addition, edible
oils and high protein foods will be needed to supplement grain re-
quirements. According to A.I.D., total U.S. humanitarian relief for
East Pakistan since March 25 comes to $82.3 million in dollars and
food aid, and U.S.-owned local currency. Assistance from other nations
totals $37.5 million.
In East Pakistan the monitoring of the receipt and distribution of
foodstuffs and other relief assistance is being carried out by a special
UN Relief Supervisory Team set up by the Secretary General. Pri-
mary distribution of foodstuffs is being made by the Food Depart-
ment of the Government of East Pakistan under the supervision of
that Team.
In authorizing $250 million for relief activities the Committee ex-
pects that Executive Branch officials will exert every effort to get
other countries, including the Soviet Union and other Communist
nations, to pay a fair share of the costs of this tragedy. The Executive
Branch estimates that countries other than the United States have,
thus far, contributed $159 million in goods and services for the refugee
relief effort. The Committee does not intend that the United States,
in any way, assume primary responsibility for the refugee problem.
This is an international disaster and the responsibility must be shared
by the entire world community under the leadership of the United
Nations.
The Committee adopted the following amendment to stress its con-
cern that government-to-government channels be minimized in the
distribution of relief and to forestall the possible buildup within the
Agency for International Development of a large operating arm to
carry out disaster relief programs:
"Such assistance shall be distributed, to the maximum extent
practicable, under the auspices of and by international institutions
and relief agencies or United States voluntary agencies."
The Committee does not wish the U.S.-Pakistani relief effort to be
used by A.I.D. as a foot in the door to build up an operating disaster
relief. agency, as A.LD.'s normal activities are curtailed by the shift
of our aid to a multilateral basis. The Committee is of the view that
central direction and control over United States efforts to provide
aid in this disaster should be in the Department of State, not A.I.D.
It has, therefore, adopted language which will require that appropria-
tions for relief of Pakistan refugees be consolidated with funds ap-
propriated under the Migration and Refugee Assistance Act of 1962.
The provision also states that the limitation on transfer of foreign
assistance funds in section 2(c) of that act shall not apply to this
transfer. The Committee believes that the international organizations.
and the voluntary agencies provide the most effective organizational
framework for distribution of U.S. relief in disaster situations.
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Printed below are two tables providing information on the United
States relief assistance furnished in both India and East Pakistan:
South Asia Relief Assistance
(Contributions reported as of Oct. 19, 1971)
Refugee Relief in India:
U.S. Government Assistance ------------------------------
$89,
157,
000
(Of which Dollar Assistance was $35,500,000; and Food
Assistance was $53,657,000)
Assistance from Other Sources____________________________
121,
068,
766
(U.S. contributions as 42% of total)
East Pakistan Relief:
U.S. Government Assistance______________________________
92,
300,
000
(Of which Dollar Assistance 1 was $9,000,000; Food As-
sistance,z $69,800,000; and Local Currency Assistance,
$13,500,000)
Assistance from Other Sources____________________________
37,
510,
146
(U.S. contributions as 71% of total)
I Excludes $4.7 million for cyclone rehabilitation projects which is available for current expenditure.
2 Excludes $18.3 million food for cyclone relief authorized earlier but being delivered currently. and also
excludes $38.9 million of previously authorized normal P.L. 480 food which is also being delivered this fiscal
year.
Source: A.I.D.
SOUTH ASIA RELIEF ASSISTANCE (AS OF OCT. 19, 1971)
[In millions of dollarsi
Allocation of international assistance
between India and Pakistan
Total assistance Percent U.S. assistance Percent
from all sources share only share
India------------------------------ 210.2 62 89.2 44
Pakistan --------------------------- 129.8 38 93.3 56
----- -------------------------
Total ------------------------ 340.0 100
182.5 100
United States ----------------------------------------------------------
Other donors----------------------------------------- -------
181.5 53
158.5 47
------
Total ------------------------------------------------------------
----
340.0 100
Subsection 201(d)-Applicability of the Foreign Assistance Act of 1961
This subsection provides that any appropriations made pursuant
to this bill shall be governed by the applicable provisions of the
Foreign Assistance Act of 1961.
Section 202-Suez Canal
Section 202 adds a new section to Title II of the Act which authorizes
an appropriation of the equivalent of $10 million in Egyptian pounds,
owned by and excess to the needs of the United States, for the purpose
of assisting in the reopening of the Suez Canal. In no case will the
United States furnish such assistance until the parties involved-
principally the United Arab ' Republic and Israel-have reached
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agreement on this matter. Another condition for U.S. assistance is
that the agreement stipulate that the canal will be open on equal
terms to the ships of all nations, including Israel, on a nondiscrimina-
tory basis.
The Committee believes this authorization may prove useful if and
when a negotiated settlement is reached in the Middle East. However,
rather than provide an open-ended authorization for the appropriation
of U.S.-owned Egyptian pounds for this purpose, the Committee
believes that the equivalent of $10,000,000 in such funds should prove
sufficient for the foreseeable future. If future developments warrant
increased funding, the Congress can authorize additional funds.
Section 203-International Drug Control Assistance and Related
Restrictions
Subsection 203(a) adds a new title IIA dealing with international
drug control assistance to Chapter 2 of Part I of the Foreign Assistance
Act. Pursuant to its terms, the President is authorized to furnish
assistance to any foreign country in order to encourage and enable
such country to control or eliminate the production, processing
or distribution of drugs (as defined by the Conprehensive Drug Abuse
Prevention and Control Act of 1970) within or across its boundaries.
In addition, the President is authorized to furnish assistance to any
international organization, such as the United Nations Special Fund
for Drug Abuse Control, for the same purpose. Not less than $25,-
000,000 of Foreign Assistance Act funds shall be available in each
fiscal year only to carry out the provisions of the new title.
Subsection (b) adds a new subsection (x) to Section 620 of the
Foreign Assistance Act, relating to prohibitions against furnishing
assistance. It provides that the President shall determine annually,
before furnishing any assistance to a foreign country, whether such
country has undertaken appropriate measures to prevent drugs,
partially or completely processed or produced in or transported through
such country, from unlawfully entering the United States or being
unlawfully supplied to American citizens. If the President determines
that such country has not taken appropriate measures to control the
illegal flow of narcotic drugs into the United States, he shall cease to
furnish all assistance to that country and seek, through the United
Nations or any other international organization, the imposition of
international sanctions against such country. On the other hand, if the
President finds, after his determination to cease to furnish assistance
to a foreign country, that such country has undertaken appropriate
measures to prevent the illicit flow of drugs into the United States, or
finds that the overriding national interest requires that assistance be
furnished to such country, he may continue or resume assistance to the
country, as the case may be.
The new subsection also provides that the President shall utilize
agencies and_ facilities of the United States Government to assist
foreign countries in their efforts to prevent drugs from unlawfully
entering this country or being supplied to our citizens. No law shall be
construed to authorize the President to waive the provisions of this
subsection.
The President would be required-to report to the Congress within
90 days after the annual determination made pursuant to paragraph
(1) of the new subsection 620 (X) of the act. It would also require a
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report on any action taken under paragraph (3). In reporting to the
Congress, the President would be required to provide a detailed assess-
ment of the effort made by each aid-receiving country to curb illicit
drug trafficking, so that Congress and the American people might have
some way of judging the President's actions on continuing or cutting
off aid to a particular aid recipient.
Subsection 204 (1) -Limitation on Use of Transfer and Waiver Authority
Subsection 204(1) amends section 302 (b) (2) of the Foreign Assist-
ance Act, relating to authorization of appropriations for the Indus
Basin. Because of the possibility that funds appropriated for the Indus
Basin could be transferred and consolidated with funds for other as-
sistance programs, the Committee has added language to prevent any
transfer of these funds, as the President may otherwise be able to do
under Sections 610(a) and 614(a) of the Act.
Subsection 204(2)-Egyptian Pounds
Subsection 204(2). authorizes the appropriation of $1 million for
fiscal year 1972 in Egyptian pounds owned by the United States and
determined to be excess to the requirements of the U.S. Government,
for the purpose of providing technical and vocational training and
other assistance to Arab refugees.
Amounts appropriated under this subsection are authorized to re-
main available until expended.
The Committee believes that training and resettlement of refugees
can help to promote a solution of the Arab refugee problem in the
Middle East. The United States owns a substantial amount of Egyp-
tian pounds which are currently excess to the needs of our Government
departments and agencies. Since it appears that some of those pounds
might be utilized to expand vocational training of Arab refugees, the
Committee recommends that the President be given the authority
contained in this subsection.
Subsection 205(a) -Assessments for the Regular Budget of the United
Nations
This subsection urges the President to enter into such negotiations
as may be necessary for the purpose of implementing that portion of
the report of the President's Commission for the observance of the
Twenty-fifth Anniversary of the United Nations (the Lodge Com-
mission) which recommended that the regular assessment paid by the
United States to the United Nations not exceed twenty-five percent
of the total costs assessed against all U.N. members for any one year.
At the present time the United States is paying 31.52 percent of the
regular budget assessments of the U.N.
The pertinent position of the Commission's report follows:
The Commission recommends that the United States
affirm its intention to maintain and increase its total contribu-
tions to the UN, but that, as part of a redistribution of re-
sponsibilities, it will seek over a period of years to reduce its
current contribution of 31.52 percent to the assessed regular
budget of the Organization so that eventually its share will
not exceed 25 percent.
In recommending that the United States seek a reduction
of the percentage of its assessment for the regular budget, the
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Commission wishes to emphasize that it is in no way pro-
posing any diminution of the overall commitment of U.S.
resources to the UN system. Each reduction in the U.S. share
of the regular budget must be clearly marked by at least a
corresponding increase in U.S. contributions to one or more
of the voluntary budgets or funds in the UN system.
Subsection 205(b)-Annual Authorization of Contributions to the
United Nations
This subsection amends the United Nations Participation Act of
1945 to require annual authorization of appropriations for United
States assessments and contributions to the United Nations and re-
lated orgznizations. This requirement will insure that Congress is
provided an opportunity each. year to render a more considered and
informed judgment on the value of our participation in the United
Nations.
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SUPPLEMENTAL VIEWS OF SENATOR FULBRIGHT
Although I voted to report the two interim foreign aid authorization
bills, I believe that the Committee's refusal to give the Senate an
opportunity to vote clearly on the three major components of foreign
aid and its failure to cut the money amounts again endangers the entire
aid program. There is still a long legislative gauntlet to be run.
The Senate's rejection of H.R. 9910 reflected the growing dissatis-
faction by members with one or more components of foreign aid. Some
support bilateral economic and humanitarian aid but oppose military
aid. Many support military aid and oppose economic assistance. Others
support multilateral and humanitarian aid but oppose bilateral aid, as
presently constituted. And so it goes. Foreign aid bills have become a
"grab bag" with something in them for everyone. Members of the
Senate have not been accorded the opportunity to vote on the merits
of each major aid category-bilateral economic aid, military aid, and
multilateral and humanitarian aid.
In order to ensure that each aid category stood, or fell, on its own
merit., I offered three bills in the Committee which separated the
present hodge-podge of programs into three categories and allowed
authorizations at a reduced level during the phaseout period. Three
bills, instead of two, would have provided a sharper delineation of the
purposes and objectives of each aid category, and given guidance on
how the Senate wants the new foreign aid programs to be shaped for
the future. But the Committee decided to combine bilateral economic
aid with humanitarian and multilateral programs. The package ap-
proved by the Committee lumps A.I.D. programs to promote anti-
communist labor unions in Latin America with those providing relief
for Pakistani and Arab refugees. It again prevents the Senate from
working its will in a clearcut way.
The bills I proposed would have authorized a total of $2.1 billion
in all categories, with $1.0 billion for military aid, $620 million for
bilateral economic aid, and $445.9 million for multilateral and humani-
tarian assistance. Including the $250 million for relief of Pakistani
refugees, this would have been $180 million more than Congress
appropriated for FY 1970.
With a $30 billion-plus deficit facing the Federal Government, an
unprecedented balance of payments gap, and the deterioration of our
domestic situation, particularly in the big cities, I think the Com-
mittee should have held the line closer to the 1970 amount. But,
instead, it approved a total aid package which is $444 million above
the 1970 figure and $263 million more than I proposed. Two-thirds
of the increase is on the military side.
I regret both of these actions. In my opinion, they go against the
spirit of the Senate's rejection of the old approach to foreign aid, and
endanger the passage of any foreign aid program this session. The
Senate should not be forced to vote on a warmed-over version of what
it rejected on October 29th. Together, these bills are little more than a
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slightly scaled-down H.R. 9910. Senators are still being asked to take
the good along with the bad. The Committee's action has, I fear created
a situation where it is quite possible that Congress may reject the
entire program, which, in my opinion, would not be in the interest of
our country.
CHANGES IN EXISTING LAw
In compliance with paragraph 4 of rule XXIX of the Standing
Rules of the Senate, changes in existing law made by the bill, as re-
ported, are shown as follows (existing law proposed to be omitted is
enclosed in black brackets, new matter is printed in italic, existing
law in which no change is proposed is shown in roman) :
Chapter 2.-DEVELOPMENT ASSISTANCE
TITLE I-DEVELOPMENT LOAN FUND
SEC. 201. GENERAL AUTHORITY.-
* * * * * * *
(d) Funds made available for this title shall not be loaned or re-
loaned at rates of interest excessive or unreasonable for the borrower
and in no event shall such funds (except funds loaned under section
205 and [funds which prior to the date of enactment of the Foreign
Assistance Act of 1968 were authorized or committed to be loaned
upon terms which do not meet the minimum terms set forth herein) 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 ten-
year period the rate of interest shall not be lower than 2 per centum
per annum, nor higher than the applicable legal rate of interest of the
country in which the loan is made:] funds which prior to the date of
enactment of the Special Foreign Economic and Humanitarian Assistance
Act of 1971 were committed to be loaned upon terms which do not meet the
minimum terms set forth herein) be loaned at a rate. of interest of less than
the rate which the Secretary of the Treasury determines to be equal to the
current available interest rate, as of the last day of the month preceding
the making of such loan, that the United States paid on its outstanding
marketable obligations of comparable maturities.
SEC. 202. AUTHORIZATION.-(a) There is hereby authorized to be
appropriated to the President for the purposes of this title $685,000,000
for the fiscal year 1967, $450,000,000 for the fiscal year 1968,
$350,000,000 for the fiscal year 1969, $350,000,000 for the fiscal year
1970, and $350,000,000 for the fiscal year 1971, which sums shall re-
main available until expended: Provided, [That any unappropriated
portion of the amount authorized to be appropriated for any such
fiscal year may be appropriated in any subsequent fiscal year during
the above period in addition to the amount otherwise authorized to be
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appropriated for such subsequent fiscal year: Provided further,] That
in order to effectuate the purposes and provisions of sections 102, 201,
601, and 602 of this Act, not less than 50 per centum of the funds ap pro-
priated pursuant to this subsection [for each of the fiscal years ending
June 30, 1970, and June 30, 1971,] for the fiscal year ending June 30,
1972, shall be available for loans made to encourage economic develop-
ment through private enterprises: Provided further, That none of the
funds made available under this title shall be used by South Korea in
connection with the construction and operation of commercial fishing
vessels, fish processing, or the maketinq offish products.
[SEC. 205. In order to serve the purposes of this title and the policy
contained in section 619, 10 per centum of the funds made available
for this title shall be available for transfer, on such terms and condi-
tions as the President determines, to the International Development
Association, the International Bank for Reconstruction and Develop-
ment, the International Finance Corporation, or the Asian Develop-
ment Bank for use pursuant to the laws governing United States par-
ticipation in such institutions, if any, and the governing statutes
thereof and without regard to section 201 or any other requirements
of this or any other Act.]
* * * * * * *
SEC. 209. MULTILATERAL AND REGIONAL PROGRAMS.-[(a) MULTI-
LATERAL PROGRAMS.-The Congress recognizes that planning and
administration of development assistance by, or under the sponsorship
of, multilateral lending institutions and other international organiza-
tions may, in some instances, contribute to the efficiency and effective-
ness of that assistance through participation of other donors in the
development effort, improved coordination of policies and programs,
pooling of knowledge, avoidance of duplication of facilities and man-
power, and greater encouragement of self-help performance.] (a) The
Congress recognizes that the planning and administration of development
assistance by, or under the sponsorship of the United Nations, multilateral
lending institutions, and other multilateral organizations contribute to the
efficiency and effectiveness of that assistance through participation of other
donors in the development effort, improved coordination of policies and
programs, pooling of knowledge, avoidance of duplication of facilities
and manpower, and greater encouragement of self-help performance. It is
the sense of Congress that an increasing proportion of United States
assistance to the developing countries should be channeled through multi-
lateral organizations and that the United States Government should under-
take such measures as may be necessary to help increase the competency
and ca acity of such organizations.
(b) REGIONAL PROGRAMS.-] It is further the sense of the Congress
(1) that where problems or opportunities are common to two or more
countries in a region, in such fields as agriculture, education, trans-
portation, communications, power, watershed development, disease
control; establishment of development banks, these countries often can
more effectively resolve such problems and exploit such opportunities
by joining together in regional organizations or working together on
regional programs, (2) that assistance often can be utilized more
efficiently in regional programs than in separate country programs,
and (3) that to the maximum extent practicable consistent with the
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purposes of this Act assistance under this Act should be furnished so as
to encourage less developed countries to cooperate with each other in
regional development programs.
(c) Notwithstanding any other provisions of law, the President shall
reduce the amounts and numbers of loans made by the United States
directly to individual foreign countries with the objective of phasing out
the bilateral loan program by not later than June 30, 1975.
(d) In furtherance of the provisions of subsection (a) of this section,
any funds appropriated under this part I may be transferred by the
President to the International Development Association, the Inter-
national Bank for Reconstruction and Development, the International
Finance Corporation, the Asian Development Bank or other multi-
lateral lending institutions and multilateral organizations in which
the United States participates for the purpose of providing funds to
enable any such institution or organization to make loans to foreign
countries. Any such transfer shall be made
(1) only if the institution or organization agrees that, in making
loans out of funds so transferred, it will emphasize and take into
account those matters emphasized and taken into account by the
President under sections 201(b) and (f), 207, and 208 of this Act;
(2) without regard to any other provision of this title; and
(3) upon such other terms and conditions as the President may
determine.
TITLE II-TECHNICAL COOPERATION AND
DEVELOPMENT GRANTS
SEC. 220A. Suez CANAL.-The President is authorized to furnish
financial assistance, on such terms and conditions as he may determine,
for assisting in the reopening of the Suez Canal after agreement has
been reached by the parties involved, which agreement provides for the
use of the Canal by the ships of all nations, including Israel, on a non-
discriminatory basis. For the purpose of carrying out this section, there
are authorized to be appropriated not to exceed $10,000,000 in Egyptian
pounds now owned by the United, States and determined by the President
to be excess to the normal requirements of departments and agencies of the
United States. Amounts appropriated under this section are authorized
to remain available until expended.
TITLE III-HOUSING GUARANTIES
SEC. 221. WORLDWIDE HOUSING GUARANTIES. In order to facil-
itate and increase the participation of private enterprise in furthering
the development of the economic resources and productive capacities
of less developed friendly countries and areas, and promote the devel-
opment of thrift and credit institutions engaged in programs of mobi-
lizing local savings for financing the construction of self-liquidating
housing projects and related community facilities, the President is
authorized to issue guaranties, on such terms and conditions as he
shall determine, to eligible investors as defined in section 238(c), as-
suring against loss of loan investments for self-liquidating housing
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projects. The total face amount of guaranties issued hereunder, out-
standing at any one time, shall not exceed [$130,000,000] $180,000,-
000. Such guaranties shall be issued under the conditions set forth in
section 222(b) and section 223.
SEC. 223. GENERAL PROYISIONS.-
(i) The authority of section 221 and section 222 shall continue until
[June 30, 1972] June 80, 1978.
TITLE ILIA-INTERNATIONAL DRUG CONTROL
ASSISTANCE
SEC. .225. AUTHORITY.--(a) The President is authorized to furnish
assistance to any foreign country, on such terms and conditions he
determines necessary, in order to encourage and enable that country to
control or eliminate the production, processing, or distribution of drugs
within or across its boundaries.
(b) The President is authorized to furnish assistance to any inter-
national organization, such as the United Nations fund for drug abuse
control, involved in efforts to control or eliminate the production, proc-
essing, or distribution of drugs.
(c) Q f the funds provided to carry out the provisions of this Act, not
less than $25,000,000 shall be available each fiscal year only to carry out
the provisions of this title.
(d) For purposes of this section, "drug" means any matter which is
included within the definition of controlled substance under title II of
the Comprehensive Drug Abuse Prevention and Control Act of 1970.
TITLE IV-OVERSEAS PRIVATE INVESTMENT
CORPORATION
SEC. 238. DEFINITIONS.-As used in this title-
(c) the term "eligible investor" means: (1) United States citizens;
(2) corporations, partnerships, or other associations including non-
profit associations, created under the laws of the United States or any
State or territory thereof and substantially beneficially owned by
United States citizens; and (3) foreign corporations, partnerships,
of other associations wholly owned by one or more such United States
citizens, corporations, partnerships, or other associations: Provided,
however, That the eligibility of such foreign corporation shall be
determined without regard to any shares, in aggregate less than 5
per centum of the total of issued and subscribed share capital, [re-
quired by law to be] held by other than the United States owners:
Provided further, That in the case of any loan investment a final de-
termination of eligibility may be made at the time the insurance or
guaranty is issued; in all other cases, the investor must be eligible at
the time a claim arises as well as the time the insurance or guaranty
is issued; and
* * * * *
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SEC. 239. GENERAL PROVISIONS AND POWERS.-
* * * * * *
(g) Except for the provisions' of this title, no other provision of this or
any other Act shall be construed to prohibit the operation in a particular
country of the programs authorized by this title, if the President de-
termines that the operation of such program in a particular country is
important to the national interest.
SEC. 240. AGRICULTURAL CREDIT AND SELF-HELP COMMUNITY
DEVELOPMENT PROJECTS.-
(h) The authority of this section shall continue until [June 30,
1972] June 30, 1973.
* * * * * * *
TITLE X-PROGRAMS RELATING TO POPULATION
GROWTH
SEC. 292. AUTHORIZATION.-Of the funds provided to carry out the
provisions of this part I [of this Act for the fiscal year 1970, $75,000-
000, and for the fiscal year 1971 $100,000,000] for the fiscal year 1972,
$125,000,000 shall be available only to carry out the purposes of this
title and, notwithstanding any other provision of this Act, funds used
for such purposes may be used on a loan or grant basis.
Chapter 3.-INTERNATIONAL ORGANIZATION AND
PROGRAMS
* * * * * * *
SEC. 302. AUTHORIZATION.-
* * * * * * *
(b)(1) There is authorized to be appropriated to the President for
loans for Indus Basin Development to carry out the purposes of this
section, in addition to funds available under this or any other Act for
such purposes for use beginning in the fiscal year 1969, $51,220,000.
Such amounts are authorized to remain available until expended.
(2) There is authorized to be appropriated to the President for
grants for Indus Basin Development, in addition to any other funds
available for such purposes, for use in the fiscal year 1970, $7,530,000,
and for use in the fiscal year 1971, $7,530,000, which amounts shall re-
main available until expended. The President shall not exercise any spe-
cial authority granted to him under section 610(a) or 614(a) of this Act to
transfer any amount appropriated under this paragraph to, and to con-
solidate such amount with, any funds made available under any other
provision of this Act.
* * * * * * *
(f) There are authorized to be appropriated to the President for each
of the fiscal years 1972 and 1978, in addition to other amounts available
for such purposes, $1,000,000 in Egyptian pounds owned by the United
States ,and determined by the President to be excess to the requirements of
departments and agencies of the United States, for the purpose of providing
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technical and vocational training and other assistance to Arab refugees.
Amounts appropriated under this subsection are authorized to remain
available until expended.
PART III
Chapter 1.-GENERAL PROVISIONS
SEC. 619. Assistance to Newly Independent Countries.-Assistance
under part I of this Act (other than title I of chapter 2 of such part)
to newly independent countries shall, to the maximum extent appro-
priate in the circumstance of each case, be furnished through multi-
lateral organizations or in accordance with multilateral plans, on a fair
and equitable basis with due regard to self-help.
SEC. 620. Prohibitions Against Furnishing Assistance.-
(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 the United States citizen, 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 propert 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 no other provision of this Act
shall be construed to authorize the President to waive the provisions
of this subsection.] and such suspension shall continue until the Presi-
dent is satisfied that such country, government agency, or government sub-
division has (i) discharged 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 re-
quired by international law, or (ii) has provided relief from such taxes,
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exactions, or conditions, as the case may be. No other provision of this
Act shall be construed to authorize the President to waive the provisions of
this subsection.
(v) None of the funds appropriated to carry out the provisions of this
Act shall be made available to any foreign country which the President
determines has failed to support actively the provisions of the 1949 Geneva
Convention Relative to the Treatment of Prisoners of War.
(w) (1) All military, economic, or other assistance, all sales of defense
articles and services (whether for cash or by credit, guaranty, or any
other means), all sales of agricultural commodities (whether for cash,
credit, or by other means), and all licenses with respect to the transporta-
tion of arms, ammunitions, and implements of war (including technical
data relating thereto) to the Government of Pakistan under this or any
other law shall be suspended on the date of enactment of this subsection.
(2) The provisions of this subsection shall cease to apply when the
President reports to the Congress that the Government of Pakistan is
cooperating fully in allowing the situation in East Pakistan to return
to reasonable stability and that refugees from East Pakistan in India
have been allowed, to the extent feasible, to return to their homes and to
reclaim their lands and properties.
(3) Nothing in this subsection shall apply to the provision of food
and other humanitarian assistance which is coordinated, distributed, or
monitored under international auspices.
(x) (1) The President shall determine annually, before furnishing any
military, economic, and other assistance to a foreign c ountry under this
or any other law, whether such country has undertaken appropriate
measures to prevent drugs, partially or completely processed or produced
in or transported through such country, from unlawfully entering the
United States or from being unlawfully supplied to citizens of the United
States. this sub-
sub-
(2) Except as otherwise provided under paragraph (3) of
section, if the President determines that a foreign country has not under-
taken appropriate measures to prevent any such drugs from unlawfully
entering the United States or being unlawfully supplied to United States
citizens, he shall immediately cease to furnish all military, economic, and
other assistance to such country authorized under this or any other law. The,
President is urged also to seek, through the United Nations or any other
international organization, the imposition of international economic
sanctions against such country.
(3) If the President finds that a foreign country referred to under
paragraph (2) of this subsection has undertaken, after his determination,
appropriate measures to prevent such drugs from unlawfully, entering the
United States or being unlawfully supplied to United States citizens or
finds that the overriding national interest requires that military, economic,
or other assistance be furnished to such country, the provisions of such
paragraph shall not apply to that country unless the provisions of such
paragraph would apply further to that country as a result of a further
determination.
(4) The President shall utilize such agencies and facilities of the
United States Government as he may deem appropriate to assist foreign
countries in their efforts to prevent the unlawful entry of drugs into the
United States or from being unlawfully supplied to United States citizens.
(5) No provisions of this or any other law shall be construed to authorize
e P si ent to waive the rovisions of this subsection.
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(6) The President shall, within ninety days after the determinations
made by him pursuant to paragraph (1) of this subsection, report to the
Congress such determinations, together with a full explanation of the
reasons therefor. The President shall also report to the Congress any
action taken pursuant to paragraph (3) of this subsection.
(7) For purposes of this subsection-
(A) "drug" means any matter which is included within the
definition of controlled substance under title II of the Comprehensive
Drug Abuse Prevention and Control Act of 1970; and
(B) "military, economic, and other assistance" meal s any tangible
or intangible item provided by the United States Government (by
means of gift, loan, sale, credit sale, guaranty, or any other means)
under this or any other law to a foreign country, including, but not
limited to, any training, service, or technical advice, any item of
real, personal, or mixed property, any agricultural commodity,
United States dollars, andany currencies owned by the United
States Government of any foreign country.
Chapter 2.-ADMINISTRATIVE PROVISIONS
SEC. 634. REPORTS AND INFORMATION.-[ (a) The President shall,
while funds made available for the purposes of the Act remain avail-
able for obligation, transmit to the Congress after the close of each
fiscal year a report concerning operations (other, than those reported
pursuant to section 240A) in that fiscal year under this Act. Each
such report shall include information on progress under the free-
dom of navigation and nondiscrimination declaration contained in
section 102.]
SEC. 644. DEFINITIONS.-As used in this Act-
"(m) `Value' means, other than in section 653 of this Act-
Chapter 3.-MISCELLANEOUS PROVISIONS
* * * * * * *
SEC. 658. ANNUAL FOREIGN ASSISTANCE REPORT.-(a) In order
that the Congress and the American people may be better and more cur-
rently informed regarding the volume and cost of assistance extended by
the United States Government to foreign countries and international
organizations, and in order that the Congress and the American people
may be better informed regarding the sale of arms to foreign countries
and international organizations by private industry of the United States,
not later than December 31 of each year the President shall transmit to
the Congress an annual report, for the fiscal year ending prior to the
fiscal year in which the report is transmitted, showing-
(1) the aggregate dollar value of all foreign assistance provided by
the United States Government by any means to all foreign countries
and international organizations, and the aggregate dollar value of
such assistance by category provided, by the United States Govern-
ment to each such country and organization, during that fiscal year;
(2) the total amounts of foreign currency paid by each foreign
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country or international organization to the United States Govern-
ment in such fiscal year, what each payment was made for, whether
any portion of such payment was returned by the United States
Government to the country or organization from which the payment
was obtained or whether any such portion was transferred by the
United States Government to another foreign country or international
organization, and, if so returned or transferred, the kind of assist-
ance obtained by that country or organization with those foreign
currencies and the dollar value of such kind of assistance;
(3) the aggregate dollar value of all arms, ammunitions, and other
implements of war, and the aggregate dollar value of each category
of such arms, ammunitions, and implements of war, exported under
any export license, to all foreign countries and international or-
ganizations, and to each such country and organization, during that
fiscal year; and
Q'p) such other matters relating to foreign assistance provided by
the United States Government as the President considers appropriate,
including explanations of the information required under clauses
(1)-(3) of this subsection.
(b) All information contained in any report transmitted under this
section shall be public information. However, in the case of any item of
information to be included in any such report that the President, on an
extraordinary basis, determines is clearly detrimental to the security of the
United States, he shall explain in a supplemental report why publication
of each specific item would be detrimental to the security of the United
States. .A. supplement to any report shall be transmitted to the Congress at
the same time that the report is transmitted.
(c) If the Congress is not in session at the time a report or supplement
is transmitted to the Congress, the Secretary of the Senate and the Clerk of
the House of Representatives shall accept the report or supplement on behalf
of their respective Houses of Congress and present the report or supplement
to the two Houses immediately upon their convening.
(d) For purposes of this section-
(1) "foreign assistance" means any tangible or intangible item
provided by the United States Government under this or any other
law to a foreign country or international organization, including, but
not limited to any training, service, or technical advice, any item of
real, personal, or mixed property, any agricultural commodity, United
States dollars, and any currencies owned by the United States
Government of any foreign country,
(2) "provided by the United States Government" includes, but is
not limited to, foreign assistance provided by means of gift, loan, sale,
credit sale, or guaranty; and
(3) "value" means value at the time of transfer except that in no
case shall any commodity or article off equipment or material be
considered to have a value less than one-third of the amount the
United States Government paid at the time the commodity or article
was acquired by the United States Government. otherwise
SEC. 654. LIMITATION ON USE OF FUNDS.-(a) Except as
provided in this section, none of the funds appropriated to carry out the
provisions of this Act or the Foreign Military Sales Act shall be obligated
or expended until the Comptroller General of theo Ui nited Sand tates hcertif es
to the Congress that all funds previously apprp
impounded during the fiscal year 1971 for highway construction, low-rent
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public housing. Model Cities, water and sewer grants, urban renewal,
regional economic development, arm credit, and mass transportation have
been released for obligation and expenditure.
(b) The provisions of this section shall not apply-
(1) to funds being withheld in accordance with specific requirements
of law; and
(2) to appropriations obligated or expended prior to January 1,
1972.
II. AN ACT TO AUTHORIZE PARTICIPATION BY THE
UNITED STATES IN THE INTERPARLIAMENTARY
UNION (22 U.S.C. 276)
That an appropriation of [$53,550] $102,000 annually is authorized,
[$26,650] $57,000 of which shall be for the annual contributions of
the United States toward the maintenance of the Bureau of the
Interparliamentar Union for the promotion of international
arbitration; and $26,900] $45,000, or so much thereof as may be
necessary, to assist in meeting the expenses of the American group of
the Interparliamentary Union for each fiscal year for which an
appropriation is made, such appropriation to be disbursed on vouchers
to be approved by the president and the executive secretary of the
American group.
III. PART IV, FOREIGN ASSISTANCE ACT OF 1969
(22 U.S.C. 290f)
PART IV-?[INTER-AMERICAN SOCIAL DEVELOPMENT INSTITUTE]
THE INTER-AMERICAN FOUNDATION ACT
SEC. 401. [INTER-AMERICAN SOCIAL DEVELOPMENT INSTITUTE.-(a)
There is created as an agency of the United States of America a body
corporate to be known as the "Inter-American Social Development
Institute" (hereafter in this section referred to as the "Institute").]
INTER-AMERICAN FOUNDATION.-(a) They e is created as an agency of
the United States of America a body corporate to be known as the Inter-
American Foundation (hereafter in this section referred to as the
"Foundation").
(b) The future of freedom, security, and economic development in
the Western Hemisphere rests on the realization that man is the
foundation of all human progress. It is the purpose of this section to
provide support for developmental activities designed to achieve
conditions in the Western Hemisphere under which the dignity and
the worth of each human person will be respected and under which
all men will be afforded the opportunity to develop their potential,
to seek through gainful and productive work the fulfillment of their
aspirations for a better life, and to live in justice and peace. To this end,
it shall be the purpose of the [Institute] Foundation primarily in
cooperation with private, regional, and international organizations,
to-
(1) strengthen the bonds of friendship and understanding
among the peoples of this hemisphere;
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(2) support self-help efforts designed to enlarge the opportu-
nities for individual development;
(3) stimi4ate and assist effective and ever wider participation
of the people in the development process;
(4) encourage the establishment and growth of democratic
institutions, private and governmental, appropriate to the
requirements of the individual soverign nations of this
hemisphere.
In pursuing these purposes, the [Institute] Foundation shall place
primary emphasis on the enlargement of educational opportunities at
all levels, the production of food and the development of agriculture,
and the improvement of environmental conditions relating to health,
maternal and child care, family planning, housing, free trade union
development, and other social and economic needs of the people.
(c) The [Institute] Foundation shall carry out the purposes set
forth in subsection (b) of this section primarily through and with
private organizations, individuals, and international organizations
by undertaking or sponsoring appropriate research and by planning,
initiating, assisting, financing, administering, and executing pro-
grams and projects designed to promote the achievement of such
purposes.
(d) In carrying out its functions under this section, the [Institute]
Foundation shall, to the maximum extent possible, coordinate its
undertakings with the developmental activities in the Western
Hemisphere of the various organs of the Organization of American
States, the United States Government, international organizations,
and other entities engaged in promoting social and economic develop-
ment of Latin America.
(e) The [Institute] Foundation as a corporation-
(1) shall have perpetual succession unless sooner dissolved by
an Act of Congress;
(2) may adopt, alter, and use a corporate seal, which shall be
judicially noticed;
(3) may make and perform contracts and other agreements
with any individual, corporation, or other body of persons
however designated whether within or without the United
States of America, and with any government or governmental
agency, domestic or foreign;
(4) shall determine and prescribe the manner in which its
obligations shall be incurred and its expenses, including expenses
for representation (not to exceed $10,000 in any fiscal year), allowed
and paid;
(5) may, as necessary for the transaction of the business of the
[Institute] Foundation, employ and fix the compensation of not
to exceed one hundred persons at any one time;
(6) may acquire by purchase, devise, bequest, or gift, or other-
wise lease, hold, and improve, such real and personal property as
it finds to be necessary to its purposes, whether within or without
the United States, and in any manner dispose of all such real and
personal property held by it and use as general funds all receipts
arising from the disposition of such property;
(7) shall be entitled to the use of the United States mails on the
same conditions as the executive departments of the Government;
(8) may, with the consent of any board, corporation, commis-
i m t or executive department of the
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Government, including any field service thereof, avail itself of the
use of information, services, facilities, officers, and employees
thereof in carrying out the provisions of this section;
(9) may accept money, funds, property, and services of every
kind by gift, devise, bequest, grant, or otherwise, and make ad-
vances, grants, and loans to any individual, corporation, or other
body of persons, whether within or without the United States of
America, or to any government or governmental agency, domestic
or foreign, when deemed advisable by the [Institute] Foundation
in furtherance of its purposes;
(10) may sue and be sued, complain, and defend, in its corpo-
rate name in any court of competent jurisdiction; and
(11) shall have such other powers as may be necessary and in-
cident to carrying out its powers and duties under this section.
(f) Upon termination of the corporate life of the [Institute] Foun-
dation all of its assets shall be liquidated and, unless otherwise pro-
vided by Congress, shall be transferred to the United States Treasury
as the property of the United States.
(g) The management of the [Institute] Foundation shall be vested
in a board of directors (hereafter in this section referred to as the
"Board") composed of seven members appointed by the President, by
and with the advice and consent of the Senate, one of whom he shall
designate to serve as Chairman of the Board and one of whom he shall
designate to serve as Vice Chairman of the Board. Four members of
the Board shall be appointed from private life. Three members of the
Board shall be appointed from among officers or employees of agencies
of the United States concerned with inter-American affairs. Members
of the Board shall be appointed for terms of six years, except that of
the members first appointed two shall be appointed for terms of two
years and two shall be appointed for terms of four years, as designated
by the President at the time of their appointment. A member of the
Board appointed to fill a vacancy occurring prior to the expiration of
the term for which his predecessor was appointed shall be appointed
only for the remainder of such term; but upon the expiration of his
term of office a member shall continue to serve until his successor is
appointed and shall have qualified. Members of the Board shall be
eligible for reappointment.
(h) Members of the Board shall serve without additional compen-
sation, but shall be reimbursed for actual and necessary expenses not
in excess of $50 per day, and for transportation expenses, while
engaged in their duties on behalf of the corporation.
(i) The Board shall direct the exercise of all the powers of the
[Institute] Foundation.
(j) The Board may prescribe, amend, and repeal bylaws, rules, and
regulations governing the manner in which the business of the [In-
stitute] Foundation may be conducted and in which the powers
granted to it by law may be exercised and enjoyed. A majority of the
Board shall be required as a quorum.
(k) In furtherance and not in limitation of the powers conferred
upon it, the Board may appoint such committees for the carrying out
of the work of the [Institute] Foundation as the Board finds to be
for the best interests of the [Institute] Foundation, each committee
to consist of two or more members of the Board, which committees,
together with officers and agents duly authorized by the Board and to
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the of theoBoard in the manageshall have and ment of the business exercise J
powers affairs
of the [Institute] Foundation.
[(I) The chief executive officer of the Institute shall be an Execu-
tive Director who shall be appointed by the Board of Directors on
such terms as the Board may determine. The Executive Director shall
receive compensation at the rate provided for level IV of the Execu-
tive Schedule under section 5315 of title 5, United States Code.]
(1) (1) The chief executive officer of the Foundation shall be a President
who shall be appointed by the Board of Directors on such terms as the
Board may determine. The President shall receive compensation at the
rate provided for level IV of the Executive Schedule under section 5 315 of
title 5, United States Code. be employed
(,2) Experts and consultants, or organizations thereof, may as authorized by section 3109 of title 5, United States Code.
(m) In order to further the purposes of the [Institute] Foundation
there shall be established a Council to be composed of such number
of individuals as may be selected by the Board from among individuals
knowledgeable concerning developmental activities in the 'Western
Hemisphere. The Board shall, from time to time, consult with the
Council concerning the objectives of the [Institute Foundation.
Members of the Council shall receive no compensation for their serv-
ices but shall be entitled to reimbursement in accordance with section
5703 of title 5, United States Code, for travel and other expenses
incurred by them in the performance of their functions under this
subsection.
(n) The [Institute] Foundation shall be a nonprofit corporation and
shall have no capital stock. No part of its revenue, earnings, or other
income or property shall inure to the benefit of its directors, officers,
and employees and such revenue, earnings, or other income, or prop-
erty shall be used for the carrying out of the corporate purposes set
forth in this section. No director, officer, or employee of the corpora-
tion shall in any manner directly or indirectly participate in the de-
liberation upon or the determination of any question affecting his per-
sonal interests or the interests of any corporation, partnership, or or-
ganization in which he is directly or indirectly interested.
(o) When approved by the [Institute] Foundation, in furtherance
of its purpose, the officers and employees of the [Institute] Founda-
tion may accept and hold offices or positions to which no compensation
is attached with governments or governmental agencies of foreign
countries.
(p) The Secretary of State shall have authority to detail employees
of any agency under his jurisdiction to the [Institute] Foundation
under such circumstances and upon such conditions as he may deter-
mine. Any such employee so detailed shall not lose any privileges,
rights, or seniority as an employee of any such agency by virtue of
such detail.
(q) The [Institute] Foundation shall establish a principal office.
The [Institute] Foundation is authorized to establish agencies, branch
offices, or other offices in any place or places within the United States
or elsewhere in any of which locations the [Institute] Foundation
may carry on all or any of its operations and business.
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(r) The [Institute] Foundation, including its franchise and in-
come, shall be exempt from taxation now or hereafter imposed by the
United States, or any territory or possession thereof, or by any State,
county, municipality, or local taxing authority.
(s) Notwithstanding any other provision of law, not to exceed an
aggregate amount of $50,000,000 of the funds made available for the
fiscal years 1970 and 1971 to carry out part I of the Foreign Assist-
ance Act of 1961 shall be available to carry out the purposes of this
section. Funds made available to carry out the purposes of this sec-
tion under the preceding sentence are authorized to remain available
until expended.
(t) The [Institute] Foundation shall be subject to the provisions
of the Government Corporation Control Act.
IV. AN ACT TO PROVIDE CERTAIN BASIC AUTHORITY
FOR THE DEPARTMENT OF STATE (22 U.S.C. 2680)
* * * * * * *
SEC. 13. * * * [There is hereby authorized to be appropriated such
amounts as may be necessary to provide capital for the fund.]
[SEC. 15. Appropriations to carry out the purposes of this Act are
hereby authorized. When so provided in an appropriation law, an
appropriation made to the Department of State may remain available
until expended.]
SEC. 15. (a) Notwithstanding any other provision of law, no appro-
priation shall be made to the Department of State under any law for any
fiscal year commencing on or after July 1, 1972, unless previously
authorized by legislation hereafter enacted by the Congress.
(b) The Department of State shall keep the Committee on Foreign
Relations of the Senate and the Committee on Foreign Affairs of the
House of Representatives fully and currently informed with respect to
all activities and responsibilities within the jurisdiction of the committee
of all departments, agencies, and independent establishments of the United
States Government conducted outside the United States or its territories or
possessions. Any such department, agency, or independent establishment
shall furnish any information requested within the jurisdiction of the
committee by either such committee relating to any such activity or
responsibility.
2 V. SECTION 701, UNITED STATES INFORMATION AND
EDUCATIONAL EXCHANGE ACT OF 1948 (22 U.S.C. 1476)
GENERAL AUTHORIZATION
[SEC. 701. Appropriations to carry out the purposes of this Act are
hereby authorized.]
PRIOR AUTHORIZATIONS BY CONGRESS
SEC. 701. Notwithstanding any other provision of law, no appropri-
ation shall be made to the Secretary of State, or to any Government agency
authorized to administer the provisions of this Act, under any law for
any fiscal year commencing on or after July 1, 1972, unless previously
authorized by legislation hereafter enacted by the Congress.
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VI. SECTION' 502(b), MUTUAL SECURITY ACT OF 1954
(b) Notwithstanding section 1415 of the Supplemental Appropria-
tion Act, 1953, or any other provision of law, local currencies owned
by the United States, which are in excess of the amounts reserved
under section 612(a) of the Foreign Assistance Act of 1961, [(as
amended), and of the requirements of the United States Government
in payment of its obligations outside the United States, as such require-
ments may be determined from time to time by the President, and
any other local currencies owned by the United States in amounts not
to exceed the equivalent of $50 per day per person exclusive of the
actual cost of transportation] and which are determined by the Secretary
of the Treasury to be excess to the normal requirements of the United
States, shall be made available to appropriate committees of the
Congress engaged in carrying out their duties under section 136
of the Legislative Reorganization Act of 1946, (as amended), and to
the Joint Committee on Atomic Energy and the Joint Economic Com-
mittee and the Select Committees?on Small Business of the Senate and
House of Representatives for their local currency expenses [: Provided,
That each member or employee of any such committee shall make, to
the chairman of such committee in accordance with regulations pre-
scribed by such committee, an itemized report showing the amounts
and dollar equivalent values of each such foreign currency expended
and the amounts of dollar expenditures made from appropriated funds
in connection with travel outside the United States, together with the
purposes of the expenditure, including lodging, meals, transportation,
and other purposes. Within the first sixty days that Congress is in
session in each calendar year, the chairman of each such committee
shall prepare a consolidated report showing the total itemized expendi-
tures during the preceding calendar year of the committee and each
subcommittee thereof, and of each member and employee of such
committee or subcommittee, and shall forward such consolidated re,
port to the Committee on House Administration of the House of Rep-
resentatives (if the committee be a committee of the House of Repre-
sentatives or a joint committee whose funds are disbursed by the Clerk
of the House) or to the Committee on Appropriations of the Senate (if
the committee be a Senate Committee or.a joint committee whose
funds are disbursed by the Secretary of the Senate). Each such report
submitted by each committee shall be published in the Congressional
Record within ten legislative days after receipt by the Committee on
House Administration of the House or the Committee on Appropria-
tions of the Senate.]. Any such excess local currencies shall not be made
available (1) to defray subsistence expenses or fees of witnesses ap-
pearing before any such committee in the United States, or (2) in amounts
greater than the equivalent of $100 a day for each person, exclusive of the
actual cost of transportation.
VII. SECTION 8, UNITED NATIONS PARTICIPATION ACT
OF 1945 (22 U.S.C. 287e)
SEc. 8. (a) There is hereby authorized to be appropriated annually
to the Department of State, out of any money in the Treasury not
otherwise appropriated, such sums as may be necessary [for the pay-
ment by the United States of its share of the expenses of the United
Nations as apportioned by the General assembly in accordance with
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article 17 of the Charter, and] for all necessary salaries and expenses
of the representatives provided for in section 2 hereof, and of their
appropriate staffs, including personal services in the District of Co-
lumbia and elsewhere, without regard to the civil-service laws and the
Classification Act of 1923, as amended; travel expenses without
regard to the Standardized Government Travel Regulations, as
amended, the Travel Expense Act of 1949, and section 10 of the Act
of March 3, 1933, as amended, and, under such rules and regulations
as the Secretary of State may prescribe, travel expenses of families
and transportation of effects of United States representatives and
other personnel in going to and returning from their post of duty;
allowances for living quarters, including heat, fuel, and light, as
authorized by the Act approved June 26, 1930 (5 U.S.C. 118a); cost-
of-living allowances for personnel stationed abroad under such rules
and regulations as the Secretary of State may prescribe; communica-
tions services; stenographic reporting, translating, and other services,
by contract; hire of passenger motor vehicles and other local trans-
portation; rent of offices; printing and binding without regard to sec-
tion 11 of the Act of March 1, 1919 (44 U.S.C. 111); allowances and
expenses as provided in section 6 of the Act of July 30, 1946 (Public
Law 565, Seventy-ninth Congress), and allowances and expenses
equivalent to those provided in section 901(3) of the Foreign Service
Act of 1946 (Public Law 724, Seventy-ninth Congress) ; the lease or
rental (for periods not exceeding ten years) of living quarters for the
use of the representative of the United States to the United Nations
referred to in paragraph (a) of section 2 hereof, the cost of installa-
tion and use of telephones in the same manner as telephone service is
provided for use of the Foreign Service pursuant to the Act of August
23, 1912, as amended (31 U.S.C. 679), and unusual expenses similar to
those authorized by section 22 of the Administrative Expenses Act of
1946, as amended by section 311 of the Overseas Differentials and Al-
lowances Act, incident to the operation and maintenance of such living
quarters; and such other expenses as may be authorized by the Secre-
tary of State; all without regard to section 3709 of the Revised Stat-
utes, as amended (41 U.S.C. 5).
(b) Notwithstanding any other provision of law, no appropriation shall
be made for the payment by the United States of its share of the expenses of
the United Nations, as a portioned by the General Assembly in accordance
with article 17 of the Charter, or for the payment of any amount to any
organization, program, fund, or activity of the United Nations, unless such
payment has been previously authorized by legislation hereafter enacted by
the Congress. Any such authorization shall not be given for a period
exceeding one fiscal year.
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